ESC

Clarivate

JCR Category: Business in ESCI edition

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2023) 1.2 Q4
Journal Citation IndicatorTM (2023) 0.33 Q3
Received: 2024-07-11  |  Accepted: 2024-11-09  |  Published: 2024-12-30

Title

Evaluation of the financial performance of engineering companies in the Czech Republic and Central Europe


Abstract

This article aims to analyse the development of the financial performance of engineering companies and evaluate the situation of the last decade in the Czech Republic and the neighbouring countries. The analysis of the development of the financial performance of engineering companies in the Czech Republic is carried out over the last 10 years and compared through the Winsorized mean with the situation in engineering in the neighbouring countries. The article is based on data collected in secondary research and relevant articles. The results of the selected financial indicators suggest that the engineering sector in the Czech Republic shows the best values only in terms of the indebtedness indicator. Other indicators show a more favourable position of engineering enterprises in Austria and Germany, demonstrating a higher degree of automation and innovation. Within the V4 countries, Hungary is the leading country according to the results of individual indicators. However, all the selected countries show problems in terms of the Liabilities Turnover Ratio, which is followed by an issue with low values in the profitability indicator. From the cited sources, previous articles, and the analysis carried out, engineering companies in the Czech Republic show average results in the selected financial indicators in the monitored period. In terms of financial performance, the engineering sector in Austria and Germany is in the leading position among the selected countries. The engineering sector in the Czech Republic should focus on increasing profitability, which would be facilitated by increasing technological progress and innovation.


Keywords

financial performance, engineering, Visegrad Group, EU, Industry 4.0


JEL classifications

M21 , G32


URI

http://jssidoi.org/jesi/article/1259


DOI


Pages

262-274


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Bureš, Josef
Brno University of Technology, Brno, Czech Republic https://www.vutbr.cz
Articles by this author in: CrossRef |  Google Scholar

Sobotková, Nikola
Brno University of Technology, Brno, Czech Republic https://www.vutbr.cz
Articles by this author in: CrossRef |  Google Scholar

Bartoš, Vojtěch
Brno University of Technology, Brno, Czech Republic https://www.vutbr.cz
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

12


Number

2


Issue date

December 2024


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 658  |  PDF downloads: 259

References


Aigbavboa, C. O., Ebekozien, A., & Mkhize, N. (2023). An assessment of South African airlines’ growth in the era of Fourth Industrial Revolution technologies: The unexplored dimension. Journal of Facilities Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/JFM-07-2022-0076

Search via ReFindit


Ali, Z., McGreal, S., Adair, A., Webb, J. R., & Roulac, S. E. (2008). Corporate Real Estate Strategies and Financial Performance of Companies. Journal of Property Research, 25(3), 241-267. https://doi.org/10.1080/09599910802696722

Search via ReFindit


Arias-Gomez, H. Y., & Antošová, G. (2023). Regional manufacturing in the Czech Republic. Urban, Planning and Transport Research, 11(1) https://doi.org/10.1080/21650020.2023.2222154

Search via ReFindit


Baby, A., Mia, M. A., & Pitchay, A. A. (2024). A systematic review of financial performance in the manufacturing industry. Future Business Journal, 10(1), 70. https://doi.org/10.1186/s43093-024-00353-1

Search via ReFindit


Brito, C., Ciampi, M., Vasconcelos, R., Amaral, L., & Barros, V. (2013, June 23). Engineering impacting social, economical and working environment. Conference. ASEE Annual Conference & Exposition. https://doi.org/10.18260/1-2--19525

Search via ReFindit


Buehler, M. M., Jelinek, T., & Nubel, K. (2022). Training and Preparing Tomorrow’s Workforce for the Fourth Industrial Revolution. Education Sciences, 12(11), 782. https://doi.org/10.3390/educsci12110782

Search via ReFindit


Calderon-Monge, E., & Ribeiro-Soriano, D. (2024). The role of digitalisation in business and management: A systematic literature review. Review of Managerial Science, 18(2), 449-491. https://doi.org/10.1007/s11846-023-00647-8

Search via ReFindit


Filho, A.R.A., Garcia, E.A.D.R., & Vasconcelos, A.C.d.V. (2024). The Influence of Internationalization on the Financial Performance of Brazilian and European Companies. Revista Gestao Organizacional, 17(1), 6-33. https://doi.org/10.22277/rgo.v17i1

Search via ReFindit


Gavurova, B., Schonfeld, J., Bilan, Y., & Dudas, T. (2022). Study of the Differences in the Perception of the Use of the Principles of Corporate Social Responsibility in Micro, Small and Medium-Sized Enterprises in the V4 Countries. Journal of Competitiveness, 14(2), 23–40. https://doi.org/10.7441/joc.2022.02.02

Search via ReFindit


Gavurova, B., Soltes, M., & Kovac, V. (2017). Application of cluster analysis in process of competitiveness modelling of Slovak Republic regions. Transformations in Business & Economics, 16(3), 129-147.

