The firm’s profitability is measured using the operating income plus depreciation related to total
assets (IA). This measure is indicator of the raw earning power of the firm’s assets. Another profitability
measure used for this analysis is the operating income plus depreciation related to the sales (IS). This
indicates the profit margin on sales. To measure the liquidity of the firm the cash conversion efficiency
(CCE) and current ratio (CR) are used. The CCE is the cash flow generated from operating activities
related to the sales. The formulae for calculating these values are given in the following Table 1.