Determining the Bancrupt Contingency as the Level Estimation Method of Western Ukraine Gas Distribution Enterprises’ Competence Capacity

The purpose of this work is to deepen the methodological provisions and develop practical recommendations with the purpose of increasing the competitiveness level of gas distribution network operators. To achieve this goal by systematizing and unifying different approaches, we developed our own approach to determining the competitiveness level of gas distribution network operators. Nowadays, most approaches and methods are formed with the obligatory use of expert assessment methods, which, in its turn, predetermines relatively subjective judgments and results. The results of our research have proven the significantly increased exigency for measures to prevent possible bankruptcy of gas distribution network operators functioning in the western region of Ukraine with the practical application of both foreign and domestic approaches. In the process of conducting a comprehensive analysis of financial and economic indicators and those reflecting the results of economic activity of gas distribution network operators functioning in the western region of Ukraine, the following approaches have been used in our study with the involvement of: 1) E. Altman’s Two-Factor Model; 2) E. Altman’s Five-Factor Model (Altman, 1977; 2020); 3) R. Lis’s bankruptcy prediction model; 4) Richard Taffler’s model; 5) W. Beaver’s coefficient; 6) O. Tereshchenko’s model; 7) Matviychuk’s model. Ultimately based on the study above, the following conclusions can be drawn as a method of assessing the of gas distribution network operators’ competitiveness: the existing models for diagnosing bankruptcy of enterprises are characterized by ambiguity; as for example, if R. Lis’s model indicates a low bankruptcy level, then other models prove the opposite situation; domestic diagnostic models need to be improved, as they were developed in the early 2000s and disregard current trends in functioning of enterprises. The article examines the methodological approaches to the level of competitiveness assessment of gas distribution network operators functioning in Ukraine. In our opinion, this fully corresponds to the thematic focus of the journal.