波兰中小企业资本流动性.doc

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MD Magdalena Burzykowska
Department of Business Analysis and Strategy
University of Lodz, Poland

The financial liquidity of small and medium enterprises in Poland
Abstract
Small and medium enterprises are very important in every market economy. Its create not only GDP (Gross Domestic Product) but its create new source of employments. Existing SMEs depend on a lot of outside and inside factors. Among different factors which create activity enterprises is financial liquidity. It shows to ability enterprise to payment short term liabilities.
The main purpose of this elaboration is study of financial liquidity small and medium polish enterprises. The main hypothesis of report:
1. There is in small and medium polish enterprises of productive sector aggressive strategy management of the current capital and characterize generally low values of financial liquidity ratios of the companies.
2. The main reason of low acid test ratio of SMEs are not regulated on time short- term receivables by customers.
Key words : financial liquidity, current ratio, acid test ratio, cash ratio, rotation current liabilities, rotation receivable, net working capital,

题目：波兰中小企业的资本流动性
摘要：中小企业在每个市场经济体中都是非常重要的。中小企业不仅增加了国民生产总值（GDP），而且还创造了新的就业机会。中小企业的生存取决于很多外部与内部的因素。资本流动性就是这些影响因素之一。资金流动性显示了企业偿付短期负债的能力。
这篇论文的主要目的是研究波兰中小企业资本流动性。本文的主要假设有：
1.波兰的中小企业拥有高生产力的部门、积极进取的战略、对现有资本的管理并且有普遍的低效的资本流动性。
2.中小企业中酸性测试的低比率的主要原因是没有规范的按时偿还短期应收账款。

关键词：资本流动，流动比率，酸性测试比率，现金比率，活期流动负债，应收账款，净资产，积极进取的流动资本管理战略

1. Introduction

Function of each market economy is focused on small and medium enterprises (SMEs). It’s the most dynamic, continuously changing group of companies, making the medium element in the economy structure, have decided influence on development of local enterprises and increased level of people personal earnings. SMEs are:
- source of new employments,
- create important part of GDP,
- fulfill important role of innovation processes,
- purchase, exploit and modernize old machines park, what decrease risk of investment and long term costs of entrance the market, etc.
SMEs have possibility of using European Union funds, create this way the policy of finance their own enterprises and policy of financial liquidity.
The future activity of enterprises depends on correct financial liquidity, but they are also determined by realization of marketing strategies and possibilities of increase turnovers and cash flows, which do not cause loose the balance between value of current assets and short liabilities. To appear off - balance between value of current assets and value of current liabilities cause or over-liquidity or financial illiquidity.
Worldwide standard ratios of financial liquidity are:
1. Current ratio - shows as many times current assets cover current liabilities, for which current assets are protection. Average norm for this ratio is between 1,2 – 2,0 range.
2. Acid test ratio – shows level of cover current liabilities by liquidity assets, that is total of receivables, marketable securities intended to turnover and cash and cash at bank. The norm of this ratio should oscillate 1,0-1,2 and is considered as a proper.
3. Cash ratio - shows what level of current liabilities can be immediately regulated by the most liquidity assets, its mean marketable securities intended to turnover and liquid funds. The norm of this ratio should oscillate approximately - 0,2.
Surplus or deficit elements of current assets and current liabilities can be singed as a necessary of change those elements. Scale of this effect can be on the proper level or close to up or down limit or cross the acceptable levels/limits. Usually there is no fixed rules defined as optimal or critical level of ratios. Each company should defined limits, which achievement or crossed should be the reason of research those effect.
Low ratios of financial liquidity recognize in economics literature as a minimum for enterprises which active in some branches are a sing of threaten financial liquidity, while very high ratios, over needs of activity of company can have disadvantage influence for profitability of company.
The scale of ratios providing essential information not only about weaknesses and strong sides of company but mostly about opportunities and threats, flowing from the surroundings of enterprise. Ratios shows possibility of regulation existing liabilities of company and if there are any problems with collection of the receivables and if the company have good manage of stocks and if assets/property are used in proper way and if the structure of fund is suitable and if the financial efficiency have enough high level. Company can build strong position by negotiate advantageous terms of refund/repayment current liabilities, efficiency of execution current receivables and holding liquid funds on the level which secure paying liabilities in term. Opposite situation makes complication efficient managing enterprise, what is weakness of the organization.

2. The empirical verification of hypothesis about existing aggressive strategy management of the current capital in the small and medium enterprises sector in Poland.

Aggressive strategy of management of the current capital is characteristic by low values of financial liquidities ratios in the companies, what’s mean that those organizations are financed mostly by current liabilities. Relatively lower values of financial liquidity ratios means that own current assets is relatively lower source of repayment current liabilities. Contained in table 1. values of financial liquidity ratios of polish private SMEs productive sector, for period of 1998 – 2003 indicate, that values of all third financial liquidity ratios have lower volumes than standard for industrial sector. Volumes of those ratios generally didn’t change indeed ( diagram 1). This situation can indicate, that there are more serious engaged long terms liabilities in financing net working capital. The analyze net working capital ratio of long-term liability to show (graph 2) in group of research enterprises we have got to increase value this ratio.

