APPLICATION OF THE NET ASSET’S METHOD FOR EVALUATION OF THE WINE-PRODUCING ENTERPRISE’S FINANCIAL SUSTAINABILITY

Abstract

In the current paper is presented one of the financial sustainability’s assessment, namely the method of net assets. Financial sustainability is over seed like long termed, stable financial state, backed by owned financial sources. Financial sustainability is differentiated in two general types – external and internal. External financial sustainability is connected with enterprise’s capability to settle its accounting interrelation with its counteragents and creditors. Internal financial sustainability suggests assurance of the assets with enough source of equity. The value of the net assets is important indicator, characterizing the structure of the capital and the determination of net asset’s level. The value of the net assets it’s in the base of determination of asset’s value, the financial leverage, the price and the equity’s rentability. The main object of this paper is the practical applications of the wine-producing enterprises financial sustainability evaluation through the method of the net assets. The outcome of paper’s research can be used by any stakeholders who are interested from this kind of economic activity.