Analysis of Business Solvency

Nowadays the number of bankrupt companies has considerably in all sectors of the Russian economy. At the same time, the methods used in the analysis of business solvency do not always give the correct assessment. For this reason, research on improving existing approaches to the analysis of solvency is relevant. The aim of this research is to systematize the existing methods of solvency analysis, to design a method of solvency analysis and to test it on the example of commercial organizations. The subject of this research are theoretical and practical aspects of solvency analysis. The object of the study are selected commercial organizations for which analysis of solvency was conducted using different methods. In this paper existing definitions of insolvency and bankruptcy are analyzed, the comparative analysis of the existing solvency analysis techniques is conducted, instruments that are most suitable for building techniques are identified. Also, the method of solvency analysis is designed and applied on practice in the short and long term. This technique analyzes the two main groups of factors: quantitative and qualitative. Logit-model was built for the analysis of quantitative factors, which describes the relationship between financial ratios and the likelihood of the continuation of the company. For the analysis of qualitative factors hierarchy analysis method was used, with which for a selected group priorities local factors were obtained, which were used as a weight in the equation. Aprobation includes calculation of values of every method, assessment of company according to criteria of method and comparison of assessments and actual status of company . Results prove the applicability of the developed methods. The following research methods are used in the course of paper: analysis, synthesis, classification, comparison, modeling, experiment, predict.