Introduction
One of the most important conditions for successful financial management of an enterprise is the analysis of its financial condition. The financial condition of an organization, an enterprise is of great interest to the state, to owners (current and potential), investors, creditors, shareholders, partners of the enterprise, employees of the organization and other persons.
Under the financial condition refers to the ability of the enterprise to finance its activities. It is characterized by the provision of financial resources necessary for the normal functioning of the enterprise, their appropriate placement and effective use, financial relationships with other legal entities and individuals, solvency and financial stability.
In a market economy, the financial condition of an enterprise essentially reflects the final results of its activities. It is the final results of the enterprise that are of interest to the owners (shareholders) of the enterprise, its business partners, and tax authorities. This predetermines the importance of analyzing the financial condition of an economic entity and increases the role of such an analysis in the economic process.
In international practice, the financial condition of an enterprise is understood as a set of indicators and financial reporting forms that reflect the financial stability, solvency, business activity and profitability of an enterprise.
The purpose of financial analysis is to evaluate the past performance and current position of the enterprise, as well as to assess the future potential.
The main tasks of the FSP analysis are:
assessment of the dynamics of the composition and structure of assets, their condition and movement,
assessment of the dynamics of the composition and structure of sources of equity and debt capital, their state and movement,
analysis of absolute and relative indicators of the financial stability of the enterprise and assessment of changes in its level;
analysis of the solvency of the enterprise and the liquidity of the assets of its balance sheet,
analysis of the company's creditworthiness and assessment of potential bankruptcy.
The object of study in this course work is an open joint stock company "Selekta". Sources of information for the analysis of the financial condition of the enterprise were: balance sheet, income statement.
Analysis of the financial condition of OJSC "Selecta" was carried out in the following main areas:
Assessment of property status and capital structure.
Evaluation of the efficiency of capital use and business activity.
Assessment of financial stability.
Analysis of the liquidity of the balance sheet, solvency of the enterprise.
Comprehensive assessment of the financial condition of the enterprise.
1. Theoretical foundations of the financial condition of the enterprise
1.1 Methods for assessing the financial condition of an enterprise
One of the most important conditions for successful financial management of an enterprise is the analysis of its financial condition. The financial condition of an enterprise is understood as a set of indicators and financial statements that reflect one or another side of its financial condition. It is characterized by the provision of financial resources necessary for the normal functioning of the enterprise, their appropriate placement and effective use, financial relationships with other legal entities and individuals, solvency and financial stability.
The financial condition of the enterprise can be stable, unstable and crisis. The ability of the enterprise to make payments in a timely manner, to finance its activities on an extended basis indicates its good (stable) financial condition.
The main goal of analyzing the financial condition of an enterprise is to timely identify and eliminate shortcomings in financial activity and find reserves for improving the financial condition of an enterprise and its solvency.
Analysis of financial statements involves the use of specific techniques or methods. These include horizontal, vertical, trend, factor analysis and coefficient calculation.
Horizontal Analysis involves the study of the absolute indicators of the organization's reporting items for a certain period, the calculation of the rate of their change and assessment.
Under conditions of inflation, the value of horizontal analysis is somewhat reduced, since the calculations made with its help do not reflect the objective change in indicators associated with inflationary processes.
Horizontal analysis is complemented by a vertical analysis of the study of financial indicators.
Under vertical analysis refers to the presentation of reporting data in the form of relative indicators through the share of each item in the total result of reporting and an assessment of their changes in dynamics.
Vertical analysis data make it possible to evaluate structural changes in the composition of assets, liabilities, other reporting indicators, the dynamics of the share of the main elements of the organization's income, product profitability ratios, etc.
trend analysis ( analysis of development trends) is a kind of horizontal analysis focused on the future. Trend analysis involves the study of indicators for the maximum possible period of time, while each reporting position is compared with the values of the analyzed indicators for a number of previous periods and the trend is determined.
For factor analysis the studied indicator is expressed through the factors that form it, the calculation and assessment of the influence of these factors on the change in the indicator are carried out. Factor analysis can be direct, i.e. the indicator is studied and decomposed into its constituent parts, and in reverse (synthesis) - individual elements (components) are combined into a common studied (effective) indicator.
Comparative (spatial) analysis - this is a comparison and evaluation of the performance of an enterprise with the performance of competing organizations, with average industry and average economic data, with standards, etc.
Ratio Analysis ( relative indicators) involves the calculation and evaluation of the ratios of various types of funds and sources, indicators of the efficiency of the use of enterprise resources, types of profitability. The analysis of relative indicators allows to evaluate the relationship of indicators and is used in the study of financial stability, solvency of the enterprise, liquidity of its balance sheet.
The simultaneous use of all techniques (methods) makes it possible to most objectively assess the financial position of the enterprise, its reliability as a business partner, and the development prospects.
1.2 Coefficients characterizing the financial condition of the enterprise
The stability of the financial condition of the enterprise is characterized by a system of indicators - financial ratios. The analysis of financial ratios consists in comparing their values with standard values and in studying their dynamics over several years.
The financial condition can be stable, unstable (pre-crisis) and crisis. The ability of an enterprise to make payments on time, finance its activities, withstand unforeseen shocks and maintain its solvency in adverse circumstances indicates its sound financial condition, and vice versa. Therefore, one of the indicators characterizing the financial position of an enterprise is its solvency, i.e. the ability to pay in cash in a timely manner their payment obligations. Solvency assessment is carried out on the basis of the calculation of relative liquidity indicators (current liquidity ratio, intermediate coverage ratio and absolute liquidity ratio). Absolute liquidity ratio - the ratio of the value of absolutely and the most liquid assets to the value of short-term liabilities.
Ka. l. = (1)
Absolute liquidity ratio shows what part of short-term liabilities can be repaid at the expense of available cash. Its optimal level is 0.2-0.25.
