The financial position of the enterprise. Indicators characterizing the financial position of the enterprise. Methodology for analyzing the financial situation of an enterprise

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Financial positionorganization

Under financial situation the ability of an enterprise to finance its activities is understood. Financial condition characterizes a set of indicators reflecting the availability, placement and use of financial resources of an enterprise, as well as the condition of capital in the process of its circulation.

The stability of the financial position is achieved with the adequacy of equity capital, good quality of assets, high business activity of the enterprise, a sufficient level of profitability, stable income and ample opportunities to attract borrowed funds.

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

There are 4 types of financial stability:

Absolute financial stability

SOBK - W? 0

Normal financial stability

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

Unstable financial condition

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

If, as a result of the calculation, a negative value is obtained, then this indicates a crisis state.

SOBK - own working capital;

З - stocks (costs);

D.Z. - long-term loans and borrowings

Kr.Z - short-term loans and borrowings

The purpose of studying the financial situation of the enterprise consists in finding additional funds for the most rational and economical conduct of economic activities. A stable financial condition is the result of skillful management of the entire complex of factors that determine the results of the financial and economic activities of the enterprise. Financial analysis plays a significant role in resolving these issues.

The main factors that determine the financial condition are, At first, fulfillment of the financial plan and replenishment as necessary of own working capital at the expense of profit and, Secondly, the rate of turnover of circulating assets. The fulfillment 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 accounting.lTersky reports: 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 post e consistency.

Stage 1. Analysis of current liquidity and provision of own circulating assets.

In accordance with Chapter 3 "Instructions for the analysis and control of the financial condition and solvency of business entities", the recognition of the balance sheet structure as unsatisfactory, and the organization insolvent, must 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 ratio of the provision of own circulating assets at the end of the reporting period, depending on the industry affiliation of the organization, is less than the standard value.

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

The debt of the state to the organization is understood as the obligations of the executive power body of the Republic of Belarus to pay for the order, which the organization is not entitled to refuse to fulfill in time. On the basis of the documents for each of the government obligations not fulfilled on time, the volumes of government debt and the timing of their occurrence are determined, if the submitted documents have not proved the existence of government obligations not fulfilled on time, the dependence of the organization's insolvency on the government's debt to it is considered not established.

Stage 3. Analysis of the security of financial liabilities with assets.

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

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

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

When considering the structure of the balance sheet in order to ensure the comparability of the studied data by 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 for the balance sheet currency, which is taken as 100 percent.

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

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

Depending on the degree of liquidity, i.e. on the speed of conversion into cash, enterprise assets sectioneare divided into the following groups:

- most liquid assets (A1)- all items of the enterprise's funds and financial investments;

- quick realizable assets (A2)- accounts receivable, payments for which are expected within 12 months after the reporting date, goods shipped, work performed, services rendered and taxes on purchased values;

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

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

- illiquid assets (A5)- bad accounts receivable, stale material values.

Balance sheet liabilities are grouped by the degree of urgent Ohow to pay for them:

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

- short-term liabilities with maturity 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 supposed to be obtained in the future (P5).

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

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

With stable financial stability, the organization in dynamics should increase the share of its own turnover T fund, the growth rate of its own fund should be higher than the growth rate of the loan fund, and the growth rate of receivables and payables should be balanced and to each other.

System of indicators of financial condition

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

In the Republic of Belarus, when determining creditworthiness, taking into account the ratio analysis of the financial situation, banks are guided by the standard values of the ratios of current liquidity and the provision of their own working capital, differentiated by industry.

The composition of the estimated indicators of the financial condition and the algorithms for calculating each of them in a formalized form are presented in Table 1.

Table No. 1 Characteristics and procedure for calculating the estimatedNSOfinancial indicators

Indicators	Characteristic indicator	Algorithm

Solvency ratios
Current liquidity ratio (standard 1.7)	Shows the ability of the company to pay off short-term liabilities with its current assets
Intermediate liquidity ratio (standard not less than 0.5-0.8)	Reflects the solvency of the enterprise, taking into account the forthcoming receipts from debtors, showing how much of the current debt the organization can cover in the short term, subject to the 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 the available funds and short-term financial investments, which are quickly realized if necessary
Financial independence ratio (equity ratio) (standard 0.5)	Reflects the independence of the enterprise from borrowed sources
Coverage ratio of total financial liabilities with assets (standard 0.85)	An increase in the values of this indicator indicates an increase in the dependence of the enterprise on the conditions set forth by creditors, and, consequently, a decrease in the financial stability of the enterprise.
The 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 mobile form, which allows relatively free maneuvering of these funds
Financial Risk Ratio (Leverage) (standard 0.5)	It shows how much borrowed funds the company attracted for its own ruble. 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 complicates
Financial stability ratio (standard 2)	Shows how much each ruble of debt is backed by its own funds. A decrease in this indicator indicates the insolvency of the enterprise.
Equity capital ratio of total financial liabilities	The lower the coefficient, the more stable the financial position of the company
Coefficient of provision 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
Coefficient of provision with own circulating assets	Characterizes the presence of own working capital, necessary to ensure financial stability
Coefficients characterizing business activity
Return on sales,%	Demonstrates the share of net profit (PP) in the sales volume (BP) of the enterprise
Return on equity,%	Allows you to determine the effectiveness of the use of capital invested by the owners of the enterprise. 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 effectiveness of the use of enterprise assets. Shows how many monetary units of net profit each unit of assets earned
Return on current assets,%	Demonstrates the ability of the enterprise to provide a sufficient amount of profit in relation to the used working capital of 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 the company needed to get one monetary unit of profit. This indicator is one of the most important indicators of competitiveness and investment attractiveness.
Business ratio	Shows how many rubles of net proceeds from sales were transformed from each ruble of assets, or how intensively the assets of the enterprise are turned over.
Accounts receivable turnover ratio	Indicates an increase or decrease in a commercial loan provided by an organization. If the ratio is calculated based on sales revenue generated as bills are paid, its growth means a decrease in sales on credit.
Accounts payable turnover ratio arrears	It means an increase in the rate of payment of the organization's debt, a decrease - an increase in purchases on credit. Reflects the expansion or decline of a commercial loan to an organization.
Equity capital turnover ratio	It characterizes the rate of turnover of equity capital.

Accepted conventions when calculating the estimated indicators of financial conditionI amof the enterprise:

non-current assets of the enterprise (VNA);

current assets of the enterprise (OBA);

cash (DS);

short-term financial investments (KFV);

accounts receivable (DZ);

accounts payable (KRZ);

balance sheet currency (balance sheet total) (WB);

short-term liabilities (KO);

long-term liabilities (DO);

equity capital (SK);

borrowed capital (ZK);

proceeds from the sale of products (works, services) (ВР);

the net profit of the enterprise.

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

The financial condition can be stable, unstable and crisis. The ability of an 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 (FSP) depends on the results of its production, commercial and financial activities. If the production and financial plans are successfully fulfilled, then this has a positive effect on the financial position of the company. And vice versa, as a result of the failure to fulfill the plan for the production and sale of products, there is an increase in its cost, a decrease in revenue and the amount of profit and, as a result, a deterioration in the financial condition of the enterprise and its solvency

A stable financial position, in turn, has a positive effect on the implementation of production plans and the provision of production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the planned receipt and expenditure of monetary resources, the implementation of calculation discipline, the achievement of rational proportions of equity and borrowed capital and its most efficient use.

The main purpose of the analysis is to timely identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency.

Analysis of the financial condition of the organization involves the following stages.
1. Preliminary review of the economic and financial situation of a business entity.
1.1. Characteristics of the general direction of financial and economic activities.
1.2. Assessment of the reliability of the information of the reporting articles.
2. Assessment and analysis of the economic potential of the organization.
2.1. Assessment of property status.
2.1.1. Building an analytical net balance.
2.1.2. Vertical balance analysis.
2.1.3. Horizontal balance analysis.
2.1.4. Analysis of qualitative changes in property status.
2.2. Assessment of the financial position.
2.2.1. Assessment of liquidity.
2.2.2. Assessment of financial stability.
3. Assessment and analysis of the effectiveness of the financial and economic activities of the enterprise.
3.1. Assessment of production (core) activities.
3.2. Profitability analysis.
3.3. Assessment of the position on the securities market.

Information basis of this methodology is a system of indicators given in Appendix 1.

8.1. Preliminary overview of the economic and financial situation of the company

The analysis begins with an overview of the key performance indicators of the enterprise. The following issues need to be considered during this review:
· The property status of the enterprise at the beginning and end of the reporting period;
· Working conditions of the enterprise in the reporting period;
· The results achieved by the company in the reporting period;
· Prospects of financial and economic activities of the enterprise.

The financial position of the enterprise at the beginning and end of the reporting period is characterized by the balance sheet data. Comparing the dynamics of the totals of the sections of the balance sheet asset, you can find out the trends in the property status. Information about changes in the organizational structure of management, the opening of new types of activities of the enterprise, the specifics of working with counterparties, etc. is usually contained in the explanatory note to the annual financial statements. The effectiveness and prospects of the enterprise can be generalized assessed according to the analysis of the dynamics of profit, as well as a comparative analysis of the elements of growth of the enterprise's funds, the volume of its production activities and profits. Information about shortcomings in the work of the enterprise can be directly present in the balance sheet in an explicit or veiled form. This case may occur when there are items in the reporting that indicate the extremely unsatisfactory performance of the enterprise in the reporting period and the resulting poor financial position (for example, the item "Losses"). In the balance sheets of quite profitable enterprises, there may also be items in a hidden, veiled form that indicate certain shortcomings in the work.

This can be caused not only by fraud on the part of the enterprise, but also by the adopted reporting methodology, according to which many balance sheet items are complex (for example, items "Other debtors", "Other creditors").

8.2. Assessment and analysis of the economic potential of the organization

8.2.1. Assessment of property status

The economic potential of an organization can be characterized in two ways: from the standpoint of the property status of the enterprise and from the standpoint of its financial position. Both of these aspects of financial and economic activities are interconnected - an irrational structure of property, its poor-quality composition can lead to a deterioration in the financial situation and vice versa.

According to the current regulations, the balance sheet is currently compiled in net valuation. However, a number of articles are still regulatory. For the convenience of analysis, it is advisable to use the so-called condensed analytical balance-net , which is formed by eliminating the influence on the balance sheet total (currency) and its structure of regulatory articles. For this:
· Amounts under the item "Debt of participants (founders) for contributions to the authorized capital" reduce the amount of equity capital and the amount of current assets;
· The value of the item "Estimated reserves (" Reserve for doubtful debts ")" is used to adjust the value of accounts receivable and equity capital of the enterprise;
· Elements of balance sheet items that are homogeneous in composition are combined in the necessary analytical sections (long-term current assets, equity and debt capital).

The stability of the financial position of an enterprise largely depends on the feasibility and correctness of investing financial resources in assets.

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 go to relative estimates and conduct economic comparisons of economic indicators of enterprises that differ in the amount of resources used, to smooth out the influence of inflationary processes that distort the absolute indicators of financial statements.

Horizontal analysis reporting consists in the construction of one or more analytical tables, in which the absolute indicators are supplemented by the relative rates of growth (decline). The degree of aggregation of indicators is determined by the analyst. As a rule, the basic growth rates are taken for a number of years (adjacent 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, analytical tables are often built that characterize both the structure of the financial statements and the dynamics of its individual indicators. Both of these types of analysis are especially valuable for inter-farm comparisons, since they allow you to compare the reporting of enterprises with different types of activity and production volumes.

