Liquidity and solvency management of PRJSC "Concern Khlibprom" in the conditions of uncertainty
Students Name: Baranchuk Daryna Volodymyrivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Assessing the liquidity of an enterprise is a necessary step in deciding the degree of coverage of current liabilities by liquid assets of the enterprise, the possibility of additional participation in short-term liabilities without serious deterioration of liquidity [1]. Enterprises have the opportunity to manage liquidity and maintain it for a long time if they properly plan the receipt and use of liquid resources in the form of payments in the amounts and terms stipulated by the contract [2]. Economists consider solvency as the current and future ability to pay own debts, proposing to equate current solvency with liquidity [3]. In modern economic conditions, effective management of liquidity and solvency allows to increase the competitiveness and investment attractiveness of enterprises. In addition, the liquidity ratio not only characterizes the current solvency of the enterprise, but also characterizes the solvency in emergency circumstances [4]. Thus, the analysis of liquidity and solvency is an extremely important indicator for ensuring the further activities and development of the enterprise in a competitive market [5]. The object of research is the process of managing liquidity and solvency of the enterprise. The subject of the study is the theoretical and applied aspects of analyzing liquidity and solvency management in business. The purpose of the study is to study the theoretical basis for the analysis of liquidity and solvency, as well as to develop practical recommendations for improving their management. In the master’s qualification work, a study of the theoretical aspects of the basis of liquidity and solvency was carried out, an analysis of the financial condition of the business entity was carried out, and recommendations for managing the liquidity and solvency of the enterprise were formed. When writing the master’s work, the methods of analysis, grouping, systematization and generalization, analysis of the coefficients characterizing the financial condition of PJSC "Concern Khlibprom", factor analysis were used, and a multiplicative model "OCF - model" was built, which uses the method of expanding the factor systems of analysis of the efficiency of the enterprise’s cash flows. The information base of the work is the works of scientists - economists, special economic literature on the study of liquidity and solvency of the enterprise, regulatory and legislative acts of Ukraine, materials of scientific conferences, accounting data, financial and statistical reporting, general information of PJSC Concern Khlibprom for 2019-2021. The first section studies the interpretation of "liquidity" and "solvency" by different domestic and foreign scientists. The analysis of the financial condition of PJSC "Concern Khlibprom", the analysis of liquidity and solvency, as well as the factor analysis to determine the strength of the influence of factors on the coverage ratio and absolute liquidity were carried out. The second section is devoted to the identification and evaluation of internal and external factors influencing the efficiency of the functioning of PJSC "Concern Khlibprom", consolidation of data and their presentation in the form of SWOT analysis, the economic and mathematical model for assessing the effectiveness of cash flows and forecasting of current assets and current liabilities. The third section is characterized by the presentation of the developed ways to solve the identified and outlined problem areas in the previous sections. The conclusion briefly describes the main characteristics of the work performed and recommendations for improving the financial performance of PJSC "Concern Khlibprom". Keywords: liquidity, solvency, management, liquidity and solvency indicators, analysis of financial condition. List of used literary sources: 1. Khoma I.B. Financial analysis - textbook / I.B. Khoma, N.I. Andrushko, K.M. Slyusarchyk. Second edition. Lviv: Lviv Polytechnic Publishing House, 2012. - 344 p. 2. Bedrynets M.D., Dovhan L.P. Finances of enterprises [text]. textbook / M.D. Bedrynets, L.P. Dovhan. - K.: Center for Educational Literature, 2019. - 292 p. [Electronic resource] - Access mode to the resource: http://dcmaup.com.ua/assets /files/finansi-pidpriemstv-2019.pdf 3. Kotlyar M.L. Solvency and liquidity in the system of assessing the financial stability of the enterprise / M.L.Kotlyar // Economic space. - 2021. - №16. - P.192-199. 4. Davydenko N.M. Liquidity and solvency as indicators of the effectiveness of financial management of the enterprise / N.M.Davydenko // Actual problems of the economy. - 2020. - №2. - P.36-40. 5. Gorbatenko A.A. Assessment of enterprise solvency in crisis conditions / A.A. Gorbatenko // Bulletin of the Ukrainian Academy of Banking. - 2019. - № 1 (26). - С. 31-40.