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Corresponding author:
1 Lviv University of Trade and Economics, Ukraine.
E-mail: gerega2000lute@ukr.net
ORCID: https://orcid.org/0000-0001-5329-6915

DOI: https://doi.org/10.30525/2661-5150/2020-3-3

MACROECONOMIC CHARACTERISTICS  
OF FINANCIAL AND ECONOMIC SUSTAINABILITY  

OF TRADE ENTERPRISES IN UKRAINE

Oleksandr Gerega1

Abstract. The relevance of the researching and ensuring financial and economic sustainability of trade is proved.  
The essential structural characteristics of financial and economic sustainability are generalized. The specifics of 
managing the financial and economic sustainability of trade business are indicated. The macroeconomic characteristics 
of financial and economic sustainability of trade in Ukraine as the volume of equity, balance currency, sales of goods 
of the trade enterprises, current assets, current liabilities and provision, own current assets of trade enterprises are 
analysed. The financial and economic sustainability of trade enterprises in Ukraine was assessed using the ratios of 
provision of current assets to own funds, provision of stocks with own funds, maneuverability of equity, mobility, 
permanent assets, financial stability and financial dependence. Purpose. The purpose of the research is to analyse 
the condition and development trends of macroeconomic characteristics of financial and economic sustainability 
of trade in Ukraine and justification proposals for public policy to stimulate its strengthening. Methodology.  
The following scientific methods were used during the research: analysis, synthesis and comparison – to research 
the prerequisites for ensuring the financial and economic sustainability of trade enterprises; statistical analysis – 
to calculate the key macroeconomic characteristics of financial sustainability and liquidity of trade enterprises; 
groupings, logical analysis, strategic management – to form priorities and means of state policy to stimulate 
the strengthening of financial and economic sustainability of trade business. Results. The low level of financial 
sustainability and liquidity of the trade sector in Ukraine has been empirically proven. It is established that a critical 
decrease in the financial and economic sustainability of the trade business occurred in 2014-2015. In 2012, the level 
of financial sustainability and liquidity of trade enterprises was the highest. Since 2016, the gradual restoration of 
financial and economic sustainability of trade business in Ukraine has begun. However, its level is still insufficient, 
which requires justification and implementation of effective measures of state regulation in this area. It is proved 
that strengthening the financial and economic sustainability of trade enterprises in Ukraine requires the formation 
and implementation of a common (state and business entities) policy aimed at strengthening the financial and 
economic sustainability of trade enterprises in Ukraine. The policy should be implemented in the following 
areas: alternative forms of the financial result formation, improvement of financial and economic attractiveness 
of enterprises, distribution of financial and economic risks with the manufacturing sector, realization of financial 
potential of domestic market by enterprises. Practical implications. The means of the state policy of stimulation 
and strengthening of financial and economic sustainability of the trade enterprises in Ukraine are defined.  
Value/originality. The methodical approach to the formation of tools and means of policy to strengthen the financial 
and economic sustainability of the country’s trade business has been further developed.

Key words: financial and economic condition, sustainability, trade enterprises, macroeconomic parameters, policy 
of financial and economic development.

JEL Classification: G32, L81, M21

1. Introduction
During the period of Ukraine’s independence, 

most macroeconomic indicators of financial and 
economic development of retail enterprises are 

improving. In some periods, the growth rate 
slowed down, the structural characteristics of 
the dynamics changed and opposite trends were 
observed. Accordingly, it is necessary to identify 



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and implement measures aimed at strengthening 
the positive and levelling of negative impacts 
on the activities of individual economic agents 
and rational socio-economic development of 
trade in general. This involves the analysis of the 
hypothetical state of the business environment due 
to the implementation of measures of the public 
policy, implementation of previously adopted 
strategic economic, scientific and technical 
decisions, general trends and processes related to 
the formation of financial and economic potential  
of trade enterprises in Ukraine for proper  
adaptation to modern world transformations.

Awareness of the shortcomings in relation to the 
financial and economic conditions of commercial 
activity of the enterprises allows us to eliminate 
the most significant objective obstacles, as well 
as to stimulate the implementation of favorable 
development factors and improve its system 
and structural characteristics. Therefore, it is 
important when researching the conditions and 
factors of development the trade enterprises in 
Ukraine to take into account not only the areas of 
its influence (positive or negative), but also its full 
value in relation to all functions of the managing 
process of the potential the financial and economic 
sustainability.