Interim coverage ratio - the ratio of cash, short-term financial investments and short-term receivables, payments on which are expected within 12 months after the reporting date, to the amount of short-term financial liabilities.
Kp. n. = (2)
This ratio shows the predicted payment possibilities in the conditions of timely settlements with debtors. A ratio of 0.7 to 1 usually satisfies.
Current liquidity ratio (total coverage) - shows whether the company has enough funds to pay off short-term liabilities within a certain time.
In some cases, it is required to calculate the urgent (quick) liquidity ratio. It is calculated as of today as the ratio of the available amount of cash (balances on accounts 50 and 51) to the amount of the obligation that has arisen.
To ensure financial stability, an enterprise must have a flexible capital structure, be able to organize its movement in such a way as to ensure a constant excess of income over expenses in order to maintain solvency and create conditions for self-production.
Financial stability is analyzed based on the calculation of absolute and relative indicators according to Form No. 1 and Form No. 5.
With the help of absolute indicators, the type of financial stability is determined. In the course of the production process, inventories are constantly replenished. For this, both own working capital and borrowed sources are used. The sufficiency of sources for the formation of circulating assets can characterize various conditions of financial stability. There are the following types of financial stability:
absolute financial stability, in which material working capital is formed at the expense of own working capital.
MZ≤ SK-VA ( 4)
normal financial stability, in which inventories are formed at the expense of net mobile assets (own working capital and long-term loans and borrowings).
MZ≤ SK - VA + DKZ (5)
unstable financial condition - inventories are formed at the expense of own working capital, long-term and short-term credits and loans.
MZ≤ SK - VA + DKZ + KKZ (6)
In this situation, the solvency condition is violated, but the possibility of restoring the balance by replenishing own working capital remains.
crisis financial condition, in which material reserves exceed the value of the sources of their formation.
MZ > SK - VA + DKZ + KKZ (7)
In this case, the company is considered insolvent, because it does not meet the solvency condition - cash, short-term financial investments and receivables do not cover accounts payable.
Relative indicators are also used to analyze financial stability. They characterize the degree of dependence of the enterprise on external investors and creditors.
1. Coefficient of autonomy (financial independence) - is calculated as the ratio of own sources to the balance sheet total and shows what part of the organization's property is formed at its own expense:
2. The ratio of borrowed and own funds - is calculated as the ratio of the amount of liabilities to equity:
3. (solvency) - is calculated as the ratio of equity to the total amount of liabilities:
4. The ratio of mobile and immobilized means - is calculated as the ratio of the cost of mobile means to the cost of immobilized:
5. Flexibility coefficient - is calculated by dividing own working capital by the total amount of own capital:
6. The coefficient of security of current assets with own sources of formation - is calculated as the ratio of own working capital to the total amount of working capital:
7. - is calculated as the ratio of the sum of the values (taken from the balance sheet) of fixed assets, capital investments, intangible assets, stocks to the balance sheet total:
8. Current debt ratio - is calculated as the ratio of short-term liabilities to the balance sheet total:
9. Constant capital ratio - is calculated as the ratio of the amount of equity capital and long-term borrowed capital to the balance sheet total:
These coefficients are directly dependent on the change in financial stability, i.e. the growth of each of them (except for the ratio of borrowed and own funds) confirms the strengthening of financial stability. But the simultaneous growth of all indicators is impossible, since some of them can only increase at the expense of a decrease in others.
For a general assessment of changes in the financial stability of an enterprise, it is necessary to compare the calculated values of indicators with the standard ones.
1.3 Analysis of balance sheet liquidity
The need to analyze the liquidity of the balance sheet arises in the face of increased financial constraints and the need to assess the creditworthiness of the enterprise. The liquidity of the balance sheet is defined as the degree of coverage of the obligations of the enterprise by its assets, the period of transformation of which into cash corresponds to the maturity of the obligations.
The liquidity of assets is the reciprocal of the liquidity of the balance sheet by the time the assets are converted into cash. The less time it takes for this type of asset to acquire a monetary form, the greater its liquidity. 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 maturity.
Depending on the degree of liquidity, the assets of the enterprise are divided into the following groups:
A 1 - the most liquid assets - the company's cash and;
A 2 - quickly realizable assets - accounts receivable and other assets;
A 3 - slow-moving assets - reserves (without other reserves and costs and expenses of future periods), as well as long-term financial investments (reduced by the amount of investments in the authorized capital of other enterprises);
And 4 - hard-to-sell assets - the result of the first section of the balance sheet asset, with the exception of the items of this balance sheet included in the previous group.
Liabilities of the balance are grouped according to the degree of urgency of their payment:
P 1 - the most urgent liabilities - accounts payable, other liabilities, as well as loans not repaid on time;
P 2 - short-term liabilities - short-term loans and borrowings;
P 3 - long-term liabilities - long-term loans and borrowings;
P 4 - permanent liabilities - the result of the fourth section of the balance sheet liability.
If the enterprise has losses (the result of the third section of the balance sheet asset), then in order to maintain the balance, own sources are reduced by the amount of losses, and the balance sheet is adjusted accordingly.
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 to be absolutely liquid if the following ratios take place:
A 1 ≥ P 1 , A 2 ≥ P 2 , A 3 ≥ P 3 , A 4 ≤ P 4 .
The fulfillment of the first three inequalities necessarily entails the fulfillment of the fourth inequality, so it is practically essential to compare the results of the first three groups by asset and liability. The fourth inequality is of a "balancing" nature and at the same time has a deep economic meaning: its fulfillment indicates that the minimum condition for financial stability is met - that the enterprise has its own working capital.
