Managing financial liquidity - a survey of road transport service companies in Poland

Purpose: This article aims to assess the management of financial liquidity and working capital in companies operating in road transport services in Poland between 2019 and 2022. Design/methodology/approach: The study was conducted among a group of 110 enterprises with the highest revenues in 2022 to evaluate the strategies they employ in managing working capital. Comparative financial analysis tools and multiple regression models were used to assess the causal relationship between factors shaping financial liquidity. Findings: The results indicate that the highest level of financial liquidity was achieved in 2020, during the pandemic period. Companies predominantly adopt a moderate strategy in managing working capital, associated with lower insolvency risk. The independent variables included in the regression model explained the variability of the current liquidity ratio. The results of the multiple regression showed that, in the long term, financial liquidity improvement can be achieved through an appropriate asset structure and a low level of short-term liabilities. Research limitations/implications: The survey was limited to transport services companies in Poland. Limiting the sample to a specific geographical region may hinder generalisations. Therefore, future research could include companies from other countries. Practical implications: The findings from financially sound companies provide practical insights into effective financial liquidity management methods under challenging market conditions. Originality/value: The study showed which liquidity and working capital management strategies were effective during the difficult market turbulence. The results can be applied by other entities regardless of their sector of operation.