The usage of ratio analysis in the assessing of the operation of commercial entities

This paper covers both the financial analysis and the analysis of net working capital that are most commonly used in assessing the operations of economic entities. It is of sig- nificant importance to analyze the operations of each corporate entity through financial aspect (assessment of liquidity and credit worthiness), economic phenomena, reputation and inner strength. The analysis of the operational assessment of the economic entity is of significant importance for the management as it is taken as one of the necessary para- meters in decision – making. Thus gained results can greatly affect and guide managers towards future steps in the process of decision making. On the other hand, by the insight into the financial analysis, the attitude of both the investitors and creditors towards busi- ness entity is determined and therefore they can become interested for various forms of cooperation, including joint ventures. The aim of this paper is to determine, through financial analysis, the status, operation and also the financial situation of the company Sog Line L.T.D. Belgrade, as well as to highlight the important business segments and pos- sibly propose the measures for the improvement of the operation of the entity