In the case when one or more inequalities have a sign opposite to that fixed in the optimal variant, the liquidity of the balance to a greater or lesser extent differs from the absolute one. At the same time, the lack of funds in one group of assets is compensated by their excess in another group, although compensation takes place only in terms of value, since in a real payment situation, less liquid assets cannot replace more liquid ones.
Comparison of the most liquid funds (A 1) and fast-moving assets (A 2) with the most urgent liabilities (P 1) and short-term liabilities (P 2) allows us to assess current liquidity. Comparison of slow-moving assets with long-term and medium-term liabilities reflects prospective liquidity. Current liquidity testifies to the solvency (or insolvency) of the enterprise for the nearest period of time to the considered moment.
Prospective liquidity is a forecast of solvency based on a comparison of future receipts and payments.
2. Analysis of the financial condition of OJSC Selecta
The analysis of a financial enterprise is performed on the basis of the balance sheet, form No. 2 and appendices to the balance sheet, form No. 3, form No. 5.
The analysis of the financial condition is carried out in sequence according to the individual task. The analysis begins with a review of financial statement items in order to identify critical items and negative points. These include: the presence of an uncovered loss, the absence of profit from the main activity, the absence of reserve capital, the presence of debts on taxes and fees, the decrease in the value of net assets.
Next, you need to get a general idea of the changes and the structure of the most important indicators of the enterprise. To do this, an analytical balance sheet and an analytical profit and loss statement are drawn up, and on their basis, a horizontal and vertical analysis of the balance sheet and income statement is performed.
Horizontal analysis consists in comparing each reporting position with the previous period, calculating relative and absolute increments. When conducting a vertical analysis, the share of individual items of the asset and liability of the balance sheet or as a result of a section of the balance sheet is calculated.
Analysis of the financial condition of the enterprise should be performed in the following main areas:
1) assessment of property status and capital structure;
2) assessment of the efficiency of capital use and business activity;
3) assessment of financial stability;
4) analysis of the liquidity of the balance sheet, solvency of the enterprise;
5) a comprehensive assessment of the financial condition of the enterprise.
From the balance sheet of the enterprise given in the individual task, we group the data and obtain an analytical balance sheet.
Table 1. Indicators of the analysis of the analytical balance
Indicators Designation Beginning of the year The end of the year Change over period Amount, thousand rubles Specific gravity,% Amount, thousand rubles Specific gravity,% Growth rate% In the structure,% in balance change,% Assets Fixed assets Stocks and VAT on acquired values Accounts receivable and other current assets Cash and short-term financial investments Passive Capital and reserves Long-term liabilities Short-term credits and loans Accounts payable Balance In the course of the horizontal analysis of the balance sheet, it was revealed that non-current assets increased by 1969 thousand rubles in the balance sheet asset. Inventories and increased by 951 thousand rubles, cash and short-term financial investments - by 201 thousand rubles. Accounts receivable decreased by 234 thousand rubles. In the liabilities side of the balance sheet, capital and reserves increased by 1171 thousand rubles, short-term loans and borrowings - by 471 thousand rubles, accounts payable - by 1245 thousand rubles. The growth rate of non-current assets increased by 21.67%, accounts receivable and other current assets decreased by 32.87% The growth rate of short-term credits and loans increased by 33.03%. Similarly, we group the indicators for the income statement. Table 2. - Indicators of the analysis of the analytical report on profit and loss
Indicators Prior year Reporting year Changes over the period ma, thousand rubles ma, thousand rubles Rate of increase Revenues from sales Expenses for ordinary activities Profit from sales Other results Profit before tax income tax Net profit Sales proceeds in the reporting year increased by 906 thousand rubles compared to the previous year. But at the same time, expenses for ordinary activities also increased by 909 thousand rubles. This may indicate that the demand for the company's products could grow, the quality improved and, accordingly, the number of product consumers increased. The growth rate of the company's net profit amounted to 6.81%. The share of expenses for ordinary activities increased by 1.26%, while the share of profit from sales decreased by 1.26%. The objectives of the analysis are to study the composition, structure and dynamics of the sources of formation of the capital of the enterprise, the property in which it is invested, to assess the changes that have taken place in terms of increasing the financial stability of the enterprise. Let's make tables to analyze the dynamics and structure of capital sources. Table 3. Analysis of the dynamics and structure of capital sources
Source of capital Availability of funds, thousand rubles Structure of funds,% at the beginning of the peri- at the end of the peri- at the beginning of the peri- at the end of the peri- Equity Borrowed capital Based on the results of the analysis, it can be concluded that equity increased by 1171 thousand rubles, borrowed capital increased by 1716 thousand rubles. According to the table, it can be seen that equity exceeds borrowed capital. An increase in equity capital has a positive effect on the enterprise. Since equity is the basis of the independence of the enterprise. Table 4. Analysis of the dynamics and structure of equity capital
Source of capital Availability of funds, thousand rubles Structure of funds,% at the beginning of the peri- at the end of the peri- at the beginning of the peri- at the end of the peri- Authorized capital Extra capital Reserve capital Undestributed profits The authorized capital of the enterprise has not changed, the reserve capital of the enterprise for the analyzed period increased by 194 thousand rubles, retained earnings increased by 982 thousand rubles. The total change in equity increased by 1176 thousand rubles. The largest share in the composition of equity capital is occupied by the authorized capital. However, during the reporting period, the share of the authorized capital of the enterprise decreased by 6.59%. Table 5. Analysis of the dynamics and structure of borrowed capital
