THE SYSTEM OF SOLVENCY AND LIQUIDITY INDICATORS AND THEIR RELATIONSHIP WITH FINANCIAL STABILITY
Abstract
The article investigates the contemporary system of solvency and liquidity indicators and their multidimensional relationship with the financial stability of enterprises in the face of increased uncertainty and crisis conditions. The research analyses the dynamics of key financial ratios—including current, absolute, and quick liquidity, autonomy, and debt-to-equity—for leading Ukrainian industrial and trade companies during the pre-crisis, pandemic, and wartime periods from 2019 to 2022. The results demonstrate significant changes in financial management strategies, with enterprises exhibiting both declining liquidity and increased credit dependency as a response to crisis challenges. Particular attention is paid to the global trend of transitioning from classical balance-sheet analysis toward innovative cash-flow-based indicators, which enable dynamic diagnostics and more timely risk identification. The study conducts a comparative review of Ukrainian and international analytical approaches, drawing on experiences from Central Europe and Kosovo to reveal the adaptation of financial analysis methodologies and the revision of normative values under volatile conditions. The proposed author’s structural matrix and composite financial stability index synthesize liquidity, solvency, and cash-flow metrics, providing a scientifically grounded and practically relevant tool for integrated financial monitoring and scenario analysis. The article outlines practical recommendations for enterprises seeking to enhance the effectiveness of financial risk management and anti-crisis strategies through the combined use of classical and cash-flow indicators, the application of adaptive forecasting models, and the implementation of composite indices for real-time decision support. The proposed methodological approaches are intended to increase the financial resilience and competitiveness of Ukrainian enterprises in a rapidly changing environment.
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