Current Liquidity Ratio Research Articles

Correlation and regression assessment of the main factors influence on the change in the level of the net profitability of sales

Ensuring the positive dynamics of the agricultural organizations development taking into account their specifics is an extremely difficult process. It is due to the seasonal nature of the activity and significant dependence on external factors. In this regard, it requires high efficiency of management personnel, which is expressed in the quality of the development strategy being designed, the ability to analyze the current results achieved in their correlation, based on the results of the analysis, to make adjustments to the development strategy and current activities. To solve these problems, a system of indicators is important, which will make it possible to draw objective conclusions on the analysis of the relevant subject of research. In the proposed article, the author uses the correlation method to analyze and study the impact on the profitability of sales of such indicators as labor productivity, return on capital of production assets, turnover of working capital, labor capital ratio, current liquidity ratio, investments per 1 hectare of agricultural land. For the first time, the object of the study was twenty peasant farms in the region. As a result of the analysis, a forecast of the level of management efficiency dependence of on selected factors was made, calculated on the database of the studied enterprises in the region. The use of the systematic analysis of correlations will make it possible to make adjustments to current activities and thus ensure its positive dynamics and achieve the ultimate goal of ensuring financial stability.

Russian Banks Financial Stability Loss Diagnostic: Multidimensional Logit-Model Approach

The financial stability of the banking sector characterizes the "economic health" at the national and global levels and its deterioration is a cause of financial crises. Improving the toolkit for early diagnosis of financial problems is a key element of monitoring and forecasting banking risks. The purpose of the study is to examine the specific features of intrabank factors influencing the risk of financial stability loss in Russian banks. The research hypotheses are as follows: 1) the highly significant predictors of bank's financial instability risk are return on assets and overdue loans; 2) the impact degree of financial stability factors differs for medium- and long-term horizons of risk forecasting. The authors present multidimensional logit models for estimating the probability of the loss of financial stability by banks for 6 and 12 months based on four variables: capital adequacy ratio, overdue loans fraction over 90 days, return on assets, current liquidity ratio. It was revealed that a growth of return on assets has a positive significant effect on financial stability, and an increase in overdue loans has a negative significant effect on a bank's "financial immunity". It is shown the impact degree of financial stability factors is varied for different forecast horizons: the return on assets is a more relevant factor for 6 months, and the overdue loans fraction is more important for a 12 month period. The theoretical significance consists in better scientific understanding of factors impacting on a bank's financial stability. The practical significance lies in the possibility for commercial banks to use econometric models and conclusions in analytical and risk-predictive algorithms.

Default Prediction for Russian Food Service Firms: Contribution of Non-Financial Factors and Machine Learning

The food service industry's instability due to COVID-19 and sanctions has heightened the need for developing an efficient tool to assess default risks in this industry. Default prediction modelling relies heavily on how well a model fits the specific environment. Due to that, some adjustments have to take place in order to adapt the classical default prediction models to the Russian food service industry. We build hypotheses that adding non-financial factors and employing modern prediction methods can increase the accuracy of the models significantly. The aim of this study is to determine the effect of non-financial factors' inclusion and modern modelling methods on the accuracy of default prediction for the food service industry in Russia. Tests for a sample of 1241 firms for the period from 2017 to 2021 have shown that creating a prediction model with modern methods, such as Random Forest and XGBoost increases the accuracy of the prediction from 70% to about 80%, compared to standard Logit model. The addition of non-financial factors to the models also increases the accuracy slightly, which however, does not provide a significant effect. The most important metrics in predicting default turned out to be Current Liquidity Ratio and the ratio of Working Capital to Total Assets. The most important non-financial factors are Total Assets and Age. Our results correspond with existing research in this field and form a new knowledge layer due to being applied to a specific industry. The results can be used by banks or other counterparties that interact with food service industry firms in order to assess their credit risk.

