Comparing Financial Performance of Slovak Excellent Companies
Comparing Financial Performance of Slovak Excellent Companies

Author(s): Lukáš Vartiak
Subject(s): National Economy, Business Economy / Management, Micro-Economics, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: Business Excellence; quality; financial performance; financial indicator;
Summary/Abstract: Every company tries to achieve financial prosperity and overall success which leads to an achievement of the Business Excellence status. In Slovakia, Business Excellence is being assessed annually in the National Quality Award (NQA). The EFQM Excellence Model serves as an assessment tool in the NQA. Based on the results of selfassessment, companies can be awarded as winners, finalists, performance improvers and participants. NQA’s winners gain the highest possible degree of recognition which empowers them to differentiate themselves from the competitors in the field of quality management and performance. The aim of the paper is to compare financial performance of the Slovak NQA winners within a specified time frame. To achieve the aim of the paper, financial performance of the Slovak NQA winners in the year before winning, in the year of winning and in the year after winning the Slovak NQA is being compared. These financial indicators were selected for a comparison of the Slovak NQA winners’ financial performance: sales revenue (T), earnings after taxes (EAT), return on assets (ROA), gross margin (GM) and total indebtedness (TI). A comparison is being performed with an assumption that achievement of the Business Excellence status improves financial performance of a company. Methods of analysis, comparison, selection and mathematics are being used. As a main finding may be considered that our assumption was not confirmed among all of the analyzed companies. There can be various reasons of non-improved financial performance of the Slovak NQA winners which obliges us to future research aimed at finding these reasons.

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