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Financial Risk Assessment: Case of „Lietuvos Geležinkeliai“, AB

Author

Listed:
  • Skvarciany Viktorija

    (Vilnius Gediminas Technical University, Vilnius, Lithuania)

  • Germanaitė Laura

    (Vilnius Gediminas Technical University, Vilnius, Lithuania)

Abstract

This research paper focuses on the analysis of the financial risk of Lietuvos geležinkeliai, AB (eng. Lithuanian Railways), which activities are passenger and freight transportation by rail. In order to assess the financial risk of the leading company areas of financial risk were identified and are as follows: liquidity risk, credit risk and market risk. However, due to limited access to statistics only financial report of the organisation were analysed and, hence, just liquidity and credit risk were investigated. Consequently, the limitation of the current research is that only two categories of financial risk were analysed. For the purpose of financial risk analysis, the key indicators of liquidity and credit risk were distinguished from the literature. The results showed that the biggest problem of the company is too small short-term assets and the profitability indicators, which were strongly influenced by net profit (loss).

Suggested Citation

  • Skvarciany Viktorija & Germanaitė Laura, 2019. "Financial Risk Assessment: Case of „Lietuvos Geležinkeliai“, AB," Open Economics, De Gruyter, vol. 2(1), pages 19-29, January.
    • Handle: RePEc:vrs:openec:v:2:y:2019:i:1:p:19-29:n:1
    DOI: 10.1515/openec-2019-0002
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    References listed on IDEAS

    as
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    3. Bartram, Söhnke M. & Brown, Gregory W. & Waller, William, 2015. "How Important Is Financial Risk?," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 50(4), pages 801-824, August.
    4. Jeongsim Kim, 2018. "Bank Competition And Financial Stability: Liquidity Risk Perspective," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 337-362, April.
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    More about this item

    Keywords

    financial risk; liquidity risk; credit risk; Lithuanian Railways; case study;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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