Management of enterprise’s financial sustainability and improvement of its methods

  • Received January 19, 2018;
    Accepted April 20, 2018;
    Published May 8, 2018
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  • Article Info
    Volume 2 2018, Issue #1, pp. 1-14
  • Cited by
    2 articles

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

The article is dedicated to the solution of the relevant issue, concerning management of enterprise`s financial sustainability. Financial sustainability assessment is one of the most important principles of enterprise`s activity, which provides information about financial capabilities of the company at the time of its evaluation and for the future. It is a requirement for the enterprise activity, which provides a high level of competitiveness, efficiency and intensity. Thus, the restoration and strengthening of financial sustainability is a priority task for the enterprise, a basic precondition for its effective functioning. The purpose of the research is to analyze financial sustainability and to improve the methods and approaches of its evaluation. The following methods were used in this research: financial and economic analysis, economic and mathematical modeling, analysis and synthesis, comparison. The main results of the study are following: the theoretical and essential characteristics of enterprise financial sustainability has been determined; the financial status of PJSC “Turboatom” has been analyzed; the taxonomic index of financial sustainability has been calculated and the forecast of its significance has been made, the approaches to increase enterprise financial sustainability have been proposed.

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    • Figure 1. The actual and predictive values of taxonomic index of financial stability of the PJSC “Turboatom”
    • Table 1. General indicators of activity of the PJSC “Turboatom” in 2013–2015
    • Table 2. Three-dimensional index of financial stability of the PJSC “Turboatom”
    • Table 3. Calculations of relative indicators of financial state of the PJSC “Turboatom”
    • Table 4. The process of calculating of the taxonomic index of financial stability
    • Table 5. Conditional distribution by periods of integral index of financial stability of the PJSC “Turboatom”
    • Table 6. Results of constructing an exponential trend model
    • Table 7. Results of construction of the indicator function of the trend
    • Table 8. Results of trend building on the basis of the second-grade polynomial
    • Table 9. Results of calculation of theoretical values and errors on the function of the polynomial
    • Table 10. Characteristics of used trend models
    • Table 11. Graphs of the Forecast of Financial Stability for Different Trend Models
    • Table 12. Predictive values of taxonomic index of financial stability of the PJSC “Turboatom”