Enterprise Value Generators in the Building Industry

Abstract

Abstract.Value generators mark factors that influence the given enterprise´s success most. Thus, they refer to activities and abilities that increase profitability, decrease risk, and support the company´s growth. The aim of this contribution is to identify value generators in a building enterprise. The main presumption, however, is that the enterprise value will be measured by the EVA Equity indicator (Economic Value Added for the shareholders -owners). Data to be analysed come from the Albertina database. They include complete financial statements of building enterprises that operated on the market between 2006 and 2015. The data is organized into a table the EVA Equity in each enterprise is calculated per each year of its operation on the market. The table is subsequently imported into the Statistica software which searches for the extent to which the EVA Equity indicator is dependent on the individual items of financial statements. The result is a created adequate methodology and identification of value generators in building industries from 2006 to 2015 in the Czech Republic. The following variables are marked as the most significant: economic growth per current accounting period, equity, bank loans and bailouts, trade receivables, and current assets.

The Ideal Debt Ratio of an Agricultural Enterprise

“…Vochozka and Machová [43] determined the degree of dependency of the EVA Equity indicator on individual entries of the financial statement of a specific enterprise in the construction industry. The economic growth within the common accounting period, equity, bank loans and financial aids, claims from business transactions, and current assets were identified as the most important entries in financial statements.…”

Development trends in organizational and management structures

“…An equally important factor affecting management and organizational structures is efficient interaction in the internal and external environment because it may ensure the sustainable development of the enterprise (Kasych & Vochozka, 2017). In this connection, organizations need to use appropriate generators of value that can control and reduce risks, increase profitability, and support the growth of organizations (Vochozka & Machová, 2017;Belas et al, 2020b).…”

Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity

“…The interest in Asian countries has dominated in the past few decades, however, Orazalin, Mahmood and Narbaev [11] showed a clear absence of research and the application of significant indicators in developing economies. EVA is effectively the financial performance rate that is closest to reflecting the true economic profit of a business [12]. It can be used as a management system based on business values or within businesses to compare the performance of individual units [13].…”

“…Current liquidity = current assets current liabilities Current liquidity > XL 2 → r Finstab = 0.00% Current liquidity < XL 1 → r Finstab = 10.00% (12) It is recommended to apply the methodology, in accordance with the Ministry of Industry and Trade [72], when the determined values are XL 1 = 1 and XL 2 = 2.5.…”