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METHODS FOR ASSESSING SOLVENCY IN THE FINANCIAL DIAGNOSTICS SYSTEM OF AN ECONOMIC ENTITY |
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| รหัสดีโอไอ | |
| Creator | Natalia N. Karzaeva, Ekaterina A. Karzaeva |
| Title | METHODS FOR ASSESSING SOLVENCY IN THE FINANCIAL DIAGNOSTICS SYSTEM OF AN ECONOMIC ENTITY |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2562 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 10 |
| Journal No. | 19 |
| Page no. | 10A19I: 1-13 |
| Keyword | Solvency ratio, Future periods, Planning, Cash flows, Deferral of payment, Beaver Ratio. |
| URL Website | http://tuengr.com/Vol10_19.html |
| Website title | ITJEMAST V10(19) 2019 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | The paper substantiates the need to assess the solvency of an enterprise not in the past, but in the future. The authors substantiate the limited applicability of solvency ratios proposed by other scientists and specialists, as well as the usability of those indicators for future periods. The authors' conclusions are based on the results of studying by them the possibilities of ratio analysis to assess the solvency margin of an economic entity. The paper discloses an approach to building a model for assessing the solvency of a company in a future period; this approach is based on a comparison of predicted cash flows. The authors adhere to the approach based only on cash flows (monetary approach) to assess the solvency of a company in the future. To build cash flows, it is proposed to apply the schemes for the transformation of receivables and payables into cash, taking into account the periods of deferrals provided by the agreements and the risks of default by debtors. The authors have compiled a list of factors that influence the formation of cash flows. The paper presents the procedure for constructing a model for assessing solvency, taking into account factors that influence it. The authors also proposed a model for the conversion of receivables and payables into cash through a deferral indicator. The paper demonstrates the possibility of using the predictive solvency model by both internal and external stakeholders. |
