Assessing financial stability through debt indicators in the Slovak engineering sector
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Dátum
2025
Autori
Názov časopisu
ISSN časopisu
Názov zväzku
Vydavateľ
Žilinská univerzita
ISBN
ISSN
1337-0839
2585-7258
2585-7258
Abstrakt
Research background: In the context of increasing economic volatility and competitive pressure, the financial stability of industrial enterprises has become a critical area of analysis. The mechanical engineering sector, as a capital-intensive industry, is particularly sensitive to the structure and level of indebtedness. Financial analysis, especially debt analysis, plays a central role in identifying the financial health of enterprises. Appropriate capital structure enhances long-term sustainability, while excessive reliance on external financing may increase insolvency risk. The Slovak mechanical engineering sector, although economically significant, remains underexamined in this context.
Purpose of the article: This study aims to assess the financial stability of enterprises in the Slovak mechanical engineering sector by analyzing indebtedness indicators and identifying differences based on company size and legal form. It further seeks to evaluate compliance with selected financial principles such as the golden balance and parity rules.
Methods: The research is based on secondary data obtained from the Moody’s database for the period 2019–2023, covering enterprises under NACE section C25, C28, C29, C30. Descriptive statistics and non-parametric methods, specifically the Kruskal–Wallis test, were used to examine the influence of size and legal form on six key debt indicators: total indebtedness, credit indebtedness, debt-to-equity ratio, interest coverage, financial leverage, and insolvency.
Findings & Value added: The average total debt remained below the 70% threshold, indicating moderate indebtedness. Statistically significant differences were found in four out of six indicators depending on company size, while legal form influenced only credit debt. The sector exhibited consistent undercapitalization and partial non-compliance with the golden balance rule, raising concerns about long-term financial sustainability. This article contributes to the existing literature by providing sector-specific evidence on indebtedness in the Slovak engineering industry. It offers practical recommendations for improving financial management practices, especially in terms of capital structure optimization, risk mitigation, and strategic planning. The findings are relevant for financial analysts, company managers, and policymakers focused on industrial development and economic resilience.
Popis
In: Ekonomicko-manažérske spektrum (EMS) = Economic and Managerial Spectrum : recenzovaný vedecký časopis Žilinskej univerzity. Žilina : Žilinská univerzita, 2025. ISSN 1337-0839. Roč. 19, č. 1 (2025), s. 129-141.
Kľúčové slová
finančná analýza, financial analysis, analýza zadlženosti, strojársky priemysel, engineering industry, kapitálová štruktúra, capital structure, finančná stabilita, financial stability
Výstup z projektu
VEGA 1/0494/24 Metamorfózy a kauzality zadlženosti, likvidity a solventnosti podnikov v kontexte globálneho environmentu
Citácia
Práva a licenčné podmienky
CC BY Creative Commons Attribution 4.0. International
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess