EDN: QBJPMH
Authors:
SHNEIDER Viktor Viktorovich, SHUMILOVA Irina Vladimirovna
Abstract.
The financial stability of the company is one of the main conditions for life, development and maintaining a high level of competitiveness. Many companies in the domestic market are financially unstable due to difficult and ever-changing economic conditions. It is also worth noting that investors do not have reliable information about the stability of the financial position of the company, and, accordingly, the volume of investments in such companies is falling. At the same time, startups often fail in the first year of their existence, which hinders business development. The political and economic crisis generated by the Covid19 pandemic and the recent tense global situation have taken the issue of the financial stability of a single company to a new level and determined the importance of analyzing and assessing the level of financial stability of any company. Based on these provisions, at the moment it is important for Russian companies to maintain and strengthen the degree of financial stability that developed during the crisis period. This approach is reinforced by the fact that financial stability refers to the ability of a company, regardless of the scope and scale of its activities, to accelerate its economic procedures, respond flexibly to changes and control risks. In addition, financial stability is revealed through a system of indicators that characterize it, including the liquidity and solvency of the company. Liquidity is called the short-term solvency of the company. If the company has a sufficient amount of liquid assets that can be easily exchanged for cash, a high level of liquidity and solvency of the company is determined, which positively characterizes the level of financial stability. At the same time, the company's inability to meet its short-term obligations provokes liquidity risk. Insufficient liquidity can provoke a shortage of cash, which is necessary to cover obligations and reduce risks. Insufficient liquidity can lead the company to liquidity insolvency, deprived of capital insolvency status. Consequently, companies face liquidity risk when they are unable to meet their expected and contingent cash needs and borrow more when needed. From this we can conclude that the creation of liquidity strengthens the stability of the company and minimizes the risk of liquidity, which has a negative impact on the financial stability of this company.
Keywords:
analysis, company, crisis, liquidity, solvency, financial stability, economic procedures
