ICT Industry in the Period of the Economic Crisis: GDP Impact on Profit and Debt in Czech ICT Companies

Abstract

The purpose of the article: The purpose of this article is to review how ICT industry is affected by economic recession in recent times all over the world and especially in the Czech Republic. Information and communication technology is considered to be one of the fastest growing industries, and its financial situation is nowadays very important for the economic recovery. Methodology/methods: The Methodology used in the paper consists of deductive quantitative methods for research and data analysis using graphs. Statistical method (sample correlation coefficient) is used for detection of the influence. Scientific aim: The aim of the article is to find out how recent economic situation affects financial position in companies from Czech ICT industry. This paper evaluates whether the level and development of the gross domestic product have influence on the trend of financial ratios in Czech ICT companies, such as profit and indeptness. Findings: The research show that there is only a slight bond between the economic level in the Czech Republic represented by gross domestic product and the height of financial ratios in Czech ICT companies. On the other hand, performed research demonstrates strong relation between the movement of examined financial ratios in time and trend of the gross domestic product in the Czech Republic. Conclusions: Results from the paper are rather alarming in these difficult times. The conducted research suggests that information and communication technologies, as the key industry for future economic recovery, are affected by recent economic recession. In relation to the unfavourable economic situation, profit of Czech ICT companies is continuously falling down while indeptness rising up.