Scholarly record

DEVELOPMENT OF FINANCIAL INDICATORS OF CONSTRUCTION COMPANIES IN THE CZECH REPUBLIC WITHIN THE CRISIS

E. Vitkova, V. Hromadka

Abstract

The main purpose of the paper is to analyze the economic development of construction companies in the monitored period during the crises. The economic development is performed with the financial indicators, which express the performance and the financial stability of the construction company. Financial indicators are represented mainly by the Return on Equity (ROE) and indebtedness of the company. The methodology is based on the collection of information from accounting statements (the balance sheet, the profit loss account and the cash-flow statement) of selected Czech construction companies, on their analysis and then synthesis using mathematical methods. Methodology used within the paper follows current principles of the financial analysis, which will be in the paper adapted to special area of construction sector. The paper elaboration is based on the detailed present state analysis including the appropriate journal and the conference papers investigation. The expected result of the paper consists in the determination of the development of the selected financial indicators in the Czech construction sector within the economic crisis and testing of the reliability of results. The results are supported with the case study including above mentioned analysis of economic data from the representative sample of selected important Czech construction companies.

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