Assessment of the Financial Stability of Russian Printing Companies: Business Services Sector#

Alexander Lisovsky,Anastasia Yussuf,Svetlana Panova,Raisa Fedosova,Galina Zlotnikova

doi:10.6000/1929-7092.2018.07.66

Abstract

This article substantiates the necessity of assessing financial stability of printing companies involved in the business services sector. Peculiarities of business activities of today’s printing companies under current conditions have been revealed and financial stability levels of these companies, computed based on Edward Altman’s Z-score bankruptcy probability assessment model, have been defined. To analyze the status of printing companies involved in the business services sector, Altman’s methodology that is based on a five-factor model for predicting the insolvency risk of companies was applied. The analysis of the industry allowed us to distribute selected companies in three zones of bankruptcy. The number of companies in three bankruptcy zones as well as their share in the total scope of firms in the period under review was defined. Recommendations on the implementation of a set of measures in production and management structures of the assessed companies have been suggested. These measures allow the financial position of the companies in the industry to be maintained and strengthened. The results of this study may lay the foundation for further studies of urgent issues related to the analysis and evaluation of the financial sustainability level of printing companies.

Highlights

The relevance of this study is induced by the necessity to assess financial stability of companies with the aim to substantiate a mechanism for implementing a sustainable development concept in the domestic business, in particular, in the printing industry’s business printing products segment
Russian models are represented by those developed by Saifullin-Kadykov, DavydovaBelikova, IGEA, etc
In 2016, the situation began to change and the marketable products segment occupied twothirds of the total market share for printing services. This happened because printing companies, producing marketable products for the retail market, became more active in using the digital economy achievements and, on this basis, began to reconfigure their business models aimed at ensuring sustainable development

Summary

Introduction

The relevance of this study is induced by the necessity to assess financial stability of companies with the aim to substantiate a mechanism for implementing a sustainable development concept in the domestic business, in particular, in the printing industry’s business printing products segment.Any development implies the existence of a goal that is directly predefined by opportunities, conditions and level of development of the company, as well as the by level of social progress of the country. We can speak about sustainable development only if a company is being developed based on integrated economic, social and environmental factors (Yussuf et al 2017; Kheifits et al 2017). Various methods for analyzing the probability of bankruptcy of companies and for defining financial stability levels of these companies are available. These are special analytical coefficients for bankruptcy prediction, expressed as a set of formulas developed by leading European and domestic economists. Based on this analysis, we can judge the financial and economic stability of companies operating in the market under review. Russian models are represented by those developed by Saifullin-Kadykov, DavydovaBelikova, IGEA, etc

Methods

Results

Conclusion