Financial and economic analysis of gazelle firms in Central Catalonia

Petra A. Nylund, Núria Arimany Serrat, Xavier Ferràs Hernández, Montse Ferrés Freixanet, Anna Sabata Aliberch

Abstract


Purpose: The present study reflects the financial and economic analysis of gazelle firms in Central Catalonia. Gazelle firms are considered as drivers of the economy of a territory. We are therefore interested in examining the financial health of these firms during the analyzed period. The study classifies these companies and presents the main economic and financial indicators in order to diagnose the health of these companies during the period 2008-2012. We conduct a short- and long-term financial analysis, an analysis of the results, and an analysis of changes in equity and cash flows of these gazelle firms.

Design/methodology/approach: We use data of the financial statements of these firms during the period 2008-2012 from the SABI database. In particular, the sample contains industrial enterprises in the subprovinces of Central Catalonia which have a minimum of 5 employees, have had a 6% sales growth in recent years, and have a minimum financial return of 5%. We conduct a financial and economic analysis with the appropriate descriptive statistics and regression analysis, resulting in findings and conclusions.

Findings: The study indicates that the gazelle firms enjoyed good economic and financial health during the examined period. A reduced number of firms stood for most of the sales. These are firms with a balanced growth, since they have an efficient management of assets, prudent financial management (except for companies with few employees) and good cost management. The firms are solvent with a debt that is acceptable but of poor quality. They present an upward trend regarding return on assets, with a more moderate increase in equity.

Research limitations/implications: It would be interesting to extend the sample to other subprovinces and to use current data to confirm the changing trends identified in the economic and financial analysis.

Practical implications: The findings permit an assessment of the positioning of these firms in Catalonia during recent years, in order to make appropriate economic decisions.

Social implications: The results allow us to highlight situations that firms can improve in order to maintain their good positioning in the market.

Originality / value: For these companies, we provide financial and economic information regarding firm health for assuming future challenges and maintaining their current positioning.


Keywords


short-term financial analysis, long-term financial analysis, economic analysis, equity analysis, cash-flow analysis.

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DOI: http://dx.doi.org/10.3926/ic.541


Licencia de Creative Commons 

This work is licensed under a Creative Commons Attribution 4.0 International License

Intangible Capital, 2004-2020

Online ISSN: 1697-9818; Print ISSN: 2014-3214; DL: B-33375-2004

Publisher: OmniaScience