Stability Analysis of Enterprises and Methods for Assessing the Likelihood of Bankruptcy

Abstract

At the present stage of development of the Russian economy, it becomes obvious that any enterprise must skillfully adapt to the requirements of the surrounding reality in order to maintain financial stability and long-term competitiveness. The need to assess the financial condition and forecast its changes is experienced by both the economic entity itself and its counterparties, investors and other interested users of the reporting. As a result, the identification of adverse trends in the development of the enterprise, risk factors leading to bankruptcy and methods for assessing them are of paramount importance. Forecasting the financial insolvency of an economic entity is based on an assessment of its financial condition using methods such as crisis management policy, official bankruptcy forecasting methods and criteria, as well as quantitative and qualitative models for assessing financial condition. The paper assesses the possibility of applying well-known bankruptcy forecasting techniques to large telecommunications companies in the Samara region such as PJSC Megafon, PJSC MTS, PJSC Rostelecom based on observations of their activities during 2017–2019. Using the conducted financial insolvency analysis, it is planned to find out whether these market participants can support the region in the implementation of the national project “Digital Economy”.