International Journal of Management and Economics Fundamental
18
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue 06 2025
PAGE NO.
18-21
10.37547/ijmef/Volume05Issue06-05
Indicators of The Analysis of The Financial Condition of
The Enterprise
Ismailova Maxbuba Mirxalilovna
Indicators of the analysis of the financial condition of the enterprise, Uzbekistan
Received:
10 April 2025;
Accepted:
06 May 2025;
Published:
08 June 2025
Abstract:
The article examines the theoretical aspects of analyzing the financial condition of an enterprise, namely
the concept, essence and indicators of analyzing the financial condition of an enterprise. Various research
methods have been used, and a lot of literature has been studied in the field of the research topic. The theoretical
significance of the research lies in the systematization of approaches to the disclosure of the economic content of
the concept of “financial condition”, as well as in the theoretical analysis of methods for analyzing the financial
condition of an enterprise.
Keywords:
Financial statements, financial condition, liquidity, solvency, profitability, financial stability, business
activity, bankruptcy.
Introduction:
In the process of implementing financial
and economic activities, the enterprise pursues the
goal of extracting maximum profit, as well as improving
its financial indicators. However, the final financial
result and the efficiency of the enterprise are
influenced by numerous factors, therefore, conducting
an analysis of the financial condition of the enterprise
is relevant today.
Thanks to the conducted analysis of the financial
condition of the enterprise, it is possible to determine
important criteria, such as such as the level of liquidity
and solvency, profitability and financial stability and
other criteria.
Analysis of literature
Financial condition of the enterprise is the link between
accounting and management decision-making. Today,
there are many definitions of the term under study. The
financial condition of an enterprise is a category that
reflects the state of capital in the process of its
circulation and the ability of the enterprise to self-
development at a fixed point in time, i.e. the
availability, placement and effective use of financial
resources.
N.V. Kireeva says that: “Analysis of the financial
condition of an enterprise is a process by which the past
and present financial position of an enterprise, the
results of its activities and possible development
prospects of the organization are assessed” [1, p. 138].
L.M. Kupriyanova gives the following definition:
“Financial condition is a complex concept that
is
characterized by a system of indicators reflecting the
availability, placement and use of financial resources of
an enterprise; it is a characteristic of its financial
competitiveness (i.e. solvency and creditworthiness),
fulfillment of obligations to the state and other
economic entities” [2, p. 95].
By in the opinion of G.V. Savitskaya: “Financial analysis
is a system of specialized knowledge associated with
the study of economic processes and phenomena in
their interrelationships, developing under the influence
of objective and subjective factors, it is one of the most
important tools for obtaining
information needed for making management
decisions” [3, p. 193].
Yu.G. Chernysheva states that: “Financial analysis this
is an objectively necessary element of enterprise
management, with the help of which the essence of
business processes is determined, the financial
situation is assessed, production reserves are identified
and decisions are made for planning and management”
[4, p. 317].
V.G. Slagoda states: “Financial analysis
- this is a
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
scientific way of understanding the essence of
economic phenomena and processes, based on
dividing them into their constituent parts and studying
them in all the diversity of connections and
dependencies” [5, p. 116].
RESULTS
The main objectives of the analysis of the financial
condition of the enterprise are presented in Figure 1.
Figure 1. The main tasks of the analysis of the financial condition of the enterprise.
As a result of studying many terms, one can come to
the conclusion: “the purp
ose of conducting an analysis
of the financial condition of an enterprise is to identify
reserves for improving activities and increasing
solvency and financial stability, as well as eliminating
violations and deficiencies identified during the
analysis.”
Analysis of the financial condition of the enterprise
reveals the economic potential and the level of
solvency and financial stability, reflects the degree of
security of financial relationships with partners and
future investors.
The analysis of the financial condition of the enterprise
is carried out based on the data of the financial
statements for the research period, the sequence of
analysis of which is presented in Figure 2.
Figure 2. Sequence of analysis of financial statements of the enterprise.
T
as
k
sa
na
lysi
s of the
fina
nc
ial c
ondit
ion of the
e
nt
erpr
ise
Systematic control for the formation of financial results
Grade the influence of objective and subjective factors
on financial results
Grade the influence of external and internal factors on
financial results
Identification of the magnitude profit and profitability
levels
Forecasting the amount of profit and the level of
profitability
Development of directionsby identified reserves
Analysis of financial
statements
Results and conclusions
Positive
Negative
Making a decision
Financial forecasting
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Analysis of the financial condition of the enterprise
makes it possible to assess the level of capital
adequacy, property status, the need for additional
sources of financing, the degree of entrepreneurial risk,
the rationality of using and attracting borrowed funds,
the use of profits, etc.
