Abstract & Overview
The imperative of crisis management is to ensure sustainable risk management with respect to the financial and profit position of the company, which will not endanger the survival of the company, as well as to strengthen the ability to maintain financial vitality in times of crisis. The Covid-19 pandemic has been a completely new type of crisis because we cannot expect that the problems that have affected the economy and society as a whole will be recognized and solved in a short period of time. The paper aims to analyze the profit and financial position at the level of the mining sector in the Republic of Serbia. The research has included an analysis of operating income, operating and non-profit/loss parameters and then an analysis of key liquidity and solvency risk parameters for 2020 compared to the previous year, and compared to the average for the period 2015-2019 for sector B, namely Mining and its subsectors: coal exploitation, crude oil and natural gas exploitation, metal ore exploitation, other mining and service activities in mining and geological research. For the purpose of this research, the sample was taken from the Republic Bureau of Statistics of Serbia and from the official financial reports. The findings have shown that there was a decline in operating revenues in 2020 compared to 2019 in sector B, and that the downward trend in revenues was accompanied by a marked increase in operating and net profits, but also a marked increase in operating and net losses. The average values of the general liquidity ratio of companies in the analyzed subsectors show that they are far from the desired theoretical norm, which implies a significant level of risk connected to maintaining liquidity, which draws us to a conclusion that risk management should be considered as a priority.