A source Availability of funds, thousand rubles Structure of funds,% at the beginning of the peri- at the end of the peri- at the beginning of the peri- at the end of the peri- Long-term loans Short term loans Accounts payable Including: suppliers pay staff extrabudgetary funds on taxes and fees other creditors Other current liabilities Including overdue liabilities Borrowed capital increased by 1716 thousand rubles, perhaps with their help, production expanded and the return on equity increased. The amount of borrowed capital is small, that is, reasonable, which improves the financial condition of the enterprise, subject to their timely return. Short-term loans increased by 471 thousand rubles, accounts payable - by 1245 thousand rubles. The largest share in the structure of borrowed capital is short-term loans and accounts payable. Table 6. - Analysis of the dynamics and structure of assets
Enterprise funds At the beginning of the period At the end of the period Change Fixed assets current assets including in the field of: production appeals of which current assets: with minimal investment risk with low investment risk high-risk investment Including assets: non-monetary Monetary During the analyzed period, the assets of the enterprise increased by 2908 thousand rubles. Including non-current assets increased by 1969 thousand rubles, current assets - by 939 thousand rubles. In the sphere of production, assets increased by 643 thousand rubles, in the sphere of circulation their growth amounted to 296 thousand rubles. Although the share of assets occupied in the sphere of production and circulation decreased during the reporting period. Most of the assets are in circulation, which can bring a good profit to the company. The risk of financial and production activities is low, so most of the current assets with a low risk of investment. The company does not have assets with a high investment risk. Current assets with minimal investment risk increased by 201 thousand rubles. The assets of the enterprise with a low investment risk increased by 95 thousand rubles. Monetary assets remained virtually unchanged, while non-monetary assets increased by 2,885 thousand rubles. Table 7. Composition and dynamics of non-current assets
Enterprise funds At the beginning of the period At the end of the period Intangible assets fixed assets Construction in progress Long-term financial investments Non-current assets of the enterprise for the reporting period increased by 1970 thousand rubles. due to an increase in fixed assets by 279 thousand rubles, construction in progress - by 891 thousand rubles, long-term financial investments - by 800 thousand rubles. At the same time, the share of fixed assets in the structure of non-current assets decreased by 14.62%, while the share of construction in progress and the share of long-term financial investments increased by 7.38% and 7.24%, respectively. Table 8. - Analysis of the dynamics and composition of current assets
Type of funds Availability of funds, thousand rubles Structure of funds,% at the beginning of the period at the end of the period at the beginning of the period at the end of the period including: raw materials work in progress costs finished products goods shipped Future spending VAT on purchased assets Accounts receivable with a maturity of up to 1 year including secured by promissory notes Accounts receivable with a maturity of more than 1 year Short-term financial investments Cash Other current assets Current assets of the enterprise increased by 939 thousand rubles. mainly due to an increase in inventories by 937 thousand rubles. Cash increased by 201 thousand rubles, stocks of raw materials and materials - by 581 thousand rubles, goods shipped - by 294 thousand rubles. The share of reserves in the structure of current assets increased by 2.39%, the share of cash - by 2.20%. The receivables of the enterprise for the analyzed period decreased by 234 thousand rubles, its share in the structure decreased by 3.95%. Table 9. Analysis of return on capital indicators
indicators for the beginning of the year at the end of the year Return on total capital based on net profit Return on operating capital Return on equity Return on fixed capital Return on fixed capital based on net income As a result of the analysis, it was revealed that the return on total capital at the end of the year decreased from 0.19 to 0.09. The decrease in the coefficient is a consequence of the falling demand for products. The return on total capital in terms of net profit also decreased at the end of the year, which indicates an inefficient use of capital in general. To analyze business activity (intensity of use of the company's capital), it is necessary to calculate the indicators of turnover and duration of capital turnover. Table 10. - Analysis of business activity
indicators for the beginning of the year at the end of the year Total capital turnover Duration of total capital turnover Operating capital turnover Duration of operating capital turnover Equity turnover Duration of equity turnover Fixed capital turnover The duration of the turnover of constant capital Fixed capital turnover The duration of the turnover of fixed capital Working capital turnover Duration of working capital turnover Comparing the obtained values of indicators of profitability and turnover with the industry average indicators, we can conclude that the return on total capital at the beginning and at the end exceeds the normative indicator equal to 7%. This indicates the efficient use of total capital. The analysis of financial stability on the basis of absolute indicators consists in assessing the sufficiency of sources for the formation of the enterprise's production reserves. The type of financial stability of an enterprise is determined on the basis of the following criteria: Absolute financial stability stability - the amount of stocks is less than or equal to the amount of own working capital. Normal financial stability - the amount of stocks is greater than the amount of own working capital, but less than or equal to the planned sources of their coverage (the sum of own working capital and short-term bank loans). Unstable (pre-crisis) financial condition - the amount of reserves is more than the planned sources of their coverage, but the balance can be restored by attracting temporary sources of replenishment of own working capital into circulation. Crisis financial condition - the amount of reserves exceeds the planned sources of their coverage and temporary sources, the balance is restored due to overdue accounts payable; The company is on the verge of bankruptcy. Analysis of financial stability is performed on the basis of the calculation of the following ratios. An analysis of financial stability based on an assessment of the satisfaction of the balance sheet structure is performed on the basis of the following relative ratios. Table 11. Analysis of the satisfaction of the balance sheet structure
