Management of financial results of LLC "SWISS KRONO"
Students Name: Vehera Mariana Volodymyrivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: In modern business conditions, one of the most important indicators that characterizes the efficiency of the enterprise is the financial result, ie profit or loss[1;2]. The main goal of the enterprise in the context of global economic transformations is to obtain maximum profits at minimum cost[3;4]. As a sufficient number of financial results determines the possibility of further development of the enterprise (expansion of production, renewal of its fixed assets, introduction of new advanced technologies, etc.) and creates a margin of financial stability, which allows the company to respond quickly to changes in market conditions especially relevant in the modern period of market reforms and economic transformations[5;6]. In the first section, the peculiarities of the formation and use of the financial result of the enterprise’s activity were considered, the financial condition of LLC «SWISS KRONO» was assessed and its financial results and profitability indicators were analyzed. According to the results of the analysis of the financial condition of LLC «SWISS KRONO» for 2019-2021 the following conclusions can be drawn: the currency of the balance sheet of LLC «SWISS KRONO» increased in 2020 by 11.11% and in 2021 by another 7.72%, which is positive and indicates an increase in the volume of the company’s activities. Non-current assets of LLC «SWISS KRONO» include intangible assets, unfinished capital investments, fixed assets, deferred tax assets and other non-current assets. The share of non-current assets in the total asset structure of the company’s balance sheet was: 27.51% in 2019, 26.22% in 2020 and 21.31% in 2021, i.e. gradually decreasing. The current assets of LLC «SWISS KRONO» constitute a larger share in the overall asset structure of the company’s balance sheet: 72.49% in 2019, 73.78% in 2020 and 78.69% in 2021, that is, their share is growing, respectively. Current assets include the following components: stocks, accounts receivable for goods, works, services, the lion’s share of which is the lion’s share in the overall structure of the balance sheet and amounts to 33.84% in 2021, accounts payable for issued advances and with the budget, money and their equivalents, expenses of future periods and other current assets. The calculated structure of the liabilities of LLC «SWISS KRONO» shows us that the share of equity capital in the overall structure of the liabilities of the balance sheet is quite high, namely 41.28% in 2019, 44.29% in 2020 and 40.44% in 2021, the amount of equity is growing positively, and therefore the company has a low degree of dependence on external sources of financing, namely on long-term and current liabilities. In general, the results of calculations of the main financial and economic indicators of LLC «SWISS KRONO» for 2019-2021 indicate that the company is financially unstable, its borrowed funds still outweigh its own and it is dependent on loan sources, it is profitable in 2019-2020 (in 2021 received a loss) and able to settle with creditors at the expense of debtors within one year during the entire analyzed period. In 2019 LLC «SWISS KRONO» earned a profit of UAH 7,772,000 in 2020 - it grew to 112,337 thousand hryvnias, but at the end of 2021 the company received a loss in the amount of UAH 72,684 thousand. The company’s net income increased by 30.21% in 2020 and by 13.04% in 2021 and amounted to 2,304,235 thousand hryvnias at the end of 2021. The final financial result of LLC «SWISS KRONO» was also affected by the following changes in expenses: the cost of goods sold increased by 27.09% in 2020 and by 11.6% in 2021 and amounts to 1,761,550 thousand hryvnias; the fastest negative increase in other operating expenses by 46.77% in 2021 compared to 2019 and amount to 150,734 thousand hryvnias; other expenses increased very sharply by 178.87% in 2021 compared to 2019 and amount to 106,534 thousand hryvnias. According to the results of the calculation of profitability ratios, it was found that all the studied indicators in 2020 increased positively and had quite high values, but in 2021 LLC «SWISS KRONO» received a loss, accordingly, all analyzed profitability indicators have negative values, except for profitability of sold products and profitability of sold products by profit from operating activities. In general, the conducted study of the main financial and economic indicators of LLC «SWISS KRONO» for 2018-2020 showed that the financial condition of LLC «SWISS KRONO» was the best in 2019. The SWOT analysis conducted in the second section of the work allows us to conclude that in order to improve the financial condition of LLC «SWISS KRONO», it is necessary to enter new foreign markets and increase the volume of production with the help of automation of production processes; master new types of production and technologies; achieve the optimal ratio between own and borrowed funds, assets and sources of their financing; to expand the range of products of LLC «SWISS KRONO», which is made from domestic raw materials, which will make it possible to reduce the cost of production and obtain a higher profit. In addition, increase the amount of capital invested in new tools and equipment; to develop successful PR events and ways of popularizing the powerful manufacturer of laminated chipboards and countertops LLC «SWISS KRONO». In the research and forecasting part of the work, an economic-mathematical model of the formation of the net profit of LLC «SWISS KRONO» was also built and the indicators of the cost of goods sold and the net profit (loss) of LLC «SWISS KRONO» for the year 2022 were predicted. On the basis of economic and mathematical modeling, it can be concluded that the quality of management has the most significant impact on the net profit of the enterprise. Summarizing the results of the implementation of the proposed measures in the recommendation part, it can be concluded that the recommended measures will have a positive effect on the financial results and indicators of its financial condition. The first recommended measure is to assess the impact of the operating leverage effect on the company’s performance. The second recommended measure offered by LLC «SWISS KRONO» is the introduction of a filtration unit in the form of a bunker filter NFHSU of the «Nestro company» into its production process, which will allow it to be optimized and significantly save electricity costs. Savings in electricity costs from the introduction of a filtration plant into the production process is expected to reduce the cost of goods sold by 18% and other operating costs by 27% and, as a result, to obtain a pre-tax profit of UAH 305,100,000. and net profit in the amount of UAH 250,182,000, and, accordingly, significantly improve the company’s profitability indicators. Key words: enterprise, financial results, profit, management. 1. Voinarenko M. P. Management of financial results of industrial enterprises: monograph / M. P. Voinarenko, R. V. Skalyuk. - Vinnytsia: Edelweiss and K, 2018. - 188 p. 2. Financial result of the enterprise: economic essence, peculiarities of definition and analysis / O. M. Vakulchyk, E. V. Protasova, A. A. Nechaeva // Business navigator. – 2020. – Issue 1. - P. 172-178. 3. Financial results of enterprises and their use in management / L.O. Marmul // Economic Bulletin of the University. – 2019. – Issue 39. - pp. 154-161. 4. The effectiveness of financial results management: a monograph / L.V. Frolova, L.V. Semerun. - Donetsk: Publishing House «Knowledge», 2019. - 187 p. 5. Ways of improving the accounting of financial results of the enterprise / Yu. O. Kostenko // Problems and prospects of the development of entrepreneurship. – 2019. – No. 3(2). – P. 103-109. 6. Fetsovych T.R. Formation of financial results of enterprises / T.R. Fetsovych // Bulletin of the Lviv Commercial Academy. – 2021. – No. 36. – P. 405–410