Analysis Of Profitability, Solvency, Liquidity And Financial Discipline Of Romanian Enterprises

Performance is a fundamental concept of economic analysis, a permanent concern for practice, and an economic climate conducive to entrepreneurship brings positive effects throughout society: financial balances in the economy are restored, production and services increase and include new activities, employment increases and the standard of living of the population rises. This paper analyses whether the dynamics in Romanian enterprises confirm the empirical observation that between 2014/2016 and 2021 the performance of Romanian enterprises has been increasing. Specifically, the paper finds that enterprises in Romania have increased their capacity to produce profit, the financial structure of the enterprise has improved, in terms of increasing capitalization and reducing debt. Enterprise solvency and liquidity are also increasing, and although financial discipline seems to be improving, there are still segments of the economy/sectors of activity with discipline problems, with many economic agents unable or unwilling to pay their debts because they do not collect their claims or do nothing to receive them.