Author(s): Sylvia Jencova, Petra Vasanicova & Marta Lukacova
At present, there is an increasing emphasis on the use of innovative statistical methods in financial management, specifically in the financial and economic analysis of companies in various sectors. The aim of the paper is to identify the groups of financial ratios that can be used to measure the financial performance of the enterprises operating in the Slovak agriculture sector. The statistical analysis is performed by applying the Principal Component Analysis (PCA) and Factor Analysis (FA). Financial indicators were compiled from absolute indicators obtained from the Register of Financial Statements of the Slovak Republic, while the research sample consisted of economic entities within NACE Rev. 2 Class 01.11-Growing of cereals (except rice), leguminous crops and oil seeds. The analysis included 7 financial ratios: total assets turnover (in days), inventory turnover (in days), accounts receivables turnover ratio (in days), accounts payable turnover ratio (in days), return on assets, return on equity, and return on sales. Results show 3 common factors: factor of profitability, factor of receivables and payables, and factor of activity. If the companies operating in the examined sector focus on these factors, they can improve their competitive position.