Abstract
The research defines the input efficiency and estimates relations between factors of efficiency and financial situation of agricultural companies. In 2005-2013, the input efficiency of agricultural companies was low which was illustrated by insufficient profitability. An increase in investments did not result in a substantial improvement in return on capital. It was stated that the highest impact on financial situation of companies had the labour factor, while capital and land factors were of lesseru importance. The efficiency of capital use was highly related to assets’ capacity of agricultural companies, although labor and land were strongly connected to sales revenue and operating profit.
Highlights
A farm is a technical and production unit which has a specific organisational structure and is geared towards the manufacture of agricultural products using three production factors, i.e. land, labour and capital (Ziętara, 1998)
The study determined the efficiency of using inputs and identified their relationships with the financial situation of agricultural companies
The following conclusions were drawn based on the studies conducted: 1. In 2005-2013, the efficiency of using inputs of agricultural companies was at a low level, as evidenced by the insufficient ability to generate profit
Summary
A farm is a technical and production unit which has a specific organisational structure and is geared towards the manufacture of agricultural products using three production factors, i.e. land, labour and capital (Ziętara, 1998) In this paper, these factors will be referred to as inputs. With regard to the particular agricultural company, the recognition of relationships between the efficiency of using manufacturing factors and the financial situation allows to build an effective strategy for achieving the objectives assumed. A commonly used method for measuring the financial efficiency is ratio analysis, whose subject are relationships between specific financial volumes from the point of view of their interrelations (Zaleska, 2002) In this context, the efficiency of using resources can be assessed by means of indicators illustrating the ratio of obtained economic effects to inputs expressed by a value or quantity measure. The studies on inputs and the efficiency of their use in agriculture were carried out as part of comprehensive analyses of their use (Bernacki, 1982; Bud-Gusaim, 1988; Wasilewski and Wasilewska, 2008; Szymańska, 2010; Kołoszko-Chomentowska, 2011; Felczak and Domańska, 2012; Baer-Nawrocka and Markiewicz, 2013; Kołodziejczyk, 2014) or in relation to the productivity of selected resources (Klepacki, 2004; Klepacki and Gołębiewska, 2005; Gołaś and Kozera, 2008)
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