Abstract
Introduction. An important element of the implementation of the concept of sustainable development in Ukraine and the process of decentralization is the modernization of the financial mechanism and the formation of financially capable territorial communities.
 Purpose. The purpose of the article is to research theoretical approaches to the definition of criteria and methods of analysis of financial stability as the main concept of management of territorial communities in conditions of sustainable development.
 Methods. To achieve this, general scientific and special research methods are used: analysis and synthesis, comparison and generalization, structural-logical, economic- mathematical and coefficient analysis.
 Results. The proposed methodology for analyzing the financial stability of territorial communities covers two components: assessment of the level of financial stability, which involves the calculation of relative and absolute indicators and comparison of assets and sources of their financing; the analysis of the financial stability reserve involves the determination of the safety zone, financial and operational leverage, and the critical scope of implementation. The algorithm for determining the financial stability of a territorial community includes the use of a balance sheet model of financial equilibrium, the definition of a three-component indicator, and the finding of optimal degrees of coverage of sources of financial support. Attention is focused on the need to choose coefficients that best characterize individual features of the activity of a specific business entity.
 Prospects. Financial stability, in addition to quantitative indicators of financial activity, has a significant impact on qualitative characteristics such as: professionalism of management personnel, quality production or provision of services, image on the market, satisfaction of employees and consumers with the quality of life, implementation of innovative ways of attracting various sources of financial resources, etc. the analysis of which requires the use of other research methods, which will be the subject of our further research.
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