| Autor: |
Piccoli, Pedro, Bianchini Junior, Nilton, Coser, Jeferson, Moreira, Vilmar R. |
| Zdroj: |
Agricultural Finance Review; December 2020, Vol. 81 Issue: 3 p444-457, 14p |
| Abstrakt: |
Purpose: From 2006 to 2016, Brazilian agricultural cooperatives exhibited a sharp increase in sales. Since the operational cycle of these organizations demands a positive net working capital that is usually funded by debt, the authors examine whether this rise in sales was obtained at the cost of the short-term financial sustainability. As a matter of comparison, the authors conduct the same analysis for Brazilian agricultural public traded companies. Design/methodology/approach: The authors employ the dynamic analysis of working capital method to measure the short-term financial sustainability of these organizations. Findings: The authors find that the expansion of net working capital caused by the growth of the revenues of the sampled cooperatives was mostly funded by short-term debt, which rose by 31% in annualized terms. The authors also document that around 60% of these firms displayed a current capital structure that can be considered risky in terms of indebtedness, and that the majority of firms exhibited a non-sustainable growth in the period, what contrasts with the performance presented by Brazilian agricultural publicly traded companies, since only 16% of the firms from this group have shown a non-sustainable growth. This distinction seems to be explained by the lower capacity of agricultural cooperatives to provide resources from their operations. Originality/value: The authors investigate the short-term financial sustainability of a unique dataset of 65 Brazilian agricultural cooperatives and provide insight for researchers analyzing the dual nature of these firms. |
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