An analysis of the financial activity of enterprises in the creamery and dairy industry of Moscow

摘要

Comparison of data for 1992-94 and 1995-97 indicates that the assets of Moscow's creamery and dairy enterprises had increased by over a third. This was mainly as a result of almost fourfold growth in shorter-term credits and loans taken out. The share of enterprises' own funds, though still over 60%, had decreased by 14.8% at the end of 1997. A similar pattern applied to liabilities. This rising level of indebtedness is not to the longer-term financial benefit of the sector, although the enterprises' financial position did improve slightly between 1995 and 1997, with increased income from product sales. Nevertheless, there was a fall in the effectiveness of utilisation of capital assets. The financial crisis of August 1998 worsened the already negative trends. To improve their position, these enterprises need to have their tax burden reduced and be granted more favourable credit terms. Profits freed from tax must be used to replenish the enterprises' own funds. They should also make the best usepossible of internal reserves, such as expenditure reduction, increasing mobility of commodity and material valuables, and increasing the share of profits as a source of funds.