THE CAPITAL STRUCTURE AND DEBT RATIOS OF METALLURGICAL COMPANIES

1 RÓN František
Co-authors:
1 BOBEK Michal
Institution:
1 University of Economics, Prague, Faculty of Finance and Accounting, Department of Corporate Finance and Business Valuation, Prgue, Czech Republic, EU, frantisek.ron@gmail.com, michael.bobek@gmail.com
Conference:
23rd International Conference on Metallurgy and Materials, Hotel Voronez I, Brno, Czech Republic, EU, May 21 - 23, 2014
Proceedings:
Proceedings 23rd International Conference on Metallurgy and Materials
Pages:
1588-1593
ISBN:
978-80-87294-52-9
ISSN:
2694-9296
Published:
18th June 2014
Proceedings of the conference were published in Web of Science and Scopus.
Metrics:
312 views / 261 downloads
Abstract

Main purpose of this article is to analyze and compare the capital structure of metallurgical industry in the Czech Republic, Poland and Slovak Republic before and during so called financial crisis and to find out an extent of impact of the financial crisis on metallurgical industries’ firms capital structure. The analysis primarily focuses on the debt ratios and covers the years from 2006 to 2010. The leverage is crucial for companies’ activities and significantly affects their financial stability, which could have been threatened by circumstances occurring during the crisis. The paper presents horizontal and vertical analysis of aggregated financial statements for each country taking into consideration company size and concerns with changes of equity and liabilities during the period. The analysis uses as well the debt ratios as debt ratio, capitalization ratio and interest coverage ratio, capital expenditures, fixed assets to long term capital etc.

Keywords: capital structure, debt ratios, financial crisis

© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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