Economic Financial Indicators Affecting the Performance of Construction Companies
Economic Financial Indicators Affecting the Performance of Construction Companies

Author(s): Arjeta Hallunovi
Subject(s): Economy, National Economy, Business Economy / Management, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Albania; Construction Industry; Data Analyses; Horizontal Analyses; Financial Reports
Summary/Abstract: At any moment, companies are faced with choices. Making a decision is not something very easy, because there is always uncertainty. Decisions become even more difficult when the business climate is not at its best. The great difficulties in which the economy finds itself make it even more difficult to make a decision. In such a climate of uncertainty, the need to make economic-financial decisions is very great. There are precisely these decisions that make a company successful. In general, the decisions that an enterprise faces during the exercise of its activity are related to sources of financing, expenses and income, these decisions have as a logical basis the information extracted from the financial analysis. Financial indicators expressed in numerical values, generated by financial analysis, serve as guidelines for the actions taken by company managers, in order for them to realize their objectives for profit maximization and company growth. The purpose of this paper is to familiarize with the financial analysis and its importance for the decision-making of companies and the management of profits. This overview study will be concretized through the analysis of the financial reports of a construction company2. Through the horizontal analysis, based on the financial reports for two years (2018/2019), including the main items of the financial statements, it will be seen that these items have increased every year. Sales revenues have increased in total, looking at the latest statements. The net profit has increased, where this has come as a result of the continuous increase in sales by the company and the opening of new branches in the districts.

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