It is also necessary to take into account the role 
of state regulatory bodies in ensuring the financial 
and economic stability of commercial enterprises, 
in particular in the context of the results of the 
relevant assessment. Any conclusion of analytical 
calculations will directly determine the quality 
of government regulation and the areas in which 
it will be necessary to ensure its effectiveness and 
progress in forecast periods. At the same time, 
government regulation should primarily provide 
for the use of tools and instruments that have 
a stimulating effect on the financial and economic 
stability of commercial enterprises.

Along with the formation of the system of state 
regulation at the enterprise level, there should 
also be institutional and structural changes related 
to the optimization of financial and economic 
potential, improvement of internal organizational 
work, expansion of investment and innovation 
partnerships and more.

2. Brief literature review
The analysis of recent research and publications 

shows that the proper financial and economic 
sustainability, efficiency, and availability of 

prerequisites for the development of trade 
enterprises depend primarily on the favorable 
resource functional and market factors (Vasyltsiv 
et al., 2020; Kutsyk et al., 2018; Kachmaryk et al., 
2012).

The scientific approaches combine ideas about 
importance of resource functional factors. It 
has been taken into account when determining 
the availability, cost of involvement, levels of 
maintenance and use, as well as the characteristics 
of the current supply of trade enterprises in quality 
cash, inventories, equity, staff, retail and warehouse 
space, information, intangible assets (Staverska, 
2019; Savchenko et al., 2018; Kutsyk et al., 2016; 
Gerega, 2016; Koknayeva, 2012).

The proponents of the market approach 
characterize the availability for business entities of 
target market niches, property and rights of activity, 
as well as the volume and level of transaction costs 
in obtaining it (Delas et al., 2019; Vozniuk, 2012).

Relevant aspects of the functioning of trade 
enterprises are the subject of research by 
a number of scientists who both combine and 
share the preconditions and consequences of 
providing resources, reaching market agreements, 
etc. (Koptieva, 2020; Vasyltsiv et al., 2019; 
Kashchena, 2018; Lupak et al., 2017). However, 
the peculiarities of the modern period of economic 
development, trade and domestic market, changes 
in approaches and means of financial and resource 
support of development determine the justification 
of effective macroeconomic preconditions that 
form the financial and economic sustainability of 
trade enterprises in Ukraine.

3. Macroeconomic preconditions  
for ensuring the financial and economic 
stability of trade enterprises of Ukraine

It is known that an effective and rational state 
policy should be based on a reliable and complete 
information base that substantiates and realizes 
informed and effective management decisions 
(Kutsyk et al., 2020). In turn, the necessary 
information concerns both the quantitative 
characteristics of the current state and development 
trends in the analysed area, and the parameters of 
the institutional environment of its subjects, the 
development of its infrastructure, external and 
internal factors that determine it. All this confirms 
the importance of choosing trends that directly 
determine the level of financial and economic 
sustainability of trade enterprises.



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The financial and economic sustainability of 
entities largely depends on the amount and level 
of equity in the structure of its balance sheet. 
Therefore, it is negative that in 2010-2019 the 
amount of equity of trade enterprises in Ukraine 
decreased from 8.5 billion EUR to 6.5 billion EUR 
or decreased of 23.5 % (Figure 1). At the same time, 
the balance currency of enterprises, on the contrary, 
increased by 4.9 billion EUR (or increase of 
2.7 %). Thus, the level of equity in the total balance 
currency of trade enterprises decreased – from 
10.4 % in 2010 to 7.5% in 2019. The gap between 
the amount of equity of trade enterprises and the 
volume of its balance currency has also increased. 
If the corresponding figure was 72.9 billion EUR  
as of 2010, in 2019 it is 86.2 billion EUR .

The decrease in the amount of equity in the 
structure of the balance sheet of trade enterprises 
is evidence of the deterioration of its financial 
condition, in particular the ability to form its own 
non-current assets at its own funds. The operating 
of own non-current assets is more mobile, flexible 
and significantly cheaper to maintain.

It can be seen that in general, by 2013, the 
situation with the financial stability of domestic 
trade enterprises was improving: the amount of 

equity grew, as well as the balance currency of 
enterprises. For example, the highest values of 
its indicators were in 2012, when in the country 
in general and in trade in particular there was a  
revival of business activity largely against 
the background of the UEFA European 
Championship in Ukraine and Poland in 2012. 
It is about 108.4 billion EUR in balance currency 
and 10.4 billion EUR in equity.

It was a crisis in 2014, in particular the factors of 
the political crisis and external military aggression 
in eastern Ukraine. Thus, in 2014, the balance 
currency of trade enterprises decreased by 31.1 %. 
In absolute terms, the figure was 33.6 billion EUR . 
It is obvious that such reduction has led to 
a significant deterioration in the financial and 
economic sustainability (increasing losses) of the 
trading business due to its decapitalization. As 
a result, negative values of the amount of equity 
were obtained for enterprises in the industry.

