FINANCIAL ANALYSIS OF THE INVESTMENT ATTRACTIVENESS OF THE ENTERPRISE

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 270-273
Author(s):  
TETYANA RZAEVA ◽  
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Financial Analysis ◽  
Cost Index ◽  
Return On Equity ◽  
Financial Condition ◽  
Standard Position ◽  
Theoretical Approaches ◽  
Asset Turnover ◽  
The Cost

The purpose of the article is to study the concept of investment attractiveness of the enterprise. Outline of existing methods and areas of research. Research of existing theoretical approaches to understanding the concept of “investment attractiveness”. Determining areas for assessing investment attractiveness according to the needs of financial analysis. It is advisable to study the company’s position in the market and its business reputation. It is important to calculate the integrated coefficient of investment attractiveness. It is important to calculate the ratio of borrowed and own funds, asset turnover ratio, current liquidity ratio, return on equity. It is important to set the parameters corresponding to the level of the standard position of the enterprise in the market. Emphasis is placed on assessing the level of the company’s dependence on competitors. It is important to study the profitability of products, return on investment. It is important to consider the strengths and weaknesses of the enterprise. It is appropriate to calculate the sales revenue index, the net profit index, the cost index, the long-term liability index. It is proposed to study the dynamics of the characteristics of financial stability, profitability, liquidity of assets and their turnover. The purpose of the article is achieved. Theoretical approaches to the concept are investigated. The directions of assessment are considered. The development of existing directions is offered. The needs of financial analysis are outlined. The directions of financial analysis of investment attractiveness are determined. Some results were obtained. It is proposed to assess the investment attractiveness of the enterprise based on the results of financial analysis. The basis of financial analysis is financial reporting. Analysis of financial condition is the basis for financial analysis. It is expedient to carry out the financial analysis in the following section: the analysis of liquidity of the enterprise, its solvency, financial stability, business and market activity, etc.

scholarly journals Business Planning and Assessment of Its Impact on the Enterprise Financial Stability

2020 ◽  
pp. 78-84
Author(s):  
Kateryna Shtepenko ◽  
Lyudmyla Svystun ◽  
Iryna Krekoten
Keyword(s):  
Financial Stability ◽  
Business Processes ◽  
Functional Relationship ◽  
Financial Analysis ◽  
Business Activity ◽  
Financial Independence ◽  
Financial Condition ◽  
Content Ratio ◽  
Asset Turnover ◽  
The Impact

At the present stage of the company development as an open social and economic system the question of how existing methods of financial analysis meet the needs of users considering the dynamism and complexity of business processes remains relevant. The purpose of the article is study relationships between static and dynamic indicators of financial condition, to reflect its characteristics such as business activity and financial stability. The article defines the functional relationship between dynamic business activity indicators and static indicators of financial stability, grounds technique of factor analysis of financial stability. The economic content ratio of the assets turnover and equity is defined. The nature of its relationships with the dynamics of assets is considered. Both theoretically and practically it is determined that if the correlation of ratio of asset turnover and equity is bigger than the ratio of financial independence at the beginning of the period under study, the positive dynamics of the property will affect the company’s final financial stability and vice versa, if the ratio is less than the rate of financial independence at the beginning of the period under study, the impact of positive dynamics of property on the final financial stability will be positive. It is proposed to consider this dependence both for factor retrospective analysis and for financial stability forecasting.

