An inTegrAl evAluATion of The finAnciAl STATe of The regionAl enTerpriSeS

245 R-Economy Vol. 2, Issue 2, 2016 doi 10.15826/recon.2016.2.2.022 UDC 338.1 S. P. Kyurdzhiev a), A. A. Mambetova b), E. P. Peshkova a) a) South-Russian Institute of Management — Branch of the Russian Presidential Academy of National Economy and Public Administration (Rostov-on-Don, Russian Federation; e-mail: ksp@aaanet.ru) b) Rostov State University of Economics (Rostov-on-Don, Russian Federation)


Introduction
The general assessment of the financial state of an enterprise depends on many indices, which need to be studies in their interrelation.Therefore, there is the necessity to aggregate all the features of an aggregate (financial indices), provided by the fact, that the object of modeling (financial state) demands not only united characteristics, but also bringing into order its separate elements according to the definite traits and principles.The mentioned mechanism is possible to realize with the help of integration assessment, the ground of which rests on the parameters acquired in the result of the analysis of the main variables of the financial state of the subject of national economy (profitability, purchasing ability, liquidity, financial stability, efficiency if the enterprise management) [1].On the basis of the integrated assessment of the financial state of enterprise, it is possible to comprehensively assess its economic financial performance, to define drawbacks in work and offer the direction of development.Besides, the integrated assessment is the ground of forecasting the financial state of the economic subject, as the adequacy of prognostic data depends on the reliability of the input information.
The metallurgical branch is one of the leading in the industry of the Rostov region, on the territory of which, there are more than 30 large enterprises of ferrous and non-ferrous metallurgy.In the branch, there work more than 30,325 thousand of the employable population of the region, and about 13 % of the main industrial funds are, having a high degree of wear and tear are centered.The perspective development of the branch depends on the speed of modernization of equipment a well as on the introduction of innovations and perfection of the methods of financial management.
Thus, the object of the research is a row of metallurgical enterprises of the Rostov region.

