Performance Measurement and Characterization of Financial Indicators of Agricultural Companies in Romania

Maria Petronela Aron ()
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Maria Petronela Aron: West University of Timisoara

Ovidius University Annals, Economic Sciences Series, 2021, vol. XXI, issue 2, 928-934

Abstract: The performance consists of the efficiency and effectiveness with which the resources are consumed. The results are generated to ensure the development of the sphere of interest of the organization. The financial indicators provide a fundamental basis for analyzing the performance and evaluating the company's financial health. The paper's objective is to identify the characteristics of agricultural companies in terms of financial indicators. The indicators used in this paper are Accounting Value and financial indicators: Return on Assets (ROA), Return on Equity (ROE) and Return on Sales (ROS). We conducted qualitative research using descriptive analysis, correlation matrix and covariance analysis. The sample consists of 203 agriculture companies with more than 5,000,000 lei turnover in 2018-2020. The data were analyzed from the financial reports. The predominant activity was cultivation of cereals (excluding rice), leguminous plants and oilseed plants, with 181 companies. There was a positive correlation between all the analyzed indicators. The closest correlation was between ROA with ROE and ROS, and ROE with ROS, and the lowest coefficients were between AV and financial performance indicators.

Keywords: Accounting value; Agriculture; financial indicators; performance (search for similar items in EconPapers)
JEL-codes: L25 M41 Q10 (search for similar items in EconPapers)
Date: 2021
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