System Approach to Diagnostics and Early Prevention of a Financial Crisis at an Enterprise
System Approach to Diagnostics and Early Prevention of a Financial Crisis at an Enterprise

Summary/Abstract: The article is devoted to the development of a system approach to diagnostics and early prevention of a financial crisis at an enterprise. It was found that the early detection of signs of a financial crisis at enterprises was the priority objective of financial diagnostics. It was determined that the analysis of the system of financial parameters on which the potential viability of the enterprise depends was required within the framework of financial diagnostics. It was proved that failure to account for qualitative parameters of the enterprise's activity was the main drawback of integral financial diagnostics. It was found that value-based indicators did not allow to fully alarm about the threat of default. It was stated that the approach based on forecasting the debt coverage indicator ignored capital expenditures and the performance indicators achieved. It was substantiated that an insufficient level of assessment of the potential solvency of the enterprise was a weak point in both integral and value-based financial diagnostics.

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