ПРЕВЕНТИВНАЯ СЕБЕСТОИМОСТЬ МОЛОКА – ТЕОРЕТИЧЕСКИЙ И ПРАКТИЧЕСКИЙ ОРИЕНТИР ПОВЫШЕНИЯ ФИНАНСОВОЙ УСТОЙЧИВОСТИ СЕЛЬСКОХОЗЯЙСТВЕННЫХ ОРГАНИЗАЦИЙ РЕСПУБЛИКИ ТАТАРСТАН

In the current state programs “Development of agriculture and regulation of agricultural products, raw materials and food markets”, both in the Russian Federation and in the Republic of Tatarstan, increasing the financial stability of agricultural producers is identified as one of the priority goals. The achievement of this goal is ensured by the economic efficiency of production, in particular, the proper level of profitability of products sold. In turn, this indicator functionally depends on the design and implementation of its preventive cost. The concept of “preventive cost” is exclusively the invention of the author of this work, arising from the internationally recognized theory of production cost management “Target costing”, according to which a commodity producer designs the quantitative value of the cost of production based on the prevailing market prices for it in order to obtain the expected profit. As a result of the conducted research, it was found that there is a linear correlation between the productivity of cows and the cost of milk, as well as between the latter and the current liquidity ratio of agricultural organizations. For agricultural organizations of the Republic of Tatarstan, which in 2022 produced 1372 thousand tons of milk and spent about 34 billion rubles on it, with an average cost of 1 kg of milk sold of 2566 rubles, the issue of working with the preventive cost of these products is very relevant. Since the average selling price was 3372 rubles, and the profitability was 31.4%. At the same time, in the surveyed twenty districts selected for various agricultural zones of the Republic of Tatarstan, 30% of agricultural organizations have an average milk profitability of 45.8%. In order to achieve the specified profitability at least at the first stage, the preventive cost of milk should be within 2313.2 rubles.

FINANCIAL STABILITY OF THE INSURANCE COMPANY AND KEY CONDITIONS FOR ITS PROVIDING

In the article, we considered the evaluation of the financial reliability of insurance organiza­tions. The insurer’s financial reliability usually means the insurer’s ability to fulfill insur­ance obli­gations under insurance and reinsurance contracts in the event of adverse factors. We investigated that the financial stability of an insurance organization is a complex indicator that depends on both internal and external factors. We studied the main classifications of factors that affect the level of financial stability of an insurance organization: according to the possibility of management and depending on direct and indirect influence. We have analyzed the main ap­proaches to assessing the financial reliability of an insurance organization. We proposed ap­proaches using single indicators (liquidity indicator, solvency indicators, reinsurance indicators, etc.), systems of relative indicators and integral indicators. We identified the advantages and disad­vantages of such approaches, ana­lyzed the advantages and disadvantages of early warning tests for assessing the financial reliability of an insurance organization, and showed that the advantage of using integral indicators is the ease of application and the possibility of taking into account various factors. However, when using inte­gral indicators, certain difficulties arise, which are associated with the fact that, as a rule, partial indicators that have different dimensions are combined into an integral indicator, therefore, for their combination or convolution, each of the partial indicators should be transformed into a di­mensionless quantity using the appropriate scale. In order to build an integral indicator for as­sessing the financial reliability of an insurance organization, it is recom­mended to use the Harring­ton method and take into account the factors that characterize the ac­tivity of an insurance organi­zation: internal: (level of payments; provision of insurance reserves; reinsurer participation; sol­vency ratio; current liquidity ratio; reinsurance ratio) and external fac­tors that take into account the general economic situation in the country and the efficiency of the functioning of the state’s economy (inflation rate; GDP growth rates).

Substantiating the normative values of company's liquidity ratios: Evidence from the engineering, transport and logistics industries

Subject. The article addresses the normative values of financial indicators of the liquidity group that are formed as a result of financial and economic relations of the enterprise. Objectives. The aim is to calculate the normative values of financial indicators of the liquidity group for engineering, transport and logistics companies, using the hierarchical cluster analysis tool. Methods. The study draws on general scientific research methods. Results. We offered an algorithm to calculate the normative values of financial indicators, using the hierarchical cluster analysis; calculated the normative values of the quick liquidity ratio, current liquidity ratio, and absolute liquidity ratio for the branches of mechanical engineering, transport and logistics. Conclusions. The calculated financial indicators are applicable for the analysis of financial and economic activities of mechanical engineering, transport and logistics enterprises. The proposed algorithm based on the method of hierarchical cluster analysis can be used to calculate other financial indicators of enterprises operating in various industries.

