Financial Analysis of Major Retail Chains within a Turbulent Economic Environment

Abstract

The Greek economic activity has been declined dramatically in recent years as many sectors of the economy that cannot cope with the new state brought about by the economic crisis. An economic crisis can be described as the phenomenon when an economy is characterized by a continuous and noticeable decline in its economic activity. As an economic activity, we are referring to all the macroeconomic dimensions of the economy, such as employment, the national product, prices, investments, etc. The downturn in the supermarket sector, which is attributed to the country’s financial situation, has led to a decline in the household disposable income. The present study was carried out at the time of the economic crisis, concerning a productive sector of the Greek economy, where millions of euros are exchanged hands. The objective of the study was to explore the impacts of the economic crisis on the sector by using a series of financial indicators. The results point to significant effects on the efficiency and earnings of the major actors of the sector.

Directions for Management in Small and Medium Hotels and Restaurants Companies

“…The same study also states that ratios provide more information when compared to the historical values for the same company, or sector. Ratios that focus the study of the short-term financial information include net working capital (Bhattacharyya and Jagadeesh, 2018;Lakatos, 2020), current liquidity ratio (Bordeianu and Radu, 2020;Nikolaos et al, 2020), quick liquidity ratio (Atrill and McLaney, 2019;Bordeianu and Radu, 2020;Nikolaos et al, 2020), and cash liquidity ratio (Bordeianu and Radu, 2020;Nikolaos et al, 2020), among others (Table 1). Networking capital management is an important way in achieving profitability for micro, small and medium enterprises (Bhattacharyya and Jagadeesh, 2018).…”

“…Also, the main Portuguese business structure is of small and medium companies (SMCs), and these sectors are no exception. One of the characteristics of these companies is the fact that the operational management is mostly based on the analysis of liquidity (Atrill and McLaney, 2019;Bordeianu and Radu, 2020;Nikolaos et al, 2020), instead of the accounting results. The main objective of this article is to validate, or not, the relationship between liquidity and economic profitability (Atrill and McLaney, 2019;Bordeianu and Radu, 2020) in each of these sectors, in SMCs.…”

Impact Factors on Portuguese Hotels’ Liquidity

“…To evaluate a company's financial position and performance, as well as their proper analysis to obtain useful information, its financial statements are used through the so-called financial ratios (Nikolaos et al 2020). A financial ratio uses those financial statements to obtain an arithmetic result of the division of one financial asset into another and uses it to express the relevance of the various financial variables (Nikolaos et al 2020).…”

“…It is hereby implied that the current assets, after exceeding the current liabilities, will be sufficiently liquid for their repayment. (Nikolaos et al 2020;Bordeianu and Radu 2020) Quick Ratio Current Assets − Inventories Current Liabilities This ratio reflects the company's ability to honor its short-term debts with receivable accounts, bank accounts, and cash. Cash, as well as receivable accounts, are more easily available to settle debts than any type of inventory.…”

“…It reflects the company's ability to pay off current liabilities, based on cash and equivalents availability only. (Nikolaos et al 2020;Bordeianu and Radu 2020) The second group, capital structure ratios, is composed of ratios that evaluate the hotels' ability to face long-term obligations. The most used ratios are presented in Table 2.…”