Do mergers enhance financial performance? Empirical evidence from the Czech Republic

Key financial indicators and ratios: How to use them for success in your practice

This study investigated the relationship between National Health Insurance (NHI) patient revenue and profit-private hospital financial performance in Indonesia. As the NHI provider, Badan Penyelenggara Jaminan Sosial (BPJS) Healthcare Security’s influence on hospital revenues has raised concerns about its impact on financial sustainability. This study used financial performance indicators to develop a financial performance index—Return on Assets (ROA), Return on Equity (ROE), Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Margin, Current Ratio, and Net Profit Margin (NPM)—to assess the financial impact of BPJS Healthcare Security revenue. A partial model approach of multiple linear regression was employed using secondary data from seven private-profit hospitals listed on the Indonesian Stock Exchange from 2017 to 2022. The findings indicated a negative correlation between BPJS Healthcare Security patient revenue and the hospital financial performance index. Specifically, higher patient revenue correlated with lower performance across key financial indicators, including ROA, ROE, EBITDA Margin, Current Ratio, and NPM. It was essential for hospitals but not necessarily to improve their financial health performance. Hospitals need to optimize their revenue mix and explore alternative financial strategies to enhance performance.

A precondition for the existence, stability, and competitiveness of enterprises is their performance. In measuring the performance of enterprises, the priority is mainly to monitor and measure their financial performance. The values ​​of financial indicators reflect all the consequences of ongoing processes in the enterprise. Based on the above, the motivation of the research was to identify key performance indicators within the construction industry of Slovakia. The Slovak construction industry makes up a significant part of Slovakia’s GDP, and therefore it is very important to monitor its performance. The selection of key financial performance indicators was carried out using Elastic net and in the second step of selection using Decision tree (DT), Gradient boosted tree (GBT) and AdaBoosted tree (ABT). The results of these methods show very good classification accuracy. The selection of key financial performance indicators includes the Working Capital to Total Assets, Current Ratio and Total Debt to Total Assets, which have been confirmed in several studies as important indicators of the financial performance of construction companies. The identified indicators may be significant for managing the financial performance of these enterprises in practice

Purpose: This study examined the ability of financial and non-financial performance in predicting financial reports publication time frame as moderated by the COVID-19 pandemic. Theoretical framework: Signal theory postulates that management serves a crucial role in providing information to stakeholders regarding the condition of the company (Brigham & Houston, 2001). According to Spence (1973), companies are motivated to provide relevant information to stakeholders. If the performance conditions are good, the company tend to speed up the process of presenting financial statements. Conversely, if performance is poor, there is a tendency to delay the financial reports publication. The long span of time for the publication of financial reports can indicate bad news that the company has so that it has yet to publish the news to the public. Scott (2015) suggests that when managers know there is unfavorable news about the condition of the company in the future, they will avoid publishing this information or at least delay the presentation of financial statements. Method/design/approach: Financial performance was measured by four indicators: profitability, liquidity and solvency. Meanwhile, variable non-financial performance was measured by the index of good corporate governance (GCG) and auditor reputation. The proposed model was tested based on the quantitative data collected from 156 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 and 2020. The multiple regression analysis was performed to analyze and interpret the data. Results and conclusion: Result indicates that solvency, good corporate governance, and auditor reputation were significant predictors of the time span of financial report publication. However, the predictive ability of profitability and liquidity on the publication timeframe was found to be not significant. Furthermore, the results show that the COVID-19 pandemic moderates the ability of profitability and good corporate governance in predicting the publication timeframe. Research implications: Financial and non-financial performance indicator gives different results in predicting the RWPLK of manufacturing companies in Indonesia. ROA and CR are not able to predict RWPLK, but DER, GCG, KAP are able to predict RWPLK. The role of the COVID-19 pandemic was able to moderate the ability of ROA and GCG in predicting the timeframe for publication of financial reports, but was unable to moderate the ability of CR, DER and KAP in predicting RWPLK. Originality/value: The present study provides the first empirical evidence on the moderating role of the COVID-19 pandemic on the predictive ability of financial and non-financial performance for financial statement publication time frame.

The COVID-19 pandemic has significantly impacted financial performance across all economic sectors, including ultra-micro Islamic banking institutions such as BTPN Syariah, which specializes in serving underprivileged productive communities. This study examines the differences in BTPN Syariah’s financial performance before (2017–2019) and during (2020–2022) the COVID-19 pandemic in Indonesia. Utilizing secondary data from monthly financial statements published by BTPN Syariah, this research employs a paired sample t-test analysis using SPSS software to compare six key financial performance indicators: Return on Assets (ROA), Return on Equity (ROE), Capital Adequacy Ratio (CAR), Operating Costs to Operating Income ratio (BOPO), Non-Performing Financing (NPF), and Financing to Deposit Ratio (FDR). The results indicate significant differences in banking financial performance between the pre-pandemic and pandemic periods, with CAR showing notable improvement due to a strategic Initial Public Offering (IPO), while ROA and ROE experienced temporary declines followed by gradual recovery. These findings contribute to understanding the resilience mechanisms of Islamic ultra-micro banking institutions during crisis periods and provide insights for policymakers and practitioners in developing countercyclical strategies for future economic disruptions.

