engleski

Operations of the big hotel companies during economies crisis - empirical research in Croatia

Tourism is one of the most important economic activities in the Republic of Croatia. The share of tourism in gross domestic product is 17.2% which is significantly higher than in competitive tourist countries where tourism has less than 10% share in the gross domestic product. Croatian tourism has significantly raised its results starting in 2000 year. However, in 2008 year the world economy was affected by the economic crisis. The situation, in the which companies in all industries found themselves, demanded the swift reaction with an aim of diminishing the negative effects of the crisis. The specificity of the Croatian tourism is that, in a time of crisis, it showed a high resistance. Mentioned is confirmed by the growth rates which were higher than those in the countries in the competitive environment on the Mediterranean. For this reason, the aim of this paper is to investigate the operations of large hotel companies in Croatia during the economic crisis through the movement of liquidity and solvency ratios. Liquidity is the ability of companies to settle its obligations in the short term. Management or creditors such as banks and suppliers are primarily interested in liquidity of the companies. Effective liquidity management involves planning and controlling the current assets and current liabilities in such way that eliminates the risk of inability to meet short- term liabilities on the one hand, and avoids over- investment on the other side. Solvency of the companies, however, indicates the ability of a companies to settle its obligations in the long term. Solvency is analyzed through financial, capital structure of liabilities and items of assets. For the purpose of this paper a survey was conducted over five hotel companies in Croatia which are listed on the Zagreb Stock Exchange through analysis of their financial statements in the period between 2010 and 2014 year.

hotel companies ; financial statements ; liquidity ; solvency

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