Assessment of Changes in the Effectiveness of Capital Utilization in a New Formula of Mining Industry Functioning

Abstract

Mining industry in Poland went through a deep transformation. It was a result of a serious financial crisis in the largest mining enterprises in Poland. In this strategic industry for Poland, a consolidation process occurred along with a liquidation of some of its potential. The objective of the paper is to show the process of capital degradation in the largest Polish mining enterprise – Kompania Węglowa SA, what was one of the most important premises of changes implemented in mining industry, and to assess the first effects of the actions undertaken in terms of the effectiveness of capital utilization. The analysis conducted relates to the premises and effects of the first stage of consolidation process, that is after the incorporation of the first mining enterprise - Kompania Węglowa SA into the structures of Polska Grupa Górnicza SA. The basic research method is ratio analysis and the research period encompasses the years 2013–2016.