DIAGNOSIS OF THE FINANCIAL AND ASSET POTENTIAL OF CONSTRUCTION COMPANIES: THEORETICAL AND METHODOLOGICAL PRINCIPLES AND PRACTICAL IMPLICATIONS

Abstract

This article demonstrates the relevance of assessing the financial and asset potential of construction companies in the context of a dynamic external environment and Ukraine’s post-war economic  recovery. It is determined that financial and asset potential is one of the key components for ensuring the stable operation and development of enterprises in the construction industry, whose activities are characterized by high capital intensity, significant demand for investment resources, a long production cycle, and an elevated level of financial risks. The importance of diagnostic procedures for enhancing financial stability, optimizing capital structure, improving the management of property resources, and adapting enterprises to changes in the external environment is substantiated. It is demonstrated that systematic diagnosis of financial and property potential serves as a vital tool for ensuring the effective operation of construction enterprises and establishing the prerequisites for their long-term development. Based on the study’s findings, a theoretical and methodological model for assessing the financial and asset potential of construction companies has been developed. The composition of assets held by key companies in the Sumy region whose primary economic activity is the construction of residential and non-residential buildings has been analysed, and their liquidity, financial stability, solvency, and business activity have been evaluated. It was established that the group of economic entities under study exhibits a number of negative trends in the formation of their asset and financial potential, which may limit their further development and reduce their level of competitiveness. To address the identified issues, a set of priority tasks is proposed: (intensifying investment activities aimed at modernizing and upgrading fixed assets, which will reduce their physical and obsolescence wear and tear and increase the productivity of production processes; optimizing the asset structure by ensuring a balanced ratio between current and non-current assets; implementing an effective accounts receivable management system, etc.).