An integrated approach to analyzing the solvent capacity of an organization based on public information

Abstract

Importance: problems of assessing the solvency of an organization based on public information from external users who do not have access to internal data on its activities. Purpose: to summarize the known ideas about the methodology for analyzing the solvency of an economic entity and to justify an integrated approach to its implementation based on the use of only public (accessible to external users) information. Research design: in times of crisis, one of the key problems remains the assessment of the risk of insolvency of organizations that act as objects of investment, provision of loans, and supply of products. To do this, they are often limited to the calculation and assessment of financial ratios based on the balance sheet, as well as procedures for analyzing its liquidity, which significantly reduces the objectivity of the results of such analysis. Therefore, it is necessary to use an integrated approach to analyzing the solvency of an organization, which allows expanding the scope of the known methods of its implementation based on the involvement and study of not only the financial statements of the analyzed economic entity, but also other information available to external users. Results: the shortcomings of known methodological approaches to assessing the solvency of an organization have been identified; a scheme has been developed for a comprehensive external analysis of solvency based on public information about the organization’s activities, revealing the content and sequence of its implementation; the information base was systematized in the context of each identified area of analysis; the author’s idea of some aspects regarding the algorithm for calculating the indicators used is disclosed; the information capabilities of accounting reporting are determined to identify the risks of loss of liquidity and possible bankruptcy.