Abstract
This paper presents the analysis of one of the main objectives of fl ow and debt levels of furniture manufacturing companies in Poland. The analysis includes the average values of the selected fi nancial ratios calculated for small, medium and large furniture manufacturing companies in 2007-2012, comparing them with the results for the entire manufacturing sector. The study results show that furniture manufacturing companies showed a higher ability to pay current liabilities with selected current assets and lower debt levels than industrial companies in general. In addition, the analytical results indicate that there are differences in the liquidity ratios of small, medium and large companies of the furniture industry. These companies also maintain different levels of debt. It should be emphasized that in 2009-2011 there was a negative trend the liquidity decrease and the debt level increase. It mostly applied to companies of small and average level of employment.
Highlights
The study results show that furniture manufacturing companies showed a higher ability to pay current liabilities with selected current assets and lower debt levels than industrial companies in general
The analysis presents a comparative study of average financial liquidity and debt ratios acquired by the furniture industry (Section 31.0 of the Polish Activities Classification – Furniture Manufacturing) in the case of companies with Section C - “Manufacturing”, where the furniture industry is included
The analysis of research results shows that the current liquidity ratio, indicating capabilities of current liabilities with current assets, increased in 2007-2009 in the case of furniture manufacturing companies regardless of the number of employees
Summary
The negative effects of the crisis affected the entire world economy and contributed to the deterioration of the financial condition of most companies (Jelačić et al, 2010). Data from the Ministry of Economy shows that in 2007-2008 the production value of the furniture industry amounted to 26.5 (2007) and 27.5 billion PLN (2008). In 2010 the furniture market was worth 28 billion PLN, a year later - 27 billion PLN This means that economic trends in global markets affected the furniture industry condition and the financial situation of companies operating in this market. This is due to the fact that over 90 % of the domestic furniture production is devoted to exports.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
