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Does the Size of the Business Still Matter, or Is Profitability under New Management, by Order of the COVID-19?

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  • Roman Blazek

    (Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Pavol Durana

    (Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Jakub Michulek

    (Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Kristina Blazekova

    (Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

Abstract

Businesses should come up with a strategy, plans, and goals so that their total assets can make a profit during the transformation process. Utilizing various features of a property can generate this income. This comparison provides evidence of profitability. During the global economic downturn, a number of businesses encountered issues that caused their payment situations and profitability to deteriorate. The goal of this article is to ascertain whether particular profitability indicators also revealed the pandemic-related global crisis, particularly in the Visegrad Group countries. This analysis was conducted based on categories of business size. Specifically, 8671 enterprises were analyzed. The evaluation of indicators revealed whether there was a significant change in a negative direction, a significant change in a positive direction, or no significant change. It was possible to make a clear diagram of the companies that took part in the study and to figure out the median values in order to compare the results of the chosen profitability indicators. Correspondence analysis was conducted so that conclusions could be more accurate. According to the findings of this study, indicators of ROA, ROE, and ROS did not change significantly across enterprise size categories in the years preceding, during, and after the pandemic. Since the government regulations of the V4 countries had a significant impact on these businesses, the change was most obvious in the case of small businesses within the ROS indicator. The added value of the article is derived from its analysis of selected profitability indicators in the largest group of Central European nations and its relevance.

Suggested Citation

  • Roman Blazek & Pavol Durana & Jakub Michulek & Kristina Blazekova, 2023. "Does the Size of the Business Still Matter, or Is Profitability under New Management, by Order of the COVID-19?," JRFM, MDPI, vol. 16(4), pages 1-28, March.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:4:p:219-:d:1112987
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    References listed on IDEAS

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    1. Maria Kovacova & Tomas Kliestik & Katarina Valaskova & Pavol Durana & Zuzana Juhaszova, 2019. "Systematic review of variables applied in bankruptcy prediction models of Visegrad group countries," Oeconomia Copernicana, Institute of Economic Research, vol. 10(4), pages 743-772, December.
    2. Katarina Valaskova & Tomas Kliestik & Lucia Svabova & Peter Adamko, 2018. "Financial Risk Measurement and Prediction Modelling for Sustainable Development of Business Entities Using Regression Analysis," Sustainability, MDPI, vol. 10(7), pages 1-15, June.
    3. Karmi Visser & Gerbus Swart & Joggie Pretorius & Lin-Marie Esterhuyzen & Tanja Verster & Erika Fourie, 2022. "Customer comfort limit utilisation: Management tool informing credit limit-setting strategy decisions to improve profitability," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2056362-205, December.
    4. Houshang Habibniya & Suzan Dsouza & Mustafa Raza Rabbani & Nishad Nawaz & Rezart Demiraj, 2022. "Impact of Capital Structure on Profitability: Panel Data Evidence of the Telecom Industry in the United States," Risks, MDPI, vol. 10(8), pages 1-19, August.
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    Cited by:

    1. Martin Bugaj & Pavol Durana & Roman Blazek & Jakub Horak, 2023. "Industry 4.0: Marvels in Profitability in the Transport Sector," Mathematics, MDPI, vol. 11(17), pages 1-23, August.
    2. Jakub Michulek & Lubica Gajanova & Anna Krizanova & Roman Blazek, 2024. "Why Do Companies Cook the Books? Empirical Study of the Motives of Creative Accounting of Slovak Companies," Administrative Sciences, MDPI, vol. 14(7), pages 1-16, July.

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