In my master's thesis, I discuss the analysis of over-indebtedness of companies during the financial and economic crisis, showing the structure and dynamics of borrowing of Slovenian companies. The latest financial economic crisis that erupted on the US subprime mortgage market was a negative shock to the supply of external sources of financing. This had a very negative impact on the Slovenian economy, which had a large share of loans in sources of financing. With the onset of the crisis, this channel of financing has been severely affected, both due to lower supply of loans and increase in corporate financial liabilities. This led to the emergence of liquidity constraints that Slovenian companies began to encounter and had a negative impact on economic growth, the volume of operations and even cessation of operations by some companies.
An analysis of indebtedness of Slovenian companies over three periods represents the core of my master’s thesis: the pre-crisis period (2002-2008), the period of the crisis (2008-2013) and the period of recurrent economic growth (2013-2015). In the first analysed period, we see high investment activity of companies, which led to exceptional economic growth and value added growth, on one hand. On the other hand, insufficient capital resources of enterprises and unlimited availability of loan sources led to borrowing of the Slovenian economy. This is followed by the time of crisis, showing where in the economy the concentration of indebtedness was greatest, and how the deleveraging process began. In the analysis of the last period, we have, again, recorded economic growth and the level of indebtedness at the pre-crisis level.
Finally, my analysis of the indebtedness is based on three selected Slovenian companies of various activities. Based on the calculation of net debt/EBITDA and the share of equity in total assets, I present their performance over the entire analysed period (2002 – 2015).