IDEAS home Printed from https://ideas.repec.org/a/aio/rteyej/v1y2011i17p24-32.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

Abstract

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
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/RTE/017-04.pdf
    Download Restriction: no

    More about this item

    Keywords

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:rteyej:v:1:y:2011:i:17:p:24-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ionascu Costel). General contact details of provider: http://edirc.repec.org/data/fecraro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.