ANALYSIS OF THE INFLUENCE OF FINANCIAL EQUILIBRIUM ON THE PROFITABILITY OF TOURISM COMPANIES

Abstract

The financing of the activity represents an important part of the company's financial policy. The working capital represents the resources that the company needs to finance its current production activity. Maintaining a balance between working capital and needs is a goal that supports the smooth running of the activity, which suggests that financial balance influences profitability, so the purpose of this paper is to verify this. In this sense, 20 tourism companies listed on the Bucharest Stock Exchange were selected, using a data set for the period 2008-2022, processed through regression analysis. The results obtained indicate a correlation between the net profit margin (dependent variable) and the working capital ratio (independent variable). Also, the dependent variable is explained to the extent of 46.4% by the independent variables.

Keywords

• financial balance
• profitability
• working capital
• tourism industry