Bank risk, profit efficiency and profitability in a frontier market

2020 ◽  
Vol 36 (4) ◽  
pp. 381-402
Author(s):  
King Carl Tornam Duho ◽  
Joseph Mensah Onumah ◽  
Raymond Agbesi Owodo ◽  
Emmanuel Tetteh Asare ◽  
Regina Mensah Onumah
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Efficiency Score ◽  
Policy Formulation ◽  
Profit Efficiency ◽  
Content Type ◽  
Return On Equity ◽  
Insolvency Risk ◽  
Asset Turnover ◽  
The Impact

PurposeThe study examines the impact of risk on the profit efficiency and profitability of banks in Ghana.Design/methodology/approachData envelopment analysis was used to estimate profit efficiency scores and accounting ratios were used to measure profitability. The panel corrected standard error regression was used to assess the nexus using a dataset of 32 banks from 2000 to 2015.FindingsThe paper found that the Ghanaian banking industry exhibits a variable return to scale property, suggesting that average costs change with output size. Profit efficiency score for banks closer to the efficiency frontier is 61%. Credit risk is significant in enhancing profit efficiency and return on equity. Market risk is relevant in improving profit efficiency, return on asset and asset turnover. To drive profitability, bank managers have to be committed to effective liquidity risk, insolvency risk and capital risk management. Operational risk reduces shareholders' returns. The impact of size, age, stock exchange listing, cost efficiency and competition have are all been discussed extensively.Practical implicationsThe findings contribute to the knowledge on the risk-performance nexus and provide information that is valuable to academics, bankers and regulators for policy formulation. The findings are relevant to the newly established Financial Stability Council.Originality/valueThis paper appears to be among the premier attempts to examine the effect of various risk types identified in the Basel III framework on bank performance in Africa.

scholarly journals Assessment of financial stability and payment capacity of Russian companies

2021 ◽  
Vol 12 (2) ◽  
pp. 92-100
Author(s):  
Nikolay M. Tyukavkin ◽  
Vasilisa S. Vasilenko
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Financial Stability ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Automatic Generation ◽  
Financial Flows ◽  
Complex Concept ◽  
Software Products

The article discusses the concepts of financial stability, solvency, solvency ratios, financial reporting, financial analysis, liquidity indicators, solvency indicators, balance sheet, report on financial results, considers the advantages of implementing software products for the automatic generation of financial indicators based on financial statements. Financial management is becoming a time-consuming and priority task facing the management personnel of any modern enterprise, regardless of its field of activity. The financial stability of an enterprise is a complex concept that reflects a financial condition in which the enterprise is able to freely dispose of funds, balance financial flows, carry out effective activities in conditions of entrepreneurial risk and a dynamically changing environment, while maintaining solvency, having investment potential and a number of competitive advantages. The system of indicators characterizing the solvency and financial stability of the enterprise is the most important aspect, therefore, this article also discusses the indicators of financial stability, solvency, their calculation procedure, as well as the size and results. Methods for assessing the information contained in the financial statements are determined, examples of calculating the liquidity and solvency ratios of enterprises are given. The ways of increasing the financial stability and solvency of companies are described and considered.

scholarly journals Application financial analysis methods for the designing of innovative food enterprises, aimed at import substitution

2019 ◽  
Vol 81 (1) ◽  
pp. 397-401
Author(s):  
K. V. Chekudaev ◽  
G. A. Suyazova ◽  
E. A. Motina ◽  
N. A. Matvienko
Keyword(s):  
Financial Analysis ◽  
Import Substitution ◽  
Financial Statements ◽  
Bankruptcy Risk ◽  
Return On Equity ◽  
Voronezh Region ◽  
Membrane Processing ◽  
Asset Turnover ◽  
Probability Of Bankruptcy ◽  
Product Sales

The article formulates the problem of the lack of pectin production in the country, which affects the food security of Russia. The relevance and significance of this problem, as well as the feasibility of creating a pectin production line in the territory of the Voronezh Region are considered. Various technologies for the production of pectin are given, but the most progressive is the method of electro-membrane processing of technological media. Further, the work presents the production and financial plan of the projected enterprise for the production of pectin and based on its results, forward-looking financial statements are formed. To assess the probability of bankruptcy of an enterprise, it is necessary to create an adapted methodology for assessing the risk of bankruptcy. On the basis of a sample of enterprises whose activities are related to the production of thickeners and gelling agents, some of which are actual bankrupts, a modified Suyazova model is created. economic profitability indicators, current liquidity ratio, return on equity, stock turnover ratio, asset turnover and product sales profitability across all enterprises in the last three years of the company's activity were calculated. On the basis of the calculations made, a new method was obtained, defining 4 possible probabilities of bankruptcy: high, medium, low and minimal. The technique was tested on the same enterprises that were used to create it. Approbation of the methodology showed that in the year of bankruptcy all bankrupt enterprises were classified as bankrupt, and the existing ones were recognized as valid. The model also predicts the average and high probability of bankruptcy two years before the onset of insolvency. This allows us to conclude that the predictive power of the proposed methodology is high. The created model predicts minimal bankruptcy risk for the projected enterprise. Consequently, the creation of pectin production is recognized as expedient and the development of this enterprise must continue.

