Critical financial situation. How to determine the financial condition of a person

preliminary assessment the financial condition of the enterprise is carried out according to the balance sheet of the enterprise, using its vertical, horizontal analysis. Vertical analysis makes it possible to characterize the structure of generalizing final indicators. An obligatory element of the analysis is the dynamic series of these values, which makes it possible to monitor and predict structural shifts in the composition of economic assets and sources of their coverage.

Horizontal analysis allows you to identify trends in individual articles or their groups that are part of financial statements. This balance is based on the calculation of the basic growth rates of balance sheet items.

According to form No. 1 of the annual report "Balance of the enterprise", changes in the composition of the property of the enterprise and the sources of its formation are determined. For this purpose, the ratios of individual items of the asset and liability of the balance sheet, their specific gravity in the balance sheet currency, calculate the amount of deviations in the structure of the main balance sheet items compared to the previous period.

The information provided in the liabilities side of the balance sheet makes it possible to determine what changes have occurred in the structure of equity and borrowed capital, how much long-term and short-term borrowed funds are involved in the turnover of the enterprise, that is, the liabilities side of the balance sheet shows where the funds came from, to whom the company owes them.

The financial condition of the enterprise largely depends on what funds it has at its disposal and where they are invested. The need for own capital is due to the requirement of self-financing of enterprises. It is the basis of the autonomy and independence of the enterprise. However, it should be borne in mind that financing the activities of an enterprise only at its own expense is not always beneficial for it, especially in cases where the demand for the enterprise's products is seasonal. Then in separate periods will accumulate big money on bank accounts, and in other periods they will be lacking.

At the same time, if the company's funds are created mainly from short-term liabilities, then its financial position will be unstable, since with short-term capital, constant operational work is needed to control their timely return and to attract other capital into circulation for a short time.

Therefore, how optimal the ratio of equity and debt capital depends largely on the financial position of the enterprise. Developing the right financial strategy will help many businesses improve their performance.

The balance sheet asset contains information about the placement of capital at the disposal of the enterprise, that is, about investing it in specific property and material values, in the expenses of the enterprise for the production and sale of products, on the balance of free cash.

There is a close relationship between the assets and liabilities of the balance sheet. Each item of the asset balance has its own sources of funding. As a rule, the source of financing for long-term assets is equity and long-term borrowed funds. Current assets are formed due to how equity as well as short-term borrowings. It is desirable that these funds be half formed from equity, half from borrowed capital.

In accordance with the indicator of the provision of reserves and costs with own and borrowed sources, the following types financial stability:

absolute stability of the financial condition (very rare) - own working capital provides reserves;

normal financial condition- reserves are secured by the amount of own working capital and long-term borrowed sources;

unstable financial condition - reserves are provided at the expense of own working capital, long-term borrowed sources and short-term loans and borrowings, i.e. at the expense of all main sources of formation;

crisis financial condition - stocks are not provided with sources of their formation; The company is on the verge of bankruptcy.

At the same time, financial instability is considered acceptable if the following conditions are met:

A) inventory plus finished products equal or exceed the amount of short-term loans and borrowings involved in the formation of reserves;

B) deferred expenses are equal to or less than the amount of own working capital.

If these conditions are not met, then there is a tendency for the financial condition to deteriorate.

The financial stability of an enterprise is the stability of the enterprise's activities in the light of a long-term perspective.

The stability of the financial condition of the enterprise can be restored by accelerating the turnover of capital in current assets, as a result of which there will be a relative reduction in its turnover ruble; justified reduction of stocks and costs; replenishment of own working capital at the expense of internal and external sources.

One of the indicators characterizing the financial condition of an enterprise is its solvency, that is, the ability to pay off its payment obligations in cash.

Solvency analysis is necessary not only for the enterprise in order to assess and forecast financial activities, but also for external investors.

The assessment of solvency is carried out on the basis of the characteristics of the liquidity of current assets, that is, the time required to turn them into cash. The concepts of solvency and liquidity are very close, but the second is more capacious. Solvency depends on the degree of liquidity of the balance sheet. At the same time, liquidity characterizes not only the current state of settlements, but also the prospects.

The solvency of an enterprise only at first glance comes down to the availability of free Money required to pay off obligations. In the absence of funds, enterprises can maintain their solvency if they sell part of their property and can pay off their obligations for the proceeds.

Analyzing the state of solvency of the enterprise, it is necessary to consider the causes of financial difficulties, the frequency of their formation and the duration of overdue debts. Reasons for insolvency may include:

Failure to fulfill the plan for the production and sale of products;

Cost increase;

Non-fulfillment of the profit plan - and as a result - lack of own sources of self-financing of the enterprise;

High percentage of taxation;

Diversion of funds into receivables;

Investment in excess reserves.

