THE PROCESS OF BUILDING AN ECONOMIC AND STATISTICAL MODEL FOR ANALYZING THE FINANCIAL STABILITY OF AN ENTERPRISE

Abstract

Financial stability is a vital indicator that not only reflects the current financial health of an organization but also acts as a key tool for forecasting its future growth prospects and long-term viability. This indicator plays an essential role in evaluating the efficiency of an enterprise’s financial and economic activities and guides management in making informed decisions. The process of economic and statistical analysis of financial stability must be structured in such a way that it provides an unbiased and objective assessment of the organization’s future development potential, enabling corrective measures to strengthen its financial stability, adjust its level, and assess the risks involved in investing and lending. This article thoroughly explores and summarizes the various methods and approaches used during the economic and statistical analysis of the financial stability of business entities. It presents the sequence of analyzing key financial stability indicators, reveals their interconnections, and evaluates the overall effectiveness of the economic and statistical analysis process. The methodology applied to this analysis is deeply rooted in the methods of financial analysis, with particular emphasis on understanding and evaluating the capital structure of the organization. The qualitative aspect of the analysis is crucial as it helps determine the probable nature of financial changes, allowing for the assessment of whether correlational methods should be employed. Moreover, it reveals the causal relationships between different variables, distinguishes between endogenous and exogenous factors, and identifies dependencies, which are presented in the form of various types of graphical models or curves.The concept of financial sustainability is complex and multifaceted, and its accurate assessment requires a deep understanding of the entire process of extended reproduction and its related interactions. The study of capital structure is key to understanding changes in equity capital and identifying potential ways to replenish it, which has a direct impact on the overall financial and economic effectiveness of the enterprise.