Analysis of the level of solvency PJSC "Lvivoblenergo"
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 11, Issue
Abstract
Introduction. Тhe basis indicator of the financial state of the enterprise, is solvency. Therefore, solvency analysis is one of the most important principles of an enterprise, that not only provides information about financial capabilities of an enterprise, but also characterizes the reliability of financial relations with other individuals and legal entities. The purpose is to reveal the economic essence of solvency of the enterprise, as well as to study the methodical aspects of the analysis and assessment of the level of solvency of PJSC «Lvivoblenergo» for the period 2015-2017. Results. Considered approaches to the interpretation of «solvency of the enterprise» by domestic and foreign scientists gives an opportunity to claim that it is the ability of the enterprise to timely and fully implement scheduled payments and urgent obligations while maintaining the normal rhythm of economic activity. In order of comprehensive analysing the level of solvency of enterprises, it is recommended to perform a solvency assessment in the following sequence: analysis of the liquidity balance of the enterprise; assessment of the financial condition of the enterprise; calculation and analysis of the main indicators of liquidity; calculation of indicators of current solvency, as well as calculation of the integral indicator and the total solvency index. The analysis of the liquidity of the balance sheet of PJSC «Lvivoblenergo» showed that in the 2015-2017 the balance sheets were non enough liquid. During the analyzed period, the company did not have available cash enough to settle with creditors, equity was not sufficient for the formation of hard-to-leverage and current assets. Considering the degree of liquidity of current assets, the financial position of the company in 2015-2017 is assessed as a crisis. Comparison of the actual indicators of liquidity and solvency assessment of PJSC «Lvivoblenergo» with existing normative values indicate that the company is insolvent. Conclusion. Analysis of the level of solvency of PJSC «Lvivoblenergo» testified the crisis of its financial situation and insolvency. The calculations that was made allow the company to identify weaknesses, and the negative factors that have caused them, and for the managers - to make the right managerial decisions to ensure increased efficiency of financial and economic activity, liquidity and solvency of company.
Authors and Affiliations
Yuliia Volodymyrivna Shushkova, Mariana Vasylivna Vatsiak
Keywords
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