IMPROVING APPROACHES TO STRENGTHENING THE FINANCIAL STABILITY OF ENTERPRISES

Abstract

Financial stability is one of the fundamental conditions for the sustainable operation, competitiveness, and long-term development of enterprises. In an environment characterized by inflationary pressures, volatile financial markets, increasing borrowing costs, supply-chain disruptions, and uncertainty in demand, enterprises need to improve not only their profitability but also their liquidity, solvency, capital structure, and risk-management systems. This article examines the main approaches to improving enterprise financial stability and develops practical recommendations for their enhancement. The study applies a systematic literature review, comparative analysis, financial-ratio approach, and synthesis of theoretical and empirical findings from international research and institutional reports. The results indicate that financial stability should be managed as an integrated system rather than through isolated improvement of individual financial indicators. Particular importance should be given to optimizing working capital, maintaining adequate liquidity reserves, diversifying financing sources, controlling financial leverage, improving profitability, introducing early-warning systems, and strengthening financial planning. The study also argues that digital financial management and scenario-based planning can significantly improve enterprises' ability to anticipate financial risks. The proposed approach can be applied by enterprises of different sizes and sectors, particularly small and medium-sized enterprises that face greater constraints in accessing external finance.