The construction industry in Greece: a study of the companies' liquidity

Abstract

This study examines several liquidity indicators of the construction industry in Greece, a very crucial industry for the whole economy, with rapid growth and expansion especially with the approach of the Olympic Games in 2004. The firms' liquidity was examined using the traditional current and quick ratios and the more dynamic cash conversion cycle, with regard also to the firms' profitability and indebtness. In conclusion, each measure can provide both useful information and misleading clues regarding the firm's liquidity position. Therefore, it is recommended to use all three measures in order to get better insights and efficiency.