DIAGNOSTICS OF THE FINANCIAL STATE OF ENTERPRISES HOW A FINANCIAL SAFETY MANAGEMENT TOOL

Abstract

The instability of the economy causes a high riskiness of economic activity, and, consequently, there are threats to the financial security of the enterprise. In these conditions, before the management of enterprises there are many problematic issues in assessing the financial condition of the company. The solution of these problematic issues is possible using the tools of financial analysis, which will ensure the financial security of the enterprise. The purpose of the article is to outline the methodological provisions of the financial analysis, which make it possible to carry out a diagnosis of the financial state of enterprises to manage its financial security. The research objective is to review the methods of financial analysis in the normative documents and works of predecessors; outline a financial analysis tool that will ensure the financial security of the enterprise. According to the results of the study, it was established that the diagnosis of the financial condition of the company to manage its financial security is best carried out in the following stages: phase 1. Express analysis, which involves a general assessment of the financial condition of the enterprise based on a number of indicators that characterize the enterprise from different sides; Stage 2. In-depth analysis of the financial condition of the company in the following areas: assessment of property potential; assessment of liquidity, solvency and creditworthiness; assessment of financial stability; assessment of business activity; valuation of cash flows; evaluation of financial results; performance evaluation; assessment of the probability of insolvency and bankruptcy. Prospects for further research is the development of means of computerization of calculations according to this method.