Comprehensive economic and financial analysis of the enterprise activity: approaches, methods and implementation

This thesis intends to analyse the performance and the efficiency of companies and to identify the key factors that may explain it. A comprehensive analysis based on a set of economic and financial ratios was studied as an instrument which provides information on enterprise performance and its efficiency. It was selected a sample with 15 enterprises: 7 Portuguese and 8 Ukrainian ones, belonging to several industries. Financial and non-financial data was collected for 6 years, during the period of 2009 to 2014. Research questions that guided this work were: Are the enterprises efficient/profitable? What factors influence enterprises’ efficiency/performance? Is there any difference between Ukrainian and Portuguese enterprises’ efficiency/performance, which factors have more influence? Which industrial sector is represented by more efficient/profitable enterprises? The main results showed that in average enterprises were efficient; comparing by states Ukrainian enterprises are more efficient; industries have similar level of efficiency. Among factors that influence ATR positively are fixed and current assets turnover ratios, ROA; negatively influencing are EBITDA margin and liquidity ratio. There is no significant difference between models by country. Concerning profitability, enterprises have low performance level but in comparison of countries Ukrainian enterprises have better profitability in average. Regarding the industry sector, paper industry is the most profitable. Among factors influencing ROA are profit margin, fixed asset turnover ratio, EBITDA margin, Debt to equity ratio and the country. In case of profitability both countries have different models. For Ukrainian enterprises is suggested to pay attention on factors of Short-term debt to total debt, ROA, Interest coverage ratio in order to be more efficient; Profit margin and EBITDA margin to make their performance better. For Portuguese enterprises for improving efficiency the observation and improvement of fixed assets turnover ratio, current assets turnover ratio, Short-term financial debt to total debt, Leverage Ratio, EBITDA margin is suggested; for improving higher profitability track fixed assets turnover ratio, current assets turnover ratio, Debt to equity ratio, Profit margin and Interest coverage ratio is suggested.

Justification the strategy of enterprise development: PJSC Elektrotermometriya: case study

The research is orientated to the actual issues of strategic management of industrial enterprises. The theoretical aspects of strategic management are generalized, its role is certain in organization development, methods and processes of strategic management are investigational. In this context the main objective of study is based on the strategic analysis of PJSC «Elektrotermometriya», formation ways to improve the strategic management of the company with regard to the readiness of the company to strategic changes and conducting of developments and recommendations for improvement activity of the enterprise. To answer to the main objective it was conducted the strategic analysis of activity of PJSC «Elektrotermometriya». The results proved the basic strategy to achieve the strategic goal of PJSC «Elektrotermometriya». According to the life cycle, and based on the current conditions of its functioning, is appropriate to use the strategy of gradual growth. Forecast implementing strategies defined by the optimistic, probable and pessimistic forecasts. According to the pessimistic forecast the company should use a strategy of stabilization, while to the optimistic and the most likely scenario - moderate growth strategy. Thus to achieve the main strategic goals according to each scenario PJSC «Elektrotermometriya» should use set of functional strategies and define the business strategy.