The Etymology of the Concept of "Financial Sustainability of an Enterprise"

The article is aimed at generalizing and substantiating the etymology of the concept of "financial sustainability of enterprise". As a result of our research, the views of domestic and foreign scholars on the essence of the concept of "financial sustainability of enterprise" were analyzed. It has been determined that financial sustainability is a key indicator of an enterprise's activity, which reflects its overall cash balance and the availability of resources necessary for stable development. It is further found that financial sustainability covers not only ensuring solvency but also rational management of financial resources, formation of a balanced asset structure, and the ability to flexibly use its resources to achieve strategic goals. We have analyzed the conceptual approaches to defining the essence of financial sustainability of an enterprise, namely: conceptual, financial, adaptive, and integrated. The conceptual approach considers financial sustainability as the ability of an enterprise to maintain stability and development in market conditions. The financial approach focuses on analyzing the capital structure, liquidity, solvency, and financial performance. The adaptive approach defines financial sustainability through the ability of an enterprise to respond promptly to changes in the external environment, maintaining an optimal balance of financial resources and risks. The integrated approach integrates all these aspects, taking into account both financial indicators and long-term sustainability and strategic perspective of the enterprise. We have studied a number of fundamental principles on which financial sustainability is based. They define its core essence and serve as the foundation for building a stable and efficient financial system. These principles include: optimal ratio of equity and borrowed capital; solvency and liquidity; ensuring profitability; diversification of income sources; balanced use of resources; adaptability to changes in the external environment; long-term financial strategy; transparency and accounting; minimization of financial risks; and financial reserves. Thanks to financial sustainability, the company is able to attract investments, preserve the trust of partners and customers, and maintain a leading position in the competitive environment.