An Exploration of the Debt Ratio of Ski Lift Operators

Abstract

This article examines the determinants of the debt-to-capital ratio of ski lift operators. The analysis is based on the total population of 248 ski lift operators in Austria. The median debt-to-capital ratio is 73%, with a highly skewed distribution, where almost every fourth operator exhibits negative equity capital. Robust regressions show that the debt-to-capital ratio significantly depends on the size of the ski area, elevation, location, presence of a neighboring ski area, supply of accommodation nearby, and the proportion of foreign overnight stays. However, the significance and magnitude of these factors differ between East and West Austria. For eastern Austria, larger ski operators, with neighboring resorts close by and a vast supply of accommodation, have a significantly lower debt-to-capital ratio. In western Austria, elevation and presence of a neighbor are significant predictors. Operators with a neighbor nearby exhibit a 15-percentage-point lower debt ratio.

Do changes in snow conditions have an impact on snowmaking investments in French Alps ski resorts?

“…A time lag likely exists, because a ski lift operator cannot react to a poor snow season by new snowmaking facilities within the same year. This assumption is consistent with Falk and Steiger ( 2018 ), who assumed that warm seasons could lead to increased investments into snowmaking facilities in subsequent years. Thus, if a relationship exists between these two variables, it is likely that there is a time lag between the two with a negative correlation, i.e., a reduction in snow reliability would increase upcoming snowmaking investments.…”

Pursuing Firm Economic Sustainability through Debt Restructuring Agreements in Italy: An Empirical Analysis

“…The available literature highlights the existence of four major forms of restructuring: managerial, operational, asset/strategic and financial [5,6,13,16]. Making decisions about which type of intervention to implement requires an extensive evaluation of the firm's situation and the environment in which the firm operates [13,17].…”

The Effects of Environmental Management and Debt Financing on Sustainable Financial Growth in the Tourism Industry

“…As for the tourism industry, the financial system can influence the optimization and adjustment of the tourism industry structure through financial instruments (Lado-Sestayo et al, 2016), while the manner in which the tourism industry structure develops further advances higher requirements for financial instruments. More diversified financial instruments, such as debt financing, are needed to meet the requirements of tourism enterprises (Falk & Steiger, 2018). Therefore, the formation of a reasonable matching relationship between financial instruments and the growth of the tourism enterprise is conducive to the sustainable development of the tourism industry.…”