FINANCIAL SUSTAINABILITY: INDICATORS AND THE ROLE OF STATE-OWNED ENTERPRISES

Abstract

Financial sustainability is becoming one of the most important aspects of modern business activities, aiming to ensure long-term stability, competitiveness, and the ability of companies to adapt to a changing economic environment. Processes of globalization, increasing competition and economic fluctuations encourage organizations to seek effective financial management solutions that ensure the stable use of financial resources and reduce financial risk. The aim of this study is to examine the assessment of corporate financial sustainability and to determine why it is particularly significant for state-owned enterprises. The article presents a review of scientific literature, analysing recent studies on financial sustainability related to financial indicators, management decisions, and sustainability principles. The results of the analysis show that financial sustainability is closely related to corporate governance structures, social responsibility, the stability of financial indicators, and strategic planning. The study discusses the most commonly used indicators for evaluating financial sustainability, such as profitability, liquidity, capital structure, and working capital indicators. In addition, the influence of ESG factors and corporate governance practices on financial sustainability is examined. The paper also discusses research on the financial sustainability of state-owned enterprises and identifies possible directions for future research, particularly in the context of Lithuania. The results of the study may be useful for both researchers and practitioners seeking to enhance corporate financial sustainability and long-term business performance. The conducted research contributes to a better understanding of the financial sustainability domain and provides a basis for further studies in this field.