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

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.