Tools for assessing the financial stability of the enterprise

In this paper, the new absolute stability and stabilization conditions for a class of Lurie uncertain time-delay systems are proposed. Based on Lyapunov functions combined with linear matrix inequality (LMI) technology, the sufficient delay dependent absolute stability and stabilization conditions are derived for a class of Lurie uncertain time-delay systems with time-delay feedback either in states or nonlinear part through introducing a new state transformation. Finally, the absolute stability and stabilization conditions are illustrated by the detailed examples, and the result shows that there has been a distinct amelioration in conservation.

The purpose of the articles is to determine the role of financial stability analysis as an important component of the comprehensive analysis of the entity financial condition. Systematic assessment of financial stability makes it possible to use timely the strategy and tactics of enterprise development, take reasonable management decisions, control liquidity, solvency and financial stability of the enterprise. As a result of the investigation, the following tasks are solved in order to achieve the goal: the type of the financial stability of confectionery enterprise is clarified; qualitative analysis of financial stability is carried out; the dynamics of changes in financial stability is analyzed; financial forecasting by means of integrated indicator based on taxonomic approach is done. General and special methods and techniques of economic problems research for tasks solution such as: synthesis, induction, deduction, generalization, aggregate method, comparative analysis of deviations, coefficient and margin method, standardization of indicators, forecasting, trend analysis method, graphical method are used. The object of the investigation is PJSC «Mondeliz Ukraine». The results of the analysis for the period 2017–2020 indicate the unstable financial condition, violation of the enterprise financial stability; but due to the trend line we forecast the increase in the integrated taxonomic indicator of financial stability in future. The generalized indicator of the change of enterprise financial stability confirms conclusion about the increase of enterprise financial stability in dynamics. The solution of the problem of increasing the financial stability and balance of PJSC «Mondeliz Ukraine» and increasing the availability of own funds is possible primarily by increasing sales, profits and, accordingly, increase profitability. However, measures to strengthen financial stability can give positive results only if they are comprehensive, systematic, mandatory. The prospects for further investigation are to identify the relationship between the level of financial stability and the synchronicity of the enterprise time-balanced cash flows formation.

В статье рассмотрены различные формулировки определение понятия «финансовая устойчивость предприятия». Целью данной статьи является описание основных коэффициентов финансовой устойчивости и характеристика метода анализа финансовой устойчивости предприятия. Особая актуальность оценки и правильного анализа финансовой устойчивости возникла в нестабильных условиях функционирования производств и бизнеса в связи с эпидемией. Значительной степенью влияния на финансовые результаты деятельности предприятия показателей финансовой устойчивости. Проводится анализ различных методик анализа финансовой устойчивости приведенных в работе. Результаты финансового анализа используются для повышения платежеспособности, финансовой устойчивости и деловой активности предприятия. Также в работе указываются типичные ошибки при анализе финансовой устойчивости и предлагается рекомендация конкретных способов по управлению финансовой устойчивости на предприятии. The article discusses various formulations of the definition of the concept of «financial stability of an enterprise». The purpose of this article is to describe the main coefficients of financial stability and characteristics of the method for analyzing the financial stability of an enterprise. The particular relevance of the assessment and correct analysis of financial stability has arisen in the unstable conditions of the functioning of production and business in connection with the epidemic. A significant degree of influence on the financial results of the enterprise's financial stability indicators. The analysis of various methods of analysis of financial stability given in the work is carried out. The results of financial analysis are used to improve the solvency, financial stability and business activity of the enterprise. Also, the paper points out typical mistakes in the analysis of financial stability and proposes a recommendation of specific methods for managing financial stability in an enterprise.

The article defines the essence, role, and significance of the financial stability of the enterprise and states that it is one of the critical foundations of stable financing of the business entity. The article provides the main factors that affect the financial stability of enterprises, as well as the basic principles of their maintenance. The authors investigated the economic essence of the concept of managing the financial stability of the enterprise. The authors provided their own actual interpretation of the concept of capital, based on the analysis of the essence of this category by various scientists. The authors indicated capital as a set of strategic and operational management decisions regarding the formation and distribution of financial resources in order for the enterprise to achieve the necessary level of financial stability, autonomy, and independence. The article defines the purpose, tasks, and principles of managing the enterprise’s financial stability, as well as provides the main stages of managing it. Such an algorithm of actions allows the timely identification of problematic financial aspects and the development of ways to eliminate them and increase the level of financial stability of the enterprise. The authors noted that an important component in the process of managing the financial stability of the enterprise is the analysis of financial stability itself, which makes it possible to evaluate the ability of the enterprise to adapt to external conditions and determine the degree of its independence from external financial support. The article defines both absolute and relative indicators, which make it possible to assess the financial stability of the enterprise. The system of relative indicators that determine the level of financial stability of the enterprise is divided into groups: capitalization ratios and coverage ratios. The set of indicators of financial stability makes it possible to determine the availability, allocation, and use of the available resources of the business entity as well as its real and potential financial capabilities. The authors carried out an analysis of the relative indicators of the financial stability of domestic enterprises based on statistical information. This, in turn, made it possible to make a conclusion about the insufficiency of their owned capital and a significant amount of loan capital, which negatively affects their financial autonomy, independence, and stability.

