ANALYSIS OF MACHINE-BUILDING ENTERPRISES TO ENHANCE CAPITAL BUDGETING IN CURRENT CONDITIONS

Abstract

An integral assessment of the production capacity of several machine-building enterprises, which includes their financial position analysis, is performed in the article. The methodological basis for determining the integral indicator of the financial position is a method of multifactorial discriminatory analysis. Five classes assigned based on the level of financial position range from the highest level of capacity to meet obligations and the lowest probability of default to the lowest level with a high probability of default. The analysis shows that the financial independence ratio exceeds the critical value for 60% of enterprises, 40% pay off debt in time and their financial risk ratio value is close to industry standard, 20% entities encounter problems with paying off current debt. In general, according to the results of integral assessment of the considered enterprises production capacity, over 60% of the entities belong to the first class, 20% - each to the fifth and second classes. These results serve as an input in the development of required rate of return assessment model to enhance capital budgeting at machine-building enterprises.