The main sections of financial analysis. Why and who needs financial analysis

Let's analyze the 12 main coefficients of the financial analysis of the enterprise. Due to their great diversity, it is often impossible to understand which of them are the main ones and which are not. Therefore, I tried to highlight the main indicators that fully describe the financial and economic activities of the enterprise.

In activity, an enterprise always faces its two properties: its solvency and its efficiency. If the solvency of the enterprise increases, then the efficiency decreases. An inverse relationship can be observed between them. Both solvency and performance can be described by coefficients. You can dwell on these two groups of coefficients, however, it is better to split them in half. So the Solvency group is divided into Liquidity and Financial stability, and the Enterprise Efficiency group is divided into Profitability and Business activity.

We divide all coefficients of financial analysis into four large groups of indicators.

Liquidity ( short-term solvency),
Financial stability ( long-term solvency),
Profitability ( financial efficiency),
Business activity ( non-financial efficiency).

The table below shows the division into groups.

In each of the groups, we will select only the top 3 coefficients, as a result, we will have only 12 coefficients. These will be the most important and main coefficients, because, in my experience, they most fully describe the activities of the enterprise. The rest of the coefficients that are not included in the top, as a rule, are a consequence of these. Let's get down to business!

Top 3 Liquidity Ratios

Let's start with the golden trio of liquidity ratios. These three ratios give a complete understanding of the company's liquidity. This includes three ratios:

current liquidity ratio,
absolute liquidity ratio,
Quick liquidity ratio.

Who uses liquidity ratios?

The most popular among all coefficients - it is used mainly by investors in assessing the liquidity of an enterprise.

interesting for suppliers. It shows the ability of the enterprise to pay off contractors-suppliers.

Calculated by lenders to assess the quick solvency of the enterprise when issuing loans.

The table below shows the formula for calculating the three most important liquidity ratios and their normative values.

	Odds	Formula	Calculation	standard
1	Current liquidity ratio	Current liquidity ratio \u003d Current assets / Short-term liabilities	Ktl= p.1200/ (p.1510+p.1520)
2	Absolute liquidity ratio	Absolute liquidity ratio = (Cash + Short-term financial investments) / Short-term liabilities	Cable= p.1250/(str.1510+str.1520)
3	Quick liquidity ratio	Quick liquidity ratio = (Current assets-Stocks)/Current liabilities	Kbl \u003d (p. 1250 + p. 1240) / (p. 1510 + p. 1520)

Top 3 Financial Strength Ratios

Let's pass to consideration of three basic factors of financial stability. The key difference between liquidity ratios and financial stability ratios is that the first group (liquidity) reflects short-term solvency, and the last (financial stability) - long-term. But in fact, both liquidity ratios and financial stability ratios reflect the solvency of the enterprise and how it can pay off its debts.

autonomy coefficient,
Capitalization ratio,
The coefficient of security with own working capital.

Autonomy coefficient(financial independence) is used by financial analysts for their own diagnostics of their enterprise for financial stability, as well as arbitration managers (according to the Decree of the Government of the Russian Federation of June 25, 2003 No. 367 “On approval of the rules for financial analysis by arbitration managers”).

Capitalization ratio important for investors who analyze it to evaluate investments in a particular company. A company with a large capitalization ratio will be more preferable for investment. Too high values of the coefficient are not very good for the investor, as the profitability of the enterprise and thus the income of the investor decreases. In addition, the coefficient is calculated by lenders, the lower the value, the more preferable is the provision of a loan.

recommendatory(according to Decree of the Government of the Russian Federation of May 20, 1994 No. 498 “On certain measures to implement the legislation on the insolvency (bankruptcy) of an enterprise”, which became invalid in accordance with Decree 218 of April 15, 2003) is used by arbitration managers. This ratio can also be attributed to the Liquidity group, but here we will attribute it to the Financial Stability group.

The table below shows the formula for calculating the three most important financial stability ratios and their standard values.

	Odds	Formula	Calculation	standard
1	Autonomy coefficient	Autonomy Ratio = Equity / Assets	Kavt = str.1300/p.1600
2	Capitalization ratio	Capitalization ratio = (Long-term liabilities + Short-term liabilities)/Equity	Kcap=(p.1400+p.1500)/p.1300
3	Working capital ratio	The coefficient of security with own working capital \u003d (Equity capital - Non-current assets) / Current assets	Kosos=(p.1300-p.1100)/p.1200

Top 3 profitability ratios

Let's move on to the three most important profitability ratios. These ratios show the effectiveness of cash management in the enterprise.

This group of indicators includes three coefficients:

Return on assets (ROA),
Return on equity (ROE),
Return on sales (ROS).

Who uses financial stability ratios?

Return on assets ratio(ROA) is used by financial analysts to diagnose the performance of an enterprise in terms of profitability. The coefficient shows the financial return from the use of the company's assets.

Return on equity ratio(ROE) is of interest to business owners and investors. It shows how effectively the money invested (invested) in the enterprise was used.

Return on sales ratio(ROS) is used by the head of the sales department, investors and the owner of the enterprise. The coefficient shows the effectiveness of the sale of the main products of the enterprise, plus it allows you to determine the share of the cost in sales. It should be noted that what is important is not how many products the company sold, but how much net profit it earned net money from these sales.

The table below shows the formula for calculating the three most important profitability ratios and their standard values.

	Odds	Formula	Calculation	standard
1	Return on assets (ROA)	Return on Assets = Net Income / Assets	ROA = p.2400/p.1600
2	Return on equity (ROE)	Return on Equity Ratio = Net Income/Equity	ROE = str.2400/str.1300
3	Return on sales (ROS)	Return on Sales Ratio = Net Profit / Revenue	ROS = p.2400/p.2110

Top 3 business activity ratios

We turn to the consideration of the three most important coefficients of business activity (turnover). The difference between this group of coefficients and the group of profitability coefficients lies in the fact that they show the non-financial efficiency of the enterprise.

This group of indicators includes three coefficients:

Accounts receivable turnover ratio,
Accounts payable turnover ratio,
Inventory turnover ratio.

