Determinants of the ability of SMEs in Bulgaria to cover their current liabilities with the cash flow from their operating activities
Abstract
The short-term survival of companies depends directly on their ability to meet their current liabilities. The purpose of the article is to investigate which factors have a significant impact on the ability of companies to cover their current liabilities with the cash flow from their operating activities. The survey is based on data on 100 small and medium-sized non-financial enterprises from different sectors of the economy for the period 2014-2016. The results of the multiple regression analysis show a statistically significant positive impact on the ratio cash flow from operating activities/current liabilities of the following factors: net working capital/total assets; ROA; equity/total debt; percentage of change in receivables, and a negative impact of the factors: short-term assets/total assets and number of employees in the company.
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References
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