Enterprises’ economic sustainability assessment on the basis of performance indicators

Economic Annals-ХХI: Volume 155, Issue 11-12, Pages: 82-86

Citation information:
Hlushko, O., Gryshova, I., & Shсherbata, M. (2015). Enterprises’ economic sustainability assessment on the basis of performance indicators. Economic Annals-XXI, 155(11-12), 82-86. https://ea21journal.world/index.php/ea-v155-18/

Oleh Hlushko
PhD (Economics),
Assistant,
Lviv Polytechnic National University
12 Bandera Str., Lviv, 79013, Ukraine
oleh.v.hlushko@lpnu.ua

Inna Gryshova
D.Sc. (Economics),
Professor,
Odesa National Academy of Food Technologies
112 Kanatna Str., Odesa, 65039, Ukraine
rimmagrish@te.net.ua

Maryna Shсherbata
PhD (Economics),
Associate Professor,
International Humanitarian University
33 Fontanska Doroha Str., Odesa, 65009, Ukraine
bamzya84@mail.ru

Enterprises’ economic sustainability assessment on the basis of performance indicators

Abstract. A permanent crisis is stimulated by the development oriented on economic sustainability of engineering enterprises. The article describes the practicalities related to calculation methods of engineering enterprises’ economic stability with regard to complex changes in financial and integrated indicators. The economic stability assessment involves different techniques, methods and tools, in particular a single quantitative and qualitative indicators calculation, standardisation and aggregation of individual indicators within the economic stability components, construction of the indicator of the economic stability of enterprises and interpretation of the integrated indicator of economic stability. We have adapted analytical tools, in particular a variety of single indicators in the financial components of economic sustainability and calculated the integrated index for engineering enterprises. The data obtained for single indicators allowed us to identify the change of main financial indicators for the analysed period and contribute for identification the destabilizing factors’ influence. A list of the economic stability components (financial, organisational, technological, marketing, logistic and innovational) has made it possible to calculate this category from a comprehensive perspective. The list of coefficients of each economic stability component and mathematically grounded methodology for indicators’ standardisation ensured the objectivity and comparability of the assessment results. The assessment results relevant to the selected machine building companies have been determining the overall economic stability level. We have identified threats which may cause ineffectiveness of enterprises and analysed ways to ensure a high level of their efficiency and stability. The conclusions are focused on the inefficient functioning of the marketing and logistic components.

Keywords: Evaluation; Economic Stability; Effectiveness; Enterprises

JEL Classіfіcatіon: С13

References

1. Gryshova, I., Kriukova, I., & Mitiay, O. (2015). Ukraine’s positions in international ratings evaluation as a factor of its competitiveness. Ekonomicnij Casopis-XXI (Economic Annals-XXI), 5-6, 24-27.
   Retrieved from https://ea21journal.world/index.php/ea-v151-06/
2. Gryshova, I.Yu., & Stoyanova-Koval, S. S. (2015). Analytical support of economic development of enterprises from the standpoint of investment attractive­ness. Problemy i perspektyvy ekonomiky ta upravlinnya (Problems and prospects of economics and management), 2, 195-204 (in Ukr.).
3. Gryshova, I. Yu., & Lebed, L. E. (2015). Socio-economic development of enterprises in the context of solving economic conflicts. Aktualni problemy ekonomiky i upravlinnia (Actual Problems of Economics and management), 2, 33-37 (in Rus.).
4. Podolchak, N. Yu. (2010). Problems of assessment and management of socio-economic efficiency of management systems of machine building enter­prises. Lviv: Vydavnytstvo Lvivskoii politekhniky (in Ukr.).
5. Danylenko, V. A. (2012). Economic stability of industrial enterprises in market uncertainty conditions. Kyiv: Kyivskyi natsionalnyi universytet imeni Tarasa Shevchenka (in Ukr.).
6. Trydid, O. M., & Oryekhova, K. V. (2010). Assessment of financial stability of enterprise. Kyiv: University of Banking of the National Bank of Ukraine (in Ukr.).
7. Kosyanchuk, T. F., & Lyubchenko, N. L. (2011). A comprehensive assessment of economic stability of industrial enterprises. Khmelnitsky: Khmelnitsky National University (in Ukr.).
8. Yachmenova, V. M. (2007). Identification of the stability of industrial activities. Simferopol: DOLYA (in Ukr.).
9. Altman, E. I. (1968). Financial Ratio, Discriminate Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance, 4, 589-609.
10. Wagner, M. (2010). The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects. Ecological Economics, 69(7), 1553-1560.
11. Blejer, M. I. (2006). Economic growth and the stability and efficiency of the financial sector. Journal of Banking and Finance, 30(12), 3429-3432.
    doi: https://doi.org/10.1016/j. jbankfin.2006.06.001
12. Gaspar, J., Vasconcelos, P. B., & Afonso, O. (2014). Economic growth and multiple equilibria: A critical note. Economic Modelling, 36, 157-160.
    doi: https://doi.org/10.1016/j. econmod.2013.09.037
13. Hlushko, O. V. (2013). Methodical bases of evaluation the economic sustainability of the enterprise. Ekonomichnyi analiz (Economic analysis), 13, 281-287 (in Ukr.).

Received 3.11.2015