Analysis and recommendations for improving the financial stability of agricultural production

Abstract

Improving the financial stability of enterprises producing agricultural products is a priority direction of activity control. The analysis of financial activity of the enterprise producing agricultural products is presented. To assess the overall dynamics of financial stability, a horizontal and vertical analysis of the analytical balance sheet was carried out. The analysis of the main indicators of financial stability was carried out, the analysis was carried out using absolute indicators based on a comparison of the value of reserves and costs with sources of financing. As a result of the conducted research, it was revealed that the positive results of production and financial activities also contributed to the increase in the well-being of the enterprise owners in 2018-2020. The level of profitability on equity in 2018-2020 increased significantly (by 2.45% and 34.36% points). The only factor that played a negative role in this was the growth of the leverage ratio. Based on the data obtained, recommendations are made to improve the financial stability of the enterprise.