Assessment of the Financial Condition of a Food Company in 2017-2021
Purpose: The purpose of this article is to present the concept of financial and ratio analysis and to present the financial situation of a food company for 2017-2021, taking into account the impact of the COVID-19 pandemic on the company. Within the scope of the main objective, a preliminary and ratio analysis of the financial statements of the company was conducted. Design/Methodology/Approach: The article was written using the following methods: literature criticism, data analysis, including financial analysis, and conclusion. Particular attention was paid to the level of financial liquidity, profitability and debt of the examined company. Findings: Based on the analyses carried out, it was found that the level of financial liquidity of the analysed company was below the safe range of 1.5 to 2.0 (Nowak, 2002, Bień, 2018). The immediate liquidity ratio was at a satisfactory level, proving that there were no problems with the timely payment of liabilities. In addition, it was shown that the company's overall financial situation was stable, as its financial ratios in the analysed years were profitable and with a growing trend. Practical implications: The presented analysis shows that despite the consequences of the COVID-19 pandemic, the researched company was operating very well and the level of liquidity depends to a large extent on future sales. Originality/value: This article presents an analysis of a company in the food industry. The conducted analyses showed that the financial situation of the company is very good, and thus further, dynamic development of the company is possible.