Abstract
The main conceptual principles of financial management of agricultural enterprises' liquidity and solvency are investigated in the article. The purpose is to identify the relationship between the competitive strategies of agricultural enterprises and their financial indicators of liquidity and solvency. To achieve the goal of the study was divided into two main phases. First, the relationship between competitive strategies of agricultural enterprises and their financial results was examined. Four strategic variables were selected to represent competitive strategies: type of activity; the degree of diversification; liquidity level; and the level of solvency. The financial performance of an agricultural enterprise was represented by five variables: return on assets, return on equity; asset turnover; current liquidity; fast liquidity. The following key variables were selected to represent agricultural enterprise strategies: direction; method; diversification; financial planning; functionality; resource; financial performance indicators; and determining indicators of financial and economic activity. The results showed a significant correlation between the competitive strategies of agricultural enterprises and their financial indicators of liquidity and solvency. The type of activity is related to profitability, solvency and liquidity. Profitability was also influenced by the level of production diversification. However, the degree of diversification and scale of production had strong links with turnover; it was found that agricultural enterprises consider expansion through internal expansion as their most important development strategy. Innovation and advanced technology were seen as important functionalities of the strategy. Management, skilled workers and cash are the three most critical resources. Cash flow was considered to be the most important financial performance indicator, although the market was seen as the most important determining indicator of financial performance of liquidity and solvency.
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