000164518 001__ 164518 000164518 005__ 20210122073743.0 000164518 0247_ $$2doi$$a10.22004/ag.econ.164518 000164518 037__ $$a1639-2016-135195 000164518 041__ $$aeng 000164518 084__ $$aQ13 000164518 084__ $$aQ14 000164518 245__ $$aFinancial Performance of Publicly-Traded Agribusinesses 000164518 260__ $$c2013 000164518 269__ $$a2013 000164518 270__ $$makatchova@uky.edu$$pKatchova, Ani L. 000164518 300__ $$a26 000164518 336__ $$aWorking or Discussion Paper 000164518 490__ $$aUniversity of Kentucky Ag Econ Staff Papers 000164518 490__ $$a478 000164518 520__ $$aAgribusinesses 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. 000164518 650__ $$aAgribusiness 000164518 650__ $$aAgricultural Finance 000164518 6531_ $$aagribusinesses 000164518 6531_ $$aCompustat 000164518 6531_ $$aDuPont analysis 000164518 6531_ $$afinancial performance 000164518 6531_ $$afinancial ratios 000164518 700__ $$aKatchova, Ani L.$$1https://orcid.org/0000-0002-7307-4073 000164518 700__ $$aEnlow, Sierra J. 000164518 8564_ $$90a550a3c-3203-4743-a008-efdfefb9e28d$$s180184$$uhttps://ageconsearch.umn.edu/record/164518/files/Agribusiness%20Financial%20Performance.pdf 000164518 887__ $$ahttp://purl.umn.edu/164518 000164518 909CO $$ooai:ageconsearch.umn.edu:164518$$pGLOBAL_SET 000164518 912__ $$nSubmitted by Ani Katchova (akatchova@uky.edu) on 2014-03-02T23:22:52Z No. of bitstreams: 1 Agribusiness Financial Performance.pdf: 180184 bytes, checksum: 5f3909749dbf5bef2f869cf688022458 (MD5) 000164518 912__ $$nMade available in DSpace on 2014-03-02T23:22:52Z (GMT). No. of bitstreams: 1 Agribusiness Financial Performance.pdf: 180184 bytes, checksum: 5f3909749dbf5bef2f869cf688022458 (MD5) Previous issue date: 2013 000164518 913__ $$aLicense granted by Ani Katchova (akatchova@uky.edu) on 2014-03-02T23:15:38Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000164518 980__ $$a1639 000164518 982__ $$gUniversity of Kentucky, Department of Agricultural Economics>Staff Papers