FINANCIAL ANALYSIS AS A TOOL FOR PREDICTING SECTOR DEVELOPMENT
By analysing the financial perspectives of firms, predictions are made concerning the future development of the firm size distribution and assortment of produces in the Dutch cultivation of vegetables under glass and fruit growing. The central element in the financial analysis is the future cash flow of the firm, since the future development of a horticulture firm depends to a large extend on the possibilities for performing the financial obligations and financing the replacement investments. On account of the differences between the firms with good and those with bad financial perspectives it is concluded that there will be great changes in the firm size distribution of the cultivation of vegetables under glass and in addition to that a narrowing of the assortment of the produces. The latter conclusion follows also from the analysis of the firms specialised in fruit growing. Despite various critical remarks which can be made on this method, it seems to be fruitful.
Mulder, M. (1995). FINANCIAL ANALYSIS AS A TOOL FOR PREDICTING SECTOR DEVELOPMENT. Acta Hortic. 340, 179-186