Financial Liquidity and Profitability Management in Practice of Polish Business

Katarzyna Goldmann ()
Additional contact information
Katarzyna Goldmann: Nicolaus Copernicus University

A chapter in Financial Environment and Business Development, 2017, pp 103-112 from Springer

Abstract: Abstract From the point of view of companies’ survival strategies, in the short term, financial liquidity plays a more important role than profitability does. In the case when the company is not profitable in the short term but is characterized by good financial liquidity, it has the potential for further development and for improving its performance. However, in a long-term perspective, profitability is more important because its lack in the long term will result in lacking financial liquidity. Therefore, an important element of company management is making a systematic analysis of financial liquidity and profitability, both on the basis of financial statements and on data derived from its accounts. The objective of the article is to present Polish companies’ approach to managing financial liquidity and profitability. The article presents the results of a survey made on the issue. Based on the survey, the extent of the use in making management decisions of the following was determined: liquidity ratios, working capital and the demand for working capital, analysis of the cash flow statement, and indicators of profitability. The researched entities indicated the extent of usefulness of managing receivables, liabilities, inventory, and cash in financial liquidity and profitability management.

Keywords: Financial liquidity management; Financial liquidity; Financial liquidity analysis; Profitability management; Profitability; Profitability analysis (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-319-39919-5_9

Ordering information: This item can be ordered from
http://www.springer.com/9783319399195

DOI: 10.1007/978-3-319-39919-5_9

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().