Integration index of the financial state of an enterprise
The role of objective assessment of the financial state of an enterprise as the basis of its stable development considerably rises in modern economic conditions.The financial state reflects the efficiency of economic activities of the subject, and its analysis allows simultaneously optimizing the use of financial resources and objectively defining the priority directions of an enterprise, to form strategic plans and control their implementation.
Thus, the objective analysis of the financial analysis provides a construction of the adequate models of prognostication, and the reliable assessment is the basis of an enterprise's development.
The comparative analysis of the traditional methodologies [2][3][4] has revealed the certain advantages as well as the disadvantages of different methodological approaches, which, in their turn, complicate their use for prognostication of the financial state of an enterprise.That is why we have improved (from the procedure point of view) the methodology of the analysis of the financial state of the economic subject, which ultimately consists of interrelated blocks (fig.1).
The first block is the study of the structural changes in the assets and capital of an enterprise that is conducting a vertical and horizontal analysis of the indices of the aggregated balance, their assessment in dynamics.
The second block is the analysis of financial stability on the basis of relative indices, such as the ratios of independence, the correlation of domestic and borrowed resources, the maneuvering of domestic means, securing return assets by domestic capital, the concentration of the borrowed capital and returning of the debt.
The third block is based on the analysis of liquidity and solvency: the general index of liquidity, the ratio of absolute liquidity, the intermediate ratio of coverage, the current ratio of coverage and ratio of the current liquidity.The forth block includes the study of relative indices of the efficiency of the capital use: the indices of the product profitability, investments, circulating assets and capital.
The fifth block is generalizing, it supposes the definition of integral index of the financial state.The basis is the uniting of a row of basic indices, characterizing the variables of the financial states.
The peculiarity of the suggested approach is in the succession of conducting the procedures of the assessment of the financial state and mechanism of generalizing of the analysis results.
Thus, the elaborated methodology as the first stage provides the arrangement of the assessment of the content of the assets and liabilities of an enterprise, their structural elements (working and nonworking assets, own and borrowed capital).Together with this, the assessment supposes the vertical and horizontal analysis of balance and its main sections.The expedience of this step is provided by the fact that the quality of assets and liabilities exerts immediate influence on the basic subsystems of the financial state, in particular on the primary data of industrial and managerial calculation.
The analysis of the financial state of an enterprise according to the developed methodology is the first stage of defining the perspectives of its changes.The necessity of the analysis is provided by the fact that its results are the informational basis for defining the prognostic financial state of an enterprise.
The main aim of the mentioned analysis is the investigation of the possibility of using various financial indices for the prognosis of financial state.To achieve the formulated aim, we can group the metallurgical enterprises of the Rostov region (with the help of methods of strategic analysis) according to the level of separate indices and study the dynamics of the change of specific gravity of separate groups of the economic subjects.This grouping allowed to calculate the dimensions of changes and dynamics of the frequency of their variations, and also to define the stability of changes and make conclusions relatively to the expediency of their inclusion to the latest models of prognosis of the financial state.The analysis of the researched metallurgical enterprises enables us to make the following conclusion: for the prognosis of the financial state, it is advisable to use the indices, characterizing the vertical structure of the assets and liabilities of an enterprise and also the efficiency of the capital use.
On the whole, the suggested approach may become the ground of prognosis of the financial state of the given system of indices most fully reflect all the financial aspects of functioning of the economic subject and their dynamics, gives the possibility to show the common tendencies, which in perspective will influence the results of the organization performance.
The economic context of the integration assessment is in uniting the separate financial indices according to the definite procedure and principles into a general quantitative index.The use of this approach allows to define the generalizing assessments of economic subjects, compare them from the point of view of the efficiency of financing and prognostic activities.It is necessary to mention that the integral assessment is also an effective mechanism of comparing the financial and economic activities of separate enterprises [5] The universalism and complex of the integrated index allow to use it in prognostic financial activities of an enterprise, that is, the prognostic financial state will be defined by the level of the prognosticated integration index.
The foreign economists with the aim of financial prognostic activities propose to use different methods: rational [6]; of experts' evaluation [7], etc.
