Theoretical aspects of a comprehensive assessment of the financial condition of enterprises. Comprehensive analysis of the financial condition of the enterprise

Introduction

1. Comprehensive analysis of the financial condition of the enterprise

2. Operational analysis of the enterprise’s activities

3. Enterprise budget

Conclusion

List of used literature

Introduction

The transition to a market economy requires the enterprise to increase production efficiency, competitiveness of products and services based on the introduction of scientific and technological progress, effective forms management and production management, activation of entrepreneurship, etc. An important role in the implementation of this task is given to the analysis of the economic activities of enterprises. With its help, strategies and tactics for the development of the enterprise are developed, plans and management decisions are substantiated, their implementation is monitored, reserves for increasing production efficiency are identified, and the results of the activities of the enterprise, its divisions and employees are assessed.

Analysis is understood as a way of understanding objects and phenomena of the environment, based on dividing the whole into its component parts and studying them in all the variety of connections and dependencies.

The content of the analysis follows from the functions. One of these functions is the study of the nature of the operation of economic laws, the establishment of patterns and trends in economic phenomena and processes in the specific conditions of the enterprise. The next function of analysis is monitoring the implementation of plans and management decisions, and the economical use of resources. The central function of the analysis is to search for reserves for increasing production efficiency based on the study of advanced experience and achievements of science and practice. Also another function analysis-assessment the results of the enterprise’s activities in terms of fulfilling plans, the achieved level of economic development, and the use of existing opportunities. And finally, the development of measures for the use of identified reserves in the process of economic activity.

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

The financial analysis methodology includes three interrelated blocks:

1) analysis of the financial results of the enterprise;

2) analysis of the financial condition of the enterprise;

3) analysis of the effectiveness of the financial and economic activities of the enterprise.

The main goal of financial analysis is to obtain a small number of key (the 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, and in settlements with debtors and creditors. At the same time, the analyst and manager (manager) may be interested in both the current financial state of the enterprise and its projection for the near or longer term, i.e. expected parameters of financial condition.

But it is not only time boundaries that determine the alternativeness of the goals of financial analysis. They also depend on the tasks of the subjects of financial analysis, i.e. specific users of financial information.

The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of carrying out this analysis. The main factor ultimately is the volume and quality of the source information.

The main functions of financial analysis are:

Objective assessment of the financial condition of the object of analysis;

Identification of factors and causes of the achieved state;

Preparation and justification of management decisions in the field of finance;

Identification and mobilization of reserves for improving the financial condition and increasing the efficiency of all economic activities.

There are 4 main groups financial indicators:

Financial stability,

Liquidity,

Profitability,

Business activity (turnover).

1. Comprehensive analysis of the financial condition of the enterprise

Financial condition refers to 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 feasibility of their placement and efficiency of use, financial relationships with other legal and individuals, solvency and financial stability.

The financial condition can be stable, unstable and crisis. The ability of an enterprise to make timely payments and finance its activities on an expanded basis indicates its good financial condition.

The financial condition of an enterprise (FSP) depends on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, this has a positive effect on the financial position of the enterprise. And vice versa, as a result of underfulfillment of 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 positive influence to fulfill production plans and provide production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the systematic receipt and expenditure of monetary resources, implementing accounting discipline, achieving rational proportions of equity and borrowed capital and its most efficient use.

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

The analysis begins with a review of the main performance indicators of the enterprise. This review should consider the following questions:

· property status of the enterprise at the beginning and end of the reporting period;

· operating conditions of the enterprise in the reporting period;

· results achieved by the enterprise in the reporting period;

· prospects for the financial and economic activities of the enterprise.

The property position of the enterprise at the beginning and end of the reporting period is characterized by balance sheet data. By comparing the dynamics of the results of the asset sections of the balance sheet, you can find out trends in changes in property status. Information about changes in the organizational structure of management, the opening of new types of activity of the enterprise, features of working with counterparties, etc. is usually contained in the explanatory note to the annual financial statements. The effectiveness and prospects of the enterprise's activities can be generally assessed based on the analysis of profit dynamics, 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 operation of an enterprise may be directly present in the balance sheet in an explicit or veiled form. This case may occur when the reporting contains items indicating the extremely unsatisfactory performance of the enterprise in the reporting period and the resulting poor financial position (for example, the item “Losses”). The balance sheets of quite profitable enterprises may also contain hidden, veiled items that indicate certain shortcomings in their work.

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

Table 1

Analysis of the composition and structure of property

table 2

Analysis of the composition and structure of sources of property formation

Specific weight = asset (liability) indicator / balance sheet currency * 100%;

Change in absolute indicator = indicator per year. – indicator for the current year; Change in specific gravity = sp. weight per kg – beat weight per ng; Change in % compared to last year = abs. change/indicator ng; Change in % to balance currency = abs. change/abs. change in balance currency *100%

Table 3

Analysis of the financial stability of the enterprise

Availability of own working capital = Capital and reserves (p. 490) – non-current assets (p. 190); availability of own current and long-term borrowed funds = (capital and reserves (p. 490) + long-term liabilities (p. 590)) – non-current assets (p. 190); availability of general sources = (capital and reserves (p. 490) + long-term liabilities (p. 590) + loans and credits (p. 610)) – non-current assets (p. 190); supply of reserves from own sources = own sources – reserves; provision of inventories with own and long-term borrowed funds = own and long-term borrowed funds – inventories; provision of reserves with common sources = common sources – reserves. Type of financial stability when own sources< запасов, считается кризисной.

Table 4

Analysis of the financial stability of an enterprise based on relative indicators

Autonomy ratio = equity (p. 490) / total liabilities (p. 700); Gearing ratio = debt capital (line 590+690) / total financing; Equity multiplier = total assets (p. 300) / equity. capital; Interest coverage ratio = net profit / interest payable (none); Long-term financial independence ratio = permanent capital (equity + long-term liabilities (p. 590)) / total assets; Financing ratio = equity/debt; Long-term investment coverage ratio = non-current assets / permanent capital; Capitalization ratio = debt capital / equity. capital; Provision ratio of own working capital = own. current assets (p. 490-190) / current assets (p. 290); Maneuverability coefficient = own. working capital / own capital.

Table 5

Analysis of liquidity of the enterprise balance sheet

Table 6

Indicators for assessing solvency and liquidity

To current solvency = P1+P2 / average monthly revenue; Interim solvency and liquidity ratio = A1+A2 / P1+P2; Absolute liquidity ratio = A1 / P1+P2; Net working capital = current assets – current liabilities; Cash to Net Working Capital Ratio = Cash/Net Working Capital; Inventories to short-term debt ratio = inventories / loans and borrowings; Accounts receivable to accounts payable ratio = accounts receivable (within 12 months) / accounts payable; Current ratio = A1+A2+A3 / P1+P2; Securing liabilities with assets = total assets / P1+P2+P3.

