Financial stability of the enterprise: evaluation and ways of improvement

Dombrovska Sofiia
PhD in Economics, Lecturer at the Department of Financial Management and Stock Market, Odesa National Economic University, Odesa, Ukraine, e-mail: sonya0493@rambler.ru

Horbachenko Maryna
student of Distance learning Center, Odesa National Economic University, Odesa, Ukraine, e-mail: dm.gorbachenko25@gmail.com

Cite this article:

Dombrovska S., Horbachenko M. Financial stability of the enterprise: evaluation and ways of improvement. Scientific Bulletin of the Odessa National Economic University. 2021. № 3-4 (280-281). pp. 28-34.

Abstract

The article is devoted to the study of the economic essence and analysis of the methodological foundations of the process of assessing financial stability, theoretical aspects of the influence of factors on ensuring the optimal level of financial stability of the enterprise. The article examines the essence of financial stability, which is a prerequisite for the successful existence of an enterprise in modern economic conditions. The paper discusses the theoretical foundations of financial stability management, namely, substantiates the need for such stability for enterprises operating in an unstable economy. The article explores the concept of financial stability from the point of view of different authors. Own interpretation of the category «financial stability of the enterprise» is given. It reflects how modern conditions for business development affect the financial stability of an enterprise. Identified endogenous and exogenous factors that affect the activities of the enterprise. It has been established that the formation of a matrix of factors of influence on financial stability makes it possible to predict the vector of development of the enterprise in the future. An algorithm for managing the financial stability of an enterprise has been developed based on the use of certain tools corresponding to various stages of management. The methodological aspects of the process of assessing the financial stability of an enterprise have been determined. The basic indicators of financial stability are presented, which provide an opportunity to determine the level of development of an enterprise. Attention is paid to the need for a timely analysis of the financial stability of economic entities. The importance of the stage of analysis of financial stability, based on relative indicators, and which is of particular importance for managing the financial stability of an enterprise has been substantiated. Analysis and assessment of financial stability makes it possible to identify the «bottlenecks» of the enterprise and weaknesses that need to be adjusted. The paper formulates the main ways to improve the financial condition of the enterprise in order to ensure the maximum development of the enterprise and achieve greater profits. Recommendations for stabilizing the financial activities of the enterprise have been developed.

Keywords

financial stability, enterprise capital, solvency, indicators of financial stability, methods for assessing financial stability.

JEL classification: С 450, G 320

УДК: 658.14

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