Features of the Assessment of the Probability of Bankruptcy of Ukrainian Agricultural Enterprises

Abstract

The aim of the study is to develop the concept of a comprehensive assessment of the probability of bankruptcy of agricultural enterprises of Ukraine, taking into account the specifics of agricultural activities. We identified the main threats to agricultural activity and their impact on increasing the probability of bankruptcy of an agricultural enterprise; the factors that increase the probability of bankruptcy for enterprises of the agrarian sector of Ukraine are summarized. To achieve this aim, the following research methods and techniques were used: method of expert assessments, comparative analysis approach, analysis and synthesis methods (in developing the concept of assessing the probability of bankruptcy); coefficient method of relative indicators (when studying models of estimating the probability of bankruptcy); monographic technique (for in-depth study of individual types of factors influencing the likelihood of bankruptcy); graphical and tabular method (when presenting the results of the study). The concept of a methodology for assessing the probability of bankruptcy of agricultural enterprises, which takes into account informal factors, has been developed. The application of the developed methodology provides the agricultural enterprise with the opportunity to respond in a timely manner in order to prevent the financial crisis and bankruptcy. The proposed approach can be used as an element of assessing the insurance risk or investment attractiveness of agricultural enterprises. Subject to adaptation, the technique can be used in foreign practice. General recommendations for agricultural enterprises with a high probability of bankruptcy are: formation of an effective, effective strategy for making management decisions on the attraction, distribution and use of financial resources; creation of reserve funds for stocks of the most important resources and funds to cover possible expenses; increasing the competitiveness of products; diversification of risks of non-competitiveness of the enterprise; increasing turnover of current assets; optimization of the ratio of own and borrowed funds, etc.