Who uses business activity ratios?

Used by the CEO, Commercial Director, Head of Sales, Sales Managers, CFO and Finance Managers. The coefficient shows how effectively the interaction between our company and our counterparties is built.

It is used primarily to determine ways to increase the liquidity of the enterprise and is of interest to the owners and creditors of the enterprise. It shows how many times in the reporting period (usually a year, but maybe a month, quarter) the company repaid its debts to creditors.

Can be used by commercial director, sales manager and sales managers. It determines the effectiveness of inventory management in the enterprise.

The table below shows the formula for calculating the three most important business activity ratios and their standard values. There is a small point in the calculation formula. The data in the denominator, as a rule, are taken as averages, i.e. the value of the indicator at the beginning of the reporting period is added to the end and divided by 2. Therefore, in the formulas, everywhere in the denominator is 0.5.

	Odds	Formula	Calculation	standard
1	Accounts receivable turnover ratio	Accounts Receivable Turnover Ratio = Sales Revenue/Average Accounts Receivable	Kodz \u003d str.2110 / (str.1230np. + str.1230kp.) 0.5*	dynamics
2	Accounts payable turnover ratio	Accounts payable turnover ratio= Sales revenue/Average accounts payable	Cockz=p.2110/(p.1520np.+p.1520kp.)0.5*	dynamics
3	Inventory turnover ratio	Inventory Turnover Ratio = Sales Revenue/Average Inventory	Koz = line 2110 / (line 1210np. + line 1210kp.) 0.5*	dynamics

Summary

Let's sum up the top 12 coefficients for the financial analysis of the enterprise. Conventionally, we have identified 4 groups of performance indicators of the enterprise: Liquidity, Financial stability, Profitability, Business activity. In each group, we have identified the top 3 most important financial ratios. The obtained 12 indicators fully reflect the entire financial and economic activity of the enterprise. It is with the calculation of them that it is worth starting a financial analysis. For each coefficient, a calculation formula is given, so it will not be difficult for you to calculate it for your enterprise.

In the face of fierce competition, companies constantly have to fight for survival. To stay afloat, it is not enough to find and occupy a free market niche, you need to maintain and constantly improve your position. In order to solve these problems, companies should regularly conduct a financial analysis of their activities. Conducting a qualitative study will not solve all the problems of the enterprise, but will provide specific information about the strengths and weaknesses that can be effectively used.

Financial analysis - what is it? This is an assessment method that allows you to determine the sustainability of an enterprise by calculating indicators, on the basis of which a conclusion is made about the results of the company's activities in the present and forecasts for the future. During the study, coefficients are calculated, subdivided into several groups depending on the direction of the assessment.

You need to know in order to independently analyze what the main financial indicators are and how to calculate them correctly.

The coefficients used to assess the activities of the enterprise are included in 4 main groups of indicators:

They determine the financial stability of the company in a short time by calculating the degree of mobility of assets and their relationship with each other.
They determine the financial sustainability in the future and characterize the structure of own and
profitability ratios. Determine the efficiency of the use of capital, investments and activities of the company as a whole.
turnover ratios. Determine the cost recovery for the production cycle and the intensity of the use of funds.

Each of the listed groups includes many indicators, but to study the results of the company's activities, it is enough to apply the main ones, of which there are about three dozen.

They are determined according to data taken from the most important reporting documents: the balance sheet and its appendices, activities.

In addition to the output of individual indicators and ratios, to study the state of affairs of the company, factor analysis is used, which consists in compiling an economic model that takes into account the relationship of the coefficients with each other and its impact on the final result.

The use of factor analysis in economics makes it possible to identify more accurate results and positively influence managerial decision-making.

An effective study of the results of the functioning of an enterprise involves not only the calculation of the most important indicators, but also the correct use of the data obtained.

Analysis of the company's activities is carried out by the analytical department. However, in some cases, the participation of auditors is required. Experts will explain, having calculated indicators of financial stability and carried out an analysis, that such a study must be carried out regularly in order to see the dynamics. Thus, it is possible to identify such important factors as gross output, the value of own working capital and others.

Experts will decipher, having carried out the analysis, the solvency of the company, what are the investment risks, how to use assets correctly and as efficiently as possible.

Based on the data obtained, an analytical report is drawn up containing information about the results of the analysis, as well as recommendations, following which will improve the state of affairs of the company.

As mentioned above, in Western financial management, financial analysis is understood as one of the types of analysis of financial statements - the calculation of financial ratios, and under financial statements - the financial statements of an enterprise, adjusted for the purposes of financial analysis. In the Russian theory and practice of financial management, financial analysis refers to the analysis of financial statements, which includes various types of analysis. The classification of types of financial analysis is carried out according to methods and goals.

1. By methods, the following types of financial analysis are distinguished:

1) time (horizontal and trend);

2) vertical (structural);

3) comparative (spatial);

4) factor analysis;

5) calculation of financial ratios.

Time analysis refers to the analysis of changes in indicators over time. Depending on the number of moments or periods of time chosen for the study, horizontal or trend analysis is distinguished (figure).

Under the horizontal (temporal) analysis refers to the comparison of individual indicators of financial statements with indicators of previous periods. Horizontal analysis consists in comparing the values of individual reporting items for the period preceding the reporting period and reporting periods in order to identify sharp changes.

Trend (time) analysis refers to the analysis of changes in indicators over time, i.e. analysis of their dynamics. The basis of trend (temporal) analysis is the construction of time series (dynamic or temporary rads). A dynamic series is understood as a series of numerical values of a statistical indicator arranged in chronological sequence and characterizing the change in any phenomena over time. To build a dynamic series, two elements are needed:

1) levels of the series, which are understood as indicators, the specific values of which make up the dynamic series;

2) the moments or periods of time to which the levels refer.

The levels in the time series can be represented by absolute, average or relative values. The construction and analysis of time series make it possible to identify and measure the patterns of development of any phenomenon in time. It should be noted that patterns do not appear clearly at each specific level, but only in a sufficiently long-term dynamics - trends, and at the same time other, for example seasonal or random, phenomena are superimposed on the main pattern of dynamics. In this regard, the main task of the analysis of dynamic series is to identify the main trend in the change in levels, which is called a trend.

