Management of Non-current Assets and Capital Investments in Enterprises of the Agro-industrial Sector: A Case Study of Ukraine

Abstract

In the article we proved that, in the modern conditions of doing business in Ukraine, there is a high specific weight of operating non-current assets in the non-current assets of agricultural enterprises, which is caused by their production direction and sale of products in wholesale lots. In order to study the formed trend, the polynomial trend line of the specific weight of operating non-current assets in the composition of non-current assets of agricultural enterprises in Ukraine is displayed. The features of non-current asset management in agriculture are determined by certain features regarding their use, which include the slowness of capital movement, uneven loading, the irrationality of formation, and low liquidity. In the article, we established that the value of long-term biological assets of agricultural enterprises of Ukraine increased during the research period. However, at the same time, there was a simultaneous reduction in the specific weight of these assets, both as part of the total assets of enterprises and as part of non-current assets. That is, it can be concluded that the increase in the value of biological assets in agricultural enterprises is caused solely by the increase in prices for finished products and an increase in their cost price. Based on the results of the study, it was established that during the analyzed period, investments in the agricultural sector had a growing trend for a long time. Drop in investments that occurred in 2020-2021 was due to the crisis impact of the COVID-19 pandemic, which resulted in a general reduction in investment activity in the markets. According to the results of the analysis of the relationship between the size of capital investments and the level of profitability of enterprises in the agrarian sector of Ukraine, such interdependence was found in the studied period for medium-sized and small agricultural enterprises. According to the results of our research, cartograms of the grouping of regions of Ukraine by the specific weight of capital investments in tangible and intangible non-current assets of the agricultural industry of Ukraine in January-December 2020 were built, which allows realizing the visualization of the presentation of the obtained scientific results. In addition, from the research results we obtained, we can draw a conclusion about the high attractiveness of medium-sized enterprises in the agrarian sector as an object for capital investment.