Practical Aspects of Assessing the Financial Resources of an Enterprise

Abstract

The aim of the article is to justify and test a methodological approach to assessing the level of financial resources based on a summarizing rating indicator, using an example of an oil-producing enterprise, as well as to study the changes in the state of financial resources of Ukrnafta OJSC during 2016–2018. The article discusses several methodological approaches to assessing the financial state of an enterprise applying the method of ratios, without bringing them to a single indicator. These methodologies imply assessment of a significant number of indicators and need for their interpretation.However, as regards the simplicity of calculation and interpretation, a methodology for assessing financial resources proposed by R. K. Shurpenkova and T. V. Kalaitan is of interest.It involves express analysis of 5 key financial indicators characterizing liquidity, solvency and financial stability as well as determination of a synthetic rating indicator of financial resources. Based on the financial statements of Ukrnafta OJSC for the last 3 years, using this methodology, an assessment of the financial resources of the enterprise is carried out.The retrospective analysis of Ukrnafta OJSC allows to conclude that the company has an unsatisfactory financial state since the value of the rating indicator for assessing financial resources is less than 1. To improve the situation, the company should optimize the structure of current and non-current assets, attract additional funds from the owners and make timely settlements with creditors by using budgeting and drawing up a payment calendar, as well as reduce the amount of current liabilities by obtaining credit funds for a longer period of time.

Keywords

• financial resources
• financial state
• valuation
• oil-production enterprise