Table 7

Calculation of turnover indicators of current assets

Asset turnover = revenue / total assets; Inventory turnover = cost of sales / inventories; Capital productivity = revenue / fixed assets (p. 120); Accounts receivable turnover = revenue / accounts receivable; Receivables turnover time = period length (360 days) / receivables turnover; Average age of inventory = period length / inventory turnover; Operating cycle = accounts receivable turnover time + average age stocks; Finished goods turnover = revenue / finished goods (p. 214); Working capital turnover = revenue / working capital; Equity turnover = revenue / equity; Total debt turnover = cost / total debt(pp. 590+690); Turnover of attracted financial capital = cost / accounts payable (p. 620).

Table 8 Analysis of the composition and structure of profit

Table 9 Analysis of profitability indicators

Total profitability = balance sheet profit (line 050 f. No. 2) / production assets * 100; Profitability of core activities (costs) = net profit / cost of goods sold * 100; Return on turnover (sales) = gross profit / revenue * 100; Return on assets (property) = retained earnings / assets * 100; Return on production assets = gross profit / production assets * 100; Economic profitability = net profit / investment capital (authorized capital) * 100; Financial profitability = net profit / equity * 100; Return on debt capital = net profit / debt capital * 100

Table 10 Analysis of business activity of an enterprise

Advanced capital = reserve capital + retained earnings; Return on equity = net profit / equity * 100; Return on working capital = net profit / working capital * 100; Capital turnover = revenue / equity; Duration of capital turnover (days) = duration of period / capital turnover; Duration of working capital turnover (days) = duration of period / working capital turnover

Table 11

Calculation of financial ratios to assess the probability of bankruptcy

Data in tables 4, 6 and 10.

There is no share of overdue accounts payable in liabilities; Share of accounts receivable in total assets = accounts receivable / total assets; Net profit margin = net profit / sales revenue

Table 12

Bankruptcy probability analysis (Altman model)

Net working capital to total assets ratio = net working capital / total assets; Return on Assets = Gross Profit / Total Assets; Debt to equity ratio = equity / debt capital; integral indicator of the level of threat of bankruptcy = 0.012x1 + 0.014x2 + +0.033x3 + 0.006x4 + 0.999x5.

The degree of probability of bankruptcy with an integral indicator from 1.81 to 2.7 is considered high, from 2.7 to 2.99 is considered low.

2. Operational analysis of the enterprise’s activities

Operational analysis of an enterprise The key elements of the operational analysis of any enterprise are: operating leverage; profitability threshold; reserve of financial strength of the enterprise. Operational analysis is an integral part of management accounting. Unlike external financial analysis, the results of operational (internal) analysis may constitute a trade secret of the enterprise. The effect of operational (production, economic) leverage is manifested in the fact that any change in sales revenue always generates a stronger change in profit. In practical calculations, to determine the strength of the operating leverage, the ratio of the so-called gross margin (the result of sales after reimbursement of variable costs) to profit is used. Gross margin is the difference between sales revenue and variable costs. It is desirable that the margin be sufficient not only to cover fixed costs, but also to generate profit. The effect of operating leverage and the degree of flexibility of the enterprise all together generate business risk.

financial solvency liquidity current asset

Table 13 Operational analysis

Marginal profit = revenue – variable costs; Contribution Margin Ratio = Contribution Margin/Revenue; Operating leverage= marginal profit / /profit; profitability threshold = fixed costs / marginal profit ratio; Margin of financial strength = revenue – profitability threshold

EGF = (1 - Sn) * (KR - Sk) * ZK/SK, where:

EFR - effect of financial leverage, Сн - income tax rate, KR - return on assets ratio, %, Ск - interest rate for a loan, ЗК - borrowed capital, СК - equity capital

EGF = (1 - 0.2) * (21 - 12.5) * 2741/1054 = 17.68

The return on assets is higher than the interest rate for the loan, therefore the use of borrowed capital is advisable.

3. Enterprise budget

Let's draw up a budget of income and expenses for the planned year, taking into account the available data given in Table 14.

Table 14

Note:

1. Production volume corresponds to sales volume (finished product balances remain unchanged)

2. Materials are purchased in the amount necessary for the production of products that will be sold (the balance of materials remains unchanged)

Table 15 Budget of income and expenses

According to the budgeting of income and expenses, the need for additional financing is: 8935888.5 – 6014318 = 2921570.5 thousand rubles. – we observe an excess of income over expenses, therefore there is no need for financing.

Table 16 Cash flow budget

The need for additional financing will be: 6969993.03 – 5536411.96 = 1433581.07 thousand rubles.

Conclusion

In real conditions of economic activity, it is advisable for any enterprise to periodically conduct a comprehensive financial analysis of its condition in order to identify shortcomings in the operation of the enterprise, the reasons for their occurrence and the development of specific recommendations for improving activities.

Analysis of the financial condition of an enterprise has a multi-purpose focus and, in particular, can be carried out in the following main areas: constant monitoring of the actual performance of the enterprise on the basis of financial statements; identifying the solvency of the enterprise and the satisfactory structure of the balance sheet of the enterprise in order to prevent its bankruptcy; assessment of the financial condition of the enterprise from the standpoint of the appropriate investment of financial resources in the development of production.

In practice, several groups of indicators are used to determine the financial condition of an enterprise: assessment of indicators over time, absolute values ​​of financial assets in sections of the balance sheet and their shares in general structure balance sheet, the actual indicators of the enterprise in comparison with their standard and industry average values. In addition, special coefficients can be applied, calculated on the basis of the ratios of individual items of the reporting balance sheet. With their help, you can quickly assess the financial position of an enterprise. However, they are not universal and are mainly used as indicative indicators.

In the course of a general assessment of the financial condition of an enterprise, a detailed analysis of its activities is carried out, based on a study of the dynamics of balance sheet assets, the structure of liabilities, the sources of the formation of working capital and their structure, fixed assets and other non-current assets. In the course of this work, it is advisable to use a comparative analytical balance sheet, which summarizes and systematizes the calculations performed in order to obtain general assessments of the financial position of the enterprise and its dynamics in the reporting period.

Analysis of the financial condition allows you to obtain an assessment of the reliability of the enterprise in terms of its solvency, to determine the type and magnitude of its financial stability. In a more in-depth study of the financial stability of an enterprise, indicators of balance sheet liquidity and solvency of the enterprise are calculated, on the basis of which its ability to timely and fully pay off its obligations is established. The level of balance sheet liquidity is determined by the degree of security of the enterprise's obligations with its own and general assets, the period of conversion of which into cash corresponds to the maturity date of the obligations.

