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Financial consequences linked with investments in current assets: Polish firms case

Financial consequences linked with investments in current assets: Polish firms case. Grzegorz Michalski Wroclaw University of Economics.

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Financial consequences linked with investments in current assets: Polish firms case

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  1. Financial consequences linked with investments in current assets: Polish firms case Grzegorz Michalski WroclawUniversity of Economics

  2. Polish firmsrisksensitivitygrows in 2002-2010 and as a result we shouldexpectgrowninglevels of financialliquidityindicatorslike CURRAT, QUIRAT, CASRAT

  3. Polish firmsrisksensitivitygrows in 2002-2010 and as a result we shouldexpectgrowninglevels of financialliquidityindicatorslike CURRAT, QUIRAT, CASRAT

  4. Polish firmsrisksensitivitygrows in 2002-2010 and as a result we shouldexpectgrowninglevels of financialliquidityindicatorslike CURRAT, QUIRAT, CASRAT

  5. That relation completely works in full operating cycle firms

  6. CASE: • for illustrationwas useddata 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 itssourceis a result. *(data collected from Amadeus database)

  7. Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)

  8. Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)

  9. Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)

  10. 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. Source: own calculation based on 288 Polish beverage producers firms (data collected from Zephyr and Amadeus database)

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