IMPROVING THE MANAGEMENT OF FOREIGN ECONOMIC ACTIVITY BASED ON THE ANALYSIS OF THE FINANCIAL STATEMENTS OF INTERNATIONAL COUNTERPARTIES

Abstract

The article examines the analysis of financial statements of international companies as a tool for assessing the reliability of foreign counterparties. It is shown that sound decision-making in foreign economic activity requires not only annual and regulatory reporting, but also audit opinions, credit ratings, company registries, and open information sources. Special attention is paid to the analysis of the main IFRS reporting forms and to the calculation and interpretation of key financial ratios used to assess liquidity, solvency, profitability, and business stability. Horizontal and vertical analysis, as well as an integrated assessment of counterparty reliability taking into account financial and non-financial factors, are also considered. The study concludes that a comprehensive approach to financial statement analysis reduces counterparty risks and improves the quality of managerial decisions in international trade transactions.