THE INTEGRAL INDEX OF THE FINANCIAL STATUS OF THE WATER SUPPLY AND SEWERAGE ENTERPRISES OF UKRAINE
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Keywords:
water supply company, financial condition, integral assessment, integral index, ranking, creditworthiness, debtor class.Abstract
The problem of stability of the financial potential of water supply enterprises depends on the implementation of a new industry development strategy, the development of which requires all-round comprehensive assessment of the financial and economic activities of each enterprise based on retrospective information. A generalization of theoretical and methodological approaches to assessing the financial condition of enterprises indicates the absence of a uniform procedure for the selection of indicators that form the integral index. The purpose of the study is to develop a methodological approach to the integral assessment of the financial condition of centralized water supply and sanitation enterprises using the method of multivariate statistical analysis. Integral assessment allows to create industry rankings, which makes it possible to identify the causes of the unstable financial condition of outsider enterprises and to develop the programs of improving their financial potential. In majority of cases, an integral indicator of the financial condition of an enterprise is a linear combination of indicators with weighting factors. In our opinion, the approaches for calculating integral indicators, approved at the level of the Ukraine government, insufficiently objective represent the real financial condition and level of enterprises creditworthiness. The authors of the paper propose an approach to the integral assessment of the financial condition of water supply enterprises. Among the main tasks, it is necessary to highlight the development of a model of the integral index of the financial condition of the enterprise, the introduction and improvement of the information system for monitoring the financial and economic activities of the enterprise; organization of a continuous comprehensive assessment of the main indicators characterizing the financial potential of the enterprise. To construct a model of the integral index of the financial condition of an enterprise, it is proposed to use an economic and mathematical model based on the principal component analysis. The main problem is the choice of indicators comprehensively described financial stability, liquidity, profitability and business activity. After testing the model, the following indicators were selected: coefficients of coverage, financial independence, return on working capital, net profitability, turnover of current assets. Using the model made it possible to obtain an integral index characterizing the financial condition of twenty water supply and sanitation enterprises in Ukraine. According to the industry rating in 2018 year, six profitable water supply companies took the first lines of the rating as expected. Further studies of this problem should be aimed to improve the model by repeatedly testing a large number of enterprises in various industries. It will allow to determine the final set of indicators which forms the integral index.
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