It was possible to restore the positive value of the 
amount equity of trade enterprises only in 2017, 
when the figure was only 0.9 billion EUR . The 
coefficient of financial stability was 0.014, which 
was perhaps the worst value for the entire period of 
independence.

8,
5 9,
5

10
,4

9,
2

-1
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-2
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9 3,
2 6,

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95,7

108,4 108,1

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127,9

111,7

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114,3

167,8
173,7

155,1
147,7

-20,0

0,0

20,0

40,0

60,0

80,0

100,0

120,0

20
10

20
11

20
12

20
13

20
14

20
15

20
16

20
17

20
18

20
19

in
 E

U
R

 b
ill

io
ns

50

100

150

200

in
 E

U
R

 b
ill

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ns

Equity in EUR billions Balance currency in EUR billions Sales of goods in EUR billions

72,9

86,2
98,0

98,9

76,0

60,5 64,3
65,5

68,8

86,2

Figure 1. Equity, Balance Currency and Sales of Goods the Trade Enterprises of Ukraine in 2010-2019 

Source: State Statistics Service of Ukraine



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On the positive side, there is a tendency to 
gradually improve the financial and economic 
condition of domestic trade from 2016 to 2019.  
It was achieved through a steady increase in 
sales of goods. For example, if in 2015, the trade 
turnover amounted to 89.1 billion EUR; in 2019, it 
increased to 150.1 billion EUR . The average annual 
growth rate of trade turnover of enterprises in  
2015-2019 was about 17 %, which is quite high.

An important characteristic of the financial and 
economic sustainability of enterprises is its liquidity 
and solvency. As we can see from the information 
presented in Figure 2, during 2010-2019, in 
Ukraine trade enterprises were characterized by 
relatively acceptable liquidity, as the amount of 
current assets of enterprises exceeded the volume 
of its current liabilities.

The only exceptions were the crisis of 2014-2015, 
when current liabilities exceeded the current assets 
of trade enterprises in Ukraine. This was confirmed 
by the negative values of own current assets of trade 
entities (“minus” 1.7 billion EUR and “minus” 
1.1 billion EUR in 2014 and 2015). The improvement 
of the situation and the growth of the analyzed 
indicator in 2016-2019 were positive phenomena, 

but so far, their level has not been restored for 2012, 
when the figure was 7.4 billion EUR.

 

4. The results of assessing the financial  
and economic stability of trade enterprises  
of Ukraine

The level of liquidity of the trade business in 
2010-2019 remained insufficient in Ukraine. 
Thus, the total liquidity ratio in 2019 was only 
1.04, which is a low value, as in trade the relevant 
regulatory indicator should be 1.5-2.0. The total 
liquidity ratio for 2019 was even lower than for 
2010 (1.05). The highest value of the indicator 
was typical for 2012 – 1.09.

The general trends in terms of financial stability 
and liquidity of trade enterprises have affected 
the key parameters of financial and economic 
sustainability (Table 1). The most of the main 
indicators are unsatisfactory. These are, in 
particular, the ratios: provision of current assets 
with own funds, provision of stocks with own 
funds, permanent assets, financial stability and 
financial dependence.

Moreover, according to almost all these 
characteristics of the financial and economic 

64
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77
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,2

87
,6

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,2 6
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50

55
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1

2,8
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4,5

7,4

4,8
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0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

in
 E

U
R

 b
ill

io
ns

-5

0

5

10

15

20

in
 E

U
R

 b
ill

io
ns

Current assets in EUR billions Current liabilities and provision in EUR billions
Own current assets in EUR billions

Figure 2. Current Assets, Current Liabilities and Provision,  
Own Current Assets the Trade Enterprises of Ukraine in 2010-2019 

Source: State Statistics Service of Ukraine



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sustainability of the domestic trade business, 
the situation in 2010-2019 only worsened. Only 
indicators of maneuverability and mobility 
of enterprise capital were within more or less 
satisfactory limits.

The period of 2014-2015 was a crisis. Since 
2016, the financial and economic sustainability 
of trade enterprises in Ukraine has been gradually 
improving, but as of 2019, its acceptable level has 
not been reached yet.

5. Directions and tools of the policy  
of strengthening the financial and economic 
stability of trade enterprises in Ukraine

Thus, the state of financial and economic 
sustainability of trade enterprises in Ukraine is 
insufficient, which leads to a slowdown in business 
activity in the industry, limiting opportunities, 
internal and external investment in enterprise 
development projects, deteriorating financial and 
economic efficiency and security. This situation 
needs to be corrected by implementing a policy 
aimed at strengthening the financial and economic 
sustainability of the industry (Figure 3).