The trend is a long-term dynamic.

Trend - the main trend in changing the levels of time series.

According to the time reflected in the dynamic series, they are divided into instant and interval.

A moment dynamic series is understood as a series, the levels of which characterize the state of the phenomenon on certain dates (points of time).

An interval dynamic series is understood as a series, the levels of which characterize the phenomenon for a specific period of time. The values of the levels of the interval series, in contrast to the levels of the moment, are not contained in the previous or subsequent indicators, which allows them to be summed up and get a dynamic series of a more enlarged period - a series with a cumulative total.

Vertical (structural) analysis refers to the determination of the share of individual articles in the final indicator of a section or balance sheet in comparison with similar indicators of previous periods.

Comparative (spatial) analysis refers to the comparison of indicators obtained as a result of horizontal and vertical analysis for the reporting period with similar indicators for the previous period in order to identify trends in the change in the financial position of the enterprise.

Factor analysis refers to the analysis of the influence of individual factors (reasons) on the indicators of the financial performance of the enterprise. Factor analysis is carried out using deterministic or stochastic methods.

There are the following types of factor analysis:

1) direct factor analysis (analysis itself), in which it is not the effective indicator as a whole that is studied, but its individual components;

2) inverse factor analysis (synthesis), in which, for the purposes of analysis, individual indicators are combined into a common performance indicator.

Calculation of financial ratios. The financial ratio is understood as the ratio of individual indicators of financial statements (items of assets and liabilities of the balance sheet, income statement), characterizing the current financial position of the enterprise. There are the following groups of financial ratios:

1) liquidity;

2) solvency;

3) business activity (turnover);

4) profitability;

5) market activity.

2. According to the goals, the following types of financial analysis are distinguished:

1) express analysis;

2) in-depth analysis (table).

Express analysis is carried out in several stages. The transition from one stage to another is carried out as interest grows. The main stages of the express analysis of the financial condition of the enterprise are: 1) familiarization with the results of the audit:

1) familiarization with financial statements and analysis of the main financial indicators (liquidity, solvency, turnover, profitability, market activity);

2) analysis of the sources of funds of the enterprise, directions and efficiency of their use.

At the first stage, the actual analysis of the financial statements as such is not carried out, but only the acquaintance with the audit report takes place. The auditor's report is drawn up as a result of an audit by an independent accountant-auditor of the annual financial statements of the enterprise. There are the following types of audit report:

1) standard, including:

positive;

Positive with remarks;

negative;

2) non-standard conclusion, which is a refusal to draw up a conclusion.

A positive conclusion and a positive conclusion with comments are accepted for consideration. Depending on the results of familiarization with the audit report, a decision is made to conduct a financial analysis.

The second stage of the express analysis consists in a brief acquaintance with the content of the financial statements itself and the calculation of the main financial ratios.

The third stage of the express analysis consists in a more detailed acquaintance with the structure and volume of the enterprise's funds, the sources of their formation and the efficiency of their use.

The analysis of assets makes it possible to evaluate the optimality of their structure, which affects the property position and financial condition of the enterprise. Asset analysis includes:

1) analysis of the volume and proportion of individual asset items in their overall total;

2) analysis of fixed assets based on the calculation of the coefficients of their depreciation, renewal and disposal.

The analysis of liabilities allows us to assess the volume and ratio of equity and debt capital and, consequently, the degree of dependence of the enterprise on external sources of financing, as well as to identify unfavorable articles of financial statements. Liabilities analysis includes:

1) analysis of the volume and structure of equity capital and its share in the total of sources of funds (liabilities);

2) analysis of the volume and structure of long-term and short-term liabilities, as well as their weight in the overall total of sources of funds (liabilities).

Familiarization with the volume and structure of assets and liabilities makes it possible to identify unfavorable articles of financial statements, which should be divided into two groups:

1) articles characterizing the unsatisfactory performance of the enterprise in previous periods (for example, uncovered losses of previous years);

2) articles characterizing the unsatisfactory performance of the enterprise in the reporting period (for example, overdue accounts receivable; overdue loans and borrowings, including commercial debt to suppliers, represented by invoices and bills of exchange for payment).

An in-depth analysis of financial statements allows you to assess the real financial condition of the enterprise on a certain date, changes in the financial position and financial results of the enterprise for the reporting period. Thus, the goals of in-depth financial analysis should include:

1) assessment of the current financial condition of the enterprise;

2) assessment of the main changes in the financial position for the reporting period;

3) forecast of the financial condition of the enterprise for the near future.

The main indicators of the financial condition of the enterprise are:

1) liquidity;

2) solvency;

3) business activity;

4) profitability;

5) market activity.

In the Russian theory and practice of financial analysis, there are features of the approach to the interpretation of the above indicators:

1) the assessment of the current financial condition of the enterprise is carried out not by calculating financial ratios (liquidity, solvency, turnover, profitability, market activity), as in Western financial management, but by analyzing the balance sheet (horizontal, vertical, comparative, trend);

2) often unjustifiably equate the concepts of "liquidity" and "solvency";

3) the concepts of "liquidity" and "solvency" together constitute the concept of "financial stability", which is absent in the terminology of Western financial management.

Thus, the content of the Russian course "Financial Analysis" can be reduced to the following sections:

1) analysis of the current financial condition of the enterprise based on the dynamics of the balance sheet, horizontal, vertical and comparative analysis of the balance sheet;

2) analysis of the financial stability of the enterprise based on the analysis of liquidity and solvency indicators;

3) cash flow analysis;

4) analysis of business and market activity;

5) analysis of financial results and profitability.

6) analysis of the effectiveness of investment projects.

The object of financial analysis is accounting, which is understood as a unified system of data on the property and financial position of the enterprise and the financial results of its activities. All enterprises with the formation of a legal entity are required to draw up financial statements. Financial statements are compiled on the basis of synthetic and analytical accounting data and in accordance with established forms.