The solvency of an enterprise is closely related to the concept of creditworthiness. Creditworthiness is such a financial condition that allows you to get a loan and repay it on time.

When assessing creditworthiness, the reputation of the borrower, the size and composition of his property, the state of the economic and market conditions, and the stability of the financial condition are taken into account.

An enterprise is declared insolvent if one of the following conditions is met:

1) the current liquidity ratio at the end of the reporting period is below the standard value for the relevant industry

2) coefficient of provision with own working capital below the industry standard

3) coefficient of restoration (loss) of solvency<1.

If the value of these coefficients exceeds standard values, then this indicates a critical situation in which the enterprise will not be able to pay off its obligations, even having sold all its property. This situation can lead to a real threat of liquidation of the enterprise through bankruptcy.

Questions:

1. Goals, objectives and methods of analyzing the financial condition

2. Analysis of property and sources of its financing

3. Analysis of liquidity and solvency

4. Analysis of financial stability

5. Analysis of the financial results of the enterprise

6. Motion analysis cash flows

7. Analysis of the business activity of the enterprise

8. Assessment of the probability of bankruptcy

1. Goals, objectives and methods of analyzing the financial condition

The financial position is the most important characteristic of the business activity and reliability of the enterprise. The results of economic analysis provide an answer to the question, what are the most important ways improving the financial condition of the enterprise in a specific period of its activity. The purpose of the analysis is not only to establish and evaluate the state of the enterprise, but also to constantly carry out work aimed at improving it.

Main tasks financial analysis enterprises are:

The share of own funds in current assets is more than 10%,

No uncovered losses, overdue debts, etc.

Indicators of structure and dynamics balance sheet are important for understanding the overall picture of the financial condition. Comparing structural changes in assets and liabilities, we can conclude through which sources the inflow of new funds was and in which assets these funds were invested. The deterioration of the financial situation can be judged by the unfavorable ratio between the value of current assets and short-term liabilities. The difference between them will show the presence (+) or lack (-) of own working capital.

When analyzing assets, you should find out what types of assets have changed the total value of the property. At the same time, it is preferable to increase the share of current assets as the most liquid part of the property and their faster growth compared to non-current assets.

A more detailed assessment of the composition, structure and dynamics of working capital will make it possible to draw reasonable conclusions about the mobility of current assets, possibly unreasonable diversion of funds into receivables or illiquid stocks of inventory.

Comparing the rate of change in stocks on the balance sheet and sales proceeds, we can conclude that the turnover of current assets is accelerating or slowing down. The decrease in the share of mobile funds, the slowdown in the turnover of current assets indicate a deterioration in the financial condition.

Analysis of structure and dynamics liabilities allows you to establish the possible causes of financial stability (instability) of the organization. At the same time, they evaluate changes in sources financial resources. The attraction of a share of equity from any of the sources helps to increase the financial stability of the organization, and the presence of retained earnings is considered as a source of replenishment of working capital and a reserve for reducing the level of accounts payable, as a margin of financial strength.

It is necessary to evaluate in detail the dynamics and structure of borrowed funds, especially short-term ones, using, if necessary, data on their composition contained in the appendix to the balance sheet. At the same time, attention is paid to the sharp increase in the most dangerous types of debt for the financial condition (to the budget and off-budget funds, overdue debt).

It is advisable to compare not only the absolute amounts, but also the growth rates of receivables and payables, since they must balance each other.

The deterioration of the financial position of the organization can be judged by the change in receivables and payables:

The sharp growth and increase in the share of receivables in the composition of current assets means a deterioration in the state of settlements, weakening control over the timeliness of settlements, and a decrease in balance sheet liquidity;

Sharp differences in the dynamics and amounts of receivables and payables may mean a violation in payment discipline, imbalances between receivables and payables.

Analysis of the dynamics of the balance sheet, the structure of assets and liabilities allows us to draw conclusions about the financial position of the organization. A decrease in the size of the balance sheet currency for the reporting period may indicate a decrease in the turnover of funds, a decrease in property potential under the influence of various factors (the insolvency of an organization or its partners, the sale of a part of assets, etc.). In stable conditions of activity, an increase in the total balance sheet is evaluated positively, and a decrease is negatively.

3. Analysis of liquidity and solvency

The financial condition of organizations can be assessed on the basis of consolidated items of the balance sheet of indicators, which are combined into four groups:

1) indicators of liquidity and solvency;

2) indicators of financial stability;

3) indicators of business activity;

4) indicators of profitability.

The first group includes indicators of liquidity and solvency.

Solvency of the enterprise called his readiness to repay debts in the event of a simultaneous demand for payments from all creditors. To determine the readiness to repay their debt, indicators of the organization's solvency and balance sheet liquidity are used.