Indicator Indicator value Normal At the beginning of the period At the end of the period indicator value Autonomy coefficient Debt to equity ratio Equity debt coverage ratio The ratio of mobile and immobilized means Agility factor The coefficient of security of current assets with own sources of formation Industrial property ratio current debt ratio Fixed capital ratio The autonomy coefficient decreased by 0.07, but still exceeds the normal value, which means that all the obligations of the firm can be covered by its own funds. The ratio of borrowed and own funds at the beginning and at the end of the year corresponds to the standard value, which indicates the sufficiency of own funds. The debt coverage ratio with equity decreased by 2.24. The coefficient of security of current assets with own sources of formation decreased by 0.17, from 0.70 to 0.53, which does not correspond to the standard value. The maneuverability coefficient for the analyzed period decreased from 0.35 to 0.27, which indicates a decrease in the value of mobile vehicles, in addition, the value of the coefficient is much less than the standard value. The current debt ratio increased by 0.06. During the analyzed period, there was an increase in the ratio of borrowed and own funds by 0.10. This means that the company has become more active in attracting borrowed funds. The liquidity of the balance sheet is defined as the degree of coverage of the obligations of the enterprise by its assets, the period of transformation of which into cash corresponds to the maturity of the obligations. For
analysis of the liquidity of the balance sheet, the assets of the balance sheet are grouped and arranged according to the degree of decreasing liquidity, and liabilities - according to the degree of urgency of their payment. There are four groups of assets according to the degree of liquidity, and four groups of liabilities according to the degree of maturity. The results for the respective groups are compared with each other. The balance is considered absolutely liquid if: 1. Absolutely liquid assets exceed or are equal to the most urgent liabilities (А1 ³ П1). 2. Marketable assets are greater than or equal to medium-term liabilities (A2 ³ P2). 3. Slowly realizable assets are greater than or equal to long-term loans and borrowings (A3³ R3). 4. Hard-to-sell assets are lower than or equal to the equity capital of the enterprise (A4 £ P4). In the case when one or more inequalities have a sign opposite to those given, the liquidity of the balance sheet to a greater or lesser extent differs from the absolute one. By analyzing the ratios of these groups of assets and liabilities of the balance sheet at the beginning of the year and the end of the year, conclusions are drawn about the change in the liquidity of the balance sheet of the enterprise. Table 12. Grouping of assets by degree of liquidity
Type of asset At the beginning of the period At the end of the period Cash Short-term financial investments Total for group A1 Goods shipped Accounts receivable for which payments are expected within 12 months Total for group A2 Raw materials Unfinished production Finished products VAT on purchased assets Total for group A3 Fixed assets Future spending Long-term accounts receivable Total for group A4 Table 13 - Grouping of liabilities by maturity
Liability article At the beginning of the period At the end of the period Accounts payable Total for group P1 Short-term loans and credits Total for group P2 Long-term loans and credits Deferred tax liabilities Total for P3 group Authorized capital Extra capital Reserve capital Undestributed profits Indebtedness to participants for the payment of income revenue of the future periods Reserves for future expenses and payments Total for group P4 Total The balance is considered to be absolutely liquid if four conditions are met. In our case, only three are performed, namely: A 2 (1711; 1771) > P 2 (1426; 1897); A 3 (5170; 5827) > P 3 (-; -); A 4 (9368; 11358)< П 4 (14187; 15380).
The failure of the first inequality indicates that the liquidity of the balance sheet to a greater or lesser extent differs from the absolute one. To make the most reasonable conclusions about the solvency of the enterprise allow relative liquidity indicators: absolute liquidity ratio - the ratio of cash and short-term financial investments to the amount of short-term liabilities; quick (urgent) liquidity ratio - the ratio of the amount of cash, short-term financial investments and receivables, payments on which are expected within 12 months after the reporting date, to the amount of short-term liabilities; current liquidity ratio (coverage) - the ratio of the amount of current assets to the amount of short-term liabilities. Table 14. - Relative liquidity ratios
Having calculated the relative indicators, we can conclude that the absolute liquidity ratio at the beginning of the year can pay 6.4% of its short-term liabilities, and at the end of the year 8.6%, which is less than the accepted norms. The value of the quick liquidity ratio is less than acceptable, which indicates a decrease in solvency. The current liquidity ratio allows you to establish the multiplicity of current assets cover short-term liabilities. The value of the coefficient at the beginning (3.13) and the end of the year (2.03) exceeds the normal value, this indicates that the enterprise has a certain amount of free resources (the higher the coefficient, the greater this volume) generated from its own sources. The financial condition is the most important characteristic of the financial activity of the enterprise. It determines the competitiveness of the enterprise and its potential in business cooperation, is the guarantor of the effective implementation of the economic interests of all participants in financial relations, both the enterprise itself and its partners. In order to make a reasonable conclusion about the financial condition of the enterprise and its change during the reporting period, it is necessary to obtain a comprehensive comparative assessment of the financial condition. Table 15. Comprehensive assessment of the financial condition of the enterprise
Indicators Indicator value Normalized meaning For the beginning of the year At the end of the year For the beginning of the year At the end of the year Profitability of sales Return on total capital Autonomy coefficient Equity debt coverage ratio The coefficient of security of current assets with own sources of formation Industrial property ratio Comprehensive assessment of the financial condition The decrease in profitability at the end of the year indicates an increase in production costs at constant prices for products or a decrease in prices for sold products, i.e. falling demand for it. A comprehensive assessment at the beginning and end of the year will be calculated using the rating assessment formula: P = √ ∑ (1 - P ŋi) 2 Where P ŋi is the normalized value of the i-th indicator Ro n \u003d √ (1 - 1) 2 + (1 - 1) 2 + (1-1.72) 2 + (1-5.94) 2 + (1-7) 2 + (1-1.8) 2 = 7.85 Ro k \u003d √ (1 - 1.07) 2 + (1 - 2.11) 2 + (1 - 1.58) 2 + (1 - 3.70) 2 + (1 - 5.3) 2 + ( 1 - 1.66) 2 = 5.27 After calculating a comprehensive assessment of the financial condition of the enterprise, we can conclude that the financial position of the enterprise has improved, since at the end of the period there was a decrease in the complex indicator compared to the beginning of the period. But all the same, the financial position of the enterprise is far from ideal, since the value of the rating should be around zero. Additional task. Perform factor analysis and determine the impact of factors of return on sales, capital intensity for fixed and working capital on the change in the return on total capital. Use the chain substitution method. Return on total capital = Return on sales: (Capital intensity of fixed capital + Capital intensity of working capital). 