Abstract. This study aims to measure the relationship between the Altman Z-Score, which is used to determine the financial failure of the enterprises, and the decisions on the capital structure. In other words, it has been tried to determine whether the capital structure has any effect on the risk of bankruptcy. In the scope of the research, 112 enterprises that continue their activities uninterruptedly and are traded on the industrial index between 2006 and 2014 have been examined. Panel data analysis has been utilized in order to examine the effect of capital structure on the financial failure and/or performance in the enterprises. Through the use of the Altman Z-Score (ZSCORE) which is an indicator of the risk of bankruptcy in the models formed based on the panel data analysis, a statistically negative and significant correlation has been found between the capital structure of the enterprises and the risk of bankruptcy. The leverage ratio (TBTV), which is considered as a variable that represents the capital structure, and thenon-debt tax shields (BDVK), which represent the control variable, have been used. In the correlation between the control variable and the ZSCORE, it has been found that the BDVK has not any significant effect on the ZSCORE and has not caused any increase in the total variance. The findings of this study indicate that the debt ratio in the enterprises causes an increase in financial failure, and they are also compatible with the validity of the trade-off theory. Keywords. Capital structure, Altman Z Score, Panel Data, Financial Performance, Trade-Off Theory, BIST. JEL. C23, G32, G33.

This article analyzes and evaluates the financial condition of Lululemon Athletica, focusing on aspects such as market volatility, profitability, liquidity, solvency, efficiency, growth potential, and financial leverage. The analysis aims to assist investors, analysts, and stakeholders in understanding Lululemon Athletica's financial performance and its ability to adapt to economic changes. The article emphasizes the importance of financial data and provides an overview of commonly used financial analysis tools and methods. It also includes a cash flow analysis of Lululemon and discusses the company's financial status, including key financial ratios and indicators. Overall, Lululemon's financial status is relatively stable, with minor fluctuations in certain areas. However, the company's return on assets shows high volatility, suggesting a need for improvement in asset utilization efficiency. Investors are advised to consider various financial indicators and tools when analyzing Lululemon Athletica's financial health and market performance.

The study aims to investigate the impact of the profits of Jordanian insurance companies on their financial performance indicators in the light Corona pandemic by comparing the financial performance indicators of insurance companies between the years 2019 (before the COVID-19 pandemic) and 2020 (during the COVID-19 pandemic). The study sample consists of (17) general insurance companies that made profits under the Corona pandemic. The study relied on the descriptive analytical approach by relying on quantitative and numerical data to describe the study sample through annual financial reports issued by the insurance industry to measure financial performance indicators for a time series of two consecutive years (2019–2020). The study found that there is an impact of the profits of insurance companies on the financial performance indicators measured by financial leverage ratios (the ratio of debts to assets), and there is no impact for the profits of insurance companies on the financial performance measured by other ratios for the year (2019) before the COVID-19 pandemic, as for the year (2020). During the COVID-19 pandemic, the study found an impact of the profits of insurance companies on the financial performance measured by (quick liquidity), and there is no impact of the profits of insurance companies on the financial performance measured by other ratios. The study therefore recommends decision-makers to seek to improve the financial performance of the insurance sector by taking this study by risk managers and regulatory authorities in order to understand the internal factors represented by financial planning, internal management and administrative efficiency, as well as external factors represented by the legal and economic environment affecting financial performance. Future studies also recommend conducting a study model on other financial sectors and the industrial and service sectors to find out how corporate profits impact the financial performance of these sectors during the COVID-19 pandemic.KeywordsInsurance company profitsFinancial performanceLiquidity ratiosLeverage ratiosJordanian insurance companies

The aim of this study was to investigate the financial sustainability of retail food SMEs for the 2016–2021 period, in Romania, from the perspective of financial equilibrium and performance. A multivariate analysis was used, including a correlation analysis, a principal component analysis (PCA), and a cluster analysis. The empirical results show a positive link between the financial performance and financial equilibrium indicators. We employed the PCA in order to build a composite financial index using financial equilibrium indicators (ratios of liquidity, solvency, collection, and payment period) and financial performance indicators (Return on Assets and Return on Equity). The results show that financial equilibrium and performance are the two main dimensions which the financial sustainability index (FSI) was constructed on. Taking into account the dimensions of financial sustainability, the analyzed SMEs were clustered in four homogeneous clusters. The research findings clearly demonstrated that the retail food SMEs with a good/acceptable financial sustainability also have a good/acceptable financial balance and performance situation. Furthermore, a significant part of the analyzed SMEs faces difficulties regarding financial sustainability, being characterized by the lowest values of FSI, determined by both an uncertain situation in terms of liquidity, leading to a financial disequilibrium, and a negative financial performance. Therefore, this research emphasizes some specific measures that need to be taken to boost financial sustainability of these businesses in the retail food sector.

