DIAGNOSIS OF THE COMPANY'S FINANCIAL CRISIS AS A MEASURE TO PREVENT INSOLVENCY
Abstract
The purpose of the article is to conduct a theoretical analysis of the diagnosis of the company's financial crisis in terms of insolvency prevention. A financial crisis is the likelihood of insolvency and bankruptcy of an entity that is below break-even point or lacks the capacity to perform better, and is an unplanned process of limited activity and limited ability to influence financial relationships with unpredictable outcomes that threatens further existence. and enterprise development. In the context of the general economic downturn, most economic entities are in crisis, namely enterprises and organizations of certain industries and sectors of the economy, especially material production, which is most sensitive to changes in the phases of the economic cycle. Bankruptcy is one of the main elements of a market economy, as it creates a competitive business environment by removing inefficient businesses from the market. In addition, the bankruptcy mechanism is designed to restore the solvency of enterprises that are temporarily in a difficult situation, and subject to the application of reorganization procedures, they are able to continue to operate effectively in the market. Research methodology.Achieving the goal set in the article is carried out using the following research methods: monographic, descriptive, methods of comparative analysis, as well as the use of qualitative, graphical methods and grouping methods. Results. It is proposed to diagnose the financial crisis as a measure to prevent insolvency and bankruptcy. The efficiency of enterprises depends on how quickly, timely and fully they can perform calculations, which in turn depends on the efficiency of enterprise management. The consequences of bankruptcy for the state are extremely negative, as the functioning of financially unstable enterprises leads to a deterioration of the economic situation in the country. In addition, the disappearance of one enterprise can lead to disruption of technological chains in production, increasing social tensions. The practical significance of the research results. The practical use of the proposed theoretical and applied approaches will increase the efficiency of the enterprise.
References
Бернстайн, Л.А. (2003). Аналіз фінансової звітності. – 65–78с.
Білик, М.Д. (2005). Фінансовий аналіз. КНЕУ. – 366–370с.
Рудницька, О.М., & Біленська, Я.Р. (2009). Шляхи покращання фінансового стану українських підприємств. 132–137 c. URL: http://ena.lp.edu.ua:8080/bitstream/ntb/2700/1/19.pdf (дата звернення 20.10.2021)
Altman, E. (1968). Financial ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance, vol.2, pp. 589–609.
Altman, E.I., & Eisenbeis, R.A. (1978). Financial applications of discriminant analysis: a clarification. Journal of Financial and Quantitative Analysis, 13(1), – 185–195 с.
Асаул А.Н., Коротаєва Ю.В., Князь І.П. Теорія і практика прийняття рішень з виходу із кризи (2007) – 224с.
Bajmahambetova, G. I. (2010). Diagnostika krizisa v antikrizisnom upravlenii. Vestnik KazNU, № 5 (81), pp. 87–92.
Berzkalne, I. (2016). Komercsabiedribu kapitala strukturas ietekme uz darbibas finansu rezultatiem. Doctoral Thesis. Riga: University of Latvia, – 347–350с
Blank, I.A. (2006). Antikrizisnoe finansovoe upravlenie predprijatiem. KIEV: El’ga.
Darling, J.R., Kash, T. (1998). Crisis Management: Prevention, Diagnosis and Intervention. Leadership & Organization Development Journal, vol. 19, pp.179–186.
Fulmer, J.G. (1984). A Bankruptcy Classification Model for Small Firms. The Journal of Commercial Bank Lending, pp.25–37
Garskaite-Milvydiene, K. (2012). Diagnostics of bankruptcy threat to enterprises, Journal of Security and Sustainability Issues 1 (3), pp.197–203
Korotkov, E. M., (2010). Antikrizisnoe upravlenie. Moskva: INFRA-M. – 29–39с.
Mackevičius, J. (2008). Įmonių veiklos analizė – informacijos rinkimo, tyrimo ir vertinimo sistema. Informacijos mokslai, (46), pp. 46–56.
Meiste, R., Jakstiene, S. (2015). Crisis Diagnosis in Anti-Crisis Management Process in a Company. Institute of Economic Research Working Papers, no. 9/2015. URL: http://economic-research.pl/Journals/index.php/oc/article/view/154. (дата звернення 20.10.2021)
Olena, D., Valeriya, Y., Nataliya, M., Olga, R., & Katerina, K. (2018). THEORETICAL ASPECTS OF DETERMINATION OF ENTERPRISES CRISIS ON THE BASIS OF MODERN EVALUATION AND ANALYSIS MODELS. Perspectives of modern scientific research, 5. URL: http://conferencii.com/files/archive/2018-05.pdf (дата звернення 20.10.2021)
Rosenblatt, M. (1989). Asymptotic Normality, Strong Mixing and Spectral Density Estimates.,. 12 (4), pp.1167–1180.
Sabelfeld, T. V., Shavandina, O. A. (2006). Analiz podhodov i metodov diagnostiki krizisnogo sostojanija predprijatija. Polzunovskij vestnik, №3, pp.185–190.
Sakalas, A., Virbickaite, R. (2011). Construct of the Model of Crisis Situation Diagnosis in a Company. Engineering Economics, Vol. 22 (3), pp. 255–261.
Šneidere, R. (2007). Finansu analizes metodes uznemuma maksatnespejas prognozesanai. Doctoral Thesis, URL: https://dspace.lu.lv/dspace/bitstream/handle/7/5256/6494-Ruta_Sneidere_2007.pdf?sequence=1(дата звернення 20.10.2021)
Taffler, R. J. (1984). Empirical models for the monitoring of UK corporations. Journal of banking & finance, 8(2), 199–227.
