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Influence of Financial Liquidity on the Competitiveness of Defense Industry Enterprises

Author

Listed:
  • Joanna Antczak
  • Izabela Horzela
  • Aneta Nowakowska-Krystman

Abstract

Purpose: The aim of the article was to analyse the correlation between financial liquidity and the competitiveness of enterprises from defense industry enterprises. Design/Methodology/Approach: The solutions were developed on the basis of literature analysis, case study, document analysis. As part of the case study were used diagnostic and prognostic sheets, as well as the analysis of source documents. The analysis of financial liquidity was performed using the induction method, which includes examination of details, generalization in the form of conclusions, synthetic evaluation and diagnosis. The time scope of the research covered the period 2015-2018. Four defense companies in the world were selected for the purpose of the research. Findings: The analysis of four enterprises from the defense industry shows connection between the financial situation (measured by liquidity ratios) and the competitiveness of the surveyed companies. The most stable company, one of the leading defense in the world, is Northrop Grumman. In turn, United Aircraft is characterized by a large dispersion of results and negative values of cash flows from operational activities. The article is also an overview of competitiveness, showing the diversity in managing the resources of an economic unit, and indicates practical guidelines for the use of methods and interpretation of the financial liquidity ratios of enterprises. Practical Implications: The results of the research can be used by company managers, both from the defense industry and others, to create mechanisms that increase competitiveness. Originality/Value: The study is a new contribution to research into the competitiveness of defense companies. The aspects of the competitiveness of defense enterprises on the basis of liquidity ratios remained beyond the area of scientific interest.

Suggested Citation

  • Joanna Antczak & Izabela Horzela & Aneta Nowakowska-Krystman, 2021. "Influence of Financial Liquidity on the Competitiveness of Defense Industry Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 257-273.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:2:p:257-273
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    References listed on IDEAS

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    1. Thomas Hatzichronoglou, 1996. "Globalisation and Competitiveness: Relevant Indicators," OECD Science, Technology and Industry Working Papers 1996/5, OECD Publishing.
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    Cited by:

    1. Anna Wolak-Tuzimek & Joanna Duda & Katarzyna Sieradzka, 2021. "Sources of Competitive Advantage of Enterprises in Selected Sectors of the Polish Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 284-298.
    2. Leszek Borowiec & Marzena Kacprzak & Agnieszka Król, 2023. "Information Value of Individual and Consolidated Financial Statements for Indicative Liquidity Assessment of Polish Energy Groups in 2018–2021," Energies, MDPI, vol. 16(9), pages 1-16, April.
    3. Katarzyna Chudy-Laskowska & Sabina Rokita, 2024. "Profitability of Energy Sector Companies in Poland: Do Internal Factors Matter?," Energies, MDPI, vol. 17(20), pages 1-28, October.

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    More about this item

    Keywords

    Financial liquidity; competitiveness; defense industry; enterprise.;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform

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