Optimal Value of Current Ratio

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F20%3A39916138" target="_blank" >RIV/00216275:25410/20:39916138 - isvavai.cz</a>

Výsledek na webu

<a href="https://digilib.uhk.cz/bitstream/handle/20.500.12603/228/Honkov%c3%a1%2c%20Kub%c4%9bnka.pdf?sequence=1&isAllowed=y" target="_blank" >https://digilib.uhk.cz/bitstream/handle/20.500.12603/228/Honkov%c3%a1%2c%20Kub%c4%9bnka.pdf?sequence=1&isAllowed=y</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.36689/uhk/hed/2020-01-027" target="_blank" >10.36689/uhk/hed/2020-01-027</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Optimal Value of Current Ratio

Popis výsledku v původním jazyce

This article deals with the optimal value of current ratio. The paper originated in response to two contradictory statements. The first one states that working capital should be positive, i.e. that current assets are higher than current liabilities. The second statement states that current assets should be paid from short-term sources and fixed assets from long-term sources. This would mean that current assets should be equal to current liabilities. The dependence of current ratio on business success expressed by indicators of profitability - return on assets (ROA) and return on equity (ROE) - was measured on a sample of over four thousand Czech companies. It has been found that for companies with inventory, the ROE rises up to the value of current ratio of 2.5, although the growth rate decreases with increasing liquidity, which means that it is more advantageous for them to have positive working capital, where the amount of assets exceeds the current liabilities 2.5 times. The dependences regarding the ROA and for companies with no inventory cannot be generalized according to the conducted research.

Název v anglickém jazyce

Optimal Value of Current Ratio

Popis výsledku anglicky

This article deals with the optimal value of current ratio. The paper originated in response to two contradictory statements. The first one states that working capital should be positive, i.e. that current assets are higher than current liabilities. The second statement states that current assets should be paid from short-term sources and fixed assets from long-term sources. This would mean that current assets should be equal to current liabilities. The dependence of current ratio on business success expressed by indicators of profitability - return on assets (ROA) and return on equity (ROE) - was measured on a sample of over four thousand Czech companies. It has been found that for companies with inventory, the ROE rises up to the value of current ratio of 2.5, although the growth rate decreases with increasing liquidity, which means that it is more advantageous for them to have positive working capital, where the amount of assets exceeds the current liabilities 2.5 times. The dependences regarding the ROA and for companies with no inventory cannot be generalized according to the conducted research.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Hradec Economic Days. Vol. 10. Part 1

ISBN

978-80-7435-776-3

ISSN

2464-6059

e-ISSN

2464-6067

Počet stran výsledku

6

Strana od-do

244-249

Název nakladatele

Univerzita Hradec Králové

Místo vydání

Hradec Králové

Místo konání akce

Hradec Králové

Datum konání akce

2. 4. 2020

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000568108700026