Financial Stability Indicators Research Articles

COVID-19 pandemic, oil prices and Saudi stock market: empirical evidence from ARDL modeling and Bayer–Hanck cointegration approach

In 2020, the world experienced several significant events, including the coronavirus (COVID-19) pandemic and the collapse of international crude oil prices. The rapid spread of this pandemic has dramatic impacts on financial markets all over the world, thereby increasing market risk aversion in an unprecedented way since the subprime financial crisis. The decline in stock markets implied volatilities of equity and oil prices, thereby heightening turmoil in global financial markets despite comprehensive and substantial financial reforms. To this end, we investigated the likely effects of this pandemic on the Saudi stock market while controlling for oil prices based on daily data for a period from 1/1/2020 to 19/9/2022. To ascertain the existence of a long-run equilibrium relationship between the variables, we applied autoregressive distributed lag (ARDL) modeling and the error correction model, with this ultimately revealing the existence of strong cointegration in the long run. The ARDL bounds test was found to be robust by combined cointegration tests, thus providing further evidence of a strong relationship in the long run. Granger causality tests also yielded evidence of causality between the variables in both directions. The total COVID-19 confirmed cases and oil prices also caused movements in stock returns in the short run. Our findings have some prominent implications for asset managers and policymakers to improve stock market efficiency and boost global economic activity. Saudi authorities can consequently remove the regulatory and legal obstacles to develop their stock market and better improve the risk management, which will allow to make quick decisions in response to any oil price volatilities. Policymakers should also adopt proactive strategies that can comfort stock investors’ anxieties over the increasing oil price volatilities. Finally, the findings should be treated with some cautions because of the limited sample size and the tests’ statistical inference. Nevertheless, they do open opportunities for further studies to look in more detail at how the COVID-19 pandemic affected, over the short and long run, monetary and fiscal policy coordination, financial stability, and various other macroeconomic indicators in Saudi Arabia.

NPV, IRR, PI, PP, and DPP: a unified view

This paper introduces a class of investment project's profitability metrics that includes the net present value (NPV) criterion (which labels a project as weakly profitable if its NPV is nonnegative), internal rate of return (IRR), profitability index (PI), payback period (PP), and discounted payback period (DPP) as special cases. We develop an axiomatic characterization of this class, as well as of the mentioned conventional metrics within the class. The proposed approach offers several key contributions. First, it provides a unified interpretation of profitability metrics as indicators of a project's financial stability across various economic scenarios. Second, it reveals that, except for the NPV criterion, a profitability metric is inherently undefined for some projects. In particular, this implies that any extension of IRR to the space of all projects does not meet a set of reasonable conditions. A similar conclusion is valid for the other mentioned conventional metrics. For each of these metrics, we offer a characterization of the pairs of comparable projects and identify the largest set of projects to which the metric can be unequivocally extended. Third, our study identifies conditions under which the application of one metric is superior to others, helping to guide decision-makers in selecting the most appropriate metric for specific investment contexts.

Peculiarities of regulation of the insurance market in Russia and Kazakhstan

The paper examines the theoretical and practical aspects of mega-regulation of the insurance market in Russia. The author has made an attempt to identify the main trends in improving the activities of the Bank of Russia as a mega-regulator in the insurance market of Russia.The article provides an overview of the interpretations of the term "mega-regulation" in the works of Russian and foreign economists. A comparative analysis of the main indicators of the development of the insurance market in Russia and Kazakhstan, such as the fulfillment of basic prudential standards by Russian and Kazakh insurers and the number of insurance organizations, insurance brokers and actuaries; an analysis of relative indicators: the return on equity of insurers and indicators of financial stability of insurers in both countries. Based on the analysis, the peculiarities of the regulation of the insurance market in Russia and Kazakhstan were identified and ways to improve the regulator in both countries were proposed.

Disparities in Correlation Between Total Revenue and EPS: The Influence of R&D and Regulatory Environments in Tech and Pharmaceutical Industries

In the realm of financial analysis, discerning the correlation between total revenue and Earnings Per Share (EPS) serves as a pivotal indicator of a corporations financial stability and potential for growth. This research navigates through the divergent pathways of the tech and pharmaceutical industries, elucidating a marked correlation in the former and a distinctly subdued one in the latter. By immersing into an incisive analysis that encompasses industry-specific attributes, market dynamics, and financial protocols, this paper not only shines a light on the disparities in the revenue-EPS correlation across these industries but also posits that the divergences can be substantially attributed to the disparate R&D investment strategies and regulatory environments that inherently characterize them. The encapsulated findings offer a refined lens through which the financial undercurrents of pivotal industries can be examined, providing foundational insights for investors and policy-makers alike.

