Solvency of the organization: concept, analysis, directions for improvement

Solvency is one of the fundamental characteristics and indicators of the financial position of a commercial organization in a market economy. Undoubtedly, a solvent and liquid enterprise will always have a number of advantages over other entities of a similar industry, as this indicator indicates the efficiency of functioning and the ability to pay off its current obligations in a timely manner. This article discusses the variety of definitions of the term “solvency” from the standpoint of various economists, the relevance of information on solvency indicators for the circle of users of the company’s financial statements, as well as the factors that determine this economic category. On the example of an agricultural organization, an analysis is made of the modernity of repayment of current liabilities and an assessment of the financial condition is given by interpreting key indicators related to liquidity, financial stability, business activity, as well as the results of financial and economic activities. The paper carried out a factorial analysis of the influence of significant conditions on one of the key indicators of the solvency of the object of study (quick liquidity ratio) using the chain substitution method. Based on the calculations made, recommendations are presented on the main directions for increasing the solvency of economic entities of the agro-industrial complex, taking into account the specifics of their activities.