Bernstain, L.A. (2003). Analiz finansovoi zvitnosti [Analysis of financial statements] pp. 65–78
Bilyk, M.D. (2005). Finansovyi analiz. KNEU [Financial analysis]. pp. 366–370.
Rudnytska, O.M., Bilenska, Y.R. (2009). Shliakhy pokrashchannia finansovoho stanu ukrainskykh pidpryiemstv. [Ways to improve the financial condition of Ukrainian enterprises] 132–137 pp. Retrieved from http://ena.lp.edu.ua:8080/bitstream/ntb/2700/1/19.pdf (accessed 22 October 2021)
Altman, E. (1968). Finansovi koefitsiienty, dyskryminatsiinyi analiz ta prohnozuvannia bankrutstva korporatsii. [Financial ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy] Journal of Finance, vol.2, pp.589–609.
Altman, E.I., & Eisenbeis, R.A. (1978). Finansovi zastosuvannia dyskryminantnoho analizu. [Financial applications of discriminant analysis]: a clarification. Journal of Financial and Quantitative Analysis, 13(1), – pp.185–195
Asaul A.N., Korotaieva Yu.V., Kniaz I.P. (2007) Teoriia i praktyka pryiniattia rishen z vykhodu iz kryzy. [theory and practice of decision-making to overcome the crisis] p. 224
Bajmahambetova, G.I. (2010). Diagnostika krizisa v antikrizisnom upravlenii. [crisis diagnosis in crisis management] Vestnik KazNU, № 5 (81), pp. 87–92
Berzkalne, I. (2016). Vplyv struktury kapitalu komertsiinykh kompanii na finansovi rezultaty diialnosti. [The influence of the capital structure of commercial companies on the financial results of activities] Doctoral Thesis. Riga: University of Latvia, – pp. 347–350
Blank I.A. (2006) Antykryzove finansove upravlinnia pidpryiemstvom, [Anti-crisis financial management of the enterprise] Kyiv.
Darling, J.R., Kash, T. (1998). Kryzove upravlinnia: poperedzhennia, diahnostyka ta vtruchannia [Crisis Management: Prevention, Diagnosis and Intervention]. Leadership & Organization Development Journal, vol. 19, pp.179–186
Fulmer, J. G. (1984). Model klasyfikatsii bankrutstva dlia malykh firm [A Bankruptcy Classification Model for Small Firms]. The Journal of Commercial Bank Lending, pp.25–37
Garskaite-Milvydiene, K. (2012). Diahnostyka zahrozy bankrutstva pidpryiemstvam [Diagnostics of bankruptcy threat to enterprises], Journal of Security and Sustainability Issues 1 (3), pp.197–203
Korotkov, E. M., (2010). Antikrizisnoe upravlenie [Crisis management]. Moskva: INFRA-M. – pp. 29–39.
Mackevičius, J. (2008). Analiz diialnosti pidpryiemstva – systema zboru, doslidzhennia ta otsinky informatsii. [Analysis of the enterprise - a system of collecting, researching and evaluating information.], (46), pp. 46–56.
Meiste, R., Jakstiene, S. (2015). Kryzovyi diahnoz u protsesi antykryzovoho upravlinnia u kompanii. Robochi dokumenty Instytutu ekonomichnykh doslidzhen [Crisis Diagnosis in Anti-Crisis Management Process in a Company]. Institute of Economic Research Working Papers, no. 9/2015. URL: http://economic-research.pl/Journals/index.php/oc/article/view/154. (accessed 20 October 2021)
Olena, D., Valeriya, Y., Nataliya, M., Olga, R., & Katerina, K. (2018). TEORETYChNI ASPEKTY VYZNAChENNIa KRYZY PIDPRYIeMSTV NA OSNOVI SUChASNYKh OTsINKOVO-ANALIZU [THEORETICAL ASPECTS OF DETERMINATION OF ENTERPRISES CRISIS ON THE BASIS OF MODERN EVALUATION AND ANALYSIS MODELS]. Perspectives of modern scientific research, 5. URL: http://conferencii.com/files/archive/2018-05.pdf (accessed 20 October 2021)
Rosenblatt, M. (1989). Otsinky asymptotychnoi normalnosti, sylnoho zmishuvannia ta spektralnoi shchilnosti. [Asymptotic Normality, Strong Mixing and Spectral Density Estimates., vol]. 12 (4), pp. 1167–1180.
Sabelfeld, T.V., Shavandina, O.A. (2006). Analiz podhodov i metodov diagnostiki krizisnogo sostojanija predprijatija.[ Analysis of approaches and methods for diagnosing the crisis of the enterprise] Polzunovskij vestnik, №3, pp.185–190
Sakalas, A., Virbickaite, R. (2011). Pobudova modeli diahnostyky kryzovykh sytuatsii u kompanii [Construct of the Model of Crisis Situation Diagnosis in a Company]. Engineering Economics, Vol. 22 (3), pp. 255–261
Šneidere, R. (2007). Metody finansovoho analizu dlia prohnozuvannia neplatospromozhnosti pidpryiemstva [Methods of financial analysis for forecasting the insolvency of the enterprise], URL: https://dspace.lu.lv/dspace/bitstream/handle/7/5256/6494-Ruta_Sneidere_2007.pdf?sequence=1(accessed 20 October 2021)
Taffler, R.J. (1984). Empirychni modeli monitorynhu brytanskykh korporatsii [Empirical models for the monitoring of UK corporations]. Journal of banking & finance, 8(2), 199–227
