Journals - MOST Wiedzy

Your account

Login

FORMATION OF THE LEVEL OF EFFICIENCY RATIOS BY SMALL AND MEDIUM ENTERPRISES DEPENDING ON THE ACHIEVED RETURN ON ASSETS

Abstract

The article presents the differences in the manner of creating the level of efficiency ratios between the small and medium enterprise sector companies, depending on the achieved return on assets. The research was conducted taking into consideration 34,820 financial statements of enterprises, running economic activity in 22 different sectors of national economy. The Mann-Whitney U nonparametric test was used for confirming the diversity of the forms
of efficiency for enterprises, depending on the level of return of assets achieved by them. The conducted research proved that SMEs characterized by above-average profitability created higher level of total assets turnover ratio and lower levels of days inventory outstanding, days
sales outstanding and days payables outstanding from those with below-average profitability. Moreover, the results obtained during the study confirm that SMEs belonging to various sectors of economy form the ratios in the area of efficiency differently.

Keywords:

MSP, efficiency ratios, SMEs, profitability, financial analysis

Details

Issue
Vol. 1 No. 20 (2017)
Section
Research article
Published
2017-01-01
DOI:
https://doi.org/10.19253/reme.2017.01.004
Licencja:
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

This is an Open Access journal, all articles are distributed under the terms of the Creative Commons (CC BY 4.0) License (http://creativecommons.org/licenses/by-nc-sa/4.0/). You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits. 

Authors

Piotr Figura

Gdańsk University of Technology, Faculty of Management and Economics

Download paper