scholarly journals The methodological aspects of assessment of solvency and liquidity of agricultural enterprises

2020 ◽  
pp. 27-32
Author(s):  
Inna DVORNYK
Keyword(s):  
Financial Stability ◽  
Balance Sheet ◽  
Systematic Analysis ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
Priority Task ◽  
Rational Management ◽  
Balance Sheet Liquidity ◽  
Business Entities ◽  
Methodological Aspects

In modern conditions, the search for opportunities to strengthen the financial position and increase financial stability becomes a priority task of business entities, which is solved by means of a comprehensive systematic analysis of the enterprise. The purpose of the paper is to analyze the existing methodological approaches to assess the liquidity and solvency of an agricultural enterprise and to determine the directions of their improvement. Solvency is the presence in the enterprise of funds for repayment by them in due time and in full of their debt obligations arising from credit and other transactions of a monetary nature. Liquidity is a way to maintain solvency. Liquidity of an enterprise includes the concepts of liquidity and balance sheet liquidity. The article summarizes the classification of assets and liabilities of the balance sheet and defines the conditions of its absolute liquidity. The method of estimation of solvency and liquidity indicators is presented. The main factors, that influence the on the level of solvency of an agricultural enterprise, are summarized: nature of the enterprise activity, stock status, terms of settlements with debtors, state of accounts receivable. Areas of increase of solvency are distinguished: ensuring balance of assets and liabilities, increase of sales volumes and reduction of expenses, coordination of plans of production and sale, ensuring of uninterrupted work of the enterprise, attraction of long-term loans for financing of capital expenses, rational management of available financial resources, including determination of optimal volumes of production stocks control over the shipment of products, compilation of receivables, management of receivables, the collection of receivables in the next period, the use of modern forms of refinancing.

scholarly journals Problems of organizational and legal forms of management in the agricultural sector

2021 ◽  
Vol 12 (4) ◽  
Author(s):  
Novak Tamara ◽  
◽  
Marchenko Svitlana ◽  
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Entrepreneurial Activity ◽  
Legal Form ◽  
National Legislation ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
Legal Literature ◽  
Business Entities ◽  
Legal Forms

The article is devoted to the analysis of some problems of organizational and legal forms of management in the agricultural sector. The main tendencies of development of organizational and legal forms of Ukraine in the aspect of deregulation of entrepreneurial activity and opening of the market of agricultural lands are determined. The role and significance, types, legislative and doctrinal approaches to determining the organizational and legal form of agricultural production are highlighted. On the basis of the analysis of legal literature, national legislation and practice of its application the problems of separate organizational and legal forms of conducting agricultural production (farms, collective agricultural enterprises, etc.) are analyzed. It is concluded that the principle of equality of ownership and management in agriculture is violated in Ukraine. Keywords: organizational and legal forms, business entities, agricultural production, agricultural sector, farms, collective agricultural enterprise

scholarly journals Economic and legal support for the process of bankruptcy prevention and liquidation of business entities

2021 ◽  
pp. 9-12
Author(s):  
Nataliia ARTAMONOVA
Keyword(s):  
Financial Stability ◽  
Balance Sheet ◽  
The State ◽  
Future Assessment ◽  
Economic Justification ◽  
Zone Of Influence ◽  
Business Entities ◽  
Alternative Sources ◽  
The Individual ◽  
Internal Potential

Introduction. One of the most important indicators of the country's economic development is the level of growth in the number of financially insolvent, bankrupt and liquidated enterprises, because the interests of the state, business and the individual are in the zone of influence and attention. The purpose of the paper is to assess the legal changes in the legislation of Ukraine on the application of bankruptcy procedures and presents the economic justification and methodical implementation of a set of tools for timely detection of insolvency, their current and future assessment to prevent bankruptcy and liquidation of business entities. Results. The data of the State Statistics Service on the increase in the number of insolvent enterprises in 2020 are presented. The systematization of methods and tools for timely detection of insolvency in the context of legal innovations is proposed, thanks to the introduction of tools for testing, labeling, ranking. The testing program for early diagnosis of bankruptcy provides for the calculation of indicators to assess the structure of the balance sheet; opportunities to restore solvency and the ability to neutralize the threat of bankruptcy due to the internal potential of the enterprise. The system of markers and indicators is used to determine the creditworthiness of the enterprise and for self-analysis, when considering alternative sources of financing to avoid the threat of bankruptcy. Rating is used to definitively determine the level of financial stability or insolvency of the enterprise. Conclusion. This tools should be used at different stages: both at the pre-crisis stage, to prevent the possibility of financial deterioration, and at the crisis and post-crisis stages, to assess the effectiveness of the enterprise and the likelihood of early detection of bankruptcy.

