The assessment of forestry companies in the Czech Republic with focus on profitability

Abstract

The paper deals with the evaluation of economy of forestry companies. The evaluation stems from the results of economic analyses of enterprises that are further monitored in the context of forestry and development of economic financial ratios of evaluated companies. Furthermore, the evaluation is based on real possibilities of companies stemming from resources which they have at their disposal and on the facts that occurred in the selected companies in the monitored period. The development of important factors influencing the whole branch of forestry and their real state are introduced in the first part of the paper. After that, methods used in financial analysis of enterprises are described. The fact that forest land in the Czech Republic covered 2.66 million hectares in 2014 and its proportion in the total area of the country is 34% adds importance to the topic (Czech Statistical Yearbook 2015).