Analytical view on performance evaluation of service enterprises
Analytical view on performance evaluation of service enterprises

Author(s): Beata Šofranková, Dana Kiseľáková, Jarmila Horvathova, Svetlana Maťková
Subject(s): Business Economy / Management, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: Financial indicator; Economic Value Added; performance;
Summary/Abstract: Recently, there have been several changes in performance measurement approaches as well as in the application of performance evaluation methods and tools. In the past, business performance was evaluated using a profit margin, later evaluated by profit maximization and various profitability indicators. Currently, the main indicator of performance and competitiveness measurement is the Economic Value Added indicator, which is an important benchmark for determining value added for owners. The aim of our paper is to find out and identify key performance indicators of service enterprises and their mutual influences by applying selected mathematical and statistical methods. To evaluate performance, 55 financial indicators have been selected, divided into 7 groups. Key performance indicators have been identified by selected mathematical and statistical tools to uncover the interrelationships and links between selected financial indicators and the Economic Value Added indicator, which is a modern tool for evaluating the performance and competitiveness of enterprises. The contribution of the paper is to identify the key determinants of the performance and competitiveness of service enterprises and to identify strengths and weaknesses in the area of financial performance assessment and competitiveness for the service sector.

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