Dluhové zatížení zemědělských A. S.
Debt Burden of Agricultural Joint-stock Companies
Author(s): Marie Vejsadová DryjováSubject(s): Business Economy / Management, Agriculture, Accounting - Business Administration
Published by: Vysoká škola evropských a regionálních studií, z. ú.
Keywords: financial structure; debt; self-financing;
Summary/Abstract: The aim of the paper is to study the assessment of debt of agricultural enterprises in 2004-2007, after the Czech Republic accessed to the European Union. The study shows the development of indebtedness indicators according to the support from the EU subsidy programs. It is shown that the debt gradually declined with an increase of support, triggering a change in the financial structure of enterprises in favour of increasing their own resources. The increasing level of earnings before tax generated gradual growth of debt component of long-term bank loans. Debt gradually declined despite the growth of long-term bank loans, which may explain the rapid increase in earnings before tax. Debt financing did not induce any scatter of return on equity, because the volatility of sales has not been confirmed. The paper revealed that enterprises preferred internal sources of financing, whereby they achieved a sort of financial independence.
Journal: Auspicia
- Issue Year: 2010
- Issue No: 1
- Page Range: 86-88
- Page Count: 3
- Language: Czech