Open AccessTHE ESSENCE AND DIAGNOSTICS OF THE ENTERPRISE FINANCIAL STATUS
Author(s) -
Юрій Тараруєв
Publication year - 2021
Publication title -
problemi sistemnogo pìdhodu v ekonomìcì
Language(s) - English
Resource type - Journals
ISSN - 2520-2200
DOI - 10.32782/2520-2200/2021-2-16
Subject(s) - cash flow , business , finance , financial analysis , market liquidity , risk analysis (engineering)
The paper is dedicated to the problems of identification and diagnostics of the enterprise financial status. The main attention is paid to the methods of assessing the current financial status of the enterprise. The author’s definition of financial status of the enterprise is performed in the paper, as a result of the analysis of current variants of that concept determinations. The financial status of the enterprise is determined in the paper as a multiple enterprise characteristic which includes current incoming, distribution and investment financial resources. The diagnosis of financial status is defined in the article as an evaluation of incoming, distribution and investment of financial resources of the enterprise with indicators that comprehensively characterize its current activities. The factors of capital structure, liquidity and cash flow effectiveness is proposed in the paper as indicators of the enterprise financial status. which can be used to provide the diagnostics. The integrated indicators of enterprise financial status and its current effectiveness (which based on enterprise cash flow factors) is presented in the paper in order to summarize the results of financial status diagnostics. This approach illustrates the important choice of enterprise between such alternatives as: a) accelerated development and financial risks; b) financial stability and limited capital growth. The final result of the paper is the matrix called «financial state-efficiency of activity» which allows to get interpretation of the concluding diagnostics procedures. Key features of the matrix application are similar to those used to substantiate managerial decisions in the strategic management. The practical implementation of this matrix allows the enterprise to ensure equilibrium between development (by increasing current liabilities) and improvement of enterprise financial positions (by increasing the value of liquid assets and optimization of capital structure). The results of the paper can be used to improve the financial status of enterprises, regardless of its sectoral specificity.