The Nordex Group confirms its guidance for the current year 2019 and expects to generate consolidated sales of EUR 3.2 to EUR 3.5 billion, an EBITDA margin of between 3.0 and 5.0 percent and a working capital ratio
of under 2 percent in relation to sales.
The applicable financial targets are EBITA margin and net working capital ratio
, calculated at three-year-averages.
The research has concluded that the net working capital ratio
indicating the proportion of the assets falling on the funds earmarked for circulation correlates with the unemployment level (20.48%), the volume of import (15.66%) and the rate of inflation in the country (15.66%) (Fig.
The first analyzed indicator is the size of working capital ratio
(see table 1).
Furthermore, the relationship between working capital ratio
and operational performance and the marginal influence of working capital on performance are also examined by panel data analysis.
Further, the table reveals that the net working capital ratio
remained fluctuating during the period of study.
The debt structure was different for real estate companies, with a much higher presence of long-term liabilities, resulting in a higher working capital ratio
(27.75% instead of 17.05%).
Net working capital ratio
: It measures the Cooperative Unions' potential for funds.
While revenue was increasing, the company's working capital ratio
dropped by 7%, a big improvement over the previous year.
[X.sup.3] = WOR, Working Capital Ratio
as a proxy for liquidity
It is a widely held view that an acceptable working capital ratio
is two-to-one, or twice as much current assets as liabilities.