Performance of the Textile Industry Companies in the Liberec Region

Abstract

The aim of the article is to evaluate performance of small and medium-sized companies in the textile industry located in the Liberec Region. The textile industry was chosen because of its importance in the Liberec Region in the past. The analysis is focused on the current performance of textile and clothing enterprises between the years 2013 and 2015. To do so, two different approaches are used. The first approach is based on the traditional measurement of performance using the accounting profit or loss. The second approach uses modern techniques, namely the Economic Value Added ratio (EVA). In both cases, the development of the values of both indicators is analysed over time. The research confirmed quite a substantial difference when measuring performance using the above mentioned approaches.