scholarly journals Increasing the financial stability of enterprises with the help of financial analysis tools

2021 ◽  
pp. 185
Author(s):  
Andriy Lyubenko ◽  
Ruslana Shurpenkova ◽  
Oksana Sarahman
Keyword(s):  
Financial Stability ◽  
Financial Analysis ◽  
Economic Stability ◽  
Successful Operation ◽  
Market Conditions ◽  
Financial Condition ◽  
Qualified Personnel ◽  
Study Results ◽  
Functional Components ◽  
Selection Of

Introduction. In market conditions, the successful operation of the enterprise largely depends on the level of stability of its financial condition. If the company is financially stable, it has a number of advantages over other companies of the same profile to obtain loans, attract investment, in the selection of contractors and in the selection of qualified personnel. The higher the financial stability of the company, the greater it is regardless   of changes in market conditions and, consequently, the lower the risk of bankruptcy. Therefore, the strategic goal of any business is to ensure financial stability.If the company is financially stable, solvent, it has a number of advantages over other companies of the same profile in obtaining loans, attracting investment, in choosing suppliers and in the selection of qualified personnel. The higher the resilience of the company, the more it is independent of unexpected changes in market conditions and, consequently, the lower the risk of bankruptcy.Purpose. To develop theoretical and methodological approaches to ensure the financial stability of enterprises based on the use of financial analysis tools.Methods. The study was conducted using general and special methods of cognition: observation, statistical, logical and comparative analysis, grouping, generalization and classification, systemic and structural approaches. The total analytical potential of the tools used ensured the reliability of the conclusions and recommendations obtained in the study. Results. The essence and significance of the financial stability of the enterprise are revealed, the directions of strengthening the financial stability of the enterprise by effective use of the tools of financial analysis are outlined. The main functional components that determine the economic stability of the enterprise and a system of measures that provides a timely response to deviations from the planned values of economic stability of the enterprise are identified.Prospects for further research. Prospects for further research are to deepen the methodological foundations of ensuring the financial stability of the enterprise through the tools of financial analysis and the formation of strategies and tactics to ensure the financial stability of enterprises.

scholarly journals Business Planning and Assessment of Its Impact on the Enterprise Financial Stability

2020 ◽  
pp. 78-84
Author(s):  
Kateryna Shtepenko ◽  
Lyudmyla Svystun ◽  
Iryna Krekoten
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Functional Relationship ◽  
Financial Analysis ◽  
Business Activity ◽  
Financial Independence ◽  
Financial Condition ◽  
Content Ratio ◽  
Asset Turnover ◽  
The Impact

At the present stage of the company development as an open social and economic system the question of how existing methods of financial analysis meet the needs of users considering the dynamism and complexity of business processes remains relevant. The purpose of the article is study relationships between static and dynamic indicators of financial condition, to reflect its characteristics such as business activity and financial stability. The article defines the functional relationship between dynamic business activity indicators and static indicators of financial stability, grounds technique of factor analysis of financial stability. The economic content ratio of the assets turnover and equity is defined. The nature of its relationships with the dynamics of assets is considered. Both theoretically and practically it is determined that if the correlation of ratio of asset turnover and equity is bigger than the ratio of financial independence at the beginning of the period under study, the positive dynamics of the property will affect the company’s final financial stability and vice versa, if the ratio is less than the rate of financial independence at the beginning of the period under study, the impact of positive dynamics of property on the final financial stability will be positive. It is proposed to consider this dependence both for factor retrospective analysis and for financial stability forecasting.

scholarly journals Use of rating methodology for evaluation of the financial condition of the enterprise

2020 ◽  
pp. 13-16
Author(s):  
Anna CHERNIAIEVA ◽  
Anastasiia KONDRATENKO
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Financial Analysis ◽  
Comprehensive Evaluation ◽  
Balance Sheet ◽  
Integrated Approach ◽  
Assessment Method ◽  
Necessary Condition ◽  
Economic Activities ◽  
Financial Condition

