Solvency and Profitability of Serbian Industry
Solvency and Profitability of Serbian Industry

Summary/Abstract: After several decades of the economic destruction of Serbian industry, awareness about the importance of this branch of the economy strengthened more and more in recent years. The key question is how much are the perspectives of Serbian industry real? The hypothesis is that this perspective depends on the quality of vision, but also on the long-run financial performances of this branch of economy. The paper deals with the analysis of solvency and profitability of the three Serbian industrial branches in the period from 2008 to 2011. These are: mining, processing industry, and supply of electricity, gas, steam and climatization. A framework for analysis is represented by collective data from the balance sheet and profit & loss statements of those branches. The assessment of solvency and profitability is based on ratio indicators. The paper points out the need for establishing a special regulation body at the level of the Government of the Republic of Serbia, whose task would be to formulate and control the implementation of the industrial development strategy of Serbia in the long-run.

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