DOI: https://doi.org/10.33994/kndise.2019.64.71

O. Kandyral

The article analyzes the issues and problems of conducting an economic analysis in order to determine the actual financial condition of enterprises and prevent the possibility of bankruptcy.

An assessment of the importance of timely diagnosis of the actual financial condition of an enterprise and of an economic analysis of the financial prerequisites of a possible bankruptcy of an enterprise under current market conditions is made. Also the concept of “bankruptcy” and “insolvency” of the enterprise in accordance with the current legislation of Ukraine are described.

As world practice shows, bankruptcy of an enterprise is not an accidental phenomenon, but a consistent pattern which can be detected and eliminated in a timely manner. The most common methodological approach to diagnosing the state and the threat of bankruptcy is the coefficient approach which involves the use of a list of special financial ratios-indicators of an enterprise — relative indicators calculated by comparing certain absolute measures of economic activity with one another.

The author reviewed the classical models of economic express analysis of the financial condition of the company to identify possible bankruptcy, developed by American scientists, economists William Beaver and Edward Altman. Depending on the values of indicators of these models, an assessment was made of the degree of proximity of a business entity to bankruptcy. Advantages and disadvantages of using these models in practice in the conditions of a modern market economy taking into account the specifics of the financial situation in Ukraine are described and analyzed.

According to the results of the study, a list of measures for the exit of enterprises that are at risk of possible bankruptcy from the current unfavorable situations has been proposed. The author also concluded that further scientific developments on this topic are necessary and will be of interest both among scientists and among the participants of financial and economic relations.

Key words: economic analysis, test method, enterprise, financial condition