Digest Finance
 

The Economic Approach to Analyzing the Financial Position of Housing and Utilities Enterprises

Vol. 24, Iss. 4, DECEMBER 2019

PDF  Article PDF Version

Received: 3 June 2019

Received in revised form: 10 June 2019

Accepted: 12 June 2019

Available online: 25 December 2019

Subject Heading: FINANCE OF ORGANIZATIONS. ANALYSIS OF ACCOUNTING SYSTEMS

JEL Classification: М49

Pages: 379–387

https://doi.org/10.24891/df.24.4.379

Serebryakova T.Yu. Cheboksary Institute of Cooperation, Branch of Russian University of Cooperation, Cheboksary, Chuvash Republic, Russian Federation
tserebryakova@rucoop.ru

https://orcid.org/0000-0003-3823-8447

Anisimov A.S. Cheboksary Institute of Cooperation, Branch of Russian University of Cooperation, Cheboksary, Chuvash Republic, Russian Federation
anisimov_alexander_sergeevich@mail.ru

ORCID id: not available

Subject Housing and utilities is a crucial industry in any economic system, since it serves people's needs. However, the reality of the market economy brings the crisis of such enterprises to the surface. Most of them are on the brink of bankruptcy, mainly due to difficulties accessing financial resources, constantly growing cost of supplies, energy, ineffective financial management, etc.
Objectives The study provides the rationale for the financial analysis of housing and utilities enterprises and sets out guidelines for enhancing their performance.
Methods We applied general methods of research, statistical and comparative methods and financial analysis. Based on the systems approach and logic generalization, we streamline prevailing views on key challenges to such enterprises. Having synthesized the findings and conducted modeling, we set out recommendations for enhancing the performance of housing and utilities enterprises.
Results The financial position of housing and utilities enterprises should be analyzed in line with the sectoral specifics.
Conclusions and Relevance Housing and utilities has its own distinctions, such as the social focus, high obsolescence of fixed assets, dependency on governmental aid, regional and climate differences, tariff regulation. The factors should be considered as part of the financial analysis and key regulatory targets of the financial position in such enterprises. The findings are designated for professional accountants, economists and financiers and may be used in their research, accounting and financial practices.

Keywords: financial analysis, housing and utilities, financial position, financial management, efficiency

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