Indebtedness of small and medium-sized wineries in Slovakia
Many companies depend on debt sources; they use them to finance their needs. Bank loans are the main debt sources to which companies have access. However, financing only with this source is associated with many risks. The paper's main goal is to assess and quantify the indebtedness of wineries...
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| Format: | Article |
| Language: | English |
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Czech Academy of Agricultural Sciences
2025-01-01
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| Series: | Agricultural Economics (AGRICECON) |
| Subjects: | |
| Online Access: | https://agricecon.agriculturejournals.cz/artkey/age-202501-0001_indebtedness-of-small-and-medium-sized-wineries-in-slovakia.php |
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| author | Jana Ladvenicová Dominika Čeryová Iveta Košovská Jozef Palkovič Matej Čereš |
| author_facet | Jana Ladvenicová Dominika Čeryová Iveta Košovská Jozef Palkovič Matej Čereš |
| author_sort | Jana Ladvenicová |
| collection | DOAJ |
| description | Many companies depend on debt sources; they use them to finance their needs. Bank loans are the main debt sources to which companies have access. However, financing only with this source is associated with many risks. The paper's main goal is to assess and quantify the indebtedness of wineries in Slovakia for 2013-2021 through individual debt ratios. The influence of financial leverage on return on equity (ROE) was tested. The data were drawn from the Register of Financial Statements. From the point of view of the total debt ratio, wineries show values higher than 65%. The presence of short-term debts, especially short-term liabilities, prevailed. The average share of equity reached a very low value of 11%. The average share of bank loans on financing operating activities was very low at the level of 8.53%. The return on assets (ROA) was lower than the cost of debt in most wineries, which means that increasing indebtedness had a negative effect on ROE. |
| format | Article |
| id | doaj-art-710a088232854b5d848501befc0363ce |
| institution | Kabale University |
| issn | 0139-570X 1805-9295 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Czech Academy of Agricultural Sciences |
| record_format | Article |
| series | Agricultural Economics (AGRICECON) |
| spelling | doaj-art-710a088232854b5d848501befc0363ce2025-01-30T19:58:58ZengCzech Academy of Agricultural SciencesAgricultural Economics (AGRICECON)0139-570X1805-92952025-01-01711274510.17221/31/2024-AGRICECONage-202501-0001Indebtedness of small and medium-sized wineries in SlovakiaJana Ladvenicová0Dominika Čeryová1Iveta Košovská2Jozef Palkovič3Matej Čereš4Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, SlovakiaFaculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, SlovakiaFaculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, SlovakiaFaculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, SlovakiaFaculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, SlovakiaMany companies depend on debt sources; they use them to finance their needs. Bank loans are the main debt sources to which companies have access. However, financing only with this source is associated with many risks. The paper's main goal is to assess and quantify the indebtedness of wineries in Slovakia for 2013-2021 through individual debt ratios. The influence of financial leverage on return on equity (ROE) was tested. The data were drawn from the Register of Financial Statements. From the point of view of the total debt ratio, wineries show values higher than 65%. The presence of short-term debts, especially short-term liabilities, prevailed. The average share of equity reached a very low value of 11%. The average share of bank loans on financing operating activities was very low at the level of 8.53%. The return on assets (ROA) was lower than the cost of debt in most wineries, which means that increasing indebtedness had a negative effect on ROE.https://agricecon.agriculturejournals.cz/artkey/age-202501-0001_indebtedness-of-small-and-medium-sized-wineries-in-slovakia.phpbank loansdebt indicatorsfinancial resiliencevineyard economicswine industry |
| spellingShingle | Jana Ladvenicová Dominika Čeryová Iveta Košovská Jozef Palkovič Matej Čereš Indebtedness of small and medium-sized wineries in Slovakia Agricultural Economics (AGRICECON) bank loans debt indicators financial resilience vineyard economics wine industry |
| title | Indebtedness of small and medium-sized wineries in Slovakia |
| title_full | Indebtedness of small and medium-sized wineries in Slovakia |
| title_fullStr | Indebtedness of small and medium-sized wineries in Slovakia |
| title_full_unstemmed | Indebtedness of small and medium-sized wineries in Slovakia |
| title_short | Indebtedness of small and medium-sized wineries in Slovakia |
| title_sort | indebtedness of small and medium sized wineries in slovakia |
| topic | bank loans debt indicators financial resilience vineyard economics wine industry |
| url | https://agricecon.agriculturejournals.cz/artkey/age-202501-0001_indebtedness-of-small-and-medium-sized-wineries-in-slovakia.php |
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