Financial position of food industry in vojvodina during transition period

Veljko Vukoje and Ivan Dobrenov
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Veljko Vukoje: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Novi Sad, Serbia
Ivan Dobrenov: Department of Agricultural Economics and Rural Sociology, Faculty of Agriculture, University of Novi Sad, Novi Sad, Serbia

Agricultural Economics, 2011, vol. 57, issue 4, 185-198

Abstract: The paper analyzes the main indicators of the economic position of companies in the field of food industry in Vojvodina. The examined nine-year period coincides with the final stage of the ownership transformation in the Republic of Serbia. Given the length of the examined period, a considerable devaluation of the national currency (60.6%) and a high inflation rate (125.7%), all values are shown in Euros. The increasing business activity in the period of interest is not accompanied by the appropriate financial effects. Food industry enterprises achieved a positive financial result for most of the years in the given period, but with modest profit rates (0.15-3.18%). Net working capital covers only 42.5% in average of the base stock, indicating an unfavourable financial structure and serious liquidity problems. An unacceptably high level of indebtness has been achieved (58.1%), which significantly reduces financial results due to the high financing expense. A further increase of export, combined with the recapitalization by the owners and a partial refinancing of credits, is the way to the companies' financial recovery.

Keywords: food industry; transition; balance analysis; result; financial structure (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:57:y:2011:i:4:id:99-2010-agricecon

DOI: 10.17221/99/2010-AGRICECON

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