ОЦІНКА ВПЛИВУ ІННОВАЦІЙНОГО ПОТЕНЦІАЛУ РЕСУРСОЗАБЕЗПЕЧЕННЯ НА ФІНАНСОВУ ЕФЕКТИВНІСТЬ АГРАРНОГО СЕКТОРА ЕКОНОМІКИ УКРАЇНИ

The purpose of the study is to improve the methodological support for the assessment of the financial efficiency of the agricultural sector of Ukraine under the influence of the innovative potential management of its resource provision. The main scientific methods used in the study are fundamental provisions of the theory of innovation and finance, correlation and multifactor regression analysis, mathematical programming, etc. According to the results of the conducted research the parameter of technological progress as an indicator of the level of innovation development of the agrarian sector of the Ukrainian economy was obtained after modelling of autoregressive multiplicative Tinbergen-Solow production function. The numerical value of the technological progress parameter indicates a potential for additional growth in agricultural output of +0.142%, while other conditions remain unchanged. 23 indicators of the state of the resource provision of the agricultural sector were systematized in 4 groups: the results of the production activity of the agricultural sector (6 indicators), the resource supply of the agricultural sector (8 indicators), the efficiency of the use of resources by agricultural enterprises (4 indicators), and sustainability of the financial condition of agricultural enterprises (5 indicators). A power-law four-factor regression model of the impact of the output volume of the agricultural sector, the value of current assets, return on capital and the current liquidity ratio on the volume of net profit of agricultural enterprises of Ukraine was obtained. It is proved that the elasticity of net profit for agricultural output is 0.01%, for the value of current assets - 1.46%, for capital accumulation - 0.72%, for current liquidity - 3.2%. We constructed the target functions of maximization of the agricultural production output on the basis of the Tinbergen-Solow production function, net profit on the basis of the four-factor power model of net profit, return on equity on the basis of the two-factor DuPont model for the short term. The solving of target functions allowed for maximization of the return on equity of agrarian enterprises of Ukraine only at the expense of the existing innovation potential of production resources and will be used in further research by the authors.

The Effect of Cash Turnover, Receivables Turnover on Profitability with Liquidity as Intervening Variables

This study aims to examine and analyze the effect of cash turnover, accounts receivable turnover, on profitability with liquidity as an intervening variable. The sample of this research is Rural Banks (BPR) of Tangerang Regency which are registered with the Financial Services Authority (OJK) for the period 2016 to 2020. The data analysis technique uses multiple linear regression and path analysis. The results showed that simultaneously cash turnover, receivables turnover with liquidity as an intervening variable affected profitability. Partially, cash turnover and liquidity variables have a significant positive effect on liquidity, but receivables turnover does not have a significant positive effect on liquidity. Then partially cash turnover and receivables have a significant positive effect on profitability. Hypothesis testing using path analysis test that the current liquidity ratio (CR) functions as an intervening variable cannot mediate between the independent variables cash turnover and receivables turnover on profitability (ROA).

Analysis of the application of the internal control system on the example of an economic entity

Within the framework of this work, an analysis was made of the application of the internal control system on the example of an economic entity. The author substantiated the importance of internal control in the activities of the organization, and identified the main risks associated with internal control (social, economic, institutional). The paper analyzes the main characteristics of an economic entity, including those related to the specifics of the activity, relationships with suppliers and other external stakeholders, as well as those associated with the organizational and legal aspects of the organization's activities. Further, the author carried out an assessment of the economic situation of the organization, which included a horizontal analysis of the statement of financial results. In the course of the analysis, data for the last few years were studied, absolute and relative changes in key indicators of the financial activity of an economic entity were considered. The paper also carried out the calculation and further analysis of the main ratios characterizing the financial position of the organization, namely the capitalization ratio, the autonomy ratio, the financial stability ratio, the permanent asset index (coefficient), the absolute liquidity ratio, the quick liquidity ratio, the current liquidity ratio. After analyzing the financial aspects of the organization's activities, aspects of the direct activities of the internal control service in an economic entity were studied. The author analyzed the organizational structure of the organization's internal control. Based on the data obtained, the work described the existing problematic aspects related to the internal control of an economic entity. Taking into account the problems described, the author formed possible recommendations related to improving the efficiency of internal control in an economic entity.