Criteria qualitative changes in the property status of the enterprise and the degree of their progressiveness are indicators such as:
· The amount of economic assets of the enterprise;
· The share of the active part of fixed assets;
· Coefficient of wear;
· The share of quickly realizable assets;
· Share of leased fixed assets;
· The share of accounts receivable, etc.

Formulas for calculating these indicators are given in Appendix 2.

Let's consider their economic interpretation.

The amount of household assets at the disposal of the enterprise. This indicator provides a generalized value estimate of the assets on the balance sheet of the enterprise. This is an accounting estimate that does not match the total market value of its assets. The growth of this indicator indicates an increase in the property potential of the enterprise.

The share of the active part of fixed assets. The active part of fixed assets is understood as machinery, equipment and vehicles. The growth of this indicator in dynamics is usually regarded as a favorable trend.

Wear factor. The indicator characterizes the share of the cost of fixed assets remaining to be written off to expenses in subsequent periods. The ratio is usually used in the analysis as a characteristic of the condition of fixed assets. The addition of this indicator to 100% (or one) is the coefficient suitability. The depreciation ratio depends on the adopted methodology for calculating depreciation charges and does not fully reflect the actual depreciation of fixed assets. Likewise, the expiration ratio does not provide an accurate estimate of their present value. This is due to a number of reasons: the rate of inflation, the state of the conjuncture and demand, the correctness of determining the useful life of fixed assets, etc. However, despite the shortcomings, conventionality of indicators of wear and tear, they have a certain analytical value. According to some estimates, a wear factor of more than 50% is considered undesirable.

Update rate. Shows how much of the existing fixed assets at the end of the reporting period are new fixed assets.

Retirement rate. Shows what part of the fixed assets with which the company began operations in the reporting period, retired due to dilapidation and for other reasons.

8.2.2. Financial assessment

The financial position of an 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. ability to timely and fully make settlements for short-term obligations.

Under liquidity any asset understand its ability to transform into cash, and the degree of liquidity is determined by the duration of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of this type of assets.

Talking about liquidity of the enterprise, mean that he has working capital in an amount theoretically sufficient to pay off short-term obligations, even if in violation of the maturity dates stipulated by the contracts.

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

It is obvious that liquidity and solvency are not identical to each other. Thus, the liquidity ratios can characterize the financial position as satisfactory, but in essence this estimate may be erroneous if the current assets have a significant proportion of illiquid assets and overdue receivables. Here are the main indicators that allow you to assess the liquidity and solvency of the enterprise.

The size of its own working capital. It characterizes that part of the company's equity capital, which is the source of coverage of its current assets (ie assets with a turnover of less than one year). This is a calculated indicator that depends on both the structure of assets and the structure of sources of funds. The indicator is of particular importance for enterprises engaged in commercial activities and other intermediary operations. All other things being equal, the growth of this indicator in dynamics is regarded as a positive trend. The main and constant source of increasing your own funds is profit. It is necessary to distinguish between "working capital" and "own working capital". The first indicator characterizes the assets of the enterprise (section II of the balance sheet asset), the second - the sources of funds, namely, part of the equity capital of the enterprise, considered as a source of coverage for current assets. The amount of own circulating assets is numerically equal to the excess of current assets over current liabilities. A situation is possible when the amount of current liabilities exceeds the amount of current assets. The financial position of the enterprise in this case is considered unstable; immediate action is required to correct it.

Maneuverability of functioning capital. It characterizes that part of own circulating assets, which is in the form of cash, i.e. funds with absolute liquidity. For a normally functioning enterprise, this indicator usually varies from zero to one. All other things being equal, the growth of the indicator in dynamics is regarded as a positive trend. An acceptable approximate value of the indicator is set by the enterprise independently and depends, for example, on how high its daily need for free cash resources is.

Current liquidity ratio. Gives an overall assessment of the liquidity of assets, showing how many rubles of current assets fall on one ruble of current liabilities. The logic of calculating this indicator is that the company pays off short-term liabilities mainly at the expense of current assets; therefore, if the current assets exceed the current liabilities, the enterprise can be considered as successful (at least in theory). The value of the indicator can vary by industry and type of activity, and its reasonable growth over time is usually considered a favorable trend. In Western accounting and analytical practice, the lower critical value of the indicator is 2; however, this is only an indicative value, indicating the order of the indicator, but not its exact standard value.

Quick ratio. The indicator is similar to the current liquidity ratio; however, it is calculated for a narrower range of current assets. The least liquid part of them - production stocks - is excluded from the calculation. The logic of such an exclusion is not only a significantly lower liquidity of stocks, but, which is much more important, and the fact that the money that can be raised in the event of the forced sale of production stocks may be significantly lower than the cost of acquiring them.

The approximate lower value of the indicator is 1; however, this estimate is also conditional. Analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that caused its change. So, if the growth of the quick liquidity ratio was mainly associated with growth. unjustified receivables, this cannot characterize the activities of the enterprise from the positive side.

Absolute liquidity ratio (solvency) is the most stringent criterion for the liquidity of an enterprise and shows what part of short-term debt obligations can be repaid, if necessary, immediately. The recommended lower limit of the indicator given in Western literature is 0.2. Since the development of industry standards for these coefficients is a matter of the future, in practice it is advisable to analyze the dynamics of these indicators, supplementing it with a comparative analysis of the available data on enterprises with a similar orientation of their economic activities.

Share of own circulating assets in covering stocks. It characterizes that part of the cost of inventories that is covered by its own circulating assets. Traditionally it is of great importance in the analysis of the financial condition of trade enterprises; the recommended lower limit of the indicator in this case is 50%.

Inventory coverage ratio. It is calculated by correlating the value of "normal" sources of coverage of reserves and the amount of reserves. If the value of this indicator is less than one, then the current financial condition of the enterprise is considered unstable.

One of the most important characteristics of the financial condition of an enterprise is the stability of its activities in the light of a long-term perspective. It is associated with the general financial structure of the enterprise, the degree of its dependence on creditors and investors.

Financial stability in the long run, it is, therefore, characterized by the ratio of equity and borrowed funds. However, this indicator provides only a general assessment of financial stability. Therefore, in the world and domestic accounting and analytical practice, a system of indicators has been developed.

Equity capital concentration ratio. It characterizes the share of owners of an enterprise in the total amount of funds advanced for its activities. The higher the value of this ratio, the more financially stable, stable and independent of external loans the company. An addition to this indicator is the concentration ratio of the attracted (borrowed) capital - their sum is equal to 1 (or 100%).

Financial dependence ratio. It is the inverse of the equity concentration ratio. The growth of this indicator in dynamics means an increase in the share of borrowed funds in the financing of the enterprise. If its value drops to one (or 100%), this means that the owners are fully financing their enterprise.

Equity capital flexibility ratio. Shows what part of equity capital is used to finance current activities, that is, invested in working capital, and what part is capitalized. The value of this indicator can significantly vary depending on the capital structure and industry sector of the enterprise.

Long-term investment structure coefficient. The calculation logic for this indicator is based on the assumption that long-term loans and borrowings are used to finance fixed assets and other capital investments. The coefficient shows what part of fixed assets and other non-current assets is financed by external investors.

Long-term borrowing ratio. Characterizes the capital structure. The growth of this indicator in dynamics is a negative trend, which means that the company is increasingly dependent on external investors.

The ratio of own and borrowed funds. Like some of the above indicators, this ratio gives the most general assessment of the financial stability of the enterprise. It has a fairly simple interpretation: its value, for example, equal to 0.178, means that for every ruble of own funds invested in the assets of the enterprise, there are 17.8 kopecks. borrowed money. The growth of the indicator in dynamics testifies to the increased dependence of the enterprise on external investors and creditors, i.e. about a certain decrease in financial stability, and vice versa.

There are no uniform normative criteria for the considered indicators. They depend on many factors: the branch of the enterprise, the principles of lending, the existing structure of sources of funds, the turnover of working capital, the reputation of the enterprise, etc. Therefore, the acceptability of the values of these coefficients, the assessment of their dynamics and directions of change can be established only as a result of comparison by groups.

8.3. Assessment and analysis of the performance of financial and economic activities

8.3.1. Business activity assessment

Business activity assessment is aimed at analyzing the results and effectiveness of the current core production activities

An assessment of business activity at a qualitative level can be obtained by comparing the activities of a given enterprise and related enterprises in the sphere of capital investment. Such qualitative "(ie, non-formalized) criteria are: breadth of markets for products; availability of products supplied for export; reputation of the enterprise, expressed, in particular, in the awareness of customers using the services of the enterprise, etc. The quantitative assessment is done in two directions. :
· The degree of fulfillment of the plan (established by the parent organization or independently) for the main indicators, ensuring the specified rates of their growth;
· The level of efficiency of using the resources of the enterprise.

To implement the first direction of analysis, it is also advisable to take into account the comparative dynamics of the main indicators. In particular, the following ratio is optimal:

T pb> T p> T ak> 100%,

where T pb> T p -, T ak - respectively, the rate of change in profit, sales, advanced capital (Bd).

This dependence means that: a) the economic potential of the enterprise increases; b) compared with an increase in economic potential, the volume of sales increases at a higher rate, i.e. enterprise resources are used more efficiently; c) profit grows at a faster pace, which, as a rule, indicates a relative decrease in production and circulation costs.

However, deviations from this ideal dependence are also possible, and they should not always be considered negative, such reasons are: the development of new prospects for the direction of capital investment, reconstruction and modernization of existing production facilities, etc. This activity is always associated with significant investments of financial resources, which for the most part do not provide quick benefits, but in the long term they can fully pay off.

To implement the second direction, various indicators can be calculated that characterize the efficiency of the use of material, labor and financial resources. The main ones are production, capital productivity, inventory turnover, operating cycle duration, and advance capital turnover.

At analysis of working capital turnover special attention should be paid to inventories and receivables. The less the financial resources in these assets are deadened, the more efficiently they are used, the faster they turn around, and bring the company more and more profits.

The turnover is assessed by comparing the indicators of the average balances of current assets and their turnover for the analyzed period. Turnovers in the assessment and analysis of turnover are:
· For inventories - the cost of manufacturing products sold;
· For accounts receivable - sales of products by bank transfer (since this indicator is not reflected in the reporting and can be identified according to accounting data, in practice it is often replaced by the indicator of proceeds from sales).

Let's give an economic interpretation of the turnover indicators:
· turnover in revolutions indicates the average number of turnovers of funds invested in assets of this type in the analyzed period;
· turnover in days indicates the duration (in days) of one turnover of funds invested in assets of this type.

The generalized characteristic of the duration of the mortification of financial resources in current assets is operating cycle indicator, i.e. how many days on average elapse from the moment of investing funds in current production activities until the moment they are returned in the form of proceeds to the current account. This indicator largely depends on the nature of the production activity; its reduction is one of the main on-farm tasks of the enterprise.

The indicators of the effectiveness of the use of certain types of resources are summarized in terms of the turnover of equity capital and the turnover of fixed capital, characterizing, respectively, the return invested in the enterprise: a) the owner's funds; b) all means, including attracted. The difference between these ratios is due to the degree to which borrowed funds are attracted to finance production activities.

The generalizing indicators for assessing the efficiency of using the resources of an enterprise and the dynamism of its development include the indicator of resource productivity and the coefficient of sustainability of economic growth.

Resource efficiency (the advance capital turnover ratio). It characterizes the volume of products sold per ruble of funds invested in the activities of the enterprise. The growth of the indicator in dynamics is considered as a favorable trend.

Economic growth sustainability coefficient. Shows the average rate at which an enterprise can develop in the future, without changing the already established relationship between various sources of funding, capital productivity, profitability of production, dividend policy, etc.