To assess the liquidity of the balance sheet, as a rule, indicators are used that can be used to determine the ability of an enterprise to pay its short-term obligations during the year: the current liquidity ratio, which characterizes the degree of total coverage of the amount of current liabilities by all current assets of the enterprise, the absolute liquidity ratio, which reflects the ability of the enterprise instantly pay off creditors without relying on accounts receivable or the ratio of your own working capital. The financial stability of an enterprise is also characterized by the ratio of borrowed and own working capital.

Thus, analysis of the financial condition of an enterprise and, as an element, analysis of financial stability is important tool identifying its place in the market environment.

List of used literature

1. Boronenkova S.A. Management analysis: Textbook. Manual.-M.: Finance and Statistics, 2003.

2. Bocharov V.V. The financial analysis. St. Petersburg: Peter, 2005.

3. Grachev A.V. Financial stability of an enterprise: analysis, assessment and management: Educational and practical manual. – M.: Publishing House “Delo and Service”, 2004.

4. Endovitskaya A.V. Comprehensive assessment of the financial stability of an agricultural organization. // Economic analysis: theory and practice. 2006. No. 22 (79).

5. Efimova O.V. Analysis of financial results and efficiency of use of property. //Accounting. 2008. No. 1.

6. Kovalev V.V., Volkova O.N. Analysis of the economic activity of the enterprise. – M.: LLC “TK Velby”, 2006.

7. Krylov E.I., Vlasova V.M., Zhuravkova I.V. Analysis of financial results, profitability and production costs: Textbook. allowance. –M.: Finance and Statistics, 2005.

8. Kovalev V.V. Financial analysis: Capital management. Choice of investments. Analysis of reporting. - M.: F. and St., 2000.

9. Kovalev V.V., Volkova O.N. Analysis of the economic activity of the enterprise. Textbook. - M.: TK Velby LLC, 2002.

10. Lyubushin N.P., Babicheva N.E. Analysis of methods for assessing the financial condition of an organization. //Economic analysis: theory and practice. 2008. No. 22 (79).

11. Lobushin N.P., Comprehensive economic analysis of economic activity.: Textbook - 2nd ed. -M.: UNITY-DANA, 2005.

12. Savitskaya G.V. Analysis of the economic activity of an enterprise: Textbook. - 3rd ed., revised. And additional – M.: INFRA-M, 2006.

13. Economic analysis: Textbook for universities / Ed. L.T. Gilyarovskaya. – 3rd ed., add. – M.: UNITY-DANA, 2005.

14. Economic analysis: Fundamentals of theory. Comprehensive analysis of the economic activities of an organization: Textbook / Ed. N.V. Voitolovsky, A.P. Kalinina, I.I. Mazurova. – M.: Higher Education, 2005.

Financial condition is the most important characteristic economic activity enterprises in the external environment. It determines the competitiveness of the enterprise, its potential in business cooperation, assesses the extent to which the economic interests of the enterprise itself and its partners in financial and other relations are guaranteed. Therefore, we can assume that the main task of analyzing the financial condition is to show the state of the enterprise for internal and external consumers, the number of which increases significantly with the development of market relations.

The purpose of analyzing the financial condition of an enterprise is to assess its current condition, as well as to determine in which areas work needs to be done to improve this condition. At the same time, the desired state of financial resources is such that the enterprise, freely maneuvering funds, is able, through their effective use, to ensure the uninterrupted process of production and sales of products, as well as the costs of its expansion and renewal.

The main purpose of this course work- substantiate the principles and methods of analyzing the financial and economic condition of domestic enterprises.

Accordingly, the following goals are solved in the course work: tasks:

· study of the economic essence of such a concept as “financial condition of an enterprise”;

· determining the role of financial condition in the efficiency of the enterprise’s economic activities;

· comprehensive assessment of the financial condition of an existing domestic enterprise;

Subject of research models act as diagnostics of the financial and economic state of domestic enterprises.

Object of study is a diagnosis of the financial and economic condition of OJSC ChMP.

The course work consists of three chapters in which the problem posed is consistently explored.

1. CHARACTERISTICS OF COMPREHENSIVE ANALYSIS OF FINANCIAL AND ECONOMIC ACTIVITIES IN MODERN CONDITIONS

1.1.Preliminary assessment of the financial condition of the enterprise

Financial analysis is used both by the company itself and by external market participants when carrying out various transactions or to provide information about the financial condition of the company to third parties. As a rule, financial analysis is carried out when:

· restructuring. In the process of separating structural divisions into separate business units, it is necessary to evaluate such indicators of their current activities as the size of receivables and payables, profitability, inventory turnover, labor productivity, etc. The favorable financial condition of a structural unit can serve as an additional factor in favor of leaving her as part of the company;

· assessing the value of a business, including for its sale/purchase. A reasonable assessment of the financial condition allows you to set a fair transaction price and can serve as a tool for changing the transaction amount;

· obtaining a loan/attracting an investor. The results of a financial analysis of a company’s activities are the main indicator for a bank or investor when making a decision to issue a loan;

· entering the stock exchange (with bonds or shares). According to the requirements of Russian and Western exchanges, a company is obliged to calculate a certain set of ratios reflecting its financial condition and publish these ratios in reports on its activities. For example, according to Russian legislation, a company’s securities prospectus must indicate the degree of coverage of debt service payments, the level of overdue debt, net asset turnover, the share of income tax in profit before tax, etc.

Financial analysis can be carried out to compare one's own company with another (benchmarking). To conduct one-time assessments of the financial condition of an enterprise, it makes sense to involve professional appraisers and auditors. This will increase the reliability of the assessment in the eyes of third parties.

In operational activities, financial analysis is used to:

· assessment of the company's financial condition;

· establishing restrictions in the formation of plans and budgets. For example, you can limit the company's liquidity (indicate that it must not be below a certain level), inventory turnover, debt ratio, cost of raising capital, etc. Many companies have the practice of setting limits for branches and subsidiaries based on indicators such as profitability, production costs, return on investment, etc.;

· assessment of predicted and achieved performance results.

The analysis begins with a review of the main performance indicators of the enterprise. This review should consider the following questions:

• the property position of the enterprise at the beginning and end of the reporting period;
• operating conditions of the enterprise in the reporting period;
  results achieved by the enterprise in the reporting period;
• prospects for the financial and economic activities of the enterprise.

The property position of the enterprise at the beginning and end of the reporting period is characterized by balance sheet data. By comparing the dynamics of the results of the asset sections of the balance sheet, you can find out trends in changes in property status. Information about changes in the organizational structure of management, the opening of new types of activity of the enterprise, features of working with counterparties, etc. is usually contained in the explanatory note to the annual financial statements. The effectiveness and prospects of the enterprise's activities can be generally assessed based on the analysis of profit dynamics, 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 operation of an enterprise may be directly present in the balance sheet in an explicit or veiled form. This case may occur when the statements contain items indicating the extremely unsatisfactory performance of the enterprise in the reporting period and the resulting poor financial position (for example, the item “Losses”). The balance sheets of quite profitable enterprises may also contain hidden, veiled items that indicate certain shortcomings in their work.

