Factor analysis of financial and economic results of the activity of agricultural enterprises
Bechko V.P., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Issue number 90. Part 2
The article is devoted to the essence of profit and profitability as criteria for evaluating the effectiveness of the activity of business entities. The analysis of indices of financial results and profitability is conducted according to combined statistical information on agricultural enterprises of Cherkasy region.
The factor analysis of profits of an agricultural entity in this study was carried out with the help of using elimination techniques, which made it possible to determine the impact of each factor on the income of agricultural enterprises in Cherkasy region.
The assessment of impact of sale prices on income formation, scope of sold products and prime cost is done. It is shown that the prime cost is the main factor influencing profit generation from the business activity of agricultural enterprises of Cherkasy region with the portion of its influence at about 37,7 %. In our opinion, the production technology as one of the major internal factors of the economic activity of business entities exerts significant influence on the cost of the newly created products. The level of profitability of agricultural production at enterprises of the region under study is considered. It is found that the major specific trend of factor analysis of profitability is defined by the place and role of each element ensuring the final result, and also by the degree of impact on the efficiency of the agrarian sector of national economy.
The factor analysis for 2015 shows that the rates of growth of prices for produce of agricultural enterprises were 40.4% higher, than the rates of prime cost increase. The factors of production provision with fixed and circulating assets grew respectively by 6.8% and 4.3%. The investments in 2015 decreased compared to 2014 by 58%.
When evaluating the situation in agricultural sphere of Cherkassy region in 2015, we have to mention the general decline in the efficiency of production and financial activities of the agricultural sector. The decrease of efficiency is connected with the crisis in the country, considerable decrease of production, disruption of economic relations and growing disbalance between production and resource provision of agricultural enterprises.
profitability, efficiency, elimination, financial result, profit, scope of sold products, prime cost, production and financial activity, investments, strategy of development.