Introduction. A necessary condition for effective corporate finance management, rational use of enterprise resources is a reliable and comprehensive evaluation of the financial condition of the enterprise. In the modern practice of financial management, the problem of qualitative and quantitative justification of management financial decisions is solved through the widespread use of information about the financial condition of enterprises, which are the main subjects of economic relations. The purpose of the paper is to research of essence and features of use of a rating evaluation of a financial condition of the Ukrainian enterprises in modern economic conditions Results. There are many methods for evaluation the financial condition of an enterprise: balance methods, express analysis, efficiency analysis, bankruptcy evaluation, rating evaluation, integrated evaluation. The choice of method of conducting a comprehensive evaluation of the financial condition of the enterprise depends on a number of factors: type of economic system, the degree of development of market relations, the peculiarities of the balance sheet and other forms of reporting, industry characteristics, type of activity, form of ownership of the enterprise, etc. We recommend the rating evaluation of the financial condition of the enterprise. The methodology of rating evaluation of the financial condition of the enterprise is based on an integrated approach; indicators of profitability, liquidity, financial independence and financial stability of the enterprise, and also data on efficiency of use of financial resources and production potential of the enterprise are used at its construction. Calculations of indicators of the financial condition of the enterprise according to the rating assessment method were carried out on the basis of the data of the company's public financial statements for the period 2017–2019. According to the results of calculations, the enterprise received a score of 0.615 points, which corresponds to the AA rating. Conclusion. The use of rating assessment of the financial condition of the enterprise is an effective tool of financial analysis, which allows to obtain a final evaluation of the financial and economic activities of the investigated enterprise.

scholarly journals Overcoming ambiguity in assessing the financial sustainability of Crimean hospitality companies for anti-crisis management

2021 ◽  
Vol 11 (2) ◽  
pp. 36-56
Author(s):  
V. A. Malyshenko ◽  
K. A. Malyshenko
Keyword(s):  
Crisis Management ◽  
Financial Management ◽  
Financial Stability ◽  
System Analysis ◽  
Financial Analysis ◽  
System Development ◽  
Unstable System ◽  
Financial Condition ◽  
Macroeconomic Indicators ◽  
Strategic Program

The subject of the research is the system of methods of financial management of a company, in which a contradictory situation of conflict of goals of its development has developed, with the obligatory occurrence of systemic crises on the one hand, and the rule of constant preservation of a low risk of financial destabilization, on the other. The relevance of the study is due to the significant distance of system analysis in its categories from strategic financial analysis. Systemic destabilization of active investment outwardly looks the same as the end-of-life bankruptcy crisis, which significantly distorts the perception of potential investors in the industry in general. The scientific novelty lies in the substantiation of a method that makes it moving from a simple identification of the transitional (crisis) development stages of an unstable system (company) to the substantiation of the parameters of a strategic program, including within the framework of anti-crisis management. The aim of the research is to adapt analysis methods of the system’s crisis states to the provisions of the most system-oriented financial analysis techniques have being applied to disclose the unstable states of the “system-enterprise”. The system analysis has been chosen as the research method in various areas of its manifestation: from a general philosophical description of unstable system with characteristics of a company’s life cycle to a model for assessing the company’s financial stability for strategic purposes. The result of modeling the financial condition of such unstable companies taking into account provisions of the system analysis, was the formulation of a new category of strategic financial management — the Strategic zone for the financial stability transformation, which serves as the basis for a long-term program for the transformation of the financial condition. As a conclusion, it can be noted that applying of the financial analysis method for strategic purposes (“Fregat” model) in a single connection with the system analysis provides the possibility to identify the most dangerous crises from the standpoint of the identification complexity and consequences of the cochirid stage crises of the system development. Also, this allows to separate the investment (justified) destabilization from instability which could be the cause of wrong actions of the company’s management. All this makes it possible to objectively assess the macroeconomic indicators of the hospitality industry in general.

scholarly journals Using of neural networks for assessing of the financial stability of companies

