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Self-Financing Capacity Analysis Of Romanian Companies. Case Study: The Automotive Industry


  • Daniel Cîrciumaru

    (Faculty of Economics and Business Administration,University of Craiova, Craiova, Romania)

  • Raluca Drãcea

    (Faculty of Economics and Business Administration,University of Craiova, Craiova, Romania)

  • Cristian Valeriu Stanciu

    (Faculty of Economics and Business Administration,University of Craiova, Craiova, Romania)


This paper is a study on the self-financing capacity of the Romanian companies. We selected four companies operating in automotive industry, for which self-financing capacity and several relevant financial ratios were calculated. The study covered the period 2007 - 2010, a period that included two years of growth for Romanian economy and two years of downturn. The results were quite surprising. The level and the structure of self-financing capacity are very volatile in time, as they are subject to the influence of factors such as return on sales, financial policy (the level and the cost of bank loans), depreciation policy, provision policy. Another finding relates that the self-financing capacity is generally correlated with the level of financial debts. Instead, surprisingly, its value does not correlate with the gross operating surplus, although the operational activity should have a big contribution on generating monetary financial resources trough the gross operating surplus.

Suggested Citation

  • Daniel Cîrciumaru & Raluca Drãcea & Cristian Valeriu Stanciu, 2011. "Self-Financing Capacity Analysis Of Romanian Companies. Case Study: The Automotive Industry," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(17), pages 24-32, November.
  • Handle: RePEc:aio:rteyej:v:1:y:2011:i:17:p:24-32

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    self-financing capacity; net profit; financial debts; gross operating surplus; economic crisis; automotive industry;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other


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