8.3.2. Profitability assessment

The main indicators of this block, used in countries with market economies to characterize the return on investment in activities of a particular type, include return on capital advanced and return on equity. The economic interpretation of these indicators is obvious - how many rubles of profit falls on one ruble of advanced (equity) capital. The calculation of these indicators is given enough attention in topic No. 7.

8.3.3. Assessment of the situation on the securities market

This type of analysis is performed in companies registered on stock exchanges and listing their securities there. Analysis cannot be performed directly by financial statements - more information is needed. Since the terminology for securities in our country has not yet finally developed, the given names of indicators are conditional.

Earnings per share. It is the ratio of net profit, reduced by the amount of dividends on preferred shares, to the total number of ordinary shares. It is this indicator that significantly affects the market price of shares. Its main drawback in analytical terms is spatial incompatibility due to the unequal market value of shares of different companies.

Share value. Calculated as the quotient of the market price of a share divided by earnings per share. This indicator serves as an indicator of the demand for the shares of a given company, as it shows how much investors are willing to pay at the moment for one ruble of earnings per share. The relatively high growth of this indicator over time indicates that investors expect a faster growth in the profits of this firm compared to others. This indicator can already be used in spatial (interfarm) comparisons. Companies that have a relatively high value of the coefficient of sustainability of economic growth, as a rule, also have a high value of the “value of a share” indicator.

Share dividend yield. Expressed as the ratio of the dividend paid per share to its market price. In companies that expand their operations by capitalizing most of their profits, the value of this indicator is relatively small. The dividend yield of a share characterizes the percentage of return on capital invested in the firm's shares. This is a direct effect. There is also an indirect (income or loss), expressed in a change in the market price of a given firm's shares.

Dividend yield. Calculated by dividing the dividend payable per share by earnings per share. The most obvious interpretation of this indicator is the share of net profit paid to shareholders in the form of dividends. The value of the coefficient depends on the investment policy of the firm. This indicator is closely related to the coefficient of reinvestment of profit, which characterizes its share aimed at the development of production activities. The sum of the values of the dividend yield indicator and the profit reinvestment ratio is equal to one.

Stock quotes ratio. It is calculated by the ratio of the market price of a share to its book (book) price. The book price characterizes the share of equity per share. It consists of the par value (i.e. the value stated on the form of the share at which it is accounted for in the share capital), the share of the share premium (the accumulated difference between the market price of shares at the time of sale and their par value) and the share accumulated and invested in firm profit development. A quote ratio value greater than one means that potential shareholders, purchasing a share, are ready to give a price for it that exceeds the accounting estimate of the real capital attributable to a share at the moment.

In the process of analysis, rigidly deterministic factor models can be used, which make it possible to identify and give a comparative description of the main factors that influenced the change in a particular indicator. .

The system is based on the following rigidly determined factor dependence:

where KFZ- financial dependence ratio, VA- the sum of the assets of the enterprise, SC- equity.

From the presented model, it can be seen that the return on equity depends on three factors: the profitability of economic activity, resource efficiency and the structure of the advanced capital. The significance of the selected factors is explained by the fact that in a certain sense they summarize all aspects of the financial and economic activities of the enterprise, in particular the financial statements: the first factor summarizes Form No. 2 "Profit and Loss Statement", the second is the balance sheet asset, the third is the balance sheet liability.

8.4. Determination of the unsatisfactory structure of the company's balance sheet

Currently, the majority of Russian enterprises are in a difficult financial condition. Mutual non-payments between business entities, high tax and bank interest rates lead to the fact that enterprises are insolvent. An external sign of the insolvency (bankruptcy) of an enterprise is the suspension of its current payments and the inability to satisfy creditors' claims within three months from the date of their due date.

In this regard, the issue of assessing the structure of the balance sheet is of particular relevance, since decisions on the insolvency of an enterprise are made upon recognition of the unsatisfactory structure of the balance sheet.

The main purpose of the preliminary analysis of the financial condition of the enterprise is to justify the decision on recognizing the structure of the balance sheet as unsatisfactory, and the enterprise as solvent in accordance with the system of criteria approved by the Decree of the Government of the Russian Federation dated May 20, 1994 No. 498 "On some measures to implement the legislation on insolvency ( bankruptcy) of enterprises ". The main sources of analysis are f. №1 "Balance of the enterprise", f. No. 2 "Profit and Loss Statement".

Analysis and assessment of the structure of the balance sheet of the enterprise is carried out on the basis of indicators: current liquidity ratio; equity ratio.

The basis for recognizing the structure of the company's balance sheet as unsatisfactory, and the company as insolvent, is one of the following conditions:
the current liquidity ratio at the end of the reporting period has a value of less than 2; (K tl);
the equity ratio at the end of the reporting period is less than 0.1. (K oss).

The main indicator characterizing the presence of a real opportunity for an enterprise to restore (or lose) its solvency within a certain period is the coefficient of recovery (loss) of solvency. If at least one of the coefficients is less than the standard ( K tl<2, а K oss<0,1), то рассчитывается коэффициент восстановления платежеспособности за период, установленный равным шести месяцам.

If the current liquidity ratio is greater than or equal to 2, and the equity ratio is greater than or equal to 0.1, the ratio of loss of solvency is calculated for the period set equal to three months.

Solvency recovery rate To vos is defined as the ratio of the calculated current liquidity ratio to its standard. The calculated current liquidity ratio is determined as the sum of the actual value of the current liquidity ratio at the end of the reporting period and the change in the value of this ratio between the end and the beginning of the reporting period in terms of the period of restoration of solvency, set equal to six months:

where K ntl- the standard value of the current liquidity ratio,
K ntl= 2; 6 - period of restoration of solvency for 6 months;
T - reporting period, months.

The coefficient of recovery of solvency, which takes a value greater than 1, indicates the existence of a real opportunity for the enterprise to restore its solvency. The coefficient of restoring solvency, which takes a value less than 1, indicates that the enterprise has no real opportunity to restore its solvency in the next six months.

The coefficient of loss of solvency K y is determined as the ratio of the calculated ratio of current liquidity to its established value. The calculated current liquidity ratio is determined as the sum of the actual value of the current liquidity ratio at the end of the reporting period and the change in the value of this ratio between the end and the beginning of the reporting period in terms of the period of loss of solvency, set equal to three months:

where That- the period of loss of the company's solvency, months.

The calculated coefficients are entered in the table (Table 29), which is available in the annexes to the "Methodological provisions for assessing the financial condition of enterprises and the establishment of an unsatisfactory balance sheet structure."

Table 29

Assessment of the structure of the balance sheet of the enterprise

Indicator name	At the beginning of the period	At the time of establishing solvency	coefficient

Current liquidity ratio			Not less than 2
Equity ratio			Not less than 0.1
The coefficient of restoration of the company's solvency. According to this table, the calculation is by the formula: p. lrp.4 + 6: T (p. 1gr. 4-p. 1gr. 3)			Not less than 1.0
The coefficient of loss of solvency of the enterprise. According to this table, the calculation is according to the formula: line 1gr. 4 + 3: T (line 1gr. 4-tr. 1gr. З), where T takes the values of 3, 6, 9 or 12 months

Questions for self-control
1. What is the procedure for analyzing the financial condition of the enterprise?
2. What are the sources of information for the analysis of financial condition?
3. What is the essence of vertical and horizontal analysis of the balance sheet of the enterprise?
4. What are the principles of constructing an analytical balance - net?
5. What is the liquidity of an enterprise and how does it differ from its solvency?
6. On the basis of what indicators is the analysis of the company's liquidity carried out?
7. What is the concept and assessment of the financial stability of an enterprise?
8. What indicators are used to analyze the business activity of an enterprise?
9. Under what conditions are the coefficients of recovery of solvency calculated?

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Financial condition is an economic category that reflects the condition of capital in the process of its circulation and the ability of a business entity to self-development at a fixed point in time, i.e. the ability to finance your activities. In the process of operating, investment and financial activities, there is a continuous process of capital circulation, the structure of funds and sources of their formation, the availability and need for financial resources and, as a consequence, the financial condition of the enterprise, the external manifestation of which is solvency, change.

The financial condition of an enterprise depends on the availability of financial resources necessary for its normal functioning, the expediency of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability, as well as on the efficiency of operating, financial and other activities of the enterprise. At the same time, the financial condition of the enterprise is influenced by production (indicators of intensive and extensive use of production capacity), organizational factors (balance of management structures), circulation factors (management of receivables and payables, reliability of suppliers, etc.).

Financial indicators reflect the availability, placement and use of financial resources. By analyzing the financial condition of economic entities, an objective assessment of financial stability is achieved, on the basis of which it is possible to timely determine the likelihood of bankruptcy and calculate the efficiency of the use of financial resources.

The groups of indicators characterizing the financial condition of the enterprise are solvency, liquidity, financial stability, profitability, business activity and analysis of cash flows in the enterprise.

The financial condition can be stable, unstable (pre-crisis) and crisis. An enterprise's ability to make payments on time, finance its operations on an extended basis, withstand unexpected shocks and maintain its solvency in adverse circumstances is indicative of its sound financial health, and vice versa.

The financial position can be characterized both in the short and long term. In the first case, they talk about the liquidity and solvency of a commercial organization, in the second case, about its financial stability.

The financial condition of enterprises, its stability largely depend on the optimality of the structure of capital sources and on the optimality of the structure of the assets of the enterprise and, first of all, on the ratio of fixed and circulating assets, as well as on the balance of assets and liabilities of the enterprise on a functional basis.

If the current solvency is an external manifestation of the financial condition of an enterprise, then financial stability is its internal side, ensuring stable solvency in the long term, which is based on the balance of assets and liabilities, income and expenses, positive and negative cash flows.

The essence of financial stability is determined by the effective formation, distribution and use of financial resources.

The financial stability of an enterprise is the ability of a business entity to function and develop, maintain a balance of its assets and liabilities in a changing internal and external environment, which guarantees its solvency and investment attractiveness in the long term within the acceptable level of risk. A stable financial condition is achieved with sufficient equity capital, good quality of assets, a sufficient level of profitability, taking into account operational and financial risk, sufficient liquidity, stable income and ample opportunities to attract borrowed funds.

The stability of the enterprise is influenced by various factors: the position of the enterprise in the commodity market; production and release of cheap, high-quality and marketable products; its potential in business cooperation; the degree of dependence on external creditors and investors; the presence of insolvent debtors; efficiency of business and financial transactions, etc.

One of the indicators characterizing the financial position of the enterprise is its solvency, that is, the ability to timely pay off your payment obligations in cash, the willingness to reimburse accounts payable when the payment is due due to current cash receipts. At the same time, an enterprise is considered solvent when it is able to timely and fully fulfill payment obligations arising from trade, credit and other transactions of a monetary nature, selling current assets. The analysis of solvency, carried out on the basis of balance sheet data, is necessary not only for the enterprise in order to assess and forecast financial activities, but also for external investors (for example, banks). Considering this, solvency affects the ability to attract external sources of funds.

When characterizing solvency, it is necessary to take into account the availability of funds in current accounts in banks, in the cash desk of the enterprise, losses, overdue receivables and payables, loans and loans not repaid on time. At the same time, solvency affects the forms and conditions of commercial transactions. Improving the solvency of the enterprise is inextricably linked with the working capital management policy, which is aimed at minimizing financial obligations.

The assessment of the solvency of the balance is carried out on the basis of the characteristics liquidity current assets, which is determined by the time required to convert them into cash.

Balance sheet liquidity is the ability of a business entity to convert assets into cash and pay off its payment obligations, or rather, it is the degree to which the company's debt obligations are covered by its assets, the period of conversion of which into cash corresponds to the maturity of payment obligations.

