Financial Conditions of the Enterprises in the Canning Industry in Bulgaria in the 1990-ies

A. SIMOVA

Institute of Agricultural Economics, BG-1600 Sofia, Bulgaria

Abstract

SIMOVA, A., 1999. Financial conditions of the enterprises in the canning industry in Bulgaria in the 1990-ies. Bulg. J. Agric. Sci., 5: 677-681

Canning industry is one of the oldest and traditional sub-branches of the food processing industry in Bulgaria. The branch is export-orientated about 80% of the products are exported. Bulgaria's major markets are the countries of the former USSR, the Middle East and some of its neighboring states.Technologically the enterprises of the branch are not homogenous. Some of them use a comparatively up-to-date equipment, while others use outdated machines and technology. At present the financial state of the enterprises of the canning industry is unfavorable. A big part of them experience serious financial difficulties for reasons of the low degree of utilization of the production capacities after 1990, the shrinkage of markets and bad debts. The chronic lack of circulating capital poses a considerable problem. As a whole the branch is functioning at a loss and many of the enterprises have accumulated debts which are equivalent to their capital.

Key words: return on sales, return on equity, current ratio, quick ratio, debt to equity, inventory turnover, receivables turnover