Search via ReFindit


Hudáková Stašová, L. (2023). Advantages and Suitability of Activity-Based Costing: A Study from Engineering Industry. Central European Business Review, 12(4), 1-31. https://doi.org/10.18267/j.cebr.330

Search via ReFindit


Jin, Z., & Xu, J. (2020). Impact of Environmental Investment on Financial Performance: Evidence from Chinese listed Companies. Polish Journal of Environmental Studies, 29(3), 2235-2245. https://doi.org/10.15244/pjoes/111230

Search via ReFindit


Kangari, R., Farid, F., & Elgharib, H. M. (1992). Financial Performance Analysis for Construction Industry. Journal of Construction Engineering and ManagementList of Issues, 118(2) 0733-9364(1992)118:2(349) https://doi.org/10.1061/(ASCE)

Search via ReFindit


Konkurenceschopnost analýza HK. (2022). Online. Hospodářská komora České republiky. https://www.komora.cz/app/uploads/2024/06/konkurenceschopnost_material_final.pdf

Search via ReFindit


Krajicek, P., Novak, V., & Palcrova, S. (2019). Economic Performance of Manufacturing Industry of Pilsen Agglomeration. In V. Klimova & V. Zitek (Eds.), 22nd International Colloquium on Regional Sciences, (pp. 61-68). Masarykova Univ. https://doi.org/10.5817/CZ.MUNI.P210-9268-2019-7

Search via ReFindit


Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466

Search via ReFindit


Kunju Mol Raj, R., Dlouhy, P., Kovac, V. & Turinska, L. (2024). Investing in Pairs of Precious Metals: Portfolio Theory Application. Acta Montanistica Slovaca, 28(v28/i4), 941-951. https://doi.org/10.46544/AMS.v28i4.12

Search via ReFindit


Kuzmenko, O., Bilan, Y., Bondarenko, E., Gavurova, B., & Yarovenko, H. (2023). Dynamic stability of the financial monitoring system: Intellectual analysis. Plos One, 18(1), e0276533. https://doi.org/10.1371/journal.pone.0276533

Search via ReFindit


Lam, W. S., Lam, W. H., Jaaman, S. H., & Liew, K. F. (2021). Performance Evaluation of Construction Companies Using Integrated Entropy–Fuzzy VIKOR Model. Entropy, 23(3), Article 3. https://doi.org/10.3390/e23030320

Search via ReFindit


Lehenchuk, S., Raboshuk, A., Zhyhlei, I., Zakharov, D., & Fedoryshyna, L. (2023). Financial Performance Determinants of Ukrainian Agricultural Companies in the Pre-War Period. Agricultural and Resource Economics-International Scientific E-Journal, 9(4), 102-118. https://doi.org/10.51599/are.2023.09.04.05

Search via ReFindit


Liao, Y., Ramos, L. F. P., Saturno, M., Deschamps, F., de Freitas Rocha Loures, E., & Szejka, A. L. (2017). The Role of Interoperability in The Fourth Industrial Revolution Era. IFAC-PapersOnLine, 50(1), 12434-12439. https://doi.org/10.1016/j.ifacol.2017.08.1248

Search via ReFindit


Lukáč, J., Olexová, C., & Kudlová, Z. (2022). Factors predicting companies’ crisis in the engineering industry from the point of view of financial analysis. Plos One https://doi.org/10.1371/journal.pone.0264016

Search via ReFindit


Malichová, E., & Ďurišová, M. (2015). Evaluation of Financial Performance of Enterprises in IT Sector. Procedia Economics and Finance, 34, 238-243. 01625-1 https://doi.org/10.1016/S2212-5671(15)

Search via ReFindit


Mehmood, S., Jabeen, R., Khan, M. A., Khan, M. A., Gavurova, B., & Oláh, J. (2023). Impact of despotic leadership and workplace incivility on innovative work behavior of employees: Application of mediation-moderation model. Heliyon, 9(9). https://doi.org/10.2139/ssrn.4371870

Search via ReFindit


Muthuraman, B. (2020). Performance Efficiency of Engineering Industries in India. International Journal of Research in Entrepreneurship & Business Studies, 1(2), 44-53. https://doi.org/10.47259/ijrebs.125

