Financial Ratio Analysis of Food Processing Projects in Fayoum Governorate

Document Type : Research articles.

Authors

Agricultural Economics Department, Faculty of Agriculture, Fayoum University, Fayoum 63514, Egypt

Abstract

The research aims to analyze the financial ratios of food manufacturing projects in Fayoum Governorate, using various methods to measure productivity, marketing, activity, and liquidity efficiency. The results revealed that fruit and vegetable processing and preservation projects had the highest levels of efficiency in utilizing working capital and invested capital, as well as their ability to generate sales using both fixed and current assets. In contrast, dairy product manufacturing projects were less efficient in these aspects. The study also showed significant variation in the ability of projects to meet their short-term and long-term obligations. Projects in the fruit and vegetable processing industry were more capable of settling their obligations using current assets compared to other industries. On the other hand, the study indicated that projects face significant challenges, such as high transportation costs, interest rates, and energy prices, all of which negatively affect their performance. In light of these findings, the research recommends the development of technological solutions to improve asset utilization, enhance marketing and administrative efficiency, and provide financing programs to support projects in facing financial crises. It also calls for strengthening the integration between suppliers and customers and developing strategies to reduce the impact of energy-related issues.

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