FINANCIAL PERFORMANCE ANALYSIS IN LISTED COMPANIES

Abstract

The financial crisis which caused numerous bankruptcies is phenomenon that can repeat itself in the ensuing period. One of the causes that generated the phenomenon was, along with the mortgage-back securities, the insufficient attention devoted to industrial production in general and to profit in particular. The literature in the field points to the fact that companies’ managers need to take into account the means of obtaining profit as well as liquidity and leverage. This is why in this paper we focus on the profitability of the oil and gas companies which have been affected by the financial crisis. Profit and loss account comprises two components: the operating and financial flows of an enterprise over a period of time, usually the financial year. We can evidence the results of a company based on the annual reports during the fiscal period such as financial position, performance and cash flow. The paper conducts a comparative analysis of performance between two companies operating in the energy industry, OMV Petrom SA and ROMGAZ SA.

Keywords

• assets, equity, funds, earnings, sales