Application of Selected Modified Financial Indicators to Assessing the Financial Stability of Business Entities

Abstract

The main objective of the paper is to assess the financial stability of selected business entities using a choice of financial indicators and their modified versions. A review of the literature and the figures describing the research sample allowed for defining the proposed concepts and building selected financial formulae. The study showed that the financial stability assessment of these entities was not unequivocal, though, as there were substantial discrepancies between the values of the individual indicators. This was mainly caused by the seasonality of production or sales, which played a significant role considering the business profile of the food business operators examined. Still, however, the entities that demonstrated financial stability could be told from those that did not. The financially stable group comprised one company, while considerable financial difficultiesincluding the loss of stability -could be shown for two companies. The results of the study are presented in Figures. The paper is summarized with conclusions from the research.