Synthetic accounting is understood as accounting, the basis of which is the enlarged groupings of financial statements indicators. Analytical accounting is understood as accounting, the basis of which is a detailed specification and characteristics of financial statements. Analytical accounting is carried out to detail synthetic accounting data. When preparing financial statements, certain requirements must be met. The financial statements should include only reliable, complete and neutral information that reflects an objective picture of financial and economic activities. The reliability of the data included in the financial statements must be documented by the results of the inventory of property and liabilities.

Each form of financial statements for each indicator provides data for two years: 1) for the year preceding the reporting one; 2) for the reporting year. If the indicators for different periods for some reason turn out to be incomparable, it is necessary to adjust the earliest of them. The content of the adjustment should be disclosed in the appendices to the financial statements.

Some articles of accounting forms are subject to disclosure in the relevant annexes. Unlike Western practice, financial statements are not adjusted for the purposes of financial analysis and are presented in their usual form. Accounting forms include:

1) balance sheet (form No. 1);

2) profit and loss statement (form No. 2);

3) statement of changes in equity (Form No. 3);

4) cash flow statement (Form No. 4);

5) appendices to the balance sheet (form No. 5);

6) explanatory note (to forms No. 1-2);

7) audit report.

Analysis of the financial activity of the enterprise

The financial condition of an economic entity is a characteristic of its financial competitiveness (ie solvency, creditworthiness), the use of financial resources and capital, the fulfillment of obligations to the state and other economic entities. The financial condition of an economic entity includes an analysis of: profitability and profitability; financial stability; creditworthiness; use of capital; currency self-sufficiency.

Sources of information for are the balance sheet and annexes to it, statistical and operational reporting. For analysis and planning, the standards in force in the economic entity are used. Each economic entity develops its planned indicators, norms, standards, tariffs and limits, a system for their evaluation and regulation of financial activities. This information is his trade secret, and sometimes know-how.

The analysis of the financial condition is carried out using the following basic techniques: comparisons, summaries and groupings, chain substitutions. The method of comparison consists in comparing the financial indicators of the reporting period with their planned values (standard, norm, limit) and with the indicators of the previous period. Receiving summaries and groupings consists in combining information materials into analytical tables. The method of chain substitutions is used to calculate the magnitude of the influence of individual factors in the overall complex of their impact on the level of the aggregate financial indicator. This technique is used in cases where the relationship between indicators can be expressed mathematically in the form of a functional relationship. The essence of the reception of chain substitutions is that, successively replacing each reporting indicator with the base one (that is, the indicator with which the analyzed indicator is compared), all other indicators are considered unchanged. This replacement allows you to determine the degree of influence of each factor on the total financial indicator.

The profitability of an economic entity is characterized by absolute and relative indicators. The absolute rate of return is the amount of profit or income. The relative indicator is the level of profitability. The level of profitability of economic entities associated with the production of products (goods, works, services) is determined by the percentage of profit from the sale of products to its cost. The level of profitability of trade and public catering enterprises is determined by the percentage of profit from the sale of goods (public catering products) to the turnover.

In the process of analysis, the dynamics of changes in the volume of net profit, the level of profitability and the factors that determine them are studied. The main factors affecting net profit are the volume of proceeds from product sales, the level of cost, the level of profitability, income from non-operating operations, expenses on non-operating operations, the amount of income tax and other taxes paid from profits. The impact of revenue growth on profit growth is manifested through cost reduction. All costs in relation to the volume of revenue can be divided into two groups: conditionally fixed and variable. Semi-fixed costs are called costs, the amount of which does not change when the proceeds from the sale of products change. This group includes: rent, depreciation of fixed assets, depreciation of intangible assets, etc. These costs are analyzed by absolute amount. Variable costs are costs, the amount of which changes in proportion to the change in the volume of proceeds from the sale of products. This group covers the costs of raw materials, transportation costs, labor costs, etc. These costs are analyzed by comparing the cost levels as a percentage of revenue.

The dependence of profit on sales is expressed using a profitability graph, where the K point is the break-even point. It shows the maximum amount of proceeds from the sale of products in valuation (om) and in natural units of measurement (on), below which the activity of an economic entity will be unprofitable, since the cost line is higher than the line of proceeds from the sale of products. Profitability charts provide a very simple and effective method for approaching complex problems such as: what happens to profit if output decreases: what happens to profit if price is increased, production costs are reduced, and sales fall? The main task of constructing a profitability graph is to determine the break-even point - the point for which the revenue received is equal to cash costs.

The calculation can be made by the analytical method. It consists in determining the minimum amount of proceeds from the sale of products, at which the level of profitability of an economic entity will be more than 0%.

Tmin \u003d (Hpost * T) / (T-Hyper),

where Tmin is the minimum amount of revenue at which the level of profitability is greater than 0%;

Ipost - the amount of conditionally fixed costs, rubles;

Iper - the amount of variable costs, rub.;

T - sales proceeds, rub.

According to the balance sheet, the movement of fixed assets, working capital and other assets for the analyzed period is compared, as well as the movement of sources of funds listed in the liabilities side of the balance sheet. Sources of financial resources are divided into own and borrowed. The growth of the share of own funds positively characterizes the work of an economic entity. Their share in the total amount of sources, equal to 60% or more, indicates the financial independence of the subject

Analysis of the availability and structure of working capital is carried out by comparing the value of these funds at the beginning and end of the analyzed period. Working capital, for which standards are set in an economic entity, are compared with these standards, and a conclusion is made about a shortage or excess of standardized funds.

Particular attention is paid to the state of accounts payable and receivable. These debts may be normal or unjustified. Unjustified accounts payable include debts to suppliers on settlement documents not paid on time. Unjustified receivables cover debts for claims, compensation for material damage (shortage, theft, damage to valuables), etc. Unjustified debt is a form of illegal diversion of working capital and violation of financial discipline. It is important to establish the timing of the occurrence of debts in order to control their liquidation on time.

Solvency analysis is carried out by comparing the availability and receipt of funds with essential payments. Most clearly solvency is revealed when analyzing it for a short period of time (a week, half a month).

