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Evaluation of the financial performance of engineering companies in the Czech Republic and Central Europe

Author

Listed:
  • Josef Bureš

    (Brno University of Technology, Czech Republic)

  • Nikola Sobotková

    (Brno University of Technology, Czech Republic)

  • Vojtěch Bartoš

    (Brno University of Technology, Czech Republic)

Abstract

This article aims to analyse the development of the financial performance of engineering companies and evaluate the situation of the last decade in the Czech Republic and the neighbouring countries. The analysis of the development of the financial performance of engineering companies in the Czech Republic is carried out over the last 10 years and compared through the Winsorized mean with the situation in engineering in the neighbouring countries. The article is based on data collected in secondary research and relevant articles. The results of the selected financial indicators suggest that the engineering sector in the Czech Republic shows the best values only in terms of the indebtedness indicator. Other indicators show a more favourable position of engineering enterprises in Austria and Germany, demonstrating a higher degree of automation and innovation. Within the V4 countries, Hungary is the leading country according to the results of individual indicators. However, all the selected countries show problems in terms of the Liabilities Turnover Ratio, which is followed by an issue with low values in the profitability indicator. From the cited sources, previous articles, and the analysis carried out, engineering companies in the Czech Republic show average results in the selected financial indicators in the monitored period. In terms of financial performance, the engineering sector in Austria and Germany is in the leading position among the selected countries. The engineering sector in the Czech Republic should focus on increasing profitability, which would be facilitated by increasing technological progress and innovation.

Suggested Citation

  • Josef Bureš & Nikola Sobotková & Vojtěch Bartoš, 2024. "Evaluation of the financial performance of engineering companies in the Czech Republic and Central Europe," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 12(2), pages 262-274, December.
    • Handle: RePEc:ssi:jouesi:v:12:y:2024:i:2:p:262-274
    DOI: 10.9770/p3627979668
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    References listed on IDEAS

    as
    1. Jan Váně & František Kalvas & Josef Basl, 2021. "Engineering companies and their readiness for Industry 4.0," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 70(5), pages 1072-1091, April.
    2. Kraus, Sascha & Durst, Susanne & Ferreira, João J. & Veiga, Pedro & Kailer, Norbert & Weinmann, Alexandra, 2022. "Digital transformation in business and management research: An overview of the current status quo," International Journal of Information Management, Elsevier, vol. 63(C).
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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