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

1.2.Methodology for analyzing financial and economic condition

The methodology for analyzing financial and economic activities is a set of analytical procedures used to determine the financial and economic condition of an enterprise.

Experts in the field of analysis lead different techniques determining the financial and economic condition of the enterprise.2 However, the basic principles and sequence of the procedural side of the analysis are almost the same with minor differences. The detailing of the procedural side of the methodology for analyzing financial and economic activities depends on the goals set and various factors of information, methodological, personnel and technical support. Thus, there is no generally accepted methodology for analyzing the financial and economic activities of an enterprise, but in all significant aspects the procedural aspects are similar.

Information support is important for analysis. This is due to the fact that, in accordance with the Law of the Russian Federation “On Informatization and Information Protection,” an enterprise may not provide information containing a trade secret. But usually, for many decisions to be made by potential partners of a company, it is sufficient to conduct an express analysis of financial and economic activities. Even to conduct a detailed analysis of financial and economic activities, information constituting a trade secret is often not required. To conduct a general detailed analysis of the financial and economic activities of an enterprise, information is required according to the established forms of financial statements, namely:

· form No. 1 Balance sheet

· Form No. 2 Profit and Loss Statement

· form No. 3 Statement of capital flows

· Form No. 4 Cash Flow Statement

· form No. 5 Appendix to the balance sheet

This information is in accordance with the Decree of the Government of the Russian Federation of December 5, 1991. No. 35 “On the list of information that cannot constitute a trade secret” cannot constitute a trade secret.

The analysis of the financial and economic activities of the enterprise is carried out in three stages.

At the first stage, a decision is made on the feasibility of analyzing financial statements and their readiness for reading is checked. The problem of the feasibility of the analysis can be solved by reading the auditor's report. There are two main types of audit reports: standard and non-standard. A standard audit report is a unified, concise document containing a positive assessment of the audit firm on the reliability of the information presented in the report and its compliance with applicable regulations. In this case, analysis is advisable and possible, since reporting in all significant aspects objectively reflects the financial and economic activities of the enterprise.

A non-standard audit report is drawn up in cases where the audit firm cannot draw up a standard audit report for a number of reasons, namely: some errors in the company’s financial statements, various uncertainties of a financial and organizational nature, etc. In this case, the value of the analytical conclusions drawn up from these reports is reduced.

Checking the readiness of reporting for reading is of a technical nature and is associated with a visual check of the presence of the necessary reporting forms, details and signatures on them, as well as a simple counting check of subtotals and balance sheet currency.

The purpose of the second stage is to familiarize yourself with the explanatory note to the balance sheet; this is necessary in order to assess the operating conditions of the enterprise in a given reporting period and take into account the analysis of factors whose impact led to changes in the property and financial position of the organization and which are reflected in the explanatory note.

The third stage is the main one in the analysis of economic activity. The purpose of this stage is to assess the results of economic activity and the financial condition of the business entity. It should be noted that the level of detail in the analysis of financial and economic activities may vary depending on the goals set.

At the beginning of the analysis, it is advisable to characterize the financial and economic activities of the enterprise, indicate its industry affiliation and other distinctive features.

Then an analysis of the state of “sick reporting items” is carried out, namely, loss items (form No. 1 - lines 310, 320, 390, form No. 2 lines - 110, 140, 170), long-term and short-term bank loans and loans outstanding in lines ( form No. 5, lines 111, 121, 131, 141, 151) overdue receivables and payables (form No. 5, lines 211, 221, 231, 241) as well as overdue bills (form No. 5, line 265).

If there are amounts for these items, it is necessary to study the reasons for their occurrence. Sometimes information in this case can only be provided by further analysis and final conclusions can be drawn later.

1.3.Indicators of financial condition

Analysis of the financial and economic condition of an enterprise consists in general of the following main components:

· analysis of property status;

· liquidity analysis;

· analysis of financial stability;

· analysis of business activity;

· profitability analysis.

These components are closely interconnected and their separation is necessary only for a clearer separation and understanding of the conclusions on the analytical procedures for analyzing the financial and economic activities of the organization.

Analysis of property status consists of the following components:

· Analysis of assets and liabilities of the balance sheet

· Analysis of property status indicators

When analyzing the assets and liabilities of the balance sheet, the dynamics of their condition in the analyzed period is traced. It should be borne in mind that in conditions of inflation, the value of analysis based on absolute indicators is significantly reduced, and to neutralize this factor, analysis should also be carried out using relative indicators of the balance sheet structure.

When assessing the dynamics of property, the state of all property in the composition of immobilized assets (Section I of the balance sheet) and mobile assets (Section II of the balance sheet - inventories, accounts receivable, other current assets) is traced at the beginning and end of the analyzed period, as well as the structure of their increase (decrease).

Analysis of property status indicators consists of calculating and analyzing the following main indicators:

· the amount of economic assets at the disposal of the enterprise;

· this indicator gives a generalized valuation of assets listed on the balance sheet of the enterprise;

· share of the active part of fixed assets.

The active part of fixed assets should be understood as machines, machines, equipment, vehicles, etc. The growth of this indicator is considered a positive trend.

Depreciation rate - it characterizes the degree of depreciation of fixed assets as a percentage of the original cost. Its high value is an unfavorable factor. The addition of this indicator to 1 is the suitability coefficient.

Renewal coefficient - shows what part of the fixed assets available at the end of the period consists of new fixed assets.

Retirement ratio - shows what part of fixed assets left economic circulation during the reporting period due to wear and tear.

The analysis of enterprise liquidity is based on the calculation of the following indicators:

· Maneuverability of operating capital. Characterizes that part of own working capital that 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 considered as a positive trend. An acceptable indicative value of the indicator is established by the enterprise independently and depends, for example, on how high the enterprise’s daily need for free cash resources is.

Current ratio. Gives a general assessment of the liquidity of assets, showing how many rubles of the enterprise's current assets account for one ruble of current liabilities. The logic for calculating this indicator is that the company repays short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities in value, the enterprise can be considered as successfully operating (according to at least in theory). The size of the excess is set by the current liquidity ratio. The value of the indicator can vary by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend. In Western accounting and analytical practice, the critical lower value of the indicator is given - 2; however, this is only an indicative value, indicating the order of the indicator, but not its exact normative value.

Quick ratio. In terms of semantic purpose, the indicator is similar to the current liquidity ratio; however, it is calculated based on a narrower range of current assets, when the least liquid part of them, industrial inventories, is excluded from the calculation. The logic of such an exception consists not only in the significantly lower liquidity of inventories, but, what is much more important, in the fact that the funds that can be gained in the event of a forced sale of inventories can be significantly lower than the costs of their acquisition. In particular, in conditions market economy A typical situation is when, upon liquidation of an enterprise, 40% or less of the book value of inventories is gained. Western literature provides an approximate lower value of the indicator - 1, but this estimate is also conditional. In addition, when analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that determined its change.

