Title: Improve the financial management practices in goat farms with the study of financial ratios. The case of Greece

Authors: Maria Tsiouni; Dimitrios Gourdouvelis; Stamatis Aggelopoulos; Dario Siggia

Addresses: School of Agriculture, International Hellenic University of Thessaloniki, Greece ' Department of Animal Production, Faculty of Agriculture, Aristotle University of Thessaloniki, Greece ' School of Agriculture, International Hellenic University of Thessaloniki, Greece ' Department of Agricultural and Forest Sciences, University of Palermo, Italy

Abstract: In recent years, the goat sector in Greece has been transformed in business ranking. The sustainability of the sector can be ensured through financial analysis. The application of financial ratios can provide information about the assessment and improvement of farms' economic sustainability and efficiency. The purpose of this study is the calculation of the average financial ratios in goat farms, in the regional unit of Thessaloniki, Greece, according to their size and to provide solutions for financial management according to credit ratings and the risk of business failure. According to the results, big enterprises have higher profitability, higher efficiency, higher liquidity, and higher solvency. For the maximisation of financial performance is essential for goat farms to increase the number of animals, to achieve economies of scale. There is a positive correlation between herd size and efficiency, and farms could gain by adjusting their herd size to an optimal level.

Keywords: financial management; financial ratios; efficiency; goat farms; Greece.

DOI: 10.1504/IJMFA.2022.122225

International Journal of Managerial and Financial Accounting, 2022 Vol.14 No.2, pp.184 - 196

Received: 15 Nov 2021
Accepted: 21 Jan 2022
Published online: 12 Apr 2022 *

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