Financial consequences linked with investments in current assets: Polish firms case Cover Image

Financial consequences linked with investments in current assets: Polish firms case
Financial consequences linked with investments in current assets: Polish firms case

Author(s): Grzegorz Michalski
Subject(s): Business Economy / Management, Economic policy, Financial Markets
Published by: Masarykova univerzita
Keywords: current assets; financial liquidity; risk management;
Summary/Abstract: Investments in financial liquidity of the firm are done thru investing money incurrent assets. The goal of the paper is to find if efficiency measure ROA is linked with current ratio, liquidity ratio and collection period. Paper presents a classification of financial consequences of managerial decisions in current assets investments level. There are two kinds of current assets investment influences: positive, linked with cash revenues stimulation and decreasing level of risk, and negative, linked with increasing cash expenses.