Depending on the degree of liquidity, i.e., the rate of conversion into cash, the assets of an economic entity are divided into the following groups:

A1 - the most liquid assets. These include all the company's cash (cash and accounts) and short-term financial investments (chain papers);

A2 - quickly realizable assets, including accounts receivable and other assets;

A3 - slow-moving assets. This includes the items of section II of the asset "Stocks and costs" with the exception of "Deferred expenses", as well as the items "Long-term financial investments", "Settlements with founders" from section I of the asset;

A4 - hard-to-sell assets. These are fixed assets, intangible assets, capital investments in progress, equipment for installation.

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

P1 - the most urgent liabilities. These include accounts payable and other liabilities;

P2 - short-term liabilities, cover short-term loans and borrowings;

P3 - long-term liabilities, include long-term loans and borrowed funds;

P4 - permanent liabilities. These include the articles in section I of the liability "Sources of own funds". To maintain the balance of assets and liabilities, the total of this group is reduced by the amount of the item “Deferred expenses”.

To determine the liquidity of the balance sheet, one should compare the results of the above groups for assets and liabilities. The balance is considered absolutely liquid if A, > P1, A, > P2, A, > P3, A P4.

Analysis of the use of capital is carried out in relation to the total value and to the constituent parts of capital. The efficiency of capital use as a whole is determined by the level of return on capital, which is the percentage of balance sheet profit to the amount of capital (to the sum of working capital, fixed assets, intangible assets). Analysis of the use of working capital is carried out using indicators of the turnover of working capital in them, the turnover ratio. The turnover of working capital in days is determined by dividing the average balance of working capital by the one-day amount of proceeds from the sale of products. The turnover ratio is the ratio of the amount of revenue for the analyzed period (year, quarter) to the average balance of working capital. Acceleration (deceleration) of the turnover of funds releases (additionally involves) funds from circulation. The amount of these released funds is determined by multiplying the change in turnover in days by the one-day amount of revenue.

Analysis of the use of fixed assets of intangible assets is carried out using indicators of capital productivity and capital intensity. The return on assets of fixed assets (intangible assets) is determined by the ratio of the amount of proceeds for the analyzed period to the average cost of fixed assets (intangible assets). The capital intensity of production is determined by the ratio of the average cost of fixed assets (intangible assets) to the amount of revenue for the analyzed period. An increase in capital productivity, i.e., a decrease in capital intensity, indicates an increase in the efficiency of the use of fixed assets and leads to savings in capital investments. The amount of this savings (additional investment) is derived by multiplying the decrease (increase) in the capital intensity of products by the amount of revenue for the analyzed period. Currency self-sufficiency is characterized by the excess of currency receipts over its expenditures for the analyzed period.

Analysis of profitability (profitability)

The profitability of an economic entity is characterized by absolute and relative indicators. The absolute rate of return is the amount of profit or income. The relative indicator is the level of profitability. Profitability is the profitability or profitability of the production and trade process. Its value is measured by the level of profitability. The level of profitability of economic entities associated with the production of products (goods, works, services) is determined by the percentage of profit from the sale of products to its cost:

p \u003d p / u * 100%,

where p is the level of profitability,%;

n - profit from the sale of products, rub.;

and - the cost of production, rub.

The level of profitability of trade and public catering enterprises is determined by the percentage of profit from the sale of goods (public catering products) to the turnover.

Analysis of the profitability of an economic entity is carried out in comparison with the plan and the previous period. In modern conditions of strong inflationary processes, it is important to ensure the comparability of indicators and exclude their influence on price increases. The analysis is carried out according to the work data for the year. Last year's indicators are brought into comparability with the indicator of the reporting year using price indexation, the methodology of which was discussed in the section "Financial Resources and Capital".

Financial stability analysis

A financially stable business entity is one that, at its own expense, covers the funds invested in assets (fixed assets, intangible assets, working capital), does not allow unjustified receivables and payables, and pays its obligations on time. The main thing in financial activity is the correct organization and use of working capital. Therefore, in the process of analyzing the financial condition, the issues of rational use of working capital are given the main attention.

The characteristic of financial stability includes an analysis of:

The composition and placement of the assets of an economic entity;

· dynamics and structure of sources of financial resources;

availability of own working capital;

accounts payable;

availability and structure of working capital;

· accounts receivable;

solvency.

An important indicator for assessing financial stability is the growth rate of real assets. Real assets are actually existing own property and financial investments at their actual value. Real assets do not include intangible assets, depreciation of fixed assets and materials, use of profits, borrowed funds. The growth rate of real assets characterizes the intensity of property growth and is determined by the formula:

A \u003d ((C1 + Z1 + D1) / (C0 + Z0 + D0) - 1) * 100%,

where A is the growth rate of real assets, %;

C - fixed assets and investments, excluding depreciation, trade margins on unsold goods, intangible assets, used profits;

3 - stocks and costs;

D - cash, settlements and other assets, excluding used borrowed funds;

index "0" - previous (base) year;

index "1" - reporting (analyzed) year.

Thus, if the growth rate of real assets for the year amounted to 0.4%, then this indicates an improvement in the financial stability of an economic entity. The next moment of the analysis is the study of the dynamics and structure of sources of financial resources.

Creditworthiness analysis

Under the creditworthiness of an economic entity is understood that it has the prerequisites for obtaining a loan and the ability to return it on time. The creditworthiness of the borrower is characterized by its accuracy in making payments on previously received loans, its current financial condition and prospects for change, and the ability, if necessary, to mobilize funds from various sources.

The bank, before granting a loan, determines the degree of risk that it is willing to take on and the amount of credit that can be provided.

The analysis of credit conditions involves the study of the following issues:

Solidity of the borrower, which is characterized by the timeliness of settlements on previously received loans, the quality of the reports submitted, the responsibility and competence of the management;

The ability of the borrower to produce competitive products;

Income. At the same time, an assessment is made of the profit received by the bank when lending to the specific costs of the borrower in comparison with the average profitability of the bank. The level of income of the bank should be linked to the degree of risk in lending. The bank evaluates the amount of profit received by the borrower in terms of the possibility of paying interest to the bank in the course of carrying out normal financial activities;

The purpose of using credit resources;

The loan amount is made on the basis of the borrower's balance sheet liquidity measures, the ratio between own and borrowed funds;

Repayment is made by analyzing the repayment of the loan through the sale of material assets, provided guarantees and the use of a pledge right;

Loan security, i.e. study of the charter and regulations in terms of determining the right of the bank to take as collateral against the issued loan the borrower's assets, including securities.

