FINANCIAL STABILITY OF AN ENTERPRISE: CONCEPTUAL FRAMEWORK AND ASSESSMENT METHODOLOGY

Abstract

The article is devoted to the study of the essence of the concept of «financial stability» and the development of practical recommendations for designing a scoring model to assess financial stability. It has been established that there are three key approaches to interpreting the concept of financial stability: viewing financial stability as a certain state of an enterprise in which a rational ratio of financial resources is achieved; as a state of equilibrium of the enterprise and its ability to return to this state after disturbances; and as a state in which the enterprise ensures stable functioning and potential for further growth. The characteristic features of financial stability have been identified as follows: it is a state of financial equilibrium of the enterprise, which involves maintaining solvency, profitability, and investment attractiveness; an enterprise with an appropriate level of financial stability is capable of withstanding the influence of unfavorable external and internal factors and returning to stable operations; financial stability is a necessary condition for supporting current operational activities and strategic development. The tools for achieving it include capital optimization, effective management of financial flows, profitability, and flexible use of resources. A new definition of the concept of «financial stability» is proposed: a financial condition of an enterprise in which, through proper resource management, the impact of adverse factors is minimized and conditions are created for stable operations and further growth. It has been established that the existing methods for diagnosing the financial stability of enterprises do not fully account for the impact of external and internal factors on its level. It is proposed to use a scoring model, which involves several stages: applying a point-based methodology to analyze internal and external factors affecting financial stability indicators; developing a two-level evaluation model; assigning a financial stability class; identifying the type of dependency of financial stability on a specific factor; and determining the overall level of financial stability of the enterprise using a matrix approach. It has been determined that the advantage of using a scoring model to assess financial stability lies in its ability to consider the influence of external conditions on the financial state of the enterprise, as well as to identify the causes of decreased financial stability.