Aggregate assessment of a company's financial viability

Abstract

Identifying the adequate level of financial viability refers to the most vital economic issues, since inadequate financial viability can result in the lack of resources for development, insolvency and bankruptcy of the company, but the excess viability can impede development burdening the company with excessive reserves. The authors suggest an aggregate approach for assessment of the level of company’s financial viability based on the concept of marginal values of financial viability indicators developed by the authors. Level of adequacy, excess or lack of a general financial viability will be assessed by rationing of upper and lower margins of financial viability indicators. Suggested approach can be considered as an effective tool for controlling company’s solvency level, estimating the risk of bankruptcy and choosing best possible alternatives for running economic activities in line with sustainable development.