ANALYSIS OF THE FINANCIAL SITUATION OF CONSTRUCTION COMPANIES AND DIRECTIONS FOR ITS IMPROVEMENT
Authors:   Kutaisi University, Kheladze Lela 
Published: August 2023

The best way to objectively evaluate the proper functioning and financial results of construction companies is to analyze their financial situation. As a result of the analysis of the actual situation, it is possible to make a forecast about the future stability of the company, or on the contrary, based on the mentioned information, expected threats can be avoided. The purpose of the present study is to develop directions for improving the financial condition of construction companies and to formulate appropriate conclusions and recommendations based on the practical analysis of the financial condition of these companies. There are a number of serious gaps in the regulations in the construction sector, which require timely completion. The analysis of the current processes in the construction sector reveals that the field is currently developing on its own. It is necessary to fully introduce modern construction regulations in Georgia and to regulate the construction field. It is important that continuous and active work in this direction is carried out. Regulation of the construction sector should be implemented through the coordinated work of state agencies, international organizations, construction industry and academia. It is important to fully realize the importance of international standards and make decisions with the participation of a properly informed construction sector. In our opinion, for the state regulation of business, it is necessary to correctly analyze the country's development indicators, take into account specific conditions and determine the possible directions of business development. A rational coordination of strategic and operational goals should be implemented and an organic relationship between the market and the state should be established, as a result of which the relations between the state and the construction market will be causally interconnected. Based on the analysis of the results of the research carried out by us, it is possible to formulate the main conclusions and recommendations of the existing problems identified in the research process: • Preparation and analysis of financial statements will provide significant assistance to the construction companies themselves (both management and owners) in objective assessment of past activities and making correct forecasts, therefore the financial services of construction companies should permanently analyze the main indicators of financial statements, study changes in these indicators and negative Taking preventive measures in case of detection of trends. • The ability to analyze financial statements will increase the interest of potential investors in terms of investing in a specific company, which in itself will help construction companies to find an alternative source of financing, that is why companies should provide presentation of financial statements in the language of business; • The availability of financial statements will allow stakeholders to calculate average risk-weighted figures for this particular area so that investors can conduct comparative analysis. Therefore, companies should ensure that audited financial statements are published publicly; • Preparation and submission of financial statements will promote business transparency, which is part of corporate responsibility to the people who buy construction products. Therefore, we consider it expedient to implement special trainings for raising the qualifications of financial managers and accountants of the construction sector, which will be drawn up directly taking into account the specifics of the field and will help the personnel working in this field to carry out reliable and legally compliant activities. According to the results of the research, we evaluated the solvency of "Anagi" LLC and "Ace Georgia" LLC and we can conclude that "Anagi" LLC is characterized by a steadily increasing development trend according to each of the indicators given above, while the financial indicators of "Ace Georgia" LLC do not allow making reliable forecasts. Since the company is characterized by a downward trend and its financial result for the considered three years is a loss. In the process of searching for the causes of these radically different results, we came to the conclusion that if the organization perfectly produces not only financial statements, but also management statements, its successful operation is not threatened. In this process, management reporting information is important especially because it allows the company's management to develop relevant financial policies to achieve the company's financial stability and profit maximization.