Financial resilience of agricultural and food production companies in Spain: A compositional cluster analysis of the impact of the Ukraine-Russia war (2021-2023)

ArXiv ID: 2504.05912 “View on arXiv”

Authors: Unknown

Abstract

This study analyzes the financial resilience of agricultural and food production companies in Spain amid the Ukraine-Russia war using cluster analysis based on financial ratios. This research utilizes centered log-ratios to transform financial ratios for compositional data analysis. The dataset comprises financial information from 1197 firms in Spain’s agricultural and food sectors over the period 2021-2023. The analysis reveals distinct clusters of firms with varying financial performance, characterized by metrics of solvency and profitability. The results highlight an increase in resilient firms by 2023, underscoring sectoral adaptation to the conflict’s economic challenges. These findings together provide insights for stakeholders and policymakers to improve sectorial stability and strategic planning.

Keywords: Cluster Analysis, Financial Ratios, Compositional Data, Solvency, Profitability, Equity

Complexity vs Empirical Score

  • Math Complexity: 5.0/10
  • Empirical Rigor: 3.0/10
  • Quadrant: Lab Rats
  • Why: The paper uses compositional data analysis (centered log-ratios) and cluster analysis, which involve advanced statistical methods (moderate math complexity), but the empirical side is limited to analyzing a static dataset of financial ratios without backtesting, simulations, or code implementation, focusing on descriptive results for stakeholders.
  flowchart TD
    A["Research Goal: Assess financial resilience of Spanish agri-food firms<br>amid Ukraine-Russia war"] --> B["Data Collection<br>1197 firms (2021-2023)"]
    B --> C["Compositional Transformation<br>Centered Log-Ratios (CLR) of financial ratios"]
    C --> D["Compositional Cluster Analysis<br>Group firms by solvency & profitability"]
    D --> E["Cluster Identification<br>Silhouette validation"]
    E --> F["Key Findings:<br>• Distinct clusters (Resilient, Stable, Vulnerable)<br>• Resilient firms increased by 2023<br>• Sectoral adaptation insights"]
    F --> G["Outcomes: Policy & Strategic Planning"]