Assessment of the Financial Sustainability of Enterprises: The Case of Uzbekistan

Abstract

This chapter examines the theoretical aspects of the financial stability of enterprises with different forms of ownership. The authors' approach to the financial stability of industrial enterprises is developed. Depending on the size (large, medium, small) and specific characteristics within sectors and industries, various indicators can be employed to evaluate the degree of financial stability. According to the authors, considering the specifics of construction materials enterprises, formed by seasonality of demand, capital intensity, investment volume, transportation costs, technological processes, etc., the assessment of their financial stability is based on the definition of absolute financial stability, normative financial stability, and precrisis level of financial stability. Using this methodology, the authors analyzed the financial stability of firms operating in Uzbekistan's construction materials sector. The outcomes resulted in crafting scientific recommendations and practical guidance to improve the financial robustness of these businesses.

Citation

Burkhanov, A.U., Kurbonbekova, M.T., Usmonov, B. and Nizomiddinov, J.Z. (2024), "Assessment of the Financial Sustainability of Enterprises: The Case of Uzbekistan", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33B), Emerald Publishing Limited, Leeds, pp. 215-223. https://doi.org/10.1108/S1877-63612024000033B027