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The Impact of the Financial Profile on the Resilience Capacity of the Agri-Business Companies in Romania

Author

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  • Dumitru-Florin Moise

    (Bucharest University of Economic Studies, Romania)

Abstract

In general, the effect of the crisis over economy could be very big as in 2008. 2020 was a year with a double crisis in Romania: COVID-19 and draught. From a sample of 2.970 companies from the Romanian agri-business sector, 1.176 had decrease of the profit. The present study analyses the financial situation of 503 companies which passed from profit in 2019 to losses in 2020. The methodology is based on linear regression method which considers the variation of the net profit and independent factors as variation of turnover and the level of fixed assets, stocks, receivables and cash in the year before the crisis. The higher turnover decrease and company size, the higher negative net result variances. Only the companies with a good treasury position went through the crisis more easily. If the companies will not assure a sustainable growth, they will be exposed in front of crisis periods.

Suggested Citation

  • Dumitru-Florin Moise, 2024. "The Impact of the Financial Profile on the Resilience Capacity of the Agri-Business Companies in Romania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 261-268, August.
    • Handle: RePEc:ovi:oviste:v:xxiv:y:2024:i:1:p:261-268
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    More about this item

    Keywords

    crisis; agriculture; net result variances; turnover; financial profile;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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