Professional paper

The impact of production capacity utilization on metallurgical companies financing

J. Kutáč ; Faculty of Metallurgy and Materials Engineering, VŠB – Technical University of Ostrava, Ostrava, Czech Republic
K. Janovská ; Faculty of Metallurgy and Materials Engineering, VŠB – Technical University of Ostrava, Ostrava, Czech Republic
A. Samolejová ; Faculty of Metallurgy and Materials Engineering, VŠB – Technical University of Ostrava, Ostrava, Czech Republic
P. Besta ; Faculty of Metallurgy and Materials Engineering, VŠB – Technical University of Ostrava, Ostrava, Czech Republic
Š. Vilamová ; Faculty of Metallurgy and Materials Engineering, VŠB – Technical University of Ostrava, Ostrava, Czech Republic
I. Vozňáková ; Faculty of Metallurgy and Materials Engineering, VŠB – Technical University of Ostrava, Ostrava, Czech Republic

Abstract

The most important and the most problematic in-house sources of financing of metallurgical companies are profit and depreciations. In the event that the aggregate value of the economic result and depreciations goes over to negative values, then this kind of in-house financing ceases to increase Cash Flow of the company but, on the contrary, it will cause its reduction. It means that this type of financing is to some extent uncertain, particularly in times of crisis, when there are noticeable fluctuations in sales volumes, leading to a significant influence of the volume of production on the amount of profit. The article discusses the impact of production capacity utilization on metallurgical companies financing.

Keywords

metallurgical production; production capacity; financial resources; Cash Flow

Hrčak ID:

86786

URI

https://hrcak.srce.hr/86786

Publication date:

1.1.2013.

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