The Economic crisis has impacted the disruption of the stability of a country's financial system, including ASEAN countries. In Indonesia, there is a Financial System Stability Committee (KSSK) whose duties are to coordinate monitoring and maintaining financial system stability. KSSK has the authority to set the criteria and indicators for assessing financial system stability conditions concerning the financial system's stability. The second authority is to evaluate the condition of financial system stability based on input from each member of the Financial System Stability Committee, along with supporting data and information. As an economic area with history, ASEAN countries certainly have a relationship, either strong or weak. This study conducted calculations of the financial stability index (Aggregate Financial Stability Index) built from the Morris framework (2010) consisting of sub-index Financial Development Index, Financial Vulnerability Index, Financial Soundness Index, World Economic Climate Index. The calculation results showed that in ASEAN 6, there were fluctuations in financial stability, and there were variations in the correlation of financial stability. Therefore, improving the financial stability in Indonesia needs to consider the existence of financial stability in other countries.

Financial inclusion and financial system stability are important instruments in a country's economic development. Both financial systems are critical for developing countries to improve people's welfare, promote inclusive economic growth, and protect the financial system from shocks and crises. Financial inclusion is a measure of people's accessibility to financial products and services. Meanwhile, a stable financial system will accelerate the country's economy. Therefore, this research aims to determine the effect of financial inclusion and financial system stability on economic development in APEC member countries. The data used is in panel form using the Fixed Effect Model method. This paper takes 20 member countries of the Asia Pacific Economic Cooperation (APEC) as the research object, collect the data from 2008 to 2021. The research results show that financial inclusion has a significant effect on the economy on the penetration and usability y proxies, while the availability proxy is not significant. Furthermore, the Bank Z-score as an indicator of financial system stability also has a significant influence on the economy, followed by two additional variables, namely inflation and the Financial Development Index. The conclusion is that financial inclusion and financial system stability have a positive influence on a country's economic development. Implications of this study suggest that the bank has to expand the network in the financial sector that the community can reach, then make people believe and be confident to create accounts so that people can conduct financial transactions easily and efficiently that help to improve the economy.

Financial stability is an important measure used by stakeholders to assess the financial situation of an entity concerned. Economic worries caused by internal business issues, global processes, and international economic (regional) integration may increase the entity’s exposure to external factors. Financial stability considers the entity’s dependence on creditors and investors, i.e. the debt-to-equity ratio. Significant liabilities that are not fully covered by the entity’s own liquid funds create preconditions for bankruptcy should any large creditor demand settlement of any debts owed to it. However, borrowed funds can significantly increase the return on equity. Therefore, in analyzing financial stability, it is very important to use a system of indicators that indicate the entity’s future risks and profita-bility. Financial stability is the principal objective of financial analysis. The nature and scope of such economic analysis are aimed to determine the entity’s internal capacities, means, and methods for improving the entity’s financial stability. Thus, financial stability is understood as the entity’s guaranteed solvency and creditworthiness resulting from the effective formation, distribution, and application of financial resources in the entity’s business operations. Financial stability is assessed based on the working capital to inventory ratio and debt to equity ratio. Business entities are independent in establishing business relationships with their contract partners; therefore, they are fully responsible for the decisions they make. The increasing importance of financial analysis for the entity’s own financial situation and for its business partners is explained by the increasing demand for additional sources of business financing and the requirement to increase the productiveness of capital resources. Entity’s financial stability analysis should not focus on the current financial activities only. It should also determine what measures should be taken on a continuous basis to maintain and improve the entity’s financial situation. Both current and future stability, i.e. the entity’s sustainability, must be ensured to provide conditions for state-of-the-art competitive production. An entity is a complex system consisting of many subsystems; therefore, a complex method must be applied to analyze its stability, i.e. using a system of financial stability indicators. Present-day diversity of financial stability indicators, including both absolute and relative indicators, makes the analysis difficult and overcomplicated, creating difficulties in combining the findings of the analysis to make conclusions about the entity’s financial stability. Absolute indicators, namely equity, borrowed capital, assets, cash, accounts receivable and accounts payable, profit, play an important role in the analysis of an entity’s financial stability. Equally important are absolute indicators calculated in the analysis of financial statements: net assets, working capital, working capital to inventory ratio, stable liabilities. These indicators are criterial as they are used to establish the criteria used in the financial analysis. An entity should have a flexible structure of financial resources and, if necessary, be able to borrow funds. Therefore, another manifestation of an entity’s potential financial stability is its creditworthiness, i.e., the ability to settle its payment obligations when due. Thus, an entity is considered creditworthy if it meets a certain requirement for granting a loan and is able to repay the loan when due subject to any interest accrued. This concept is closely related to the concept of financial stability and shows whether the company is able to raise funds from different sources to repay its debts. Credit analysis may predict solvency and is closely related to the analysis of solvency, financial stability and return on equity. Entity’s stable operation, high profitability and working capital turnover also guarantee loan repayment to a certain degree.