In Russian scientific practice, much attention to the research of integration index of the financial state is given in the works of O. O. Tereshenko [8].The mentioned models are built on the basis of the methods of discrimination analysis and empirical data of the enterprises of different types of performance [9][10][11].
A high level of objectivism and grounding of discrimination models allows to make a conclusion of the expediency of their use for prognostication of the financial state of the Russian enterprises.It means that the given models is possible to put into the grounding of the development of the models of prognostication of financial activities [12].That is why they are used for the initial calculations.
The object of the research is the row of metallurgical enterprises of the Rostov region.For calculations we use the model: where Х 1 -the current assets/current circumstances; Х 2 -own capital/the sum of the balance; Х 3 -the net profit from realization/the sum of the balance; X 4 -the clean money flow from the operational activities/net income from realization + other operational income; X 5 -the movement of money means from operational and investment activities/currency of the balance; X 6 -the net profit from realization/net borrowed capital; X 10 -net income from realization/average leftovers of the working assets.
On the basis of discrimination models, an integration index (Z) was calculated, the quality of the financial state of metallurgical enterprises and their reference to the definite class were defined2 (Table 1).On the basis of the ranging of the points of integration assessment, a group of enterprises-leaders is singed out, whose meaning of the integration assessment were included in the zone of the stable financial state by the end of 2015 and during the investigated period had a relative stable assessment.These enterprises are OOO "Metkom", OOO "Aloid", OOO "Trubstalkomplekt", OOO "Yugmetallstroy", OOO."Grand Resurs", OOO."Derkul", OOO."Atlantis".To the second group, we can refer enterprises, which financial state was unstable, the meaning of integrational index fluctuated, with that they were in the zone of indefiniteness with both positive and negative dynamics: OOO "TransMet", OOO "ASTM-Standart", OOO "SVmetall", OOO "Sevazh", OOO."Alta", OOO "Opt-Service", OOO "Metalotorg".
The results of the carried out integration assessment testify the possibility of the use of the given approach for the forecasting of the financial state, because in the majority of the research enterprises, the results of the analysis received with the help of integration assessment and separate financial indices do not contradict to each other.In spite of the definite advantages, the seen algorithm of integration assessment of the financial state of the economic subjects has some disadvantages: 1) ignoring of the additive value of the integration assessment from the viewpoint of some variables of the financial state of an enterprise that is the impossibility of defining the influence of the liquidity level, financial instability and efficiency of using capital on the assessment of financial performance.The liquidation of the given gap will help to investigate the financial state on separate directions, single out the factors, which negatively influence the general level of the integration index and also to develop actions for their elimination; 2) the limitation of the use by the negative meaning of the net borrowed capital as unsatisfactory, which is connected with the negative meaning of the ratio of circulation of the borrowed capital, which further will belittle the meaning of the integration index; 3) a high level of generalization and low degree of working out in detail of the general assessment of the financial state; 4) the existence of the zone on indefiniteness with a large scope of the change of the meaning of the integration index, which makes the assessment of the financial state more complex.That is by receiving the meaning of the integration index, which is in the zone of indefiniteness, the analyst has to make a more detailed analysis of the financial performance of an enterprise.
To eliminate the mentioned problems is advisable on the basis of the geometrical interpretation of the integral assessment of the financial state.The given approach analyses the integration assessment as a point in multidimensional space that is the integral assessment is point X with coordinates (x 1 ; x 2 ; x 3 ; …; x m ).Proceeding from the theory of the additive value, it is possible to assert that the integration assessment of the financial state is formed on the basis of the financial stability, liquidity and solvency, efficiency of the capital use [9; 13].
As the indices, characterizing the financial state, have different influence, to construct an integration index, it is recommended to use the formula of average arithmetic weighted that is when each index has a definite level of significance: ( where m -the quantity of the financial indices of the integration assessment; s i -the standardized meaning of financial index; ω i -the weight (significance) of financial ratio.
Thus, the construction of the integration index of the financial state of economy, according to the suggested approached, foresees the following stages: 1) formation of a certain multitude, in the given case, it is the choosing of indices (factors), characterizing the financial state of an enterprise; 2) the grounding of the significance of financial ratios and defining their influence on the level of the integration assessment; 3) defining the procedure of standardization of the indices.
The economic sense of the integration assessment is a complex investigation of the financial state of an enterprise, characterized by a number of different indices, the analysis of each separately does not allow to assess the general financial situation.In connection with this, it is rather vital to use the aggregated index.