Commercial banks in Kenya have faced daunting challenges that touch on various key financial performance indicators and therefore impacting on performance. Credit risk affects the key financial indicators that are likely to impact performance of any lending institution. The main goal of this study was to ascertain the moderating effect of ownership structure on the relationship between credit risk and financial performance of Commercial banks in Kenya. Longitudinal research design was utilized on data from 41 licensed banks in the country. The study relied on secondary panel data and multiple regression was used and analysis was through STATA analytical tool. The study established that bank ownership has a significant effect on the financial performance. The outcome of the study demonstrates that a more diversified ownership structure is helpful in improving bank’s financial performance. Introduction of ownership structure has added knowledge by demonstrating that the link between credit risk and financial performance cannot be studied in isolation.

This study investigates the impact of cloud-based accounting systems (CBAS) on the financial performance of Small and Medium Enterprises (SMEs) in the digital era. As technological innovation increasingly reshapes business operations, SMEs are turning to cloud accounting platforms to enhance their efficiency, transparency, and decision-making processes. This research applies a quantitative approach using a structured questionnaire distributed to 130 SME respondents across various sectors, including services, retail, and manufacturing. The results indicate a significant positive relationship between the use of CBAS and key financial performance indicators, namely profitability, liquidity, and cost efficiency. Regression analysis confirms that cloud adoption contributes to improved financial control and performance, particularly when supported by a high level of digital competency within the organization. Furthermore, the study finds that digital readiness significantly moderates the relationship between CBAS usage and financial performance outcomes. The findings support theoretical models such as the Technology–Organization–Environment (TOE) framework and the Resource-Based View (RBV), emphasizing the role of digital tools as strategic assets. Normatively, this study aligns with global policy directions advocating digital transformation among SMEs as a pathway to enhanced transparency, competitiveness, and inclusion in the formal economy.

The ASEAN (Association of South-East Asian Nations), established in 1967, comprises ten member countries, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand (ASEAN-5), which represent 66% of the region's population. The banking sector, a crucial element in economic growth, has been significantly influenced by the rise of Fintech start-ups, which offer new technologies and business models such as digital payments and peer-to-peer lending. This study examines the impact of Fintech on the financial performance of banks in the ASEAN-5 countries from 2019 to 2022, considering factors such as government regulations, technological advancements, and the COVID-19 pandemic. The research explores how Fintech growth has affected key financial performance indicators, including Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). It highlights the fluctuations in ROE across ASEAN-5 countries and discusses the mixed impacts of Fintech on bank performance, with some studies indicating negative effects due to disruptive innovation and others showing positive impacts through financial inclusion and automation. The study also investigates internal factors like company size and capital ratio, which influence bank performance. Company size, measured by total assets, and the capital ratio, reflecting equity to assets, are analyzed to understand their effects on financial performance. Additionally, external factors such as GDP and inflation are considered as control variables to isolate their impact on bank performance. By evaluating these variables, the research aims to provide insights into how banks in ASEAN-5 can adapt to the evolving financial landscape shaped by Fintech innovations and external economic conditions.