Liquidity must be viewed from two perspectives: as the time it takes to sell an asset, and as the amount received from selling it. It should be borne in mind that assets can be sold in a short time, but with a significant discount in price.

When analyzing the liquidity of the balance sheet, a comparison is made of assets grouped by their degree of liquidity with liabilities for liabilities grouped by their maturity.

Lack of short-term liquidity may mean that the entity is unable to seize business opportunities if any arise (for example, obtain favorable discounts). Thus, the low level of liquidity leads to the lack of free actions by the administration of the enterprise. The consequence of illiquidity is the inability of the enterprise to pay its current debts and fulfill its current obligations, which can lead to the forced sale of long-term financial investments and assets, and in extreme form - to non-payments and bankruptcy. The basis for declaring an enterprise bankrupt is the failure to comply with the requirements of legal entities and individuals who have financial and property claims against it. Thus, the calculation and analysis of liquidity ratios makes it possible to identify the degree of security of current liabilities with financial resources.

The concept of solvency and liquidity are very close, but the second is more capacious. The degree of liquidity of the balance sheet of the enterprise depends on its solvency. Liquidity analysis consists in comparing funds for an asset, grouped by the degree of diminishing liquidity, with short-term liabilities for liabilities, which are grouped by the degree of maturity.

Along with absolute indicators for assessing liquidity and solvency, relative indicators are calculated. These indicators are of interest not only for management, but also for external subjects of analysis: the absolute liquidity ratio - for suppliers of raw materials and materials, current liquidity for investors.

One of the main tasks of analyzing the financial and economic condition of an enterprise is the study of indicators that characterize it. financial stability, which is determined by the degree of provision of stocks and costs by own and borrowed sources of their formation, the ratio of the volumes of own and borrowed funds when financing stocks and costs and is characterized by a system of absolute and relative indicators. At the same time, absolute indicators characterize the structure of own, borrowed and borrowed funds at the enterprise in monetary units. Relative indicators make it possible to identify the relationship between the availability of own, borrowed and borrowed funds and the direction of their use and are characterized by the ratio of the availability of own circulating assets, the ratio of the availability of inventories with own funds, the ratio of the maneuverability of equity capital, the ratio of investment of long-term financial resources, the ratio of the structure of attracted capital, the ratio of the creditor debts and other liabilities and others.

Financial stability testifies to the excess of income over the expenses of the enterprise, ensures free maneuvering of funds and, through their effective use, contributes to the uninterrupted process of production and sales of products.

Financial stability is the basis for the stable position of the enterprise in the conditions of market relations. It should be borne in mind that it is subject to the influence of external and internal factors. Internal factors include industry affiliation of the organization; the structure of products (services), its share in the total effective demand; the amount of the paid up authorized capital; the amount of costs, their dynamics in comparison with cash income; condition of property and financial resources, including reserves and reserves, their composition and structure.

External factors include the influence of economic conditions of management, the degree of development of scientific and technological progress, effective demand and the level of consumer income, tax credit policy of the government, legislative acts to control the activities of an organization, foreign economic relations, the system of values in society, etc. the economic entity is not able to these factors, therefore it must adapt to their influence.

Such a variety of factors also subdivides resistance itself by species. So, in relation to the enterprise, depending on the factors affecting it, it can be: internal and external, general (price), financial. Internal stability is such a general financial condition of an enterprise, which ensures a consistently high result of its functioning. Its achievement is based on the principle of active response to changes in internal and external factors. The external stability of the enterprise is due to the stability of the economic environment in which its activities are carried out. It is achieved by an appropriate system of market economy management throughout the country.

The analysis of financial stability is based mainly on relative indicators, since it is very difficult to bring the absolute indicators of the balance sheet into a comparable form in the context of inflation. The relative indicators of the analyzed enterprise 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 allows you to identify the strengths and weaknesses of the enterprise and its capabilities;
similar data for previous years to study trends of improvement or deterioration in financial condition.

The general stability of the enterprise is such a cash flow that ensures a constant excess of the receipt of funds (income) over their expenditure. Financial stability is a reflection of a stable excess of income over expenses, ensures free maneuvering of the enterprise's funds and, through their effective use, contributes to the uninterrupted process of production and sales of products. Therefore, financial stability is formed in the process of all production and economic activities and is the main component of the stability of the enterprise.

To ensure financial stability, an enterprise must have a flexible capital structure, be able to organize its movement in such a way as to ensure a constant excess of income over expenses in order to maintain solvency and create conditions for self-financing. The financial condition of the enterprise, its stability and stability depend on the results of its production, commercial and financial activities. If the production and financial plans are successfully fulfilled, then this has a positive effect on the financial position of the company. Consequently, a stable financial condition is not a fluke, but the result of a competent, skillful management of the entire complex of factors that determine the results of an enterprise's economic activities.

Financial stability is the result of the presence of a certain margin of safety that protects the company from risks associated with sudden changes in external factors.

Generalizing characteristics of the financial results of the enterprise are indicators profitability, which characterize the efficiency of the enterprise as a whole, the profitability of production, entrepreneurial, investment activities, cost recovery, etc. They more fully than profit characterize the final results of management, since their value shows the ratio of the effect to the resources used.

The main indicators of profitability can be grouped into the following groups:

1) indicators of the profitability of products, which are calculated on the basis of proceeds from the sale of products (performance of work, provision of services) and the costs of its production and sale. These include profitability of sales, profitability of core business (cost recovery);

2) indicators of profitability of property - profitability of assets, profitability of fixed assets and other non-current assets and profitability of current assets;

3) indicators of the profitability of the capital used, which are calculated on the basis of the invested capital and characterize the profitability of equity and permanent capital.

Along with the indicators of profitability, the efficiency of the enterprise is characterized by indicators business activity... Business activity is understood as the performance of an enterprise in relation to the amount of advanced resources or the amount of their consumption in the production process. Business activity is manifested in the dynamism of the development of an economic entity, the achievement of its goals, as well as the rate of turnover of funds, on which the size of the annual turnover depends. At the same time, the relative value of conditionally fixed costs is associated with the size of the turnover, and, consequently, with their turnover, since the faster the turnover, the less these costs fall on each turnover.

In the financial aspect, business activity is manifested primarily in the rate of turnover of funds. The analysis of business activity consists in the study of the levels and dynamics of various financial ratios - turnover indicators. To analyze business activity, an organization uses two groups of indicators:

general indicators of turnover (turnover ratio; duration of one turnover, release / attraction of working capital).
indicators of the level of activity (coefficient of total capital turnover, coefficient of return on intangible assets, return on assets, coefficient of return on equity).

Acceleration of turnover at one stage or another of the circulation of funds entails an acceleration of turnover at other stages. The turnover of funds invested in the property of an enterprise can be estimated using the rate and period of turnover. So, the rate of turnover is determined by the number of revolutions that the financial resources of the enterprise advanced for the formation of working capital are carried out during the analyzed period.

The turnover period is characterized by the average period for which the funds invested in production and commercial operations are returned to the economic activity of the enterprise.

One of the main conditions for the financial well-being of an enterprise is the flow of funds to cover its obligations. The absence of such a minimum required supply of funds in the company's account indicates the presence of financial difficulties. The excessive amount of cash leads to the fact that the company suffers losses associated, firstly, with inflation and depreciation of money and, secondly, with the missed opportunity to place them profitably and generate additional income. In this regard, it becomes necessary to conduct a cash flow analysis, which allows you to assess the rationality cash flow management at the enterprise.

The main purpose of such an analysis is to identify the reasons for the shortage (surplus) of funds, determine the sources of their income and directions of spending to control the current liquidity and solvency of the enterprise, assess the ability of the enterprise to generate cash in the amount and within the time frame required to implement the planned costs and payments. ...

The movement of financial resources in the enterprise is carried out in the form of cash flows. To assess the financial condition of an economic entity, it is important not only the amount of cash flow, but also the intensity of its movement during the analyzed period of time.

Cash flow analysis allows you to maintain the optimal amount and structure of the invested capital in cash in order to obtain the maximum amount of cash flow for a certain period.

Thus, the indicators of the company's solvency determine its ability and ability to fulfill payment obligations in a timely manner and in full, and liquidity shows how quickly it is possible to carry out this. Financial stability ensures the free maneuvering of funds and, through their effective use, contributes to the uninterrupted process of production and sales of products. Profitability is a generalizing characteristic of the financial results of an enterprise, since allows you to compare the invested resources with the end result of the enterprise. Business activity allows you to make timely decisions about the goals of the enterprise, actively interact with partners. Based on the optimization of the cash flow of the enterprise, it is possible to identify new sources of incoming cash flows. However, to determine the overall financial stability of an enterprise, it is necessary to use a set of these indicators. At the same time, the results of a comprehensive analysis of the financial condition allow making decisions to eliminate the negative impact of external and internal factors. It is on the basis of a systematic financial and economic analysis that an effective planning and forecasting system is developed, a rating assessment of the financial condition and investment attractiveness of the enterprise is carried out.

To make financial decisions, it is necessary to have a clear classification of income and expenses, profit and loss in order to determine the main source of income and the direction of their use, be able to objectively analyze the impact of internal and external factors (in particular, taxation) on the efficiency of the enterprise, promptly receive initial information for assessing financial stability in a form convenient for the analyst.

Financial activity as an integral part of economic activity should be aimed at ensuring the planned receipt and expenditure of monetary resources, the implementation of calculation discipline, the achievement of rational proportions of equity and borrowed capital and its most efficient use.

The main goal of the financial analysis is to timely identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency. In this case, it is necessary to solve the following tasks:

timely and objective diagnostics of the financial condition of the enterprise, the establishment of its "pain points" and the study of the reasons for their formation.
identification of reserves for improving the financial condition of the enterprise, its solvency and financial stability.
development of specific recommendations aimed at more efficient use of financial resources and strengthening the financial condition of the enterprise.
forecasting possible financial results and developing models of financial condition with a variety of options for the use of resources.

The assessment of the financial condition can be performed with varying degrees of detail, depending on the purpose of the analysis, available information, etc. The content and the main goal of financial analysis is to assess the financial condition and identify the possibility of increasing the efficiency of the functioning of an economic entity with the help of a rational financial policy. The financial condition of an economic entity is a characteristic of its financial competitiveness (i.e., solvency, creditworthiness), the use of financial resources and capital, the fulfillment of obligations to the state and other business entities.

In the traditional sense, financial analysis is a method of assessing and predicting the financial condition of an enterprise based on its financial statements. It is customary to distinguish two types of financial analysis - internal and external. Internal analysis is carried out by employees of the enterprise (financial managers). External analysis is carried out by analysts who are outsiders to the enterprise (for example, auditors).

Internal analysis is a study of the mechanism of formation, placement and use of capital in order to search for reserves to strengthen the financial condition, increase profitability and increase the equity capital of a business entity. External analysis is a study of the financial condition of a business entity in order to predict the degree of risk of capital investment and the level of its profitability. Internal analysis is carried out by services for the enterprise, its results are used for planning, monitoring and forecasting the financial condition. Its goal is to ensure a systematic flow of funds and place its own and borrowed funds in such a way as to get the maximum profit and exclude bankruptcy. External analysis is carried out by investors, suppliers of material and financial resources, regulatory authorities on the basis of published reports. Its purpose is to establish the possibility of profitable investment in order to maximize profits and eliminate losses.

