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Abstract
Introduction. The relevance of the research topic is that financial stability is the basis for long-term sustainability and development of the organization. Good economic performance significantly increases confidence in the organization and facilitates access to capital. Companies with high financial stability can effectively face competitors as they can invest in innovation, development of new products, and expansion of business operations. The article analyzes the factors that affect a business organization’s financial stability and efficiency. Materials and Methods. The materials of the present study were articles from periodicals. Comparative, general scientific, and factor analysis were used as research methods in the complex approach to the study of reporting data. Results of the study. Compared to solvency assessed about current assets and long-term liabilities of the organization, financial well-being is determined based on the relationship between different types of monetary sources and compliance with their composition. The ability of the enterprise to make timely payments and finance its activities on an extended basis indicates its stable financial condition. The study of financial stability of organizations offers a broad perspective in conjunction with new technologies, social factors and changing economic conditions, making it critical to the future of business. Conclusion. The system of fundamental indicators characterizing the financial condition of an economic entity includes the following: indicators of liquidity and solvency; indicators of financial stability; indicators of funds turnover; indicators of profitability of the enterprise; indicators of composition and dynamics of financial results; indicators of changes in the sources of equity capital; indicators of analysis and cash flow.
Suggested Citation
Natalia P. Dolotova, 2023.
"The main factors affecting the financial stability and efficiency of a commercial organization,"
Economic Consultant, Scientific and Educational Initiative LLC, vol. 4(1), pages 27-38.
Handle:
RePEc:ris:statec:0123
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JEL classification:
- M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
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