DIAGNOSTICS OF FINANCIAL POSITION AS A MAIN STAGE OF STRATEGIC BUSINESS ANALISYS

Abstract

The article is devoted to the key directions of the financial state diagnostics of business units in the context of strategic analysis. The relevance of the research is determined by the turbulence and uncertainty of the modern business environment. Activities in such conditions require enterprises to monitor its internal and external environment constantly, identify and analyze changes, as well as review their current strategies and goals. A special place is occupied by the diagnostics of the financial condition as a financial and economic basis for the implementation of the corporate business strategy and the achievement of goals. To achieve the aim of our research and solve the tasks, the following methods of scientific research were used: analysis and synthesis, the method of quantitative and qualitative comparisons; expert evaluations, predictive method and others. The concept of "financial condition", its types and key characteristics are analyzed. Diagnostics of the financial condition, as a component of strategic analysis, the main types and kinds (by direction, type of information and coverage) are also considered. The article describes the basic methods of carrying out financial diagnostics, namely the methods of financial analysis (the simplest methods (vertical, horizontal, trend), financial ratio analysis. Attention is also devoted to bankruptcy forecasting models, which are an integral part of the diagnosis of the financial state, their defined advantages and disadvantages are defined. Along with formalized methods, the author proposes consideration of qualitative methods of diagnosis, which can serve as additional tool for conducting comprehensive and informative diagnostics, as well as a final stage for summarizing the obtained results. Сoncluding the results of our research, it should be noted that the choice of approach and methods of the financial condition diagnostics should depend on the tasks and specifics of the enterprise or object of analysis. Numerous quantity of methods and approaches to diagnostics indicates huge world experience in this scientific field and practice, that’s why the analyst faces with the difficult task of choosing an appropriate set of methods and tools.