财务流动性与盈利能力管理中英文对照外文翻译文献编辑

1、文献信息文献标题：FinancialLiquidityandProfitabilityManagementin Practice of Polish Business（波兰企业实践中的财务流动性与盈利能力管理）文献作者：Katarzyna Goldmann文献出处：FinancialEnvironmentandBusinessDevelopment, 2017:103-112字数统计：英文 2735 单词，14502 字符；中文 4163 汉字外文文献Financial Liquidity and Profitability Management in Practice of Polish B

2、usinessAbstract From the point of view of companies survival strategies, in the short term, financial liquidity plays a more important role than profitability does. In the case when the company is not profitable in the short term but is characterized by good financial liquidity, it has the potential

3、 for further development and for improving its performance. However, in a long-term perspective, profitability is more important because its lack in the long term will result in lacking financial liquidity. Therefore, an important element of company management is making a systematic analysis of fina

4、ncial liquidity and profitability, both on the basis of financial statements and on data derived from its accounts. The objective of the article is to present Polish companies approach to managing financial liquidity and profitability. The article presents the results of a survey made on the issue.

5、Based on the survey, the extent ofthe use in making management decisions of the following was determined: liquidity ratios, working capital and the demand for working capital, analysis of the cash flow statement, and indicators of profitability. The researched entities indicated the extent of useful

6、ness of managing receivables, liabilities, inventory, and cash in financial liquidity and profitability management.Keywords: Financial liquidity management; Financial liquidity; Financial liquidity analysis; Profitability management; Profitability; Profitability analysis1.IntroductionAccording to th

7、e theory of the market economy, running a business is profit oriented, and the basic measure of the extent of its realization is profitability. Providing financial liquidity is equally important to gaining profits (Zuba 2010). From the point of view of companies survival strategies in the short term

8、, financial liquidity plays a more important role than profitability does. In the case when the company is not profitable in the short term but is characterized by good financial liquidity, it has the potential for further development and for improving its performance. However, in a long-term perspe

9、ctive, profitability is more important because its lack in the long term will result in lacking financial liquidity. Thus, an economic downturn and a decrease in sales revenue in an enterprise may result in lower cash flow and a lack of cash for making payments (Ciechan-Kujawa 2013), and disturbance

10、 of the ability to repay obligations by means of external financing may lead to insolvency. Entities with lower levels of debt are more profitable, which is consistent with the theory of the hierarchy of funding sources, according to which companies firstly use their internally generated capital (Ch

11、ojnacka 2014).The challenge in liquidity management is to achieve desired trade-off between liquidity and profitability (Raheman and Nasr 2007). Liquidity requirement of a company depends on the peculiar nature of the company, and there is no specific ruleon determining the optimal level of liquidit

12、y that a company can maintain in order to ensure positive impact on its profitability (Owolabi and Obida 2012).Liquidity analysis is of particular importance both for the company and the environment. A weak liquidity position poses a threat to the solvency as well as profitability of a company and m

13、akes it unsafe and unsound. Potential investors are paid more attention on the profitability ratios, in particular return on equity. Managers on the other hand are interested in measuring the operating performance in terms of profitability. The liquidity and profitability goals are contradictory to

14、each other in most decisions (Niresh 2012). In the context of the needs and expectations of financial statements defined by different groups of stakeholders, the knowledge and assessment of profitability, financial liquidity, and forecasts of trends in this scope seem to be very useful, and the will

15、ingness to use them, among others, for management purposes should be emphasized (Ciechan-Kujawa 2014). Therefore, an important element of company management is making a systematic analysis of financial liquidity and profitability, both on the basis of financial statements and on data derived from th

16、e accounts. The objective of the article is to present Polish companies approach to managing financial liquidity and profitability in this respect.2.Research Methodology and Characteristics of CompaniesThe research was conducted in the first quarter of 2015. The questionnaire was sent by mail to app

17、roximately 2000 companies operating throughout Poland and selected in a purposeful manner. The criterion for selection was the preparation of financial statements including the balance sheet, profit and loss account, statement of changes in equity, and cash flow statement. Responses were obtained fr

18、om 294 companies; however, 228 properly completed questionnaires were classified to the research sample. Based on that sample of respondents, the statistical part was conducted and the results were compiled.Among the surveyed companies, the dominating group were manufacturing companies (58 %), follo

19、wed by service-providing companies (24 %) and by commercial ones (18 %), presented in Table 1.Table 1 Characteristics of companiesSpecificationTotalNumber%Overall228100Type of business activity conductedaManufacturing company13358.33Trading company4017.54Service-providing company5524.12Time of opera