Achievement of the objectives of the analysis of the financial condition of the enterprise is carried out with the help of various methods and techniques. There are various classifications of methods of financial analysis. The practice of financial analysis has developed the basic rules for reading (analysis methodology) of financial statements. Among them, 6 main ones can be distinguished:

Horizontal (time) analysis - comparison of each reporting item with the previous period;
Vertical (structural) analysis - determining the structure of the final financial indicators and identifying the impact of each reporting item on the result as a whole;
Trend analysis - comparing each reporting item with a number of previous periods and determining the main trend in the dynamics of the indicator, cleared of random external and individual characteristics of individual periods - forward-looking forecast analysis;
Analysis of relative indicators (financial ratios) - calculating the numerical ratios of various reporting forms, determining the relationship of indicators.
Comparative analysis - divided into: on-farm - comparison of the main indicators of the enterprise and subsidiaries or divisions; inter-farm - comparison of the company's indicators with the indicators of competitors with the industry average.
Factor analysis - analysis of the influence of individual factors (reasons) on the result indicator.

The traditional financial analysis algorithm includes the following steps:

Collecting the necessary information (the amount depends on the tasks and the type of financial analysis). Information processing (compilation of analytical tables and aggregated reporting forms).
Calculation of indicators of changes in items of financial statements.
Calculation of financial ratios for the main aspects of financial activities or intermediate financial aggregates (financial stability, solvency, profitability).
Comparative analysis of the values of financial ratios with the standards (generally recognized and industry average).
Analysis of changes in financial ratios (identifying trends of deterioration or improvement).
Preparation of an opinion on the financial condition of the company based on the interpretation of the processed data.

Analytical calculations are performed either as part of an express analysis or in-depth analysis.

The purpose of the express analysis is to assess the financial well-being and dynamics of the development of a commercial organization, which is not difficult in terms of time and complexity of the implementation of algorithms.

In-depth analysis specifies, expands or supplements individual express analysis procedures.

System of indicators and coefficients
There are six groups of indicators that describe the property status of a commercial organization, its liquidity, financial stability, business activity, profitability, position in the securities market.

1. The main characteristics of the property status of a commercial organization are:

the amount of household assets at its disposal (most often it is understood as currency, i.e. the balance sheet total, although in market conditions, and even more so in inflationary conditions, this estimate does not coincide at all with the market value of the organization);
the share of non-current assets in the balance sheet currency;
share of the active part of fixed assets, depreciation rate.

2. The main characteristics of the liquidity and solvency of a commercial organization are:

the amount of own circulating assets,
ratios of current, quick and absolute liquidity.

3. The financial stability of a commercial organization is characterized by the following indicators:

autonomy ratio shows the share of own funds in the total amount of the enterprise's resources
financial soundness ratio shows what part of current liabilities can be repaid by the company's own capital
shows the share of own funds in the total amount of the company's debt
ratio of the ratio of borrowed and own funds shows the cost of funds attracted by the enterprise per 1 ruble. own
equity maneuverability ratio shows the degree of mobility of the company's own funds.

4. Key indicators of business activity:

the ratio of the growth rate of assets, revenue and profit;
turnover indicators;
return on assets;
labor productivity;
the duration of the operating and financial cycle.

5. The profitability of the financial and economic activities of a commercial organization is characterized by indicators:

profit;
product profitability;
return on capital advanced;
the profitability of your own capital.

6. Indicators of the position on the securities market:

market value of a commercial organization;
earnings per share;
total return on shares (bonds);
capitalized return on shares (bonds).

The overwhelming majority of the coefficients are calculated according to the balance sheet and income statement; moreover, the calculation can be carried out either directly according to the reporting data, or using a consolidated balance sheet. The convolution (consolidation) of the balance is carried out by combining into groups of homogeneous items. Thus, the number of balance sheet items can be sharply reduced, and its visibility can be increased. This technique is especially useful and necessary for a comparative analysis of the balances of domestic and foreign commercial organizations. In economically developed countries, there is no strict regulation of the balance structure. Therefore, one of the first steps of comparative analysis is to bring balance sheets to a structure comparable in terms of the composition of items. Convolution can also be used when preparing a balance sheet for calculating analytical coefficients; by aggregating articles in this case, greater visibility is achieved for reading the balance and the calculation algorithms are simplified.

With the help of absolute and relative indicators in accounting and analytical work, several types of analysis can be carried out.

Comprehensive assessment of financial condition
Evaluation of a separate group of accounting objects or a separate side of the organization's activities
Assessment of inventory financing practices... The ratio between stocks of raw materials, materials, finished products and sources of coverage is estimated. This piece of analysis is especially important for commercial organizations, in the balance sheets of which inventories occupy a significant share. The meaning of such an analysis is to check which sources of funds and in what volume are used to cover production (commodity) stocks.
Assessment of the degree of satisfaction of the balance sheet structure... According to Resolution No. 498, the indicators for assessing the satisfactory structure of the balance sheet are: current liquidity ratio (Klt); the coefficient of provision with own circulating assets (Kos) and the coefficient of restoration (loss) of solvency (Kuv).
Assessment of the borrower's creditworthiness.The formalized methods for assessing the creditworthiness of potential borrowers are based on the calculation of a number of ratios, for example, current liquidity and profitability, and their comparison with some threshold values set by the lender in the form of a special scale. Depending on which class the borrower falls into, he can get a loan on certain conditions.
Bank reliability ratings... The rating estimates are based on various indicators, the calculation algorithms of which are similar to the algorithms for calculating the above coefficients characterizing the financial condition of the object of analysis, and are built taking into account the specifics of the bank's activities and its reporting. These indicators necessarily include liquidity ratios. On the basis of these indicators, as a rule, a certain consolidated criterion is built that gives a generalized assessment of the bank's reliability.

Sources of information for financial analysis

The source of information for conducting financial analysis is the standard forms of financial statements:

Balance sheet (form No. 1)
Report on financial results and their use (form No. 2).

Additional data is needed to conduct an in-depth analysis. There are four main positions for which additional information is required.

1. The share of fixed costs in the cost price (in the cost of products sold). The most significant information for analysis is provided by dividing the costs (reflected in the form No. 2) into variable and constant components. It is convenient to describe the cost structure by specifying the share of fixed costs in the cost of goods sold.

Allocation of fixed and variable costs allows you to analyze the break-even point, assess the dynamics of price changes for products sold and materials consumed in the production process (calculate the price coefficient), determine the reasons for losses from core activities (increase in variable or fixed costs).

Of the general list of additional data, information on the cost structure is the most important.

The source of information on the share of fixed costs in the cost price can be form 5-z "Information on the costs of production and sale of products (works, services)". However, the information in this form may require additional processing, for example, dividing the costs of materials, fuel, energy into variable and constant components; allocation of a share of costs for products sold from the total cost of the period.

One of the options for determining the amount of fixed costs for the period is the use of information from statements (estimates) of overhead costs for the period for individual shops and production facilities of the enterprise.

Often, enterprises have similar reporting forms - statements of general business, general workshop costs and equipment maintenance and operation costs, which are drawn up by each of the departments (production, services) of the organization.
Based on the statements for each workshop (service, production), fixed costs are allocated, written off to the cost of production of a given period. Summing them up, you can estimate the total amount of fixed costs of the enterprise included in the cost of goods manufactured in a given period. Knowing what proportion of the manufactured products were sold, it is possible to determine the amount of fixed costs included in the cost of goods sold.

If the statements of general shop, general plant costs, etc. contain cost elements that are, in fact, variable, additional processing of these documents is required. For example, a bill of general shop expenses may contain wages of auxiliary workers, determined on a piece-rate basis.
In this case, the wages of auxiliary workers is a variable, and it must be attributed to the variable costs of the period.

2. The total amount of depreciation of fixed assets and intangible assets. To assess the condition of the property and build a cash flow statement, it is necessary to know the total depreciation of fixed assets and intangible assets, accrued for each analyzed reporting date.

A source of information on the amount of depreciation deductions for fixed assets and intangible assets as of a certain reporting date can be a reference to Section 3 "Depreciable Property" (Appendix 5 to the Balance Sheet).

3. The amount of interest accrued for the period for attracted funding sources. To analyze the financial leverage and build an indirect cash flow statement, information is needed on the amount of interest for attracted funding sources, accrued in each analysis interval. It is advisable to separate from the total amount the interest that reduces the taxable base when calculating income tax, and the interest that does not reduce taxable income.

In accordance with the Tax Code, interest on borrowed funds reduces taxable profit in the following amount (Articles 265, 269, 270):

1. In full, if the amount of accrued interest does not deviate significantly (deviates by no more than 20%) from the average level of interest charged on debt obligations issued in the same reporting period on comparable terms.
2. In the amount of [CBRF Refinancing Rate * 1.1] for ruble loans or 15% for loans in foreign currency in the absence of debt obligations issued in the same quarter on comparable terms.

4. Average number of employees. Wage fund. To analyze labor efficiency, data on the average number of employees and the amount of wages accrued in each of the periods under consideration are required.

Information on the number and wages of employees can be obtained, for example, using the appendix to the Balance Sheet No. 4-FSS of the Russian Federation "Payroll for the funds of the Social Insurance Fund of the Russian Federation", form No. P-4 "Information on the number, wages and movement of employees" ...

It is advisable to reflect the above additional data in a separate tabular form.

The list of additional data can be expanded depending on the task set during the analysis.

Analysis period duration is determined by the frequency of preparation of reporting data and can vary from a month to a year. When using automated accounting programs, the frequency of preparation of information and, therefore, the duration of the analysis period can be several days.

One of the tasks of financial analysis is to identify the dynamics (trends and patterns) of changes in the state of the enterprise in the period under study. In this regard, it is recommended to choose a consideration horizon of at least a year with a quarterly (monthly) breakdown.

The reliability of the results of financial analysis and, consequently, the correctness of the management decisions taken depends on the degree of reliability of the initial data.

Financial analysis methodology

Analytical procedures for analyzing financial condition are carried out according to a two-model system:

express analysis of financial and economic activities;
in-depth financial analysis.

The detailing of the procedural system of financial analysis depends on its goals and objectives, as well as on various factors (informational, methodological, temporary, personnel and technical support).

The purpose of the express analysis of the financial and economic activities of the enterprise is to obtain prompt, visual and reliable information about its financial well-being.

preliminary (organizational) stage;
preliminary review of financial statements;
economic reading and reporting analysis.

The purpose of the first stage is to decide on the advisability of analyzing the financial statements and their readiness to read. The first task is solved with the help of an auditor's report. There are two types of such conclusions - standard and non-standard.

Standard opinion is a unified and summarized document containing a positive assessment of the auditor on the reliability of the information on the property and financial situation of the enterprise presented in the reporting. In the presence of such an opinion, the external analyst can rely on the opinion of the auditor and not perform additional analytical procedures in order to determine the financial condition of the company.

A non-standard auditor's report is more voluminous and contains additional information of interest to users of the statements. It may contain an unconditional positive assessment of the work of the enterprise or such an assessment, but with reservations.
For example, when auditing the statements of independent members of a financial and industrial group by different audit firms.

Checking the readiness of reporting for use is of a technical nature, since its visual and counting check is carried out on formal grounds.

The purpose of the second stage is to get acquainted with the annual report and the explanatory note to it. This is necessary in order to assess the operating conditions of the enterprise in the reporting period and to identify the main trends in its performance indicators (profitability, turnover of assets and equity capital, balance sheet liquidity, etc.).

When analyzing financial indicators, one should take into account some distorting factors, in particular inflation. The balance sheet as the main analytical document is not free from restrictions. For example, it reflects the constancy in the funds and liabilities of the enterprise for a certain date (at the end of the month, quarter), but does not answer the question of why this situation has developed. Balance sheet is a collection of instant data at the end of the reporting period, therefore it does not reflect the sources of funds of the enterprise and their use within the reporting period.

