Methodical Approaches to Managing Operation Costs of Companies With the Aim to Prevent Bankruptcy

Puriy Anna V. ()
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Puriy Anna V.: Kryvyi Rih Metallurgical Institute of Kryvyi Rih National University

Business Inform, 2013, issue 5, 293_298

Abstract: The article studies the modern state of methodical foundations of management of operation costs of a company and establishes that the company's bankruptcy risk is connected not only with the financial state, but also with efficiency of operation activity, which is reflected through interconnection of bankruptcy probability with the ratio of operation leverage and correlation of the borrowed and own capital at mining and smelting enterprises. It takes into account that increase of values of the operation leverage ratio results in increase of the bankruptcy risk. It identifies boundary fields of the bankruptcy risk of the mining and smelting enterprises by values of the operation leverage ratio within medium, restrained and critical risk of bankruptcy.

Keywords: operation costs; operation leverage; boundary fields; bankruptcy risk (search for similar items in EconPapers)
Date: 2013
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