Both owners and creditors and investors may be
interested in conducting an analysis of the financial
condition of an enterprise. Based on the analysis
conducted, management and investment decisions are
made.
Analysis of the financial condition of the enterprise
includes the calculation of the following indicators,
presented in Figure 3.
Figure 3. Indicators of the analysis of the financial condition of the enterprise.
Liquidity
ratios
reflect
sales
efficiency
and
transformation into monetary material assets of the
enterprise, the main indicators of which include the
coefficients of quick, current and absolute liquidity.
Solvency indicators reflect the ability of an enterprise
to fulfill its existing obligations in a timely manner. The
main indicators of which include the coefficient of
recovery and loss of solvency, and the maneuverability
of operating capital.
Financial stability indicators reflect the level of solvency
of the enterprise and the financial condition as a whole,
the main indicators of which include the coefficients of
financial stability, financial independence and
dependence, concentration of equity and borrowed
capital.
Business indicators activities reflect the effectiveness
of the enterprise’s promotion in the sales market, labor
and financial activities, the main indicators of which
include the coefficients of asset turnover, accounts
receivable and accounts payable, and equity capital.
To identify the financial condition of the enterprise.
During the analysis process, an additional assessment
of the probability of bankruptcy is carried out.
The most popular method of assessing bankruptcy is
the model developed by Altman, the two-factor model
is presented below (formulas1-3):
Z = 1.073F1 + 0.0579F2 − 0.3877
(1)
Where, Z is the probability of bankruptcy according to
the Altman method;
F1
–
current liquidity;
F2
–
capitalization ratio.
𝐹1 =
𝐶𝐴
𝑆𝑇𝐿
where C
А
–
current assets;
STL- short-term liabilities.
𝐹2 =
𝐿𝑇𝐿
𝐸𝐶
Where, LTL is long-term liabilities;
EC
–
equity capital.
Evaluation criteria probability of bankruptcy: Z > 0
probability of bankruptcy less than 50%;
Z = 0 situation is critical;
Z < 0 the probability of bankruptcy is more than 50%.
The purpose of conducting an analysis of the financial
condition of an enterprise is to identify reserves for
improving its activities and increasing solvency and
financial stability, as well as eliminating the violations
and deficiencies identified during the analysis.
The analysis of the financial condition of the enterprise
is carried out based on the accounting (financial)
In
d
ic
at
o
rs
a
na
lysi
s of the
fina
nc
ial
condit
ion of the
e
nter
pris
e
Liquidity
Solvency
Profitability
Financial stability
Business activity
Bankruptcy
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
reporting data for the research period.
Both owners and creditors and investors may be
interested in conducting an analysis of the financial
condition of an enterprise; management and
investment decisions are made on the basis of the
analysis conducted.
CONCLUSION
Analysis of the financial condition of the enterprise
includes the calculation of the following key indicators:
liquidity, solvency, profitability, financial stability,
business activity. To identify the financial condition of
the enterprise, an additional assessment of the
probability of bankruptcy is carried out during the
analysis. The most popular method for assessing
bankruptcy is the two-factor model developed by
Altman.
REFERENCES
Kireeva, N. V. Economic and financial analysis: a tutorial
/ N. V. Kireeva. - Moscow: INFRA-M, 2020. - 293 p. -
(Higher education: Bachelor’s degree).
- ISBN 978-5-16-
006267-9.
-
Text:
electronic.-
URL:
https://znanium.com/catalog/product/
Kupriyanova, L.M. Financial analysis: textbook / L.M.
Kupriyanova.
—
Moscow: INFRA-M, 2021.
—
157 p. +
Add. materials [Electronic resource].
—
(Higher
education: Bachelor's degree).
—
DOI 10.12737/6242.
- ISBN 978-5-16-016300-0. - Text: electronic. - URL:
https://znanium.com/catalog/product/1655068
Savitskaya, G. V. Analysis of the efficiency and risks of
entrepreneurial activity: methodological aspects:
monograph / G. V. Savitskaya. - 2nd ed., revised. and
additional. - Moscow: INFRA-M, 2022. - 291 p. -
(Scientific thought). - DOI 10.12737/23374. - ISBN 978-
5-16-012373-
Slagoda, V. G. Economics: Textbook / V. G. Slagoda. -
4th ed., revised and enlarged. - M .: Forum, 2019 .- 240
p .: - (Professional education). - ISBN 978-5-91134-924-
0.
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Text:
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URL:
https://znanium.com/catalog/product/1013422
Chernysheva, Yu. G. Analysis and diagnostics of
financial and economic activity of the enterprise
(organization): textbook / Yu. G. Chernysheva. -
Moscow: INFRA-M, 2022. - 421 p. + Additional
materials [Electronic resource]. - (Higher education:
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