FINANCIAL RISK ANALYSIS AT THE STOCK EXCHANGE LISTED COMPANIES IN THE PASSENGER ROAD TRANSPORTATION INDUSTRY

We are tempted to say that business activity is usually influenced by the emergence of operational risk, but we should not overlook the impact that the structure of funding sources can have on the outcome of the enterprise. Financial risk appears when funding from borrowed sources involving charges for payment of debts (interest) which affect the profitability of the enterprise. The purpose of this paper is to show the level of financial risk present at a number of five listed companies in the passenger road transportation industry. The analysis was based on interpretation of risk level using the results obtained by calculating the coefficient of financial leverage for a period of five years; the purpose was to demonstrate that using this tool managers can make decisions in a short time so that decision making process will not be long standing.