SUBSTANTIATION OF ESTIMATION INDEXES FOR ECONOMIC SECURITY OF AN ENTERPRISE

Abstract

Financial and economic crisis that is now observed in Ukraine, determines the decrease in production and sales of many domestic enterprises, emergence of the crisis, may be a possible consequence of the bankruptcy of economic entities. At the same time, ensuring economic security of the enterprise, as a state, on the contrary, the crisis provides an ongoing assessment of economic security. Despite the existence of different approaches to the defining of the essence of economic security at the level of an enterprise, we found that economic security of an enterprise is the protection of economic interests of enterprises from real and potential threats to internal and external environment, the parameters of which create the preconditions for generating, maintaining and increasing market value of an enterprise. In addition, given the diversity of economic interests of an enterprise, as well as threats and complexity of the relationship of external and internal environment of an enterprise, the functional structure of economic security is at the stage of formation. It has been determined that the list of economic security components for an enterprise is diverse, yet it is possible to argue that every author has a priority component of the financial highlights. The leading role of a financial component lies in the overall system of economic security. To assess financial economic security component the authors propose to use relative indicators (ratios), justifying their benefits. The system of indices, which includes the equity ratio and the ratio of Beaver, coverage ratio and debt coverage ratio of cash flow, return on equity ratio and return on sales ratio. Application of sound system of indicators allows timely determine the level of economic security, identify “bottlenecks” activities and develop appropriate measures for the improvement of the situation.

Authors and Affiliations

Роман Бугріменко, Юлія Чирва

Keywords

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  • EP ID EP179613
  • DOI -
  • Views 136
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How To Cite

Роман Бугріменко, Юлія Чирва (2016). SUBSTANTIATION OF ESTIMATION INDEXES FOR ECONOMIC SECURITY OF AN ENTERPRISE. Економічна стратегія і перспективи розвитку сфери торгівлі та послуг, 2(), 189-198. https://europub.co.uk/articles/-A-179613