Analysis of the financial strategy of the trading enterprise in the terms of crisis on the basis of financial analysis

Slobodyanyuk, Natalja and Слободянюк, Наталя Олександрівна and Yunackiy, Mariyan and Юнацький, Мар’ян Олегович and Sirash, Svitlana and Сіраш, Світлана Сергіївна (2019) Analysis of the financial strategy of the trading enterprise in the terms of crisis on the basis of financial analysis. Інтелект ХХІ (2). pp. 105-111. ISSN 2415-8801

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Abstract

Consider, for example, LLC “RUSH” (EVA trade network) the behavior of one of the largest retailers in an economic crisis and financial results of its activities. The study uses a set of general scientific methods: generalization, grouping and comparison of indicators in the implementation of horizontal and vertical analysis, construction and analysis of dynamic data series, struc-tural and functional analysis, calculation of deviation of indicators over the years, methods of coefficient analysis, generalization method. In general, in Ukraine, the growth of trading facilities in 2017 amounted to 2.3%. LLC “Rush” actively opens new out-lets. So, in 2017 the network was increased by 38%. The assets of the company from 2014 to 2017 increased more than 2.5 times and the main increase was due to working capital. This is due to the first, the devaluation of the national currency and the rise in prices for goods, that is, the company needs more funds to maintain the same level of stocks. Second, LLC “Rush” is actively developing. Thus, during the year 2017, 168 new EVA stores were opened, and by the end of the year there were 610 outlets. The ratio of borrowed and own funds also has a positive dynamics: in 2014 borrowed funds in 7,14 times exceeded their own, and in 2017 – only 1.92. All this testifies to the strengthening of financial stability LLC “Rush”. The repayment period of accounts receivable decreased from 25 days in 2014 to 13.5 in 2017. This indicates an improvement in the quality of payments with suppli-ers and customers, and the company needs smaller amounts of “cash out” for accounts receivable. The turnover of inventories increased significantly from 69 days in 2014 to 82 days in 2017. This indicates a deterioration in the efficiency of the use of work-ing capital. Beginning in 2014, consumer behavior has changed in the choice of goods. If before, people were ready to buy goods despite the price, focusing on quality and brand, then today more and more consumers take into account the parameter of cost. Therefore, LLC “Rush” is working on expanding the range at the expense of its own brands.

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