FINANCIAL STATUS DIAGNOSIS AS AN ENTERPRISE MANAGEMENT INSTRUMENT

Keywords: diagnostics, indicators, enterprise, financial status, analysis, stages.

Abstract

The stages of carrying out the process of financial diagnostics as a tool for ensuring the viability of enterprises are suggested. It is established that if you consistently adhere to the proposed steps, the company will be able to achieve effective viability. It has been determined that, in order to maintain a sound financial position, business leaders need to have timely diagnostics of financial performance indicators that will help identify existing problems in the enterprise and properly coordinate bankruptcy prevention activities. According to the aggregate balance, the type of financial stability of the studied enterprise is established, by determining the degree of sufficiency of own or borrowed working capital for production and sales activities. Diagnosis of financial and economic indicators of the investigated enterprise is carried out on the basis of assessment of property status, liquidity (solvency), financial stability, profitability and business activity. It has been established that financial diagnostics, as a tool for ensuring the viability of the enterprise, allows to identify deficiencies and problems in the activity of the enterprise, and through systematic financial analysis, it is possible to accurately diagnose and identify the causes of any negative or positive indicators and trends. It is determined that to make rational and effective management decisions to achieve all the goals and objectives of the enterprise, it is necessary to conduct financial diagnostics of the entity.

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Published
2020-07-09
How to Cite
Buhai , V. Z., & Firsova, I. (2020). FINANCIAL STATUS DIAGNOSIS AS AN ENTERPRISE MANAGEMENT INSTRUMENT . Bulletin of Zaporizhzhia National University. Economic Sciences, (2 (46), 9-14. Retrieved from http://journalsofznu.zp.ua/index.php/economics/article/view/356