Financial Ratios as Indicators of Economic Sustainability: A Quantitative Analysis for Swiss Dairy Farms

Zorn, Alexander; Esteves, Michele; Baur, Ivo; Lips, Markus

doi:10.3390/su10082942

Cited by 56 publications

(43 citation statements)

References 28 publications

(45 reference statements)

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“…By contrast, economic indicators target a relatively small number of themes. The main approaches for assessing the economic dimension of sustainability of farms are discussed by Zorn et al [30], Gábor [37], Singh [38], and Medeiros et al [39].…”

Section: Introductionmentioning

confidence: 99%

Assessing Impacts of CAP Subsidies on Financial Performance of Enterprises in Slovak Republic

2020

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Sustainability is a particularly crucial factor in policy formulation and analysis, including in the EU’s common agricultural policy. The common agricultural policy, through a subsidy policy, has caused a significant proportion of public funding to flow to agricultural subsidies, so it is appropriate to focus on the effect of these subsidies in the context of the sustainable development of EU agriculture. The impact of agricultural subsidies on business performance is of interest to policy makers. In agrarian practice, insufficient attention is paid to the legal form of agricultural performance, so our economic analysis focused on this area of research. The aim of the paper was to evaluate the effect of financial support in the form of subsidies resulting from the EU’s common agricultural policy and to verify its connection with the performance of agricultural enterprises in terms of the legal form in the context of sustainable development of the agricultural sector in Slovakia. No statistically significant linear correlation was found between farms’ performance results and the volume of subsidies per hectare of agricultural land for each legal form throughout the reporting period. In each analyzed year, business companies achieved a better overall assessment than agricultural cooperatives based on monitored parameters.

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Section: Introductionmentioning

confidence: 99%

Assessing Impacts of CAP Subsidies on Financial Performance of Enterprises in Slovak Republic

2020

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“…Innovation capability (innov) was composed of the following variables: preventive policy (Inn_1), program of milk quality (Inn_2), drying treatment (Inn_3), udder disinfection (Inn_4), milking system cleaning (Inn_5), reproductive techniques (Inn_6), reproductive rates (Inn_7), and artificial insemination (Inn_8). In addition, using economic and financial ratios for assessment of farms' economic sustainability [1,54,55], "profit" was used as the result of the efficiency ratios of returns on assets (ROA) and returns in investments (RF).…”

Section: Selection and Assignment Of Dynamic Capabilities (Dc) Indicamentioning

confidence: 99%

Impact of Dynamic Capabilities on Performance in Dairy Sheep Farms in Spain

et al. 2020

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This study links the dynamic capabilities (DCs) theory with performance in dairy sheep farms in Castilla La Mancha (central Spain). The approach is novel as it seeks to understand how best results can be achieved by deploying DCs in farms. The proposal is that dynamic capabilities are interrelated to each other and present a positive impact on the farm’s economic sustainability. A mixed methods approach (a combination of qualitative and quantitative methods of research) was utilized. First, 30 indicators of dynamic capabilities (8 of absorption, 11 of integration, 9 of innovation, and 2 of profits) were selected by applying Delphi’s methodology. Second, a structural equation model (SEM) was applied over a random sample of 157 dairy sheep farms to measure the relationship between DCs and the impact of each capability on farms’ final performance. The existence of positive relationships amongst absorption, integration, and innovation capabilities was evidenced. Absorption and integration capabilities exhibited positive influences on a farm’s final performance. The knowledge of the relationships amongst dynamic capabilities is a new orientation to increase farms’ viability. These findings reveal that the application of the dynamic capabilities theory can explain best farms’ economic sustainability.

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“…There is another sustainability estimation approach that is a method of an aggregate performance indicator that should approximate to the economic sustainability [Zorn at al. 2018].…”

Section: Analysis Of the Main Indicators Of Financial Sustainability mentioning

confidence: 99%

“…The financial ratios are aggregate on level of the indicators profitability (P), liquidity (L), financial efficiency (FE) as well as the compound indicator stability/solvency/repayment capacity (S/RC; meaning S and/or RC). Hence, the aggregate indicator Y is created by four indicators, each one composed by at least four financial ratios [Zorn at al. 2018].…”

Section: Analysis Of the Main Indicators Of Financial Sustainability mentioning

confidence: 99%

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Mechanism of ensuring financial sustainability of agricultural enterprises

Davydenko

Nehoda

Tytarchuk

et al. 2019

rnr

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The aim of the research is summing up and improving theoretical and methodical approaches to determination of financial sustainability of agricultural enterprises. World and national experience of financial sustainability determination of entrepreneurial activities subjects were analyzed and summarized as well as system impact factors on formation of financial sustainability on the regional level and the group of agricultural enterprises level were examined. There are considerable formation specifics of the financial sustainability mechanism of agricultural enterprises. It means that main target of mechanism to ensure financial sustainability is to achieve financial security, their work stability and development today and in future. The method offers using complex of indicators that are closely connected with each other and define economic status and financial ability to continue enterprise activities and examine financial sustainability of an enterprise. The implementation of this approach to determine financial sustainability will increase the information background for further analyzation of financial opportunities.

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Financial Ratios as Indicators of Economic Sustainability: A Quantitative Analysis for Swiss Dairy Farms

Cited by 56 publications

References 28 publications

Assessing Impacts of CAP Subsidies on Financial Performance of Enterprises in Slovak Republic

Assessing Impacts of CAP Subsidies on Financial Performance of Enterprises in Slovak Republic

Impact of Dynamic Capabilities on Performance in Dairy Sheep Farms in Spain

Mechanism of ensuring financial sustainability of agricultural enterprises

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