Analysis and Diagnosis of Financial Performances in Romanian Construction Industry

In this paper we propose a diagnostic analysis of the financial performance of construction companies traded on the Bucharest Stock Exchange during 2002 and 2012. The study’s results highlight the significant impact of the financial crisis on the selected financial indicators from the analysis. The conclusions that we drew in our study conduct us to the prediction of a high bankruptcy risk for two of the Romanian construction companies (COFI and ENP), a risk that actually materialized during 2012 and 2013. To sum up, we consider that the methodology of diagnostic analysis, including the selection of the most representative financial indicators, confirms the economic reality, fact which proves its effectiveness and its successful implementation in other domains too.