Tamara Stojanović University of Banja Luka, Faculty of Agriculture, Republic of Srpska, BiH

Ljiljana Drinić University of Banja Luka, Faculty of Agriculture, Republic of Srpska, BiH

Our research focuses on the most important indicators of the livestock producers' financial position calculated from the available financial statements. The analysis cover financial data of approximately 85 livestock producers and 315 agricultural companies for the six year period (2010-2015) and is based on the scientific and research methods such as: trend analysis, compilation and comparison, structural analysis, descriptive statistics, calculation of financial indicators and method of inference. The analysis results show that the financial position of livestock production companies in the Republic of Srpska is not acceptable. This means that the livestock industry does not meet the requirements of liquidity (current ratio and quick ratio are below the criteria and the industry average), level of indebtedness (high and above the industry average), interest coverage (negative in average) and solvency level (below the criteria and industry average). Such results indicate that the livestock industry has serious financial problems and needs both internal and systemic measures in order to become more efficient and therefore more profitable and financially sustainable.