Abstract
In contemporary business conditions, advanced market economies are characterized by the increasing contribution of the SMEs sector to the economic development. Having that in mind, a large number of papers have been aimed at analyzing business doing in this sector in the last couple of years. In this way, the focus has been shifted from large business entities and their importance to the economic growth to the SMEs sector. In this regard, the aim of this paper is to examine the financial situation, the place and the role of large companies in the overall economy of the Republic of Serbia, where, having in mind the fact that it is a transition economy, large enterprises, both private and public, significantly contribute to the growth of the economic activity and employment. Before all, the degree of the liquidity, efficiency, indebtedness and profitability of these companies in the period 2014-2017 was determined by using the ratio analysis. After that, on the basis of the selected ratios, a comparative financial performance analysis of large business entities in relation to those small, medium-sized and microwas carried out by applying the Entropy and the PROMETHEE II methods. The obtained results pointed out that large business entities had a favorable business economy in relation to the other groups of business entities by size, and their performances had improved to a certain extent in the observed period.
Highlights
In contemporary business conditions, advanced market economies are characterized by the increasing contribution of the SMEs sector to the economic development
In the last few decades, a large number of authors have emphasized the fact that the development of the SMEs sector has a crucial role for the development of any national economy, especially so in transition economies, such as the Serbian economy is
The fact that a large amount of funds from the state budget goes to their artificial maintenance, instead of having these funds directed towards the SMEs sector, which would lead to a faster revival of the economic activity, is emphasized (Aničić et al, 2017; Anđelković, 2017; Paunović, 2017)
Summary
Financial analysis is a very important segment of financial management which enables the assessment of the financial status of a company and the making of quality strategic decisions. The technics of financial analysis have been significantly improved in order to identify a company’s limitations and propose the measures for overcoming them, with the aim of avoiding their effects in the future (Filipović & Marjanić, 2016). The elements of financial analysis used the most are: 1. Profit and Loss Account analysis, and 3.
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