DIAGNOSTICS OF THE ENTERPRISE’S FINANCIAL CONDITION DURING THE CRISIS

Abstract

The paper reveals the essence of diagnostics of the financial condition of an agricultural enterprise during crisis and stipulates the necessity for its systematic implementation. As there are a lot of companies in Ukraine facing the crisis and as a consequence go bankrupt, which in turn negatively affects the dynamics of repayment of accounts payable, it is extremely important to study the financial condition of the company, dynamics of its payables and receivables in order to find the best ways to overcome the crisis and the normalize its economic activity. The article offers economic proposals for stabilizing the economic activity of the enterprise during the crisis. The article also proposes the systematic calculation of the enterprise’s liquidity and keep to these indicators within the normal limits. In its turn, there are several levels of financial security of the enterprise: absolute (the enterprise has sufficient working capital for operation); normal (the enterprise has enough funds to buy inventory and cover costs); satisfactory (the enterprise does not have enough working capital and it resorts to medium-term or long-term liabilities); critical (the company uses long-term loans to finance its activity) and crisis (the company is unable to meet its obligations). The financial condition and financial and economic activity of the enterprise is assessed by its solvency. Solvency acts as an external sign of financial stability, the essence of which is the security of current assets by long-term sources of formation. The success of the enterprise depends on the analysis of risks of threats to the management of financial and economic security of the business entity and leveling and consolidation of efforts in times of crisis. Thus, by analyzing the financial and economic activity of the enterprise, you can determine the dynamics of changes in economic performance. Control of financial and economic security of the enterprise will allow to carry out economic activity at a normal level and in case of deterioration to predict and prevent the onset of crisis conditions that can lead to bankruptcy.