A number of indicators are used in the analysis of creditworthiness. The most important of these are the rate of return on invested capital and liquidity. The rate of return on invested capital is determined by the ratio of the amount of profit to the total amount of liabilities on the balance sheet:

where P is the rate of return;

P - the amount of profit for the reporting period (quarter, year), rub.,

ΣК - total liability, rub.

The growth of this indicator characterizes the tendency of the borrower's profitable activity, its profitability.

The liquidity of an economic entity is its ability to quickly repay its debts. It is determined by the ratio of the amount of debt and liquid funds, i.e. funds that can be used to pay off debts (cash, deposits, securities, realizable elements of working capital, etc.). In essence, the liquidity of an economic entity means the liquidity of its balance sheet, which is expressed in the degree to which the obligations of an economic entity are covered by its assets, the period of transformation of which into money corresponds to the maturity of obligations. Liquidity means the unconditional solvency of an economic entity and implies a constant equality between assets and liabilities both in terms of the total amount and the maturity.

Analysis of the liquidity of the balance sheet consists in comparing the funds of the asset, grouped by the degree of their liquidity and arranged in descending order of liquidity, with the liabilities of the liability, grouped by their maturity and arranged in ascending order of terms. Depending on the degree of liquidity, i.e. the rate of conversion into cash, the assets of an economic entity are divided into the following groups:

1 - the most liquid assets. These include all cash (cash and accounts) and short-term financial investments (securities).

2 - quickly realizable assets. They include accounts receivable and other assets;

3 - slow-moving assets. This includes the items of section II of the asset "Stocks and costs" with the exception of "Deferred expenses", as well as the items "Long-term financial investments", "Settlements with the founders".

Analysis of the use of capital

Capital investment must be efficient. The efficiency of capital use is understood as the amount of profit attributable to one ruble of invested capital. Capital efficiency is a complex concept that includes the use of working capital, fixed assets, and intangible assets. Therefore, the analysis of the effectiveness of capital is carried out in its individual parts, then a summary analysis is made.

The efficiency of the use of working capital is characterized primarily by their turnover, which is understood as the duration of the passage of funds through the individual stages of production and circulation. The time during which working capital is in circulation, i.e. successively moving from one stage to another, is the period of turnover of working capital. The turnover of working capital is calculated by the duration of one turnover in days (turnover of working capital in days) or the number of turns for the reporting period (turnover ratio). The duration of one turnover in days is the ratio of the sum of the average balance of working capital to the sum of one-day revenue for the analyzed period:

where Z is the turnover of working capital, days;

t is the number of days of the analyzed period (90, 360);

T - proceeds from the sale of products for the analyzed period, rub.

The average balance of working capital is defined as the average of the chronological moment series, calculated on the basis of the aggregate value of the indicator at different points in time:

O \u003d (1 / 2o1 + o2 + ... + 1 / 2On) / (P-1),

where O1; O2; On - the balance of working capital on the first day of each month, rub.;

P is the number of months.

The turnover ratio characterizes the amount of proceeds from sales per one ruble of working capital. It is defined as the ratio of the amount of proceeds from the sale of products to the average balance of working capital according to the formula

O - the average balance of working capital, rub.

The turnover ratio of funds is their return on assets. Its growth indicates a more efficient use of working capital. The turnover ratio simultaneously shows the number of turnovers of working capital for the analyzed period and can be calculated by dividing the number of days of the analyzed period by the duration of one turnover in days (turnover in days):

where Ko - turnover ratio, turnover;

1 - number of days of the analyzed period (90, 360);

Z - turnover of working capital in days.

An important indicator of the efficiency of the use of working capital is also the utilization factor of funds in circulation. The utilization factor of funds in circulation characterizes the amount of working capital advanced per one ruble of proceeds from the sale of products. In other words, it represents the current capital intensity, i.e. working capital costs (in kopecks) to obtain 1 rub. sold products (works, services). The utilization rate of funds in circulation is the ratio of the average balance of working capital to the amount of proceeds from the sale of products:

K3 \u003d O / T * 100%,

where K3 is the load factor of funds in circulation, kop.;

O - the average balance of working capital, rub.;

T - proceeds from the sale of products for the analyzed period, rub.;

100 - transfer of rubles to kopecks.

The load factor of funds in circulation (Kd) is the reciprocal of the turnover ratio of funds (Kc). The lower the utilization factor of funds, the more efficiently working capital is used.

Analysis of the level of self-financing

Self-financing means financing from own sources - depreciation and profits. The term "self-financing" stands out from the generally accepted position of financing the production and trade process, which is primarily due to the increased role of depreciation and profit in providing economic entities with monetary capital from internal sources of accumulation. However, an economic entity cannot always fully provide itself with its own financial resources, therefore it widely uses borrowed and attracted funds as an element that complements self-financing. The principle of self-financing is implemented not only on the desire to accumulate own financial sources, but also on the rational organization of the production and trade process, the constant renewal of fixed assets, and on a flexible response to market needs. It is the combination of these methods in the economic mechanism that makes it possible to create favorable conditions for self-financing, i.e. allocating more of its own cash to finance its current and capital needs.

The level of self-financing is assessed using the following coefficients:

1. The financial stability ratio (KFU) is the ratio of own and other people's funds:

KFU \u003d M / (K + Z),

Where ;

K - borrowed funds, rub.;

3 - accounts payable and other borrowed funds, rub.

The higher the value of this coefficient, the more stable the financial position of an economic entity.

The sources of formation of own funds are the authorized capital, additional capital, deductions from profits (to the accumulation fund, to the consumption fund, to the reserve fund), targeted financing and receipts, rental obligations.