AbstrakTujuan penelitian ini untuk menilai beberapa faktor yang berpotensi dapat mengindikasikan kesulitan keuangan dan mengarah pada kebangkrutan. Penilaian dilihat dari kinerja keuangan pada setahun sebelum covid 19 dan setahun selama pandemi covid-19. Selain rasio keuangan, model Altman Z-Score digunakan untuk memprediksi kebangkrutan perusahaan. Penelitian ini dilakukan pada perusahaan yang bergerak di bidang jasa marketing untuk suku cadang kapal. Kinerja keuangan perusahaan dinilai berdasarkan rasio keuangan. Nilai ROA dan ROE PT KMB berada dalam kondisi tidak baik karena sangat rendah dibandingkan dengan standar industri. Rasio likuiditas yang diproksikan dengan current ratio dan cash ratio memperlihatkan penurunan current ratio, yang berarti perusahaan mengalami masalah likuiditas untuk melunasi utang jangka pendek. Rasio solvabilitas yang diproksikan dengan DAR dan DER menunjukkan bahwa laba ditahan perusahaan semakin mengecil akibat kerugian, sehingga ekuitas perusahaan merosot tajam. Rasio aktivitas yang diproksikan assets turnover dan fixed assets turnover menunjukkan bahwa terdapat penurunan atas perputaran aset dan aset tetap yang juga memberikan sinyal bahwa aktivitas penjualan melemah. Hasil penelitian menunjukkan bahwa kinerja keuangan perusahaan tidak dalam kondisi yang baik berdasarkan analisis rasio keuangan serta model Altman Z-Score.
 Kata kunci: Financial Ratio Analysis, Financial Performance, Bankruptcy Prediction
 Abstract
 The purpose of this study was to assess several factors that could potentially indicate financial difficulties and lead to bankruptcy. The assessment is seen from financial performance in the year before covid 19 and a year during the covid-19 pandemic. In addition to financial ratios, the Altman Z-Score model is used to predict company bankruptcy. This research was conducted on companies engaged in marketing services for ship spare parts. The company's financial performance is assessed based on financial ratios. PT KMB's ROA and ROE values ​​are not in good condition because they are very low compared to industry standards. The liquidity ratio proxied by the current ratio and cash ratio shows a decrease in the current ratio, which means the company is experiencing liquidity problems to pay off short-term debt. The solvency ratio proxied by DAR and DER shows that the company's retained earnings are getting smaller due to losses, so the company's equity has fallen sharply. The activity ratio proxied by assets turnover and fixed asset turnover shows that there is a decrease in asset and fixed asset turnover which also signals that sales activity is weakening. The results showed that the company's financial performance was not in good condition based on the analysis of financial ratios and the Altman Z-Score model.
 Keywords: Analisis Rasio Keuangan, Kinerja Keuangan, Prediksi Kebangkrutan

Background: The retail trade industry has experienced a sharp decline in economic growth during the COVID-19 pandemic. Regulation of social distancing, restrictions on retail shop operating hours, and disruption of online shopping behavior contribute to worsen the financial performance of retail trade companies. </p> <p> Purpose: The purpose of this research is to analyze the prediction of financial distress of retail trade companies. This research chose to use the Altman and Springate Model since both of them are the most accurate and conservative models to predict. </p> <p> Research Methodology: The financial distress analysis technique used is Altman and Springate Model. The calculation of the Altman and Springate Score is based on an equation formula for data in the period before and during the COVID-19 pandemic. The Altman’s Score are grouped in the Safe Zone, Grey Area, and Financial Distress; while the Springate’s Score are grouped in the Safe Zone and Financial Distress categories. </p> <p> Findings: Altman Model Analysis stated that most of the companies experienced a decreased scores, the company’s financial performance during COVID-19 pandemic was predicted financial distress and belong to the Grey Zone category than before COVID-19 pandemic. Springate Model Analysis states that all companies have decreased scores, and the company’s financial performance during COVID-19 pandemic is predicted financial distress than before COVID-19 pandemic. Springate Model revealed a more conservative indicator, but both models stated there were still exist several companies in the Safe Zone category to continue their business. </p> <p> Research limitations: The limitations of this study are only using Altman and Springate Model. The object of this research is the retail trade industry only, then future research may be able to expand the analyzed industry in the new normal conditions. </p> <p> Originality/value: The originality of this research is focused on the retail trade companies as the most affected industry by COVID-19 pandemic. In addition, this research analyzes financial distress based on Altman Z-Score and Springate Model as the most powerful model to predict.

As with all their assets, organizations need management when it comes to their reputation. Having a successful corporate reputation is closely related to how corporations manage their existing reputation. The main components of long-term corporate reputation are categorized as appealing to emotions, product and service quality, vision and leadership, financial performance, workplace environment and social responsibility (Fombrun et al., 2013: 253). Among these components, financial performance is positioned as one of the main factors that come to the fore especially in crisis situations. Financial performance is also an effective factor in building trust in all relationships established with the target audience. Therefore, organizations should reflect their financial performance with a good corporate communication strategy in order to create a solid corporate reputation based on trust. The Covid-19 pandemic, which affected the whole world in 2019, negatively affected many corporations in Turkey economically. In the face of this situation, which can be described as a global crisis, corporations carried out corporate communication activities that support corporate reputation management in order to turn the crisis into an opportunity. It is seen that especially the financial performances of the corporations are highlighted among these activities carried out with the aim of strengthening the positive image of the corporations in the eyes of their stakeholders and the public. Within the scope of this research, the press releases published by five companies operating within the automotive sector in Turkey, among the sectors given in the Sectoral Impact of Covid 19 on the Economy report of Global Times (2020), were examined through the content analysis method in the context of financial performance indicators. The purpose of the research is to reveal how organizations reflect their strategies, which include the elements that reflect their financial performance in their press releases, to the public. As a result of the research, the financial performance indicator that took the most place in all the press releases examined was determined as “competitive advantage”.