Use of the Indicator of the Period of Outstanding Current Liabilities when Diagnosing Crisis at Mining and Smelting Enterprises
AbstractThe article substantiates methodical approaches to the use of the indicator of the period of outstanding current liabilities when diagnosing crisis at domestic mining and smelting enterprises. It reveals that these enterprises are the most vulnerable in the world financial and economic crisis, during the period of which production volumes dropped in physical terms, but increased together with sales in money terms, which was achieved by means of increase of prices and dollar rate. It states that one of the key tasks in solving the problems resulting from current company management is a necessity of permanent control over the level of current liabilities, the source of repayment of which, in majority of cases, is the proceeds from products sales. In this connection it offers to use, in addition to other indicators of diagnostics, the period of outstanding current liabilities, which is calculated using relation of current liabilities to the volume of sales of products in money terms, multiplied by 365 days. It offers to identify its lowest value, which would characterise the period during which an enterprise could suspend repayment of current liabilities without the risk of deteriorating the financial state down to the crisis level. It calculates and analyses factual values of the indicator at a number of mining and smelting enterprises of Ukraine for the period 2002 - 2011. It states that it is more expedient to use different values for different groups of enterprises as boundary values. It also offers to set the upper limit value of the period of outstanding current liabilities at the level of 1 year. It states that when this value is exceeded, the financial state of an enterprise is characterised as a critical situation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics in its journal Business Inform.
Volume (Year): (2013)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.business-inform.net
period; outstanding; current liabilities; crisis; diagnostics;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Rystenko).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.