Diagnostics of financial and economic sustainability of enterprise on a cash flow basis.

Oleksandr Yankovyi
Doctor in Economics, Professor, Head of Department of Enterprise Economics and Business Organization, Odessa National Economic University, е-mail:yankovoy_a@ukr.net

Galina Koshelek
PhD in Economics, Associate Professor, Department of Enterprise Economics and Business Organization, Odessa National Economic University, е-mail:galas2811@gmail.com

Cite this article:

Yankovyi, O., Koshelek, G. (2017). Diagnostics of financial and economic sustainability of enterprise on a cash flow basis. Ed.: M. Zveryakov (ed.-in-ch.) and others [Diagnostyka finansovo-ekonomichnoi stiikosti pidpryiemstva na osnovi hroshovykh potokiv; za red.: М. I. Zveriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2-3 (63-64), pp. 69–78.

Abstract

The article considers financial and economic sustainability of enterprise from different perspectives, its types and factors that influence it. The approaches to the diagnosis of financial sustainability of the enterprise are briefly examined. The problems arising in carrying out of diagnostics of financial sustainability are determined. It is noted that it is possible to carry out the diagnostics of financial sustainability of the enterprise by means of cash flows. The study proposes to use cycles that can be characterized not only by the criteria of turnover, but also taking into account cash flows. It is proved that it is possible to conduct a diagnosis of financial sustainability using operational and financial cycles. Information provision for making the calculations is the financial statements of enterprise.

Keywords

financial sustainability; cash flows; financial cycle; operational cycle; cash flow; inflow; outflow.

JEL classification: G300;  DOI: https://doi.org/10.33987/vsed.2-3(63-64).2017.69-78

UD classification: 336.64177.18

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