CAPITAL STRUCTURE DYNAMICS AND PROFITABILITY ANALYSIS OF UZBEKISTAN'S LEADING AUTOMOTIVE AND CHEMICAL FIRMS IN A VOLATILE ECONOMY
Abstract
This study examines the debt-to-equity dynamics and profitability patterns of three major Uzbek firms—UzAuto Motors, UzAvtoSanoat, and Uzkimyosanoat—against the backdrop of macroeconomic volatility, shifting interest rates, and the rising importance of intangible assets. The findings reveal a steady increase in leverage ratios until 2020, followed by a decline coinciding with the COVID-19 crisis and enhanced market volatility. Profitability, especially Return on Assets (ROA), peaked in 2020 for UzAuto Motors, highlighting the firm’s operational efficiency during economic turbulence. The research connects firm-level financial behavior with broader economic reforms, credit market conditions, and interest rate movements in Uzbekistan. The study emphasizes the increasing role of intangible assets and cautions against over-reliance on debt in uncertain economic environments. The paper recommends policy support for financial stability and firm-level strategies emphasizing profitability, asset optimization, and capital structure flexibility.
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