A generalized sector was introduced recently for improved stability analysis of systems with nonlinearity and/or uncertainty. While providing more flexibility and admitting more accuracy in the description of the nonlinear/uncertain component, the generalized sector is almost as numerically tractable as the traditional conic sector - necessary and sufficient conditions for absolute quadratic stability were identified in the form of linear matrix inequalities (LMIs) for continuous-time systems with one nonlinear component. The objective of this paper is to develop a general framework for absolute stability analysis of systems with multiple nonlinear components under a generalized sector condition. Through a connection between saturation functions and piecewise linear convex/concave functions, the generalized sector is described in terms of a set of saturation functions. This transforms the problem of absolute stability analysis into one of stability analysis for systems with saturation nonlinearities, for which effective tools have recently been developed. Under the general framework, we develop explicit conditions for absolute quadratic stability of discrete-time systems with one nonlinear component.

This paper investigates the impact of financial inclusion on financial stability in BRICS countries from 2004 to 2020. Using a panel smooth transition regression model, the results reveal a U-shaped relationship between financial inclusion and financial stability. Financial inclusion reduces financial stability up to a threshold of 44.7%. Beyond this point, financial inclusion contributes to greater financial stability, through gradual transitions. Enhanced financial inclusion supports banks in stabilizing their deposit funding by facilitating access to more stable, long-term funds and alleviating the negative impacts of fluctuations in returns. Furthermore, the study examines the role of institutional quality in shaping the financial inclusion-financial stability nexus, indicating a significant positive effect, especially in the upper regime. These findings provide valuable insights for financial regulatory authorities, highlighting the importance of promoting financial inclusion in BRICS economies and adapting regulations to mitigate potential risks to global financial stability.

A generalized sector bounded by piecewise linear functions was introduced in a previous paper for the purpose of reducing conservatism in absolute stability analysis of systems with nonlinearity and/or uncertainty. This paper will further enhance absolute stability analysis by using the composite quadratic Lyapunov function whose level set is the convex hull of a family of ellipsoids. The absolute stability analysis will be approached by characterizing absolutely contractively invariant (ACI) level sets of the composite quadratic Lyapunov functions. This objective will be achieved through three steps. The first step transforms the problem of absolute stability analysis into one of stability analysis for an array of saturated linear systems. The second step establishes stability conditions for linear difference inclusions and then for saturated linear systems. The third step assembles all the conditions of stability for an array of saturated linear systems into a condition of absolute stability. Based on the conditions for absolute stability, optimization problems are formulated for the estimation of the stability region. Numerical examples demonstrate that stability analysis results based on composite quadratic Lyapunov functions improve significantly on what can be achieved with quadratic Lyapunov functions.

This paper considers systems with two-dimensional dynamics (2D systems) described by the continuous-time nonlinear state-space Roesser model. The sufficient conditions of exponential stability in terms of vector Lyapunov functions are established. These conditions are then applied to analysis of the absolute stability of a certain class of systems comprising a linear continuous-time plant in the form of the Roesser model with a nonlinear characteristic in the feedback loop, which satisfies quadratic constraints. The absolute stability conditions are reduced to computable expressions in the form of linear matrix inequalities. The obtained results are extended to the class of continuous-time systems governed by the Roesser model with Markovian switching. The problems of absolute stability and stabilization via state- and output-feedback are solved for linear systems of the above class. The solution procedures for these problems are in the form of algorithms based on linear matrix inequalities.

