Mechanism of the financial state improving at LLC "Torhovyi Dim "Sofia"
Students Name: Lazorko Roman Stepanovych
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2021-2022 н.р.
Language of Defence: ukrainian
Abstract: Determining and assessing the financial and economic condition of the enterprise is quite relevant for any business entity in Ukraine. In modern conditions, the independence of enterprises, their economic and legal responsibility is growing. The processes of market transformation have attracted significant attention to the study of theoretical and practical problems of further development and improving the efficiency of enterprises in both public and private sectors of Ukraine’s economy. Analysis of financial and economic condition is an important component of effective management of the formation, location and use of enterprise resources. Financial condition is determined by the size, composition and structure of assets, equity and liabilities, certain ratios of which determine the financial stability, liquidity and solvency of economic entities. The first section analyzed the theoretical aspects of determining and assessing the financial condition of the enterprise, assessed the financial condition of LLC «Torhovyi Dim «Sofia» and indicators of financial and economic activity. According to the results of the analysis of the financial condition of LLC «Torhovyi Dim «Sofia» for 2018-2020, the following conclusions can be drawn: during the analyzed period we see a positive growth of the balance sheet currency, mainly due to increased inventories and other current receivables. The balance sheet asset consists only of current assets. The analysis of the capital structure of the enterprise showed that it consists of equity and current liabilities and provisions, and throughout the analyzed period, equity increases due to the growth of retained earnings. Analyzing the report on the financial results of LLC «Torhovyi Dim «Sofia» for 2018-2020, it was found that in 2020 compared to 2018 the amount of net income decreased by 39%. The company has no other income. The total costs of the enterprise, which include the cost of goods sold and other operating expenses, are reduced by 893.1 thousand UAH. in 2020 compared to 2018, ie by 39.12%. LLC «Torhovyi Dim «Sofia» is profitable, net profit in 2018 amounted to UAH 22.5 thousand, in 2019 it decreased to UAH 19.9 thousand, and in 2020 to another UAH 15.5 thousand. The results of the analysis of financial indicators of LLC «Torhovyi Dim «Sofia» for 2018-2020 allow us to conclude that the financial condition of LLC «Torhovyi Dim «Sofia» during the whole period is unsatisfactory. Given the current liquidity ratio, we can say that the company is facing a liquidity crisis. We believe that the reason for this is the excessive size of stocks with a minimum amount of cash and cash equivalents. In order to avoid bad consequences for the company, it is necessary to work on improving the policy of formation of inventories. In addition, as it turned out, the company is financially unstable, its borrowed funds far outweigh its own and it depends on loan sources, is unprofitable. However, for 2018-2020. the company increased the turnover of its production and economic activities, as evidenced by the increase in the value of the balance sheet currency, it managed to slightly increase the net income from sales and make a small profit. In the second section, a SWOT-analysis of the activities of LLC «Torhovyi Dim «Sofia» was performed, an economic-mathematical model was proposed, which allows to determine the moment of delivery of a new batch of finished products of a certain quantity at random demand. equity of the company. Based on the results of the SWOT-analysis in the research and forecasting part of the work for LLC «Torhovyi Dim «Sofia», the following can be summarized: in order to improve the company’s financial condition it is necessary to optimize the structure of current assets, increase liquidity by refinancing receivables; increase the profitability of products by reducing its cost and the formation of the optimal price; to create a reliable system of financial support for the economic activity of the trade enterprise as a whole; to pursue a policy of recovery of receivables, as well as repayment of accounts payable; to cooperate with suppliers on the basis of pre-concluded agreements, due to which to be able to get a discount, ie to reduce the cost, thereby ensuring an increase in profitability; optimize supply volumes, which will allow not to freeze funds in stock. According to the results of the analysis of the financial condition of LLC «Torhovyi Dim «Sofia», it was found that it has too large stocks that accumulate in the warehouse and incur certain storage costs, which negatively affects the financial condition of the company, so we believe there is a need to improve current policy of formation of production stocks of the company. The implementation of the proposed algorithm in the practice of LLC «Torhovyi Dim «Sofia» will increase the efficiency of its financial and economic activities and will avoid mistakes in choosing the optimal inventory management policy. Forecasting the size of stocks and own capital of LLC «Torhovyi Dim «Sofia» by the methods of three-member current average and trend showed that in the I, II, III and IV quarters. In 2021, both inventories and equity are projected to increase. The implementation of the measures proposed in the recommendation part will allow LLC «Torhovyi Dim «Sofia» to optimize the balance sheet structure and improve the liquidity indicators of financial stability and business activity. Study object - the process of managing the financial condition of the enterprise. Scope of research - assessment and analysis of the financial condition of the enterprise and development of recommendations for improving the financial condition of the enterprise. Goal of research: analysis of theoretical approaches to the concept and assessment of financial condition; analysis of the financial condition of LLC «Torhovyi Dim «Sofia»; analysis of financial indicators of LLC «Torhovyi Dim «Sofia»; SWOT-analysis of the activity of LLC «Torhovyi Dim «Sofia»; economic and mathematical modeling of inventory management of LLC «Torhovyi Dim «Sofia» taking into account the uncertainty of demand; forecasting stocks and equity of LLC «Torhovyi Dim «Sofia»; development of recommendations for improving the financial condition of LLC «Torhovyi Dim «Sofia» and assessing the impact of their implementation. Key words: enterprise, financial condition, financial analysis, net income, equity, forecasting. References: 1. Kosareva I.P., Khokhlov M.P., Biryukova V.V. Research of theoretical bases of financial condition of the enterprise // Market infrastructure. - 2020. - № 19. P. 101–107. 2. 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