1. Return on total capital at the end of the reporting period: 2. Return on total capital, subject to changes in return on sales: 3. Return on total capital, subject to changes in return on sales and capital intensity on working capital: 4. Return on total capital, subject to changes in return on sales and capital intensity for working capital, capital intensity for fixed capital: ∆Р sk \u003d 4.5952-5.2229 \u003d -0.6277 ∆Р sk = 4.5952-4.2915=0.3037 ∆Р sk \u003d 4.2915-5.2228 \u003d -0.09313 ∆Р sk \u003d 5.2228-5.2229 \u003d -0.0001 Financial condition - the most important characteristic of the economic activity of the enterprise. This is an indicator of its financial competitiveness, the use of financial resources and capital, the fulfillment of obligations to the state and other business entities. Based on financial analysis, the management of the enterprise can make management decisions, and potential investors, creditors and other interested parties can draw conclusions about the financial stability, reliability and solvency of the company. A stable financial position is achieved with equity capital adequacy, good asset quality, a sufficient level of profitability, taking into account operational and financial risk, liquidity adequacy, stable income and broad opportunities to raise borrowed funds. The main goal of financial activity is reduced to one strategic task - to increase the assets of the enterprise. To do this, it must constantly maintain solvency and profitability, as well as the optimal structure of the asset and liability of the balance sheet. In the course work, an assessment of the financial condition of the enterprise is given on the basis of calculations of three main coefficients: the absolute liquidity ratio, the current liquidity ratio, the independence ratio. Having calculated the relative indicators, we can conclude that the absolute liquidity ratio at the beginning of the year can pay 6.4% of its short-term liabilities, and at the end of the year 8.6%, which is less than the accepted norms. The value of the quick liquidity ratio is less than acceptable, which indicates a decrease in solvency. The current liquidity ratio allows you to establish the multiplicity of current assets cover short-term liabilities. The value of the coefficient at the beginning (3.13) and the end of the year (2.03) exceeds the normal value, this indicates that the enterprise has a certain amount of free resources (the higher the coefficient, the greater this volume) generated from its own sources. At the beginning of the year, our enterprise can be attributed to normal financial stability, since the amount of reserves equal to 5483, which is more than the amount of own working capital equal to 4820, but less than the planned sources of their coverage: 4820 + 1426 = 6246. At the end of the year, the company "Selecta" is characterized by an unstable (pre-crisis) financial condition. Because the amount of stocks 6399 is more than the planned sources of their coverage 5919. This is evidenced by the decrease in own working capital. As a result, it was concluded that the company needs to improve its financial condition in terms of individual indicators. To improve the financial condition of the enterprise, a number of activities are carried out, such as factoring, leasing, seleng, option, currency conversion, report, deposit operations, trust operations, hedging, franchising and others. 1. Federal Law "On Accounting", No. 129-FZ of November 21, 1996. (as amended by Federal Law No. 123-FZ of July 23, 1998). 2. "Guidelines for the analysis of the financial condition of organizations". Approved by the Order of the FSFR of the Russian Federation dated January 23, 2001 3. Bakanov M.I., Sheremet A.D. Theory of economic activity analysis: Textbook - M .: Finance and statistics, 2000. 4. Basovskii L.E., Basovskaya E.N. Comprehensive economic analysis of economic activity. - M.: Infra - M, 2004. 5. Kovalev V.V. Financial analysis: methods and procedures. - M: Finance and statistics, 2001 6. Kogdenko V.G. Workshop on economic analysis. - M.: "Perspective", 2004. 7. Lyubushin N.P., Leshcheva V.B., Dyakova V.G. Analysis of the financial and economic activities of the enterprise - M: Unity, 2002. 8. Savitskaya G.V. Analysis of the economic activity of the enterprise: Textbook. - M.: Infra - M, 2004. 9. Strogonov N.V. Finances of organizations: Textbook - M.: UNITI, 2003. 10. Kolchina N.V. Enterprise finance: A textbook for universities - 2nd ed., Revised. and additional - M.: UNITY-DANA, 2004 11. Sheremet A.D., Saifulin R.S. Methods of financial analysis. -M. -2006. 12. L.G. Skamai, M.I. Trubochkin. Economic analysis of the enterprise. - M. - 2007.
2.1 Assessment of property status and capital structure
2.2 Analysis of the efficiency of the use of capital and business activity of JSC Selecta
2.3 Assessment of the financial stability of JSC Selecta
2.4 Analysis of the liquidity of the balance sheet and solvency of the enterprise
2.5 Comprehensive assessment of the financial condition of OJSC Selecta
Conclusion
Financial sustainability: by what indicators is it assessed? In the process of doing business, it is important to regularly assess the financial condition of the company. Such an analysis makes it possible to understand whether the organization will be able to carry out activities and service the obligations assumed. The analysis procedure is quite complex and multifaceted; it requires the calculation of a large number of .
Coefficients used for analysis
To assess the company in terms of its financial stability, various indicators play an important role, based on a comparison of the amount of funds owned by the organization with loans. The following coefficients are most often used for such an analysis:
Calculation of indicators for the new balance sheet 2016
Indicators that allow you to assess financial stability are calculated on the basis of the data presented in the accounting. Here are formulas that use strings from this form.
Autonomy coefficient \u003d SC / Total assets \u003d line in accounting.bal. 1300 / line in accounting 1600
abbreviation SC represents the amount of capital owned by the analyzed organization.
Financial leverage \u003d ZK / SK \u003d (line in accounting balance 1500 + line in accounting balance 1400) / line in balance. 1300
in the formula, the abbreviation ZK means funds that need to be returned to various kinds of creditors in the future. These are not only loans, but also debts to suppliers.