20、ting on the marketFrom 1 up to 5 years104.39From 6 up to 10 years198.33More than 10 years19987.28Range of operationsLocal2611.40National9240.35International11048.25Company sizeSmall4218.42Medium9039.47Large9642.11aDominating type of activityThe vast majority of respondents (87 %) are companies that

21、have beenconducting business activity for more than 10 years on international markets (48 %) and national ones (41 %). Almost half of them are large-(40 %) and medium-sized (39%) companies.3.Financial Liquidity ManagementPreliminary analysis of the cash flow statement is carried out in three-quarter

22、s (76 %) of the surveyed companies, while the indicator analysis of cash flow in 69 % of them, which is presented in Table 2. This applies in particular to large manufacturing companies with the time of operating on the market exceeding 10 years and with the international reach. If the analysis is n

23、ot performed, it is because in the entities examined there is no need to do so, and if it is necessary, then there is no such a person who could conduct this analysis. These are mainly serviceproviding companies.Table 2 Preliminary analysis and the indicator analysis of the cash flow statement in co

24、mpaniesSpecificationTotalNumber%Overall228100Preliminary analysis of the cash flowYes17476.32No5423.68The indicator analysis of cash flowYes15869.30No7030.70Preliminary analysis of the cash flow statement is carried out in the surveyed enterprises more frequently than the indicator analysis of the c

25、ash flow statement. However, in the case the indicator analysis of the cash flow statement is carried out,then the degree of its usefulness in making management decisions in the enterprise is higher than that of the preliminary analysis, as is shown in Fig. 1.Fig. 1 The degree of usefulness of preli

26、minary analysis and the indicator analysis of the cash flow statement in managing liquidityThen respondents stated whether they calculate dynamic indicators in the scope of cash flow statement, and if yes, which ones. Based on the data presented in Table 3, it follows that most enterprises calculate

27、 the indicators of the cash flow structure, next, cash sufficiency indicators, and cash performance indicators. However, according to the respondents, the most useful in companies decision-making are the following in the presented order: cash sufficiency indicators, cash performance indicators, and,

28、 finally, indicators of the cash flow structure.Table 3 The indicators of the cash flow statement calculated in companies and their degrees of usefulness in managing liquiditySpecificationTotalNumber%Overall228100The indicators of the cash flow structure4.04Yes14664.04No8235.96Cash sufficiency indic

29、ators4.24Yes13057.02No9842.98Cash performance indicators4.18Yes11249.12No11650.88Ratio analysis is complemented by an analysis of working capital and the demand for this capital. The main task of net working capital is to maintain the optimal size of current assets so that, on the one hand, the comp

30、any was able to settle its current liabilities and, on the other hand, had the opportunity to invest its assets in order to increase profitability (Goldmann 2013).The majority of companies (75 %) determine the working capital in the company, and half of them determine it on a regular basis (usually

31、every quarter or every month), and the rest only when needed. The degree of usefulness in decisionmaking is on average 3.93 (on the Likert scale, it ranges from 1 to 5). The demand for working capital is determined by 70 % of respondents, and most of them (63 %) determine its level only when needed,

32、 and the remaining companies do it on a regular basis. From the responses received and presented in Table 4, it can be concluded that the researched entities tend to check the level of working capital, which aims to secure financial liquidity in the enterprise more often, than to figure out the dema

33、nd for this capital. The demand for working capital is typically a point of reference in relation to working capital and is to help in making decisions about the companys striving to maintain its optimal level.The vast majority of enterprises that determine both the working capital and the demand fo

34、r this capital manage the working capital. In this regard, respondents realize the strategy of managing working capital in their companies. The majority of the surveyed companies (73.61 %) conduct a moderate strategy, and then it comes conservative. Only a small proportion of them (2.78 %) lead an a

35、ggressive strategy. Table 5 presents the results of the survey made on the issue.Table 4 The working capital and the demand for working capital and their degrees of usefulness in managing liquiditySpecificationTotalNumber%Overall228100The working capitalNo5725.00Yes, when needed8738.1675%Yes, regula

36、r*8436.84The demand for working capitalNo6829.82Yes, when needed10144.3070.18%Yes, regular*5925.883.853.93*usually every quarter or every monthTable 5 The managing of working capital and the strategy of managing working capital in companiesThe managing of working capitalYes14463.16No8436.84The strat

37、egy of managing working capitalModerate strategy10673.61Conservative strategy3423.61Aggressive strategy42.78The companies have determined what liquidity ratios they calculate, and the findings are presented in Table 6. The vast majority (84.21 %) calculates static indicators, and 62.28 % of all ente

38、rprises have dynamic indicators. However, the degree of usefulness of indicators in managing liquidity was higher for dynamic indicators of financial liquidityabove 4while all the static liquidity indicatorswere characterized by average degrees of usefulness below 4.Table 6 Static indicators and dyn

