Forecasting bankruptcy models for agrarian business

Abstract

The increasing practical significance of forecasting tools in the agricultural business arises from the requirements of legislation on strategic planning. Solving the problem of foreseeing bankruptcy in foreign practice is carried out through the use of a step-by-step discriminant analysis methodology. The most common solvency forecasting models developed by Western European and Russian scientists in scientific research have been systematized. Their analytical and functional capabilities are summarized, and the need for their application in domestic practice to supplement existing tools of bankruptcy diagnostics with the means of its prediction is shown. These models, along with the method of assessing insolvency, will allow for a comprehensive survey of agribusiness entities, improving the business reputation of agriculture and acting as instrumental support for issuing guarantees to free capital owners about the financial status of producers in the future.