Methods of improving the financial condition of PJSC "Concern Khlibprom"
Students Name: Hamalii Marta Tarasivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2020-2021 н.р.
Language of Defence: ukrainian
Abstract: Hamaliy M.T. Bondarchuk M.K (Head) Methods of improving the financial condition of PrJSC «Concern Khlibprom». - Lviv Polytechnic National University, Lviv 2020. Extended annotation. In the master’s thesis the efficiency of financial condition management of the enterprise is investigated on the example of PrJSC «Concern Khlibprom» in 2017-2019. The master’s thesis contains three sections. The first section of the master’s thesis discusses the theoretical aspects of managing the financial condition of the company. Summing up the publications on this topic, we can say that financial condition is a systemic concept that reflects the overall result of production and economic activities of the company in the form of positive results, as well as the end result in the form of net profit [3; 4, p.686]. To assess and analyze the financial condition of PrJSC «Concern Khlibprom», a horizontal, vertical and ratio analysis of financial reporting forms was conducted. For this purpose, the balance sheet (statement of financial position) and statement of financial performance (statement of comprehensive income) of PrJSC Concern Khlibprom for 2017-2019 were used. In 2019, compared to previous years, the financial performance of PrJSC «Concern Khlibprom» improved. First of all, this company has achieved a positive financial result from operating activities, which indicates the effective core business of the company. However, due to inefficient financial activities, ie high financial and other costs, the company received a negative pre-tax financial result. Assessing the net financial result, it should be noted that over the past 3 years there has been a positive trend to reduce the amount of losses. This section also contains the results of the analysis of the financial condition of PrJSC «Concern Khlibprom» in key areas and ratios, such as profitability, business activity, liquidity, financial stability and property status of the company. The second section of the thesis is research and prognostic in order to identify the main trends. Namely, the analysis of the impact of the external and internal environment on the company’s activities, the opportunities offered to the company, and the threats associated with these opportunities. On this basis, the strengths and weaknesses of PrJSC «Concern Khlibprom»are analyzed, as well as the main ways of further strategic development of the company are identified. In the next subsection of this section, economic and mathematical modeling of the impact of financial indicators on the financial condition of the company to determine the integrated indicator of financial condition and dominant indicators. At the end of the second section, net profit forecasting was performed using trend analysis. The results of the forecast confirm the positive trend, which indicates an increase in the efficiency of PrJSC «Concern Khlibprom» in general. The third section of the master’s thesis contains proposals to increase profitability and improve the financial condition of the company, namely: 1) increasing the profitability of the enterprise on the basis of increasing the volume of production of innovative products; 2) liberalization of the company’s credit policy; 3) determination of methods for optimizing the level of administrative costs and marketing costs. The liberalization of credit policy will reduce the amount of receivables and current liabilities. Increasing the company’s profitability by increasing the production of innovative products will eventually lead to increased profits from sales [3]. Therefore, with an increase in net income by 5%, gross profit will increase by 13.71%, and marginal income - by 16.990%. Optimizing the level of administrative costs and marketing costs will improve and increase such important indicators as the financial result of operating activities and, consequently, net profit . Taking into account the calculations, an increase in operating profit by 14.35% is expected [1, p.468]. These costs will also affect the break-even point of production, in particular, increase the margin of financial strength. The object of the master’s qualification work is the financial condition of PrJSC «Concern Khlibprom» for 2017-2019. The subject of research in the work is the process of managing the financial condition of the enterprise. The purpose of the master’s qualification work is to study the theoretical and practical aspects of assessing and managing financial condition, as well as developing methods to improve it. Based on the goal, the main results of writing this thesis are: characteristics of the concept and essence of the financial condition of the company; analysis of the balance sheet and report on the financial results of the enterprise; determination of strategic directions of enterprise development; implementation of economic and mathematical modeling of indicators of impact on the financial condition of the enterprise; formation of recommendations for improving profitability at the enterprise; determination of methods for optimizing the level of administrative costs and marketing costs; determination of economic results of design decisions. Key words: financial condition, financial reporting, profitability, methods of improving performance. List of used literature 1. Bondarchuk M.K. Theoretical and Methodical Approaches to the Estimation of the Income of the United Territorial Communities/ Dzhuryk Kh.B., Bondarchuk M.K., Gonchar O.I.// Advances in Economics, Business and Management Research, 6th International Conference on Strategies, Models and Technologies of Economic Systems Management (SMTESM 2019), Volume 95, Pages 467-469 URL:http://creativecommons.org/licenses/by-nc/4.0/).DOI: 10.2991/smtesm-19.2019.90 2. Bondarchuk Mariia K., Druhov Oleksiy O., Voloshyn О. P. (2017). Research on the problemmatics of anti-crisis innovations financing in business structures. financial and credit activity: problems of theory and practice. Vol 2, No 23 Web of Science. ISSN (print) 2306-4994, ISSN (on-line) 2310-8770. 3. Didukh O. V. Management of outsourcing risks in the process of enterprise financial activity/Didukh O. V., Partyn H.O. Zaderetska R.I.// Financial and credit activity: problems of theory and practice. – № 23 (2017) 4. Savitska H.V. (2019) Enterprise Finance Management: Collection of Scientific Papers "Young Scientist", 11 (38), 685-688.