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Economic Analysis: Theory and Practice
 

Enterprise turnaround: the case of the aggregates industry under modern conditions

Vol. 14, Iss. 38, OCTOBER 2015

PDF  Article PDF Version

Received: 31 July 2015

Accepted: 5 August 2015

Available online: 24 October 2015

Subject Heading: ANALYSIS OF INDUSTRIAL CAPITAL

JEL Classification: 

Pages: 25-36

Yakovleva I.V. Orenburg State University, Orenburg, Russian Federation
finp56@maill.ru

Importance Recently, building an efficient system of enterprise turnaround has become extremely important. Leaders of organizations and managers of different levels must know bankruptcy procedures and be able to assess the financial condition of enterprises based on properly performed financial analysis. Furthermore, it is necessary to perform anti-crisis diagnostics of enterprises to prevent possible bankruptcy, and, in the event of bankruptcy threat, to find possibilities for financial restructuring to renew solvency and achieve reasonable pace of development.
     Objectives The goal of the study is to identify financial instruments for the aggregates industry enterprise turnaround, in particular, on the OOO Gay Diabase Quarry case.
     
Methods I applied economic methods to analyze various aspects of financial activity in the aggregates industry on the OOO Gay Diabase Quarry case, and to build an efficient system of financial restructuring of the enterprise.
     
Results I have developed a package of economic measures to achieve a stable financial condition of the aggregates industry and to renew the solvency of OOO Gay Diabase Quarry. The economic effect from the implementation of the offered recommendations will make RUB 18,717,632.
     
Conclusions The study enables to conclude that in the event of crisis at the enterprise, developing the measures to correct the situation will help generate additional income.

Keywords: turnaround, financial restructuring, aggregates industry, insolvency, solvency

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