The improvement of the integration assessment of the financial state of the metallurgical enterprises of the Rostov region
On the basis of the offered approach and defined earlier integration index, it is suggested to improve the existing mechanism of the integration assessment of the financial state of the economic subject.
The selection of financial indices must become the major moment of building an integration index.On the basis of the analysis done by the authors as the input data, it is advisable to take the system of financial ratios, characterizing different aspects of the financial state of an enterprise: profitability of the investments of net profit (Z 1 ); profitability of the current assets (Z 2 ); profitability of the constant capital (Z 3 ); profitability of investments (of capital) (Z 4 ) profitability of their own capital (Z 5 ); profitability of the assets of money flows (Z 6 ); the general profitability of production (Z 7 ); profitability of realization (Z 8 ); profitability of realization on the net profit (Z 9 ); profitability of realization on money flows (Z 10 ); circulations of the working means (Z 11 ); circulation of material assets (Z 12 ); circulation of one's own capital (Z 13 );circulation of the credit debt (Z 14 ); circulation of the debit debt (Z 15 ); absolute liquidity (Y 1 ); general liquidity (Y 2 ); coverage of the obligations of the debit debt (Y 3 ); the current liquidity (Y 4 ); the providing with own working means (X 1 ); correlation of own and borrowed means (X 2 ); financial independence (X 3 ); long-term attraction of the borrowed means (X 4 ); maneuvering of one' own means (X 5 ); concentration of the borrowed capital (X 6 ); coverage of the debt by a money flow (X 7 ).
The resulting index of the assessment of the financial state is its integration meaning (I).
The given factors reflect different aspects of the financial state of the economic subject, together with this taking them separately, it is possible to assess financial variable, in general, the others are treated as additional characteristics.Besides, in the result of the analysis of separate financial ratios, the certain contradictions and non-attachments emerge are making the defining of adequate and concrete assessment of the financial state of an enterprise more complex.
Taking this into account, the strength of the connection and mutual provision between separate ratios allowing to avoid the inadequate influence of the given indices on the complex conclusions relating to the financial state of the economic subject.The strength between separate indices and their influence on the integration assessment of the financial state, it is advisable to investigate with the help of the methods of correlation analysis.Foreseeing the calculating of the ratios of chosen and pair correlation.The maximum meaning of the ration of correlation testifies the strength between the financial indices [10; 14].
Parameters characterizing the financial state of an enterprise have some dependence.This is the prerequisite for the hypothesis of the existing of multicollinearity, the essence of which is in a high mutual dependence between financial indices, which negatively influence on the objectivity of the complex assessment of the financial activities, as a small change of any of them may exert a substantial influence on the meaning of the integration assessment.
The given fact maintains the necessity of finding the indices, which are closely connected between each other, as ignoring this may negatively impact on the adequacy of the prognosticated models.
The indices with a large degree of correlation (more than 0, 8) should be excluded from the research.Meanwhile, the decision which index to leave and which to eliminate will depend on the influence of the meaning of the ratio of correlation with a dependent index of integration assessment [11; 15].
Parameters, closely correlating between each other, may be excluded with the help of the definition of an indicator of pair correlation.This approach foresees the building of correlation matrix in which both selected and pair ratios are reflected (Table 2).
Based on the calculation, the indices are singled out, inadequately influencing the integration assessment of the financial state of an enterprise due to the effect of multicollinearity, for removal of the negative influence, which is to be eliminated: The excluding of the given indices will allow increase the objective influence of some of them on the integration index of the financial state of an enterprise due to the elimination of multicollinearity.
The next stage of the improvement of the integration assessment is defining the influence of each of the financial indices, which left after elimination.The necessity of the mentioned is provided by the fact that separate financial parameters differently influence on the general assessment of the activities.
For the definition of the level of the influence of each parameter on the integration assessment of the financial state of an enterprise we use the meaning of the ratio of correlation: (3) where t 1 − α; n − 2 is the table meaning of t-criterion of Student, defined on the level α, with n − 2 degrees of freedom and the determiner t-distribution of Student: (4) where r i is the meaning of the ratio of correlation; n is the number of observations (with n − 2 degrees of freedom and degree of meaning α = 0,4).
The choice of the given parameters of t-distribution is maintained by the level of their adequacy, their building of financial models.The degree of influence of financial determiners defines the necessity of their inclusion into integral assessment (Table 3).
The analysis of the material of table 3 allows to emphasize the factors, not substantially influencing on the integration assessment of the financial state, in particular, these are ratios Z7, Z9, Z10, X4, X5, X5.Consequently, these parameters is advisable to exclude from the system, defining the integration assessment.
Table 4 The definition of the financial parameters on the basis of the correlation ratio *
As it has been defined, the financial state of an enterprise is characterized by the parameters of financial stability, liquidity, solvency and efficiency of the capital use, and the integration assessment is the aggregates characteristics of their standardized meanings.
The standardized meanings of financial parameters must reflect the optimal formation and distribution of financial resources for the investigated enterprises.
In this connection, the given procedure is offered to conduct by the division of factual parameters on the average meaning of corresponding financial parameters of those enterprises, the dynamics of which has the tendency to improvement.
That is the standard meaning is offered to be calculated in the following way: (5) where x i is a factual meaning of the financial parameter; a i is the average meaning of the financial parameter of the investigated enterprises.Thus, the integration parameter of the financial state (2), due to the definite mechanisms of standardization (5), will be calculated in the following way: (6) where x i is a factual meaning of the financial parameter; a i is the average meaning of the financial index; ω i is the weight (significance) of the financial ratio.
Conducting all these stages of building the integration assessment let the authors emphasize the system of financial parameters, define their standardized meaning and influence (through significance) on the aggregated assessments the financial state (Table 5).
The of the received results allows to make a conclusion that the level of absolute liquidity influence a lot on the level of the integration index in particular and the assessment of the aggregated financial state.
The received model allows to define what namely are the variables of the integration assessment of the financial state -efficiency of the capital use, solvency and liquidity and financial stability -have a tendency to deteriorate and simultaneously develop an action of prevention of the negative dynamics.The advantage of the given model is the distinct identification of a variable, negatively influencing on the aggregated assessment of the financial state of an enterprise.