Diagram 1 The financial liquidity ratios
private sector SMEs – productive activity in 1998 – 2003

Source: Own study on the basic of date contained in statistical reports of Central Statistical Officer for 1998 –
2003
This situation is proving positive financial standing researched enterprises, which trying to realized advantages results from using financial leverage.

Diagram 2 The ratio of financing net working capital by long – term liabilities
private sector SMEs – productive activity in 1998 – 2003
Source: Own study on the basic of date contained in statistical reports of Central Statistical Officer for 1998
– 2003

The best situation financing net working capital by long – term liabilities was in 2002 year, because of long – term liabilities near 19 times was over value of net working capital. We are able to statement that exist a hypothesis about too aggressive strategy of management current capital in private sector SMEs in Poland checked up.

3. The empirical verification of hypothesis to state main cause of low financial liquidity small and medium enterprises in Poland are not regulated on time receivable from receiver of commodities

The analysis acid test ratio (SLqR) in sector productive enterprises between the period of 1998 - 2003 showed that ratio was lower in compare to level which was looking on norm (1,0 – 1,2). In 1998 year for a per PLN current liabilities was 0,69 PLN liquidity assets (total sum receivable, marketable security designed to turnover and liquid founds). In 1999 – 2002 years acid test ratio was forming between 0,69 to 0,76.
The level cash ratio (MLqR) in sector productive enterprises between the period of 1998 - 2003 was too low enough in compare to accepted norms (0,2). The level cash ratio (MLqR) in sector productive enterprises in 1998 year was 0,13, on the next year included with 2002 year it was forming on similarly level. In 2003 year for a per PLN current liabilities was 0,17 PLN the most liquidity assets (marketable security designed to turnover and liquid founds). The occurring difference between value acid test ratio and cash ratio was rather stabilization volume and make in particular years: 0,56; 0,56; 0,58; 0,56; 0,55 and 0,59. This values to show evidence that receivable which consist of for a per PLN current liabilities didn’t change in researched period. This situation is proving stabilization economy of receivable and credit of customers by productive SMEs in Poland. The presented hypothesis saying that main cause of low financial liquidity small and medium enterprises in Poland are not regulated on time receivable from receiver of commodities is not accepting.
The confirmation this conclusion can be also opinion about sufficiency rotation receivable and rotation current liabilities SMEs in Poland. Average number of days payment receivable to enterprise was in 1998 - 2003 over 70 days, the average rotation repayment current liabilities was 130 over ( table 2).

Table 2 The rotation of current receivable in days and current liabilities in
days private sector SMEs – productive activity - period 1998 – 2003
Years
TOAR TOAR – ratio of rotation receivable in days

TOCl TOCl – ratio of rotation current liabilities in days

Number of days outside financing sales in days
Daily sales in mln. PLN
Value of sales in mln. PLN financing current liabilities
1998
71
134
63
303 248
19 104 618
1999
78
146
68
343 396
23 350 955
2000
77
138
61
390 038
23 792 342
2001
65
120
55
446 706
24 568 830
2002
70
135
65
441 333
28 686 671
2003
63
114
51
567 877
28 961 737
Source: Own study on the basic of date contained in statistical reports of Central Statistical Officer for 1998 –
2003

The analysis rotation receivable and current liabilities to confirm that in researched period in sector small and medium enterprises we are able to see almost stabilization economy of receivable and current liabilities. It means that SMEs which fall under to researched sector could realized aggressive strategy and simultaneously stabilized management current capital. In fact such situation don’t confirm authenticity hypothesis that the main cause of low cash financial liquidity small and medium enterprises are not regulated on time receivable from receiver of commodities is not accepting.
The analysis rotation current liabilities in period 1998 - 2003 makes average over 130 days to confirm that productive enterprises used to liabilities in the face of deliverer as important source of financing human activity. It lets see that in researched enterprises there were successive growth of level to support sales outside current liabilities (table 2) and on current supplement financial source and to continue running a business ( diagram 3).

Diagram 3 The financing sales in mln. PLN SMEs
productive by current liabilities in period of 1998 – 2003

Source: Own study on the basic of date contained in statistical reports of Central Statistical Officer for 1998 –
2003

Diagram 3 present that in 1998 year through 63 days productive enterprises financed human activity trade credit. During these days value of sales was financed current liabilities and makes 19 104 618 PLN mln.. The year 2003 was a period in which SMEs the shortest used to commercial credit but only through 51 days. The value of sales was covered current liabilities and increased in researched period ( 2003 year) by 9 857 119 PLN mln., e.g by 51,6% beside 1998 year.
This kind of situation shows much more possibilities using by enterprises researched sector capital which comes from e.g from European Union funds.

Conclusions
The performed empirical researches let statement that in small and medium enterprises in Poland in period of 1998 - 2003 dominated aggressive strategy of management current capital. SMEs have tried to affirm such least share of income assets – cash, its minimized size stocks and selling commodities for buyers who haven’t created excessive distant date of payment for bought commodities. SMEs in Poland in significant way were financing their human activity current liabilities. The enterprises has created successfully economics conditions to realization aggressive strategy of management current capital.