Analysis of the Return on Equity of Companies of the Agricultural Sector in Current Conditions

The relevance of the chosen topic is due to the need for effective development in modern conditions of one of the most important branches of the country's economy - the agricultural sector. The aim of the work is to analyze the return on equity of agricultural companies in the period from 2013 to 2015. To achieve this goal, the ability of the agricultural sector was analyzed to maintain a positive development trend in the long run, which was initiated by the introduction of the food embargo in 2014, as well as a number of other political and economic factors, due to the transition from import substitution to the export of domestic products. The conclusion is substantiated that it is necessary to increase the efficiency of production by introducing high-tech means of production to form competitive advantages of agricultural companies. The importance of developing the investment attractiveness of the industry for domestic and foreign investors was emphasized, relying not only on the funds allocated from the state budget. It is proved that one of the key indicators of the company's performance, demonstrating the feasibility of investing and lending, is return on equity (ROE). As a result, based on the DuPont model, the stable growth of the ROE indicator of approximately 8,000 largest companies analyzed during the period 2013-2015 is illustrated. Based on the study of the dependence of ROE on the financial leverage over the whole study period, the actual excess of ROE over the corresponding expected values was revealed. This fact testifies to the "over-crediting" of agricultural enterprises and the need to change the structure of capital. Based on the results obtained, proposals have been drawn up, the implementation of which will contribute to improving the efficiency of the industry in modern conditions.