INCREASING ENTERPRISE PROFITABILITY THROUGH FINANCIAL REHABILITATION

Abstract

Financial rehabilitation is an important mechanism for restoring the financial health and improving the profitability of enterprises experiencing financial difficulties. In a competitive economic environment, enterprises may face declining revenues, increasing operating costs, excessive debt, insufficient liquidity, inefficient asset utilization, and weak cash-flow management. These factors can reduce profitability and negatively affect long-term business sustainability. This thesis examines the role of financial rehabilitation in increasing enterprise profitability and identifies the principal mechanisms that can be applied to restore financial stability. The study is based on a review of theoretical approaches and contemporary financial-management practices. The analysis demonstrates that effective financial rehabilitation should combine cost optimization, working-capital improvement, debt restructuring, asset utilization, revenue diversification, cash-flow management, and financial planning. The study argues that financial rehabilitation should not be limited to eliminating short-term financial difficulties but should also create conditions for sustainable profitability and long-term enterprise development. The proposed approach can be particularly relevant for enterprises with declining financial performance, high financial leverage, inefficient resource allocation, or temporary liquidity constraints.