Financial performance analysis and indicator-based improvement strategies in a selected company

Abstract

PURPOSE: The main objective of the contribution is to carry out a financial analysis of performance in a selected company and evaluate the results obtained, then propose possible solutions that would help the company to improve in measuring performance indicators.

DESIGN/METHODOLOGY/APPROACH: To get closer to the selected company, an analysis of profits and sales over several years, i.e., their development, has been developed. Specific measurement proposals have also been developed based on various indicators, according to which it is possible to summarize the given knowledge and transfer it to a graphic form.

FINDINGS: The values of the first-stage liquidity indicator have reached the safe zone. Furthermore, modern approaches to measuring performance were evaluated. From the point of view of the economic added value EVA, the results are in positive numbers except for 2019, and they have an increasing tendency. These investments were profitable and effective.

PRACTICAL IMPLICATIONS: The research provides practical guidance and specific recommendations that can directly contribute to improving the financial health and overall performance of the analysed company. The emphasis on measurable indicators and the proposal of implementable solutions increases its practical value for management practice.

ORIGINALITY/VALUE: For a company to successfully prosper, it is important to know its performance and further improve it. Performance is therefore an important factor that can affect the success and progress of the company. Each company usually invests its money in a certain item but with the aim of returning this financial item to the business cycle.