Rethinking Liquidity Ratios: The Case of Manufacturing in the Czech Republic
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| Year of publication | 2014 |
| Type | Article in Proceedings |
| Conference | The International Conference Hradec Economic Days 2014, Peer-Reviewed Conference Proceedings, Part V. |
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| Citation | POKORA, Jindřich. Rethinking Liquidity Ratios: The Case of Manufacturing in the Czech Republic. In Ing. Pavel Jedlička, Csc. The International Conference Hradec Economic Days 2014, Peer-Reviewed Conference Proceedings, Part V. 1. vyd. Hradec Králové: Gaudeamus, the University of Hradec Králové, 2014, p. 169-175. ISBN 978-80-7435-370-3. |
| Field | Management and administrative |
| Keywords | financial performance; liquidity ratios; current ratio; optimal values; manufacturing |
| Description | Similar optimal or recommended values of liquidity ratios are commonly appearing in the Czech literature. The purpose of this paper is to calculate a recommended value of current ratio for large firms in the manufacturing sector based on the data in three consecutive years, from 2009 to 2011. The analysis of the best-performing firms showed that current ratio frequency distribution matches a gamma distribution function, where its peak determines the recommended value at 1.4 or as an interval (1.2, 1.6), which denotes the most common value of current ratio. |
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