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JCR Category: Business in ESCI edition

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2023) 1.2 Q4
Journal Citation IndicatorTM (2023) 0.33 Q3
Received: 2023-05-21  |  Accepted: 2023-09-15  |  Published: 2023-09-30

Title

The usefulness of financial instruments in assessing the bankruptcy risk of companies


Abstract

The research problem relates to modern enterprises' central dilemmas, which use existing financial instruments to assess the company's situation. Issues raised in this study involve identifying matters in the financial analysis of chosen companies listed on a stock exchange, the recognition of which may improve and heal the current economic situation. For this purpose, the document analysis and analysis methods were used. Documents contain financial statements of the researched enterprises, balance sheets and income statements included therein, and the conducted source analysis of contemporary subject literature of economics, finance and statistical studies. Studies on assessing the financial situation of the researched companies were carried out according to the following structure: preliminary analysis of financial statements, preliminary analysis of balance sheet, preliminary analysis of income statement, preliminary analysis of cash flow statement, ratio analysis of financial statements, working capital and financial liquidity ratios, efficiency ratios, debt and debt sustainability ratios, capital market ratios. The article ends with the financial condition improvement recommendations. This study may be used in similar scientific publications and teaching materials, or enterprises can use it to recognize ineffective areas. It also can be used to assess the effectiveness of the early warning model.


Keywords

stock exchange, economic analysis, financial analysis, early warning models


JEL classifications

G17 , G33 , L61


URI

http://jssidoi.org/jesi/article/1111


DOI


Pages

191-208


Funding

This research was funded by Riga International School of Economics and Business Administration, Latvia.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Lisowska, Agnieszka
Warsaw University of Technology, Warsaw, Poland https://www.pw.edu.pl
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Waściński, Tadeusz
Warsaw University of Technology, Warsaw, Poland https://www.pw.edu.pl
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Kurovs, Jevgenijs
RISEBA University of Applied Sciences, Riga, Latvia http://www.riseba.lv
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Szpernalowski, Marcin
Warsaw University of Technology, Warsaw, Poland https://www.pw.edu.pl
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Koszewska, Malgorzata
Lodz University of Technology, Lodz, Poland https://www.p.lodz.pl
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Journal title

Entrepreneurship and Sustainability Issues

Volume

11


Number

1


Issue date

September 2023


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1232  |  PDF downloads: 463

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