Bioenergy in agricultural companies: financial performance assessment
¹Estonian University of Life Sciences, Institute of Economics and Social Sciences, F. R. Kreutzwald street 1, EE51006 Tartu, Estonia
²University of Tartu, Faculty of Economics, Department of Accounting and Finance, J. Liiv street 4, EE50409 Tartu, Estonia
The target of increasing the use of renewable energy in rural areas has initiated the investments in bioenergy. The purpose of this paper is to assess the financial performance of Estonian agricultural companies that have invested in bioenergy solutions. An investment in bioenergy is attractive to the company if the results obtained by it enable benefits to the investors. In the context of the study of financial performance of agricultural companies that have undertaken bioenergy investments, the key performance indicators based on DuPont identity are analysed from the perspective of formulating and implementing a company’s financial decisions. The data of financial statements of the analysed companies are from Estonian Agricultural Registers and Information Board (ARIB) and Commercial Register. The study reports the financial performance results of Estonian agricultural companies using renewable resources and producing bioenergy: whether they achieved higher efficiency and profitability or change in financial structure. The Estonian agricultural companies that have invested in bioenergy solutions may need to control their financial performance by improving profitability and controlling financial leverage.