Search via ReFindit


Pruskova, K. (2019). Beginning of Real Wide Use of BIM Technology in the Czech Republic. IOP Conference Series: Materials Science and Engineering, 471(10), 102010. https://doi.org/10.1088/1757-899X/471/10/102010

Search via ReFindit


Radonic, M., Milosavljevic, M., & Knezevic, S. (2021). Intangible Assets as Financial Performance Drivers of It Industry: Evidence from an Emerging Market. E & M Ekonomie a Management, 24(2), 119-135. https://doi.org/10.15240/tul/001/2021-2-008

Search via ReFindit


Rajnoha, R., Gálová, K., & Rózsa, Z. (2018). Measurement of Impact of Selected Industrial Engineering Practices on Companies’ Economic Performance. Engineering Economics, 29(2), Article 2. https://doi.org/10.5755/j01.ee.29.2.19871

Search via ReFindit


Salah, O., Georgy, M., & Ragab, A. (2021). Financial ratio analysis in construction industry: an investigation using machine learning. Proceedings of International Structural Engineering and Construction, 8(1). .CON-11 https://doi.org/10.14455/ISEC.2021.8(1)

Search via ReFindit


Schäfer, M. (2018). The fourth industrial revolution: How the EU can lead it. European View, 17(1), 5-12. https://doi.org/10.1177/1781685818762890

Search via ReFindit


Simionescu, M. (2016). The Competition between London Companies Regarding Their Financial Performance. Journal of Competitiveness, 8(2), 5-16. https://doi.org/10.7441/joc.2016.02.01

Search via ReFindit


Skare, M., Gavurova, B., & Kovac, V. (2023). Investigation of selected key indicators of circular economy for implementation processes in sectorial dimensions. Journal of Innovation & Knowledge, 8(4), 100421. https://doi.org/10.1016/j.jik.2023.100421

Search via ReFindit


Skare, M., Gavurova, B., & Rigelsky, M. (2024). Quantification of the impact of innovations in industry and infrastructure for sustainable circular economy production and consumption. Journal of Innovation & Knowledge, 9(1), 100456. https://doi.org/10.1016/j.jik.2023.100456

Search via ReFindit


Spalek, S. (2013). Improving Industrial Engineering Performance through a Successful Project Management Office. Inzinerine Ekonomika-Engineering Economics, 24, 88-98. https://doi.org/10.5755/j01.ee.2.24.2.3087

Search via ReFindit


Stefko, R., Jencova, S., Vasanicova, P., & Litavcova, E. (2019). An Evaluation of Financial Health in the Electrical Engineering Industry. Journal of Competitiveness, 11(4), 144-160. https://doi.org/10.7441/joc.2019.04.10

Search via ReFindit


Svatos, M. (2009). Zahraniční obchod: teorie a praxe. Praha: Grada. ISBN 978-80-247-2708-0.

Search via ReFindit


Tehrani, R., Mehragan, M., & Golkani, M. (2012). A Model for Evaluating Financial Performance of Companies by Data Envelopment Analysis—A Case Study of 36 Corporations Affiliated with a Private Organization. International Business Research, 5. https://doi.org/10.5539/ibr.v5n8p8

Search via ReFindit


Tengilimoğlu, D., Tümer, T., Bennett, R. L., & Younis, M. Z. (2023). Evaluating the Financial Performances of the Publicly Held Healthcare Companies in Crisis Periods in Türkiye. Healthcare, 11(18), Article 18. https://doi.org/10.3390/healthcare11182588

Search via ReFindit


Tkacova, A., & Gavurova, B. (2023). Economic sentiment indicators and their prediction capabilities in business cycles of EU countries. Oeconomia Copernicana, 14(3), 977-1008. https://doi.org/10.24136/oc.2023.029

Search via ReFindit


Tradingeconomics.com. (2023). Steel Market Price Development. https://tradingeconomics.com/commodity/ironore62

Search via ReFindit


Tsolas, I. (2020). Financial Performance Assessment of Construction Firms by Means of RAM-Based Composite Indicators. Mathematics, 8, 1347. https://doi.org/10.3390/math8081347

Search via ReFindit


Váně, J., Kalvas, F., & Basl, J. (2021). Engineering companies and their readiness for Industry 4.0. International Journal of Productivity and Performance Management, 70, 1072-1091. https://doi.org/10.1108/IJPPM-06-2020-0318

Search via ReFindit


Vochozka, M., Skoda, M., Kunju Mol Raj, R. & Blahova, A. (2024). Bitcoin as a National Currency: A Case Study for the Czech Republic. Acta Montanistica Slovaca, 29(v29/i1), 13–25. https://doi.org/10.46544/AMS.v29i1.02

Search via ReFindit