Publication details

Rethinking Liquidity Ratios: The Case of Manufacturing in the Czech Republic

Authors

POKORA Jindřich

Year of publication 2014
Type Article in Proceedings
Conference The International Conference Hradec Economic Days 2014, Peer-Reviewed Conference Proceedings, Part V.
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Management and administrative
Keywords financial performance; liquidity ratios; current ratio; optimal values; manufacturing
Description Similar optimal or recommended values of liquidity ratios are commonly appearing in the Czech literature. The purpose of this paper is to calculate a recommended value of current ratio for large firms in the manufacturing sector based on the data in three consecutive years, from 2009 to 2011. The analysis of the best-performing firms showed that current ratio frequency distribution matches a gamma distribution function, where its peak determines the recommended value at 1.4 or as an interval (1.2, 1.6), which denotes the most common value of current ratio.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.

More info