Management of Financial Sustainability in the System of Formation of the Financial Strategy of the Enterpriseof Machine Building Enterprises

Abstract

The article systematizes scientific approaches to defining the concept of managing the financial stability of the enterprise. Literary sources related to the study of financial stability management of the enterprise are analyzed. The tasks which should be solved by process of management of financial stability of the enterprise are formulated. On the basis of the analysis the purpose and tasks of management of financial stability of the enterprise are defined, the basic of which can be defined as revealing of the reasons and the basic factors of maintenance of financial stability, purposeful search of receptions and methods of management of financial stability. The characteristic of financial stability management as one of the most important tasks of financial management of enterprises in modern economic conditions is given. It is proved that increasing the efficiency of the enterprise depends on the validity, timeliness and appropriateness of management decisions in this area. The expediency of application of the system approach to management of financial stability as the approach allowing to consider influence of internal and external factors on a condition of finances of the enterprise is substantiated. The problems of financial problems faced by machine-building enterprises are described. It is proved that in their economic essence these problems are largely identical and therefore their solution is possible with the use of universal tools and standard measures that form a sequence of managing the financial stability of the enterprise. The most important element of this sequence is the assessment of financial stability of the enterprise, which is based on the calculation of absolute and relative indicators that determine the profit and loss of the enterprise, changes in the structure of its assets and liabilities, and settlements with debtors and creditors. It is substantiated that in the long run financial stability can be characterized by indicators of changes in the market value of the enterprise, such as return on net assets and equity, economic growth of the enterprise, weighted average cost of capital and its structure, and market value of the enterprise. In the medium term, tactical financial stability is characterized by indicators of financial independence, maneuverability, business activity, return on sales, assets and net assets.

Economic resilience of the enterprise

“…The issue of defining approaches to understanding the economic resilience of an enterprise, which is actively researched by foreign and domestic scientists, is characterized by multifacetedness and versatility. The tangential approach of different authors is often found, for example, in the works of O. M. Yastremska and O. O. Yastremska (2020), Sitak and Ivakhnenko (2022). Gross-Holatska et al (2020) find other aspects of the business system through which the essence of economic resilience is revealed.…”