2020 ◽  
Vol 8 (1) ◽  
pp. 106-110
Author(s):  
Roman Bolotov ◽  
Aleksandr Suglobov
Keyword(s):  
Neural Network ◽  
Financial Stability ◽  
Financial Analysis ◽  
Network Modeling ◽  
Neural Network Modeling ◽  
Analysis Tool ◽  
Real Sector ◽  
The Real ◽  
Advantages And Disadvantages ◽  
Financial Condition

The stability of the activities of organizations in the real sector of the economy at the macroeconomic level is the basis for creating the country's gross domestic product, developing technologies and strengthening the competitiveness of the country's products within the global economic system. To plan and forecast their activities, States and business participants are increasingly using modern methods of assessing the financial stability of companies. Today, approaches to building models for assessing the sustainability of companies are based mainly on econometric and statistical linear multidimensional methods of calculation, which does not allow us to identify hidden and nonlinear relationships that are inherent in the real world economy and the activities of economic entities. The article considers approaches to assessing the financial condition of organizations using neural network modeling and comparing it with previously used methods. In the course of the research, we developed a neural network for evaluating the financial condition of companies in the real sector of the economy, which allowed us to draw conclusions about the validity of this method of assessment in modern conditions. The article also highlights the key advantages and disadvantages of the neural network modeling method as a financial analysis tool. The scientific novelty of the article is to develop and evaluate a financial analysis tool that can be applied for practical purposes the economic entities and the substantiation of the complexity of neural network models in predicting bankruptcy; lack of methodological support; the need to develop special software; the duration of the learning process to achieve the required accuracy of the model; compliance with the requirement for equal proportions of the studied groups of objects; the correct choice of neural network architecture for research purpose; representativeness and consistency of source data.

scholarly journals Aspects of financial analysis of the company's equity in modern conditions

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
N. Kuprina ◽  
T. Markova ◽  
O. Velychko
Keyword(s):  
Financial Analysis ◽  
Practical Importance ◽  
Practical Aspect ◽  
Industrial Enterprise ◽  
Comprehensive Approach ◽  
Scientific Result ◽  
Market Conditions ◽  
Industrial Enterprises ◽  
Financial Condition ◽  
Equity Analysis

The purpose of the research is to analyze the scientific works on the o study approaches to conducting financial analysis of industrial equity of enterprises in the theoretical and practical aspect, justification ofthe need to formulate a comprehensive approach for such aanalysis of the equity of the enterprise in themanagement system.The analysis of the works of scientists showed that when conducting a financial analysis of an enterprise's equity, it is mainly conducted in the context of the analysis of the financial condition of the enterprise,both in the overall assessment and in absolute and relative terms, which is not complete in the current conditions of managing the enterprise resources and sources of their formation.The scientific result of the research is the formation of a comprehensive approach to the financialanalysis of the equity of an industrial enterprise, which is relevant in the current market conditions of operation of enterprises and covers the analysis of its dynamics, structure, turnover, profitability, risk and its protection. The practical importance of this work is directed to the use of this method of equity analysis as a toolof financial analysis in the modern conditions of management of industrial enterprises to ensure the efficiency of their activities and management.

FINANCIAL ANALYSIS OF THE INVESTMENT ATTRACTIVENESS OF THE ENTERPRISE

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 270-273
Author(s):  
TETYANA RZAEVA ◽  
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Financial Analysis ◽  
Cost Index ◽  
Return On Equity ◽  
Financial Condition ◽  
Standard Position ◽  
Theoretical Approaches ◽  
Asset Turnover ◽  
The Cost