scholarly journals Determinants of Off-Balance Sheet (OBS) Activities: A Case of Selected Retail Banks in Malaysia

2019 ◽  
Vol 14 (1) ◽  
pp. 95-113
Author(s):  
Oladokun Nafiu Olaniyi ◽  
◽  
Shamsul Kamariah Abdullah ◽  
Charmele Ayadurai ◽  
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Financial Stability ◽  
Generalized Method Of Moments ◽  
Balance Sheet ◽  
Policy Implications ◽  
Risk Transfer ◽  
Credit Risk Transfer ◽  
Balance Sheet Liquidity ◽  
The Stability

The present paper examines factors influencing the Off-Balance Sheet activities of selected commercial banks in Malaysia for the period 2004- 2014. OBS activities are an integral part of financial institutions in response to the needs of businesses for different types of guarantee that have conflicting implications on the stability of financial institutions. Data collected on selected banks from the Bankscope database was analyzed using the Generalized Method of Moments (GMM) regression. Specifically, the study built its analysis on three main recognized determining factors namely: (1) liquidity motives, (2) credit risk transfer motive, (3) profitability motives, and (4) capital arbitrage motive. The findings thus suggest that the selected banks mainly used OBS instruments for capital arbitrage purpose, enhancing operational efficiency and managing loan portfolio risks. The findings further suggested that its usage for capital arbitrage purposes may undermine the regulatory measures of accurately estimating and monitoring the risk of banks. The findings thus offer significant practical and policy implications that can help to enhance financial stability. Keywords: off-balance sheet, liquidity, credit risk transfer, profitability, capital arbitrage

scholarly journals The Concept of Assessing the Level of the Enterprise Economic Security

2021 ◽  
Vol 11 (2) ◽  
pp. 1259-1268
Author(s):  
Irina Yurievna Vaslavskaya
Keyword(s):  
Financial Stability ◽  
Negative Impact ◽  
Cost Benefit Analysis ◽  
Balance Sheet ◽  
Cost Benefit ◽  
Economic Security ◽  
Assessment System ◽  
Risk Indicators ◽  
Decision Makin ◽  
Balance Sheet Liquidity

Several problems can be identified in assessing the economic security of organizations. Most of the developed techniques in this area involve the assessment of the financial component of economic security using methods for assessing the probability of the bankruptcy of the enterprise. At the same time, there are no unambiguously recommended evaluation methods; often enterprises are limited to any one complex methodology. Any evaluation of the financial component of the security is reduced to the cost-benefit analysis and evaluation of balance sheet liquidity and the financial stability of the organization, without the formation of an integral indicator. This approach does not consider the nature of internal processes and assesses the final impact of these “processes” on the indicators of financial statements (based on which the assessment of the financial component of economic security is formed). Also, one of the problems of assessing economic security using mathematical models is the complexity of mastering these models and the lack of the programs for performing calculations. It should be noted that it is a characteristic of the largest number of studied methods that usually assess the current state of the enterprise, the complex methodology does not consider threats, the maximum that can be considered is a possible prevented damage. Nevertheless, working with threats in the assessment system allows us to predict the possible negative impact on the state of economic security. And timely prevent these situations or “take the risk”, since it is advisable to assess threats through risk indicators. Assessment of economic security is as important as any other economic analytical information needed for the timely decision-makin and the formation of proactive measures.

scholarly journals Ways to Assess and Improve the Financial Sustainability of Russian Organizations Development

2019 ◽  
Vol 9 (1) ◽  
pp. 1568-1571
Keyword(s):  
Sustainable Development ◽  
Financial Stability ◽  
Balance Sheet ◽  
Policy Instruments ◽  
Sustainable Growth ◽  
Financial Indicators ◽  
Objective Condition ◽  
Financial Return ◽  
The Sustainable Development ◽  
Business Entities

