Financial analysis of transportation and storage sector

Abstract

Transportation and storage sector (section H according to CZ-NACE classification of economic activities) belongs among important sectors of the Czech Republic’s national economy. This sector includes passenger and freight transport (both regular and irregular, by rail, by pipeline, by road and by air and by waterways) and related activities (for instance activities executed by terminals, parking and warehousing facilities, transit points). Rental of transport equipment with a driver or an operator as well as postal and courier services also belong to this sector. The paper is focused on the development of this sector in the Czech Republic. An external financial analysis of this sector is carried out in this paper. This analysis is based on the Ministry of Industry and Trade’s data. Basic methods of financial analysis, horizontal analysis and vertical analysis of financial statements and financial ratios analysis, are applied. Financial analysis evaluates the development of selected ratios during the period from 2007 to 2016.