Pavliuk Svitlana, PhD (Economics), Associate Professor, Deapartment of Hotel and Restaurant Business and Tourism, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID: 0000-0001-9093-5237
e-mail: svetlanapavliyk@gmail.com

Shevchuk Denis, student of the Faculty of Management, Mykolaiv National Agrarian University, Mykolayiv, Ukraine

ORCID: 0009-0007-7366-697X
e-mail: vozncifr20@gmail.com

Peculiarities of the Functioning of the Financial Management System of an Agricultural Enterprise under Martial Law

Abstract. Introduction. The agricultural sector in Ukraine has traditionally been a key driver of economic development and is crucial to the country’s food security. However, as a result of the full-scale invasion, the sector has suffered significantly, particularly with regard to production and transport infrastructure. This has included the reduction and complete loss of logistics routes, as well as a decline in export volumes and an increase in the cost of resources. In such circumstances, improving the financial management systems of agricultural enterprises is paramount. This should involve increasing business sustainability, ensuring flexibility in decision-making and establishing mechanisms for rapid recovery in times of crisis.

Purpose. This article aims to demonstrate the theoretical and practical importance of financial management in an agricultural enterprise under martial law. The study aims to provide an in-depth diagnosis of the financial condition of such an enterprise. This approach helps to identify threats and growth opportunities, offering a scientific basis for developing an effective financial strategy in today’s uncertain conditions.

Results. In the context of modern instability, the external economic environment of domestic agricultural enterprises is undergoing rapid transformation due to technological progress, evolving consumer preferences and frequent updates to market legislation. This is further exacerbated by martial law conditions. The introduction of new, flexible and mobile management methods that can increase the reliability of organisational systems in the face of unpredictable factors will boost the competitiveness of agricultural enterprises. A detailed analysis of an agricultural enterprise’s key financial indicators and overall condition, including an assessment of its liquidity, solvency, financial stability and profitability, provides a valuable methodological basis as well as a situational report. The conclusions and recommendations developed on this basis can be extrapolated to other agricultural enterprises operating in similar conditions, allowing for the adoption of best management practices. This approach improves the financial model of a particular entity and creates a benchmark for the industry, accelerating economic growth and increasing the overall competitiveness of the agricultural sector. Analysing the financial indicators of the Agricultural Society ‘AGROSOYZ’ enabled us to evaluate its financial stability and verify its compliance with the ‘golden rule of enterprise economics’, which is unfortunately only partially implemented. Consequently, the financial system remains vulnerable to external threats and requires improvement, particularly through developing a strategy to ensure the enterprise’s financial sustainability.

Conclusions. In order to improve the financial management of an agricultural enterprise, the following strategy for ensuring financial stability is proposed: This includes managing receivables, strengthening liquidity and solvency, improving anti-crisis management, reducing costs, increasing profits and forming insurance and reserve funds. This strategy requires strategic planning, flexible forecasting and constant financial monitoring in order to adjust goals promptly. By combining long-term vision with operational flexibility, this strategy will become a modern management tool. It will ensure stability and sustainable development for agricultural enterprises.

Keywords: financial management; financial stability; liquidity; solvency; efficiency; strategy.

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