Indicators of The Analysis of The Financial Condition of The Enterprise

Аннотация

The article examines the theoretical aspects of analyzing the financial condition of an enterprise, namely the concept, essence and indicators of analyzing the financial condition of an enterprise. Various research methods have been used, and a lot of literature has been studied in the field of the research topic. The theoretical significance of the research lies in the systematization of approaches to the disclosure of the economic content of the concept of “financial condition”, as well as in the theoretical analysis of methods for analyzing the financial condition of an enterprise. Keywords: Financial statements, financial condition, liquidity, solvency, profitability, financial stability, business activity, bankruptcy. results of its activities and possible development Introduction: In the process of implementing financial prospects of the organization are assessed” [1, p. 138]. and economic activities, the enterprise pursues the goal of extracting maximum profit, as well as improving L.M. Kupriyanova gives the following definition: its financial indicators. However, the final financial “Financial condition is a complex concept that is result and the efficiency of the enterprise are characterized by a system of indicators reflecting the influenced by numerous factors, therefore, conducting availability, placement and use of financial resources of an analysis of the financial condition of the enterprise an enterprise; it is a characteristic of its financial is relevant today. competitiveness (i.e. solvency and creditworthiness), fulfillment of obligations to the state and other Thanks to the conducted analysis of the financial economic entities” [2, p. 95]. condition of the enterprise, it is possible to determine important criteria, such as such as the level of liquidity By in the opinion of G.V. Savitskaya: “Financial analysis and solvency, profitability and financial stability and is a system of specialized knowledge associated with other criteria. the study of economic processes and phenomena in their interrelationships, developing under the influence Analysis of literature of objective and subjective factors, it is one of the most Financial condition of the enterprise is the link between important tools for obtaining accounting and management decision-making. Today, information needed for making management there are many definitions of the term under study. The decisions” [3, p. 193]. financial condition of an enterprise is a category that reflects the state of capital in the process of its Yu.G. Chernysheva states that: “Financial analysis this circulation and the ability of the enterprise to self- is an objectively necessary element of enterprise development at a fixed point in time, i.e. the management, with the help of which the essence of availability, placement and effective use of financial business processes is determined, the financial resources. situation is assessed, production reserves are identified and decisions are made for planning and management” N.V. Kireeva says that: “Analysis of the financial [4, p. 317]. condition of an enterprise is a process by which the past and present financial position of an enterprise, the V.G. Slagoda states: “Financial analysis - this is a International Journal of Management and Economics Fundamental 18 https://theusajournals.com/index.php/ijmef International Journal of Management and Economics Fundamental (ISSN: 2771-2257) scientific way of understanding the essence of RESULTS economic phenomena and processes, based on The main objectives of the analysis of the financial dividing them into their constituent parts and studying condition of the enterprise are presented in Figure 1. them in all the diversity of connections and dependencies” [5, p. 116]. e s Systematic control for the formation of financial results i r p r e t n e e Grade the influence of objective and subjective factors h t on financial results f o n o i t i d Grade the influence of external and internal factors on n financial results o c l a i c n Identification of the magnitude profit and profitability a n i levels e f h t f o s Forecasting the amount of profit and the level of i s profitability y l a n a s k s a Development of directionsby identified reserves T Figure 1. The main tasks of the analysis of the financial condition of the enterprise. reveals the economic potential and the level of As a result of studying many terms, one can come to solvency and financial stability, reflects the degree of the conclusion: “the purpose of conducting an analysis security of financial relationships with partners and of the financial condition of an enterprise is to identify future investors. reserves for improving activities and increasing solvency and financial stability, as well as eliminating The analysis of the financial condition of the enterprise violations and deficiencies identified during the is carried out based on the data of the financial analysis.” statements for the research perio