This indicator measures financial risk, that is, the probability of bankruptcy. In general, an organization is considered solvent if its total assets exceed its external liabilities. Therefore, the more total assets exceed external liabilities, the higher the degree of solvency. Here are the indicators of liquidity and solvency:

Indicators	Method of calculation	Comment
1. Solvency ratio	current assets Long-term + short-term liabilities	Shows the ability to cover their debts at the expense of current assets, without resorting to the sale of property. More than 1.
2. Total liquidity ratio	current assets Short-term liabilities	Shows the extent to which liabilities are covered by current assets. It characterizes the ability to pay off debts. 2 to 3.
3. Quick liquidity ratio	Fast-liquid current assets Short-term liabilities	Determines the organization's ability to meet obligations from liquid assets. From 0.7 to 1.
4. Absolute liquidity ratio	Den. funds + briefly urgent fin. investments Short-term liabilities	It characterizes the ability of the organization to pay off the debt immediately. The higher it is, the more reliable the organization. From 0.2 to 0.3.
5. Equity ratio	Equity - Fixed assets current assets	Shows how much own working capital accounts for 1 ruble of current assets. Value greater than 0.1.
6. The ratio of accounts payable and receivable	Creditor debt Accounts receivable debt	Shows how many times accounts payable exceeds accounts receivable. The higher the indicator, the greater the dependence on creditors.

These figures are of interest not only for the management of the enterprise, but also for external subjects of analysis: absolute liquidity ratio - for suppliers of raw materials and materials, quick liquidity ratio - for banks, general liquidity ratio - for investors.

Analysis of the liquidity of the balance - a comparison of funds for the asset, grouped by the degree of decreasing liquidity, with short-term liabilities for liabilities, which are grouped by the degree of urgency of their repayment.

The first group (A 1) includes absolutely liquid assets, such as cash and short-term financial investments.

The second group (A 2) includes quickly realizable assets: goods shipped, receivables, taxes on acquired values. Their liquidity depends on the timeliness of shipment of products, forms of payment, demand for products, solvency of buyers, etc.

The third group (A 3) is slowly realizing assets (industrial stocks, work in progress, finished products). A much longer period will be needed to convert them into cash.

The fourth group (A 4) is hard-to-sell assets (fixed assets, intangible assets, long-term financial investments, construction in progress, long-term receivables).

Accordingly, obligations are divided into four groups:

P 1 - the most urgent obligations (accounts payable and bank loans, the repayment period of which has come, overdue payments);

P 2 - short-term bank loans and loans;

P 3 - long-term bank loans and loans;

P 4 - equity capital at the disposal of the enterprise.

The balance is considered absolutely liquid if:

A x >P 1 ; A 2 >P 2 ; A 3 >P 3 ; A 4<П 4 .

The study of the ratios of groups of assets and liabilities for a number of periods will allow us to establish trends in the structure of the balance sheet and its liquidity.

4. Analysis of financial stability

The financial condition of the organization must be assessed not only in the short term, as shown by solvency indicators, but also in the long term by calculating financial stability indicators. Here are the indicators of financial stability:

Indicators

Method of calculation

Application for assessment of the financial condition of the enterprise

It is one of the key points of its assessment, as it serves as the basis for understanding the true state of the enterprise. Financial analysis is the process of researching and evaluating an enterprise in order to develop the most reasonable decisions for its further development and understanding of its current state.Under the financial condition refers to the ability of the company to finance its activities. It is characterized by the availability of financial resources necessary for normal functioning enterprises, the feasibility of their placement and efficiency of use, financial relationships with other legal and individuals, solvency and financial stability.The results of financial analysis directly affect the choice of valuation methods, forecasting the income and expenses of the enterprise, determining the discount rate used in the discounted cash flow method, and the value of the multiplier used in the comparative approach.

Analysis of the financial condition of the enterprise includes analysis of balance sheets and reports on financial results the work of the enterprise being assessed for the past periods to identify trends in its activities and determine the main financial indicators.

Analysis of the financial condition of the enterprise involves the following steps:

Analysis of property status
Analysis of financial results
Analysis of the financial condition

1. Analysis of property status

In the course of the functioning of the enterprise, the value of assets, their structure undergo constant changes. The most general idea of the qualitative changes that have taken place in the structure of funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting.

Vertical analysis shows the structure of enterprise funds and their sources. Vertical analysis allows you to move on to relative estimates and conduct economic comparisons of the economic performance of enterprises that differ in the amount of resources used, smooth out the impact of inflationary processes that distort absolute indicators financial reporting.

Horizontal analysis of reporting consists in the construction of one or more analytical tables in which absolute indicators are supplemented by relative growth (decrease) rates. The degree of aggregation of indicators is determined by the analyst. As a rule, basic growth rates are taken for a number of years (contiguous periods), which makes it possible to analyze not only the change in individual indicators, but also to predict their values.

