DIAGNOSIS OF FINANCIAL SECURITY LEVEL AS THE MAIN TOOL OF FINANCIAL STRATEGY DEVELOPMENT OF OIL-EXTRACTION COMPANIES

The article is devoted to the consideration of modern financial instruments for diagnosing the level of financial safety of companies in the oil-and-fat industry. A threetiered system for assessing financial safety has been developed for the oil-extraction companies, based on a review of modern approaches to assessing financial safety. The system includes a classic financial analysis tool (coefficient model and discriminatory bankruptcy forecasting models), a financial stability assessment tool (definition of current financial stability and modified balance model), and a value-based management model toolkit «VBM–EVA–BSC»). It has been shown that the most popular approach to diagnosing the financial safety of a company in practice is the coefficient method, which includes estimation and analysis of key financial indicators: profitability, business activity, solvency, and financial stability. On the basis of the coefficient model, a diagnosis was made of the level of financial safety of the leading domestic vegetable oilextraction companies. The consolidation of the results made it possible to develop a matrix of strategic financial position of the internal financial environment of oilextraction companies. On the basis of the trends and prospects for further development of the oil-and-fat industry of Ukraine, a matrix of the strategic financial position of the external financial environment for the companies studied has been developed, which determines their development possibilities and potential threats. The combination of the two matrices of strategic financial position of oil-extractions companies has led to the development of a matrix of possible strategic directions for their financial development, with the identification of the desired financial strategy within the framework of the desired level of financial security.

