MONITORING OF THE FINANCIAL CONDITION OF THE COMPANY

Abstract

Topic: nowadays, many companies are on the market of high competition and are in need of new methods of needs assessment in the market in their products. In this study the methodology of calculation of the breakeven point and its projection of the dynamics of changes in the time lag will allow new businesses to forecast and take into account seasonal fl uctuations in demand for their products.Goals/objectives: the Authors of this publication have set ourselves three main goals: to improve the classical method of determining the breakeven point; to identify the dynamics and patterns of basic mathematical relations that determine the interdependence between the volume of sales (income) and total costs; the possibility of applying this methodology economists in production to implement predict the future costs of production.Methodology: the Authors used the conventional scientifi c approaches and methods to analyse and identify mathematical relationships that take into account the specifi c economic and industry conditions and can be further used as template functions to predict the break-even point at a certain time lag.Results: the study authors derived a mathematical relation of volume of sales and total costs, which allows the maximization of the profi ts of Russian companies [1, 2].Discussion/application (if any): explores options graphs break-even point. Revealed that some products have a life cycle with two break-even point (at the fi rst point shows the future profi tability of the enterprise, and in the second point shows the beginning of a losing period and the need to remove product from production).Conclusions/signifi cance: Further research allowed for the monitoring of break-even point in time for which the article demonstrates the possibility of charting the break-even point in three-dimensional space that allows you to track the profi tability of the enterprise and to avoid a possible bankruptcy at a certain time lag.

Keywords

• monitoring
• financial condition
• the break-even point
• outlook
• economic and mathematical modeling
• functional dependencies
• a three-dimensional space
• time lag
• the threshold of profi tability and production inefficiency