39、amic indicators of financial liquidity of the cash flow statement calculate in companies and their degrees of usefulness in managingliquiditySpecificationTotalNumber%The degree of usefulness in managing liquidityOverall228100Static indicators of financial liquidityThe cash ratio3.713.88Yes19284.21Qu

40、ick ratio3.97No3615.79Current ratio3.95Dynamic indicators of financial liquidityYes14262.284.03No8637.72Almost all of the researched companies manage cash. Next, they manage, in the following order, receivables, liabilities, and inventory. The usefulness of specific areas in the management of financ

41、ial liquidity is as follows:Management of cash, receivables, and liabilities oscillates at the same level and averages at 4.46.Inventory management is less useful for companies with the average of 4.16. However, for manufacturing companies, the degree of usefulness was at 4.36. Table 7 presents the

42、results of a survey made on the subject.Table 7 Management of cash, receivables, liabilities, and inventory and their degrees of useful- ness in managing liquiditySpecificationTotalNumber%Overall228100Management of cashYes21996.054.46No93.95Management of receivablesYes21795.184.45No114.82Management

43、of liabilitiesYes21092.114.48No187.89Inventory management4.16Manufacturing company4.36Yes19685.96Trading company4.10No3214.04Service-providing company4.05Proper management of working capital contributes to minimization of excess inventory and timely payment of liabilities and hence determines the ma

44、intenance of liquidity (Tokarski et al. 2014). In order to make management of working capital effective, it is necessary to maintain the harmony between the ability to pay obligations and achieve profits (Singhania et al. 2014).4.Profitability ManagementThe surveyed companies determined whether they

45、 calculate, and if yes, which profitability ratios. Almost all of the companies surveyed (96.05 %) calculate their return on sales, more than three-quarters of the companies (79.39 %) prepare their return on assets, and more than half (64.04 %) return on equity, as presented in Table 8.Table 8 Profi

46、tability ratios calculate in companies and their degrees of usefulness in profitabilitymanagementSpecificationTotalNumber%Overall228100Return on sales (ROS)Yes21996.054.48No93.95Return on assets (ROA)Yes18179.393.96No4720.61Return on equity (ROE)Yes14664.044.25No8235.96The degree of usefulness of pa

47、rticular groups of profitability ratios in managing profitability is as follows:The highest average degree of usefulness has the return on sales (4.48).For indicator return on equity, the average degree of usefulness amounts to 4.25.The lowest average degree of usefulness has the return on assets (3

48、.96).The question“does the company during the year also carry out an analysis and evaluation of the profitability based on data derived from the books?”was answered affirmatively by almost three-quarters of respondents (74 %). Detailed study results showed that such an analysis is conducted mostly o

49、nce a month (52 %), and next it was once a quarter (36 %) and twice a year (12 %). Companies, in particular, calculate their return on sales. Table 9 presents the results of a survey analyzing the issue.Table 9 Frequency analysis of the profitability based on data derived from the booksSpecification

50、TotalNumber%Overall228100Yes16974.12No5925.88once a month52%once a quarter36%twice a year12%Does the company during the year also carry out an analysis and evaluation of the profitability based on data derived from the books?Then the surveyed companies informed whether they make analyses and evaluat

51、ions based on the financial statement on the profitability of competition. The research shows that about 43 % of enterprises perform such an analysis mainly in the scope of sales profitability. The results of it are contained in Table 10.SpecificationTotalNumber%Overall228100Yes9943.42No12956.58ROS9

52、8%ROA46%Table 10 Analyses and evaluations based on the financial statement on the profitability of competition41%ROE5.SummaryBased on the questionnaire survey conducted, the following conclusions can be drawn:In the scope of financial liquidity management, greater usefulness in this area has the man

53、agement of individual areas, cash, receivables, liabilities, and inventory, rather than dynamic and static indicator analyses of financial and evaluation of working capital.Cash and cash equivalents constitute a very important element for entities, since in the short term, it is not profits gained,

54、but own financial means that are most important (Goldmann et al. 2009). It follows that companies while making decisions on the management of financial liquidity, based in particular on simple and transparent positions, as the rates and volumes calculated on the basis of data from the financial stat

55、ements often are ambiguous and require deeper analysis.In the scope of profitability management, enterprises on the basis of the financial statements calculate their return on sales, which they consider to have the highest degree of usefulness in managing profitability. More than half of them additionally analyze the profitability of the company every month based on data derived from their books, and it concerns in particular the sales profitability ratios. In this area, every second company also analyzes its competition; however, in the authors opinion today, almost all business