1. Diploma work: “Managing the company financial stability (on the example of the private company “Avtomarket 2000”)” Student: gr FK - 09 D. Zenzerova Scientific supervisor S.A. Kuznetsova, Doctor of Economic Sciences Full Professor

2. Content Introduction Chapter 1. Managing the company financial stability Chapter 2. Financial stability evaluation of the private company “Avtomarket 2000” Chapter 3. Ways to improve the financial stability management of the private company “Avtomarket 2000” Chapter 4. Safety Management for the Emergency State for the private company “Avtomarket 2000” Conclusions 2

3. The purpose of research – to develop an action plan to improve the financial stability management of the enterprise The object of research – the company financial stability The subject of research – managing the company financial stability The research base – Private Company “Avtomarket 2000” 3

4. The financial stability management is the system of decision to raise funds and distribute financial resources to provide the company stable growth, profitability, viability and solvency and achieve financial health. 4

5. Stages of the company financial stability management : financial statement stability evaluation, internal and external factor analysis; the company financial stability management strategy development and implementation; financial stability planning; strategic control and financial forecast. 5

6. Private company “Avtomarket 2000” was established in 2000. The company manufactures and sells a wide product range for different fields: agriculture (spare parts for the sowing and harvesting equipment); military industry (engines and spare parts); car industry (car, bus and truck engines and spare parts). The company background 6

7. Ratio20092010201120122013Normative value Cover ratio 1,451,461,361,501,972,0 Quick liqudity ratio 0.240,230,290,370,700,8-1,0 Absolute liqudity ratio 0,120,130,200,270,43>0.2 Liqudity ratio dynamics of the private company “Avtomarket 2000” in 2009 – 2013, th. grn. 7

8. Indicator20092010201120122013 Inventories (I) 1540,51693,11826,02099,61599,5 Own funds 194,5245243574860 Short-term loans 1280,61367,31701,61852,51258,6 Long-term loans 390,0380,0375,0360,0360 Own funds + Long- term loans584,56256189341220 Own funds + Long- term loans + Short- term loans1865,11992,32319,62786,52478,6 I < Own funds + Long-term loans + Short- term loans Type of financial stability unstable Evaluating the type of financial stability of the private company «Avtomarket 2000» in 2009 – 2013, th. grn. 8

9. The drawbacks of the private company “Avtomarket 2000” The private company “Avtomarket 2000” cannot be considered absolutely liquid because of the large debt liabilities Large amount of long-term and short-term liabilities result in the unstable company financial performance Account receivable increased significantly in 2013 Slow sales of the company products reduce the revenue 9

10. 10 Discount Policy for the private company “Avtomarket 2000” 1.Account Receivable analysis (debt-to assets ratio, debt capital turnover evaluation) 2.Cost-effective discounts calculation for the particular customer. 3.Discount extention for the customer to accelerate payment. 4.Making a discounting agreement. 5.Receipts to the accounts, working capital flow stimulation.

11. Accounts receivable policy management for the private company “Avtomarket 2000” 1. Accelerate cost recovery system using modern refinancing technologies. 2. Use factoring as an effective way to refinance accounting receivable. 3. Total cost of refinancing of receivables equal to 87,1 th.grn. 11

12. 12 Factoring can transfer accounts receivable into financial resources Working capital deficit liquidation will achieve cash- flow balance Company solvency will improve, working capital turnover will accelerate The private company “Avtomarket 2000” can increase profitability and improve competitive market position The company performance analysis result

13. 13 Reduce the assortment structure and stock provision disbalance of the private company “Avtomarket 2000”  regular inventory product quality control;  regular assortment control of the inventory available;  sales stimulation of the stock reserves;  effective discount policy and advertising campaign to increase sales;  regular customer demand analysis ;  regular inventory control, excess stock transfer to other retail outlets.

14. 14 Stock reserves management policy Finished product sale for the amount of 429,5 th. grn. will reduce the stock inventory and make 1170 th.grn. Own funds ratio will increase to 0,74 Working capital turnover ratio will increase to 0,42 Financial stability of the private company “Avtomarket 2000” will improve and correspond to the normative value

15. 15 Conclusions The proposed action plan can: reduce the company debt liabilities; improve the debt-collection system; optimize the inventory stock level; improve the company financial performance and financial stability.

16. My report is over! Thank you for your attention! 16