Approaches to the analysis of enterprise’s financial state on the example of Cargill Animal Nutrition LLC


Keywords: financial analysis, profitability, liquidity, solvency, production

Abstract

The article analyzes the financial statements of Cargill Animal Nutrition LLC, which aims to become a leader in feed production. The urgency of the need to find optimal ways to assess the financial state of enterprises to take the necessary measures in case of instability of the firm is substantiated. The main methods of analysis of financial statements of companies have been identified and substantiated, which will allow agricultural enterprises to analyze their financial state and take measures to optimize their activities. Various approaches have been applied to the analysis of the company's financial position, including horizontal analysis of balance sheet indicators and statement of financial performance, vertical analysis of the balance sheet structure, and coefficient analysis of profitability, liquidity and solvency of the company, with a comprehensive assessment of bankruptcy. Vertical analysis is used to track the structure of a company's assets and liabilities over a period. This analysis makes it possible to draw conclusions about the liquidity and solvency of the company. Horizontal analysis helps to analyze the growth rates of various indicators presented in the financial statements. Finally, the ratio analysis is a system of ratios that allows you to analyze the liquidity, profitability, solvency and investment attractiveness of the company compared to other companies. According to the results of the study, it was concluded that the financial state of Cargill EN LLC has improved. In particular, the net profit margin of Cargill EN LLC improved from 3.1 % in 2018 to 10 % in 2020. According to the value of Altman's Z-score, the probability of bankruptcy is very low. Perspective directions of researches in a part of an estimation of the generalized indicator of instability of the company taking into account features of an agro-industrial complex of Ukraine are substantiated.

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Abstract views: 22
PDF Downloads: 17
Published
2021-12-23
How to Cite
Brychka, B. (2021). Approaches to the analysis of enterprise’s financial state on the example of Cargill Animal Nutrition LLC. Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies. Series Economical Sciences, 23(98), 12-16. https://doi.org/10.32718/nvlvet-e9802