ANALYSIS OF INVESTMENT ATTRACTIVENESS LEVEL OF THE REGIONS’ INDUSTRIES OF UKRAINE

The article is devoted to the development of models for assessing the level of investment attractiveness of regional industries. Investments are the most necessary and relevant form of capital investment for countries with a developing economy, because they provide an opportunity to implement large-scale projects, implement new technologies, corporate management models and other modern practical experience, which is especially important for the post-war recovery of Ukraine. However, the investment climate of Ukraine's industrial parks is insufficiently researched. That is why the construction of models is relevant. Analysis enables to form practical conclusions and recommendations that will be useful for objects and the state at the economic and financial levels. For building these models, it is proposed an algorithm, including the following stages: 1) formation of a table of input data; 2) calculation of financial ratios; 3) assignment of points according to the results of the coefficients; 4) forming a general assessment. To calculate the general level of investment attractiveness of industries, the following indicators were chosen: current liquidity ratio, financial independence ratio, equity ratio, profitability of assets, and profitability of equity capital. The results show that the industry "Agriculture, forestry and fisheries" of Kharkiv region has the best rating. The branch of industry, where the functionality of the industrial parks of Ukraine is concentrated, received from 1.15 for the Kyiv region, to 2.5 - for Dnipropetrovsk region. This can be explained by low coefficients of security, financial independence, and current liquidity. To improve the first indicator, it is proposed to attract additional funds from the enterprises’ owners and to optimize the structure of current and non-current assets. For improving the second and the third indicators, it is proposed to attract a third-party investor and to increase equity respectively. The competitive advantages of Ukraine, which increase its investment attractiveness, are determined. They include qualified and completely cheap labor force, national high market potential, favorable geographical location of Ukraine, and access to raw materials. But there are disadvantages, such as the ongoing war with Russia, outdated legal framework, political instability, underdeveloped investment infrastructure, high level of corruption and bureaucracy, economic instability, long duration and inconsistency of economic reforms.

Improving the financial stability of agricultural producers

The financial stability of agricultural organizations is characterized by the provision of their own financial resources sufficient for stable economic and social development. In the state program “Development of agriculture and regulation of agricultural products, raw materials and food markets” in force until 2025, both in the country and in the Republic of Tatarstan, increasing the financial stability of agricultural producers is a priority goal. According to the results of the research of the author of this work, it has been established that the current liquidity ratio is a relatively acceptable single indicator of financial stability. At the end of 2021, 566 agricultural organizations have introduced production activities in the Republic of Tatarstan. Their share in the volumes of grain produced by all categories of farms was 74%, sugar beet – 87.5%, livestock and poultry – 75.3%, milk - 63.6%, eggs – 77.4%. The average coefficient of their current liquidity is 160%, which is significantly lower than the standard value. This indicator of financial stability depends on internal and external factors. Taking into account the leading role in external factors of state support, the purpose of this study was to study its effectiveness. The results showed that there is practically no connection between the level of financial stability and state support for agricultural organizations. In conclusion, it is proposed that part of the budget subsidies should be tied to the level of their profitability without subsidies as a stimulus to the economic efficiency of production.