Analysis of public, private and foreign-owned enterprises: Assessment of efficiency and sustainability

Subject. The article addresses the efficiency and sustainability of public, private, and foreign-owned enterprises. Objectives. The aim is to develop and test a methodology for analyzing the said enterprises. Methods. The study rests on general scientific principles and research methods, like abstraction, generalization of approaches to the analysis of enterprises of different forms of business ownership. Results. I developed a methodology, which includes three stages. First, estimating the share of enterprises of different forms of ownership in total assets, revenue, and profit, and analyzing the sectoral and regional sample structure and enterprise size. Second, assessing the short-term and long-term efficiency, with analysis of profitability indicators, long-term dynamics, and investment activity. Finally, analyzing the adaptability of enterprises of different forms of ownership to changed conditions, and evaluating the indicators of financial stability, riskness, and dynamics for 2022. Conclusions. I tested the methodology on data from large Russian consolidated businesses (a total of 593 enterprises for 2018–2022). The calculations and analysis showed that private business prevails in assets, revenue, and net profit. For State-owned enterprises, the most significant industry is oil and gas production, for foreign-owned ones – production and distribution of electricity, gas and water, for private enterprises – retail trade. Higher profitability is typical for foreign and private enterprises. The analysis of adaptability to current conditions showed that revenue growth rate in 2022 did not decrease vs. the annual average for all groups of enterprises, however, profit and profitability indicators deteriorated. In general, large consolidated public, private, and foreign-owned business demonstrated a relatively high degree of stability in 2022 with a decrease in profit and profitability, and now it continues investment activity.

Assessment of Financial Stability Indicators of Organizations

A reliable assessment of the financial stability of an organization plays an important role in the prosperity, expansion and stability of any organization. It is important to understand that bankruptcy is not always a sign of a failed business or the debtor's insolvency. In some cases, bankruptcy is used as a debt restructuring tool, especially in situations where financial difficulties have arisen due to temporary circumstances. This article examines the indicators that affect the strategic management of an organization, analyzes the methods of preventing bankruptcy of organizations. The author provides recommendations that can help the company cope with financial difficulties and avoid bankruptcy.

СОВЕРШЕНСТВОВАНИЕ МЕТОДИКИ ИНТЕГРАЛЬНОЙ ОЦЕНКИ ФИНАНСОВОЙ УСТОЙЧИВОСТИ ОРГАНИЗАЦИЙ

When assessing the financial condition of organizations in general and their financial stability, in particular, a variety of individual indicators is used, which complicates the analysis process and makes it difficult to develop reliable recommendations for the rational use of financial resources. In the presented study, to eliminate these shortcomings, we recommend conducting an integral assessment of the financial stability of organizations, which will be based on the parameters obtained as a result of the analysis of the main components of the financial condition of a business entity. The study substantiates a system of indicators (coefficients of autonomy, provision of inventories with own funds, provision with own funds, ratio of borrowed and own funds, absolute liquidity, mobility of property, financial stability), used for an integral assessment of the financial stability of organizations. Determining the significance of these indicators was carried out using the method of correlation and regression analysis, carried out on the basis of data from a homogeneous set of related production enterprises in the Voronezh region. The integral indicator of financial stability was tested, rather wide limits for the integral indicator were identified and it was determined that the largest number of enterprises under study (57.9%) belong to the middle group in terms of financial stability. The proposed algorithm for calculating the integral indicator of financial stability will not only make it possible to timely and objectively assess the financial stability of an economic entity, identify emerging threats of a drop in efficiency and a slowdown in the pace of economic development, but will also provide greater objectivity in assessing the financial and economic activities of organizations and can be used in the basis for developing strategic plans for the development of the enterprise and optimizing the structure of financial resources.

Parenting Students and Indicators of Financial Stability, Health, and Academic Success: Findings from a Population-Based Sample of Public Urban University Students.

