Assessment of the investment attractiveness of agriculture in Russia by profitability indicators

Abstract

The article evaluates the investment attractiveness of agriculture in the Russian Federation in terms of profitability of sales, assets and equity. A factor analysis of profitability indicators is performed: in the dynamics of profitability of sales, the factors of revenue, cost, commercial and management expenses are highlighted; the return on assets is presented as a model dependent on the return on sales (profit before tax) and the asset turnover ratio; factors determining the change in return on equity include (net) return on sales, asset turnover ratio and capital multiplier. It is established that the direct operational, production and economic activities of agricultural organisations of the Russian Federation are characterised by high profitability (sales) but are associated with significant capital intensity, which creates "pressure" on the values of return on assets, and excessive crediting (financial dependence), which reduces the possibility of further increasing financial profitability (return on equity).