Financial Ratios as Indicators for Identification of Financial Risks of Industrial Enterprises
The article is aimed at exploring the possibilities of using ratios of assessment of the financial condition of industrial enterprises as indicators of the probability of occurrence of financial risks to eliminate threats of financial losses and bankruptcy in a timely manner. As a result of the stud...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2020-02-01
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| Series: | Bìznes Inform |
| Subjects: | |
| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2020-2_0-pages-413_421.pdf |
| Summary: | The article is aimed at exploring the possibilities of using ratios of assessment of the financial condition of industrial enterprises as indicators of the probability of occurrence of financial risks to eliminate threats of financial losses and bankruptcy in a timely manner. As a result of the study, the need to use financial ratios as indicators for identification of financial risks of industrial enterprises is substantiated, with developing a step-by-step process of using these ratios. It is proved that the management of financial risks of industrial enterprises is most efficient in the context of defining the root causes of their occurrence, which requires a preliminary analysis of financial ratios, the nature or mechanism of influence on them of certain factors, assessment of the dynamics of deviations of their values from the regular or planned ones. It is determined that in order to eliminate risks that cause significant financial losses, can lead to loss of capital and even bankruptcy of an industrial enterprise, it is necessary to constantly monitor the deviations of financial ratios and timely develop and introduce preventive measures to counteract their occurrence. Prospects for further research in this direction are the development of anti-risk measures aimed at counteracting the negative impact of financial risks and determining their impact on the value of an industrial enterprise, which will ensure the applied nature of scientific research. |
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| ISSN: | 2222-4459 2311-116X |