ASSESSMENT OF THE FINANCIAL STABILITY OF ENTERPRISES USING NEURAL NETWORKS

Authors

  • Oleksandr Kvashuk
  • Ina Varpiote
  • Artem Onyskiv

DOI:

https://doi.org/10.25264/2311-5149-2023-30(58)-76-83

Keywords:

company, financial condition, sustainability, neural network, bankruptcy

Abstract

The enterprise is the primary link of the economic system, the stability of which is an important condition for the effective development of the national economy. The sustainability of the enterprise covers a set of factors that allow it to achieve a controlled state of equilibrium and the ability for sustainable economic growth through effective management of activities. The main component of the company's stability is its financial condition, which ensures marketing and personnel stability, promotes the development of production and technical-technological stability, maintains investment stability, and increases the efficiency of the management process.
The study describes a neural network-based approach to assessing the financial condition of enterprises, which enables the assessment of the enterprise's financial condition based on its annual financial reports with high accuracy (over 90 percent). The study examined different neural network approaches to analyzing financial data, including the use of different neural network types, training methods, and input parameter selection. The article also examines the influence of various financial indicators on the financial state of the enterprise and suggests using the most significant financial indicators as input parameters for neural networks.

Published

2023-11-16 — Updated on 2023-11-30

Versions

Issue

Section

Mathematical modeling and information technologies in economics