Horizontal and vertical analyzes complement each other. Therefore, in practice, it is not uncommon to build analytical tables that characterize both the structure of financial statements and the dynamics of its individual indicators. Both of these types of analysis are especially valuable in inter-farm comparisons, as they allow you to compare the statements of enterprises that differ in type of activity and production volumes.

2. Analysis of financial results

Profitability indicators are relative characteristics of the financial results and performance of the enterprise. They measure the profitability of an enterprise from various positions and are grouped according to the interests of the participants in the economic process, market volume. Profitability indicators are important characteristics of the factor environment for the formation of profits and income of enterprises. The effectiveness and economic feasibility of the operation of an enterprise are measured by absolute and relative indicators: profit, gross income, profitability, etc.

3. Analysis of the financial condition

3.1. Assessment of the dynamics and structure of balance sheet items

The financial condition of the enterprise is characterized by the placement and use of funds and sources of their formation.For a general assessment of the dynamics of the financial condition, the balance sheet items should be grouped into separate specific groups on the basis of liquidity and maturity of obligations (aggregate balance sheet). On the basis of the aggregated balance sheet, an analysis of the structure of the enterprise's property is carried out. Directly from the analytical balance sheet, you can get a number of the most important characteristics of the financial condition of the enterprise.Dynamic analysis of these indicators allows you to set their absolute increments and growth rates, which is important for characterizing the financial condition of the enterprise.

3.2. Analysis of liquidity and solvency of the balance sheet

The financial position of the enterprise can be assessed from the point of view of the short and long term. In the first case, the criteria for assessing the financial position are the liquidity and solvency of the enterprise, i.e. the ability to timely and in full make settlements on short-term obligations.The task of analyzing the liquidity of the balance sheet arises in connection with the need to assess the creditworthiness of the organization, i.e. its ability to timely and fully pay all its obligations.

Balance sheet liquidity is defined as the extent to which an organization's liabilities are covered by its assets, the maturity of which is equal to the maturity of the liabilities. Liquidity of the balance sheet should be distinguished from the liquidity of assets, which is defined as the temporary value necessary to convert them into cash. The less time it takes for this type of asset to turn into money, the higher their liquidity.

Solvency means that the enterprise has cash and cash equivalents sufficient to pay for accounts payable requiring immediate repayment. Thus, the main signs of solvency are: a) the presence of sufficient funds in the current account; b) the absence of overdue accounts payable.

Obviously, liquidity and solvency are not identical to each other. Thus, liquidity ratios may characterize the financial position as satisfactory, however, in essence, this assessment may be erroneous if a significant proportion of current assets falls on illiquid assets and overdue receivables.

Depending on the degree of liquidity, i.e. the rate of conversion into cash, the Company's assets can be divided into the following groups:

A1. Most liquid assets- these include all items of cash assets of the enterprise and short-term financial investments. This group is calculated as follows: (line 260+line 250)

A2. Quick Selling Assets- accounts receivable, payments on which are expected within 12 months after the reporting date: (line 240+line 270).

A3. Slow selling assets- items of section II of the balance sheet asset, including inventories, value added tax, receivables (payments for which are expected more than 12 months after the reporting date) and other current assets:

A4. Difficult-to-sell assets- articles of section I of the balance sheet asset - non-current assets: (line 110 + line 120-line 140)

Liabilities of the balance are grouped according to the degree of urgency of their payment.

P1. Most urgent obligations- these include accounts payable: (line 620 + line 670)

P2. Short-term liabilities- these are short-term borrowed funds, and other short-term liabilities: (line 610 + line 630 + line 640 + line 650 + line 660)

P3. Long-term liabilities- these are balance sheet items related to sections V and VI, i.e. long-term loans and borrowings, as well as debt to participants for the payment of income, deferred income and reserves for future expenses: (line 510 + line 520)

P4. Permanent liabilities or sustainable- these are articles of the IV section of the balance sheet "Capital and reserves". (p. 490-p. 217). If the organization has losses, then they are deducted:

To determine the liquidity of the balance sheet, one should compare the results of the above groups for assets and liabilities.

The balance is considered absolutely liquid if the following ratios take place:

A1 > P1; A2 > P2; A3 > P3; A4

If the first three inequalities are satisfied in this system, then this entails the fulfillment of the fourth inequality, so it is important to compare the results of the first three groups by asset and liability.

In the case when one or more inequalities of the system have opposite sign from fixed in the best option, the liquidity of the balance to a greater or lesser extent differs from the absolute. At the same time, the lack of funds in one group of assets is compensated by their surplus in another group in value, but in a real situation, less liquid assets cannot replace more liquid ones.