In the implementation of production activities, the objective condition for the sustainable development of business entities is a comprehensive approach to the analysis of financial indicators of the organization. The problem of ensuring sustainable growth has been relevant for several decades and is the subject of close attention of Western and domestic scientists. The work clarifies the methodological tools relating to the assessment of competitive positions in the domestic market, provided that solvency is maintained. The essence of sustainable development at the macro and micro levels is revealed. The main focus is on the assessment of financial stability indicators as an information base for making effective management decisions. The paper discusses the theoretical foundations of the analysis of liquidity and solvency of companies. The types of the state of liquidity of the balance sheet of the company are clarified. The essence, as well as the relationship of solvency and liquidity, as one of the main areas of the financial condition of the organization is revealed. An algorithm for determining the potential solvency of an organization is presented; a mechanism for increasing the financial return on assets is considered. On the example of the organization of the building complex, the indicators of financial indicators were evaluated, critical values were determined for the studied indicators. A set of measures to improve financial performance is proposed. The presented material may be interesting for the development of public policy instruments for the implementation of the concept of sustainable development of the regional system.

scholarly journals FINANCIAL STABILITY AS A FINANCIAL SECURITY INDICATOR OF AN ENTERPRISE

2021 ◽  
Vol 4 (39) ◽  
pp. 228-240
Author(s):  
N. Hrynyuk ◽  
L. Dokiienko ◽  
О. Nakonechna ◽  
І. Kreidych
Keyword(s):  
General Position ◽  
Financial Stability ◽  
Balance Sheet ◽  
The Other ◽  
Practical Significance ◽  
Security Level ◽  
Financial Security ◽  
Balance Sheet Liquidity ◽  
The One ◽  
Operating Activities

Abstract. The system diagnostics of enterprise financial security developed by the authors are based on taking into account the combined effect of the main elements of the financial stability management process. On the basis of the justification of the interdependence of the main components of an enterprise’s financial security (on the one hand, the types of financial stability and the liquidity of the balance sheet, on the other hand, their correlative effect on the level of financial security) the authors proposed a model for its evaluation. It has been proposed that the type of financial stability of an enterprise should be determined on the basis of the identification of the financial situation in accordance with the scale developed on the basis of the values of the main financial stability ratios. The type of liquidity on the balance sheet is based on a comparison of liquidity-based items of assets with maturities. The unified impact of types of financial stability and balance sheet liquidity on the level of financial security became the basis for the development a matrix for diagnostics the general position of financial security of the enterprise. Based on the established relationship between the degrees of financial stability and liquidity of an enterprise on the one hand, and the level of financial security of operating activities on the other, a model has been developed to assess the level of financial security of the enterprise’s operating activities. It has been proposed that the financial stability and liquidity of an enterprise should be determined on the basis of a three-tiered indicator by classifying financial situations within the established indicator scale: depending on the priority of selecting funds to finance the tangible portion of a negotiable asset and the sufficiency and composition of a negotiable asset to meet current liabilities. On this basis, a diagnostic matrix of the financial security position of the enterprise’s operational activities has been developed. The interconnection of the positions of the financial security of the enterprise and the unification of its level enabled the authors to develop a matrix of zones of the general position of the financial security of an enterprise where, depending on the combination of financial security levels, zones are distinguished from absolute financial security to financial danger. The testing of each element of the proposed enterprise financial security diagnostic’s system on the materials of a selected group of enterprises of the oil-and-fat industry confirms the practical significance of the developed tools in the process of managing their general financial security. Keywords: financial security, financial security level, financial security position, financial security of operating activities, financial stability, liquidity, oil-and-fat enterprises. JEL Classification G30, M20, Q14 Formulas: 14; fig.:5; tabl.: 4; bibl.: 22.

scholarly journals Investment attractiveness in the system of management and business reputation of agricultural enterprises

2021 ◽  
pp. 125-138
Author(s):  
O. Shust ◽  
Yu. Grinchuk ◽  
I. Paska ◽  
K. Tkachenko
Keyword(s):  
Management System ◽  
Financial Stability ◽  
Business Processes ◽  
General Characteristic ◽  
Added Value ◽  
Reputation Management ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
The Impact

