Publication detail

Assessment of financial health of service sector companies in the Central European region

BARTOŠ, V. VOCHOZKA, M. ŠKOPKOVÁ, K.

Original Title

Assessment of financial health of service sector companies in the Central European region

Type

journal article in Web of Science

Language

English

Original Abstract

The objective was to evaluate the financial development of the service sector affected by anti-pandemic measures against COVID-19, and to propose a strategy for the sector´s further development. To fulfil the objective, the following indicators were used: return on assets (or total capital), return on equity, return on sales, share of sales per employee, cash liquidity, current liquidity and total liquidity. Overall, the service sector in Central Europe can be assessed as being in good economic shape. In terms of profitability indicators, companies in the service sector in Central Europe are above the EU average. All can be summarized quite briefly. In the near future, the Czech Republic must address stabilization of return on sales (which is extremely volatile). Close attention must also be drawn to labour productivity, which is half the European Union average. Finally yet importantly, it is evident that companies use too many fixed assets. Slovakia, Hungary and Poland can be considered stable countries that were not harmed by the COVID-19 pandemic, or were able to quickly eliminate the consequences. They can thus focus on the overall improvement of financial health indicators and sustainable development. Germany, and particularly Austria, can be found at the top of the group. Companies in the service sector are very stable, well above average compared to the EU. However, a certain degree of caution can be observed in relation to them. They can be advised to reduce liquidity of companies, which nowadays works against profitability indicators.

Keywords

service sector;COVID-19;financial indicators;strategy for further development

Authors

BARTOŠ, V.; VOCHOZKA, M.; ŠKOPKOVÁ, K.

Released

30. 12. 2022

ISBN

2345-0282

Periodical

ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES

Year of study

10

Number

2

State

Republic of Lithuania

Pages from

375

Pages to

393

Pages count

19

URL

https://jssidoi.org/jesi/uploads/articles/38/Bartos_Assessment_of_financial_health_of_service_sector_companies_in_the_Central_European_region.pdf

BibTex

@article{BUT182146,
  author="Vojtěch {Bartoš} and Marek {Vochozka} and Kateřina {Škopková}",
  title="Assessment of financial health of service sector companies in the Central European region",
  journal="ENTREPRENEURSHIP AND SUSTAINABILITY ISSUES",
  year="2022",
  volume="10",
  number="2",
  pages="375--393",
  doi="10.9770/jesi.2022.10.2(23)",
  issn="2345-0282",
  url="https://jssidoi.org/jesi/uploads/articles/38/Bartos_Assessment_of_financial_health_of_service_sector_companies_in_the_Central_European_region.pdf"
}