TOMATO PROCESSING FIRMS' MANAGEMENT: A COMPARATIVE APPLICATION OF ECONOMIC AND FINANCIAL ANALYSES

In Italy, the territory that includes the Emilia-Ro magna region, the southern areas of Lombardia and some of Piemonte's territory is a center of nationa l importance for tomato production and transformation. The processing firms operating in t his area are characterized by significant investmen ts in fixed assets and working capital. The article an alyzes the annual account data of a sample of firms , showing that economic margins traditionally applied to assess the sustainability of the business cycle differ significantly from financial margins; also, the Interest Coverage Ratios (ICRs) differ if calculated by applying an economic or a financial a pproach. Moreover, the annual account data highlight difficult credit access, expressed by app lying a multiple regression model to analyze Free Cash Flow to Equity (FCFE) generation. The article suggests a useful metric to measure more correctly the sustainability of a firm's management that coul d be applied to others in the agri-food sector, particularly if characterized by a capital-intensiv e processing cycle