DOI: https://doi.org/10.36719/2663-4619/124/160-163
Elmar Farajov
Azerbaijan State University of Economics
bachelor
https://orcid.org/0009-0004-1441-9723
elmarfarajov@yahoo.com
The Financial Anatomy of Corporate Turnarounds
Abstract
Corporate turnarounds require a deep understanding of the financial mechanisms that determine whether a struggling company can return to stability and long-term profitability. The financial anatomy of a successful turnaround typically involves restoring liquidity, improving cash-flow discipline, restructuring debt, and realigning the cost structure with sustainable revenue levels. Effective turnaround strategies also rely on transparent financial reporting, rigorous performance monitoring, and decisive management actions to rebuild stakeholder confidence. By identifying the root causes of decline—such as excessive leverage, declining margins, operational inefficiencies, or poor capital allocation—companies can implement targeted measures that stabilize the business and set the foundation for recovery. Ultimately, the success of a turnaround depends on integrating financial restructuring with operational improvements and strategic repositioning.
Keywords: corporate turnaround, financial restructuring, liquidity management, cash flow improvement, debt restructuring, cost optimization, performance recovery, financial distress, stakeholder confidence, operational efficiency