Parenting students constitute a significant portion of the college population, with 22% of undergraduate students nationwide managing the dual responsibilities of parenthood and education. Single-parenting students face disproportionate challenges to achieving academic success. This study examines the health, financial, and academic aspects of parenting students attending a large, urban public university, specifically comparing single parents to their married or cohabiting counterparts and non-parenting students in New York City. We collected data from 2104 participants, including 142 single parents and 119 married or cohabiting parents, through a cross-sectional survey. Using adjusted regression models, we evaluated the associations between parenting status and financial, health, and academic factors. Our findings reveal that, in comparison to non-parents, single parents are significantly more likely to carry debt (adjusted odds ratio [aOR] 1.81), rely on food assistance (aOR 5.03), and achieve slightly lower GPAs (β - 0.11). Single parents also work more hours (aOR 1.66) and have an increased likelihood of facing debt (aOR 2.66), housing difficulties (aOR 2.80), food insecurity (aOR 2.21), and lower GPAs (β - 0.22) compared to their married or cohabiting peers. The disaggregation of single and married or cohabiting parents reveals significant disparities, emphasizing the vulnerability of single-parenting students in higher education. Targeted interventions addressing issues like food security and housing are essential to support the academic success of single parents.

Cash Flow Ratios and Business Failure of Healthcare Firms in Nigeria

The study examined cash flow ratios as predictors of business failure of healthcare firms in Nigeria. The objectives of the study were to ascertain the effect of operating cash flow ratio, cash flow to debt ratio, and price to cash flow ratio on Altman’s zeta score of healthcare firms in Nigeria. The study adopted ex-post-facto research design, covering a period of 10 years (from 2013 to 2022). Secondary data used for the study were extracted from annual reports and accounts of selected healthcare firms listed on the Nigeria Exchange Group (NGX) from 2013 to 2022. Multiple regression technique was used to test the hypotheses. The result of the test of hypotheses revealed that the operating cash flow ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.3397). The finding also indicates that the cash flow to debt ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.2937). Lastly, the finding reveals that the price to cash flow ratio has a non-significant positive effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.5281). The policy implications of these findings suggest that when assessing the financial health and bankruptcy risk of healthcare firms in Nigeria, policymakers and regulators should consider factors beyond cash flow ratios. It was recommended therefore that healthcare firms in Nigeria should diversify their sources of cash flow beyond operating cash flow to improve financial stability and mitigate bankruptcy risk. Healthcare firms should have a careful evaluation of debt management practices is necessary to maintain a healthy balance between cash flow generation and debt obligations in healthcare firms. Market sentiment reflected in the price to cash flow ratio should not be relied upon as the sole indicator of financial stability. Healthcare firms should prioritize fundamental financial and operational indicators to assess their financial health and mitigate bankruptcy risk.

The analysis of financial position and profitability of agricultural and food manufacturing companies

The analysis of financial position and profitability of companies is usually based on time and space comparison. The financial position is considered as status and relation between assets, liabilities and equity presented in the financial statement known as Balance Sheet. This financial statement is the source of basic financial position indicators such as: liquidity (acid test and current liquidity), financial stability, financial structure, interest coverage and solvency. Financial performance, i.e. profitability can be measured on the basis of Income Statement data, by using the indicators such as: revenues structure, profits (losses) and profitability ratios. In order to analyze financial position and profitability of agricultural and food producing companies in the Republic of Srpska, we have used the balance sheets and income statements of companies registered as legal entities from 2014-2018. The analysis covered 615 companies in average (330 companies in agricultural sector and 285 companies in food industry). Although among agricultural companies there are those who have good financial position, observing the whole sector as one entity, it is obvious that the majority of agricultural producers’ financial position is somewhere between acceptable and weak (acid test – 0.5 in average; financial stability indicator above 1.0; 70% of financial sources relates to debts; solvency - only 1.4 in average). Such, rather unacceptable financial position is also confirmed by profitability indicators which lead to conclusion that the agricultural sector in not successful regarding the ability to provide returns on total assets (ROA is 0% in average during the whole period). However, the returns on equity are a little bit better (ROE from 2-5%), but they can also indicate the low level of equity in large number of agricultural companies. Food industry is in a similar situation relating to the financial position – the financial position of the majority of companies is between acceptable and weak (acid test – 0.6 in average; financial stability indicator – 0.8 in average; 70% of financial sources relates to debts; solvency - only 1.5 in average). However, their profitability indicators are much better than those of agricultural sector. Return on assets (ROA) was from 1-3%, while return on equity (ROE) varied between 7% and 11%. Nevertheless, the variations between individual companies are significant. Therefore some companies have extremely good indicators of financial position and profitability, while the majority of companies are not the position to achieve such results.

