Modelling and Information Support for Assessing the Potential for Increasing the Financial Stability of Enterprises

Currently, there is a need to improve the methodological bases of modeling the process of assessing the potential of increasing the financial stability of enterprises, as well as the need to improve the information support of the process of such an assessment. Solving the specified tasks with subsequent testing of the results obtained by a sample of enterprises is the primary goal of this study. It was established that the potential for increasing the financial stability of the enterprise contains three components: the potential for increasing the amount of available income, which the enterprise can use to repay the loans and to pay interest, the potential for reducing the amount of loan capital, and the potential for increasing the degree of flexibility of the enterprise. The sequence of evaluating the potential for increasing the financial stability of the enterprise is proposed. An array of information is defined, based on which the potential for increasing the financial stability of the enterprise is estimated. Interrelationships between blocks of information have been established, based on which the current level of the financial stability of the enterprise and the potential for its improvement are assessed. A sample of one hundred enterprises in the western region of Ukraine was formed to test the developed principles of modeling and information provision to assess the potential of increasing the financial stability of enterprises. It turned out that an insufficient level of financial stability characterized most of the studied enterprises. In particular, the share of enterprises engaged in wholesale, in which the level of financial stability was low and very low, was 28% and 24%, respectively. The share of enterprises in the food industry, in which the level of financial stability was low and very low, was 22% and 18%, respectively. At the same time, the following general trend can be observed for enterprises of both types of economic activity: with an increase in the profitability of total capital and a decrease in the share of loan capital, the level of financial stability of companies increases. The value of the potential for increasing the financial stability of the studied enterprises was also calculated. The main ways of realizing this potential have been determined. In particular, based on the results of the empirical analysis, the importance of information provision in the process of assessing the potential for increasing the financial stability of the enterprise was established.