Abstract

The article examines the cost approach to determining the financial stability of the enterprise in the market. It is studied that insufficient financial stability leads to a lack of funds for the development of production, its insolvency and bankruptcy, and excessive stability can be an obstacle to increasing the efficiency of financial resources. The cost approach allows the company to assess the necessary financial resources for activities that are focused on increasing the value of the company, which is coordinated and carried out on the basis of information of a financial nature obtained by calculating financial indicators. After all, the cost approach to management solves the problem of assessing the effectiveness of decisions regarding financial stability, operational efficiency of the enterprise and the interaction between its units; distribution of financial resources between departments and areas of activity; determining the personal contribution of employees to the development of the company, motivating them to create competitive advantages in the long run. It is determined that financial stability presupposes solvency in the long run, its assessment should be aimed at determining the stock of financial stability. This gives an idea of sales, which ensures the stable operation of the enterprise. Therefore, it is necessary to assess the financial stability of the enterprise in the dynamics of the stages. To determine the adequacy of financial resources to ensure financial stability, the calculation of net cash flow is carried out with the subsequent comparison of its value with the needs of the enterprise in the use of cash. The application of the cost approach in practice will allow companies to improve the analysis of the quality of the financial condition of the enterprise, as it aims to contribute to the financial stability of the enterprise. In addition to the cost approach, it is possible to use other approaches that are used to determine the financial stability of the enterprise. The cost approach determines the assessment of the operating activities of the enterprise and is effective for determining the use of financial resources, namely, the effectiveness of the implementation of financial potential. Key words: cost approach, financial stability, financial security, financial resources, cash flows

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