The Relationship Between Financial Stability and Credit Supply: Evidence from Iraq

Objective: The study aims to investigate the impact of bank credit on financial stability in the Iraqi economy and to reveal trends in bank credit in the Iraqi economy.
 
 Method: We use the Vector Error Correction Model (VECM) and the Granger causality to assess the role of bank credit in strengthening financial stability in the Iraqi economy for the period 2006 to 2021.
 
 Result: We provide evidence on the presence of a long-term relationship between bank supply and all indicators of financial stability. In the short term, a positive association is documented between bank credit and capital adequacy ratio.
 
 Conclusion: Several conclusions could be drawn from our analysis of the evolution of bank credit and financial stability indicators, as well as from our empirical investigation of the relationship between them. The bank credit has been steadily increasing from 2006 to 2021. The capital adequacy ratio (CAR) was very high over the period 2006-2021, exceeding the standard ratio set by the Central Bank of Iraq, which is 12%. This reflects the soundness of the banking system in Iraq. However, the return on equity declined from 27.1% in 2010 to 5.15% at the end of the study period in 2021. Using the VECM model and Granger causality, we provide evidence that bank credit affects financial stability through multiple channels. Thus, the Iraqi central bank should use the tool of credit supply to enhance financial stability.

DIGITALIZATION OF RISK-ORIENTED MANAGEMENT OF FINANCIAL AND ECONOMIC SECURITY OF THE BANK

The scientific results of the study are to determine the current trends of digitalization of risk-oriented management of banking activities to justify the directions of increasing the level of financial and economic security of Ukrainian banks in the context of the Russian-Ukrainian war and considering the needs of economic recovery. The expediency of using indicators of financial stability, which are published by the National Bank of Ukraine under martial law, has been proven, namely: the capital of the first level to the assets weighted by risk; the ratio of the capital of the first level to assets; non-performing loans excluding provisions for capital; non-performing loans to aggregate gross loans; rate of return on assets; net open position in foreign currency to capital. It is determined that modern banks introduce innovative digital solutions aimed at risk-oriented management of financial and economic security in a continuous real-time mode. Some procedures are performed automatically, and it is possible to use artificial intelligence programs, but these innovations must be managed carefully because we are talking about the financial security of millions of bank customers and the financial and economic security of banks, as well as the financial stability of the banking system of Ukraine. It has been substantiated that prospects for further research should be developed in the areas of economic recovery in Ukraine, by strengthening the banking system and developing digitalization of risk-based management of financial and economic security of banks using best practices and international experience. For a more objective assessment of the level of financial and economic security of Ukrainian banks, it is advisable to apply economic standards, regarding banking risks, indicators of financial stability, and the financial stress index, which together reflect the bank’s propensity for force majeure in the financial system, the ability to resist and adapt to adverse changes, and various economic challenges.

Microprudential Indicators of Financial System Stability: An AHP Approach

In general there are two indicators of financial system stability, namely microprudential and macroprudential. Among macroprudential indicators are economic growth, balance of payments, inflation rate, interest and exchange rates, crisis contagion effect, and many others. Different from the previous researches concerning financial system stability measurement, this research will use the financial and banking practitioners' perspective regarding the leading indicator in measuring financial system stability so that we can presumably determine the real leading financial stability indicator for the current situation using Analytic Hierarchy Process (AHP) method. This study will look at the indicator of financial system stability from a microprudential perspective in Indonesia. The results show that based on the results of interviews with experts/banking practitioners, the 3 (three) most important aspects are Capital & Asset (0.187), Profitability (0.186) and Asset Quality (0.177). Important indicators of financial system stability from the next microprudential aspect are Liquidity (0.176), Market-based Indicators (0.139) and finally Risk Sensitivity (0.136). The Macroprudential Policy and microprudentials issued by Bank Indonesia as the central bank that has full authority, play an important role in maintaining Financial System Stability (SSK) in Indonesia.

