Financial diagnosis of enterprise

Economic diagnosis, as well as economic analysis in their research,is based on systemic analysis. Its use in diagnosing involves the study of phenomena and processes in motion, development, modification,suggests the determination of their positive and negative aspects, identification and study of the cause-effect relationships. On thebasis of structural analysis a method of financial diagnosis is created, which provides an opportunity for a decision maker to investigatethe balance of financial factors and to identify ways to restore financial equilibrium of the dynamics. It should be emphasized that thesearch for some variant of the financial equilibrium does not correspond to the concept of optimum, as it involves finding a solutionwithin strict limits. And in case of shortage of any resource or lack thereof, the optimal solution can be quite far from the target systemsfor enterprise management. Therefore one should not determine the best financial balance, but the one that allows us to obtain a compromisesolution within the framework of interchangeable resources and return the values of the deviated general indicators to the limitsof the ranges of recommended values. Financial diagnosis is regarded as a special case of economic diagnosis, which allows examiningthe relations between performances and generalizing the shape, the aggregate quantity of recipes, recommendations, ensuring a return tobalance financial factors - a dynamic financial equilibrium. Systems analysis provides a review of the objects under study as complexsystems that in the process of learning require detailing the causes and factors of development and generalization of results of diagnosis.This is achieved by the introduction of general indicators for the integrated study of causal processes and phenomena. Most often thechoice of specialists falls into the following analytical areas: cost-benefit analysis, liquidity analysis and business analysis of financialstability. It should be noted that the number of directions should be based on providing maximum opportunities for the analyst in financialdiagnosis and best reflecting the specificity of the enterprise. Comparing the standard and the actual values of general indicators,each of the investigated analytical lines of the financial condition of the company can be diagnosed, as well as a set of actions to respondto the resulting diagnosis is made up. It should be noted that the generated summary measure can be modified individually for each enterprisespecialist financial expert group. Thus constructed index will have the greatest ratio of objectivity of financial diagnosis. Thestages of financial analysis described in the paper allow constructing general indicators used for diagnosis and formulating a set ofmeasures to address the identified shortcomings in the diagnosis.

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