ESTIMATING AND FORECASTING OF FINANCIAL SECURITY OF ENTERPRISES

G M Azarenkova G M Azarenkova,O V Salenko O V Salenko,O G Golovko O G Golovko,A V Maiboroda A V Maiboroda,K V Oryekhova K V Oryekhova

doi:10.18371/fcaptp.v1i32.200383

G M Azarenkova G M Azarenkova, O V Salenko O V Salenko + Show 3 more

Open Access

https://doi.org/10.18371/fcaptp.v1i32.200383

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Abstract

The methodical approach to estimate financial security of business entities, which are related with management system of Defense Ministry in Ukraine, has been proposed in the research. Its difference feature from existing is: calculation integral financial indicators (property status, liquidity, financial independence, business activity and profitability); definition the levels of their significance and normative values. Approbation the proposed methodical approach has been confirmed its versatility and made it possible to determine financial security level, strengths and weaknesses of economic activity. Also it has been allowed to improve process for making management decisions, which are related with upgrading equipment, raising liquidity, financial independence, increasing business activity and profitability. The methodological approach for forecasting financial security has been developed. It has been differs from the existing by determining as resulting indicator — profitability own capital ratio and factor indicators — maneuverability ratio of equity capital, asset turnover ratio, accounts payable turnover ratio, equity capital turnover ratio, profitability ratio.

Highlights

Business entities that are belong to the sphere of management of the Ministry of Defense of Ukraine, whose activity is aimed at performing works on the restoration of armaments and military equipment of the Armed Forces of Ukraine that are in critical financial condition and due to the depreciation of fixed assets, the obsolescence of the production base of the enterprise become uncompetitive on the market of goods and services
To implement the necessary measures to identify and neutralize the negative factors influencing the activity of the enterprise, it must operate a system of financial security as one of the most effective ways to organize and manage the stable functioning of the enterprise
As determining the actual level of financial security contributes to the process of securing and managing it, the choice of tools to evaluate is a priority for the existence of the financial security system at the enterprise

Summary

Introduction

Business entities that are belong to the sphere of management of the Ministry of Defense of Ukraine, whose activity is aimed at performing works on the restoration of armaments and military equipment of the Armed Forces of Ukraine that are in critical financial condition and due to the depreciation of fixed assets, the obsolescence of the production base of the enterprise become uncompetitive on the market of goods and services. Most economic entities within the sphere of management of the Ministry of Defense of Ukraine, despite the requirements of Article 75 of the Economic Code, do not systematically execute financial plans, which lead to loss-making activities, non-payment of taxes and other payments to the state budget, default on capital investments in the development of production. Theoretical and methodological aspects of ensuring the financial security of enterprises have been reflected in the works of the following scientists: Arefyeva O.V [1], Malish D.O [4], Melnik S.I [5], Novikova M.M [ 6], Orlik O.V [8], Stashchuk O. [9], Dugan Michael T. [11], Mohamad Hassan [12]

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