Files

Abstract

Research within this paper was aimed to give picture of economic performance of the dairy industry based upon commonly used indicators calculated for each dairy plant in Bosnia and Herzegovina.In order to understand state of sector transition micro-level analysis was conducted on the basis of balance sheet and income statement, two main financial records, of all dairies in Bosnia and Herzegovina. Documents were obtained from agencies in charge of collecting annual financial reports of both entities in order to assure reliable data for analysis. Research was conducted for three years period (2009-2011). Analysis encompassed horizontal and vertical analysis of balance sheet and income statement. Indicators of financial stability (liquidity and indebtedness ration) and operating successfulness (efficiency, activity, productivity and profitability ratios) we calculated as well. All diaries were classified and analysed by entity and size. The analysis shown that BH dairies operate under very hard circumstances that negatively affects their operating performances. Low liquidity and profitability indicates both financial instability and poor business success. Situation is unsatisfactory in the whole countries, although slightly better in FBH than in RS. So, sector transition is far from completion, and its future characteristic will strongly depend on entrepreneurship (spirit and skills) as well as on ability to change and re-develop institutions both formal and informal (values, culture etc).

Details

PDF

Statistics

from
to
Export
Download Full History