Key Financial Indicators by the Size of the Construction Company - Czech Study

Eva Vitkova,Gabriela Kocourkova

doi:10.2478/ceer-2021-0021

Eva Vitkova, Gabriela Kocourkova

Open Access

https://doi.org/10.2478/ceer-2021-0021

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Abstract

Abstract Statistical data on the values of financial indicators in individual fields in the Czech Republic are provided by the Ministry of Industry and Trade. Updated values are issued quarterly. However, within the statistical samples, there are on average 34 companies focusing on construction. Moreover, no document specifies the size of the companies. Although the scientific literature provides basic financial rules, this research has confirmed that companies of different sizes show different values of financial indicators. For this reason, one of the aims of the research described in the article was to verify the hypothesis that companies of different sizes have different approaches to financial management and the other aims was to focus on correlating data on key financial indicators of individual sizes of companies with statistics provided by the Ministry of Industry and Trade. Basic methods of financial analysis (vertical analysis), selected ratios and basic statistical methods, which include correlation analysis, were used. The analysis was performed on 30 samples of construction companies, which were divided by size into small, medium and large. The outputs of the research will be further used for the follow-up research.

Highlights

Each state publishes statistical data on the key financial indicators of companies within individual sectors
The statistics published by the Ministry of Industry and Trade already deal with individual sectors classified according to NACE
The aim of the article was to analyse the statistical data published by the Ministry of Industry and Trade in the Czech Republic as well as to verify the hypothesis that different sizes of companies have different approaches to financial management. 30 samples were considered within the analysed data, resp. companies that de facto correspond to the average value of samples that complete the input data of the MIT statistical survey

Summary

Introduction

Each state publishes statistical data on the key financial indicators of companies within individual sectors This statistical data can be taken as a trend in the corresponding field. The European Union publishes statistics from 28 countries on construction output [4], which are free of charge, financial statistic indicators are not published there, only the percentage representation of companies by size (micro, small, medium and large). This research focuses only on the construction industry, which is published under the NACE classification sections F 41, 42, 43 (Construction of buildings, Civil engineering, Specialized construction activities). These statistics are not further subdivided by company size. This research question was supported by the publication of the fact that "Small and medium-sized enterprises (SMEs) are often referred to as the backbone of the European economy, providing a potential source for jobs and economic growth" [7]

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