COMPREHENSIVE CHARACTERISTICS OF AN ENTERPRISE'S FINANCIAL STABILITY

One of the most important characteristics of a company's development is its financial stability, formed by complex impact of a large number of external and internal factors. At the same time, the assessment of financial stability in some cases is ambiguous and requires the use of a combined approach. The article evaluates the main financial indicators characterizing liquidity and financial stability of organizations, which are calculated according to the accounting (financial statements) for 2000-2021, published by the Federal State Statistics Service. Some of the indicators calculated on average for organizations of the Russian Federation, on the whole, positively characterize the level of financial stability (equity ratio) and liquidity (current liquidity ratio) and their good dynamics, but, as the data reviewed show, it is usually impossible to comprehensively assess the financial stability of an enterprise using one or even several particular indicators. It is necessary to use several indicators, both financial and those characterizing the efficiency of using resources by the enterprise (material, labor, fixed assets). It is likely that such indicators will include several external factors of financial stability formation that do not imply a quantitative assessment, for example, such as political, legal and socio-cultural indicators. The relevance of assessing the financial stability of an organization is due to the fact that the main methods of such assessment are mainly focused on using only quantitative data, which are considered, as a rule, in isolation from each other, which makes it impossible to unambiguously assess the dynamics of an organization's financial stability. Using the method of pair-wise comparisons, the author obtained the results that led to the following conclusions: the list of evaluation indicators should include not only quantitatively, but also qualitatively varying indicators, which requires the use of more universal methods of criteria convolution, for example, the method of pair-wise comparisons used in the method of hierarchy analysis.

İHTİYATLILIK İLKESİ İLE LİKİDİTE ORANLARI ARASINDAKİ İLİŞKİ: BIST UYGULAMASI

Bu çalışmada 2005 ve 2020 yılları arasında BIST 30’da işlem gören işletmelerin ihtiyatlılık düzeyleri ile likidite oranları arasındaki ilişki zaman ve kesit verilerinin bir arada analiz edilmesine imkan sağlayan panel veri analizi yöntemiyle test edilmiştir. İhtiyatlılık düzeyinin hesaplanmasında Givoly ve Hayn (2000) tarafından geliştirilen negatif tahakkuk yöntemi kullanılmıştır. Likidite oranlarına ilişkin ise cari oran, likidite oranı (asit test oranı) ve nakit oran verileri kullanılmıştır. Araştırmada kullanılan veriler işletmelerin finansal durum tabloları ve nakit akış tablolarından elde edilmiştir. Verilerin hangi tahminci yöntemiyle analiz edilmesi gerektiğine ilişkin yapılan F testi ve Breusch-Pagan LM testi sonuçlarına göre olasılık değerlerinin p>0,05 olması havuzlanmış veri seti modelinin, sabit veya rassal etkiler modeli karşısında daha etkin sonuçlar vereceğini göstermiştir. Çalışmadan elde edilen sonuçlara göre bağımsız değişkenlerimiz olan cari oran, likidite oranı ve nakit oran değişkenlerinin tümünün olasılık değerinin p>0,05 olması işletmelerin ihtiyatlılık düzeyleri ile kısa vadeli borçlarını ödeme gücünü gösteren cari oran, likidite oranı ve nakit oran arasında anlamlı bir ilişki olmadığını göstermiştir.

Methodology of financial risks management at the enterprises of forest industrial complex

The essence of financial risk is considered, the sources of uncertainty are singled out, and the definition of financial risk is established. The theoretical aspects of the financial risk management system and the mechanism of their implementation are characterized. The types of financial risks are defined. The main goal of the financial risk system is highlighted; it is the maintenance of the stability of the enterprise in the process of its development, the minimization of losses in economic operations. Therefore, it should solve the following tasks: identifying the most significant threats and identifying weaknesses in the company’s activities. It is outlined that the monitoring of financial risks is a set of information-analytical and control measures for managing financial risks, the content of which is to collect and process the necessary information about changes in relevant indicators, as well as providing results for the analysis of deviations and the assessment of their impact on the FIC. A number of methods and mathematical models for diagnosing the probability of bankruptcy of commercial organizations was considered. It is summarized that the simplest bankruptcy diagnostic method is a two-factor mathematical model, during the construction of which only two indicators are taken into account: the ratio of current liquidity and the specific weight of these funds in liabilities. Different ways of adapting ‘imported’ models (‘five-factor model’ by E. Altman, two-factor mathematical model) to domestic economic conditions are considered, and later Altman developed a similar, but more accurate model, which makes it possible to predict bankruptcy for the next five years with accuracy up to 70%. W. Beaver proposed a five-factor system for assessing the financial condition of an enterprise in order to diagnose bankruptcy. It consists of the following indicators: profitability of assets, specific weight of borrowed funds in liabilities, current liquidity ratio, share of net working capital in assets, Beaver ratio = (net profit + depreciation) / borrowed funds. It was determined that on the basis of statistical data processing, it is possible to apply a system of anti-crisis diagnostics techniques. Scientists equate diagnostics with a tool of anti-crisis policy. Keywords: risks, financial risks, bankruptcy, anti-crisis management, industry, forest industry, forest industry complex (FIC).

