The Approaches to Estimation of Financial Potential of Enterprise

• Main Authors: Nesterova Svitlana V., Kovalchuk Irina Ye., Martyn Valeriia V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2018-10-01
• Series: Bìznes Inform
• Subjects: financial potential; resource approach; financial resources of enterprise; estimation of financial potential; coefficient analysis
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2018-10_0-pages-267_272.pdf

The article highlights the approaches to explaining the essence of financial potential of enterprise and considers the individual methods of its estimation. It has been determined that the most common is the resource approach, according to which the financial potential of enterprise is determined by the presence of its own financial resources, as well as the possibility of attracting along with an efficient management of such resources. The authors analyze the methods of estimation of financial potential, proposed by another researchers, most of which are based on the use of classical indices of coefficient analysis of the financial status of enterprise (liquidity, solvency, resilience, turnover, profitability), but with a focus on ensuring the sufficiency of their values in the future. A number of methods are based on the calculation of an integral indicator, which takes into account additional parameters indicating the ability of enterprise to generate financial resources. The factors that determine the level of financial potential and the indicators that provide to estimate the level of financial stability together with the ability of enterprise to maintain the degree of cover with financial resources are systematized.