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Financial Risks – A Case Study For Automotive Industry

Author

Listed:
  • HERCIU Mihaela

    (Lucian Blaga University of Sibiu, Romania)

  • OGREAN Claudia

    (Lucian Blaga University of Sibiu, Romania)

Abstract

In general, financial risks – from operational risk to bankruptcy risk, are important distress for companies from every sector or industry. In this paper we try to measure the financial risk for the most important eight companies that activate in automotive industry. We propose a model in order to evaluate financial risk, by using discriminate analysis, which integrate five of the most important financial indicators: current ratio, return on investment, debt to equity, total assets turnover, working capital to total assets. Based on these results the rank will be very different beside the Global Fortune 500 rank that evaluates company only by the level of revenue.

Suggested Citation

  • HERCIU Mihaela & OGREAN Claudia, 2013. "Financial Risks – A Case Study For Automotive Industry," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 8(3), pages 50-55, Decembre.
  • Handle: RePEc:blg:journl:v:8:y:2013:i:3:p:50-55
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