Absolute liquidity (solvency) ratio. It is the most stringent criterion for the liquidity of an enterprise; shows what portion of short-term debt obligations can be repaid immediately if necessary. The recommended lower limit of the indicator given in Western literature is 0.2. In domestic practice, the actual average values ​​of the liquidity ratios considered are, as a rule, significantly lower than the values ​​mentioned in Western literature. Since the development of industry standards for these coefficients is a matter of the future, in practice it is desirable to analyze the dynamics of these indicators, supplementing it with a comparative analysis of available data on enterprises that have a similar orientation of their economic activities.

The share of own working capital in covering inventories. Characterizes that part of the cost of inventories that is covered by its own working capital. Traditionally, it is of great importance in analyzing the financial condition of trading 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 inventory coverage and the amount of inventory. 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 related to the overall financial structure of the enterprise, the degree of its dependence on creditors and investors.

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

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

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

Long-term investment structure coefficient. The logic for calculating this indicator is based on the assumption that long-term loans and borrowings are used to finance fixed assets and other capital investments. The ratio shows what part of fixed assets and other non-current assets is financed by external investors, i.e. (in a sense) belongs to them, and not to the owners of the enterprise.

Ratio of own and borrowed funds. Like some of the above indicators, this ratio provides the most general assessment of the financial stability of an enterprise. It has a fairly simple interpretation: its value, equal to 0.25, means that for every ruble of own funds invested in the assets of the enterprise, there are 25 kopecks. borrowed money. The growth of the indicator in dynamics indicates an increased dependence of the enterprise on external investors and creditors, i.e., a slight decrease in financial stability, and vice versa.

Indicators of the business activity group characterize the results and efficiency of current core production activities.

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

Resource productivity (turnover ratio of advanced capital). 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 financing, capital productivity, profitability of production, etc.

When analyzing profitability, the following main indicators are used, used in countries with market economies to characterize the profitability of investments in a particular type of activity: return on advanced capital and return on equity. The economic interpretation of these indicators is obvious - how many rubles of profit account for one ruble of advanced (own) capital. When calculating, you can use either the total profit of the reporting period or net profit.

2. COMPREHENSIVE ASSESSMENT OF FINANCIAL AND ECONOMIC ACTIVITIES OF AN ENTERPRISE USING THE EXAMPLE OF JSC "CHMK"

2.1. Balance sheet structure assessment

The basis for analyzing the assets and liabilities of ChMK OJSC is the analytical aggregated balance sheet, which is presented in Appendix A and B. Having analyzed the balance sheet of the enterprise, we identified both positive and negative trends.

Positive:

· there is an increase in the enterprise's property over the period 2000-2001. - by 26808 thousand rubles. or 30.87%;

· the increase in property occurred mainly due to an increase in current assets by 29,630 thousand rubles. or 219.08% and reserves of 23,976 thousand rubles. or 603.17% (period 2000-2001);

· for the period 2001-2002. there is a decrease in debt on short-term loans by 5841 thousand rubles. or 37.39%

Negative:

· for the period 2001-2002. there was a decrease in the company's property by 2878 thousand rubles. or 2.53%;

· the decrease was mainly due to a reduction in current assets by RUB 5,466 thousand. or 12.67% and reserves of 16,414 thousand rubles. or 58.72%;

· for the period 2000-2001. there is a reduction in the enterprise's equity capital by 3049 thousand rubles. or 3.91%;

· the company's funds decreased by 124 thousand rubles. or 16.71% (2000-2001) and 45 thousand rubles. or 7.28% (2001-2002);

· non-current assets decreased by 2822 thousand rubles. or 3.85% (2000-2001);

· there is an increase in the company's accounts payable by 14,842 thousand rubles. or 179.75% (2000-2001) and 2736 thousand rubles. or 11.84% in 2001-2002.

· the company's receivables also tend to increase (period 2000-2001 - by 5487 thousand rubles or 88.26%; period 2001-2002 - by 11827 thousand rubles or 101.05%).

2.2.Assessment of solvency and liquidity

One of the most important characteristics of the financial condition of an enterprise is financial stability. Financial strength characterizes the degree of financial independence of an enterprise regarding the ownership of its property and its use.

According to the availability of inventory financing options, four types of financial strength are possible.

1. Absolute durability- to ensure reserves (3) there are enough own working capital; the solvency of the enterprise is guaranteed: WITH.

2. Normal durability- to ensure reserves, in addition to own working capital, long-term loans and advances are attracted; Solvency is guaranteed: WITH.

3. Unstable financial condition- to ensure reserves, in addition to own working capital and long-term loans and advances, short-term loans and advances are attracted; solvency is impaired, but it is possible to restore it: WITH.

4. Crisis financial condition- to ensure reserves there are not enough “normal sources” of their formation; the company is threatened with bankruptcy: C > SOS + KD + KK.

Table 2.1 shows the calculation of financial strength for OJSC ChMK.

Table 2.5

Analysis of financial strength for OJSC ChMK

As the data in Table 2.1 shows, the enterprise in 2000 had absolute financial strength, in 2001 - a crisis financial state, in 2002 - absolute financial strength. The company was able to move from a financial crisis to absolute stability by greatly reducing its own reserves. Such strong jumps in the financial strength of an enterprise have a very negative impact on the financial condition of the enterprise.

Table 2.2 shows the calculation of financial stability indicators.

Table 2.2

Analysis of financial stability indicators of OJSC ChMK

Let's take a closer look at the indicators given in Table 2.2. Yes, indicator flexibility of working capital characterizes part of the reserves in own working capital. The direction of positive changes in this indicator is decrease. In this case, first there is a strong decrease, therefore the indicator increases to 5.56. Such “jumps” have a very negative impact on the work of the enterprise.

Financial Independence Ratio characterizes the ability of an enterprise to fulfill external obligations at the expense of its own assets. Its standard value must be greater than or equal to 0.5. As we see, during the analyzed period this indicator is greater than the normative value, which indicates the financial independence of the enterprise.
Financial Stability Ratio shows the possibility of securing the debt with one’s own funds. The excess of own funds over loans indicates the financial stability of the enterprise. The standard value of the indicator must be greater than one. In our case, its value indicates the high financial stability of the enterprise.

Financial Strength Ratio characterizes the part of stable sources of financing in their total volume. It should be in the range of 0.85-0.90. For the analyzed enterprise, its value is 0.90 only in 2000, then this indicator decreases to the level of 0.66 (2001) and 0.68 (2002).

Next to the absolute indicators of financial stability, it is advisable to calculate a set of relative analytical indicators - liquidity ratios (see Table 2.3).