Detailed elaboration of the types of the financial state of an enterprise
The issue of the expediency of referring an enterprise to a certain class, that is acquiring depending on the meaning of an integration index of a definite meaning of the letter (A, B,C, etc.) is still significant.In our opinion, such methodical approach is limited, as it supposes the aggregated assessment of the financial state on the basis of the meaning of the integration index and does not take into consideration the dynamics of the change of its variables.This may bring to an inadequate conclusion relatively    to the reasons of the financial state of an enterprise.That is why the authors suggest the detailed elaboration of the types of the financial states of an enterprise by the analysis of the main variables of the integration assessment.To define the type of the financial state is advisable to use the calculated meaning of variable of the integration assessments Z, X, Y (Table 6).The grouping of the enterprises according to the levels of the indices, characterizing the separate elements of the financial state allowed the definition of the types of the financial state, defined by the quality and level of the efficiency of the capital use, financial stability, liquidity and solvency.
Coming out of the possible scope of changes and standard meanings financial parameters by the schemes the following types of the financial state of an enterprise are defined (Fig. 2).
The suggested approach foresees referring an enterprise to a certain group depending on the meaning of integral parameters, characterizing the financial stability, efficiency, capital use, liquidity and solvency.The advantage of this approach is the defining financial state on the basis of its variables, characterizing the separate aspects of financial state, i.e. such an approach has a large degree of detailed elaboration, positively influencing on the adequacy and reliability of the general conclusion on the financial economic subject.
In the case of necessity of the conclusion on the financial state of an enterprise, it is possible to use the meaning of integration index -I, allowing to objectively make a complex assessment of the financial state, as it is a consolidating mechanism of financial indicators.
On the basis of definite types of financial state and the level of their integration assessment, the types of financial state of an economic subject, describing its characteristic, is defined (Table 7).It is necessary to mention that the choice of detail elaboration of the linguistic definition of the type or kind of the financial state depends on aims of analysis and prognostication.
It is advisable to give the assessment both on the basis of separate variables of the financial state and integration index, as these linguistic characteristics supplement each other.
Thus, the integration index of financial state is calculated state by stage: 1. Calculation of financial indices; characterizing the financial state of an enterprise (the list of indicators is in Table 5).
2. Defining according to the formula (5) standardized indices of the financial state.
3. Definition of coordinates of financial state of an enterprise by the formula: where Z, Y, X are coordinates of the financial state, characterizing the dynamics of the change of its separate variables; z і , y і , x і , are factual meaning of corresponding financial indicators; ω i weight (meaning) of financial ratio; a i is an average meaning of a financial indicators; m is the quantities of financial indicators of the integration assessment.
The weight and standard meaning of the meaning defined in Table 5.
4. Finding the integration index of financial state according to the formula: . I Z Y X = + + (10) 5. Comparing of the received digital indicators with linguistic types of the financial state due to coordinates (See Fig. 2, Table 7).
6. Generalization of the conclusion of the financial state of an enterprise on the basis of integration indicator.
Using the conclusion on the financial state, the building of analytical table.The mentioned calculations were done for all the investigated enterprises, but the volume of the article does not allow to give conclusions and calculations of all economic subjects, that is why on example of the calculations for OOO "Trubstalkomplekt" on the basis of which the developed proposals were implemented into practical resources (Table 8).On the basis of the calculations and proposed matrix of the types of financial state of OOO "Turbstalkomlekt", the general tendencies of changes were defined, and the factors negatively influencing on the financial state of society were identified.The analysis of the received data gives the possibility to confirm that the main reason for negative dynamics of the change of integration index in 2011 -2013 was a reduction of the level of the efficiency of capital use provided by decreasing of profitability of production realization.Besides, the insufficient level of liquidity and financial stability was observed, as well as the improvement of solvency of an enterprise.In 2014-2015, OOO "Trubstalkomplek" at the expense of raising the efficiency of capital use, managed to improve the financial stability and make it closer to the level of the recommended meaning.
It is necessary to point out that during the period of research, there was a scarcity of liquidity means at the enterprise, which led to an insufficient level of solvency, which negatively influenced the general assessment of the financial state of the enterprise.Thus, for the further improvement of the financial state, OOO "Trubstalkomplek" should implement the policy, directed to optimization of the correlation of assets and obligations.
Summing the conducted research it is possible to assert that the integration assessment of an enterprise is the basis of forecasting of the financial state of the enterprise, as it consists of the basic indicators reflecting it comprehensively.
The possibility of dividing the integration assessment into variables financial stability, liquidity, solving and the efficient use of capital will allow to reveal the factors essentially influencing on the financial state of an enterprise and to prognosticate its activities in a dynamic perspective.In general, the generality and adequacy of the proposed approach to the integration assessment let to put it as the ground of forecasting the financial state of an enterprise.

Table 2
Correlation matrix of the financial parameters of the integration assessment of the metallurgical enterprises *

Table 1 Integration and rating assessment of the researched metallurgical enterprises of the Rostov region *
* Calculated by the authors.

Table 5 The parameters and their significance in the integration assessment of an enterprise * A parameter Weight ω i Standard meaning of a i
* Calculated by the authors.

Table 7 Classification of types of financial state depending on the meaning of integration index * The meaning integration index Financial state General characteristics of financial state
* Compited by the authors.

Table 8 Integration indicator of the financial state of OOO "Trubstalckomlekt" *
* Calculated by the authors.