ASSESSING THE FINANCIAL CONDITION OF LITHUANIAN MUNICIPALITIES IN RURAL REGIONS

The article analyses the issue of the analysis and assessment of municipality's financial condition that is relevant theoretically and practically. The relevance and importance of the analysis of municipality's financial condition based on financial reports and other information show that regular and timely analysis can disclose strengths and weaknesses of the municipality's financial management as well as highlight fiscal problems and provide the information necessary to make corrections. The aim of the research is to assess the financial condition of Lithuanian municipalities in rural regions. Ten financial ratios, which aim to analyse and assess the financial condition of Lithuanian municipalities in rural regions, are presented referring to literature and considering the peculiarities of the accountability of Lithuania's public sector. In the research, it is possible to divide Lithuanian rural municipalities into three groups according to their level of rurality: municipalities of strong rurality, medium rurality and weak rurality. The research, which revealed the ability of Lithuanian municipalities on different level of rurality to cover their financial liabilities, their financial capacity to perform their functions, the ability to manage own assets, and financial autonomy, was performed referring to the consolidated financial reports of municipalities announced publicly and by applying the SPSS software.