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The Economic and Financial Health of Lithuanian Logistics Companies

Author

Listed:
  • Rita Bužinskienė

    (Faculty of Business and Technology, Šiauliai State Higher Education Institution, Aušros Ave. 40, LT-76241 Šiauliai, Lithuania)

  • Vera Gelashvili

    (Department of Business Economics, Faculty of Economics and Business Sciences, Rey Juan Carlos University, Paseo de los Artilleros s/n, 28032 Madrid, Spain)

Abstract

In recent decades, the importance of transport and logistics companies has increased considerably, especially for Lithuania, where this sector is on the rise and creating benefits for various users. Therefore, this study aims to analyse the economic–financial situation of transport and logistics companies operating in Lithuania, focusing mainly on their financial risk, probability of bankruptcy, and level of solvency. To achieve these results, 416 companies were analysed based on their data from 2022. The employed methodology included descriptive analysis, quartile ratio analysis, the use of Altman’s Z-score model to predict bankruptcy, and, finally, logistic regression analysis to answer the hypotheses. The results show that the companies analysed in this study were highly profitable, with a high level of solvency and liquidity that did not compromise their continuity in the market. These results were confirmed by the Z-score analysis. In addition, it was observed that the age and size of the companies did not affect their survival on the market. This study presents results that are of great interest for the academic literature, as well as for the management of logistics companies. The originality of the study lies in its relevance and timeliness, presenting robust results for different stakeholders, such as policymakers or new entrepreneurs, among others.

Suggested Citation

  • Rita Bužinskienė & Vera Gelashvili, 2024. "The Economic and Financial Health of Lithuanian Logistics Companies," Risks, MDPI, vol. 12(6), pages 1-19, June.
    • Handle: RePEc:gam:jrisks:v:12:y:2024:i:6:p:99-:d:1417750
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    References listed on IDEAS

    as
    1. Natasha Ristovska & Sasho Kozuharov & Vladimir Petkovski, 2017. "The Impact of Logistics Management Practices on Company’s Performance," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 245-252, January.
    2. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    3. Sevgi Sezer & Tezcan Abasiz, 2017. "The Impact Of Logistics Industry On Economic Growth: An Application In Oecd Countries," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 5(1), pages 11-23.
    4. Pedro Carmona Ibáñez & Julián Martínez Vargas & José Pozuelo Campillo, 2013. "Diagnóstico económico-financiero de la empresa cooperativa: (Un estudio comparado de los años 2004 y 2007) [Economic and financial diagnosis of cooperative enterprises: (A comparative study of the ," REVESCO: Revista de estudios cooperativos, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Escuela de Estudios Cooperativos, issue 110, pages 43-95.
    5. Agata Lozinskaia & Andreas Merikas & Anna Merika & Henry Penikas, 2017. "Determinants of the probability of default: the case of the internationally listed shipping corporations," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(7), pages 837-858, October.
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