A Comparative Characterization of Methods for Assessing the Financial Security of Economic Entities

Abstract

The article is aimed at a comparative analysis of different methods of assessing the level of financial security of enterprise, defining their advantages and disadvantages, as well as substantiation of the choice of the most optimal and acceptable for a particular enterprise methods to assess the level of its financial security. Consideration of different methods for assessing the financial security of an economic entity based on the use of financial coefficients helped to divide them into indicator and integral ones (including the models using integrated assessments and bankruptcy forecasting models) and to identify their advantages and disadvantages. Practical application of these methodologies on the basis of a particular enterprise allowed to detect their problematic aspects in the context of both the composition of indicators (coefficients) and their number, and the interpretation of the results of calculations, which were conducted in accordance with these methods. It is proved that under certain conditions of operation of national enterprises, certain methods are unacceptable for use, as they are based on insufficient financial information. The feasibility of assessing the financial security of enterprise in the short and long term is substantiated, correspondingly varying the composition and number of financial indicators used for such an assessment. Prospects for further research are seen in the development of a universal methodology for assessing the financial security of enterprise, which would ensure the simplicity of calculations, complete accounting of the input information flow, high reliability of the results obtained.

Keywords

• financial security of enterprise
• indicator and integral assessment methods
• comprehensive indicators
• integral indicator