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Analysis Of Financial Stability Of Energy Enterprises

Journal: Innovative Economics and Management (Vol.IV, No. 2)

Publication Date:

Authors : ;

Page : 93-101

Keywords : Financial analysis; Financial condition; Financial sustainability; Creditworthiness; Solvent; Liquidity; Energy Enterprise.;

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The correctness of decision made is determined by economic status of enterprise and its financial relevance and independence. Based on indicators of financial analysis is possible to identify current state of enterprise, to forecast trends of company development and activity, and also to get rid of different negative developments and threats. That is why the role of financial analysis in the assessment of results of enterprise activity is undisputed. Based on the fact that power engineering plays special role in formation and development of Georgian economy, exactly the energy branch is selected for aims of financial analysis. The whole system of relative and absolute indices was use in the proposed work. Analysis of financial status consisted of consecutive study of the following types of indicators: assessment of financial opportunity (liquidity), financial results, profitability, analysis of financial stability of enterprise etc. Analysis of financial accountability of energy enterprise was conducted over the period of last 5 years (2011-2016). Paying capacity (liquidity) is the basic indicator pointing at financial stability of organization, which consists in the opportunity of effective dispose of available money resources. The control of financial liquidity is focused on limiting the actual values of indicators within acceptable limits of normative standards. But judging by actual value of current liquidity index over the period of 2011-2016 we can conclude that ISC has no sufficient funds (means) to completely cover current obligations. Obtained results of the value of index of facility's financial stability give us an opportunity to conclude that JSC has normal financial stability. It is the basic indicator of stability and paying capacity of organization, which consists in the opportunity of effective dispose of available money resources. Mentioned index characterizes enterprise's ability to settle own current obligations and judging by its actual value over the period of 2011-2016, JSC has no sufficient funds (means) to cover current obligation that probably leads it to credit institutions in order to get additional funds.

Last modified: 2018-05-21 16:07:01