Prerequisites for corporatization and trends of development of enterprises of the defense and industrial complex of Ukraine

Abstract

The article assesses the current state of the defense industry of Ukraine. The indicators of activity are analyzed, the main tendencies of development of the enterprises of SC “Ukroboronprom” are defined. The key directions, reforming of Ukroboronprom, directions of increase of efficiency of activity of subjects of managing of public sector of economy are allocated. To understand the main trends and patterns of development of enterprises of Ukroboronprom, the main indicators of financial and economic activity using the method of quantitative and qualitative comparison based on the “golden rule of enterprise economics” are considered. The study found that the enterprises of Ukroboronprom are characterized by a high level of depreciation of fixed assets of the Concern's enterprises and unstable dynamics of profitability. At the same time, the declining dynamics of profitability and the growth of financial dependence leads to non-compliance with the “golden rule of economics”. According to the analysis, the company's borrowings are formed at the expense of current liabilities and collateral, which is evidence of a rather risky financing structure. This situation is typical for the current state of Ukroboronprom's enterprises, as all producers suffer from a lack of funds. As the analysis showed, there is no effective development strategy at the researched enterprises of Ukroboronprom, the financial planning is mainly carried out at the current level. According to the results of the triage analysis, conditional groups of companies were created in Ukroboronprom: for development, rehabilitation and subordination. The concept of reforming Ukroboronprom considers the process of corporatization of the concern as a basis for transformation, which should ensure the activities of Ukroboronprom, in accordance with OECD best practices. Ukroboronprom has started the process of restructuring defense enterprises managed by the Concern. These are enterprises that will be reorganized or transferred to the management of other public authorities based on the results of the triage analysis. This decision was made by the Concern based on the results of a triage analysis approved by the Concern's Supervisory Board. To implement the corporatization of SC “Ukroboronprom” is created as part of a special fund of the State Budget of Ukraine Trust State Fund for Development of Defense and Industrial Complex of Ukraine. However, the issues concerning the mechanism of financing the development of defense industry enterprises and the institutionalization of the process of corporatization of Ukroboronprom remain unresolved.