2: Self-financing ratio (Kc):

Ks \u003d (P + A) / (K + Z),

K - borrowed funds, rub.

Z - accounts payable and other borrowed funds, rub.

This coefficient shows the ratio of sources of financial resources, i.e. how many times own sources of financial resources exceed borrowed and borrowed funds.

Since the value of P + A represents own funds aimed at financing expanded reproduction, this coefficient shows how many times these own funds exceed other people's funds attracted for these purposes.

The self-financing ratio characterizes a certain margin of financial strength of an economic entity. The larger the value of this coefficient, the higher the level of self-financing.

At the same time, the self-financing ratio is an indicator of the involvement of foreign (borrowed, attracted) funds in the economic process. This allows the economic entity to respond to negative changes in the ratio of its own and foreign sources of financial resources. With a decrease in the self-financing ratio, an economic entity carries out the necessary reorientation of its production, trade, technical, financial, organizational, managerial and personnel policies.

3. Coefficient of sustainability of the self-financing process (SSC):

KUPS \u003d Ks / KFU \u003d (P + A) * (K + Z) / ((K + Z) * M) \u003d (P + A) / M,

where P is the profit directed to the accumulation fund, rub.;

A - depreciation deductions, rub.;

M - own funds, rub.

The coefficient of sustainability of the self-financing process shows the share of own funds allocated to finance expanded reproduction. The higher the value of this coefficient, the more stable the process of self-financing in an economic entity, the more effectively this method of market economy is used.

4. Profitability of the self-financing process (P):

P \u003d (A + P) / M * 100%,

where A - depreciation deductions, rub.;

PE - net profit, rub.;

M - own funds, rub.

The process of self-financing is nothing but the profitability of using own funds. The level of profitability of the self-financing process shows the value of the total net income received from one ruble of investing own financial resources, which can then be used for self-financing.

Source - Lithuanian A.M. Financial management: Lecture notes. Taganrog: Publishing House of TRTU, 1999. 76s.

The long-term development of any enterprise depends on the ability of management to identify emerging problems in a timely manner and competently neutralize them. To achieve this goal, financial analytics is used, the purpose of which is to identify all the problematic elements in the company's management tools.

What is the financial analysis of the enterprise

Financial analysis should be understood as the complex use of certain procedures and methods for an objective assessment of the state of the enterprise and its economic activity. The basis for the assessment is quantitative and qualitative accounting information. It is after its analysis that specific managerial decisions are made.

Financial analysis is focused on studying the economic, technical and organizational level of the enterprise, as well as the departments related to it. The goals of financial analysis include the assessment of the financial and industrial economic activity of the company, including the diagnosis of bankruptcy.

Financial Analysis Priorities

The financial and economic analysis of the state of the enterprise sets specific tasks, the fulfillment of which determines the accuracy of the analytics result. We are talking about the discovery of reserves and production opportunities that were not used, about assessing the quality, establishing the impact of specific activities on the overall results of management and identifying the factors that caused deviations from the standards. In the process of analysis, a forecast of the expected results of the enterprise's activities and the preparation of information necessary for making a management decision are also carried out.

It can be argued that the financial analysis of an enterprise plays the role of financial management both in the company itself and in the process of cooperation with partners, tax authorities, and the financial and credit system. At the same time, business activity, financial stability, profitability and profitability are taken into account. The analysis itself can also be defined as a tool for managing, planning, as well as monitoring the company's activities and its diagnostics.

At the same time, it should be noted that the analysis of specific aspects of the enterprise's activity is based on the analysis of the system of indicators, moreover, in a dynamic state. This is explained by the fact that the financial and production and economic activities of the company, as well as its divisions, have interrelated indicators. For this reason, changes in specific indicators can affect the final financial technical and economic indicators of the enterprise.

Financial and economic analysis of the enterprise: goals

Speaking about this form of analysis of the company's activities, it is worth noting that it involves a combination of deduction and induction methods. In other words, during the study of single indicators, the analyst should also take into account the general ones.

Another important principle is that when analyzing an enterprise, all types of business processes are studied taking into account their interdependence, interdependence and interconnection. As for the analysis of factors and causes, in this case, the analytics is based on the understanding of the following principle: each factor and cause must receive an objective assessment. Therefore, both causes and factors are initially studied, after which their classification into groups follows: secondary, main, insignificant, essential, little determining and determining.

The next step is to study the influence on economic processes of the determining, basic and significant factors. On the other hand, little-determining and insignificant factors are studied only if necessary and only after the completion of the main part of the analysis. It is worth considering the fact that financial analysis does not always involve the study of all factors, since this is relevant only in some cases.

At the same time, if we talk about the exact goals of the financial analysis of the enterprise, it makes sense to define the following components of the assessment process:

analysis of the ability to repay loans;
tracking the state of the enterprise at the time of assessment;
bankruptcy prevention;
assessment of the value of the company in case of its merger or sale;
tracking the dynamics of the financial condition;
analysis of the enterprise's ability to finance investment projects;
making a forecast of the financial activity of the enterprise.

It should be noted that in the process of studying the financial condition of an enterprise, the help of a financial analyst can be used by those economic entities that are focused on obtaining extremely accurate and objective information about the activities of the enterprise.

These entities can be divided into two categories:

External: creditors, auditors, government agencies, investors.
Internal: shareholders, audit and liquidation commission, management and founders.

Another purpose for which financial analysis can be carried out, but not at the initiative of the enterprise, is to assess the investment potential and creditworthiness of the company. Such analytics, as a rule, is of interest to banks, for which it is important to ensure the solvency and profitability of the enterprise. This is logical, since any potential investor is interested in obtaining information regarding the liquidity of the company and the degree of risk regarding the loss of the deposit.

Features of internal and external analysis

Internal financial accounting and analysis is necessary in order to meet the needs of the enterprise itself. It can be focused both on identifying the degree of liquidity of the company, and on a thorough assessment of its results within the last reporting period. Such valuation methods are relevant when a financial analyst or firm's management intends to determine how realistic and relevant the allocation of funds for the expansion of production that was planned, and what effect additional costs can have on it.

