SCIENTIFIC-METHODICAL APPROACHES TO QUANTITATIVE ASSESSMENT OF FINANCIAL SECURITY LEVEL OF THE ENTERPRISE

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SCIENTIFIC-METHODICAL APPROACHES TO QUANTITATIVE ASSESSMENT OF FINANCIAL SECURITY LEVEL OF THE ENTERPRISE

Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 4, Issue 66

Abstract

In the article, it is pointed out that the successful operation and development of the enterprise is impossible without providing a sufficient level of financial security. Five levels of financial security of the enterprise are given: absolute, normal, unstable, critical, crisis. The definition of the diagnosis of financial security level as its significant component is given. Principles of assessment of the level of financial security of the enterprise are considered. Various methods of assessment of financial security level of the enterprise are analysed. It is noted that the methods of assessing financial security level of the enterprise are divided into two groups: traditional and non-traditional. After examining the professional literature on this issue, it is possible to allocate the following main groups of approaches to diagnosis of financial security level of the enterprise: based on the analysis of cash flows, based on the assessment of financial stability of the enterprise, based on the methods of forecasting bankruptcy, based on the financial performance indicators, based on the resource-functional approach, based on the definition of integrated indicators. According to the methodology based on the analysis of cash flows, the assessment of the financial security of the enterprise is grounded on the study of the indicator of net cash flow in the context of types of financial and economic activities of the enterprise with the help of the developed dynamic matrix of financial balance. The method based on the assessment of the financial stability of the enterprise provides an assessment of financial security through the analysis of financial stability, the degree of which depends on the adequacy of working capital (owned or borrowed) for the implementation of production and marketing activities. The use of methods of forecasting bankruptcy allowed to determine the extent of the crisis at the enterprise, comparing the values of the integral indicators with defined limit values (models of Altman, Springate, Fulmer, Chesser, Fox, Seifullin and Kadykov, etc.). The level of financial security of a company according to the indicator approach is evaluated based on a comparison of actual values of financial security with indicators (threshold selected indicators). The resource-functional approach is based on an assessment of the sufficiency of financial resources for working capital and also on the evaluation of the functions (collateral high financial efficiency of a company, its financial stability and independence). The integrated method involves the synthesis of financial indicators in complex designs. In addition to the methods considered to assess the level of financial security of the enterprise, others can be used: point method, program method, ranking method, etc. The need to develop a common methodology for the assessment of the financial security of enterprises considering their ownership and branch features of their functioning is pointed out.

Authors and Affiliations

T. S. Chmyr

Keywords

financial security of enterprise assessment of financial security diagnostics of financial security methods of assessment of financial security level cashflow-based approach approach based on financial stability evaluation bankruptcy forecasting methods indicator approach resource-functional approach integrated assessment

EP ID EP562157
DOI 10.32782/2520-2200/2018-4-16
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