Evaluation of liquidity of Serbian agricultural enterprises

Abstract

Imperative of all companies in modern business conditions is constant growth and development. Therefore, it is necessary to regularly monitor and analyze the realization of set business goals. The primary goal, of course, is to achieve a positive financial result, however, it is important to monitor other financial indicators. This certainly includes liquidity, which is a very important indicator of the overall financial condition of the company. The focus of this research is on agricultural enterprises of the Republic of Serbia, i.e. companies that according to the Decree on Classification of Activities belong to Sector A - Agriculture, Forestry and Fisheries and which regularly submit final accounts to the Serbian Business Registers Agency (SBRA). The aim of this paper is to comprehensively review and determine the state, level and trend of liquidity indicators of these companies. The descriptive and comparative method, inductive-deductive method, as well as methods analysis and synthesis, were used for the research purposes. Coefficients, percentages, tabular overviews and graphs were used as analysis tools. The results of the research clearly show that a significant part of Serbian agricultural companies have serious liquidity problems.