Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

Robert Štefko, Petra Vašaničová, Sylvia Jenčová and Aneta Pachura
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Petra Vašaničová: Department of Mathematical Methods and Managerial Informatics, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia
Sylvia Jenčová: Department of Finance, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia
Aneta Pachura: Faculty of Management, Czestochowa University of Technology, 42-200 Czestochowa, Poland

Energies, 2021, vol. 14, issue 2, 1-15

Abstract: Industry 4.0 and related automation and digitization have a significant impact on competition between companies. They have to deal with the lack of financial resources to apply digital solutions in their businesses. In Slovakia, Industry 4.0 plays an important role, especially in the mechanical engineering industry (MEI). This paper aims to identify the groups of financial ratios that can be used to measure the financial performance of the companies operating in the Slovak MEI. From the whole MEI, we selected the 236 largest non-financial corporations whose ranking we obtained according to the amount of generated revenues in 2017. Using factor analysis, from eleven traditional financial ratios, we extracted four independent factors that measure liquidity (equity to liabilities ratio, quick ratio, debt ratio, net working capital to assets ratio, current ratio), profitability (return on sales, return on investments), indebtedness (financial leverage, debt to equity ratio), and activity (assets turnover, current assets turnover) of the company. Our analysis is an essential prerequisite for developing a realistic financial plan for companies operating in the MEI, especially when considering investments in new technologies related to Industry 4.0.

Keywords: Industry 4.0; mechanical engineering industry; economic sustainability; factor analysis; Slovakia (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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