The role of financial analysis in enterprise management

In market conditions, the key to survival and the basis of the stable position of the enterprise is its financial stability. If the company is financially stable, solvent, it has a number of advantages over other enterprises of the same profile to obtain loans, attract investment, in the selection of suppliers and in the selection of qualified personnel. The higher the stability of the enterprise, the more it is regardless of unexpected changes in market conditions and, therefore, the less risk to be on the verge of bankruptcy. Assessment of financial stability and solvency is also the main element of the analysis of the financial condition necessary for control, allowing to assess the risk of violation of obligations on the calculations of the enterprise.