The third stage is the main one in the express analysis. Its purpose is a generalized description of the financial and economic activities of a commercial organization. It is carried out with varying degrees of detail in the interests of information users. In general, at this stage, the study of the sources of funds of the enterprise, their placement and efficiency of use is carried out. The point of express analysis is the selection of a minimum number of indicators and constant monitoring of their dynamics.

One of the options for selecting analytical indicators is presented in the table.

Table. System of analytical indicators for express analysis

Direction (procedure) of financial analysis	Indicators
1. Assessment of the economic potential of the enterprise
1.1. Assessment of property status	1. The amount of fixed assets and their share in assets. 2. Coefficients of depreciation, renewal and disposal of fixed assets. 3. The total amount of household assets at the enterprise (balance sheet)
1.2. Financial assessment	1. The amount of equity capital and its share in the sources of funds. 2. Ratio of general liquidity (solvency). 3. The share of own circulating assets in circulating assets and equity. 4. The share of long-term liabilities in the sources of funds. 5. Share of short-term liabilities in sources of funds
1.3. The presence of unfavorable items in the financial statements	1. Losses. 2. Loans and loans not repaid on time. 3. Overdue receivables and payables. 4. Bills issued (received) overdue
2. Evaluation of the effectiveness of financial and economic activities
2.1. Profitability assessment	1. Accounting profit. 2. Net profit 3. Return on assets (property). 4. Return on sales. 5. Profitability of current (operating) activities
2.2. Assessment of the dynamism of enterprise development	1. Comparative growth rates of sales, assets and profits. 2. The turnover of assets and equity. 3. Length of operating and financial cycles
2.3. Assessment of the effectiveness of economic potential	1. The profitability of the advanced (total) capital. 2. Return on equity

Express analysis concludes with the conclusion about the advisability of further in-depth analysis of the financial and economic activities of the enterprise.

The purpose of an in-depth (detailed) analysis is a detailed description of the property and financial situation of an enterprise, an assessment of its current financial results and a forecast for the future period. It complements and expands the rapid analysis procedures. The level of detail depends on the qualifications and desires of the analyst.

In general, the program for an in-depth analysis of the financial and economic activities of the enterprise looks like this (as one of the possible options).

Stage 1: analysis of the dynamics and structure of the balance
Stage 2: analysis of the financial stability of the organization.
Stage 3: analysis of the liquidity of the balance sheet and the solvency of the enterprise
Stage 4: analysis of the state of assets
Stage 5: analysis of business activity
Stage 6: diagnostics of the financial condition of the enterprise

Analysis of the dynamics and structure of the balance

In the process of assessing the property status of an organization, the composition, structure and dynamics of its assets are studied according to the balance sheet data. The balance allows you to give a general assessment of changes in the entire property of the enterprise, to allocate in its composition circulating (mobile) and non-circulating (immobilized) funds, to study the dynamics of the structure of the property. The structure is understood as the percentage of individual groups of property within these groups.

Analysis of the dynamics of the composition and structure of property makes it possible to establish the size of the absolute and relative increase or decrease in the total property of the enterprise and its individual types. The increase (decrease) in the asset indicates the expansion (contraction) of the enterprise.

Identification of "sick" balance sheet items
Balance sheet analysis can be carried out directly on the balance sheet or on the aggregated analytical balance sheet below. The articles (lines) of the balance sheet, which are recommended to be included in the selected groups of the analytical balance, are indicated in brackets.

Table. Aggregated analytical balance

	Symbol	For the beginning of the year	At the end of the year

1. Cash and short-term financial investments (p. 250 + p. 260)
2. Accounts receivable and other current assets (line 215 + line 240 + line 270)
3. Inventories and costs (p. 210 - p. 215 + p. 220)
Total current assets (working capital) (line 290 - line 230)
4. Immobilized funds (non-current assets) (line 190 + line 230)
Total assets (property) (line 300)

1. Accounts payable and other short-term liabilities (line 620 + line 630 + line 650 + line 660)
2. Short-term loans and borrowings (p. 610)
Total short-term debt capital (short-term liabilities) (line 690 - line 640)
3. Long-term borrowed capital (long-term liabilities) (p. 590)
4. Equity (p. 490 + p. 640)
Total liabilities (equity) (line 700)

The analytical balance retains the general balance model: SVA = SVK or DS + DZ + ZZ + VA = KZ + KK + DO + SK.

In the course of the preliminary assessment of financial statements, we identify and evaluate the dynamics of “sick” reporting items of two types:

Evidence of the extreme unsatisfactory performance of a commercial organization in the reporting period and the resulting poor financial position (uncovered losses, overdue loans and borrowings and accounts payable, etc.);
Evidence of certain shortcomings in the organization's work, which, if they are regularly repeated in the reporting of several adjacent periods, can significantly affect the financial position of the organization (overdue accounts receivable, debt written off to financial results, fines collected from the organization, penalties, penalties, negative net cash flow, etc.).

The first group includes:

"Uncovered losses of previous years" (form No. 1), "Uncovered loss of the reporting year" (form No. 1), "Loans and loans not repaid on time" (form No. 5), "Accounts payable overdue" (form . №5), "Bills issued overdue" (f. №5). These articles show the grossly unsatisfactory performance of the commercial organization during the reporting period and the resulting poor financial position. The reasons for the formation of a negative difference between income and expenses for the enlarged nomenclature of items can be traced in form No. 2 (result from sales, result from other sales, result from non-sales transactions). The reasons for unprofitable work are analyzed in more detail in the course of internal analysis based on accounting data. So, an element of the article "Settlements with creditors for goods and services" is the debt to suppliers on unpaid settlement documents. The presence of such overdue debt indicates serious financial difficulties for a commercial organization.

It is customary to refer to the second group the data given in the second section of Form No. 5: "Receivables overdue", "Promissory notes received overdue" and "Accounts receivable written off to financial results". The significance of the amounts under these items in relation to the financial stability of the enterprise depends on their share in the balance sheet currency and indicates the presence of problems with customers.

Deficiencies in work in a hidden, veiled form are reflected in a number of balance sheet items, which can be identified as part of an internal analysis using current accounting data. This is not caused by falsification of data, but by the existing method of compiling the balance sheet, according to which many balance sheet items are complex. In particular, this applies to articles:

"Settlements with debtors for goods, works and services", which may include unjustified receivables in the form of:

goods shipped and work handed over according to settlement documents that have not been transferred to the bank for collection, for which the deadlines established for the delivery of documents to secure loans have expired (accounts 62 and 45)
goods shipped and work handed over according to settlement documents not paid on time by buyers and customers (accounts 62 and 45)
goods in custody with buyers due to refusal of acceptance (accounts 62 and 45)
settlements for goods sold on credit and not paid on time (accounts 62)
settlements for goods sold on credit, not paid on time and executed with notarial signatures (account 62)
promissory notes for which funds were not received on time (accounts 62)

"Settlements with personnel for other operations", which may reflect unjustified receivables in the form of settlements with materially responsible persons for shortages, damage and theft (subaccount 73-3)
"Other assets", which may include shortages from damage to inventory, not written off from the balance sheet in the prescribed manner (account 84)
"Settlements with creditors for goods and services", which may include unjustified accounts payable in the form of:

settlements with suppliers on unpaid settlement documents (account 60)
settlements with suppliers for non-invoiced deliveries (account 60)
settlements with suppliers on late payment of bills (account 60)

The indicated amounts are not explicitly allocated in the balance sheet, but they can be easily identified within the framework of an internal analysis by analytical transcripts to accounts 45,60,62,73,84. The reasons for these amounts can be different. However, if their growth in dynamics is observed, this indicates serious shortcomings in the organization of accounting and internal control at the enterprise.

Certain shortcomings in financial and economic activities are indicated by the excess of the amount under the item "Settlements with employees on loans received by them" over the amount "Loans for workers and employees" (the corresponding decryption can be obtained as part of an internal analysis). This indicates that the company did not withhold the next installments to repay the debt from the employees, but nevertheless paid the corresponding amount to the bank to repay the loans, i.e. there is an unplanned use of funds.

In the course of the analysis, it is advisable to determine the growth rates of the most significant items (groups) of the balance sheet and compare the results obtained with the growth rates of sales proceeds. An important area of analysis is the vertical analysis of the balance sheet, during which the proportion and structural dynamics of individual groups and items of the asset and liability of the balance sheet are assessed.

A "good" balance meets the following conditions:

the balance sheet currency at the end of the reporting period increases compared to the beginning of the period, and its growth rate is higher than the inflation rate, but not higher than the revenue growth rate;
all other things being equal, the growth rate of current assets is higher than the growth rate of non-current assets and short-term liabilities;
the size and growth rate of long-term sources of financing (equity and long-term borrowed capital) exceed the corresponding indicators for non-current assets;
the share of equity capital in the balance sheet is not less than 50%;
the size, share and growth rates of receivables and payables are approximately the same;
there are no uncovered losses in the balance sheet.

When analyzing the balance sheet, one should take into account changes in the accounting methodology and in tax legislation, as well as the provisions of the organization's accounting policy.

The relative indicators of the balance make it possible to carry out horizontal and vertical analysis. Horizontal analysis involves the study of the absolute indicators of the articles of the organization's reporting for a certain period, the calculation of the rate of their change and assessment. But in conditions of inflation, the value of horizontal analysis is somewhat reduced, since the calculations made with its help do not reflect the objective changes in indicators associated with inflationary processes. Horizontal analysis is complemented by vertical analysis of the study of financial indicators.

Vertical analysis refers to the presentation of reporting data in the form of relative indicators through the share of each item in the total reporting result and an assessment of their change over time. Relative indicators smooth out the influence of inflation, which makes it possible to fairly objectively assess the ongoing changes.

Analysis of the financial stability of the enterprise

The essence of assessing financial stability is the assessment of the availability of reserves and costs by sources of formation. The degree of financial stability is the reason for a certain degree of the organization's solvency. The most generalized indicator of financial stability is the surplus or lack of sources of formation of stocks and costs.

The absolute indicators of financial stability are indicators characterizing the state of reserves and their availability with sources of formation:

Own working capital (own working capital): SOS = SK - VA
Net working capital: PSC = SK + DO - VA or PSC = OA - KO
Net assets: CHA (the calculation procedure is established by the letter of the Ministry of Finance of Russia and the Federal Commission for the Securities Market. The analytical balance presented above is formed so that SK = CHA)

Relative indicators of financial stability characterize the degree of protection of the interests of investors and creditors. The basis for their calculation is the cost of funds or sources of operation of the enterprise. The owners of the enterprise are interested in optimizing their own capital and minimizing borrowed funds in the total volume of financial sources. Lenders assess the financial stability of the borrower by the amount of equity capital and the likelihood of preventing bankruptcy.

The financial stability of an enterprise is characterized by the state of its own and borrowed funds and is assessed using a system of financial ratios.