scholarly journals Use of rating methodology for evaluation of the financial condition of the enterprise

2020 ◽  
pp. 13-16
Author(s):  
Anna CHERNIAIEVA ◽  
Anastasiia KONDRATENKO
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Financial Analysis ◽  
Comprehensive Evaluation ◽  
Balance Sheet ◽  
Integrated Approach ◽  
Assessment Method ◽  
Necessary Condition ◽  
Economic Activities ◽  
Financial Condition

Introduction. A necessary condition for effective corporate finance management, rational use of enterprise resources is a reliable and comprehensive evaluation of the financial condition of the enterprise. In the modern practice of financial management, the problem of qualitative and quantitative justification of management financial decisions is solved through the widespread use of information about the financial condition of enterprises, which are the main subjects of economic relations. The purpose of the paper is to research of essence and features of use of a rating evaluation of a financial condition of the Ukrainian enterprises in modern economic conditions Results. There are many methods for evaluation the financial condition of an enterprise: balance methods, express analysis, efficiency analysis, bankruptcy evaluation, rating evaluation, integrated evaluation. The choice of method of conducting a comprehensive evaluation of the financial condition of the enterprise depends on a number of factors: type of economic system, the degree of development of market relations, the peculiarities of the balance sheet and other forms of reporting, industry characteristics, type of activity, form of ownership of the enterprise, etc. We recommend the rating evaluation of the financial condition of the enterprise. The methodology of rating evaluation of the financial condition of the enterprise is based on an integrated approach; indicators of profitability, liquidity, financial independence and financial stability of the enterprise, and also data on efficiency of use of financial resources and production potential of the enterprise are used at its construction. Calculations of indicators of the financial condition of the enterprise according to the rating assessment method were carried out on the basis of the data of the company's public financial statements for the period 2017–2019. According to the results of calculations, the enterprise received a score of 0.615 points, which corresponds to the AA rating. Conclusion. The use of rating assessment of the financial condition of the enterprise is an effective tool of financial analysis, which allows to obtain a final evaluation of the financial and economic activities of the investigated enterprise.

scholarly journals Increasing the financial stability of enterprises with the help of financial analysis tools

2021 ◽  
pp. 185
Author(s):  
Andriy Lyubenko ◽  
Ruslana Shurpenkova ◽  
Oksana Sarahman
Keyword(s):  
Financial Stability ◽  
Financial Analysis ◽  
Economic Stability ◽  
Successful Operation ◽  
Market Conditions ◽  
Financial Condition ◽  
Qualified Personnel ◽  
Study Results ◽  
Functional Components ◽  
Selection Of

