METHODICAL APPROACH TO THE INTEGRAL ASSESSMENT OF FINANCIAL SAFETY OF MACHINE-BUILDING CORPORATIONS

Abstract

The article deals with development of methodical approach to the integral assessment of financial safety position of machine-building corporations with reference to defining safety margins of the certain indicators chosen for the research in order to simplify the analysis and to the fullest extent possible to highlight special features of financial and economic activity of the abovementioned business entities, their organizational and legal form and production life cycle. The research suggests making calculations of the integral value of financial safety by summing up margin safety values for each sub aggregates taking into account their weight coefficient in the concerned assessment that will contribute to smoothing the trend line of the integral value in the dynamic development and increasing the reliability and the accuracy of analysis. Drawing up of methodology for the integral assessment of financial safety at machine-building corporations has been carried out by applying progressive methods of financial and economic analysis and modern approaches to organizing scientific researches and investigations as well as with strict observance of certain stages of the analysis. The concept of a safety margin has been introduced, it is a relative value that shows the real status of financial safety at an enterprise according to a certain characteristic and is calculated in diverse ways depending on the standard value of the analyzed indicator. We offer to set threshold values for a safety margin of financial safety indicators taking into account their possible increase to a certain limit defined by expert means or on the principle of choosing the largest real value of a particular indicator. The rates of weight have been introduced and they enable to adjust a value of the integral indicator in view of technical and technological special features of production and sales of machine-building production. The scientifically-based approach allows assessing financial safety in a completely new format and comparing economic development potential of machine-building corporations which are different in size, equity, branches of activities.

Keywords

• financial safety
• integral indicator
• financial state indicators
• safety margin
• corporations.