Table 2.3

Liquidity analysis of OJSC ChMK

Coverage ratio characterizes the sufficiency of working capital to repay debts throughout the year. If the ratio is less than 1, the company has an illiquid balance sheet. As we can see, the value of this indicator for OJSC ChMK indicates the liquidity of the enterprise in the analyzed period.

Accounts payable to receivable ratio shows the company’s ability to pay creditors at the expense of debtors throughout the year. The recommended value of this indicator is 1. For OJSC ChMK, this indicator approaches the standard only in 2002.

Absolute liquidity ratio characterizes the enterprise’s readiness to immediately liquidate short-term debt. The standard value of this indicator is in the range of 0.20 - 0.35. In the period under consideration, the value of this coefficient does not correspond to the normative ones.

2.3. Analysis of the financial results of the enterprise

Table 2.4 shows an analysis of the financial results of OJSC ChMK.

Table 2.4

Analysis of financial results of OJSC ChMK

As evidenced by the data in Table 2.4, the net profit of the enterprise in the analyzed period increased by 21,413 thousand rubles. or 26.37%, which is a positive trend. If we analyze what caused the increase in net profit, the situation here is not clear, so we can observe a decrease in the volume of product sales by 54,228 thousand rubles. or 11.09%. But at the same time, there is a decrease in the cost of products sold by 67,270 thousand rubles. or 21.79%, and taking into account administrative costs and sales costs, the reduction in cost amounted to 20.13%. We cannot say what measures led to such a reduction in costs; it is possible that the reduction in costs led to a deterioration in product quality, as there was a decrease in sales volumes. In any case, the management of the enterprise needs to take measures to increase sales volume, since its decrease, even against the background of an increase in net profit, in the future can lead to a significant deterioration in the financial condition of the enterprise, even to bankruptcy.

2.4. Business activity analysis

Let's consider the indicators of business activity of the enterprise in the analyzed period (see Table 2.5).

Table 2.5

Indicators of business activity of OJSC ChMK

Let's consider each of the given indicators separately:

1. return on assets - shows how much revenue falls on a unit of fixed assets. As we can see, this indicator tends to decrease, which is a somewhat negative trend and indicates a decrease in the efficiency of using the enterprise’s fixed assets;

2. period of one turnover of working capital- defines middle period from spending funds to produce products to receiving funds for sold products. A decrease in this indicator indicates a more efficient use of working capital at the enterprise. In our case, there is first an increase (2001) and then a significant decrease in this indicator;

3. period of one inventory turnover- This is the period during which inventories are transformed into cash. There is a very strong increase in this indicator (from 10 days in 2000 to 42 days in 2002), which is a negative trend;

4. indicators of the repayment period of receivables and payables indicate that the enterprise spends much more time using essentially free credit from its own creditors than it spends on lending (free of charge) to other enterprises.

2.5. Bankruptcy probability assessment

The issue of predicting insolvency has always been addressed by both academic circles and business consultants. Therefore, we can talk about both theoretical and practical approaches to the problem.

The first experiments to assess the state of the company began in the nineteenth century. The creditworthiness index was apparently the first indicator that was used for such purposes. Merchants were especially active in this area, being particularly interested in determining potential solvency their clients. In 1826, the first digest of companies that refused to pay their obligations was published, which was later known as Stubbs Gazette.

However, it was only in the twentieth century that financial and economic indicators have become widely used, not only for predicting bankruptcy as such, but also for predicting various financial difficulties.

Thus, up to the present moment there are more than a hundred different works devoted to predicting the bankruptcy of an enterprise. However, almost all the work known to the author was carried out in the West (mainly in the USA). Accordingly, the question of their applicability in Russian conditions still remains open.

It should also be noted that accumulated experience shows that bankruptcy forecasting models, as a rule, consist of different coefficients with some weights. Moreover, which coefficients are included in the model is determined either on the basis of statistical or expert estimates.

To assess the possibility of bankruptcy of OJSC ChMK, we use the Taffler indicator (Z T).

Z T = 0.03x1 + 0.13x2 + 0.18x3 + 0.16x4

If Z T > 0.3 - the enterprise has good long-term prospects, with Z T

Let's calculate the Taffler indicator for OJSC ChMK:

ZТ = 0.03* 10.495+ 0.13* 0.3403 + 0.18* 0.0883+ 0.16* 3.9243 = 1.0029

According to the calculated ratio, the company has good long-term prospects.

2.6. Break-even estimate

All costs of an enterprise can be divided into two parts: variable costs (production), which change in proportion to the volume of production, and fixed costs (periodic), which, as a rule, remain stable when the volume of output changes. Revenue from product sales minus cost in the amount of production variable costs constitutes marginal income, which is an important parameter in assessing management decisions.

Variable (production) costs include direct material costs, wages of production personnel with corresponding deductions, as well as costs for the maintenance and operation of equipment and a number of other general production expenses.

Fixed expenses include administrative and management expenses, depreciation, sales and sales expenses, market research expenses, and other general administrative, commercial and general business expenses.

One of the main practical results of using the classification of enterprise expenses based on the principle of dependence on production volume is the ability to predict profits based on the expected state of expenses, as well as determining for each specific situation the volume of sales that ensures break-even activity. The amount of sales revenue at which the enterprise will be able to cover its expenses without making a profit is usually called the critical volume of production (“dead point”).

We will conduct an assessment of break-even for OJSC ChMK. For calculations we take the following data:

· Revenue = 434,678 rub.

· Fixed expenses= 55104 rub.

· Variable expenses = RUB 14,313.

· Sales volume = 10,000 pcs.

· Selling price = 43.47 rubles.

Let's calculate the break-even point using the analytical method:

Break-even point in natural units = Fixed costs / (Price - Variable costs per unit of production)

Let's calculate variable costs per unit of production:

14313 / 10000 = 1.43 (rub.)

Break-even point in natural units = 55104 / (43.47 - 1.43) = 1311 (pcs.)

Let's determine the break-even point graphically (Fig. 2.1)

Rice. 2.1 Break-even point of OJSC ChMK

If we draw a perpendicular from the point of intersection of the revenue and total costs graphs, we get that the break-even level under these conditions is 1311 units. From the calculations we can conclude that the enterprise under study is profitable.

3. DEVELOPMENT OF RECOMMENDATIONS FOR STABILIZATION OF FINANCIAL AND ECONOMIC ACTIVITIES OF THE ENTERPRISE

Based on the results of the analysis, we can draw the following conclusions. The enterprise, although profitable, has a number of problems. Thus, there are problems with the financial stability of the enterprise, as evidenced by sharp jumps in financial stability indicators. The absolute liquidity indicator of the enterprise does not correspond to standard values, which indicates that the enterprise will not be able to quickly cover all its obligations. Although the overall liquidity of the company's balance sheet is normal in the long term.

The situation with the cost of production is not clear; in 2002 it decreased by more than 20%, but it is not clear why. Product sales volumes fell, although due to a reduction in costs, the company received more net profit in the reporting period.

