Short Financial Diagnosis at a Do-It-Yourself Company

Abstract

Simultaneously to the society’s perpetual development, the economic activity acquires a more and more complex character. Besides the quality factor, doubled by the price factor, the time factor becomes more and more important. Thus, the retail activity which also includes, besides rich assortments and good prices, related services, like the transport or mounting ones, becomes more and more soughtafter. A role model retailer in the Do-It-Yourself field, with a constant increase in the last decades, is Dedeman SRL. It has consolidated its position on the market by the marketing strategy pursued, permanently cornering new market niches. The article hereby aims to make a short financial diagnosis for this important company at national level, mainly employing the ratios method, extremely relevant and easy to apply and interpret. To this end, we have selected the structural ratios, the trustworthiness ones, the liquidity and solvency, respectively, and the used resources’ rotation or management ratios. The approach is both conceptual and applicative, with a focus on the practical component. In this respect, we have appealed to a relevant, diversified epistemology, the case study, the dynamic study, and also the data and information analysis being essential.