Energies (Feb 2023)
Determining of the Bankrupt Contingency as the Level Estimation Method of Western Ukraine Gas Distribution Enterprises’ Competence Capacity
Abstract
The functioning of Ukrainian national gas sector is directly dependent on the processes of fuel and energy resources consumption and trends in domestic and foreign markets. Nowadays, the majority of approaches and methods are formed with the obligatory use of expert assessment methods, which, in its turn, predetermines relatively subjective judgments and results. In the process of conducting a comprehensive analysis of financial and economic indicators and those reflecting the results of economic activity of gas distribution network operators functioning in the western region of Ukraine, the following approaches have been used in our study with the involvement of: Altman’s two-factor model; Altman’s five-factor model; Lis’s bankruptcy prediction model; Richard Taffler’s model; Beaver’s coefficient; Tereshchenko’s model and Matviychuk’s model; however, the existing models for diagnosing bankruptcy of enterprises are characterized by ambiguity; as for example, if Lis’s model indicates a low bankruptcy level, then other models prove the opposite situation; domestic diagnostic models need to be improved, as they were developed in the early 2000s and disregard current trends in functioning of enterprises. Since the existing models for diagnosing the bankruptcy of enterprises are characterized by ambiguity, the authors proposed and approbate their own approach to determining the level of competitiveness of gas distribution network operators. A feature of the proposed methodology is taking into account modern trends in the functioning of enterprises, taking into account the peculiarities of the activities of gas distribution network operators, and the market stage. A tangible advantage of this approach is the ability to identify the presence or likelihood of critical events at an early stage.
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