Abstract
Research background: Indebtedness indicators are used to monitor the structure of corporate financial resources. The company's share of its own and foreign resources affects the financial stability of the company. A high share of own re-sources makes the company stable, and independent. With a low share, on the contrary, the company is unstable, market fluctuations and credit uncertainty can have serious consequences. However, foreign capital is cheaper, and too high indebtedness ratios can jeopardize the existence of enterprises.
 Purpose of the article: In general, the economic recession worsens the capital structure of enterprises, especially their debt management. Thus, the paper aims to apply the set of 13 indebtedness ratios to a sample of 779 Slovak and Czech enterprises from the construction sector to determine key microeconomic determinants that may influence the level of indebtedness.
 Methods: A non-parametric one-way analysis of variance ? the Kruskal-Wallis test ? was used to determine whether the set of indebtedness ratios is the same across countries, districts, and sizes. For analyzing the specific sample pair of stochastic dominance, the pairwise comparison was realized using the Dunn'stest with Bonferonni correction. The Mann-Whitney test was used to compare the differences in the set of indebtedness ratios between two independent groups of enterprises, based on their legal form and country.
 Findings & value added: The level of total indebtedness ratio and the self-financing ratio depends on the region as well as on the size of the enterprise and the legal form. In the case of credit indebtedness and debt-to-cash-flow indebted-ness, their dependence on the size of the enterprise and the legal form is obvious. The importance of the region and the legal form of enterprises, vice versa, affect the level of the financial independence ratio. These outputs are relevant for au-thorities, policy makers, or financial institutions to identify financial constraints that construction enterprises face and, as a result, make a long-term contribution to theory in this field.
Highlights
The successful operation of business entities and their survival in the long term horizon is influenced by corporate performance, which is one of the key factors for business success
Within enterprises in the construction sector, the average value of the ratio was at a level of 73.5% in Slovakia, which means that 1 € of total assets is burdened with 0.735 € of liabilities, compared to 55.6% in the Czech Republic
The non-current indebtedness ratio maps the level of non-current liabilities needed to finance the corporate business activities; the results show that each euro gets 0.222 € of non-current liabilities in Slovak enterprises and 0.126 € in Czech companies
Summary
The successful operation of business entities and their survival in the long term horizon is influenced by corporate performance, which is one of the key factors for business success. Financial analysis deals with the evaluation of the financial situation of a company, sector, or even the whole national economy using specific financial characteristics. It evaluates the financial health of the subject in terms of four basic attributes, which include liquidity, profitability, activity, and indebtedness The purpose of such an analysis is the identification of the financial position of enterprises, their weaknesses and strengths that may contribute to constant improvements and significant progress. The outputs generated by the financial analysis are largely used by internal users, such as managers, shareholders, employees, and trade unions, and by external users, which include future investors, financial institutions — mainly banks, creditors, the state and its bodies, business partners, but even competitors themselves (Pur et al, 2015, pp. 132–149)
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