This paper presents new results on the absolute exponential stability (AEST) of neural networks with a general class of partially Lipschitz continuous and monotone increasing activation functions under a mild condition that the interconnection matrix T of the network system is additively diagonally stable; i.e., for any positive diagonal matrix D/sub 1/, there exists a positive diagonal matrix D/sub 2/ such that D/sub 2/ (T-D/sub 1/)+(T-D/sub 1/)/sup T/D/sub 2/ is negative definite. This result means that the neural networks with additively diagonally stable interconnection matrices are guaranteed to be globally exponentially stable for any neuron activation functions in the above class, any constant input vectors and any other network parameters. The additively diagonally stable interconnection matrices include diagonally semistable ones and H-matrices with nonpositive diagonal elements as special cases. The obtained AEST result substantially extends the existing ones in the literature on absolute stability (ABST) of neural networks. The additive diagonal stability condition is shown to be necessary and sufficient for AEST of neural networks with two neurons. Summary and discussion of the known results about ABST and AEST of neural networks are also given.

A new method for investigating the absolute stability of regulated systems with limited resources is proposed. It is based on estimating improper integrals along the solution of the system. A nonsingular transformation is obtained which allows information about the nonlinearity properties to be taken into account. A class of regulated systems is distinguished for which Aizerman's problem is solvable. For this class a necessary and a sufficient condition for absolute stability are found. The proposed method for investigating absolute stability differs from the other available methods by the fact that conditions for absolute stability are derived without using the Lyapunov function and the frequency theorem. For systems with limited resources the phase variables are bounded, uniformly continuous functions. These properties were used in deriving a condition for stability and in estimating improper integrals. The estimate obtained allows the domain of absolute stability in the space of constructive parameters of the system to be greatly extended by comparison with the earlier known results, and in a number of cases a necessary and a sufficient condition for absolute stability can be obtained. Bibliography: 15 titles.

The model for calculating indicators of financial stability of industrial enterprises, which consists of a number of instrumental and evaluation components, was studied. Such components include: determination of financial stability and balance (on the basis of general indicators of the analysis of the financial condition, the formed structural architecture of indicators of financial stability; determination of the diagnosis of possible bankruptcy, the profitability threshold and the margin of financial stability of machine-building enterprises. In order to achieve financial balance and stability of operations, when forming the structure of the evaluation system and increasing the financial stability of industrial enterprises, it is relevant to substantiate the interrelationships of subsystems in the general structure of financial stability management. The purpose and goals of the structure of the evaluation system and increasing the financial stability of enterprises are determined. The importance of the organizational and methodological subsystem in the structure of the evaluation system and increasing the financial stability of industrial enterprises, which is characterized by the interrelationships of the company's financial and analytical services and structural units. Methodological principles in the structure of the evaluation system and increasing the financial stability of industrial enterprises are singled out. The management and information and analytical subsystems in the management of the financial state of the enterprise are characterized. In the conditions of an increasingly competitive business environment, financial planning and forecasting are of great importance for enterprises in ensuring financial stability and increasing financial stability. The directions for increasing the financial stability of the industrial enterprise have been determined. In the difficult conditions of conducting business by enterprises, there is a need for analytical improvement of anti-crisis financial management as an important subsystem of enterprise management and a toolkit for timely prevention of bankruptcy, insolvency, loss of financial balance, decrease in financial stability.

ABSTRACTIn this paper, absolute stability condition is investigated when a hysteresis nonlinearity is connected to a linear subsystem via positive feedback in Lur'e system framework. In particular, the nonlinearity is considered to belong to the time-invariant slope-restricted counter-clockwise hysteresis class. An absolute stability criterion is proposed in terms of the negative-imaginary system properties. In effect, the stability condition requires the linear subsystem to belong to the strongly strict negative-imaginary (SSNI) system class along with satisfying a matrix condition involving the DC-gain of the linear subsystem and the slope-upper-bounds of the nonlinearities. Compliance to the conditions guarantees asymptotic convergence of state-trajectories to an equilibrium set. Invoking the stability result and exploiting the relaxed minimality assumption of SSNI systems, a static state-feedback synthesis method is proposed to ensure absolute stability for such hysteretic systems. Tractable conditions in the form of linear matrix inequalities can be solved to obtain a stabilising state-feedback gain matrix. Finally, a numerical example of multi-input–multi-output system is presented to illustrate the usefulness of the proposed results.