Parameterization of reproduction in the Russian economy

Subject. The article addresses the economic policy of the Russian Federation. Objectives. The focus is on the mathematical analysis of reproduction processes in the Russian economy. Methods. I employ methods of statistical, neural network, and cluster analysis. Results. The study revealed a decrease in the demand for services and increased demand for food products. High volatility of consumer price index for non-food items reflects the correction in the structure of consumer spending of the population for calculating the consumer price index. The study found an increase in the ability of companies to pay off current (short-term) liabilities at the expense of only current assets (current liquidity ratio), with a decrease in the equity ratio and return on assets. I found the low values of market competition and investments in metal ore mining. Conclusions. The identified significant parameters of reproduction in the economy make it possible for the Russian government to take an active part in the combining the resources of capitalist monopolies with the power of the State.

Повышение финансовой устойчивости сельскохозяйственных организаций Республики Татарстан – назревшая проблема

The financial condition of agricultural organizations of the Republic of Tatarstan as a whole has been closer to the crisis for a long time. Therefore, the current situation requires constant analysis and adoption of adaptive measures. This article is devoted to this problem. This paper establishes a functional relationship between the current liquidity ratio and six other coefficients that independently characterize the financial condition of organizations. It is proved that the current liquidity ratio as a complex and integral indicator can be used for the operational assessment of the financial well-being of the organization. It was revealed that all agricultural organizations, regardless of their specialization, the degree of processing of their own products and other conditions, financial well-being is associated with the level of economic efficiency of the invested capital. In this aspect, a closer relationship is established in large, diversified, geographically large agricultural organizations.

Analysis of bankruptcy factors of the Russian developers

In 2019, there was a transition to project financing of housing construction in Russia. As a result, by the end of 2021, more than 73% of the area of apartments under construction are sold using escrow accounts. However, about 21% of the apartments being sold are being built by developers who are in the process of bankruptcy. Regional primary housing markets are, firstly, segmented, and secondly, in some regions – mainly in the regions of the Far North, Eastern Siberia and the Far East – there is a high concentration of developers, which can lead to additional negative consequences in terms of the development of housing markets of these regions in case of bankruptcy of regional companies. In this situation, it is important to form additional tools for assessing the risks of bankruptcy of companies in order to be able to prevent negative consequences in a timely manner in the future. Despite the fact that a large number of scientific publications of both foreign and domestic researchers have been devoted to the issues of modeling the risks of bankruptcy of firms, only a small number of authors have addressed the issues of assessing the financial stability of Russian developers. The novelty of this study consists in constructing a model for predicting the probability of bankruptcy of developers in Russia (that is, a risk management system) based on an original database, which, in addition to financial coefficients from companies' reports, also includes industry-specific indicators. The aim of the work is to build a quantitative model of bankruptcy risks of developers (in the short and medium term) based on easily observable characteristics of their activities. The results obtained show that the probability of bankruptcy is high for companies with low values of return on assets, asset turnover ratio and current liquidity ratio. Additional factors that reduce the likelihood of bankruptcy are the fact of the developer's group membership, experience in housing construction. Also, the financial stability of companies in the industry as a whole is affected by macroeconomic shocks.

