The Approaches to the Formation and Assessment of the Financial Stability of Enterprise

Abstract

The article is aimed at allocating approaches to determining the essence of financial stability, factors that cause it and substantiating the basic methodical approaches to its assessment. The approaches to determining the essence of financial stability are systematized, namely: as the status of both enterprise and its financial resources; as both ability and capacity of the enterprise to fulfill certain obligations and achieve results; both as an integrated and generalizing characteristic of the enterprise in general or as its financial position in particular; as solvency ensured in a certain time period and under certain conditions. The author substantiates the importance of assessing financial stability, the purpose of which is to determine the degree of dependence of the enterprise on external sources of financing, the level of financial risk, the ability to fulfill financing at the expense of the own financial resources, setting the zone and reserve of financial stability. The main features of financial stability of the enterprise and approaches to its assessment are singled out. The need to analyze the structure of financial resources is substantiated and the algorithm of grouping of the own, involved and borrowed financial resources in accordance with certain articles of balance is provided. A calculation mechanism is presented and the values of the main indicators used to assess financial stability are outlined. It is emphasized that only a balanced approach to the formation of a certain level of financial stability on the basis of its careful valuation can be the guarantee to a stable growth of business profitability, ensuring creditworthiness and investment attractiveness of the enterprise.

Keywords

• financial stability
• solvency
• financial security
• financial resources
• financial risk