Table. Characteristics of indicators of financial stability

Indicator name	Calculation method and designation	Characteristic
Financial independence ratio	Ph.D. = SC / WB	Share of equity in the balance sheet currency. The recommended value of the indicator is higher than 0.5;
Financial stress ratio	Kf. = ZK / WB	The share of borrowed funds in the borrower's balance sheet currency. Recommended value no more than 0.5
Debt ratio	KZ = ZK / SK	The ratio between borrowed and own funds. Recommended value is not higher than 0.67
Coefficient of provision with own circulating assets	Ko = COC / OA	The share of COC in the total value of the company's current assets. Recommended value? 0.1.
SOS maneuverability coefficient	Km = COC / SK	The share of COC in the total cost of equity. Recommended value 0.2-0.5
Real Property Value Ratio	Kreal st-ti = (VOA + Z) / WB	Shows the share of means of production in the value of property, provision with means of production. The recommended value is more than 0.5.
Equity ratio of inventories	Kipn = COC / Z	It characterizes the extent to which inventories are covered by own funds (they need to attract borrowed funds). Value: 0.6-0.8

Analysis of balance sheet liquidity and solvency of the enterprise

Solvency characterizes the ability and ability of an enterprise to timely and fully fulfill its financial obligations to internal and external partners, as well as to the state. Solvency directly affects the forms and conditions of commercial transactions, including the ability to obtain loans and borrowings.

Liquidity determines the ability of an enterprise to quickly and with a minimum level of financial losses convert its assets (property) into cash. It is also characterized by the presence of the firm's liquid assets in the form of cash balances on hand, in bank accounts, and easily realizable elements of current assets (for example, short-term securities).

The study of the problem of the solvency of organizations shows that the debt of business entities is a frequent phenomenon accompanying market transformations. In this regard, the issue of analysis of solvency acquires special relevance, the main purpose of which is to identify the reasons for the loss of solvency and find ways to restore it. When assessing the solvency and liquidity of an enterprise, its ability to pay for all its obligations (solvency) and its ability to pay off short-term obligations and make unforeseen expenses (liquidity) are analyzed.

The need to analyze the liquidity of the balance sheet arises in market conditions in connection with the strengthening of financial constraints and the need to assess the creditworthiness of the enterprise. The liquidity of an enterprise is defined as the degree of transformation of the coverage of the enterprise's liabilities by its assets, the time of conversion of which into monetary form corresponds to the maturity of the liabilities. The less time it takes for a given type of asset to take on a monetary form, the higher its liquidity. The analysis of balance sheet liquidity consists in comparing funds for an asset, grouped by their degree of liquidity and arranged in descending order of liquidity, with liabilities for liabilities, grouped by maturity and arranged in ascending order of maturity.

Balance sheet liquidity means the availability of working capital in an amount potentially sufficient to pay off short-term liabilities. The liquidity of the balance sheet is the basis of the organization's solvency. Assessment of balance sheet liquidity can be made by various methods, including on the basis of calculating the main liquidity ratios.

The absolute liquidity ratio (Cal) shows how much of the short-term debt the company can repay in the near future.

The critical (urgent) liquidity ratio (intermediate coverage ratio) (Kcl) characterizes the expected solvency of the enterprise for a period equal to the average duration of one turnover of receivables.

The current liquidity ratio (Ktl) shows the sufficiency of the company's current assets to cover its short-term liabilities.

The calculation of each of the ratios includes certain groups of current assets that differ in the degree of liquidity (i.e., the ability to transform into cash during the production and commercial cycle).

Various liquidity indicators not only provide a versatile characterization of the stability of the financial condition, but also meet the interests of various external users of analytical information. For example, the company's suppliers are interested in whether the company will be able to settle accounts with them in the near future, so they will pay attention, first of all, to the absolute liquidity ratio. And the bank lending to the company or lenders will be more interested in the value of the critical liquidity ratio. The owners of the company - shareholders, most often assess the financial stability of the company in the long term, and therefore the current liquidity ratio is more important to them.

It should be noted that the level of liquidity ratios is not yet a sign of good or bad solvency, and therefore it is advisable to supplement the analysis with the calculation of financial stability indicators; Assessment of financial stability is associated with the study of the composition, structure and dynamics of liabilities (funding sources) of the organization. At the same time, special attention is paid to the ratio of the company's liabilities and equity capital, their rates and growth, which makes it possible to judge the propensity or disinclination of the company's management to take risks when making financial decisions. The task of financial stability is to assess the degree of independence of the organization from borrowed sources of financing and the optimality of the structure of the organization's assets and liabilities.

Assets condition analysis

As part of the analysis of the balance sheet, it is necessary to analyze the composition, structure and efficiency of the use of non-current and current assets. To assess the effectiveness of current assets, indicators of profitability and turnover are used.

To assess the turnover of working capital in general, the following indicators can be recommended:

The turnover ratio of working capital: Кб = N / ОАср, where N is the proceeds from sales; ОАср - the average value of current assets.

The period of the working capital turnover: Po = OASr * D / N, where D is the number of days in the analyzed period.

Analysis of the dynamics, composition and structure of non-current assets on the balance sheet should be supplemented by an analysis of fixed assets.

Business activity analysis

After considering the methodology for calculating the indicators of liquidity and financial stability, it is necessary to calculate the coefficients of business activity and profitability to assess the effectiveness of the financial activities of the enterprise.

Business activity indicators are subdivided into qualitative (current and prospective) and quantitative (absolute and relative).

Current indicators characterize business activity at a specific research date. With high values of these indicators, the organization, as a rule, has a fairly high solvency, creditworthiness, financial stability and investment attractiveness. As for the promising quality indicators, they reflect such actions and operations of the organization, which in the future will ensure high rates of business activity (purchase of new high-tech equipment, attraction of highly qualified personnel, active marketing research, etc.). Practice shows that relative indicators are of the greatest importance in the analysis of business activity. They have a number of advantages over absolute ones. On their basis, it is possible to carry out spatial comparisons between enterprises of different directions and sizes of activity. In addition, the coefficients obtained on the basis of the ratio of cost indicators exclude the influence of inflation. Relative indicators of business activity characterize the efficiency of the use of resources (property of the enterprise). The basis of the well-known methods of analyzing the business activity of an enterprise is the assessment of the turnover of assets and liabilities of the company. As a result, it is possible to analyze the speed of their circulation within the circulation of capital. The higher this speed, the more business activity the organization demonstrates. By combining the turnover period of certain types of current assets and short-term liabilities, it is possible to calculate the duration of the operating and financial cycles, the reduction of which indicates an increase in the business activity of the enterprise.

The main indicators for assessing business activity are:

Asset turnover ratio;
Duration of one asset turnover in days;
Non-current assets turnover ratio
Duration of one turnover of non-current assets in days
Turnover ratio of current assets
Duration of one turnover of current assets in days
Accounts receivable turnover ratio
Duration of one turnover of receivables in days
Equity capital turnover ratio
Duration of one turnover of equity in days
Accounts payable turnover ratio
Duration of one turnover of accounts payable in days

The effectiveness and economic feasibility of the operation of the enterprise is assessed using a system of profitability indicators. In the broadest sense of the word, profitability means profitability, profitability. An enterprise is considered profitable if the income from the sale of products (works, services) covers the costs of production (circulation) and, in addition, form the amount of profit sufficient for the normal functioning of the enterprise.

The economic essence of profitability can be disclosed only through the characteristics of the system of indicators. Their general meaning is to determine the amount of profit from one ruble of invested capital.

An assessment of the profitability of an enterprise is made to assess the effectiveness of costs, to predict financial results in connection with the changing circumstances of the economy. The value of the level of profitability can be used to assess the long-term well-being of the enterprise, i.e. the ability of the enterprise to generate sufficient return on investment. For long-term lenders and investors investing money in the company's equity capital, this indicator is a more reliable indicator than indicators of financial stability and liquidity, which are determined on the basis of the ratio of individual balance sheet items.

Thus, we can conclude that profitability indicators characterize the financial results and efficiency of the enterprise. They measure the profitability of an enterprise from various positions and are systematized in accordance with the interests of the participants in the economic process.

Profitability ratios characterize the profitability of the company's activities, calculated as the ratio of the profit earned to the funds spent or the volume of products sold. Distinguish between the profitability of all capital, non-circulating and circulating assets, own funds, sales, products sold. Let's reflect the indicators of profitability in the table.

Table. Profitability indicators

Indicator name	Calculation method	Characteristic
Return on total capital (RCC)	Rsk = PE / SK x 100%	Shows the amount of net profit attributable to the ruble of equity
Equity efficiency ratio. This indicator characterizes the efficiency of using the invested share capital and serves as an important criterion for assessing the level of quotations of shares on the stock exchange.	Ra = PE / A x 100%
	Ra = PE / A x 100%	The return on equity reflects how much profit is received from each ruble invested by the owners of the enterprise.
Return on non-current assets (RVOA)	Rvoa = BP / VOA x 100%	Characterizes the amount of accounting profit attributable to each ruble of non-current assets
Return on current assets (ROA)	Roa = BP / OAx100%	Shows the amount of accounting profit per one ruble of current assets.
Return on sales (Rsales)	Rsales = BP / VR x 100%	Characterizes how much accounting profit falls on the ruble of sales
Return on products sold (RRP)	Rpr = Prp / Srp x 100%	Shows how much profit from product sales falls on one ruble of total costs.

In the process of analysis, one should study the dynamics of the listed profitability indicators, fulfillment of the plan for their level and make inter-farm comparisons with competitors' enterprises.

Diagnostics of the financial condition of the enterprise

Diagnostics of the financial condition of the enterprise is carried out to establish the insolvency of the enterprise, as well as in order to develop the right solutions for the exit of the enterprise from the crisis state.

When assessing the financial condition of insolvent enterprises, a situation often arises when some estimated indicators exceed the standard value, while others, on the contrary, reach a critical point. For example, one of the analyzed enterprises forms its assets by 93% at the expense of its own funds, while having a current liquidity ratio of 1.2, and another with a current liquidity ratio of 1.8 - by 82% at the expense of borrowed sources.

Given the variety of financial processes, which is not always reflected in the solvency ratios, the difference in the level of their normative assessments and the resulting difficulties in the overall assessment of the enterprise's solvency, many foreign and domestic analysts recommend making an integral or complex diagnostics of the enterprise's financial condition.

The most common approaches to the diagnosis of financial condition are: assessment of the possibility of recovery (loss) of solvency and the use of discriminant mathematical models of the probability of bankruptcy (Altman's model, etc.).

Extensive practical experience in assessing the financial condition of an enterprise and making forecasts for the future has been accumulated in economically developed countries. One of the main accounting principles in these countries is the “going concern concept”. This means that the enterprise has neither the intention nor the compulsory need to stop its activities in the foreseeable future or significantly reduce its scale. It is this principle that makes it possible to use in the reporting the assessment of assets not at the liquidation value, but at the cost price. In view of the exceptional importance of this principle, Western experts have developed a system of indicators of signs of bankruptcy used by both independent and external auditors. In particular, in the UK, the Audit Practice Summary Committee has developed guidelines containing a list of critical indicators for assessing the potential bankruptcy of an enterprise. These indicators are divided into two groups.

The first group includes criteria and indicators, whose unfavorable current values or emerging trends indicate possible significant financial difficulties in the foreseeable future, including possible bankruptcy. These include:

recurring significant losses in the main production activity;
exceeding a certain critical level of overdue accounts payable;
excessive use of short-term borrowed funds as sources of financing for long-term investments;
low values of liquidity ratios;
lack of working capital (functioning capital);
increasing to dangerous limits the share of borrowed funds in the total amount of sources of funds;
wrong reinvestment policy;
excess of the amount of borrowed funds over the established limits;
failure to fulfill obligations to creditors and shareholders (with regard to the timeliness of loan repayment, interest and dividend payments);
the presence of overdue receivables;
the presence of excess production stocks and stale goods;
deterioration of relations with institutions of the banking system;
the use of new sources of financial resources on relatively unfavorable terms;
use of re-amortized equipment in the production process;
potential loss of long-term contracts;
unfavorable changes in the order book.

