Cevhanova Vira, PhD in Economics, Professor Department of Enterprise Economics and Personnel Management, Poltava national technical Yuri Kondratyuk University, Poltava, Ukraine

ORCID ID: 0000-0002-9818-9571
e-mail: olgasosnovska79@gmail.com

Methodical Approaches to Diagnosing the Financial Status of the Enterprise

Abstract. Introduction. Diagnostics of financial activity is one of the most important components of business economic analysis. It contributes to the indication of the competitiveness of a business, to monitor its liquidity, creditworthiness, financial stability and market position, and to develop mechanisms to guard against bankruptcy. All subjects related to the business life of the company and business should use financial analysis methodology to make data-driven decisions aimed at optimizing their interests. The process of diagnosis of the financial status of the enterprise is a complex concept that uses a combination of factors, which are the basis of methods of bankruptcy forecasting, assessing the borrower’s creditworthiness and analyzing the investment attractiveness of the enterprise. Appropriately based diagnosis helps to ensure that the financial resources are used rationally and therefore the efficiency and the competitiveness of the enterprise are managed.

Purpose. The purpose of the research is to review and compare the methods and tactics used to diagnose the financial status of enterprises and the results of their activity. This will enable enterprises to identify and prevent shortcomings in financial activities, find reserves for improving the financial position of the company and its solvency.

Conclusions. The article sets out the subject matter of the financial status of enterprises, together with relevant researched theoretical and methodical foundations and modern scientific approaches to its interpretation are generalized. The significance and necessity of diagnostics of financial conditions are substantiated. The fundamental stages of conducting financial diagnostics are identified, the collection of indicators employed is analyzed, the main tasks of action are formulated. Criteria and primary methods of diagnostics of the financial status of enterprises are considered.

Keywords: diagnostics; financial condition; liquidity; solvency; profitability; financial stability.

References:

1. Andriychuk, V.G. (2002). Economics of agrarian enterprises. Kyiv: KNEU [in Ukrainian].
2. Vlasyuk, V.Ye. (2015). Formation of the financial and credit system in the conditions of world globalization. Finances of Ukraine, 12, 89-94 [in Ukrainian].
3. Gadzevich, O. I. (2004). Fundamentals of economic analysis and diagnostics of financial and economic activity of enterprises. Kyiv: Condor [in Ukrainian].
4. Goncharov, A. B. (2005). Financial Management. Kharkiv: VD “INZHEK” [in Ukrainian].
5. Gotra, V. V. (2017). Diagnostics of the financial condition of the enterprise and ways of its improvement. Bulletin of the Mukachevo State University, series “Economics and Society”, 8, 219-223 [in Ukrainian].
6. Dovgal, N.S. (2008). Methodical bases for assessing the efficiency of using the resource potential of an enterprise. Scientific and Technical Informatio, 4, 55-57 [in Ukrainian].
7. Kopchak, Yu. S. (2016). Problems of diagnostics of financial condition and stability of the enterprise’s functioning. Sumy State University, 9 (68), 23-34 [in Ukrainian].
8. Kudryashov, V.P. (2015). Finances-Kherson: OLDI-plus [in Ukrainian]
9. Lakhtionova, L. A. (2009). Financial analysis of subjects of management . Kyiv: KNEU [in Ukrainian]
10. Podhomniy, O. M. (2017). Diagnosis of the financial state of the enterprise. Economic sciences. Series “Accounting and Finance”, 23, 234-237 [in Ukrainian].
11. Pokroplyvny, S. F. (2001). Economics of the enterprise. Kyiv : KNEU [in Ukrainian].
12. Sycheva, G. I. (2003). Estimation of the value of the enterprise (business). Rostov on the Don: “Phoenix” [in Russinian].
13. Frolova, L. V. (2013). Management of the Economic Potential of Trade Enterprises. Donetsk: Nulledzh (Donetsk branch) [in Ukrainian].
14. Tsigilnik, I. I. (2013). Enterprise Economics (in questions and answers). Kyiv: Center for Educational Literature [in Ukrainian].
15. Shpak, N. S. (2015). Capital Management System of the Enterprise. Scientific Bulletin of NLTU of Ukraine, 10, 257-261 [in Ukrainian].