Assessing the financial stability of commercial organizations and activities on its increase
- Authors: Gutkovskaya E.A.1, Kolesnik N.F.2
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Affiliations:
- Department of Accounting, Analysis and Audit, Ogarev Mordovia State University, Saransk, 430000, Russian Federation.
- Department of Accounting, Analysis and Audit, Ogarev Mordovia State University, Saransk, 430000, Russian Federation.
- Issue: Vol 6, No 2 (2015)
- Pages: 35-46
- Section: MANAGEMENT
- URL: https://journals.ssau.ru/eco/article/view/5585
- DOI: https://doi.org/10.18287/2542-0461-2015-0-2-35-46
- ID: 5585
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Abstract
For ensuring modern level of competitive production stable activities of an organization is required, in connection with what the problem of ensuring financial stability is actualized. This requires further study of methodological maintenance of assessment of financial stability, predictive analytical work of an organization related to the identification and prevention of financial difficulties. The use of effective techniques for assessment financial stability of an organization will allow to develop recommendations on how to improve and expand the capabilities of information and analytical support of management by business entity. The aim of the work is to study the existing methods for assessment financial stability and the development of measures to improve the financial sustainability of an enterprise. To achieve this goal, the following objectives are defined: carry out comparative analysis of definitions of financial stability and refine its concept as the most important object of analysis; review existing methodological approaches to the assessment of financial stability - carry out an analysis of financial stability of an enterprise using the techniques of various authors on a concrete example; identify the factors negatively affecting financial stability; determine parameters characterizing the financial stability; make recommendations to improve financial stability of an organization. In this paper, using the techniques of various authors, assessment of financial stability of a particular company is carried out. Using peer evaluation method of financial stability, based on the totality of particular criteria and calculation of complex indicator of financial stability, the probability of bankruptcy of an enterprise is revealed and the prognosis of financial difficulties is composed. According to the results of carried out analysis of financial stability of the factors adversely affecting financial position of the company are defined and recommendations on increasing financial stability, including the acceleration of capital turnover in current assets, replenishment of net worth, regular assessment of solvency on the basis of examining of cash flows and others are developed. It is concluded that in order to prevent crisis situation in the financial performance of an enterprise and increase of financial stability it is necessary to carry out a series of preventive measures.
About the authors
E. A. Gutkovskaya
Department of Accounting, Analysis and Audit, Ogarev Mordovia State University, Saransk, 430000, Russian Federation.
Author for correspondence.
Email: morenov.sv@ssau.ru
N. F. Kolesnik
Department of Accounting, Analysis and Audit, Ogarev Mordovia StateUniversity, Saransk, 430000, Russian Federation.
Email: morenov.sv@ssau.ru
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