The methodological aspects of assessment of solvency and liquidity of agricultural enterprises

Abstract

In modern conditions, the search for opportunities to strengthen the financial position and increase financial stability becomes a priority task of business entities, which is solved by means of a comprehensive systematic analysis of the enterprise. The purpose of the paper is to analyze the existing methodological approaches to assess the liquidity and solvency of an agricultural enterprise and to determine the directions of their improvement. Solvency is the presence in the enterprise of funds for repayment by them in due time and in full of their debt obligations arising from credit and other transactions of a monetary nature. Liquidity is a way to maintain solvency. Liquidity of an enterprise includes the concepts of liquidity and balance sheet liquidity. The article summarizes the classification of assets and liabilities of the balance sheet and defines the conditions of its absolute liquidity. The method of estimation of solvency and liquidity indicators is presented. The main factors, that influence the on the level of solvency of an agricultural enterprise, are summarized: nature of the enterprise activity, stock status, terms of settlements with debtors, state of accounts receivable. Areas of increase of solvency are distinguished: ensuring balance of assets and liabilities, increase of sales volumes and reduction of expenses, coordination of plans of production and sale, ensuring of uninterrupted work of the enterprise, attraction of long-term loans for financing of capital expenses, rational management of available financial resources, including determination of optimal volumes of production stocks control over the shipment of products, compilation of receivables, management of receivables, the collection of receivables in the next period, the use of modern forms of refinancing.