Formation of financial envelope to provide the enterprise’s efficiency
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 11, Issue
Abstract
The article substantiates the essence of the financial equilibrium of the enterprise. The research was conducted on the example of the manufacturing enterprise, an analysis of its financial and economic condition, the main factors of financial equilibrium and ways of solving the main problems of the efficiency of activity were revealed. During the entire investigated period, the investigated enterprise had a very high and average probability of bankruptcy. Enterprises face such problems as low liquidity and solvency, lack of working capital and own funds, high dependence on borrowing sources. Financial equilibrium is one of the main conditions that determines the efficiency of the enterprise through the formation of a system of optimal financial relationships between profitability, liquidity and growth of an enterprise. The entry of a company into a crisis phase is most likely due to the lack of adequate financial security measures in the bifurcation period. The conceptual moment in shaping the mechanism of financial equilibrium is the state of the economic system, when in the process of functioning characterized by unstable deepening in the contradictions of the vectors of profitability, liquidity and growth of the enterprise, its balance and safety of operation are ensured. Ensuring the achievement of a qualitatively new state of positive dynamic financial equilibrium involves taking financial management under the control of the process of using the financial potential of the enterprise. The cyclical states of the financial equilibrium of the enterprise are distinguished, each of which has its own manifestation characteristic. The financial stability of the enterprise is a form of its positive dynamic financial equilibrium. At the stage of positive dynamic financial equilibrium, active financing of own development and implementation of innovations takes place. The positive financial equilibrium of an enterprise can be affected by the influence of bifurcations. In order to prevent development of a scenario of violations of financial equilibrium in an enterprise, protective mechanisms of its financial security should be activated. It is proposed to use financial management tools to restore the financial equilibrium of an enterprise and to ensure the efficiency of the activity.
Authors and Affiliations
Svitlana Anatoliivna Bondarenko
Keywords
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