Original scientific paper
FINANCIAL ANALYSIS OF COMPANIES REGISTERED FOR PROMOTION AND MARKET RESEARCH
Vladimir Kovšca
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Suzana Keglević Kozjak
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Tanja Šestanj-Perić
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Abstract
According to the Financial Agency data, in 2017 there were 1,943 active companies in Croatia whose main activity is the promotion and market research, and they employed a total of 5,683 employees. National Classification of Activities (NACE Provisions 2007) classifies the mentioned activity in the section M 73 - Advertising and market research, and this section includes advertising agencies, media advertising companies and market research companies. The companies observed in this study are exclusively small or medium-sized enterprises. Since the latest report by the CEPOR SMEs and Entrepreneurship Policy Centre shows positive growth and development of small and medium-sized enterprises in the Republic of Croatia, the aim of this paper is to examine if this also applies for the companies in sector M 73. To achieve this aim, financial analysis of the entire sector M73 is carried out for the period 2013-2017. Based on the conducted financial analysis, the financial position and the success of the sector M 73 are precisely determined. The results of the research show that in the last five years a positive trend prevails in the sector M 73 by the number of enterprises, the number of employees and the realized revenues. Despite this, a number of problems have been identified in this sector that contribute to the development of financial instability. One of the problems is that despite the fact that companies have working capital their liquidity can be assessed as medium (neither good nor bad). Observed companies in average finance 70% of their assets by short-term loans, to receive payments it takes more than 100 days and the return on assets ranges from only 3.88% to 7.19%. The results obtained for the whole sector motivate us for further research on the level of individual companies because at that level there may be significant differences between companies, namely there might exist extremely good or extremely bad companies. Our analysis of the number of promotion agencies according to the number of employees and total revenues showed exactly that.
Keywords
Sector M73; marketing and market research; financial reports; financial analysis
Hrčak ID:
234530
URI
Publication date:
1.3.2019.
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