THEORETICAL FOUNDATIONS MANAGE LIQUIDITY AND SOLVENCY

The article deals with the essence of the definitions "liquidity" and "solvency" of the enterprises. It is stated that the definitions are complementary and closely related to each other, but herewith they should be distinguished. The article provides an interpretation of the economic category "liquidity and solvency management" of the enterprise, namely, the authors of the article state that it is a process of developing and making effective management decisions by the economic entities to fulfill their obligations in full and within the established deadline at the expense of the available means of payment in order to ensure the sustainable development of the entity both in the current and future periods. Besides, the article determines the purpose and main tasks of liquidity and solvency management of the enterprise, the main steps in the process of managing the liquidity and solvency of the economic entities, as well as the main stages of their analysis. Also, the article determines and characterizes the absolute and the relative indicators with the help of which it is possible to carry out the analysis of the liquidity and solvency. There was carried an analysis of liquidity and solvency according to the groups of indicators. The analysis of liquidity and solvency of the domestic economic entities which was carried out for the period of 2013 - 2017 indicates a low level of liquidity and prospective solvency of Ukrainian enterprises. Such a situation negatively affects the efficiency of their functioning, which is due to the inability of economic entities to discharge short-term liabilities in time. This estimation was made on the basis of an analysis of liquidity and financial firmness ratios, which are the basis for drawing conclusions on prospective solvency. The authors of the article noted that liquidity and solvency management of enterprises are the important components of the financial management of business entities and that the implementation of effective liquidity and solvency management is the basis for ensuring the further development of enterprises, which in turn will affect their investment attractiveness and competitiveness. Keywords: liquidity, solvency, management, prospective solvency, liquidity and solvency ratios.