With regard to external financial analysis, it is carried out by analysts who are not related to the enterprise. They also do not have access to internal information of the company.

If an internal analysis is carried out, then there will be no problems with attracting information of any category, including one that is not available. In the case of external analysis, some limitations of assessment methods are initially taken into account due to the lack of information in full.

Types of financial analysis

Analytics, with the help of which the state of the enterprise is assessed, can be divided into several key types according to the content of the management process:

retrospective, or current analysis;
perspective (preliminary, predictive);
operational financial and economic analysis;
analysis that takes into account the results of a particular period of time.

Each of the types is used depending on the key task.

Methods of financial analysis

The current methods of financial analytics include the following areas:

Vertical analysis. This is one of the types of assessment of the financial statements of an enterprise, in which the share of balance sheet items and various types of liabilities and assets is analyzed. With this technique, the distribution of resources is shown in shares.

Horizontal analysis. We are talking about the financial analytics of the company, in which a dynamic assessment of the balance sheet items is made. Both the nature and the direction of the trend are assessed.
Ratio analysis. With this type, financial, economic and production indicators are calculated on the basis of financial statements. Such financial and accounting analysis also examines reports on losses, profits and other regulatory documentation. The calculation of the coefficients makes it possible to evaluate the effectiveness and efficiency of various resources, activities and capital of the company, including.
Trend analysis. With such an assessment, each reporting position is compared with specific previous periods, as a result, the trend of the enterprise's movement is determined. With the help of the established trend, the possible values of future indicators are formed. In other words, a prospective analysis is carried out.
Factor analysis. In this case, an assessment of the impact of specific factors on the final results of the company's activities is used. Stochastic and deterministic methods are used for research.
Comparative analysis. We are talking about on-farm analytics of the summary indicators of shops, divisions, subsidiaries, etc. An inter-farm financial analysis of the organization is also carried out in relation to the indicators of competing enterprises.

Ratio analysis as the main tool of financial analytics

As a key method of financial analysis, you can define the coefficient. This is explained by the fact that a quantitative assessment of the state of the company and the adoption of various managerial decisions aimed at changing specific indicators are made on the basis of financial and economic ratios. In this case, one can observe a direct relationship between those resources of the company that were taken into account and the efficiency of their operation, expressed through the values of financial and economic ratios and data in the balance sheet items.

This method of financial analysis involves the evaluation of four relevant groups of economic indicators:

Profitability (profitability) ratios. Such data serves to reflect the profitability of the company's capital when generating income through the use of assets of various types.
Coefficients of financial reliability (stability). In this case, the level of own and borrowed capital of the company is demonstrated, and the capital structure of the company is also displayed.
Solvency (liquidity) ratios. Reflect the ability and ability of the organization to timely short-term and long-term debt obligations.

Turnover ratios (business activity). Using this information, you can determine the number of company assets for a particular reporting period and the intensity of their turnover, among other things.

The method of financial analysis, in which the coefficients of the enterprise are taken as the basis for calculations, is considered important because it makes it possible to identify crisis phenomena in the company in a timely manner and take relevant measures to stabilize the situation.

This type of analysis is part of the strategic management of the organization.

Examples of financial analytics

In order to understand the essence of assessing the state of the organization, it is necessary to study the example of financial analysis. For example, for the entire period of the period under study, the margin was stable, but there was a certain decrease.

During the study period, an increase in the turnover rate of goods by 35 days was revealed. This indicates the presence of illiquid stocks and an increase in the number of stocks of goods. At the same time, the optimal value of turnover for hardware stores is 80-90 days.

As for receivables, the company does not have any - all retail trade of the company is carried out on the terms of payment upon delivery. Accounts receivable turns over within 4-7 days, which can be defined as a positive indicator.

At the same time, the operating cycle also increased by 35 days within the period covered by the analysis. It is obvious that it (the cycle) corresponds to an increase in the duration of the turnover. Due to the increase in the term of trade turnover, the term of the financial cycle has also increased.

The financial analysis of the enterprise defines an example of this kind as a fairly stable activity, in which overstocking of the warehouse is possible. To optimize the process as much as possible, it is necessary to revise the procurement policy in order to reduce the turnover period.

How to analyze bank activity

The financial analysis of the bank is focused on ensuring quality management through the development of key parameters of its activities. We are talking about such indicators as the profitability of operations, capital and payment turnover, the structure of assets and liabilities, the efficiency of the bank's divisions, the risks of the portfolio of financial resources and intra-bank pricing.

In order for the study of the state of the bank to be successful, certain conditions must be met: the information used for the analysis must be reliable, accurate, timely and complete. If the provided data does not correspond to reality, the applied methods of financial analysis will not be able to lead to objective conclusions. This means that the impact of some problems will be underestimated, which may worsen the situation.

The reliability of information is assessed in the process of inspection checks and during documentary supervision.

Methods for researching the state of the bank

Various aspects of the bank's activities are evaluated through the use of scientific and methodological tools. It is with their help that you can develop the optimal solution to specific problems of a managerial nature.

There are popular methods of bank financial analysis:

Dynamic balance sheet equation. This technique involves accounting for profits and losses. Through such management, a factorial financial assessment of the state of the bank and the fact how profitable its activities are is carried out.
Modified balance sheet management (liabilities are equal to assets). In this case, financial analysis involves a quick assessment of the effectiveness of the bank's liability management.
Basic balance sheet management (assets are equal to the sum of equity and paid liabilities). The key principle of this valuation technique is the effective disposal and ownership of all bank assets.
The capital balance equation (the bank's capital is equal to assets minus paid liabilities). This type of equation is relevant when it is necessary to obtain a final assessment of how effective the management of existing capital was as part of the increment of own capital. This methodology is also used to identify and exploit higher yield reserves.

Thus, we can conclude that the financial analysis of the enterprise, an example of which was given above, is a necessary measure for determining the state and profitability of the company. Without such analytics, the efficiency of the enterprise can be significantly reduced, and at the same time, rehabilitation measures may not be relevant if the assessment is not timely.

Analysis of the financial condition of the enterprise: