Development of tools for realizing the potential of financial stability of enterprises

Natocheeva, Natalia; Borodin, Alex; Rud, Natalia; Kutsuri, Georgiy; Zholamanova, Makpal; Намитулина, А. З.

doi:10.9770/jesi.2019.7.2(60)

Cited by 18 publications

(14 citation statements)

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“…Thus, the financial stability in relation to an individual enterprise can be considered as being the construction of such an internal system of organizing production and financial activities that ensure long-term activity in the market. This can be achieved through effective management of a company's assets using its own and other attracted sources of capital when environmental factors are variable the authors use the concept of financial stability, which is defined as follows: the ability of the SHS Web of Conferences 9 2, 0 (2021) Globalization and its Socio-Economic Consequences 2020 3027 https://doi.org/10.1051/shsconf/20219203027 company to continue to achieve its operational goals and fulfil its mission in the long term; the ability of the company to continue to achieve its operational goals and fulfil its mission in the long term; the ability of an enterprise to undertake continuous production and business activities within the market through the effective management of its financial resources, thus ensuring its creditworthiness and solvency; building an internal system of organizing production and financial activities, which ensures continuous activity in the market through balanced asset management, using both its own and attracted sources of capital when environmental factors are variable [19].…”

Section: Financial-economics Analysismentioning

confidence: 99%

“…Indebtedness indicators -They measure the share of external capital in total capital. Total indebtedness = external sources / total capital(17); Degree of self-financing = equity / total capital(18); Finance leverage = total capital / equity(19) Credit burden = bank loans and financial assistance / total capital(20); Interest coverage = (gross profit / loss + interest expense) / interest expense (21); Interest coverage with depreciation = (gross profit + interest expense + depreciation) / depreciation expense (22); Insolvency = short-termSHS Web of Conferences 9 2, 0 (2021) Globalization and its Socio-Economic Consequences 2020 3027 https://doi.org/10.1051/shsconf/20219203027 liabilities / short-term receivables (23); Financial profitability = profit / cash flow 1 (24); Cash flow I = Profit + depreciation -change in accruals on the assets side + change in accruals on equity and liabilities -changes in reserves (25); Cash flow II = Cash flow I -Change in inventory (26); Cash flow III = Change in short-term receivables (27); Cash flow IV = Cash flow III + Change in short-term payables (28) [20].…”

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Financial Analysis as a Basis for Creation of the Financial Plan of the Selected Business Entity – Case Study

Skocdopole

2021

SHS Web of Conf.

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Research background: Authors mentioned in the Research describe a financial analysis as first step of a financial planning process. It is an effective tool in the evaluation of a company’s financial efficiency on the basis of data from financial reports, where the individual data are sorted, aggregated and measured. The analysis usually consists liquidity, activity, profitability indicators and debt ratios. The result of the analysis should evaluate financial health and subsequently predict future of the focused company. Purpose of the article: The scope of this article is a practical application of financial analysis of the company. The main sources of information include financial statements balance sheet and income statement over the period of the last 3 years. Other sources are information obtained from employees of the company and information gained by studying a literature. Methods: The analysis process begins by identifying the main objectives and targets, continues by the methodical procedure, analysis of indicators and an interpretation of the analysis results. The main objective of the analysis is to evaluate the assets, the sources and the overall economic situation of the company. The key indicators that are the status and development of current and non-current assets, the status and development of equity and liabilities and a profit development. Findings & Value added: The financial analysis of a focused company was applied for the last 3-year time period. The worst status of the indicators occurred in the second year and after the subsequent intervention of the company management the result improved to sustainable status.

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Section: Financial-economics Analysismentioning

confidence: 99%

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confidence: 99%

Financial Analysis as a Basis for Creation of the Financial Plan of the Selected Business Entity – Case Study

Skocdopole

2021

SHS Web of Conf.