Based on the identified imbalances in the financial and economic activities of the enterprise, we can recommend the following to the management of the enterprise. Firstly, the management of the enterprise needs to eliminate abrupt changes in the financial stability of the enterprise. Secondly, it is necessary to bring quick liquidity indicators to standard values; this can be done by increasing the funds in the company’s current account. Thirdly, it is necessary to clarify the situation with reducing production costs and reducing sales volumes. It is possible to give any recommendations in this regard only after receiving complete information.

CONCLUSION

As a conclusion, we summarize the main provisions of the course work:

· the development of market relations increases the responsibility and independence of enterprises and other market entities in preparing and making management decisions. The effectiveness of these decisions largely depends on the objectivity, timeliness and thoroughness of the assessment of the existing and expected financial and economic condition of the enterprise;

· the net profit of JSC ChMP in the analyzed period increased by 21,413 thousand rubles. or 26.37%, which is a positive trend. If we analyze what caused the increase in net profit, the situation here is not clear, so we can observe a decrease in the volume of product sales by 54,228 thousand rubles. or 11.09%. But at the same time, there is a decrease in the cost of products sold by 67,270 thousand rubles. or 21.79%, and taking into account administrative costs and sales costs, the reduction in cost amounted to 20.13%. We cannot say what measures led to such a reduction in cost; it is possible that the reduction in cost resulted in a deterioration in product quality, as there was a decrease in sales volume;

· the management of the enterprise needs to eliminate abrupt changes in the financial stability of the enterprise;

· it is necessary to bring quick liquidity indicators to standard values, this can be done by increasing the funds in the company’s current account.

LIST OF REFERENCES USED

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2. Bobyleva A.Z. Financial management: - M.: ROU Publishing House, 99-152p.

3. Bocharov V.V. Financial modeling. Tutorial- St. Petersburg: Peter, 2000.

4. Vakulenko T.G., Fomina L.F. Analysis of financial statements for decision making. M.: Publishing House"Gerda", 1999

5. Gramotenko T.A. Bankruptcy of enterprises: economic aspects. M.: Prior, 1998.

6. Grebnev L.S. Nureyev R.M. Economy. M.: Vita-Press, 2000, p. 432.

7. Dyagterenko V.G. Fundamentals of logistics and marketing. - Rostov-on-Don: Expert Bureau, M.: Gardarika, 1996. -120 p.

8. Dontsova L.V. Analysis of financial statements.-M.: DIS, 1999, p. 234.

9. Efimova O.V. Financial analysis. - M.: Publishing house "Accounting", 2002, p.528.

10. Zhuravlev V.V. Analysis of financial and economic activities of enterprises: CIEM SPbSTU. Cheboksary, 1999- 135 p.

11. Kovalev A.I. Analysis of the financial condition of the enterprise. - M.: Center for Economics and Marketing, 2000. - 480 p.

12. Kovalev V.V. The financial analysis. M.: Finance and Statistics, 2001. - 512 p.

14. Kozlova O.I. Assessment of the enterprise's creditworthiness. M.: JSC "ARGO", 1999 p. 274.

15. Lyubushin N.P. Analysis of the financial and economic activities of the enterprise. M.: UNITY, 1999. - 471 p.

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20. Pavlova L.N. Financial management. M.: Banks and exchanges, 1998. - 400 p.

Financial condition is the most important characteristic of the economic activity of an enterprise in the external environment. It determines the competitiveness of the enterprise, its potential in business cooperation, assesses the extent to which the economic interests of the enterprise itself and its partners in financial and other relations are guaranteed. Therefore, we can assume that the main task of analyzing the financial condition is to show the state of the enterprise for internal and external consumers, the number of which increases significantly with the development of market relations.

The purpose of analyzing the financial condition of an enterprise is to assess its current condition, as well as to determine in which areas work needs to be done to improve this condition. At the same time, the desired state of financial resources is such that the enterprise, freely maneuvering funds, is able, through their effective use, to ensure the uninterrupted process of production and sales of products, as well as the costs of its expansion and renewal.

The main goal of this course work is to substantiate the principles and methods of analyzing the financial and economic state of domestic enterprises.

Accordingly, the following goals are solved in the course work: tasks :

· study of the economic essence of such a concept as “financial condition of an enterprise”;

· determining the role of financial condition in the efficiency of the enterprise’s economic activities;

· comprehensive assessment of the financial condition of an existing domestic enterprise;

Subject of research models act as diagnostics of the financial and economic state of domestic enterprises.

Object of study is a diagnosis of the financial and economic condition of OJSC ChMP.

The course work consists of three chapters in which the problem posed is consistently explored.

1. CHARACTERISTICS OF COMPREHENSIVE ANALYSIS OF FINANCIAL AND ECONOMIC ACTIVITIES IN MODERN CONDITIONS

1.1.Preliminary assessment of the financial condition of the enterprise

Financial analysis is used both by the company itself and by external market participants when carrying out various transactions or to provide information about the financial condition of the company to third parties. As a rule, financial analysis is carried out when:

· restructuring. In the process of separating structural divisions into separate business units, it is necessary to evaluate such indicators of their current activities as the size of receivables and payables, profitability, inventory turnover, labor productivity, etc. The favorable financial condition of a structural unit can serve as an additional factor in favor of leaving her as part of the company;

· assessing the value of a business, including for its sale/purchase. A reasonable assessment of the financial condition allows you to set a fair transaction price and can serve as a tool for changing the transaction amount;

· obtaining a loan/attracting an investor. The results of a financial analysis of a company’s activities are the main indicator for a bank or investor when making a decision to issue a loan;

· entering the stock exchange (with bonds or shares). According to the requirements of Russian and Western exchanges, a company is obliged to calculate a certain set of ratios reflecting its financial condition and publish these ratios in reports on its activities. For example, according to Russian legislation, a company’s securities prospectus must indicate the degree of coverage of debt service payments, the level of overdue debt, net asset turnover, the share of income tax in profit before tax, etc.

Financial analysis can be carried out to compare one's own company with another (benchmarking). To conduct one-time assessments of the financial condition of an enterprise, it makes sense to involve professional appraisers and auditors. This will increase the reliability of the assessment in the eyes of third parties.

In operational activities, financial analysis is used to:

· assessment of the company's financial condition;

· establishing restrictions in the formation of plans and budgets. For example, you can limit the company's liquidity (indicate that it must not be below a certain level), inventory turnover, debt ratio, cost of raising capital, etc. Many companies have the practice of setting limits for branches and subsidiaries based on indicators such as profitability, production costs, return on investment, etc.;

· assessment of predicted and achieved performance results.

The analysis begins with a review of the main performance indicators of the enterprise. This review should consider the following questions:

· property status of the enterprise at the beginning and end of the reporting period;

· operating conditions of the enterprise in the reporting period;
results achieved by the enterprise in the reporting period;

· prospects for the financial and economic activities of the enterprise.

