THEORETICAL AND PRAGMATIC APPROACHES OF ECONOMIC ENTITIES FINANCIAL STABILITY ASSESSMENT

Abstract

Introduction. The system of economic entities financial stability evaluation is a condition for their stable operation.
Based on indicators of that system directors has the ability to make effective financial decisions related to the operations of
the company and to control the degree of independence from external funding sources.
Purpose. To identify the most suitable approach to assessing the financial stability of the company, group and organize
indicators by using which the level of financial stability can be assessed comprehensively, to get the most complete and reli-
able information.
Results. This article examines the basic methodological approaches to the economic entities financial stability assess-
ment. The indicators that determine the level of financial risk associated with the forming capital sources structure can be
assessed comprehensively are systematized. Basic absolute and relative indicators that determine financial stability based
on real company financial statements are analyzed.
Conclusions. Our recommendations are aimed at improving opportunities for enterprises to operate for extended
periods, getting enough to reproduce potential, dividends payment and stable development of income, ensuring at the same time economically reasonable correlation of funding sources and assets, the excess of revenue over expenditure, maintain-
ing solvency and creating conditions to self-financing. The implementation in practice these suggestions help to ensure that
the company is financially stable, it would have an advantage over other companies at the same sphere of activity, particu-
larly in attracting investments.