Individual Debt Ratio as a Way of Assesing the Financial Conditions of Local Government Units

Originality/Value: Results of the study reflect that IDR concerns the possibility of debt service, but it cannot be a measure of financial condition, because in local government units there are liabilities not only classified as debt obligations. The omission of these obligations and their impact on...

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Bibliographic Details
Published in:European research studies 2021-06, Vol.24 (S2), p.35
Main Authors: Wolowiec, Tomasz, Skrzypek-Ahmed, Sylwia, Gliszczynski, Grzegorz
Format: Article
Language:English
Subjects:
Analysis
Economic forecasting
Financial analysis
Local government
Poland
Online Access:Get full text
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Summary:Originality/Value: Results of the study reflect that IDR concerns the possibility of debt service, but it cannot be a measure of financial condition, because in local government units there are liabilities not only classified as debt obligations. The omission of these obligations and their impact on the financial condition makes the information value of IDR imperfect and incomplete. It is difficult to indicate the optimal solution that would fully reflect the current financial condition. It is possible as well as from the point of view of additional workloads, difficult to implement in practice.
ISSN:1108-2976