Indebtedness of small and medium-sized wineries in Slovakia

Jana Ladvenicová, Dominika Čeryová, Iveta Košovská, Jozef Palkovič and Matej Čereš
Additional contact information
Jana Ladvenicová: Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovakia
Dominika Čeryová: Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovakia
Iveta Košovská: Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovakia
Jozef Palkovič: Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovakia
Matej Čereš: Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovakia

Agricultural Economics, 2025, vol. 71, issue 1, 27-45

Abstract: Many companies depend on debt sources; they use them to finance their needs. Bank loans are the main debt sources to which companies have access. However, financing only with this source is associated with many risks. The paper's main goal is to assess and quantify the indebtedness of wineries in Slovakia for 2013-2021 through individual debt ratios. The influence of financial leverage on return on equity (ROE) was tested. The data were drawn from the Register of Financial Statements. From the point of view of the total debt ratio, wineries show values higher than 65%. The presence of short-term debts, especially short-term liabilities, prevailed. The average share of equity reached a very low value of 11%. The average share of bank loans on financing operating activities was very low at the level of 8.53%. The return on assets (ROA) was lower than the cost of debt in most wineries, which means that increasing indebtedness had a negative effect on ROE.

Keywords: bank loans; debt indicators; financial resilience; vineyard economics; wine industry (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://agricecon.agriculturejournals.cz/doi/10.17221/31/2024-AGRICECON.html (text/html)
http://agricecon.agriculturejournals.cz/doi/10.17221/31/2024-AGRICECON.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:71:y:2025:i:1:id:31-2024-agricecon

DOI: 10.17221/31/2024-AGRICECON

Access Statistics for this article

Agricultural Economics is currently edited by Ing. Zdeňka Náglová, Ph.D.

More articles in Agricultural Economics from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().