IMPACT OF THE FINANCIAL CRISIS ON PROFITABILITY AND LIQUIDITY OF COMPANIES IN METALLURGICAL INDUSTRY IN THE CZECH REPUBLIC

Le résumé fourni par la source

The financial crisis in 2008 – 2010, which global nature was started by the fall of investment bank Lehman Brothers in September 2008, touched most sectors on a global scale. Because of this crisis, the investments and consumption decreased in the economy. The reduction also influenced the metallurgical industry negatively. The demand for metallurgical products plummeted rapidly, because the production of metallurgical industry is essential part of the consumption and investments principally. The article investigates an impact of the financial crisis on the metallurgical industry in Czech Republic. The development is analyzed during and before the crisis. The current years are mentioned as well. The impact of the crisis is investigated by using return ratios, especially the return on assets. The return on assets expresses performance of companies without influence on capital structure. The article contains the analysis of liquidity, especially focusing on how efficiently the free cash was used, and the analysis of capital structure as well as its changes during the crisis. The impact of the crisis on the metallurgical industry is compared with the development of the Czech economy before and during the crisis. One of the most important finding is, in comparison with the other industrial companies, the above-average decrease of return-ratios of metallurgical companies. On the other hand, the level of liquidity is higher than the other industrial companies. The intensity and quickness of the crisis on metallurgical companies is very interesting. The downswing of returns ratios began immediately in 2008; the intensity of the crisis was deeper than in common industries' companies. As the consequence of the crisis can be listed the changed capital structure of metallurgical companies – the equity has increased.

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