Further comparison of liquid funds and liabilities allows us to calculate the following indicators:

Current liquidity of TL, which indicates the solvency (+) or insolvency (-) of the organization for the nearest time period to the moment in question:

TL \u003d (A1 + A2) - (P1 + P2)

Prospective liquidity of PL is a forecast of solvency based on a comparison of future receipts and payments:

PL \u003d A3 - P3

The analysis of financial statements and liquidity of the balance sheet carried out according to the above scheme is approximate. More detailed is the analysis of financial indicators and ratios.

3.3. Analysis of financial independence and capital structure

An assessment of the financial condition of an enterprise will be incomplete without an analysis of financial stability. Financial independence - a certain state of the company's accounts, guaranteeing its constant solvency.

Analysis financial independence on a particular date allows you to answer the question: how well the organization managed financial resources during the period preceding this date. The essence of financial independence is determined by the effective formation, distribution and use of financial resources. An important indicator, which characterizes the financial condition of the enterprise and its independence is the availability of material working capital own sources, i.e. financial independence is the provision of reserves with sources of their formation, and solvency is its external manifestation. It is important not only the ability of the enterprise to return borrowed funds, but also its financial stability, i.e. financial independence of the enterprise, the ability to maneuver with its own funds, sufficient financial security for an uninterrupted process of activity.

The tasks of analyzing the financial stability of an enterprise are to assess the size and structure of assets and liabilities - this is necessary in order to find out:

a) how independent the enterprise is from a financial point of view;

b) the level of this independence is growing or decreasing and whether the state of assets and liabilities meets the objectives of the financial economic activity enterprises.

Financial independence is characterized by a system of absolute and relative indicators. Absolute are used to characterize the financial situation arising within the same enterprise. Relative - to characterize the financial situation in the economy, they are called financial ratios.

The most general indicator of financial independence is the excess or lack of a source of funds for the formation of reserves. The meaning of the analysis of financial independence using an absolute indicator is to check what sources of funds and in what amount are used to cover stocks.

Need help assessing? Contact us using . Call now! It is profitable and convenient to work with us!

We hope to see you among

An enterprise is an independent economic entity created to conduct economic activities that are carried out in order to make a profit and meet social needs.

Under the financial condition of the enterprise refers to the ability of the enterprise to finance its activities. It is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the expediency of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability.

The financial condition of the enterprise can be stable, unstable and crisis. The ability of the enterprise to make payments in a timely manner, to finance its activities on an expanded basis, indicates its good financial condition. The financial condition of the enterprise depends on the results of its production, commercial and financial activities. If the production and financial plans are successfully implemented, then this has a positive effect on the financial condition of the enterprise, and, conversely, as a result of the failure to fulfill the plan for the production and sale of products, its cost increases, revenue and the amount of profit decrease, therefore, the financial condition of the enterprise and its solvency deteriorate. .

A stable financial position, in turn, has a positive impact on the performance production plans and providing the needs of production with the necessary resources. Therefore, financial activity component economic activity is aimed at ensuring the planned receipt and expenditure of financial resources, the implementation of settlement discipline, the achievement of rational proportions of own and borrowed capital and its most efficient use. The main purpose of financial activity is to decide where, when and how to use financial resources for effective development production and maximizing profits.

In order to survive in a market economy and prevent the bankruptcy of an enterprise, you need to know well how to manage finances, what the capital structure should be in terms of composition and sources of education, what share should be occupied by own and borrowed funds. You should also know such concepts of a market economy as business activity, liquidity, solvency, enterprise creditworthiness, profitability threshold, financial stability margin (safety zone), degree of risk, effect financial leverage and others, as well as the method of their analysis.

Therefore, financial analysis is an essential element financial management and audit, Almost all users of financial statements of enterprises use the methods of financial analysis to make decisions to optimize their interests.

The owners analyze the financial statements to increase the return on capital, ensure the stability of the firm's improvement. Lenders and investors analyze financial reports to minimize their risks on loans and deposits. We can firmly say that the quality of the decisions made depends entirely on the quality of the analytical justification of the decision.

The purpose of the analysis is not only to establish and evaluate the financial condition of the enterprise, but also to constantly carry out work aimed at improving it. Analysis of the financial condition of the enterprise shows in what areas this work should be carried out, makes it possible to identify the most important aspects and the weakest position in the financial condition of the enterprise. In accordance with this, the results of the analysis provide an answer to the question of what are the most important ways to improve the financial condition of an enterprise in a particular period of its activity. But the main purpose of the analysis is to timely identify and eliminate shortcomings in financial activity and find reserves for improving the financial condition of the enterprise and its solvency. To assess the stability of the financial condition of the enterprise, whole system indicators characterizing changes:

capital structure of the enterprise for its placement to the sources of education;

efficiency and intensity of its use;

solvency and creditworthiness of the enterprise;

stock of its financial stability.

