Financial analysis tools for assessing the investment attractiveness of agricultural projects in the United States

Аннотация

This article focuses on the analysis and CITATION practical application of financial tools aimed at Viktoriia Lezhanina. (2025). Financial analysis tools for assessing the evaluating the investment attractiveness of investment attractiveness of agricultural projects in the United States. The American Journal of Management and Economics Innovations, agricultural projects in the United States. In a context 7(06), 08–14. https://doi.org/10.37547/tajmei/Volume07Issue06-2 of declining domestic investment and a volatile COPYRIGHT business climate, agricultural enterprises require © 2025 Original content from this work may be used under the terms of the creative commons attributes 4.0 License. accurate assessments of their internal reserves and creditworthiness. The relevance of this study is driven by the need to identify effective financing mechanisms and enhance the competitiveness of farming operations facing additional pressure from seasonal price fluctuations and technological transformation. The novelty of the research lies in a detailed examination of the interrelation between depreciation monitoring methods, liquidity analysis, capital structure, and profitability. The study presents comparative approaches to long-term lending and solvency assessment and draws on sources addressing trends in investment flows, challenges related to fixed asset renewal, the specifics of banking activity, and external support programs. Particular attention is given to risk assessment, including potential capital outflows and insufficient diversification of financing channels. The study aims to identify optimal strategies for strengthening the financial stability of agricultural enterprises. A comparative method and financial statement analysis were applied to achieve this goal. The conclusion outlines a sequence of steps enabling an objective forecast of project profitability. This article will be of interest to investors, enterprise managers, and specialists in agricultural management. The American Journal of Management and Economics Innovations 8 https://www.theamericanjournals.com/index.php/tajmei Keywords: investment attractiveness, agricultural asset valuation for agricultural companies. projects, financial analysis, liquidity, profitability, The analysis applied a comparative method for depreciation, capital structure, long-term lending, evaluating financial indicators, along with a critical solvency. review of sources to integrate data and identify priority INTRODUCTION areas. The approach is based on the evaluation of case studies and statistical data presented in the original Improving the performance of the agricultural sector in documents. the United States is consistently linked to enhancing its attractiveness for potential investors. This underscores RESULTS the relevance of research aimed at identifying financial The calculations indicate that restructuring the analysis tools capable of providing a comprehensive agricultural sector in the United States will require diagnosis of the resilience of agricultural enterprises. additional efforts to expand investment volumes and to The objective of this article is to develop and engage all available sources of financing. Observations systematize the key methods required for a thorough from the period 1997–1999 show a sharp decline in assessment of the investment attractiveness of domestic capital investment—by nearly five times— agricultural projects. driven by falling business activity and the deteriorating To achieve this objective, the following tasks have been financial condition of many enterprises. This trend set: directly affects agricultural projects. Against the backdrop of generally low profitability in agriculture, – to identify relevant tools for diagnosing the financial some loss-making enterprises accounted for up to 10% condition of enterprises; of the sector, while losses in transportation reached – to determine the specific risks associated with long- nearly 59%, and in the supply sector 57.1% [8]. Under term lending and depreciation policy; such conditions, financial institutions are compelled to – to justify recommendations for improving the assess risks not only at the macroeconomic level but also investment climate in the agricultural sector. through the specific parameters of working capital and the solvency of agricultural enterprises. The novelty of the study lies in the integration of established methods for analyzing liquidity, capital When selecting internal and external financing channels, structure, and profitability with current data on trends bank lending is frequently considered, particularly for in economic reform and the practical application of bank long-term loans aimed at modernizing technical loans. infrastructure. At the same time, materials in [4] note that an approach based on detailed liquidity analysis and