Evaluating Financial Health and Stability in the Energy Industry: Analyzing Key Indicators in Times of Crisis

Research background: In terms of evaluating the financial health and stability of the entire industry, the financial and economic analysis of individual companies is among the most critical. It is a composite of numerous fragmentary components that collectively convey information regarding individual activities. Purpose of the article: The energy industry is assessed from the perspectives of profitability, debt coverage, equity, and efficient asset utilization through the use of individual indicators to determine the changes and impacts of recent crisis. The purpose of this paper is to assess the extent to which the financial health and stability of the selected industry have been impacted by a diverse array of economic factors. Methods: The subsequent section of the paper is dedicated to the examination of individual relative financial indicators within the designated sector of the national economy. The industry selected for this project is classified as section D - Supply of electricity, gas, steam, and cold air by the Statistical Office of the Slovak Republic and the SK-NACE classification of economic activities. The ratio analysis is the most critical component of the paper when analyzing the economic effects on the energy industry. The optimal values are then contrasted to the resultant values, which are evaluated based on the trend of positive or negative development. Findings & Value added: In summary, the design phase assesses computed indicators in the context of external factors during the monitored period, while the industry anticipates its future using the data. The profitability indicator was most significantly impacted by the aforementioned factors in 2022, as the sector experienced a decline. Additionally, liquidity increased until 2021. In 2022, it experienced a slight decline as a result of economic pressures. The indebtedness analysis indicated that the property could be funded by personal capital, as evidenced by the substantial self-financing. The energy sector's financial status was consistent, as evidenced by the stabilization of critical financial ratios and its resilience in the face of significant external disruptions.