The indicators should be such that all those associated with the enterprise economic relations, could answer the question of how reliable the company is as a partner and, therefore, make a decision on the economic profitability of continuing relations with it. An analysis of the financial condition of an enterprise is based mainly on relative indicators, since absolute balance indicators in terms of inflation are almost impossible to bring into a comparable form. Relative indicators can be compared with:

generally accepted “norms” for assessing the degree of risk and predicting the possibility of bankruptcy;

similar data from other enterprises, which makes it possible to identify strong and weak sides enterprise and its capabilities;

similar data for previous years to study the trend of improvement or deterioration in the financial condition of the enterprise.

The main tasks of the analysis:

timely identification and elimination of shortcomings in financial activities, and the search for reserves to improve the financial condition of the enterprise, its solvency;

forecasting possible financial results, economic profitability, based on the real conditions of economic activity and the availability of own and borrowed resources, development of models of financial condition in case of variety of options resource use;

development of specific activities aimed at more effective use financial resources and strengthening the financial condition of the enterprise.

The analysis of the financial condition of the enterprise is carried out not only by the managers and relevant departments of the enterprise, but also by its founders, investors in order to study the efficiency of the use of resources, banks to assess credit conditions and determine the degree of risk, suppliers to receive payments in a timely manner, tax inspections to fulfill the plan for the receipt of funds to the budget, etc.

The main purpose of financial analysis is to obtain a small number of key (most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors. At the same time, the analyst and the manager (manager) may be interested in both the current financial condition of the enterprise and its projection for the near or more distant future, i.e. expected parameters of the financial condition.

But not only time limits determine the alternativeness of the goals of financial analysis. They also depend on the goals of the subjects of financial analysis, i.e. specific users of financial information.

The objectives of the analysis are achieved as a result of solving a certain interrelated set of analytical tasks. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. Ultimately, the main factor is the volume and quality of the initial information. At the same time, it should be borne in mind that the periodic accounting or financial statements of an enterprise are only “raw information” prepared during the implementation of accounting procedures at the enterprise.

To make management decisions in the field of production, marketing, finance, investment and innovation, management needs constant business awareness on relevant issues, which is the result of the selection, analysis, evaluation and concentration of the original raw information, an analytical reading of the source data is necessary based on the goals of analysis and management. .

The basic principle of analytical reading of financial statements is the deductive method, i.e. from the general to the particular, but it must be applied repeatedly. In the course of such an analysis, as it were, the historical and logical sequence of economic facts and events, the direction and strength of their influence on the results of activity are reproduced.

Introduction of a new chart of accounts accounting, bringing the forms of financial statements in line with the requirements international standards necessitates the use new methodology financial analysis, corresponding to the conditions of a market economy. This technique is needed for informed choice business partner, determining the degree of financial stability of the enterprise, assessing business activity and efficiency entrepreneurial activity.

The main (and in some cases the only) source of information about the financial activities of the enterprise is the financial statements, which have become public. The reporting of an enterprise in a market economy is based on a generalization of financial accounting data and is an information link connecting the enterprise with society and business partners, users of information about the activities of the enterprise.

In certain cases, to achieve the goals of financial analysis, it is not enough to use only financial statements. Separate user groups, such as management and auditors, have the opportunity to involve additional sources (production and financial accounting data). However, most often annual and quarterly reports are the only source of external financial analysis.

The methodology of financial analysis consists of three interrelated blocks:

1) analysis of the financial results of the enterprise;
2) analysis of the financial condition;
3) analysis of the effectiveness of financial and economic activities.

The main source of information for the analysis of the financial condition is the balance sheet of the enterprise (Form N1 annual and quarterly reporting). Its importance is so great that the analysis of the financial condition is often called the analysis of the balance sheet. The source of data for the analysis of financial results is the report on financial results and their use (Form No. 2 of annual and quarterly reporting). The source of additional information for each of the blocks of financial analysis is the balance sheet (Form N 5 of the annual reporting).

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru/

Financial positionorganizations

Under financial position refers to the ability of an enterprise to finance its activities. The financial condition characterizes a set of indicators reflecting the availability, placement and use of the financial resources of the enterprise, as well as the state of capital in the process of its circulation.

The stability of the financial position is achieved with the sufficiency of own capital, good quality assets, high business activity of the enterprise, a sufficient level of profitability, stable income and opportunities attraction of borrowed funds.

The financial position of the enterprise is evaluated, first of all, by its financial stability and payment method b ness . Financial stability of the enterprise - is the ability to function and develop, to maintain a balance of their assets and liabilities in a changing internal and external environment guaranteeing its constant solvency. Pla solvency reflects the ability of the enterprise to pay its debts and obligations in a given specific period of time.

