Profitability, solvency, knowledge, and bankruptcy risk in baltic logistics firms: An empirical assessment

In recent years, sustainability and business innovation have become essential for firms’ survival and strengthening of their competitive position in national and international markets. In this context, one of the sectors that has recently undergone a significant transformation is logistics, which is driven by the need for improvement in key areas such as sustainability management, knowledge management and the adoption of technological innovations. Logistics plays a fundamental role in fostering economic development, where ensuring financial health is a prerequisite for informed decision making by stakeholders and policymakers. Accordingly, the present study seeks to evaluate the economic and financial health of logistics companies in the Baltic region, with a particular focus on their profitability and the key factors affecting those firms’ financial performance. The final sample consists of a total of 3048 logistics companies selected based on the availability of complete financial records. The overall financial situation of these companies is first assessed using a descriptive analysis, followed by an analysis of key financial ratios by country, firm size, and quartiles. Furthermore, Altman’s Z-score model is used to predict bankruptcy and analyse the economic and financial health of these companies. The results indicate significant variability in profitability across logistics firms in the Baltic countries. The findings confirm the critical role of liquidity, solvency, and efficiency ratios in explaining firm profitability. Collectively, the results reported in this study contribute to previous research by providing empirical evidence on the financial health of logistics companies. Important insights also concern the role of innovation and sustainability in improving logistics firms’ competitiveness, financial efficiency, and resilience in the face of current global market challenges.