Solvency and Fixed Assets Financing of Agriculture, Forestry and Fishing Sector in the Republic of Serbia

Abstract

This paper aims to examine solvency and fixed assets financing of Agriculture, Forestry and Fishing sector (Sector A) in the Republic of Serbia. We also examine whether there is a difference between this Sector’s enterprises and entrepreneurs regarding these two aspects of their financial position. The research is based on the Financial Statements Annual Bulletins available on the official website of the Serbian Business Registers Agency. The period of six consecutive years is covered (2013-2018). Solvency and fixed assets financing were analyzed separately for Sector A enterprises and entrepreneurs. Standard ratio indicators were used to determine these relevant aspects of financial position. The conducted analysis showed differences between this Sector’s enterprises and entrepreneurs regarding the solvency. The research results revealed that, despite a slight improvement in certain solvency indicators, entrepreneurs were insolvent during the observed period. The fixed assets financing indicators showed that the lack of equity for new investments financing was compensated mainly by long-term borrowing at enterprises’ level and by short-term borrowed sources at entrepreneurs’ level.

Impact of Realized Investments in New Fixed Assets on Gross Domestic Product in Serbia

“…In addition, investments are still low in fixed assets. On the example of sector A (Agriculture, Forestry and Fishing) in the Republic of Serbia, in the period 2013-2018, the fixed assets financing indicators indicate a lack of capital for financing new investments, which is mostly compensated by long-term borrowing at the level of enterprises and shortterm borrowed sources at the level of entrepreneurs in the analyzed sector (Bogićević et al, 2021).…”

Liquidity of enterprises and entrepreneurs of the Sector I: Accommodation and Food Services in the Republic of Serbia

“…Analiza likvidnosti privrednih dmštava i preduzetnika Sektora I sprovedena je na bazi Godišnjih biltena finansijskih izveštaja. Reč j e o izveštaj u koj i Agencij a za privredne registre Republike Srbije sastavlja i publikuje od 2014. godine, i koji sadrži zbime bi-lanse stanja i bilanse uspeha dve uzastopne godine za privredna društva i preduzetnike iz realnog sektora, finansijskih institucija i neprofitinih organizacijama (Agencija za privredne registre; Bogićević et al, 2021a). Pored pomenuta dva izveštaja, Godišnji bilten sadrži i podatke o broju pravnih lica (privrednih društava, preduzetnika i institucija), kao i broju njihovih zaposlenih (Bogićević etal., 2021a).…”