The article considers the issue of increasing the investment attractiveness of agricultural enterprises in terms of the effectiveness of their management system and business reputation. It is proved that in the conditions of digital transformation of the economy, as well as the manifestation of crisis phenomena, in particular, the Covid-19 pandemic, certain adjustments are made in business processes, which requires agricultural enterprises to improve the quality of management and management system in general. It is established that the effectiveness and quality of management are indicators of the level of development of the management system, which characterize the potential and actual levels of potential of the management system of any business entity. It is substantiated that the business reputation of an agricultural enterprise in terms of digitalization is a decisive factor in increasing the investment attractiveness of the organization, and the quality of the management system is characterized by the degree of development of senior managers and professionalism of employees who contribute to achieving business reputation. The components of the formation of external and internal business reputation of the enterprise, which determine the added value, are systematized in the form of a reputational premium that its owner can receive when selling his organization on the market. The definition of investment attractiveness of an agricultural enterprise as a general characteristic that reflects the efficiency and reliability of investing in the development of the enterprise includes the state, innovation and efficiency of its assets, their liquidity, solvency and financial stability, as well as strategic prospects for the industry. It is proved that the quality of the management system of the enterprise affects the business reputation of the enterprise, the awareness of investors about the profitability of the business, the profitability of shares, which contributes to the intensification of investment activities. The system of a balanced system of indicators has been adapted to assess the impact of business reputation on the investment attractiveness of an agricultural enterprise. It is substantiated that in order to protect investments, the shareholder exercises managerial influence on the enterprise, increasing investment attractiveness is formed by the investment management subsystem and the dividend management subsystem. Key words: investment attractiveness, business reputation, management system, agricultural enterprise.

scholarly journals THEORETICAL ASPECTS OF ASSESSMENT OF FINANCIAL SUSTAINABILITY OF AGRICULTURAL ENTERPRISES

2021 ◽  
Author(s):  
Oksana Pavlenko ◽  
◽  
Diana Kogushko ◽  
Keyword(s):  
Financial Stability ◽  
Agricultural Development ◽  
Legal Framework ◽  
Normative Values ◽  
Financial Sustainability ◽  
Agricultural Enterprises ◽  
Financial Condition ◽  
Agricultural Enterprise ◽  
The Absolute ◽  
High Level

The article examines the essence of the concept of “financial stability of the enterprise” and different views on its interpretation by domestic scientists. The methodical bases of an estimation of financial stability of the enterprise to which calculation and the analysis of absolute indicators and relative indicators most often belong are considered. Their explanations, formulas for calculation and normative values of these indicators are given. Theoretical aspects of the influence of factors on the provision of financial stability are also given, because this is one of the most important conditions for life, development and further stable provision of a high level of competitiveness of the enterprise. Namely, the factors that are divided into independent of the enterprise and those that directly depend on the internal situation and development of the enterprise were considered. The existing methods of analysis of financial stability of the enterprise are considered and explained. The main ones are aggregate, coefficient, margin, point, balance, integral and factorial methods, as well as the most suitable methods for determining the financial stability of the agricultural enterprise. The application of the main indicators of financial stability of an agricultural enterprise as an indicator of financial stability of the enterprise and solvency is given and substantiated. The main types of financial stability of the enterprise are also given and explained, namely the absolute type, normal, pre-crisis and crisis. The main tasks and prospects of agricultural development are determined. In addition, the main problems in the calculation of indicators and the overall assessment of the financial condition of the agricultural enterprise are identified. The issues that need urgent solution and improvement are proposed to further improve the financial stability of the agricultural enterprise. The main ones are the improvement of the legal framework of Ukraine, to improve the regulation of relations between participants in agriculture, the development of new indicators for assessing the financial condition of agricultural enterprises and revision of regulatory values of these indicators in connection with the specifics of this industry.

scholarly journals Methodological Tools for Diagnosing Insolvency (Bankruptcy) of Organizations in the Anti-Crisis Management System

2020 ◽  
Vol 50 (4) ◽  
pp. 588-601
Author(s):  
Svetlana Chernichenko ◽  
Roman Kotov
Keyword(s):  
Crisis Management ◽  
National Economy ◽  
Balance Sheet ◽  
General System ◽  
Legal Regulation ◽  
Diagnostic Model ◽  
Bankruptcy Risk ◽  
Agricultural Enterprises ◽  
Classical Models ◽  
Balance Sheet Liquidity