Introduction. In market conditions, the successful operation of the enterprise largely depends on the level of stability of its financial condition. If the company is financially stable, it has a number of advantages over other companies of the same profile to obtain loans, attract investment, in the selection of contractors and in the selection of qualified personnel. The higher the financial stability of the company, the greater it is regardless   of changes in market conditions and, consequently, the lower the risk of bankruptcy. Therefore, the strategic goal of any business is to ensure financial stability.If the company is financially stable, solvent, it has a number of advantages over other companies of the same profile in obtaining loans, attracting investment, in choosing suppliers and in the selection of qualified personnel. The higher the resilience of the company, the more it is independent of unexpected changes in market conditions and, consequently, the lower the risk of bankruptcy.Purpose. To develop theoretical and methodological approaches to ensure the financial stability of enterprises based on the use of financial analysis tools.Methods. The study was conducted using general and special methods of cognition: observation, statistical, logical and comparative analysis, grouping, generalization and classification, systemic and structural approaches. The total analytical potential of the tools used ensured the reliability of the conclusions and recommendations obtained in the study. Results. The essence and significance of the financial stability of the enterprise are revealed, the directions of strengthening the financial stability of the enterprise by effective use of the tools of financial analysis are outlined. The main functional components that determine the economic stability of the enterprise and a system of measures that provides a timely response to deviations from the planned values of economic stability of the enterprise are identified.Prospects for further research. Prospects for further research are to deepen the methodological foundations of ensuring the financial stability of the enterprise through the tools of financial analysis and the formation of strategies and tactics to ensure the financial stability of enterprises.

scholarly journals Overcoming ambiguity in assessing the financial sustainability of Crimean hospitality companies for anti-crisis management

2021 ◽  
Vol 11 (2) ◽  
pp. 36-56
Author(s):  
V. A. Malyshenko ◽  
K. A. Malyshenko
Keyword(s):  
Crisis Management ◽  
Financial Management ◽  
Financial Stability ◽  
System Analysis ◽  
Financial Analysis ◽  
System Development ◽  
Unstable System ◽  
Financial Condition ◽  
Macroeconomic Indicators ◽  
Strategic Program

The subject of the research is the system of methods of financial management of a company, in which a contradictory situation of conflict of goals of its development has developed, with the obligatory occurrence of systemic crises on the one hand, and the rule of constant preservation of a low risk of financial destabilization, on the other. The relevance of the study is due to the significant distance of system analysis in its categories from strategic financial analysis. Systemic destabilization of active investment outwardly looks the same as the end-of-life bankruptcy crisis, which significantly distorts the perception of potential investors in the industry in general. The scientific novelty lies in the substantiation of a method that makes it moving from a simple identification of the transitional (crisis) development stages of an unstable system (company) to the substantiation of the parameters of a strategic program, including within the framework of anti-crisis management. The aim of the research is to adapt analysis methods of the system’s crisis states to the provisions of the most system-oriented financial analysis techniques have being applied to disclose the unstable states of the “system-enterprise”. The system analysis has been chosen as the research method in various areas of its manifestation: from a general philosophical description of unstable system with characteristics of a company’s life cycle to a model for assessing the company’s financial stability for strategic purposes. The result of modeling the financial condition of such unstable companies taking into account provisions of the system analysis, was the formulation of a new category of strategic financial management — the Strategic zone for the financial stability transformation, which serves as the basis for a long-term program for the transformation of the financial condition. As a conclusion, it can be noted that applying of the financial analysis method for strategic purposes (“Fregat” model) in a single connection with the system analysis provides the possibility to identify the most dangerous crises from the standpoint of the identification complexity and consequences of the cochirid stage crises of the system development. Also, this allows to separate the investment (justified) destabilization from instability which could be the cause of wrong actions of the company’s management. All this makes it possible to objectively assess the macroeconomic indicators of the hospitality industry in general.

scholarly journals Evaluation of Pre and Post Demerger-Merger Performance: Using ABN AMRO Bank as an Example

2017 ◽  
Vol 9 (2) ◽  
pp. 196 ◽  
Author(s):  
Han Bao
Keyword(s):  
Significant Influence ◽  
Financial Analysis ◽  
Financial Ratios ◽  
Statistical Techniques ◽  
Return On Equity ◽  
Paired Sample ◽  
Merger Analysis ◽  
Net Profit ◽  
Asset Turnover ◽  
The Impact

