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Title
LIQUIDITY OF LARGE COMPANIES IN THE REPUBLIC OF SERBIA
Keywords
The purpose of this paper is to investigate the impact of liquidity on large companies (LC). Liquidity ratios are indicative of the company's ability to pay its due debts and therefore are a good indicator of its current financial performance. The sample used in research consists of financial statements of 794 companies prepared for the period 2007-2013. During the observed period; the share of current assets in the company's total assets recorded a decline which means that fixed assets have a faster growth rate than current assets. The results obtained indicate that managers minimize the value of supplies within the structure of current assets. Calculated values of liquidity ratio are not compliant with applicable theory which leads us to conclusion that the companies classified as large companies have poor and insufficient coverage of short-term liabilities with current assets. However; ratio shows the positive trend and the first signs of recovery of large companies in regard to liquidity. Analysis of the companies per industry shows that not all companies were equally affected by the economic crisis. Entertainment industry and craft industry are the most liquid one while the construction industry is the least liquid.
Author(s)
Editor(s)
Subject(s)
Issue Date
Sep 30 2015
Publication Type
Journal Article
DOI and Other Identifiers
10.22004/ag.econ.212946
Ekonomika Vol 61 Issue 3 pp 173-183 2015 (Other)
Ekonomika Vol 61 Issue 3 pp 173-183 2015 (Other)
Record Identifier
https://ageconsearch.umn.edu/record/212946
PURL Identifier
http://purl.umn.edu/212946
Published in
Ekonomika, Journal for Economic Theory and Practice and Social Issues
Volume
61
Issue
3
Page Range
173 - 183
Total Pages
12
JEL Codes
G32
G33
M40
M41
G33
M40
M41