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Abstract

Financial efficiency is one of the basic categories used to describe the state, functioning and development possibilities of various types of organizations. The essence of the financial efficiency, content and tools evolve constantly. The same goes for agriculture. Although this sector still observes the domination of classic accounting measures and ratios, describing past accomplishments not linked to market appraisal, new concepts arise gradually, which suite the contemporary conditions of farming as well as the goals and expectations of farmers themselves. The above induces the implementation of financial efficiency measurement patterns based on economic profit and cash flows. Such patterns feature reference to the process of value creation, thus treating farms as financial investment and subjects of investment decisions.

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