Equity Management of the Tourism Sector Enterprises in the Slovak Republic

Abstract

Since its expansion at the beginning of the 20th century, tourism has shown its strength and importance. Tourism is a link between several economic sectors, thanks to its accumulated development potential. One of the main goals of business entities from the financial point of view is to achieve profit. The second is the maximize the value of the company, which can be affected by the achievement of profit. Companies operating in the field of tourism in the Slovak Republic are no exception. The chapter deals with the analysis of their equity, including its individual items with an emphasis on the going concern. Using Pearson’s correlation coefficient, we identify the relationship between equity and its individual items. The aim of the chapter is, based on indebtedness indicators, specifically total indebtedness and the degree of self-financing to assess the adequacy of own resources needed to finance its activities in this sector in the Slovak Republic, while marginally analyzing the impact of COVID-19 on the tourism sector in Slovakia.