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“…It becomes obvious that Pareto-optimal solutions will not be unique. Based on game theory, it is obvious that for our set there is only a single Nash equilibrium state [9][10]. If the requirement is fulfilled 00 ( ) ( ), 0, 1.…”

Section: Stage I the Dynamics Of The Processmentioning

confidence: 99%

Creation of Innovative Model of a Vertically Integrated Corporate Group with Regard to Optimality Properties

Лапшина¹,

Starikov²,

Gribanov³

et al. 2020

Proceedings of the Russian Conference on Digital Economy and Knowledge Management (RuDEcK 2020)

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Currently, the positive aspect associated with the innovative advantages of financial and industrial corporate groups, due to the priority financing of all innovations within such a Corporation, deserves special attention. Previously, it was proved that the separation of the investor from the consumer increases the level of requirements for the profitability of production of firms that implement innovations. For this reason alone, the consolidation of financial organizations into a corporate group is a significant dominant factor in obtaining further benefits that lead to an increase in the technological capabilities of such associations. In other words, such associations, in which financial institutions take an active part in obtaining the income of the member firms-innovators and consumer firms, have significant priorities, both in the field of innovation and in the field of investment. The subject of the research is an innovative model of a vertically built business structure. The purpose of the work was to substantiate the methods of using the Pontryagin stability principles and the Lipschitz condition for analyzing the possibility of optimizing the innovation investment model. The paper presents a detailed analysis of the possibility of optimizing the model of investing material resources in innovative processes, and also analyzes the effectiveness of using innovative approaches. The paper also provides a review of the literature on the presented problems. The results of the study was the decision of several tasks: the analysis of economic efficiency in the use of innovations on the basis of a dynamic model of interaction between enterprises and the Bank in the part of a vertically integrated corporate group that contributes to the production of new competitive products, it is proved that the equilibrium of a differential game guarantees the stability of the dynamic model, specified requirements pre-selection of innovative projects for their most effective future implementation. The results obtained can be interpreted as the ability of a corporate group to increase the efficiency of providing material resources for industrial research projects.

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“…Budget planning provides management with the means to investment opportunities of the company in terms of assets, that are can attract the most income into the company. It is important, that presence of a well-built and implemented budgeting system make the company "financially transparent" for both investors, managers, and external users of information [5]. Budgeting helps to strengthen financial discipline within the organization, to motivate all structural units of the enterprise in the interests of the company work more efficiently as a whole [6,7].…”

Section: Introductionmentioning

confidence: 99%

Special features of corporate budget planning: contemporary approach

et al. 2020

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The purpose of this article was to study budgeting process from the point of its structure, analyze the Russian and European models of budget planning. Russian experts seem to favor a combination of rolling budgeting and top-down approach. Zero based method is preferred for larger projects with strict budgeting culture. For smaller and medium business, there remains lack of attention to budgeting. It is caused by lack of finance, experience and prioritization of other financial management tools. The classical approach used in the beginning stage would definitely be the top-down approach, which despite some its flaws can work well in the beginning stage of business development, when the strategy is rather aggressive and growth-oriented. Larger better-established organizations tend to realize importance of budgeting process and devote greater attention to developing its structure. The combination of methods is rather appropriate and additional investment should be made specifically into the Information System used in the budgeting process, as it is associated with reducing labor costs and accelerating processes. Unfortunately, Russian companies still find it difficult to keep up with development of new techniques on budgeting process overseas. This was shown in detailed comparison of Russian budgeting model with the European one.

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Development of tools for realizing the potential of financial stability of enterprises

Cited by 18 publications

References 10 publications

Financial Analysis as a Basis for Creation of the Financial Plan of the Selected Business Entity – Case Study

Financial Analysis as a Basis for Creation of the Financial Plan of the Selected Business Entity – Case Study

Creation of Innovative Model of a Vertically Integrated Corporate Group with Regard to Optimality Properties

Special features of corporate budget planning: contemporary approach

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