The second group includes criteria and indicators, the unfavorable values of which do not give grounds to consider the current financial condition as critical. At the same time, they point out that under certain conditions or the failure to take effective measures, the situation can deteriorate sharply. These include:

loss of key management staff;
forced stops, as well as disturbances in the rhythm of the production and technological process;
excessive dependence of the enterprise on any one specific project, type of equipment, type of asset;
excessive reliance on the success and profitability of a new project;
participation of an enterprise in legal proceedings with an unpredictable outcome;
loss of key counterparties;
underestimation of the need for constant technical and technological renewal of the enterprise;
ineffective long-term agreements;
political risk.

Not all of the described criteria and indicators can be calculated directly from the financial statements. At the same time, if, within the framework of the preliminary analysis of the financial condition of the enterprise, it is possible to use additional information on some of the above indicators, then the reliability of the analysis and the validity of the conclusions will only increase.

For the convenience of analyzing the company's solvency, a compacted analytical net balance is used, formed by aggregating elements of balance sheet items that are homogeneous in composition in the necessary analytical sections: real estate, current assets, etc.

In accordance with the current legislation on bankruptcy of enterprises, a limited range of indicators is used to diagnose their insolvency:

current liquidity ratio
indicator of provision with own working capital
coefficient of recovery (loss) of solvency

The basis for recognizing the structure of the balance sheet as unsatisfactory, and the enterprise insolvent is the presence of one of the conditions:

the current liquidity ratio (Ktl) at the end of the reporting period has a value below the standard (2.00)
the ratio of the provision of own circulating assets at the end of the reporting period has a value below the standard (0.1)

The coefficient of provision with own circulating assets (Coss) is determined as follows:

Coss = (current assets - current liabilities) / current assets

If the current liquidity ratio is lower than the standard, and the share of own working capital in the formation of assets is less than the standard, but there is a tendency for these indicators to grow, then the coefficient of recovery of solvency (Kvp) is determined for a period equal to six months:

Kvp = (Ktl1 + 6 / T (Ktl1-Ktl0)) / Ktln, where

К тл1 - liquidity ratio at the beginning of the period
К тл0 - liquidity ratio at the end of the period
Ктлн - standard liquidity ratio
T - reporting period, months.
6 - period of restoration of solvency.

If Kvp> 1, then the company has a real opportunity to restore its solvency, and vice versa, if Kvp

If the actual level of Ktl and Koss is equal or higher than the standard values at the end of the period, but there is a tendency for their decrease, the coefficient of loss of solvency (Kup) is calculated for a period equal to three months:

Kup = K tl1 + 3 / T (K tl1 - K tl0)) / Ktln

If Kup> 1, then the company has a real opportunity to maintain its solvency for three months, and vice versa.

Conclusions on the recognition of the structure of the balance sheet as unsatisfactory, and the enterprises are made insolvent with a negative structure of the balance sheet and the lack of a real opportunity for him to restore his solvency.

Considering the variety of indicators of financial stability, the difference in the level of their critical assessments and the resulting difficulties in assessing the risk of bankruptcy of an enterprise, many domestic and foreign economists recommend making an integral point assessment of financial stability.

Integral point assessment of financial stability
The credit scoring technique was first proposed by the American economist D. Durand in the early 1940s. The essence of this technique is the classification of enterprises according to the degree of risk based on the actual level of financial stability indicators and the rating of each indicator, expressed in points based on expert assessments. A simple scoring model is presented in the table below:

Grouping of enterprises into classes according to the level of solvency:

Index	Class boundaries according to criteria
Index	1 class	2nd grade	Grade 3	4th grade	Grade 5
Return on total capital,%	30 and above (50 points)	29.9-20 (49.9-35 points)	19.9-10 (34.9-20 points)	9.9-1 (19.9-5 points)	less than 1 (0 points)
Current liquidity ratio	2 and higher (30 points)	1.99-1.7 (29.9-20 points)	1.69-1.4 (19.9-10 points)	1.39-1.1 (9.9-1 points)	less than 1 (0 points)
Financial independence ratio	0.7 and above (20 points)	0.69-0.45 (19.9-10 points)	0.44-0.30 (9.9-5 points)	0.29-0.20 (5-1 points)	less than 0.2 (0 points)
Class boundaries	100 points and above	99-65 points	64-35 points	34-6 points

Having determined the values of the coefficients, it is possible to determine the amount of points, on the basis of which the boundaries of the financial strength classes are determined:

1 class- enterprises with a good margin of financial stability, allowing you to be confident in the return of borrowed funds;
2nd grade- enterprises that demonstrate some degree of debt risk, but are not yet considered risky;
Grade 3- problem organizations;
4th grade- enterprises with a high risk of bankruptcy even after taking measures for financial recovery. Lenders risk losing their funds and interest;
Grade 5- companies of the highest risk, practically insolvent.

Problems in the financial condition of the organization and their causes

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An enterprise is an independent economic entity created to conduct economic activities, which are carried out in order to generate profits and meet social needs.

The financial condition of an enterprise is understood as the ability of an enterprise to finance its activities. It is characterized by the provision of financial resources necessary for the normal functioning of the enterprise, the expediency of their location 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 an 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 an enterprise depends on the results of its production, commercial and financial activities. If production and financial plans are successfully fulfilled, then this has a positive effect on the financial condition of the enterprise, and, conversely, as a result of non-fulfillment of 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. ...

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

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

The owners analyze the financial statements to improve the return on equity, to ensure the stability of the firm's rise. Lenders and investors analyze financial statements 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 substantiation of the decision.

The purpose of the analysis is not only to establish and assess 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 directions this work should be carried out, makes it possible to identify the most important aspects and the weakest positions in the financial condition of the enterprise. In accordance with this, the results of the analysis give an answer to the question of what are the most important ways to improve the financial condition of an enterprise in a specific period of its activity. But the main purpose of the analysis is to timely identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency. To assess the stability of the financial condition of an enterprise, a whole system of indicators is used that characterizes changes:

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

the effectiveness and intensity of its use;

the solvency and creditworthiness of the enterprise;

stock of its financial stability.

The indicators should be such that all those who are connected with the enterprise by economic relations can answer the question of how reliable the enterprise is as a partner and, therefore, make a decision about the economic profitability of continuing relations with it. The analysis of the financial condition of the enterprise is based mainly on relative indicators, since it is almost impossible to bring the absolute indicators of the balance sheet into a comparable form in conditions of inflation. Relative performance 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 allows you to identify the strengths and weaknesses of the 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, the development of models of financial condition with a variety of options for using resources;

development of specific measures aimed at more efficient use of 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 services 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 for timely receipt of payments, tax inspectorates to fulfill the plan for the receipt of funds in 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. In this case, the analyst and the manager (manager) may be interested in both the current financial state of the enterprise and its projection for the near or more distant future, i.e. expected parameters of financial condition.

But not only time boundaries determine the alternatives 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 problems. An analytical task is a concretization of the objectives of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. The main factor, ultimately, is the volume and quality of the original information. It should be borne in mind that the periodic accounting or financial statements of an enterprise are only “raw information” prepared in the course of performing accounting procedures at the enterprise.

To make management decisions in the field of production, sales, finance, investment and innovation, management needs constant business awareness on relevant issues, which is the result of selection, analysis, assessment and concentration of the initial raw information, it is necessary to analytically read the initial data based on the goals of analysis and management. ...

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

The introduction of a new chart of accounts of accounting, bringing the accounting forms into greater conformity with the requirements of international standards necessitates the use of a new method of financial analysis, corresponding to the conditions of a market economy. Such a technique is needed for a reasonable choice of a business partner, determining the degree of financial stability of an enterprise, assessing business activity and the effectiveness of entrepreneurial activity.

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

In certain cases, for the implementation of the purposes of financial analysis, it is not enough to use only financial statements. Certain groups of users, for example, management and auditors, have the opportunity to involve additional sources (production and financial accounting data). However, more often than not, annual and quarterly reports are the only source of external financial analysis.

The financial analysis methodology 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 analyzing the financial condition is the balance sheet of the enterprise (form N1 of annual and quarterly reporting). Its importance is so great that financial analysis is often referred to as balance sheet analysis. The source of data for the analysis of financial results is the report on financial results and their use (form No. 2 of the annual and quarterly reports). The source of additional information for each of the blocks of financial analysis is the balance sheet (form No. 5 of the annual reporting).

Questions:

1. Goals, objectives and methods of financial analysis

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. Analysis of cash flow

7. Analysis of the business activity of the enterprise

8. Assessment of the likelihood of bankruptcy

1. Goals, objectives and methods of financial analysis

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

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

When analyzing assets, you should find out due to what types of assets the total value of the property has changed. At the same time, it is preferable to increase the proportion of circulating assets as the most liquid part of the property and their faster growth in comparison with non-circulating 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 working assets, possibly unreasonable diversion of funds into accounts receivable or illiquid inventories.

Comparing the rate of change of inventories on the balance sheet and sales proceeds, it is possible to draw a conclusion about the acceleration or deceleration of the turnover of current assets. A decrease in the share of mobile assets, a 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 reasons for the financial stability (instability) of the organization. At the same time, they assess changes in the sources of financial resources. The enthusiasm for the share of equity capital from any of the sources contributes to an increase in 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, the data on their composition contained in the appendix to the balance sheet. At the same time, attention is drawn to the sharp increase in the most dangerous for the financial condition of the types of debt (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 in the financial position of the organization can be judged by the change in receivables and payables:

A sharp increase and increase in the share of receivables in the composition of current assets means a deterioration in the state of settlements, weakening of 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 you 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 (insolvency of the organization or its partners, the sale of part of the assets, etc.). In stable operating conditions, an increase in the balance sheet total is assessed positively, and a decrease is negative.

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.

The solvency of the enterprise call him willingness to pay off debts in the event of a simultaneous demand for payments from all creditors. To determine the willingness to pay off your debt, indicators of the organization's solvency and balance sheet liquidity are used.

This indicator measures financial risk, that is, the likelihood 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	Calculation method	A comment
1. Solvency ratio	Current assets Long- + short-term liabilities	Shows the ability to cover their debts at the expense of current assets, without resorting to a sale of property. More than 1.
2. Ratio of total liquidity	Current assets Short-term liabilities	Shows the extent to which liabilities are covered by current assets. Characterizes the ability to pay off debts. 2 to 3.
3. Quick ratio	Fast liquid current assets Short-term liabilities	Determines the organization's ability to fulfill obligations from quick-liquid assets. 0.7 to 1.
4. Absolute liquidity ratio	Den. means + briefly urgent fin. attachments Short-term liabilities	It characterizes the organization's ability to pay off debts immediately. The higher it is, the more reliable the organization is. 0.2 to 0.3.
5. Equity ratio	Equity - Fixed assets Current assets	Shows how many own circulating assets fall on 1 ruble of circulating assets. The value is more than 0.1.
6. Ratio of accounts payable and receivable	Creditor's indebtedness Accounts receivable indebtedness	Shows how many times the accounts payable exceed the accounts receivable. The higher the indicator, the more dependence on creditors.

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

Analysis of balance sheet liquidity - comparing funds for an asset, grouped by the degree of diminishing liquidity, with short-term liabilities for liabilities, which are grouped by the degree of maturity.

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, accounts receivable, taxes on acquired values. Their liquidity depends on the timeliness of product shipment, forms of payment, demand for products, purchasing power, etc.

The third group (A 3) is slowly realizable assets (production inventories, work in progress, finished goods). It will take much longer 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 also divided into four groups:

P 1 - the most urgent liabilities (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 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 make it possible to establish trends in changes 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 the indicators of solvency, but also in the long term by calculating the indicators of financial stability. Here are the indicators of financial stability:

Indicators

Calculation method