Abstract:
The present state of the financial market in Ukraine determines a lack of funding for
agricultural enterprises. The research aims to find internal sources of funding for the
reproduction of fixed assets for agricultural enterprises. The calculation of the depreciation
return index is a component of financial analysis of the efficient renovation
investment use. It allows controlling its targeting and influence on enterprises in a
financial aspect in order to provide a stable position of the enterprise`s investor.
Implementation of economic and mathematical modeling using correlation and regression
analysis verified a tight correlation between gross profit margins in agriculture
and depreciation returns. For this purpose, general indexes were formed that is the
primary value of fixed assets at the end of the year; the extent of their depreciation,
depreciation and residual value of fixed assets at the end of the year, the average annual
value of fixed assets, annual income, investment return and calculated gross profit and
depreciation during 2001–2016 were determined.
The results of the calculations showed that the funds saved through depreciation (renovation
investments), and retained earnings are the financial resources for continuous
renovation of fixed assets of agricultural enterprises. Also, attraction to internal reserves
should have an impact on the increase of the agricultural enterprises’ profitability
and should facilitate the increase of production volumes due to the implementation
of innovations.
