Factors determining profitability of small and medium enterprises in selected industry of mechanical engineering in the Slovak Republic – the empirical study
2019
The profi tability analysis revealing factors infl uencing profi tability becomes a very helpful tool
providing guidelines for managers in their short-term as well as strategic decision-making process.
To take right decisions, managers need to analyse their fi nancial situation, especially in respect to
fi rm´s profi tability and the factors infl uencing it. Mechanical engineering industry belongs to key
industries in Slovakia. It apparently plays an essential role in the global economy, it is a source
of entrepreneurship, innovations and new jobs. Many of enterprises operating in this industry are
small or medium-sized. These are some of the reasons for which SMEs´ profi tability and ways of
its improvement should draw particular attention. The paper presents results of research carried
out in the selected industry of mechanical engineering of SMEs in Slovakia (SK NACE rev. 2 28xxx
– Manufacture of machinery and equipment not elsewhere classifi ed). The aim of the research is
to analyse and evaluate the development of profi tability in this industry during the period 2008-
2015 and to identify key external and internal factors infl uencing profi tability of SMEs over that
period. In order to determine the infl uence of basic indicators, the DuPont pyramidal analysis was
performed. Data obtained by means of the questionnaire survey enabled to identify the factors
affecting profi tability whose infl uence is impossible to calculate. The Friedman and Wilcoxon tests
were used to evaluate the answers in questionnaires. Results are connected with the evaluation of
three hypotheses defi ned in regard of the established goal of the paper.
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