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Assessment of economic sustainability of an enterprise

M. Thierling^a, V. G. Pluzhnikov<sup>b

a</sup> Ludwig-Geissler-School, Hanau, Germany
^b South Ural State University, Chelyabinsk, Russian Federation

Abstract: In a turbulent economy and increasing economic crises, the question of assessing the economic sustainability of a corporation is quite relevant and in demand in scientific research. At the same time, with a certain degree of conditionality, all works in this direction can be divided into two clusters: works based on traditional indicators of financial stability and ones using original scientific approaches to determining the economic condition of an enterprise. This article belongs to the works of the second cluster. The basis for assessing the economic sustainability of an enterprise is the economic and mathematical modelling of the operating activities of the enterprise based on the well-known Cobb – Douglas production function. A methodology is developed for constructing a mathematical model of the enterprise's activity, for determining elasticity indicators of output according to the resources used in the production process and elasticity of production, on the basis of the dynamics of which an approach to assessing economic stability is proposed. The methodology was tested on the data of PJSC Chelyabinsk Tube Rolling Plant during the implementation of the innovation project “Height 239”.

Keywords: mathematical modelling, economic sustainability, company, production function.

UDC: 330.322.013+001.895

MSC: 97M40

Received: 11.03.2020

Language: English

DOI: 10.14529/mmp200310

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