Impact of Financial Sustainability on Enterprise Value Expansion

Abstract

As enterprises are an important component of the national economy, increasing their value is a key factor for sustainable development in the country. In world practice, there is no uniform approach to the factors that influence the value of enterprise. One of the most important factors of increasing the value of the enterprise is ensuring its financial stability through the effective use of financial resources of it. Therefore, it is important to develop a system of indicators that characterize its financial sustainability and take measures to ensure its financial sustainability in improving the value of the enterprise. In world practice, the financial performance of the sustainability of enterprises is not systematized, and in different countries these indicators differ. In assessing financial sustainability, the characteristics of enterprises are taken into account. Moreover, this poses a challenge in assessing the financial sustainability of enterprises. The article explores the theoretical aspects of enterprise value valuation and management. The impact of financial stability of enterprises on their value has been evaluated and analyzed. Proposals have been developed to ensure financial sustainability of enterprises.