The paper deals with a method of financial analysis applied by bank institutions in the Czech Republic used for assessment of reliability and solvency of a client applying for a loan. Clients are scored by financial ratios of financial analysis and according to the total sum a letter ranged from A to G is assigned. Further, the paper assesses 81 engineering and 112 construction enterprises according to the above mentioned methodology. An evaluation of the development of reliability and solvency in both sectors is discussed as well.
A firm is often characterized as an entity that transforms unique factors of production to final production in order to maximize its market value and eventually the profit. Given the technological limitation, a firm allocates its financial resources in the most effective way for the purpose of the lowest costs of bought inputs possible within the maximum goods. The situation in the agriculture is the same. Therefore, the aim of this article is to analyse by the means of simplified microeconomic model the development and the structure of factors of production, namely labour and capital, and their influence on final production of a farm in selected agricultural holdings in the Czech Republic.
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