Introduction. Ukraine ranks first in the world in the production of sunflowers, covering one-third of the world market. The largest share is in the production of raw sunflower oil, 95% of which is exported. 3 Oil-and-fat industry today its 64 processing plants, 48 oil extraction plants, exports to more than 120 countries of the world, and $350 million investment. Ukraine produces an average of 6,400,000 tons of oil per year, of which 6 million are exported, which is 60% of world exports 7.
The oil-and-fat industry of Ukraine is one of the leading and mobile in the country's agro-industrial complex. Modernization of equipment, use of modern resource-saving technologies, a wide range of products, high level of competitiveness, the export orientation of the industryfeatures characterizing the contribution of this sector to the domestic economy.
There is no doubt that the problem of ensuring the financial security of oil-extraction companies has become a matter of extreme urgency in recent years. This is due not only to the financial crises and the unstable financial and economic situation in the country but also to the constant variation in energy prices and the high dependence on agriculture, which is seasonally based environmental, climatic and biological factors; high resource intensity of the industry; export-commodity orientation, which makes external market positions unstable, as demand for commodities is volatile and subject to high price volatility; increasing the cost of banking services, etc.
Consequently, the oil-extraction companies managers were faced with the search for the most convenient, quick, and easy-to-use approaches to diagnosing their financial safety level.
Setting objectives. The purpose of the article is to diagnose the level of financial safety of oil-extraction companies on the basis of the coefficient model and to develop the matrices of strategic financial position and possible strategic directions of their financial development.
Methodology. The methodology of the study is based on general scientific and empirical techniques based on a systematic approach. The methods used are comparison, analysis and synthesis, systematization, and generalization in the formulation and substantiation of research results. The information base of the research was made up of scientific works of domestic and foreign scientists, official financial statements of oil extracting enterprises under investigation, as well as other information sources on the subject of the article.
Research Results. It is common in the modern professional literature to single out different approaches to determining the nature of a companies' economic security. They can be roughly divided into five groups: as one of the components of the economic security of the company; as a separate subject of management; as a financial condition of the company, they are characterized by a corresponding resilience to external and internal threats; as a state of protection of financial interests of an company against various threats; as a risk management activity.
In the author's view, the best definition of I.O.Blank is that the financial security of an company is a quantitatively and qualitatively determined level of his financial status, which ensures stable protection of its priority balanced financial interests from identified real and potential threats of external and internal nature, the parameters of which are determined on the basis of its financial philosophy and create the necessary prerequisites for financial support for its sustainable development in the current and prospective period. [1] One of the most problematic and debatable processes to date is the process of financial diagnosis and assessment of the financial safety of an company. In the various spheres of activity of companies, a comprehensive assessment of their financial safety is highly complex from the methodological point of view and almost always raises controversial questions among scientists and practitioners. The main approaches to assessing the financial safety of an company, which are now presented in the professional literature, can be presented as follows [2,5,6,8,9,11]:  as part of the economic security of the company;  based on the definition of an integral indicator or on the calculation of financial coefficients or on the determination of the level of safety of individual financial safety components;  based on the overall financial performance of the company.
In the author's view, the third approach is the most appropriate one, and accordingly, it is advisable to use methodological approaches to diagnose the level of financial safety of domestic oil-extraction companies, which will make it possible to define the position of companies in the matrix of strategic financial position and to develop a matrix of possible strategic directions of financial development of companies in the oil-and-fat industry ( fig.1). The most popular approach to diagnosing the financial security level of a company in practical activities is the coefficient method, which includes estimation and analysis of key financial indicators: profitability, business activity, solvency, financial stability. It is on the basis of this model that it is proposed to diagnose the level of financial safety of the oil-and-fat industry of Ukraine. To this end, the author selected five oil-extraction companies for research, the reasons for which were the following: 1. Companies have been selected and grouped according to their specialization (production of sunflower oil and other vegetable oils), size of activity, type of activity, organizational and legal form of operation.
2. All selected companies are joint-stock companies. This is because the aim is to select companies that have been in the market for a long time and meet the needs of a large number of consumers and are important in the oiland-fat industry. Accordingly, the calculation of key indicators of the profitability of the oil-extraction companies showed fairly negative trends in the field, since all the companies studied had suffered losses in the last six years, profitability was very low during periods of profitability (Table 1). The business activity of a company is reflected in the speed of turnover of its working assets. The dynamics of key business indicators, shown in the table 2, showed significant problems in three out of five oil-extraction companies under investigation: PJSC "Zaporizhzhya OEP", PJSC "Kropyvnytskyi OEP" and PJSC "Pologi OEP". The aging receivable turnover period was very high compared to the accounts payable turnover period, resulting in an increase in the quality of the operational and cash conversion cycle and a persistent cash deficit. The dynamics of the key indicators of the financial sustainability of the oil-extraction companies understudy has shown that most of them do not meet generally accepted standards and have a negative downward trend, that is to say, the level of financial stability was rather low, and therefore constitutes a direct threat to their financial security ( fig.2-4). Accordingly, the type of current financial stability of the most from research oil-extraction companies was critical (Table 3). The level of solvency was sufficient only at PJSC "Zaporizhzhya OEP" throughout the research period and at PJSC "Kropyvnytskyi OEP" until the end of 2017. Other companies were insolvent at the time of the assessment, after all, all the coefficients did not meet the normative and for the most part, decreased (table 4). Table 4   Thus, on the basis of the strategic financial position matrices of oilextraction companies studied, taking into account their financial safety under the influence of internal and external factors, we can propose the following possible strategic directions for their financial development (Table 7).
In this context, it should be noted that possible strategic directions for the financial development of the oil-extraction companies under study have been proposed on the basis of the following conditions: that they will take full advantage of the industry's potential and will be able to minimize potential threats. In case the influence of external threats will be more significant and their negative influence cannot be avoided, the positions of all companies will be transferred to the plane «Stability and threats» and «Weakness and threats» with strategies of limited growth or reduction. The need for a moderate (medium) financial strategy, in the process of which the weakness of the internal financial position will be eliminated due to favourable environmental factors.
A strategy of "limited growth" is proposed.
2. PJSC "Zaporizhzhya OEP" 3. PJSC "Kropyvnytskyi OEP" 4. PJSC "ADM Illichivsk" "Power and threats" There is a choice between attacking and moderate financial strategies. External threats are neutralized due to strong internal financial potential. Strategies for "accelerated growth" or "limited growth" are proposed.

PJSC "Pology OEP"
"Stability and opportunities" The ability of the company to implement an attacking aggressive financial strategy, aimed at strengthening the main financial positions due to environmental factors.
Strategies for "accelerated growth" or "limited growth" are proposed.
Source: compiled by the author on the basis of 1,4.
Conclusions. The scientific novelty of the article consists in the formation of a scientific and methodological approach, which not only allows to assess the financial security level of companies according to the classical coefficient model, but also to develop, on this basis, strategic financial position matrices and to propose possible strategies for their further financial development.
The study made it possible to make a financial diagnosis of the level of financial safety of the leading domestic oil-extraction companies using a coefficient model. The consolidation of the results obtained on the level of profitability, business activity, solvency, and financial stability of oilextraction companies has made it possible to develop matrices of their strategic financial position in the internal and external financial environment and form a matrix of possible strategic directions for their financial development.
This study will could provide a basis for further research aimed at diagnosing the financial safety of companies using other methodological approaches: discriminant statistical models, modified balance model, and value-based management model.