СУЧАСНІ НАПРЯМИ В ОЦІНЦІ ФІНАНСОВО-ГОСПОДАРЧОЇ ДІЯЛЬНОСТІ ПІДПРИЄМСТВА

In today's minds of the state, in the minds of the crisis, the effectiveness is one of the characteristics of the activity of organizations, which ensures their long-term development, satisfaction of the interests of their masters, the workforce, which changes their market positions. Evaluation of performance is a key function of the management of organizations, which allows you to take into account the success of the activities of organizations, reserve and direct the full value of activities. One of the main directions in the assessment of activity is the financial analysis. Financial stability characterizes the financial position of the enterprise from the standpoint of the efficiency of the use of equity capital. If financial stability is lost, then the probability of bankruptcy is high, the enterprise is financially insolvent. Considering the variety of financial processes, the multiplicity of indicators of financial stability, the difference in the level of their critical assessments, the emerging degree of deviation from them of the actual values of the coefficients and the resulting difficulties in the overall assessment of the financial stability of enterprises, there is a need for an integral assessment. The article considers the problems of assessing the activities of a modern enterprise according to the rating system. The article proposes an improved approach to assessing the effectiveness of modern enterprises based on key performance indicators. The given technique allows to compare the enterprises of various branches, organizational and legal forms, the sizes, etc. It is proposed to include the following indicators in the main indicators: absolute liquidity ratio, quick liquidity ratio, current liquidity ratio, autonomy ratio, ratio of own working capital, ratio of own working capital stocks. They are translated into the final indicator according to the score and as a result the company's sustainability rating is determined. Based on this assessment, the efficiency of management is determined, the results can be used in making management and investment decisions. Significantly, that the rating score of a financial institution can characterize a company from the point of view of its investment opportunity, it is clear in the case of a quick analysis, since it does not require significant expenditure of time and resources. It is also assigned to the rating as an important factor in the conduct of inter-state financial analysis and to serve the purposes of internal state financial analysis, acting as an additional tool in predicting the bankruptcy rate.

The effect of liquidity risk on the performance of banks: Evidence from Jordan

This study aimed to determine the impact of liquidity risk on financial performance of Jordanian banks, where liquidity risk was measured by (Liquidity ratio, net working capital, cash and investment ratio to total deposits), and financial performance was also measured through the index (return on assets) and the modifying variable (bank size) measured through the natural logarithm of total assets was also added. To achieve the objectives of the study, the analytical quantitative approach was adopted. The study community consisted of all 13 commercial banks listed on the Amman Stock Exchange. All banks in the study community were selected as a study sample using the comprehensive survey method, and the statistical analysis program (SPSS) was used to test the study hypotheses. Based on the results of the statistical analysis, it was found that there was an impact of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange, and there was an impact for each of (current liquidity ratio, net working capital, cash and investment ratio to total deposits) on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. It was also found that the size of the bank contributes to modifying the effect of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. The study concluded a set of recommendations, the most important of which are: commercial bank administrations should increase interest in exploiting their liquidity within acceptable risk limits to reach optimal ratios for financial performance by balancing the returns to be achieved with the potential risks of such expenses in a way that ensures the positive impact of liquidity risk on the financial performance of those banks.

Payment system as a basic element of the digital economy: institutional-behavioral aspects

Methods. The methodological basis of the research is the scientific works of domestic and foreign scientists and leading experts in the field of financial analysis and modeling of economic processes, as well as statistical and financial reporting data that are publicly available. To construct an integral indicator of the financial security of an enterprise, a fuzzy conclusion is used. Results. It is shown that for assessing the level of the financial security indicator of an enterprise, the fuzzy set method is the most effective in comparison with linear models, since it takes into account the uncertainty of the internal and external environment of the enterprise as much as possible. The fuzzy expert system actually allows you to use a significant number of input parameters, both quantitative and qualitative. The specific choice of input parameters should be justified, on the one hand, by their weight, and on the other hand, by the complexity of collecting data necessary to assess the state of financial security of the enterprise. To implement the proposed fuzzy-logical approach to determining the integral indicator of financial security of an enterprise (Financial Security (FS)), Financial coefficients are used that characterize solvency (Current Ratio (CR)), financial independence (Equity Ratio (ER)), profitability of total assets of the enterprise (Return on Assets (ROA)) and affect the target indicator. Novelty. The general structure of the fuzzy logic expert system constructor is presented as a data transformation within the system itself. For a fuzzy-logical approach, in order to determine the integral indicator of financial security of an enterprise Y123 (Financial Security (FS)), three input indicators are selected that affect the target indicator, namely: the current liquidity ratio X1(CR), the autonomy ratio X2 (ER) and the return on total assets ratio X3(ROA). Practical value. Indicators that make it possible to assess the financial security of enterprises to the greatest extent are proposed, and practical recommendations are given for the ranges of their optimal values for constructing an integral indicator of the financial security of enterprises using a fuzzy-logical approach.