Analysis of the Economic Performance and Financial Stability in the Hungarian Food Industry

Katits, Etelka – Szalka, Éva

Keywords: database analysis, multicausality, economic performance, financial stability, growth opportunity, C10, G30, M21, Z3

We examined the economic performance and financial security of the selected Hungarian food industry sample by exploring multicausal causation in the period 2014–2017. The methodology used was from the expert system FINel and EkoWIN. The financial diagnosis of the sector pattern is as follows: very favourable sales processes were realized with moderate profitability, less secure liquidity, but adequate capital supply; also moderate asset efficiency combined with low productivity and financial realization. Based on the results obtained, we see an opportunity to realize the growth path. The first step is to financially stabilize the operation of the sector so that growth can be based on internal sources of financing. We propose the following objective: to increase financial realization and productivity and to improve the liquidity situation. Stable and profitable operation opens up opportunities for further growth.
The results of the investigation help financial executives
- their planning work by calculating growth rates and (static and dynamic) liquidity, calculating of the currency deposit and loan time in the operating cash cycle;
- their management work, particularly in the field of operational business;
- monitoring and controlling their work, in particular the examination of internal and sustainable growth rates, in the light of revenue achieved, the adequacy of profit-making and asset financing, and the management of liquidity.

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