There are 4 types of financial stability:

Absolute financial stability

SOBC - Z? 0

Normal financial stability

(SOBK + Dl.Z.) - Z? 0

Unstable financial condition

(SOBK + Dl.Z. + Kr.Z) - Z? 0

If the result of the calculation is negative meaning, this is indicative of a crisis.

SOBC - own working capital;

З - stocks (costs);

L.Z. - long-term credits and loans

Kr.Z - short-term credits and loans

The purpose of studying the financial position of the enterprise consists in finding additional funds for the most rational and economical management of economic activity. A stable financial condition is the result of skillful management of the whole complex of factors that determine the results of the financial and economic activities of the enterprise. An essential role in solving these issues belongs to financial analysis.

Main factors that determine the financial condition are, First of all, performance financial plan and replenishing, as necessary, own working capital from profits and, Secondly, turnover rate of working capital. The implementation of the financial plan mainly depends on the results of the production and marketing activities of the enterprise as a whole.

The main sources of information for financial analysis are accountingltersky reporting: form No. 1 "Balance sheet", form No. 2 "Profit and loss statement", form No. 3 "Statement of the movement of funds and other funds", form No. 4 "Statement of cash flows", form No. 5 "Appendix to the accounting balance."

An analysis of the financial situation is recommended to be carried out in the next e consistency.

Stage 1. Analysis of current liquidity and provision with own working capital.

In accordance with Chapter 3 "Instructions for the analysis and control of the financial condition and solvency of business entities" recognition of the structure balance sheet unsatisfactory, and the organization is insolvent, it is necessary to simultaneously comply with the following conditions:

The current liquidity ratio at the end of the reporting period, depending on the industry affiliation of the organization, has a value below the standard;

The coefficient of provision with own working capital at the end of the reporting period, depending on the sectoral affiliation of the organization, has a value less than the norm.

Stage 2. Analysis of the dependence of the established insolvency of the organization on the debt of the state to it.

The debt of the state to the organization is understood as the obligations of the executive authority of the Republic of Belarus not fulfilled in time to pay for the order, the execution of which the organization is not entitled to refuse. On the basis of documents for each of the state obligations not fulfilled on time, the volumes of state debt and the timing of their occurrence are determined, if the submitted documents do not prove the presence of state obligations not fulfilled on time, the dependence of the organization's insolvency on the state's debt to it is considered not established.

Stage 3. Endowment analysis financial obligations assets.

The asset coverage ratio of financial liabilities characterizes the organization's ability to pay off its financial liabilities after the sale of assets and is determined by the ratio of all the organization's liabilities to total cost property (normative value for all sectors of the economy is not more than 0.85).

Stage 4. Detailed analysis of the financial statements of the organization.

Purpose of analysis - identification of the reasons for the deterioration of the financial condition of the organization. When analyzing the dynamics of the balance sheet currency, data on the balance sheet currency at the beginning and end of the reporting period are compared. The decrease in the currency of the balance sheet (balance sheet total) is a consequence of the organization's reduction in economic turnover.

When considering the structure of the balance sheet in order to ensure the comparability of the studied data for articles and sections of the balance sheet at the beginning and end of the reporting period, the analysis is carried out on the basis of specific indicators, calculated to the balance currency, which is taken as 100 percent.

After studying the structure of the balance sheet, an analysis of the turnover of working capital is carried out.

Analysis of the balance sheet ends with an analysis of the liquidity of the balance sheet. The task of analyzing the liquidity of the balance arises in connection with the need to assess the creditworthiness of the organization. Balance liquidity is defined as the extent to which an organization's liabilities are covered by its assets, the maturity of which is equal to the maturity of the liabilities.

Depending on the degree of liquidity, i.e. on the rate of conversion into cash, enterprise assetsefall into the following groups:

- the most liquid assets (А1)- all items of funds of the enterprise and financial investments;

- marketable assets (A2)- accounts receivable, payments on which are expected within 12 months after the reporting date, goods shipped, work performed, services rendered and taxes on acquired valuables;

- slow-moving assets (A3)- finished products, raw materials, materials, work in progress;

- hard-to-sell assets (A4)- fixed assets;

- illiquid assets (А5)- uncollectible receivables, stale material assets.

Liabilities of the balance are grouped according to the degree of urgent aboutpayment methods:

The most urgent liabilities (P1) - accounts payable and bank loans, the repayment period of which has come;

- short-term liabilities with a maturity of up to 1 year (P2)- short-term bank loans;

- long-term liabilities (P3)- long-term bank loans and borrowed funds;

- permanent liabilities (P4)- sources of own funds;

- revenue of the future periods, which are expected to be received in the future (P5).