The purpose of the article is to study the concept of investment attractiveness of the enterprise. Outline of existing methods and areas of research. Research of existing theoretical approaches to understanding the concept of “investment attractiveness”. Determining areas for assessing investment attractiveness according to the needs of financial analysis. It is advisable to study the company’s position in the market and its business reputation. It is important to calculate the integrated coefficient of investment attractiveness. It is important to calculate the ratio of borrowed and own funds, asset turnover ratio, current liquidity ratio, return on equity. It is important to set the parameters corresponding to the level of the standard position of the enterprise in the market. Emphasis is placed on assessing the level of the company’s dependence on competitors. It is important to study the profitability of products, return on investment. It is important to consider the strengths and weaknesses of the enterprise. It is appropriate to calculate the sales revenue index, the net profit index, the cost index, the long-term liability index. It is proposed to study the dynamics of the characteristics of financial stability, profitability, liquidity of assets and their turnover. The purpose of the article is achieved. Theoretical approaches to the concept are investigated. The directions of assessment are considered. The development of existing directions is offered. The needs of financial analysis are outlined. The directions of financial analysis of investment attractiveness are determined. Some results were obtained. It is proposed to assess the investment attractiveness of the enterprise based on the results of financial analysis. The basis of financial analysis is financial reporting. Analysis of financial condition is the basis for financial analysis. It is expedient to carry out the financial analysis in the following section: the analysis of liquidity of the enterprise, its solvency, financial stability, business and market activity, etc.

scholarly journals Assessment of the financial stability of the results of the organization of Sevastopol

2021 ◽  
pp. 161-169
Author(s):  
L. I. Sachenok
Keyword(s):  
Market Economy ◽  
Financial Stability ◽  
Enterprise Management ◽  
Main Element ◽  
Economic Activities ◽  
Economic Stability ◽  
Financial Condition ◽  
Long Time ◽  
The Subject

The assessment of economic stability and solvency is the main element of the analysis of the financial condition necessary for control, allowing to assess the risk of breach of obligations under the calculations of the enterprise. The purpose of the study was to assess the economic stability of the organization and develop measures to improve it in a market economy. The subject was the study of the financial condition of the organization in the aspect of economic stability. The paper evaluates the results of the economic activities of the micro-enterprise LLC “Solveks Group”. The author gives the characteristics of the organization, investigates the reporting indicators to identify errors in enterprise management. The enterprise was unprofitable for a long time, but recently began to make a profit. It became necessary to determine whether this trend is really positive, or whether it hides new problems. The study carries out an analysis of the liquidity and solvency of the organization, during which identifies a number of problems. The author makes recommendations for improving financial stability.

scholarly journals THEORETICAL AND METHODOLOGICAL BASES OF ASSESSMENT OF ECONOMIC STABILITY OF THE TELECOMMUNICATION ENTERPRISE IN THE CONDITIONS OF UNCERTAINTY

2021 ◽  
Vol 2 (2) ◽  
pp. 1-7
Author(s):  
Svitlana Birbirenko
Keyword(s):  
Strategic Management ◽  
Financial Analysis ◽  
Economic Effect ◽  
Economic Consequences ◽  
Practical Significance ◽  
Economic Stability ◽  
Telecommunication Enterprise ◽  
Methodological Principles ◽  
Selection Of ◽  
Telecommunications Company

The article describes the business peculiarities of the telecommunications enterprise and it has been established that changes in the external environment of its activities on their own grounds are a significant factor. This affects the conditions for the implementation of these activities and is a source of a constant threat of results deterioration of these activities, or even its disruption. After all, it is uncertainty that creates the conditions for the emergence of certain barriers in the implementation of measures for strategic management of economic sustainability, leads to a decrease in mobility and adaptability in the development and implementation of strategic measures, contributes to the deformation of key tasks of strategic management, as well as reduces the ability of the enterprise to be characterized by sustainable economic development. The purpose of the paper is to analyze theoretical and methodological formation bases of a set of indicators for assessing the economic stability of a telecommunications enterprise, which operates in modern conditions of uncertainty. Methodology. The study has been carried out on the basis of studying the forms of manifestations, content of uncertainty and sources of risk for the telecommunications company; theoretical and methodological principles of assessing economic stability have been determined through financial analysis; analysis of selection criteria, which are based on the formation of a set of indicators for evaluating the activities of a telecommunications company in conditions of uncertainty, justifying the adequacy of the level of its economic stability, has been performed. Results. In the course of the research the list of sources of risk for the telecommunication enterprise has been defined, the complex of estimating indicators of its economic stability has been formed. It has been established that the key source of uncertainty in the functioning of the telecommunications company is the financial component; it is on its basis that we can assess the economic consequences of both crisis effects and anti-crisis measures. Practical implications. The practical significance is to obtain the economic effect of increasing the economic stability level of the telecommunications enterprise that operates in modern conditions of uncertainty. Conclusions. The defined criteria of selection of indicators taking into account their characteristics represent a basis of a complex formation of balanced indicators of the economic stability estimation of the telecommunication enterprise in the conditions of uncertainty. The indicators of the financial component of a set formation of balanced indicators are characterized by a key role, and their choice should depend on the stage of business development of the telecommunications enterprise, which operates in conditions of uncertainty.

