IDEAS home Printed from https://ideas.repec.org/a/boh/actaub/v10y2007i2p55-62.html
   My bibliography  Save this article

Financial health assessment of agricultural enterprises with ecological farming

Author

Listed:
  • Daniel Kopta

    (University of South Bohemia in České Budějovice)

  • Jindřiška Kouřilová

    (University of South Bohemia in České Budějovice)

Abstract

This paper presents the outcomes of financial health assessment of agricultural enterprises with ecological farming. First part of this paper deals with overall indicators of financial health. The outcomes of the most frequently used financial health indicators are unclear. However, the majority of models reflect the improving economic situation. The outcome values of ecological enterprises are however still below the level of conventional enterprises. Second part of this paper is based on classical financial analysis. The research has shown basically identical year-to-year development of profitability ratios of conventional and ecologic enterprises as well as high variability of profitability of both categories. The total value of return on assets is completely unsatisfactory within both categories. The differences in utilization of assets are more likely caused by different alignment of production so that lower values of ecological enterprises cannot be assessed as unfavourable. At the same time, ecological enterprises are still in worse situation regarding many economic indicators. Significant problems may be caused especially by extremely low current ratio. On the contrary, the development of debt ratio is very favourable. The debt ratio had decreased by 30 percent points during the research and it reached the level of 10 points below the conventional enterprises average. This paper is a part of MSM 6007665806 project.

Suggested Citation

  • Daniel Kopta & Jindřiška Kouřilová, 2007. "Financial health assessment of agricultural enterprises with ecological farming," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 10(2), pages 55-62.
    • Handle: RePEc:boh:actaub:v:10:y:2007:i:2:p:55-62
    DOI: 10.32725/acta.2007.022
    as

    Download full text from publisher

    File URL: https://doi.org/10.32725/acta.2007.022
    Download Restriction: no
    File URL: https://libkey.io/10.32725/acta.2007.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boh:actaub:v:10:y:2007:i:2:p:55-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tereza Šťástková (email available below). General contact details of provider: https://edirc.repec.org/data/efjcucz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.