Financial stability of enterprises in Serbian agriculture, fishing and forestry sector

Abstract

The main aim of this research paper is to examine financial stability, including indebtedness, interest coverage, and profitability of enterprises in Serbian Agriculture, fishing, and forestry sector. The research was performed using the tools of accounting and financial analysis. Period from 2015 to 2019 was observed. Analysis was based on consolidated financial statements for all enterprises that belonged to the sector in mentioned period. Research results show that the enterprises managed to maintain acceptable level of long-term financial stability, while on the other hand, there was a more significant disturbance on the side of short-term financial stability. Solid performances were recorded in the field of interest coverage, but also indebtedness where those indicators met referent values in almost every observed year. In the field of profitability that was examined via ROA and ROE indicators, poor performance was recorded.

Keywords

• financial analysis
• financial stability
• agriculture
• roa
• roe