6. Conclusions
The state of financial and economic sustainability 

of trade enterprises in Ukraine has significantly 
deteriorated starting from 2014-2015. During  

2016-2019 it was characterized by a gradual 
improvement of financial and economic sustainability 
of trade enterprises. However, so far it has not been 
possible to ensure an acceptable level of financial 
and economic sustainability. In particular, evidence 
of this is below the acceptable values of such 
macroeconomic characteristics as financial stability 
and liquidity ratios: provision of current assets to 
own funds, provision of stocks with own funds, 
maneuverability of equity, mobility, permanent 
assets, financial stability and financial dependence.

Correction of this situation requires the formation 
and implementation of a common (state and 
business entities) policy aimed at strengthening the 
financial and economic stability of trade enterprises 
in Ukraine. It is appropriate that the policy is 
implemented in such areas and appropriate tools as 
(1) alternative forms of financial result formation 
(acceleration of trade turnover and reduction of 
turnover costs, increase of financial and economic 
efficiency of trade enterprises, diversification of 
trade activity), (2) improving the financial and 
economic attractiveness of enterprises (improving 
the impact of trade on spatial development, 
leveling regional and subregional disparities, 
increasing investment and innovation security 
of trade enterprises and its modernization, 
strengthening intersectoral cooperation and trade 
integration, creating food security conditions, 
creating conditions for development of trade 

Table 1
Indicators for Assessing the Financial and Economic Stability  
of the Trade Enterprises of Ukraine in 2010-2019

Years

Indicators
Ratios of 

provision of 
current assets 

with own funds

Ratios of 
provision of 
stocks with 
own funds

Ratios of 
maneuverability 

of equity

Ratios of 
mobility

Ratios of 
permanent 

assets

Ratios of 
financial 
stability

Ratios of 
financial 

dependence

Recommended values
> 0.1 0.5-0.8 0.3-0.5 > 0.5 reduction > 0.8 < 0.5

2010 0.048 0.250 0.367 4.114 1.863 0.117 0.891
2011 0.062 0.309 0.503 4.457 1.822 0.111 0.895
2012 0.082 0.410 0.716 4.959 1.753 0.106 0.904
2013 0.051 0.250 0.489 4.277 2.230 0.093 0.915
2014 -0.028 -0.133 1.137 4.790 -8.423 -0.020 1.020
2015 -0.022 -0.092 0.382 5.625 -3.133 -0.046 1.048
2016 0.002 0.010 -0.124 6.358 -8.951 -0.015 1.015
2017 0.026 0.102 1.676 6.197 10.555 0.013 0.987
2018 0.026 0.100 0.507 6.729 2.937 0.046 0.956
2019 0.038 0.149 0.430 6.184 1.843 0.082 0.924

Source: State Statistics Service of Ukraine



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entrepreneurship), (3) distribution of financial 
and economic risks with the manufacturing sector 
(increasing the impact of trade enterprises on the 
domestic real sector of the economy, the formation 
of investment resources for development), (4) 
realization of the financial potential of the domestic 
market structural characteristics, ensuring the 
balanced development of trade infrastructure, the 
impact on the formation of effective demand). At 

ToolsDirections (guidelines) 
of policy

Alternative forms of 
formation  

the financial result 

Distribution of financial and 
economic risks with the 

manufacturing sector

Realization of the financial 
potential of the internal
market by enterprises

 accelerating turnover and reducing the cost of
circulation;
 increasing the financial and economic efficiency of trade
enterprises;
 diversification of trade activities

 growing the influence of trade enterprises on the
domestic real sector of the economy;
 formation of investment resources for development

 increasing the level of influence of trade enterprises on
the domestic market and improving its structural
characteristics;
 ensuring the balanced development of trade
infrastructure;
 influence on the formation of effective demand

Improving 
the financial and investment 

attractiveness of
trade enterprises

 improving the level of trade impact on spatial
development, levelling regional and subregional
disparities;
 growth of investment and innovation provision of trade
enterprises and its modernization;
 strengthening intersectional cooperation and trade
integration, creating preconditions for food security;
 creating conditions for the development of trade entrerp.

Figure 3. The Directions and Tools of the Policy of Strengthening the Financial  
and Economic Sustainability of Trade Enterprises in Ukraine

the same time, this is not the final list of directions 
and instruments of the policy of strengthening 
the financial and economic stability of trade 
enterprises in Ukraine, because as globalization 
trends intensify, each of them will need to change or 
lose relevance. Thus, the following studies should 
focus on improving the policy of strengthening the 
financial and economic stability of Ukrainian trade 
enterprises.

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