UDC [658:621]:658.14/.17, JEL G32,L64
Chubka, O. M. (2016). Finansova stiykist' mashynobudivnykh pidpryyemstv: ponyattya ta otsinka [The financial stability of machine building enterprises: concept and evaluation]. Rehional'na ekonomika - Regional Economy, 80(2), 198-205. [in Ukrainian].

Authors

Resume

There is no common approach to the concept of financial stability and determination of financial stability types in the economic literature and regulations. The purpose of this research is to generalize the theoretical foundations of financial stability and performance evaluation, and to analyse financial stability of machine building enterprises of Lviv region.
Taking into account the interpretations of scientists about the financial stability, they can be divided into two groups: the definition in the narrow sense (concept of financial stability identified with certain categories) and broad sense (stability through the interconnection of indicators). Since financial stability depends on various aspects of business, it should be viewed as a complex multifactorial concept.
The article gives characteristic of absolute and normal financial stability, crisis and unstable financial condition. Review of literature and regulations has shown that there are three most common options to determine the type of financial stability. According to the letter of the Ministry of income and fees of Ukraine from 05.06.2013 «On sending the finalized guidance» to determine the type of financial stability it is enough to calculate indicators such as the availability of working capital, availability of equity and long-term debt capital and total capital value. Scientists consider it necessary to compare these indexes with value of all stocks or just inventory ones, and based on these results to draw conclusions about the type of financial stability. The article defines the types of financial sustainability of machine-building enterprises of Lviv region in 2012-2014 by three listed options. The results determine that the type of financial stability is the same in three of the four companies analyzed by the method developed by the Ministry of income and fees and sources of funding when compared with the value of inventories.
Balance sheet items «inventories» reflects the cost of materials, which form the basis of manufactured products. Other elements of stocks (work in process, finished goods) is «derived» from inventory ones. Therefore, when determining the type of financial stability it is advisable to take into account only the inventories.
The study revealed the relationship between the value of the coefficient of financial independence and the type of financial stability; increasing the share of equity strengthens the financial stability of enterprises.
The article analyzes the performance of the major machine-building companies of Lviv, the impact of internal and external factors on their financial stability. The analysis concluded the absolute financial stability of JSC «Concern-Electron», GP «Lviv Armored Plant» and JSC «Drogobych Machine-Building Plant» and breach of financial balance at JSC «Drogobych Truck Crane Plant».

Keywords:

financial stability, absolute financial stability, normal financial stability, unstable financial situation, financial crisis situation, equity, involved capital, rate of financial autonomy