The impact of production intensification on the financial performance of organizations

Agriculture is traditionally seen as a sector aimed at producing raw materials for other industries and providing food for the population. The development of agricultural production, in conditions where there is almost no possibility of involving new land in the economic process, is only possible through production intensification. This involves increasing the output per unit of land through more efficient production tools, growth in capital adequacy, financial independence of the organization, and better utilization of production potential. The intensification of the production process is determined by the degree of utilization of the entire complex of production and financial resources of an organization. Enhancing production intensification contributes to stable development and achieving high rates of economic efficiency for the enterprise. Any agricultural organization represents a complex economic system where individual elements are interconnected. Changes in the amount or intensity of resource use significantly affect the financial results of the enterprise. The article presents a methodology for determining the impact of production intensification on financial performance based on a factor model that links profit from sales to capital adequacy, asset productivity, and revenue margin. The primary causes of changes in profit from sales in three pilot agricultural organizations were analyzed, and directions for increasing profits were identified.