An Evaluation of Financial Health in the Electrical Engineering Industry
Robert Stefko, Sylvia Jencova, Petra Vasanicova, Eva Litavcova
competitiveness, bankruptcy model, creditworthy model, financial analysis, Slovak industry
One of the characteristics of business competitiveness is business performance. Managerial decision
making is one of the main factors that can affect the competitiveness of a company.
Financial and economic analysis is an inseparable part of financial management in the practice
of business entities. The aim of this contribution is to present several models of forecasting the
financial situation of companies. By implementing the Taffler model, Springate model, and the
Aspect Global Rating, we assess the financial health of a set of non-financial corporations that,
with their net turnover, represents almost the entire electrical engineering industry in Slovakia.
As Slovakia has a poorly developed capital market and a numerous private companies do not
have publicly traded securities, in this paper we use models based on information from financial
statements, an approach which is preferable to the use of market-oriented models. Financial
data of selected non-financial corporations needed for the financial analysis were obtained from
the Register of Financial Statements of the Slovak Republic, with data for the entire industry
obtained from the CRIBIS database and results highlighting the financial health of individual
electrical engineering companies. Relevant information should be beneficial especially for suppliers
in order to avoid disruptions in their own production as well as for stakeholders, managers
and auditors. Among other things, it is possible to monitor which companies have the strongest
financial health and which are losing their competitiveness, thus are threated. A creditworthy
model confirmed that the sector appears to be financially healthy.
An Evaluation of Financial Health in the Electrical Engineering Industry [PDF file] [Filesize: 708.48 KB]
Stefko, R., Jencova, S., Vsanicova, P., & Litavcova, E. (2019). An Evaluation of Financial Health in
the Electrical Engineering Industry. Journal of Competitiveness, 11(4), 144–160. https://doi.org/10.7441/joc.2019.04.10