Essence and calculation of financial potential of the enterprise

Issue: № 2, 2021

Doi: https://doi.org/10.37634/efp.2021.2.6

Introduction. The activity of any enterprise is not possible without the use of skills and abilities of the organization of financial management. According to the current legislation, any commercial enterprise is created for profit. But making a profit can not be possible without proper management of the enterprise and calculation of its financial potential. In modern conditions, financial potential becomes a factor that determines the financial, investment, integration and other relations between enterprises of different sectors of the economy and forms of ownership. The purpose of the paper is to study the essence and to suggest ways of calculating the financial potential of the enterprise. Results. In the paper the important aspects of the financial potential of the enterprise are considered. The economic essence of the financial potential of the enterprise is revealed and its definition is formulated. It is shown that the availability and size of financial potential provide the enterprise with a certain location in the ranking of organizations, in the market of goods and capital. It is denoted that in modern economic conditions scientific and practical interest in clearly defining the financial potential of enterprises is growing. Ways of calculating the financial potential of the enterprise are proposed. According to the system approach, the financial potential of the enterprise is considered as the potential of the financial system of the enterprise. Conclusion. The financial potential of the enterprise is the inertia of self-development, independence and self-preservation of its financial system. The magnitude of the financial potential of the enterprise is the potential volume of accumulation, return, expenditure of financial resources due to its position (financial, economic, territorial, etc.) relative to other enterprises, as well as due to some other properties of the financial system. The key factors of effective management of financial potential are effective policy of formation, distribution and use of income, policy of management of active and passive capital and dividend policy of the enterprise.

Keywords : financial potential, management system, structure, profitability, enterprise, energy potential, calculation of financial potential

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