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
Related Articles
- EP ID EP531562
- DOI -
- Views 82
- Downloads 0
Establishing of the itellectual property market in Ukraine
The article is devoted to the establishing and development of the intellectual property market worldwide and in Ukraine in particular. The article deals with the necessity of qualitative legal protection of intellectual...
Justification of approaches to adaptive management changes in the economic system
The article is devoted to problems associated with the operation of transformation of the economic system. We investigated the properties of the modern economic system transformation process. We also have justified the i...
Identification of factors influencing internal audit in the framework of the three lines of defence model
Introduction. In the modern practice of management the most popular methods of risks reducing are based on the effective internal audit system development and implementation, functioning of which depends on many factors....
Analysis of regulating changes of structures’ of local budgets expenditures and their influence on the associated territorial communities
The article deals with changes in the structure of local expenditures in 2018. In particular, the analysis of growth rates of local expenditures and implementation of local budget expenditures during the first half of th...
Motivation of personnel in industrial enterprises under crisis conditions
This article describes the material and non-material methods of motivation of employees of industrial enterprises. We give a picture of the current approaches to employee motivation in the economic crisis.