Identifying the nexus between financial stability and economic growth: the role of stability indicators

PurposeThis study aims to examine the interrelationship between financial stability and economic growth with a comprehensive analysis.Design/methodology/approachThe panel Granger causality testing approach is carried out to the panels of the Fragile Five (F5) and the Group of Seven (G7) countries for the period 1998–2020. To capture the different aspects of financial stability the authors use eight different indicators.FindingsThe findings reveal some important implications: the relationship between financial stability and economic growth is sensitive to the financial stability indicators for both the F5 and G7 countries. The stability indicators related to the credit market contain much more causality relationship with economic growth than the indicators related to the stock market. Z-score and provisions to nonperforming loans (NPLs) are among the two variables with the highest causality relationship with economic growth. The least number of causality link is found for the Regulatory Capital Ratio and Stock Price Volatility in F5 countries and Credit Ratio, NPLs and Stock Price Volatility in G7 countries. Economic growth affects financial stability through credit market stability indicators and mostly for the F5 countries. No causal relationship is found for any of the financial stability indicators of Canada, the UK and the USA from economic growth to financial stability.Originality/valueSince the linkages between financial stability and economic growth may vary due to country/group specific differences, apart from the previous studies, the authors select two different groups of countries in terms of financial stability and economic size.

СУЧАСНІ ПІДХОДИ ДО ОЦІНКИ ФІНАНСОВОЇ СТІЙКОСТІ ПІДПРИЄМСТВА

This article examines modern methodical approaches to assessing the level of financial stability of an enterprise. The location of the analysis of the level of financial stability as a component of a comprehensive study of the financial state of the enterprise is determined. The main approaches to the analysis of the level of financial stability of the enterprise are considered.It was determined that the aggregate approach to the assessment of the financial stability of the enterprise involves the analysis of absolute indicators of financial stability. The absolute indicators of financial stability are considered, which characterize the degree of supply of reserves and expenses by the sources of their formation. Four types of financial stability of the enterprise are characterized. The coefficient approach to the assessment of financial stability was studied, which involves the analysis of relative indicators of financial stability and their comparison with the recommended (normative) values of financial stability. The main indicators of financial stability within the limits of the coefficient approach are considered. The marginal approach was analyzed, which allows to estimate the margin of financial stability, which provides a certain level of protection of the main activity of the enterprise at the moment. Indicators within the margin approach were considered: marginal income, profitability threshold, safety zone, as well as indicators of operational, financial and operational-financial leverage. The basics of using a point-based approach to assessing the level of financial stability, which is implemented on the basis of a formed point-based assessment, have been studied.Within the framework of the use of an integral approach to the assessment of the financial stability of the enterprise, the peculiarities of the formation and use of the integral indicator are determined. Peculiarities of using point and matrix approaches to assessing the financial stability of the enterprise are considered. It was determined that the matrix approach to assessing the financial stability of the enterprise is one of its most effective tools. It is based on a matrix model that reflects the results of all the financial work of the enterprise, gives a qualitative description of the efficiency of activities and helps to understand at what cost they were achieved. Peculiarities of forming the matrix balance and the balance of differences are considered. It is emphasized that the matrix balance at the end and the beginning of the year has a static character (on a certain date), and the matrix balance of differences characterizes changes, therefore it has a dynamic character.

ФІНАНСОВА БЕЗПЕКА ВІДНОСИН ІНОЗЕМНОГО ІНВЕСТОРА З УПРАВЛІНСЬКОЮ КОМПАНІЄЮ В ПАРАДИГМІ «АСИМЕТРІЇ ІНФОРМАЦІЇ» ТА «МОРАЛЬНОГО РИЗИКУ»

The article is devoted to scientific analysis and characterization of the foreign investor's (the subsidiary owned by such investor) relations with the management company. The high level of information asymmetry and moral risk in relations between foreign investors and management companies was emphasized. The main advantages and disadvantages of transferring the functions of the executive body to the management company were highlighted (more effective management – on the one hand and higher risks of breaching non-compete or non-disclosure rules, higher expenses – on the other hand). The current state of legislative regulation of the status of the management company was analyzed. It was suggested to enshrine recommendations in legal acts regarding: financial indicators (the size and the form of payment of the share capital, the volume of net assets, indicators of financial stability and sustainability), qualification, skills, experience, and education of employees, premises, technical and software indicators, non-compete and non-disclosure rules, which the management company should meet. Institutional analysis of the agreement on transferring the functions of the executive body to the management company was carried out, main distinctions of this kind of agreement from the agency agreement, the mandate contract, the service agreement, and the property management contract were explained. It was proposed to determine the agreement on transferring the functions of the executive body to the management company as the business-law contract, according to which the legal entity-management company undertakes to provide managerial services for the company, to perform the functions of the executive body, stipulated by the corporate legislation and the charter of the company, is empowered to dispose the property and to make transactions on behalf and in the interests of the company, and shall receive payments for such services from the company. Practical recommendations regarding improvement of legal regulation of relations with the management company were given in order to increase the investment attractiveness of Ukraine.

