The Social Sciences

Year: 2019
Volume: 14
Issue: 11
Page No. 384 - 387

The Evaluation of Škoda Auto a.s. Prosperity with the usage of the Modificated Magic Quadrangle Method

Authors : Šárka Dvořáková and Šárka Hyblerová

Abstract: The graphical method of magic quadrangle is the method used at a macroeconomics level to assess the national economy. This method is based on the assumption of achieving the four main goals of the economic policy which are defined as the GDP growth rate, balanced payments in current accounts, optimal inflation rate and optimal unemployment rate. When constructing the "Magic Quadrangle" appropriate for the level of a company as a macroeconomics subject on the supply side, the standard macroeconomics magnitudes were replaced, so that, the chosen indicators evaluate equally the four main areas mentioned above: the growth of earnings before taxes, the share of sales abroad from the total revenues, the revenues for the real volume unit of production and the demand for production in the number of workers. The graphical method of the magic quadrangle applied at a microeconomic level can work for the management of the company as a supportive indicator of its financial "health". The key factor in applying this method is the option of suitable indicators for setting up their optimal (final) figures. Considering the variability of individual microeconomic subjects, it is necessary to have an individual approach to those mentioned above.

How to cite this article:

Šárka Dvořáková and Šárka Hyblerová, 2019. The Evaluation of Škoda Auto a.s. Prosperity with the usage of the Modificated Magic Quadrangle Method. The Social Sciences, 14: 384-387.

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