Security with own funds = (Equity funds - Non-current assets) / Current assets = (line in accounting balance 1300 - line in balance 1100) / line in accounting balance. 1200
Investment coverage = Equity working capital / Equity = (line in accounting balance 1300 - line in accounting balance 1100) / line in balance. 1300
Mobility of capital \u003d Value of working capital / SC \u003d (line in accounting balance 1300 + line in accounting balance 1400 - line in accounting balance 1100) / line in accounting balance 1100 1300
Mobility of working capital \u003d (Cash + Financial investments) / Working capital \u003d (line in accounting balance 1240 + line in accounting balance 1250) / line in accounting balance. 1200
Life on stock = Working capital / Inventory = (line in accounting balance 1300 + line in accounting balance 1400 - line in accounting balance 1100) / line in accounting balance 1100 1210
Short-term debt ratio \u003d Short-term debt / Total debt \u003d line in accounting balance. 1500 / (line in bal. 1400 + line in accounting bal. 1500)
Examples of indicator calculations
Suppose that the balance sheet of Vympel LLC for 2015 looks like this (images are clickable): 
Using the presented data, as well as the above formulas, we calculate the financial stability indicators that allow us to analyze:
- Autonomy coefficient = 389 / 2954 = 0.13
- Leverage = (2553 + 12) / 389 = 6.59
- Endowment with own funds = (389 - 1045) / 1909 = -0.34
- Investment coverage = (389 - 1045) / 389 = -1.69
- Capital mobility = (389 + 12 - 1045) / 389 = -1.66
- Mobility of working capital = (0+1123) / 1909 = 0.59
- life on stock = (389 + 12 - 1045) / 293 = -2.20
- Short-term debt ratio = 2553 / (12+2553) = 0.995
It is important to understand that the indicators presented are not usually considered for one year. When calculating them in dynamics (that is, annually), one can judge the effectiveness of the current policy, develop new measures for financial recovery that are relevant at the moment.
Analysis of the financial condition on the example of OJSC "Avtovaz"
Using the data contained in the balance sheet, as of 2012 and 2013 financial stability ratios were calculated. The result of calculations is presented in the table.
| Coefficient | Value 12/31/2012 | Value 12/31/2013 | Coefficient change | Standard value |
|---|---|---|---|---|
| Autonomy coefficient | 0.23 | 0.17 | -0.06 | Over 0.4 |
| financial leverage | 3.4 | 4.77 | +1.37 | Not more than 1.5 |
| Security with own funds | -1.29 | -1.73 | -0.44 | Not less than 0.1 |
| Investment coverage | 0.76 | 0.7 | -0.06 | Not less than 0.7 |
| Capital mobility | -1.92 | -3.02 | -1.1 | Over 0.15 |
| Mobility of working capital | 0.17 | 0.07 | -0.1 | - |
| lifespan | -3.14 | -3.16 | -0.02 | More than 0.5 |
| Short-term debt ratio | 0.32 | 0.37 | +0.05 | - |
Based on the analysis of the results obtained during the calculations, the following can be noted:
- The autonomy coefficient is unsatisfactory, that is, the company is too dependent on its creditors.
- Too high value of financial leverage confirms the high degree of dependence of the enterprise.
- The negative value of the index of provision with own funds makes it possible to judge that the amount of equity capital is too low.
- The deterioration in the value of the investment coverage indicator indicates a decrease in the sustainability of funding sources.
- The capital mobility index is below zero. This means that the risk of insolvency is too high. At the same time, the value of the indicator deteriorates.
- Too low value of the stocks availability indicator allows to judge unsatisfactory financial stability, which decreases over time.
A selection of financial analysis reports
| Company name | Report date | Analysis features | Download link |
|---|---|---|---|
| MTS OJSC | 06.06.2014 | Analysis of the financial condition was performed for the period from 01/01/2011 to 12/31/2013 (3 years). | Can be downloaded on this page. |
| JSC "Arsenal" | 01.01.2015 | A scoring of financial stability was carried out. | |
| JSC "Megafon" | 01.01.2012 | Analysis as of 31.12.2011 | Financial analysis in .pdf format |
| JSC "Prom-West" | 01.05.2014 | Analysis for 3 years. |
Thus, the company's financial stability indicators are calculated on the basis of the balance sheet data. The analysis of such coefficients allows not only to identify problems in the organization's activities, but also to develop advice on improving the enterprise.
Video lecture
A part of the course devoted to business diagnostics and the search for reserves to increase the return on it is given below in a video lecture on the analysis of the state of working capital of an enterprise.
Indicators of the financial condition of the enterprise. Analysis of the liquidity of the balance sheet and solvency of the enterprise. INTRODUCTION The market economy is associated with the need to improve the efficiency of production of the competitiveness of products and services based on a systematic analysis of the financial activities of the enterprise. But before investing in the development of an enterprise, it is necessary to analyze the financial condition of the enterprise to assess its investment attractiveness.
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2.1 Brief description of the activities of the enterprise "Furniture Paradise"
Chain of stores "Furniture Paradise" works in the city market Ulan-Ude since 1999. This period allowed us to make sure that the development strategy we have chosen is correct. "Furniture Paradise" has confidence, financial strength, dynamism and is focused on the introduction of low-cost technologies in the field of activity.
The main activity is the production and wholesale and retail sale of cabinet and upholstered furniture in Ulan-Ude And Republic of Buryatia, as well as in Chita region. "Furniture Paradise" has determined its place in the market by combining the functions of a furniture manufacturer and seller.
"Furniture Paradise" studies the products of many manufacturers, carries out marketing work with one goal - to offer customers the most sought-after goods of good quality at the best prices. Our production base has a mobile, flexible structure and consistently ensures the fulfillment of wholesale orders of customers of almost any batch of furniture, thanks to an extensive warehouse program.
