EFFECTIVENESS OF PRIVATE FARMS IN RELATION TO THE LEVEL OF LOAN CAPITAL USE

Abstract

Debts of farms were small – long-term obligations dominated. Land profitability level, economic labour effectiveness’ level and capital effectiveness of labour resources’ level were the highest in these farms, where, apart from own capital, only long-term capital was used. Own capital profitability in the farms was low, and the least effective were farms which supported their own capital by short-term loan capital only (the third group). The best relation between fixed and current assets occurred in farms financing their activity only by their own capital. Period of dues and cash rotation in the farms was short and the best in the third group of farms, where percentage of current livestock in assets.