Sylvia Jencova

University of Prešov,

Prešov, Slovakia 

E-mail: sylvia.jencova@unipo.sk 

ORCID 0000-0002-0736-0880

Financial position of companies operating in food processing industry of Slovakia by using multidimensional scaling

Petra Vasanicova

University of Prešov,

Prešov, Slovakia

E-mail: petra.vasanicova@unipo.sk 

ORCID 0000-0001-7353-2057

Beata Gavurova*

Technical University of Košice,

Košice, Slovakia

E-mail: beata.gavurova@tuke.sk 

ORCID 0000-0002-0606-879X

*Corresponding Author

Radovan Bacik

University of Prešov,

Prešov, Slovakia 

E-mail: radovan.bacik@unipo.sk 

ORCID 0000-0002-5780-3838

Abstract. The food processing industry (FPI) is an integral part of the Slovak economy. This paper aims to compare the financial position of the largest companies operating in the Slovak FPI at the NUTS II level (Western, Central, and Eastern Slovakia Region) by using the multidimensional scaling (MDS) method. The second aim is to provide an intercompany comparison of these companies using methods of multi-criteria evaluation. The research sample consists of 60 largest companies whose ranking was obtained through the Register of the Financial Statements of the Slovak Republic according to the amount of generated revenues in 2019. The MDS method found out dissimilarity between the elements (eight financial ratios calculated for 2018 and 2020) of a set of objects (60 companies from FPI). The MDS resulted in two-dimensional matching configuration plots for the mentioned regions and years. Moreover, statistically significant values of Spearman’s rank correlation coefficients show that most companies from the Slovak FPI reached a similar rank within all methods of multi-criteria evaluation. There are described the financial ratios (return on assets and return on equity) of the whole Slovak FPI in 2007-2020, separately for the Manufacture of food products (Division 10 of NACE Rev. 2), and for the Manufacture of beverages (Division 11). Partially, this paper also deals with the Manufacture of tobacco products (Division 12). The results of this study point to the importance of innovation in the FPI in the context of Industry 4.0.

Received: August, 2021

1st Revision: March, 2022

Accepted: June, 2022

DOI: 10.14254/2071-789X.2022/15-2/16

JEL Classification: L66, O14, G30

Keywords: food processing industry, financial ratios, multidimensional scaling, Slovakia