However, according to the official statistical data each
day every fourth companies faces the insolvency procedure
The data of the Latvian businessmen survey show that the
owners of small enterprises need a definite system of financial
indicators to manage efficiently the financial situation in the
company (Kuzmina, 2012).
The mentioned above circumstances have determined the
actuality of the theme of the research and have determined
the research object and subject. Research object: financial
indicators of business performance. Research subject:
a system of financial indicators to be applied in small
companies.
The aim of the paper is to make recommendations on
the development of financial indicators system on the basis
of study and generalization of the scientific publications,
and analysis of Latvian practice in the field of a company
performance, which the owners of small enterprises in Latvia
could successfully apply for evaluation of the company’s
financial position.
In order to reach the aim of the research the following
tasks have been put forward:
• to investigate the essence of financial indicators and
financial ratios, and to show their role in company
performance;
• to provide critical evaluation of the approach to the
evaluation of financial indicators used in Latvia to
assess business performance;
• to develop recommendations for designing a financial
indicators system for evaluation of a small company’s
business performance and its practical implementation.
The following methods have been used in the research:
logical analysis ad synthesis, content analysis and a
monographic method.