THE EVALUATION OF THE FINANCIAL POSITION ON THE BALANCE
SHEET IN THE FURNITURE INDUSTRY

Teodor Hada, „1 Decembrie 1918” University of Alba Iulia, Romania
Radu Mărginean, „1 Decembrie 1918” University of Alba Iulia, Romania

ABSTRACT: The financial ratios provide in the economic and financial analysis very important
synthesis information for analyzing a company, especially with regard to the financial position
through the Balance Sheet analysis and to the performance in the multitude of existing issues,
through the Profit and Loss Account analysis. In the context of the significant geo-strategic
challenges of the XXI century, still marked by the imprint of the global financial crisis, the
financial analysis can be a very useful tool in the complex process of making management
decisions. The financial position of the company fairly represents the background of the entity, in
terms of financial stability and less in terms of economic and financial performance. In this
study, based on real financial data extracted from a major company from the furniture industry
in Romania, we performed a dynamic analysis of a complex system of financial ratios, which can
be calculated from the Balance Sheet. The paper is useful both for theoreticians and for
practitioners, because the results position the company in the complexity of industry parameters,
under the patrimonial structure of assets and liabilities and in terms of financial solvability.

Keywords: Balance Sheet analysis, financial position, financial ratios, the furniture industry.

JEL Codes: M41, G01.