To create the financial sustainability index of state-owned companies, 50 companies with the following features were selected: the assets under management more than 1 million MDL, equity more than 1 million MDL. The companies that have a strategic significance for the national infrastructure have been included in the sample by default. The financial sustainability index consists of 10 indicators, which assess the financial performance, the capacity to face the financial obligations in short and long-term, the liquidity and leverage ratios.
Hence, the index has been formed from the following indicators:
The information on which the index was developed has been collected from the financial statements of the selected companies for 2015-20167 years. On the other side, the colleagues from INEKO collected the same information about Slovak private and state-owned companies in order to set up a benchmark for comparison of Moldovan companies.
Read the entire article here - Assessment of financial sustainability of the state-owned companies
This material is part of the series of publications "Evaluating the financial sustainability of municipal and state –owned enterprises".
The article was developed within the initiative „Promoting transparency and financial sustainability of regional policies, state – owned enterprises and local authorities in Moldova", implemented by IDIS "Viitorul", in partnership with the Institute for Economic and Social Reforms in Slovakia (INEKO). The initiative is financially supported by the Official Development Assistance of the Slovak Republic (SlovakAid). It aims to improve the efficiency of the state administration, self-government and civil society in the area of creation and control of regional policies, administration of state-owned enterprises, and monitoring of budgets and information openness of municipalities.