scholarly journals SYSTEM PERFORMANCE FOR RAPID DIAGNOSIS OF FINANCIAL STABILITY OF COMMERCIAL ENTERPRISES EXTERNAL USERS STATEMENTS

2017 ◽  
pp. 57-62
Author(s):  
T. S. Naumenko
Keyword(s):  
System Performance ◽  
Financial Stability ◽  
Financial Analysis ◽  
Rapid Diagnosis ◽  
Factorial Analysis ◽  
Productive Performance ◽  
Standard Methods ◽  
First Order ◽  
Financial Condition ◽  
Definition Of

In this article relevance of timely carrying out the financial analysis of the enterprises in the conditions of an economic crisis is considered; standard methods of the financial analysis of an i obosnovan expediency of use of ways of the factorial analysis of a financial productive performance at the initial stages of evaluating a financial condition of the enterprises for the purpose of timely identification of the negative moments and undesirable tendencies of their development are listed. Much attention in article is paid to definition of a concept of the determined factorial models, allocation of their features and the existing types. Importance of specification of complex factors of the first order on factors of the second and following level is considered; requirements to creation of the combined factorial models; algorithm of calculation of influence on a financial productive performance of factors of the second order in the way of proportional division. In article practical examples of use of a way of proportional division when evaluating influence of articles of current assets on coefficient of the current liquidity and an assessment of influence of main types of expenses on usual kinds of activity for profitability of production are also given; necessary formulas and calculations on the example of the concrete enterprises are given; results of the factorial analysis are generalized.

scholarly journals Key Aspects of Corporate Activities Analysis through the Prism of Domestic Studies

2017 ◽  
pp. 69-77
Author(s):  
О. A. Zorina ◽  
V. V. Riabinina
Keyword(s):  
Financial Stability ◽  
Financial Analysis ◽  
Accounting System ◽  
Business Units ◽  
Financial Condition ◽  
Key Aspects ◽  
Available Information ◽  
Goals And Objectives ◽  
Financial Recovery

Today, the corporate sector features the considerably higher risks of corporate performance with the accordingly higher standards of accountability for results, which largely depend on objectivity, timeliness and comprehensiveness of assessment of the existing and expected financial performance of corporations. This enhances the role and significance of an important analytical field, the corporate activities analysis. The role of economic analysis in the context of market economy and globalization can hardly be overestimated, since the analysis permeates all the operative phases of a corporation. It precedes planning of indicators for the next period, helping organize production processes in a rational and reasonable way, improve collection and processing of information on their progress in the accounting system, assess the situation, and formulate important propositions to correct deficiencies and introduce best practices. Financial analysis is important in the economic operation of a corporation as it enables it to seek reserves to improve its financial condition; to assess the adequacy of use of all the types of financial resources; to take timely measures to improve the solvency, liquidity and financial stability; to ensure optimal production and social development by use of reserves found through the analysis; to develop plans for financial recovery. Methodology and organization of the corporate activities analysis is conditional on the organization and operation specifics of corporate enterprises. The following characteristics of a corporation are covered by analysis: economic activity; technological and organizational structure; interaction of business units within a corporation; capitalization; budgeting; integration of information system for analysis; variability in the conditions of risk. The review of studies devoted to corporate activities analysis shows that domestic and foreign experts offer different methods for analysis of financial statements, depending on the goals and objectives of the analysis, available information, technical support, the efficiency of solutions for analytical and management tasks, experience and qualification of staff. The corporate activities analysis will be more objective when new analysis concepts are adopted, focused on the future.

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