Application of the synthetic measure of TMR in assessing the financial health of industries in Poland
Year: 2025
Type: article
Abstract: Purpose: The purpose of the study was to classify sectors of the Polish economy based on their financial condition, focusing on key indicators such as profitability, liquidity, debt, and operational efficiency.The aim was to identify sectors with stable performance and those facing financial challenges.Design/methodology/approach: The analysis used financial ratio data from 2019 and 2022 for various sectors, applying the TMR (synthetic measure of development) method to evaluate and rank industries.Data were derived from the sectoral financial indicators compiled by the Commission of Economic Reporting and Analysis of the Scientific Council of the Accountants Association in Poland and InfoCredit.Findings: The study revealed differences in financial performance across sectors.Certain industries demonstrated strong financial standing, while others showed weaknesses in key areas.The rankings helped highlight patterns of efficiency and risk.Research limitations/implications: Limitations include the availability and quality of sectorlevel data and the use of a synthetic index that may overlook specific financial nuances.Future studies should integrate more macroeconomic variables and consider alternative comparative methods for deeper insight. Practical implications:The findings can guide investors, entrepreneurs, and policymakers in identifying stable and at-risk sectors.Banks and financial institutions may use the results for credit assessments, while researchers may benefit from the classification in further sector-based analyses.Social implications: Identifying financially vulnerable sectors may support targeted policy interventions, job market planning, and allocation of public support where needed most.Originality/value: Unlike typical studies focusing on single indicators, this research offers a synthetic sectoral classification based on multiple financial metrics, providing a more comprehensive perspective.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4411894944