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Problems of Financial Sustainability Analysis of Manufacturing Enterprise

Journal: Scientific Bulletin of Mukachevo State University. Series “Economics” (Vol.6, No. 1)

Publication Date:

Authors : ;

Page : 124-130

Keywords : solvency; creditworthiness; availability of financial resources; financial sustainability; business entity; manufacturing enterprise;

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The purpose of the article is to reveal the peculiarities of a comprehensive analysis of the financial sustainability of a production enterprise, namely that which could become the basis of optimization decisions. It has been determined that according to traditional approaches to the analysis of financial stability, an entity is not able to assess its available reserves for development, under conditions of acceptable level of risk (that is, with the provision of an optimal level of financial stability). In the article the features of complex analysis of the financial stability of a production enterprise have been disclosed, namely, that which can become the basis of optimization decisions. The outline is achieved at the expense of the following research tasks: the definition of the variables that contribute to the complex analysis of the financial sustainability of the production enterprise; characteristic of changing properties of the internal state of financial stability of the enterprise and the peculiarities of their analysis. The author's approach is to provide requirements for the complex analysis of the financial stability of a production enterprise based on the use of its variables, namely: solvency, creditworthiness, financial resources. In the study, coefficient methods and methods of balance-sheet agreement, within the organization of data processing and the comparison of systems interrelated variables of the properties of financial sustainability of the enterprise have been applied. According to the results, it has been proved that the ball form of concretization of variables in the analysis of financial stability quite effectively summarizes the results concerning: the limits of the use of liquid assets; conditions that determine the financial capacity of the entity; level of provision of assets and liabilities. This approach distinguishes the possibility of compiling a portrait of financial sustainability of the enterprise, as an abstract description of its main properties. The practical significance of the results lies in the possibility of their use for the development of optimization solutions, the formation of a forecast scenario of optimization (within the formalization of the target function of the process of optimization changes). Further research will be aimed at adapting the results of the research to the practical activities of manufacturing enterprises in the region.

Last modified: 2021-08-17 21:53:47