Modern methods of solvency analysis of business entities
Journal Title: Економічний аналіз - Year 2018, Vol 28, Issue 4
Abstract
Introduction. The article considers a constant threat for enterprises, which is the threat of non – fulfilment of their obligations in any period. It ultimately affects the prospects of their continued existence. Modern economy has developed an appropriate system of financial methods of preliminary diagnosis and possible protection of the organization from the loss of solvency. At the same time, there are still some urgent questions concerning the need to formulate the most optimal system for solvency analysis. Purpose. The article aims to study positive features and disadvantages of modern methods of solvency analysis of business entities. Method. The methods of theoretical generalization and systematization of modern approaches to solvency analysis of business entities have been used in this article. Results. It has been determined that there are many national and foreign methods of analysis of the level of solvency of the enterprise. These methods have been developed and offered for use by various scientists and individual organizations or even by governments of certain countries or their groups. The main methods, which are used by overseas and domestic business entities, have been considered. The critical review has made it possible to conclude that these methods are oriented towards the external user, and therefore they are of interest only to the borrowers of the company or its investors, and not to itself. The use of the vast majority of these models is possible only in the modified form due to the lack of a whole range of data and features of the national economy.
Authors and Affiliations
Nina Volkova, Iryna Snitkina
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