Comparison of Construction Companies’ Financial Management in the Czech Republic before and after the COVID-19 Pandemic Crisis

Abstract

The article deals with the financial management of construction companies in the Czech Republic during 2014-2021, i.e., an 8-year period. Since the data collection also provided information on the years of the COVID-19 pandemic crisis, the paper focuses on the financial management of construction companies during this period. Financial management means the management of companies’ assets, i.e., fixed and current assets and the management of financial resources that cover these assets. Financial resources are divided into own and external resources. Liquidity is also related to the issue of financial management where current liquidity including all current assets to cover short-term liabilities is taken into account. The paper is divided into two parts: the former analyses the period until the COVID-19 pandemic crisis i.e., 2017-2019, and the latter analyses the period during the years of the COVID-19 pandemic crisis i.e., 2020-2021. The aggregate data for the entire period under study is also recorded. An important outcome of the paper is highlighting the possible differences in the financial management of construction companies before and after the COVID-19 pandemic crisis. The methods used in the research described in the article are closely related to those used in financial analysis, in particular the basic vertical analysis method and the ratio indicator method, where the current ratio is taken into account.