DETERMINANTS OF PROFITABILITY MANAGEMENT IN AGRICULTURAL ENTERPRISES: A CASE STUDY OF UKRAINE

The purpose of the article is to identify the key determinants of profitability management in Ukrainian agricultural enterprises under the conditions of structural economic transformation. The article investigates the determinants of profitability management in Ukrainian agricultural enterprises under conditions of economic instability and structural market transformations. It is determined that the efficiency of profit formation in the agricultural sector depends not only on financial indicators but also on the complex interaction of production, investment, and labor factors. The study analyzes the impact of asset volume, production costs, capital investments, labor productivity, and inflationary processes on the performance of agricultural enterprises. The study is based on quantitative tools of economic analysis, among which the key place was occupied by the construction of correlation-regression relationships in order to determine the nature and strength of the influence of such factors as the size of assets, the level of production costs, the volume of capital investments, the dynamics of the consumer price index and labor productivity indicators on the financial results of agricultural business entities of Ukraine. The study was based on statistical materials of the State Statistics Service of Ukraine, covering the time interval 2011–2023. The findings reveal that the growth of labor productivity plays a decisive role in ensuring financial stability, while high cost levels and price fluctuations limit the potential for profitability. It is established that balancing the cost structure through more efficient asset utilization and focusing investments on technological modernization form the foundation for sustainable financial development of the agricultural sector. It is substantiated that the use of such an approach creates the prerequisites for a long-term increase in the financial performance of agricultural sector entities and contributes to strengthening their market advantages in a competitive environment. Key words: profitability, agricultural enterprises, profitability management, investments, labor productivity, digitalization, production costs