Scientific paper ID 1460 : 2017/3

The matter of risk of insolvency and bankruptcy of every enterprise remains topical at each stage of its development. The analysis and assessment of risk of insolvency and bankruptcy is an important element of the common methodology for analysis of the enterprise’s financial position. The financial performance, the financial position, the efficiency of the overall activity, the cash flows, the financial equilibrium and the risk of insolvency or bankruptcy of the enterprise are analyzed on the basis of the respective indicators identified according to the information contained in different parts of the financial statement. The upset of the financial stability and financial equilibrium of the enterprise is a prerequisite for occurrence of risk of insolvency.

This paper studies the different models for analysis of the risk of insolvency and bankruptcy of the enterprise and the options for applying some of them in the economic practice of the country.

This study highlights the opportunities for binding the system of the financial equilibrium, of its disturbance, respectively, with the analysis of the enterprise’s insolvency or bankruptcy risk exposure.

This study is aimed at expanding the system of financial equilibrium by means of integrating the methodology for analysis of the risk of insolvency or bankruptcy of the enterprise.