Scientific research methodology for modelling the financial security of an enterprise

Abstract

The purpose of the study is to develop stages and justify the logical sequence of modelling the target level of financial security of enterprises using a system of financial indicators. In the course of the study, the methods of generalization, observation, comparison, analysis and synthesis, a systematic approach, and the method of strategic planning were applied. Results. As a result of the study, optimization conditions were formulated on the basis of the relevant ratios grouped in the following areas of financial indicators: liquidity and solvency (coverage ratio, absolute liquidity ratio, cash flow liquidity ratio); financial stability (financial independence ratio, long-term financial independence ratio, working capital maneuverability ratio); operating efficiency (return on assets, return on sales, profit reinvestment ratio); business activity (receivables/payables turnover ratio); debt burden (financial expenses to operating profit ratio); tax burden (tax burden to sales revenue ratio, tax burden to income tax ratio A system of indicators for assessing the financial security has been developed and a sequence of modeling the level of financial security of an enterprise has been determined. Conclusions. To enhance financial security and reach the desired level in the short term, it is important to consider various financial indicators such as the coverage ratio, absolute liquidity ratio, cash flow liquidity ratio, equity working capital maneuverability ratio, return on assets, return on sales, and the receivables/payables turnover ratio. Additionally, recommendations for modeling financial security should take into account indicators related to net profit, equity, and cash flows.