@article{Katchova:164518,
      recid = {164518},
      author = {Katchova, Ani L. and Enlow, Sierra J.},
      title = {Financial Performance of Publicly-Traded Agribusinesses},
      address = {2013},
      number = {1639-2016-135195},
      series = {University of Kentucky Ag Econ Staff Papers},
      pages = {26},
      year = {2013},
      abstract = {Agribusinesses represent a fundamental link in connecting  farmers with retailers and consumers, yet little research  has been done to examine the historical financial  performance of these food processing firms.  Our research  examines how publicly-traded agribusinesses perform  financially compared to all firms over the period from 1961  to 2011.  We utilize several indicators of company success,  including financial ratios and balance sheet/income  statement items, to compare agribusiness firms to all firms  in the market.  We perform the analysis over time and also  for companies with low-, median, and high-performance.  We  also perform DuPont analysis to compare return on equity  components between agribusinesses and all firms.  We find  that agribusinesses outperform at the median the sample of  all firms in terms financial ratios related to  profitability, liquidity, and market ratios, but have  slightly lower liquidity and debt ratios.  The DuPont  analysis shows that the higher return on equity for  agribusinesses is mostly due to higher asset turnover  ratios, indicating higher operating efficiency of  agribusinesses.  The strong financial performance of food  manufacturing agribusinesses makes them valuable companies  in an investment portfolio.  Our study provides a basic  overview of financial ratios used to examine the financial  performance of publicly-traded agribusinesses.  Our  findings show that agribusinesses outperform all firms in  terms of key financial indicators.},
      url = {http://ageconsearch.umn.edu/record/164518},
      doi = {https://doi.org/10.22004/ag.econ.164518},
}