Managing the financial stability of the organization


In market conditions, any organization needs to provide stability, reliability of its activity, the efficiency of use of its capital. In other words, each

organization strives to survive in the market. The guarantee of survival and the basis of a company’s strong position is its financial stability. Financial

stability is a reflection of stable excess of income over expenditures, when a stable inflow of funds is achieved, which allows the company to ensure its

current and long-term solvency, financial stability provides free maneuvering of funds of the company and due to their effective use contributes to the

uninterrupted process of production and sale of products. Thus, financial sustainability is formed in the process of all financial and economic

activities and is the main component of the overall sustainability of the enterprise. In modern economic conditions, the activity of each business entity

is a subject of attention of a wide circle of participants of the market interested in the results of its functioning, therefore questions of management of

financial stability are always actual and significant for the enterprise. First of all, the attention of investors and creditors is attracted by the degree of

financial stability of the enterprise – based on its assessment they decide on investing in the relevant enterprise. Thus, if the enterprise is financially

stable, it has several advantages over other enterprises of the same profile in obtaining loans, attracting investment, choosing suppliers, and selecting

qualified personnel.It is obvious that if the organization is financially stable, it will not have conflicts with the state and society, as it will be paid on

time: taxes – to the budget, contributions – to social funds, wages – to workers and employees, dividends. – Shareholders and banks will be provided

with repayment of loans and payment of interest on them.

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