MANAGEMENT OF FINANCIAL STABILITY AND MARKET VALUATION IN THE AUTOMOTIVE SECTOR

Аннотация

This research examines the correlation between financial stability management and the market valuation of automotive companies in Uzbekistan, specifically targeting UzAuto Motors JSC and ADM Jizzakh Automobile Plant. The study assesses the impact of liquidity, profitability, and capital structure on competitive positioning, investor confidence, and sustainable growth. Financial ratio analysis and time-series review from 2018 to 2023 indicate that, although both firms have had substantial revenue and asset growth, deteriorating liquidity ratios and heightened debt pose strategic risks. The research advocates for the optimisation of debt structures, the acceleration of receivables turnover, diversification into high-value automotive sectors, and investment in technical modernisation to maintain market value and resilience. Keywords: Financial stability, market value, automotive industry, Uzbekistan, liquidity, profitability, debt structure. Over the past decade, the automotive industry in Uzbekistan has undergone significant structural transformation. The sector, once monopolised by a sole producer, has progressively embraced competition, international investment, and varied manufacturing lines. UzAuto Motors JSC, a prominent leader, capitalises on robust brand recognition, large distribution networks, and substantial production capacity. ADM Jizzakh Automobile Plant, a relatively new participant, has emphasised agility, product diversity, and export-oriented strategy. These factors have fostered a competitive landscape in which financial stability is not simply an accounting metric but a strategic imperative. The nation's industrial policy has emphasised the enhancement of manufacturing capabilities, incorporation into regional and global value chains, and the solicitation of foreign direct investment. These measures have led to heightened production quantities and income expansion for principal stakeholders. Nonetheless, exogenous shocks - such as currency volatility, global supply chain interruptions, and increasing interest rates - have challenged the robustness of corporate financial frameworks. 38 SOLUTION OF SOCIAL PROBLEMS IN MANAGEMENT AND ECONOMY International scientific-online conference Analysis of Financial Ratios and Trends (2018–2023). An extensive analysis of the financial performance of UzAuto Motors JSC and ADM Jizzakh Automobile Plant from 2018 to 2023 indicates both common sectoral trends and distinct financial paths for each company. The research encompasses three critical variables - liquidity, profitability, and capital structure - each of which significantly influences long-term competitiveness and market valuation. Comparative Financial Overview (2018–2023) Indicator 201 202 202 202 202 Averag 2019 8 0 1 2 3 e UzAuto Motors - 1.20 1.15 1.10 1.05 1.00 0.98 1.08 Current Ratio ADM Jizzakh- 1.18 1.20 1.17 1.16 1.15 1.15 1.17 Current Ratio UzAuto Motors - 6.5 6.3 6.0 6.1 6.0 5.8 6.12 ROA (%) ADM Jizzakh- 7.0 7.3 7.5 7.4 7.3 7.2 7.28 ROA (%) UzAuto Motors - 1.85 1.90 2.00 2.15 2.25 2.35 2.08 Debt/ Equity ADM Jizzakh - 1.55 1.58 1.60 1.68 1.70 1.72 1.64 Debt/ Equity Liquidity. Liquidity is a critical indicator of an organization's capacity to fulfil its short-term liabilities without seeking external finance. UzAuto Motors commenced the term with a current ratio of 1.20 in 2018, indicating that current assets surpassed current liabilities by 20%. Nonetheless, this value gradually diminished, culminating at merely 0.98 by 2023. A ratio below the generally recognised standard of 1.0 indicates that the company's liquid assets may be inadequate to meet urgent liabilities. The decrease might be ascribed to a diminished receivables turnover, escalating short-term liabilities, and augmented inventory carrying expenses. Conversely, ADM Jizzakh continuously upheld a current ratio between 1.15 and 1.20 during the period. This stability indicates enhanced working capital management, characterised by expedited receivable collections, stringent inventory control, and advantageous payment terms negotiated with suppliers. A liquidity profile exceeding 1.0 safeguards against operational interruptions 39 SOLUTION OF SOCIAL PROBLEMS IN MANAGEMENT AND ECONOMY International scientific-online conference and enhances the company's creditworthiness in the perception of financial institutions and investors. Profitability. Profitability ratios measure a company's efficiency in converting revenue into profit and indicate its ability to create returns on invested capital. UzAuto Motors exhibited a net profit margin ranging from 5% to 7% during the research period. This performance, albeit favourable, is susceptible to margin compression from escalating production costs, a significant reliance on imported components exposed to currency fluctuations, and intermittent rises in operational expenses. Moreover, the company's substantial investment in plant modernisation, while crucial for long-term competitiveness, has temp