SHS Web Conf.
Volume 160, 2023Innovative Economic Symposium 2022 – Opportunities in Post-Covid Era (IES2022)
|Number of page(s)||15|
|Section||Opportunities in Post-Covid Era|
|Published online||23 March 2023|
What asset structure generates the highest possible profit for a manufacturing enterprise?
Institute of Technology and Business in České Budějovice, School of Expertness and Valuation, Okruzni 517/10, 37001 Ceske Budejovice, Czech Republic
* Corresponding author: email@example.com
The objective of the paper is to determine the most suitable operational redundant assets and asset structure for a manufacturing enterprise. They are determined by the financial analysis of ratios, vertical and horizontal analysis, and the calculation of Altman Z-score. The recommended sizes of activity ratios are: the turnover of total assets should be equal to the value of 1, the time of inventory turnover should be as short as possible, the turnover of inventories should be as large as possible, the time of debt collection should be the shortest possible, the due date of fulfilling obligations should be equal to 2 or higher. The ratios are compared with the sector and the position of enterprise is assessed. The limit of the research is the incapability to determine the best asset structure, but only the best possible one, on the basis of comparing with the sector that sets the bar in a specific field. Every enterprise aspiring to be competitive should meet the sector standards, at least.
Key words: asset structure / financial analysis / activity ratio / profitability ratio / liquidity ratio / comparison with the sector
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
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