Financial Performance Analysis of the Companies in the Agricultural Sector and Food Industry in the Republic of Srpska

Abstract

The objective of the research was to analyse operational results and financial positions by companies in the agricultural sector and food industry in the Republic of Srpska in the 2012-2015 period. The scientific and research methods of classification and compilation, the analysis of time series, comparison, size and structure analysis, method of descriptive statistics, calculation of financial position indicators and methods of conclusion were used. The results of the research show that the agricultural sector, during the four analysed years, suffered loss, whereas the food industry was profiting during the same period. The number of employees in the agricultural sector declined, although its productivity increased while the number of employees in the food industry increased as well as its productivity. The return on equity and assets was negative in the agricultural sector, but it was positive in the food industry. Both sectors were heavily indebted and illiquid, but currently solvent.