Diagnostics of crisis state and threat of enterprise bankruptcy

Abstract

The article discusses methods for diagnosing the crisis state and bankruptcy threat of an enterprise. The relevance of this issue lies in the possibility of adapting to critical situations such as internal errors, economic crises, pandemics, martial law, and others. Every enterprise faces problems throughout its existence, and information about these problems is crucial to maintaining stability. Since the 1960s, many diagnostic methods have appeared and continue to develop. From the coefficients created by Beaver or Springate, the theory has evolved into sophisticated ranking methods that are still used today. The research aims to identify the pros and cons of diagnostic methods and their components, which should help analysts choose the appropriate tools for specific situations and enterprises. It is proposed to use the diagnostic process as a way to check the enterprise's performance and find the source of the crisis state if it is deteriorating or likely to deteriorate. It is important to adhere to the principle of cyclical repetition of diagnosis, which is determined by the nature of the crisis. Regular analysis eliminates the possibility of identifying a crisis in an uncontrolled state, and also provides space for optimizing processes, which helps reduce the level of errors in the diagnostic process itself. To speed up the process and make it clear, a diagnostic planning template is provided. The final results of the diagnostics will be qualitatively new management solutions based on raw and processed data aimed at solving the problem. The value of such an approach is in the constant control of the situation, which creates time and space for reaction and planning. Indirectly, for large and public companies, the use of the proposed analysis option can attract the attention of more investors, especially if analytical reports are published together with management reporting or as part of it.