Capital flight from BRICS nations: Does every cloud have a silver lining?

This study investigates the potential determinants of capital flight from BRICS countries. We use the residual method to estimate capital flight and employ GMM testing approach. We find a surge in the volume of capital flight from BRICS especially in the aftermath of global financial crisis. The empirical results suggest that, past values of the capital flight, real GDP growth rates, exchange rate depreciation, unemployment rate, business confidence index and financial stability indicator as significant factors causing resident capital outflows from BRICS nations. These findings call for an effective policy framework by the fiscal and monetary authorities.

СТАН ТА ЗАБЕЗПЕЧЕННЯ ФІНАНСОВО-ЕКОНОМІЧНОЇ БЕЗПЕКИ ПРОМИСЛОВИХ ПІДПРИЄМСТВ В УМОВАХ ЦИФРОВІЗАЦІЇ ЕКОНОМІКИ

In the conditions of the development of the digital economy, the variability of factors in the market environment, and the increase in the level of competition, an important issue for enterprises is the stability of functioning, the growth of indicators of financial activity. It was determined that the efficiency of enterprises, protection against threats, risks, detection of the influence of negative factors of the external environment largely depend on the state of economic security. It has been proven that an important component of economic security is financial security, the efficiency of financial activity depends on its stability, and the financial stability of the enterprise. It was found that in the conditions of digitalization of the economy, it is important to increase the level of financial and economic security, which will affect the performance of the enterprise, will allow to protect it from the influence of threats and risks, to form measures to neutralize their influence. The role of financial and economic security in the work of the enterprise was studied and its principles were determined. The analysis of the dynamics of the number of enterprises that carried out electronic trade in Ukraine was carried out and the importance of cyber security was established, which also affects the indicators of financial and economic security. The indicators of liquidity and financial stability were analyzed and an integral assessment of the financial and economic security of PJSC "Zaporizhstal" was carried out. The problems of achieving financial and economic security of PJSC "Zaporizhstal" were identified, and measures and directions for ensuring financial and economic security were formed, namely: attraction of funds in the form of international aid; creation of a financial and economic security management system; implementation of the strategy of financial and economic security; assessment of the state of financial and economic security and formation of appropriate measures; professional development of personnel; formation of reserves to improve the security situation; use of modern software products; reduction of operating costs due to optimization and digitization of online and offline operations; saving resources; introduction of new technologies and production of new types of products; development of management systems and quality assessment of individual technical works. Solving the issues of ensuring economic security in the conditions of digitalization will allow to improve financial and economic activity, to form competitive advantages and to determine directions of development.

ASSESSMENT OF THE POTENTIAL OF MANAGEMENT OF INNOVATIVE ACTIVITIES OF ENTERPRISES IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

ASSESSMENT OF THE POTENTIAL OF MANAGEMENT OF INNOVATIVE ACTIVITIES OF ENTERPRISES IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Фінансові результати діяльності сільськогосподарських підприємств в довоєнний і воєнний період

The financial results of business entities are an important indicator of the state of the industry, based on which operational and systemic decisions are made regarding the determination of development priorities, regulatory and legal regulation, budget financing, taxation and other state management mechanisms. Timely identification of existing trends and possible risks and a comprehensive assessment of the influence vectors and dependencies of all economic activity components, especially in martial law conditions, allows for more balanced and effective decisions capable of ensuring stable long-term development. The article aims to identify the latest trends in the formation of financial results of agricultural enterprises and assess the prospects of their growth in the conditions of war and post-war reconstruction. The article examines a set of indicators characterizing the financial results of agricultural enterprises over the past decade. The main trends regarding the dynamics and volumes of critical financial indicators of enterprises, including the individual branches of agricultural products, have been clarified. The main factors influencing the financial results of enterprises, changes in the structure of their financial assets and liabilities, and individual indicators of financial stability and solvency are determined. The study results show that in the pre-war period, agricultural enterprises' financial results steadily improved, reaching their historical maximum in 2021. Such a trend indicated the real prerequisites for further qualitative growth of the agricultural industry. In martial law conditions, most of the positive trends slowed down significantly. At the same time, the preservation of the financial potential of agricultural enterprises and the prospects for their growth depend, first of all, on the duration of the war and the possibilities of state support.