The Analysis of the Indebtedness of Slovak Agricultural Enterprises in Years 2003 and 2009 and Multi-criteria Analysis of Slovak Agricultural Enterprises in Years 2003 and 2009

Jana Prevužňáková1, Katarína Zemková2
1 Faculty of Economics and Management, Department of Finance, Slovak University of Agriculture in Nitra, 2 Faculty of Economics and Management, Department of Statistics and Operations Research (Department of Economics), Slovak University of Agriculture in Nitra
Prevužňáková, Jana (Faculty of Economics and Management, Department of Finance, Slovak University of Agriculture in Nitra)
Zemková, Katarína (Faculty of Economics and Management, Department of Statistics and Operations Research (Department of Economics), Slovak University of Agriculture in Nitra)
The Analysis of the Indebtedness of Slovak Agricultural Enterprises in Years 2003 and 2009 and Multi-criteria Analysis of Slovak Agricultural Enterprises in Years 2003 and 2009
Zeszyty Naukowe SGGW, Polityki Europejskie, Finanse i Marketing, 2012, vol.7(56), nr , s. 92-101

Abstract

This article shows the changes of structural census of agricultural enterprises which was lastly performed in 2010. The census of agriculture is published every ten years. The aim of the article is to show the impact of farm’s legal forms on sources of funding which is one of two main objectives of article’s research. Second objective explains the correlation of legal status of enterprises and sources of external funds. From the comparison of these two points, the result will either confirm or refute the claims that farms should have the highest contribution of external capital to achieve the ideal results. In the paper the difference in funding between the two legal forms was confirmed. The indebtedness of commercial companies is considerably higher in both observed years (2003, 2009). Another finding is that during the observed period (2003-2009) the proportion of commercial companies with higher indebtedness increased significantly. Since Slovakia joined the EU the amount of external sources has risen and it is still rising. But a positive respond in profitability of agriculture enterprises was not observed, as would be expected. According to the Cluster Analysis the centroids of both legal forms were unprofitable in 2003. By comparison between the year 2003, the year in which Slovakia joined the EU and the year 2009, we observe an overall increase in the economic result from the negative to the positive integers. The year 2009 from the point of view of the farmers we can apperceive as a positive year in terms of the world prices, which were on the historical highest level. These prices were supported by a weak U.S. dollar. In the paper the difference in management of the two legal forms was confirmed. In both observed years commercial companies have the highest ratio of external funds, the lowest number employees and the lowest area per hectare. And cooperatives can be characterized with the highest number of employees and also the highest area per hectare.