FINANCIAL CAPACITY OF ROAD ENTERPRISES — AS ONE OF THE CRITERIA FOR PARTICIPATION IN THE PROCUREMENT PROCEDUR
Authors:   M.P. Shulgin State Road Research Institute State Enterprise - DerzhdorNDI SE, Kyiv, Ukraine, Bezuglіy Artem , Hresko Ihor ,   M.P. Shulgin State Road Research Institute State Enterprise - DerzhdorNDI SE, Kyiv, Ukraine, Belska Olena ,   M.P. Shulgin State Road Research Institute State Enterprise - DerzhdorNDI SE, Kyiv, Ukraine, Kontseva Valentyna ,   M.P. Shulgin State Road Research Institute State Enterprise - DerzhdorNDI SE, Kyiv, Ukraine, Bibyk Yuliya ,   M.P. Shulgin State Road Research Institute State Enterprise - DerzhdorNDI SE, Kyiv, Ukraine
Published: October 2021

Introduction. Financial capacity is a complex concept that is influenced by various financial and economic factors and is determined by the ability of the enterprise to perform its financial activities. One of the qualification criteria provided in [1] is the financial capacity availability, which is confirmed by financial statements. When fulfilling this criterion, enterprises are allowed to participate in the procurement procedure for performing of road works or services. Today, the analysis of financial condition according to the financial statements is a needed condition for evaluation the quality of financial and economic activities of the enterprise, and the determination of financial capacity of enterprises is essential and practical, because the economic level of the enterprise and the ability to analyze financial and economic activities depend on it. Problem statement. Requirements to the tender documents are set by the customer in order to verify the bidder, his ability to ensure the implementation of the procurement project and meet all the needed requirements. The customer needs to make sure that the public funds spent on the purchase will not be lost due to the financial problems of the contractor, as well as whether the contractor has sufficient financial capacity to perform road works. The criterion of financial capacity can be applied to any procurement, because it provides confirmation of the financial capabilities of the bidder. The need to consider this topic is to evaluate the financial capacity of road enterprises, the application of theoretical and practical approaches during the evaluation. Assessing and determining the level of financial capacity of road enterprises is an important task both in view of the needs of the enterprises themselves and in view of the customers of road works and services. Purpose. The purpose of the article is to highlight the theoretical and practical approaches to evaluation of the financial capacity of road enterprises, determination of the effectiveness of their activities based on the results of the evaluation and determination of bidders that will be allowed to participate in the procurement procedure. Given the need to establish the level of financial capacity as a result of the road company’s realization of its potential, it is important to identify and justify specific indicators of financial capacity and proposals for their practical application. Materials and methods. To determine the financial capacity of road enterprises, a set of scientific and methodological tools, economic and mathematical techniques and methods based on financial and statistical information about the activities of enterprises and indicators that affect it is used. In general, the procedure for evaluation of the financial capacity of road enterprises involves the following stages: collection of needed information and data on specific indicators that will characterize the financial state of the enterprise; calculation of indicators; comparing them with normative values. The financial statements of enterprises contain information on the state of enterprise finances, based on the analysis of which the main trends in the formation and use of financial resources of the enterprise, the reasons for changes, identifying strengths and weaknesses of the enterprise are determined, as well as reserves to improve financial condition in the future. It is for the assessment of the financial capacity of road enterprises a set of indicators for analyzing the financial condition of the enterprise is formed. Financial reporting data serve as a basis for calculating indicators. Results. The paper highlights the mechanism for evaluation of the financial capacity that will help to perform a comprehensive analysis of the financial activity of road companies and determine whether the company is allowed, given its financial capabilities, to participate in road works or services procurements. Evaluation of financial indicators and ratios will help for planning and forecasting the future activities of road companies for their participation in the procurement procedure for road works or services. Conclusions. When writing of the article provides an example of evaluation of the financial capacity, as well as its significance for the activities of road enterprises is determined. The coefficients and indicators proposed in the work can be used for objective evaluation of the financial capacity of road enterprises and will allow the following: to determine the degree of solvency of road enterprises, liquidity, the level of their financial stability and business activity, to determine their creditworthiness.