Assessment of Management of Borrowed Funds of Agricultural Holdings in Russia

Issue № 3, 2024, article № 5, pages 46-55

Section: Economic mechanism of managing

Language: Russian

Original language title: ОЦЕНКА УПРАВЛЕНИЯ ЗАЕМНЫМИ СРЕДСТВАМИ АГРОХОЛДИНГОВ РОССИИ

Keywords: AGRICULTURAL HOLDING, BORROWED FUNDS, LOANS, LARGE-SCALE AGRICULTURAL PRODUCER, FINANCIAL RISK, FINANCIAL LEVERAGE EFFECT, RETURN ON ASSETS

Abstract: The purpose of the work is to assess the management of borrowed funds of agricultural holdings in the Russian Federation for a better understanding of the economic nature of these entities and the factors influencing their activities. As a result of the research, the following was revealed: 1) a pattern in the use of credit resources by agricultural holdings with a relatively low level of return on assets: the lower such profitability, the greater the volume of bank loans used. On the one hand, this is a consequence of a shortage of equity capital due to low profit levels, on the other hand, it contradicts the classical norms of financial management and represents a significant financial risk; 2) a downward trend in the share of short-term bank loans in the structure of liabilities of the average agricultural holding during the period 2009–2022 due to an increase in the volume of equity capital. As of 2022, the share of short-term bank loans in the structure of corresponding liabilities was 15%, which is sufficient to establish the dependence of the subjects under study on bank lending; 3) the lack of correlation between the indicators of the dynamics of return on assets of the organizations under study and the use of short-term bank loans. Changes in the return on assets indicator did not significantly affect the volume of their use. Such volumes were largely determined by the needs of operating activities and the lack of ability to quickly maneuver through other alternatives for raising capital. Ignoring by the managers of the organizations under study the dynamics of return on assets poses a danger to the financial condition of agricultural enterprises with a systematically low value of this indicator.

Authors: Morhachov Ilia Viktorovich, CHugai Dmitrii IUrevich, Lebed Anna Viktorovna, Bystrova Tatiana Semenovna