METHODOLOGICAL APPROACHES TO ASSESSING THE INVESTMENT ATTRACTIVENESS OF DEFENSE-INDUSTRIAL COMPLEX ENTERPRISES
Abstract
The article examines methodological approaches to assessing the investment attractiveness of defense-industrial complex enterprises in the context of increasing geopolitical instability and the transformation of global arms markets. It is substantiated that traditional financial analysis methods do not fully reflect the specific features of defense companies, whose activities largely depend on government contracts, budget financing, long-term production cycles, and regulatory constraints. The aim of the study is to systematize and further develop methodological approaches to the investment evaluation of defense-industrial enterprises, taking into account sector-specific characteristics, risks, and macroeconomic factors. The research employs methods of comparative analysis, generalization of scientific approaches, as well as analysis of financial statements and market indicators. The information base includes data from international organizations, analytical reports, and financial statements of leading industry companies. The study identifies the limitations of applying classical financial indicators in the defense sector and determines their sector-specific features. It is proposed to complement traditional financial analysis with a system of specialized criteria, including indicators of order backlog, innovation activity, customer structure, dependence on government funding, and the level of geopolitical risks. An integrated approach to assessing investment attractiveness is developed, combining financial, market, and sector-specific indicators. The obtained results confirm the significant dependence of defense industry companies’ revenues on national defense budgets, as well as on scenarios of changes in public policy. The proposed approach is empirically tested using the case of Lockheed Martin Corporation, which allows for assessing its investment attractiveness while considering the specifics of the defense industry. The results confirm the feasibility of applying comprehensive evaluation models to support more informed investment decisions. The proposed approaches can be used by investors, analysts, and public authorities in evaluating defense-industrial enterprises.
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