Considerations Regarding the Evolution of the Liquidity and Solvency Indicators of the Most Important Romanian HORECA Companies in the Period 2010-2013

Abstract

The tourism and restaurants (HORECA) sector from Romania had to face a huge number of challenges from 1990 to 2014. Most of these challenges were witnessed by the previously owned state companies which had to reform in order to survive. This process was a very long and difficult one, since most of the previously state-owned companies had difficulties in adapting to the private environment. Thus the number of these companies which are still active on the Romanian Stock Exchange and which constitute interest for the private investors was reduced significantly. Under these circumstances the goal of the current paper was to analyze the financial health of 10 most significant HORECA companies registered on the Bucharest Stock Exchange(BVB) especially when considering the evolution of their liquidity and solvency indicators. The study considered for analysis the financial data presented in their balance sheets and profit and loss accounts which were reported on the Bucharest Stock Exchange website: www.bvb.ro or published in their annual reports. The study concentrated on a set of six liquidity and solvency indicators considered most representatives by both the investors, banks and the business environment.