The Competition between London Companies Regarding Their Financial Performance
Journal Title: Journal of Competitiveness - Year 2016, Vol 8, Issue 2
Abstract
There is a high level of competition between companies and the final result is often measured by their financial performance. The main purpose of this study is to evaluate the financial performance of a sample of companies from London. Statistical analysis is performed of 293 companies randomly selected from the population of firms resident in London, the economic indicators being registered for 2014. The main results indicated that most of the variation in financial performance is explained by the book-to-market ratio and cash-to-assets ratio. On the other hand, financial performance is also explained by cash flow and leverage. Most of the firms that were placed in the same group had a successful financial performance in 2014. Few companies located in the other cluster encountered some difficulties regarding cash flow and sales. This situation could be explained by the difficulties of facing the economic crisis. Thus the financial performance evaluation is useful in improving a firm’s financial indicators in order to achieve a higher profit. The diagnosis will help managers in taking the most suitable decisions to solve the financial problems by selecting the best strategies.
Authors and Affiliations
Mihaela Simionescu
Keywords
Related Articles
- EP ID EP138769
- DOI 10.7441/joc.2016.02.01
- Views 149
- Downloads 0
The Role of Customers’ Involvement in Value Co-creation Behaviour is Value Co-creation the Source of Competitive Advantage?
According to service dominant logic (SDL), customers are always active participants and collaborative partners in exchanges; therefore we should focus on the elements of consumer behaviour that are connected with the val...
Human Resources Key Performance Indicators
The article brings out a proposed strategy map and respective key performance indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial g...
THE ROLE OF BIOFUELS IN FOOD COMMODITY PRICES VOLATILITY AND LAND USE
The goal of this study is to investigate the cause of a growing food price volatility. We analyse whether food price volatility is mainly induced by transfer of the oil price shock or if it is the consequence of a rising...
Segmenting Medical Market Based on Banking Expectations: Evidence from Iran
This research aims to identify banking expectations of the medical sector as one of the highincome sectors as a basis for segmenting the market. Mixed method (qual ► QUAN) design is used in this research. In qualitative...
Impact of Organizational Culture on Human Resource Practices: A Study of Selected Nigerian Private Universities
This paper shows results of the impact of organizational culture on human resource practices in some selected Nigerian private universities. The statistical analysis was based on two hundred and thirty-seven respondents...