FINANCIAL STATE OF AN ENTERPRISE: ESSENCE AND VALUE IN THE MANAGEMENT SYSTEM

Abstract

The purpose of the article is to explore the essence of the concept of "financial state of an enterprise" and its interpretation by various scholars in order to clarify the content in the author's understanding, as well as to reveal the significance of financial state in the enterprise management system in modern conditions.

The interpretation of the concept of "financial state of an enterprise" by various authors was presented, which made it possible to highlight several key approaches to understanding its content, within which the financial state is considered as: an indicator of financial competitiveness and solvency; a complex concept and result of the interaction of financial relations; a characteristic of the state of capital in the process of its circulation; real and potential financial capacity.

The main characteristics of the financial state of an enterprise and the factors that influence its formation, liquidity, solvency, financial stability, business activity and profitability were presented.

The formation of the financial state is the result of the interaction of internal factors (capital structure, management decisions, financial discipline) and external challenges (market conditions, inflation, military challenges) was revealed. The key role of management is to implement adaptive management to minimize the negative impact of the external environment and ensure sustainable development.

The importance of the financial state in the enterprise management system is outlined (as an information basis for management decisions, a tool for assessing management effectiveness, a criterion for financial security and stability, and a basis for interaction with stakeholders). This made it possible to clarify the essence of the concept of "financial state of an enterprise" in the author's understanding as a key integral characteristic of its activities, which reflects the ability of an enterprise to effectively form and use financial resources, ensure solvency, financial stability and development, and also serves as the basis for decision-making in the system of strategic and anti-crisis management.