This study attempts to measure the impact of simultaneously demerger and merger over the financial performance of ABN AMRO Bank for the period 2007-2013 by using the DuPont system of financial analysis. ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. The bank demerged from Royal Bank of Scotland Group (RBS) in the first quarter of 2010 and merged with Fortis Bank Nederland from July 1, 2010. Two statistical techniques are used in this study; first the analysis of pre and post Demerger-Merger financial ratios is drawn and second paired sample t-test is used. Based on the analysis of 3 years pre and post Demerger-Merger financial ratios and data of ABN AMRO Bank, the result shows that the event of merger-demerger has no significant influence on the bank’s Net profit margin, Total asset turnover, Return on equity and Equity multiplier. This research fills the gap of Demerger-Merger analysis in the bank industry by using DuPont system of financial analysis.

scholarly journals Using of neural networks for assessing of the financial stability of companies

2020 ◽  
Vol 8 (1) ◽  
pp. 106-110
Author(s):  
Roman Bolotov ◽  
Aleksandr Suglobov
Keyword(s):  
Neural Network ◽  
Financial Stability ◽  
Financial Analysis ◽  
Network Modeling ◽  
Neural Network Modeling ◽  
Analysis Tool ◽  
Real Sector ◽  
The Real ◽  
Advantages And Disadvantages ◽  
Financial Condition

The stability of the activities of organizations in the real sector of the economy at the macroeconomic level is the basis for creating the country's gross domestic product, developing technologies and strengthening the competitiveness of the country's products within the global economic system. To plan and forecast their activities, States and business participants are increasingly using modern methods of assessing the financial stability of companies. Today, approaches to building models for assessing the sustainability of companies are based mainly on econometric and statistical linear multidimensional methods of calculation, which does not allow us to identify hidden and nonlinear relationships that are inherent in the real world economy and the activities of economic entities. The article considers approaches to assessing the financial condition of organizations using neural network modeling and comparing it with previously used methods. In the course of the research, we developed a neural network for evaluating the financial condition of companies in the real sector of the economy, which allowed us to draw conclusions about the validity of this method of assessment in modern conditions. The article also highlights the key advantages and disadvantages of the neural network modeling method as a financial analysis tool. The scientific novelty of the article is to develop and evaluate a financial analysis tool that can be applied for practical purposes the economic entities and the substantiation of the complexity of neural network models in predicting bankruptcy; lack of methodological support; the need to develop special software; the duration of the learning process to achieve the required accuracy of the model; compliance with the requirement for equal proportions of the studied groups of objects; the correct choice of neural network architecture for research purpose; representativeness and consistency of source data.

scholarly journals PROVIDING OF FINANCIAL STABILITY OF ENTERPRISES OF PASTRY INDUSTRY

2021 ◽  
pp. 62-69
Author(s):  
Volodimir Mishchenko ◽  
Sergii Mekhovych ◽  
Irina Gorobets
Keyword(s):  
Financial Stability ◽  
Capital Investment ◽  
Financial Condition ◽  
Confectionery Products ◽  
European Standards ◽  
The Government ◽  
Quality Of Products ◽  
The Stability ◽  
The Cost

The article identifies the main trends characteristic of the modern confectionery market of Ukraine. The reasons for the slowdown in production growth, the gradual increase in prices for all types of confectionery, changes in the structure of demand for products are considered. Exports of confectionery products require Ukrainian producers to expand their own range, as well as to bring the quality of products to European standards. The recent trend characterizes the increase in demand in the domestic market for complex (combined) confectionery, so the main prerequisite for the development of the industry is to improve production, which requires significant capital investment. The paper analyzes the dynamics of the main indicators of the sample of confectionery enterprises in order to assess the stability of their financial condition. For providing of steady development of industry the Government program, is needed built on balanced to demand with application of state-private partnership. In the conditions of COVID epidemic with the aim of prevention of possible bankruptcy it is expedient to inculcate the cost-oriented management and preventive anti-crisis dynamic management. For their introduction it is necessary to work out branch purposeful events on in-plant training of workers of pastry industry.

Sign in / Sign up

Export Citation Format

Share Document