Ways of improving financial stability of Valio Group

Abstract

The paper discusses the problem of increasing financial stability of the Valio Group. The main approaches for definition of financial stability were named and described for this purpose. Furthermore, the methodology of the analysis of financial stability was determined. Organizational and economic characteristics of the Valio Company were given. After that, financial stability of the company was exam-ined and evaluated. Also the impact of the Russian embargo on the financial performance of the company was described. Finally, ways of improving financial stability of the Valio Group were proposed.

The study revealed that Valio Group has a normal level of financial stability. For maintenance and improvement of the current level of financial stability and solvency of the Valio Company the following measures were recommended for implementation: - To Increase equity to assets ratio; - To Increase share of the working capital financed by owner’s equity; - To strengthen control over the debt collection; - To decrease cash in hand and at banks share in the current assets of Valio; - To strengthen control over stocks’ share in the assets of the company.