Introduction. Bankruptcy is the most important element of legal regulation of modern market relations. National economy has to be able to predict a potential default in the general system of anti-crisis management. Therefore, it needs advanced techniques and tools of anti-crisis diagnostics for the timely management solutions. Study objects and methods. The analytical information presented in this work is multi-tiered and reflects the all-Russian, industrywide, regional, regional-industry, and corporate levels. The research featured agricultural enterprises of the Kemerovo region. The information underwent three types of formatting: legislative, statistical, and diagnostic. Results and discussion. During the first stage, the authors assessed external factors and trends in individual components of anti-crisis diagnostics in a given economy sector against the background of all-Russian and industry-wide trends. Enterprises appeared sensitive to bankruptcy risk; the trend decreased in 2014–2018. The second stage involved developing of a selective-indicative model for diagnosing insolvency of Russian organizations. The model took into account regional and industrial traits and focuses on large and medium-sized agricultural enterprises in the region. The model selected general indicators from a set of studied parameters, formed from fifty financial ratios presented in twenty-two of the most well-known methods of anti-crisis analysis. Bankruptcy was diagnosed on the basis of preference matrix, according to the criterion of the active use of coefficients in analytical practice. A comparative analysis of bankruptcy criteria and indicators made it possible to define the degree of adequacy of the set of indicators. Four analytical vectors were defined after thematic grouping of the identified indicators: balance sheet liquidity (current liquidity ratio), property and capital structure (financial dependence and asset mobility ratios), security (working capital ratio with own circulating assets), efficiency (economic profitability, or loss ratio, and the ratio of business activity in the market). The equation of rating assessment of the insolvency probability demonstrated the total impact of these indicators, taking into account their individual “equity participation” in the aggregate of key parameters. Conclusion. The final set of general exponents of the diagnostic model can be qualified as a neuro-analogue of “classical” models that ignores the values of the regression coefficients, which are usually not adapted to Russian realities. The model built on the basis of bankruptcy indicators, taking into account their individual “equity participation” in the rating number, can be used as a flexible methodological tool for diagnosing bankruptcy in the national economy of Russia.

MONITORING AND CONTROL OF FINANCIAL STABILITY AND ECONOMIC SECURITY OF AGRICULTURAL ENTERPRISES

2019 ◽  
pp. 24-31
Author(s):  
Oleksiy GAVRILENKO
Keyword(s):  
Financial Stability ◽  
Food Industry ◽  
Economic Security ◽  
Financial Sustainability ◽  
Monitoring And Control ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
The Matrix ◽  
Stability Type ◽  
And Control

Abstract Introduction. Food businesses are constantly experiencing financial difficulties due to untimely activity results analysis. The financial stability support program is a key objective of the agricultural enterprise. It is possible to ensure its effective functioning through the introduction of an appropriate internal control system. In today's volatile economic environment, only businesses with the proper level of competitiveness and financial sustainability can function productively. The purpose of the article is to substantiate the need and to find ways to implement monitoring and control of financial stability and economic security in the management of agricultural enterprises. Results. The purpose and the most effective means of ensuring Ukraine's food policy in the current economic conditions are determined. The stages of economic monitoring (preparatory stage, research and analysis of the obtained results) are presented. The economic monitoring scheme of financial and economic situation at the enterprise is presented. Possible types of financial condition of agrarian enterprise are described. The interdependence of the financial stability type and the concept of competitive advantages development in food industry enterprises at different stages of their life cycle are presented. The comparative assessment of the existing ways and methods of monitoring financial stability have been shown in the context of conducting an internal analysis of the agricultural enterprises financial stability. The characteristic of financial stability monitoring of agrarian enterprise production on the basis of matrix method is given. The results of the financial sustainability assessment of the enterprise «Kulindorovsky» are presented based on the matrix scheme. The conformity of the integral indicator of the enterprises financial stability type of the food industry in the Odessa region is estimated. The realization directions of the algorithm of internal systematic analysis implementation of agricultural enterprises financial stability are indicated. Conclusions. Analysis of agrarian enterprise financial stability it is advisable to carry out using the matrix algorithm. The proposed methodology will allow to anticipate possible threats to the financial activity of the agricultural enterprise. The results obtained will help to make management decisions aimed at stable activity of the enterprise. Keywords: monitoring, control, analysis, economic security, risk, agricultural enterprise, financial security of agricultural enterprises.

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