Measuring the performance of dairy farms using financial ratios: The case of the Baltic States and Poland
Ovidija Eičaitė
, Deiva Mikelionytė
Abstract: This study aimed to assess the performance of dairy farms in the Baltic States and Poland, measured by financial ratios. The analysis was conducted using average data from the Farm Accountancy Data Network (FADN) database for the period 2012 - 2021. A total of sixteen financial ratios were selected, calculated, and evaluated, grouped into four dimensions: profitability, liquidity and independence, financial efficiency, and stability and solvency. According to the results, Polish dairy farms exhibited higher profitability and liquidity, whereas Lithuanian dairy farms demonstrated higher stability and solvency. A comparison of certain financial ratios with benchmarks reported in the literature revealed varied results. Concerning the profitability indicators of dairy farms in all countries, none of them reached the recommended values. In terms of liquidity and solvency, dairy farms in all countries were in a good position. The results for financial efficiency were varied. In order to obtain a comparison of the financial performance of dairy farms across the countries concerned, a four-dimensional composite index comprising sixteen financial ratios was calculated. Polish dairy farms ranked highest on the composite index of financial performance, closely followed by Lithuanian dairy farms. Latvian dairy farms ranked third, while Estonian dairy farms ranked the lowest.
Keywords: Baltic countries; dairy farming; FADN; financial analysis; financial indicators; Poland
Citation: Eičaitė, O. & Mikelionytė, D. (2026). Measuring the performance of dairy farms using financial ratios: The case of the Baltic States and Poland. Bulg. J. Agric. Sci., 32(2), 229–237
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| Date published: 2026-04-29
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