financial consequences linked with investments in current assets: polish firms case
DESCRIPTION
Financial consequences linked with investments in current assets: Polish firms case. Grzegorz Michalski Wroclaw University of Economics. - PowerPoint PPT PresentationTRANSCRIPT
Financial consequences linked with investments in current assets: Polish firms case
20.04.23
Financial consequences linked with investments in
current assets: Polish firms case
Grzegorz Michalski
Wroclaw University of Economics
Financial consequences linked with investments in current assets: Polish firms case
Polish firms risk sensitivity grows in 2002-2010 and as a result we should expect growning levels of financial liquidity indicators like CURRAT, QUIRAT, CASRAT
Financial consequences linked with investments in current assets: Polish firms case
Polish firms risk sensitivity grows in 2002-2010 and as a result we should expect growning levels of financial liquidity indicators like CURRAT, QUIRAT, CASRAT
Financial consequences linked with investments in current assets: Polish firms case
Polish firms risk sensitivity grows in 2002-2010 and as a result we should expect growning levels of financial liquidity indicators like CURRAT, QUIRAT, CASRAT
Financial consequences linked with investments in current assets: Polish firms case
Financial consequences linked with investments in current assets: Polish firms case
That relation completely works in full operating cycle firms
Financial consequences linked with investments in current assets: Polish firms case
CASE: for illustration was used data collected from 288 Polish beverage producers firms*
the model with ROA (t) as dependable and with current ratio (t), liquidity ratio (t-1), collection period in days (t), current ratio (t-1) as its source is a result.
*(data collected from Amadeus database)
7
Financial consequences linked with investments in current assets: Polish firms case
MeanStandard deviation
Numer of observatio
nsCA11 Current assets 2011 5152,278 20348,90 288CA10 Current assets 2010 5628,582 21975,27 288
CSH11Cash and equivalents
2011767,704 4144,92 288
CSH10Cash and equivalents
2010749,649 3860,94 288
WC11 Working capital 2011 2626,574 13523,25 288WC10 Working capital 2010 2221,850 8545,63 288
NCA11Net Current assets
2011-331,512 10543,26 288
NCA10Net Current assets
201050,509 10609,25 288
COPE11 Collection period 2011 87,810 52,89 288COPE10 Collection period 2010 82,052 36,02 288CUR11 Current ratio 2011 61,398 48,69 288CUR10 Current ratio 2010 56,895 49,27 288LIRT11 Liquidity ratio 2011 61,191 48,94 288LIRT10 Liquidity ratio 2010 57,587 49,39 288
WCpE11Working capital per
employee 201191,693 37,58 288
WCpE10Working capital per
employee 201089,560 95,30 288
ROA11 ROA 2011 62,186 48,72 288
Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)
Financial consequences linked with investments in current assets: Polish firms case
Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)
Financial consequences linked with investments in current assets: Polish firms case
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17]
[1] CA11
1,00 0,87 0,55 0,35 0,82 0,54 -0,35 -0,36 -0,12 -0,13 -0,30 -0,24 -0,30 -0,24 0,05 0,04 -0,29
[2] CA10
0,87 1,00 0,42 0,53 0,74 0,70 -0,43 -0,28 -0,10 -0,10 -0,23 -0,28 -0,23 -0,29 0,04 0,14 -0,22
[3] CSH11
0,55 0,42 1,00 0,76 0,29 0,30 0,14 0,15 -0,04 -0,08 -0,19 -0,14 -0,19 -0,15 -0,02 0,04 -0,20
[4] CSH10
0,35 0,53 0,76 1,00 0,17 0,50 0,11 0,33 -0,07 -0,06 -0,10 -0,18 -0,10 -0,18 0,01 0,23 -0,11
[5] WC11
0,82 0,74 0,29 0,17 1,00 0,39 -0,15 -0,36 -0,08 -0,07 -0,23 -0,17 -0,23 -0,18 0,07 0,04 -0,22
[6] WC10
0,54 0,70 0,30 0,50 0,39 1,00 -0,01 0,28 -0,04 -0,05 -0,20 -0,28 -0,20 -0,28 0,07 0,20 -0,20
[7] NCA11
-0,35 -0,43 0,14 0,11 -0,15 -0,01 1,00 0,84 0,05 0,06 0,06 0,06 0,06 0,06 0,04 0,00 0,05
[8] NCA10
-0,36 -0,28 0,15 0,33 -0,36 0,28 0,84 1,00 0,04 0,09 0,06 0,01 0,06 0,01 0,04 0,01 0,05
[9] COPE11
-0,12 -0,10 -0,04 -0,07 -0,08 -0,04 0,05 0,04 1,00 0,38 0,31 0,30 0,31 0,30 0,04 0,10 0,28
[10] COPE10
-0,13 -0,10 -0,08 -0,06 -0,07 -0,05 0,06 0,09 0,38 1,00 0,55 0,58 0,55 0,58 0,20 0,11 0,53
[11] CUR11
-0,30 -0,23 -0,19 -0,10 -0,23 -0,20 0,06 0,06 0,31 0,55 1,00 0,81 1,00 0,82 0,31 0,21 0,98
[12] CUR10
-0,24 -0,28 -0,14 -0,18 -0,17 -0,28 0,06 0,01 0,30 0,58 0,81 1,00 0,81 0,98 0,27 0,13 0,81
[13] LIRT11
-0,30 -0,23 -0,19 -0,10 -0,23 -0,20 0,06 0,06 0,31 0,55 1,00 0,81 1,00 0,82 0,30 0,21 0,98
[14] LIRT10
-0,24 -0,29 -0,15 -0,18 -0,18 -0,28 0,06 0,01 0,30 0,58 0,82 0,98 0,82 1,00 0,25 0,14 0,82
[15] WCpE1
10,05 0,04 -0,02 0,01 0,07 0,07 0,04 0,04 0,04 0,20 0,31 0,27 0,30 0,25 1,00 0,33 0,30
[16] WCpE1
00,04 0,14 0,04 0,23 0,04 0,20 0,00 0,01 0,10 0,11 0,21 0,13 0,21 0,14 0,33 1,00 0,21
[17] ROA11
-0,29 -0,22 -0,20 -0,11 -0,22 -0,20 0,05 0,05 0,28 0,53 0,98 0,81 0,98 0,82 0,30 0,21 1,00Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)
Financial consequences linked with investments in current assets: Polish firms case
Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)
Beta
std err beta B
std err b t(283) P
3,131447
1,196985
2,616110,00937
1CUR11
current ratio 20110,94159
30,020821
0,942084
0,020832
45,22280
0,000000
LIRT10Liquidity ratio 2010
0,138513
0,0571280,13662
30,05634
82,42462
0,015950
COPE11 Collection period
2011
-0,02344
60,012372
-0,02159
6
0,011396
-1,895030,05910
8
CUR10
current ratio 2010
-0,08458
00,055974
-0,08363
9
0,055351
-1,511070,13188
7
Using 2010-2011 data for 288 Polish firms producing beverages, we find that among liquidity strategy indicators, ROA using P/L before tax % 2011 depends on current ratio 2011, liquidity ratio 2010, collection period 2011 and current ratio 2010. R= 0,98033871; R^2= 0,96106399; Corrected R^2= 0,96051366; F(4,283)= 1746; p<0,0000 ; Std. error of estimation: 9,6812.