The property position of the enterprise at the beginning and end of the reporting period is characterized by balance sheet data. By comparing the dynamics of the results of the asset sections of the balance sheet, you can find out trends in changes in property status. Information about changes in the organizational structure of management, the opening of new types of activity of the enterprise, features of working with counterparties, etc. is usually contained in the explanatory note to the annual financial statements. The effectiveness and prospects of the enterprise's activities can be generally assessed based on the analysis of profit dynamics, 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 operation of an enterprise may be directly present in the balance sheet in an explicit or veiled form. This case may occur when the statements contain items indicating the extremely unsatisfactory performance of the enterprise in the reporting period and the resulting poor financial position (for example, the item “Losses”). The balance sheets of quite profitable enterprises may also contain hidden, veiled items that indicate certain shortcomings in their work.

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

1.2.Methodology for analyzing financial and economic condition

The methodology for analyzing financial and economic activities is a set of analytical procedures used to determine the financial and economic condition of an enterprise.

Experts in the field of analysis cite different methods for determining the financial and economic condition of an enterprise.2 However, the basic principles and sequence of the procedural side of the analysis are almost the same with minor differences. The detailing of the procedural side of the methodology for analyzing financial and economic activities depends on the goals set and various factors of information, methodological, personnel and technical support. Thus, there is no generally accepted methodology for analyzing the financial and economic activities of an enterprise, but in all significant aspects the procedural aspects are similar.

Information support is important for analysis. This is due to the fact that, in accordance with the Law of the Russian Federation “On Informatization and Information Protection,” an enterprise may not provide information containing a trade secret. But usually, for many decisions to be made by potential partners of a company, it is sufficient to conduct an express analysis of financial and economic activities. Even to conduct a detailed analysis of financial and economic activities, information constituting a trade secret is often not required. To conduct a general detailed analysis of the financial and economic activities of an enterprise, information is required according to the established forms of financial statements, namely:

· form No. 1 Balance sheet

· Form No. 2 Profit and Loss Statement

· form No. 3 Statement of capital flows

· Form No. 4 Cash Flow Statement

· form No. 5 Appendix to the balance sheet

This information is in accordance with the Decree of the Government of the Russian Federation of December 5, 1991. No. 35 “On the list of information that cannot constitute a trade secret” cannot constitute a trade secret.

System of indicators. Conclusions and proposals based on the results of the analysis.

A comprehensive assessment of the financial condition of an enterprise is based on a system of indicators characterizing the structure of the sources of capital formation and its placement, the balance between the assets of the enterprise and the sources of their formation, the efficiency and intensity of the use of capital, the liquidity and quality of assets, its investment attractiveness, etc. For this purpose, the dynamics of each indicator are studied and comparisons are made with average and standard values ​​for the industry (Table 25.6).

The data presented in the table shows that during the reporting year the production and financial situation at the enterprise has noticeably improved. The growth rate of production volume and product sales, as well as the growth rate of balance sheet and net profit, increased significantly. Judging by the capital turnover ratios, the company has significantly increased its business activity, which made it possible, despite a slight decrease in profitability of sales, to increase the return on total, operating and equity capital. As a result, the level of dividend return on capital has increased and the stock price has increased, which helps to improve the image and investment attractiveness of the enterprise.

Celebrating positive sides performance of the enterprise, at the same time, it should be noted that some negative trends have emerged in the capital structure. This concerns, first of all, an increase in the share of borrowed capital and, accordingly, the degree of financial risk. The value of the last coefficient exceeds the standard level for this industry.

The share of working capital in the structure of the enterprise's assets has increased significantly, which in itself is not bad, since as a result, the turnover of total capital accelerates. However, this increase is mainly caused by an increase in the cost of inventories due to inflation and an increase in accounts receivable.

Table 25.6

Generalization of the results of the analysis of the financial condition of the enterprise

When characterizing the condition and quality of assets, it should be noted that the degree of depreciation of fixed assets is lower than the industry average, due to the fact that this enterprise is relatively “young”, has been operating for only three years and renews fixed capital more intensively. The duration of the turnover of fixed and working capital is significantly less than at other enterprises in this industry, but higher than the standard level and mainly due to the long period of collection of receivables.

When considering indicators characterizing the quality of profit, it should be noted that its growth rate and the share of profit from core activities are higher than the industry average. The level of profitability of products and turnover has decreased slightly due to inflation and the pricing policy of the enterprise in the market for goods and services. Due to a slight reduction in prices, the company was able to increase turnover in product sales, accelerate capital turnover and ultimately increase the profitability of capital. The increase in return on equity capital also contributed to positive effect financial leverage, which is the merit of the enterprise administration.

As a positive aspect, one should also note the increase in profit per enterprise employee and per ruble salary. At the same time, there is a slight decrease in profit per ruble of fixed production assets and per ruble of material costs due to the faster growth rate of their value due to inflation. For the same reason, there is a decrease in capital productivity and an increase in the overall material intensity of products, although their level is better than the industry average.

During the reporting year, the amount of own working capital increased by 30%, but its share in the formation of current assets decreased from 44.6 to 42.9%, and the share of borrowed capital accordingly increased by 2 points. The percentage of provision of tangible current assets with equity capital also decreased from 84.7% to 81.1%, which indicates an increase in the financial dependence of the enterprise on external creditors. For this reason, by the end of the reporting period, the level of liquidity ratios decreased and approached the lower limit of the standard value. However, the loss of solvency ratio is greater than one, which means that over the next three months the level of the current liquidity ratio will not be lower than the norm.

Looking at the risk indicators, we can note some of their growth. In particular, the share of carry-over balances of finished products increased. It is much higher than the standard value, but less than the industry average. Due to the incomplete use of production capacity, the share of fixed costs in total costs increased, which led to a decrease in the break-even zone of the enterprise and a slight increase in the production leverage ratio. However, the safety zone is still quite large. Revenue can fall by 42% and only then the company will not make a profit.

All of the above allows us to conclude that the financial condition of the analyzed enterprise is quite stable and stable. Consequently, shareholders, business partners and investors of the enterprise can not doubt its solvency. The company knows how to earn a profit, provide fairly high dividends to its shareholders, repay loans on time and pay interest on them. The risk of losing resources in the current situation is very small.

At the same time, as the results of the analysis show, the company still has sufficient reserves to significantly improve its financial condition. To do this, he should more fully use the production capacity of the enterprise, reducing downtime of machines, equipment, labor, material and financial resources; respond more quickly to market conditions, changing the product range and pricing policy in accordance with its requirements; accelerate capital turnover by reducing excess inventories and the collection period for receivables. All this, as can be seen from table. 17.16, will allow you to increase profit by 3900 thousand rubles, replenish your own working capital and achieve a more optimal financial structure of the balance sheet.