Methods of prognosis of enterprise financial insolvency

Abstract

Introduction. Nowadays, one of the main problems facing the management entities system are timely and reliable estimates of financial insolvency. Many businesses in Ukraine are on the verge of bankruptcy and a large number of them are already bankrupts, therefore the study of this problem is very important.

Purpose. The aim of the article is to analyse the modern methods of bankruptcy prognosis in order to identify the most effective ones in the conditions of financial crisis of Ukraine.

Method (methodology). The works of domestic and foreign scholars in the field of bankruptcy have become the theoretical basis of scientific research. The systematic and structural analysis which aim is to organize and systematize evaluation criteria of bankruptcy are the methodological basis of the research.

Results. In crisis conditions, methods and models, which we used, are based only on the analysis of economic indicators that reveal the activities of economic entities. These methods and models do not give the real picture of the enterprise. Tey often only record the fact that has already happened. We need a comprehensive approach that can take into account not only financial statements but also perfect internal management analysis. Therefore, early detection of the company crisis, its pervasive accounting and analysis can prevent the insolvency of the company in the early stages, before the bankruptcy.