<p><strong>The operation of state-owned/public enterprises through the prism of financial indicators 2015-2019</strong></p>
<p><span style="font-size: small;">Today (15.01.2021) the Center for Civil Communications (CCC) published the<a href="images/stories/fa2020en.pdf" target="_blank"> Financial analysis of the operation of state/public enterprises in 2015-2019</a> and the database that allows downloading the final accounts of enterprises. </span></p>
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<p><span style="font-style: normal; font-variant: normal;"><span style="color: #000000;">S<span style="font-style: normal; font-variant: normal;">ubject of the financial analysis was the 30 largest enterprises established by the state and the local self-government units. These are enterprises whose total revenues in 2019 amounted to MKD 44,992,939.558, or EUR 732 million. At the end of 2019 they employed a total of 22 140 employees. The analysis was conducted on the basis of five groups of financial indicators from the annual accounts of the enterprises for the period 2015-2019.<br /><span style="font-style: normal; font-variant: normal;">These are indicators of profitability, efficiency, financial stability, cost-efficiency and liquidity of the enterprises. <span style="font-style: normal; font-variant: normal;">The analysis detects the condition and the success in the operation of all 30 enterprises together and each of <span style="font-style: normal; font-variant: normal;">them separately. This is an extension of last year’s analysis, the purpose of which is to summarize in one place the <span style="font-style: normal; font-variant: normal;">information on the financial operations of enterprises established by the state and local self-government units. <span style="font-style: normal; font-variant: normal;">Part of the summary findings point to the following:</span></span></span></span></span></span></span></span></p>
<p><span style="font-style: normal; font-variant: normal;">• 30 largest enterprises established by the state and local self-government in the period 2019-2015 increased <span style="font-style: normal; font-variant: normal;">the generated total revenues by only 2%.<br /><span style="font-style: normal; font-variant: normal;">• The average rate of profitability in the analysed 5-year period reached modest 6%, and in 2019, the profitability <span style="font-style: normal; font-variant: normal;">has seen a certain improvement (6.5%). The assets owned by these enterprises with such a profit would be restored in 38 years, whereas the invested and earned capital would be returned in 32 years. In the private sector, <span style="font-style: normal; font-variant: normal;">the period of return on invested capital is usually 10 years.<br /><span style="font-style: normal; font-variant: normal;">• Collection of receivables of the analysed companies is a weak link in their operation as it is 253 days in the <span style="font-style: normal; font-variant: normal;">5-year period, i.e., 205 days in 2019. Such long collection deadlines are associated with occasional write-offs <span style="font-style: normal; font-variant: normal;">of receivables for financial reporting purposes.<br /><span style="font-style: normal; font-variant: normal;">• They pay their liabilities within even longer deadlines, in 484 days on average, i.e., 365 days in 2019. Usually in <span style="font-style: normal; font-variant: normal;">the business environment, companies with such long payment deadlines are avoided or, due to their payment <span style="font-style: normal; font-variant: normal;">deadlines, are offered significantly higher prices than the market prices.<br /><span style="font-style: normal; font-variant: normal;">• Creditworthiness shows that the total debts of the analysed enterprises are slightly higher than their capital and <span style="font-style: normal; font-variant: normal;">reserves, whereas the level of self-financing is in the safe zone (88% on average in 5 years, i.e. 91% in 2019).<br /><span style="font-style: normal; font-variant: normal;">• The analysed enterprises manage to achieve positive operation by fully covering their total expenses and generating revenue surplus of 4% (3% in 2019).<br /><span style="font-style: normal; font-variant: normal;">• The analysed enterprises have sufficient cash to cover their short-term liabilities.</span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></p>
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<p><span style="font-size: small;"><span style="color: #000000;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;">Individual analysis was also conducted for all enterprises. </span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></p>
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<p><span style="font-size: small;"><span style="color: #000000;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;"><span style="font-style: normal; font-variant: normal;">The research was conducted within the project <strong>"Integrity and Anti-corruption in the Business Sector"</strong>, funded by the European Union.</span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></p>
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