Nonprobability sampling

Debt ratio

Working capital

Demography

Financial ratio

Current asset

Financial capital

Microeconomics

Return on capital employed

Economics

Current ratio

Debt-to-capital ratio

Return on equity

Business

Asset turnover

Equity ratio

Financial analysis

Return on assets

Debt-to-equity ratio

Profitability index

Population

Sociology

Debt

Inventory turnover

Capital formation

Finance

Profit (economics)

Energies

Industry 4.0 and related automation and digitization have a significant impact on competition between companies. They have to deal with the lack of financial resources to apply digital solutions in their businesses. In Slovakia, Industry 4.0 plays an important role, especially in the mechanical engineering industry (MEI). This paper aims to identify the groups of financial ratios that can be used to measure the financial performance of the companies operating in the Slovak MEI. From the whole MEI, we selected the 236 largest non-financial corporations whose ranking we obtained according to the amount of generated revenues in 2017. Using factor analysis, from eleven traditional financial ratios, we extracted four independent factors that measure liquidity (equity to liabilities ratio, quick ratio, debt ratio, net working capital to assets ratio, current ratio), profitability (return on sales, return on investments), indebtedness (financial leverage, debt to equity ratio), and activity (assets turnover, current assets turnover) of the company. Our analysis is an essential prerequisite for developing a realistic financial plan for companies operating in the MEI, especially when considering investments in new technologies related to Industry 4.0.

Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity