Key Financial Performance Indicators of the Slovak Construction Industry: The Assumption of Prosperity

A precondition for the existence, stability, and competitiveness of enterprises is their performance. In measuring the performance of enterprises, the priority is mainly to monitor and measure their financial performance. The values ​​of financial indicators reflect all the consequences of ongoing processes in the enterprise. Based on the above, the motivation of the research was to identify key performance indicators within the construction industry of Slovakia. The Slovak construction industry makes up a significant part of Slovakia’s GDP, and therefore it is very important to monitor its performance. The selection of key financial performance indicators was carried out using Elastic net and in the second step of selection using Decision tree (DT), Gradient boosted tree (GBT) and AdaBoosted tree (ABT). The results of these methods show very good classification accuracy. The selection of key financial performance indicators includes the Working Capital to Total Assets, Current Ratio and Total Debt to Total Assets, which have been confirmed in several studies as important indicators of the financial performance of construction companies. The identified indicators may be significant for managing the financial performance of these enterprises in practice