DIAGNOSIS OF THE FINANCIAL SUSTAINABILITY OF WINE PRODUCTION ENTERPRISES

Abstract

In this paper are discussed and applied some of the main methods and approaches for diagnosing financial sustainability, which are part of financial analysis. Financial sustainability is one of the most important and significant indicators determining the long-term competitive development of wine enterprises. The relevance of the diagnosis of the financial stability of wine enterprises is due to the fact that their rational management is impossible without adequate and reliable information about their assets formation, taking into account the dynamic and risky changes in the sources of their funding. Financial sustainability characterizes the financial condition of economic entities in this sector of the national economy. In terms of the availability and efficiency of use of capital and liabilities, ensuring high profitability of their owners. In the specialized literature, the term - "financial sustainability" is associated with the ratio between own and borrowed funds in the capital structure, ensuring stable solvency in the long-term plan. The main goal of this paper is to diagnose the financial sustainability of wine enterprises in a dynamic aspect - for a period of five years. The results of the obtained diagnostic analysis are in the basis, on which the financial management will plan the strategies for adaptation and development of these enterprises in a global competitive environment. Financial sustainability is characterized by this specific state of financial resources that can easily ensure the production of wine in accordance with the requirements and preferences of the market. In condition, that there is a significant instability in the regulating process of the enterprise’s capital formation – the object of diagnosis, it is also extremely important to monitor and study the financial sustainability. This sustainability is a part of the overall economic sustainability of economic entities, hich secures their future market positions. Thru the financial sustainability’s diagnosis it is reduced the risk of bankruptcy. The main models for diagnosing financial sustainability, applied in the present study, are important part of the financial-accounting analytical model.