The balance is considered to be absolutely liquid if the following correlations take placeaboutsolutions:

A1? P1, A2? P2, A3? P3, A4? P4, A5? P5

With stable financial stability, the organization should dynamically increase the share of its own turnover t fund, the growth rate of own fund should be higher than the growth rate of the loan fund, and the growth rate of receivables and payables should balance and whack each other.

System of indicators of financial condition

To analyze and evaluate the financial position of an enterprise, a whole system of indicators is used that characterizes: the availability of capital and the efficiency of its use; the structure of the company's liabilities, its financial independence; the structure of the enterprise's assets and the degree of production risk; structure of sources of working capital formation; solvency and liquidity of the enterprise; the risk of bankruptcy; margin of financial strength. The usefulness of any financial indicator depends on the accuracy of the financial statements and the forecasts derived from them. financial stability asset liquid

In the Republic of Belarus, when determining creditworthiness, taking into account the coefficient analysis of the financial position, banks are guided by the standard values of the coefficients of current liquidity and the provision with own working capital, differentiated by industry.

The composition of the estimated indicators of the financial condition and the algorithms for calculating each of them are presented in a formalized form in Table No. 1.

Table No. 1Characteristics and procedure for calculating estimatedPaboutindicators of financial condition

Indicators	Characteristic indicator	Algorithm

Coefficients characterizing solvency
Current liquidity ratio (norm 1.7)	Shows the company's ability to pay off short-term liabilities with its current assets
Interim liquidity ratio (norm not less than 0.5-0.8)	Reflects the solvency of the enterprise, taking into account upcoming receipts from debtors, showing what part of the current debt the organization can cover in the short term, subject to repayment of receivables
Absolute liquidity ratio (standard 0.2)	It characterizes the instant solvency of the enterprise and shows what part of the short-term debt the enterprise can cover at the expense of available funds and short-term financial investments, quickly realized if necessary
Financial independence ratio (autonomy ratio) (norm 0.5)	Reflects the independence of the enterprise from borrowed sources
Coverage ratio of total financial liabilities with assets (norm 0.85)	An increase in the values of this indicator indicates an increase in the dependence of the enterprise on the conditions put forward by creditors, and, consequently, a decrease in the financial stability of the enterprise
Coverage ratio of long-term liabilities with assets	Shows what proportion of the company's assets is financed by long-term loans
The coefficient of maneuverability of own working capital	Shows what part of the company's own funds is in a mobile form, allowing relatively free maneuvering of these funds
Coefficient financial risk(shoulder of financial leverage) (standard 0.5)	It shows how much borrowed funds the company has attracted for the ruble of its own. The growth of the indicator indicates an increase in the dependence of the enterprise on external financial sources, that is, in a certain sense, a decrease in financial stability and often makes it difficult
Financial stability ratio (standard 2)	Shows how each ruble of debt is backed by its own funds. A decrease in this indicator indicates the insolvency of the enterprise.
Equity ratio of total financial liabilities	The lower the ratio, the more stable the financial position of the enterprise
Coverage ratio of long-term liabilities with non-current assets	Shows what share of hard-to-sell non-current assets (fixed assets) is financed by long-term loans
Working capital ratio	Characterizes the availability of own working capital necessary to ensure financial stability
Coefficients characterizing business activity
Return on sales, %	Shows share net profit(Pch) in the sales volume (VR) of the enterprise
Return on equity, %	Allows you to determine the effectiveness of the use of capital invested by the owners of the enterprise. The return on equity shows how many monetary units of net profit each unit invested by the owners earned.
Return on assets, %	Allows you to determine the efficiency of the use of enterprise assets. Shows how many monetary units of net profit earned each unit of assets
Return on current assets, %	Demonstrates the ability of the enterprise to provide a sufficient amount of profit in relation to the working capital used by the enterprise
Return on non-current assets, %	Demonstrates the ability of the enterprise to provide a sufficient amount of profit in relation to the fixed assets of the enterprise
Return on investment, %	Shows how many monetary units it took the company to receive one monetary unit arrived. This indicator is one of the most important indicators of competitiveness and investment attractiveness.
business activity ratio	Shows how many rubles of net sales proceeds have been transformed from each ruble of assets, or how intensively the assets of the enterprise are being turned over.
Accounts receivable turnover ratio	Indicates an increase or decrease in commercial credit provided by the organization. If the ratio is calculated based on sales revenue generated as invoices are paid, its growth means a decrease in sales on credit.
Accounts payable turnover ratio debt	It means an increase in the speed of paying the organization's debts, a decrease - an increase in purchases on credit. Reflects an increase or decrease in commercial credit provided to an organization.
Equity turnover ratio	Characterizes the rate of turnover of equity capital.