Financial Liquidity Management During Crisis

ABSTRACT

Purpose: The aim of the article is to verify a hypothesis stating that financial security of companies has been significantly violated in the scope of economic crisis caused by COVID19 pandemics. It has been assumed that traditional indicators of financial liquidity have declined and establishing the scale of the phenomenon constitutes a scientific problem. Design/Methodology/Approach: The research has been conducted as exemplified by a given sector consumer goods and retail trade on the basis of data adapted from EMIS database. The research has regarded years 2018-2021. Statistical characteristics of two features have been used current ratio indicator and quick ratio indicator, determining the location, spread, asymmetry and flattening characteristics. The analysis constructed in such a multidimension way was to enable a proper verification of the hypothesis stated. Findings: The results of the research has not verified the research hypothesis positively the companies of a given sector had not compounded, and even improved their financial security measured with the use of traditional liquidity indicators. Practical implications The conducted research regarding the liquidity management in companies in a extraordinary time od crisis emphasizes the multifaceted nature and complexity of issues connected with financial security;simultaneously discussing the statement that the entrepreneurs' concern over the extending period of uncertainty, lead them to a certain mobilization to secure from lack of liquidity and forced more awareness in the topic of liquidity. Originality/value In the process of data analysis certain characteristic features were observed the average indicators in the sector are much higher than middle indicators which indicates the need to have a closer look at average data. In a researched sector most of the enterprises does not achieve the results suggested for liquidity indicators.