An Approach to Predicting the Insolvency of Ukrainian Steel Enterprises Based on Financial Potential

This paper outlines the importance of defining the level of the financial potential of Ukrainian steel enterprises as a factor in preventing their financial insolvency. The findings support the selection of appropriate indexes as proxies for quantitative characteristics to determine the financial potential of companies in this industry. Levels of the financial potential of Ukrainian steel enterprises were defined using neural network technologies. The rules of ‘insolvency levels classification’ from an enterprise perspective were designed considering the combined effects of internal factors, relating to the enterprise’s financial activity, as well as external environmental factors. Such an approach offers the evaluation of the potential of an enterprise’s insolvency, taking into account its current state and the reserves for restoring its financial stability.