Formation of analytical tools of capital reproduction in the agricultural sector of Ukraine
Purpose. The purpose of the article is to form analytical tools for the capital reproduction in the agricultural sector of Ukraine’s economy for substantiation of management decisions to ensure its continuous recovery, progressive growth of its value on the basis of positive qualitative changes in capital at its optimal structural proportions.
Methodology / approach. Such scientific methods were used in the article to achieve the purpose of the research: structural and logical analysis – to form a holistic conceptual approach to research; comparison – to substantiate the peculiarities of the reproduction of capital at the macro level and in the agricultural sector of the economy; statistical method – for processing information that characterizes the value and structural proportions of capital of economic entities in the agricultural sector of the economy.
Results. Elaboration of analytical indicators of the passive part of the balance of economic entities of agriculture, forestry, fisheries of Ukraine revealed that there is an increase of equity capital relative to its cost value, but a decrease in its share in the total capital structure, namely a decrease of cost estimate of equity capital relative to borrowed capital occurs 3.5 times more intensely; during 2010–2018, total capital, equity capital and gross value added of enterprises of the national economy of Ukraine, as well as the agricultural sector of the economy showed sustainable growth, but in the agricultural sector of the economy there was a decrease in the share of gross value added in total capital of enterprises that proved the tendency of potential narrowing the sources of ensuring the reproduction of capital; during the study period, the level of real capitalization in the agricultural sector of Ukraine's economy decreased significantly; dynamic changes in indicators of financial stability of agricultural enterprises confirmed that in 2018 agricultural enterprises were able to finance their assets at the expense of equity by only 49 % (in 2001 – 66%), financial stability of agricultural enterprises in 2018 lagged behind the optimal allowable value by 12 percentage points, in contrast to 2001 (exceeding the optimal allowable value by 3 percentage points), which encouraged an increase of financial risks in agriculture.
Originality / scientific novelty. Financial diagnostics of cost and structural characteristics of capital of economic entities in the agricultural sector of Ukraine`s economy revealed that in the agricultural sector there is a paradoxical situation: the dynamics of retained earnings growth in the structure of equity capital, accompanied by declining dynamics of equity in the total amount of total capital and narrowing of cost estimates of equity in relation to GDP. It is proved that the formation of optimal proportions of capital is one of the factors ensuring expanded reproduction of capital, therefore, the mechanism of implementation of financial policy of capital reproduction should be aimed at increasing internal sources of capital formation and optimizing the structure of total capital. Given that the agricultural sector of Ukraine with its basic component, farming, is a system-forming component in the national economy and forms the basis for preserving the sovereignty of the state (food, economic, environmental and energy security within certain limits), we assume that further accumulation of negative trends from the perspective of values and structural proportions of capital in the agricultural sector of Ukraine's economy may be the basis for the acquisition of a state of financial fragility in the economic system as a whole.
Practical value / implications. To harmonize certain norms of capital formation of Ukrainian enterprises, it is proposed to take into account the «fixed capital system», enshrined in the second EU Directive and to establish at the legislative level the procedure for capital formation for limited liability companies (LLCs): guaranteed real contribution of authorized capital should be at the level of the cost values of net assets of the company; to consider such level as the minimum admissible.
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