"Furniture Paradise" dynamically developing, constantly updating the range of offered goods, expanding the geography of sales and increasing the customer base.
It also sells furniture in bulk at competitive prices, offers assistance in selecting an assortment, discounts and deferred payment for regular wholesale buyers.
For the convenience of residents of the city and the Republic, our company offers to purchase our furniture at retail in a chain of stores "Furniture Paradise", for regular customers a flexible system of discounts is offered, as well as free delivery in the city.
Let's turn to the balance sheet of the analyzed enterprise - "Furniture Paradise", which is presented in Appendix 1.
As already noted, to assess the property status of an organization, an analysis is made of the dynamics and structure of its assets and capital (horizontal and vertical analysis).
The results of such an analysis for the organization we are considering are presented in Table 2.1.1
Table 2.1.1
Dynamics and structure of assets and capital "Furniture Paradise". (thousand roubles.)
|
Indicators |
For the beginning of the year |
At the end of the year |
Deviation per year (+, -) | ||||||
|
Share in balance currency, % |
By amount |
By specific weight, % | |||||||
|
Non-current assets - total | |||||||||
|
including: | |||||||||
|
Intangible assets | |||||||||
|
fixed assets | |||||||||
|
Construction in progress | |||||||||
|
Long-term financial investments | |||||||||
|
Current assets - total | |||||||||
|
including: | |||||||||
|
raw materials, materials and other similar values | |||||||||
|
finished goods and goods for resale | |||||||||
|
Accounts receivable (for which payments are expected more than 12 months after the reporting date) | |||||||||
|
Accounts receivable (payments for which are expected within 12 months after the reporting date) | |||||||||
|
Cash | |||||||||
|
TOTAL ASSETS | |||||||||
|
Equity - total | |||||||||
|
including: | |||||||||
|
Authorized capital | |||||||||
|
Extra capital | |||||||||
|
Reserve capital | |||||||||
|
Undestributed profits | |||||||||
|
Borrowed capital - total | |||||||||
|
including: | |||||||||
|
Long term duties | |||||||||
|
Current liabilities - total | |||||||||
|
Loans and credits | |||||||||
|
Accounts payable | |||||||||
|
TOTAL CAPITAL |
As can be seen from the data in Table 2.1.1, the property position of "Furniture Paradise" has significantly improved over the reporting year. The balance sheet at the end of the reporting year increased by 16.3% compared to the beginning of the year and amounted to 77,041.9 thousand rubles. At the same time, an increase was achieved both in non-current assets (by 40.2%) and current assets (by 14.3%). The increase in non-current assets occurred mainly in the item "Fixed assets" (an increase over the year by 42.9%) due to the commissioning of new facilities. At the same time, the organization continues construction in an economic way. The volume of construction in progress increased by 38.8% over the year.
The main share of the property "Furniture Paradise" is current assets (at the end of the year - 90.7% of all assets), which is typical for a trade organization. In total, they increased over the year by 8,731.6 thousand rubles. (by 14.3%). Due to the higher growth rate of non-current assets (by 40.2%), the share of current assets decreased slightly (from 92.3% to 90.7%), but is still high, which allows us to characterize the assets of the organization as a whole, as highly mobile.
Commodity stocks prevail in the composition of current assets (at the end of the year - 65.7%), which reflects the industry specifics of the trade organization. In total, they increased by 3% over the year. However, their share in total assets decreased by 8.47 points (from 74.2% at the beginning of the year to 65.73% at the end of the year) as a result of an excessive increase in accounts receivable, payments on which are expected within 12 months. after the reporting date (by 4.66 times) and receivables, payments on which are expected in more than 12 months. after the reporting date (by 14.1%).
With an increase in assets by 16.3% equity "Furniture Paradise" increased by 51.1%. The share of equity capital in the total amount of capital increased from 29.26% to 38.03%, or by 8.77 points, which is a positive indicator and indicates an increase in the financial independence of the analyzed organization.
At the end of the year, the balance sheet of "Furniture Paradise" includes retained earnings in the amount of 24,009.6 tons. At the same time, it increased by almost 1.5 times over the reporting year. This indicates that the trading house has a large financial reserve.
The share of borrowed capital for the reporting year decreased in accordance with the increase in the share of equity capital, i.e. by 8.77 points. At the same time, all types of accounts payable decreased by 2,175.8 thousand rubles, or by 12.63 points. Such a decrease occurred due to a decrease in debt to suppliers of goods (from 43,867.3 thousand rubles to 41,111.8 thousand rubles), which can be regarded as a positive result. In a normally functioning market economy, the amount of accounts payable and receivable should be minimal. In the analyzed organization, the accounts payable are very large, which is typical for the vast majority of trade organizations in modern Russia due to the lack of own working capital and the unavailability of bank loans due to high interest rates for loans.
As already noted, it is very important to compare the growth rates of assets, revenue from the sale of goods and accounting profit. These data for the analyzed organization are presented in Table 3.
Table 2.1.2.
Growth rate of assets, proceeds from the sale of goods (products, works, services) and accounting profit "Furniture Paradise".
|
Indicators |
Base year, thousand rubles |
Reporting year, thousand rubles |
Growth rate of indicators, % |
|
|
Average annual property value | ||||
|
Revenue from the sale of goods | ||||
|
Accounting profit |
Based on the data in Table 2.1.2, we can conclude that in the reporting year, the analyzed organization had a positive trend in indicators of revenue from the sale of goods, accounting profit and assets in use.
With an increase in assets of 9.56%, revenue from the sale of goods increased by 28.9%, and accounting profit increased by 18.25%, which, in terms of growth rates, is slightly lower than the increase in revenue from the sale of goods (28.9%), however , the growth rate is very significant.
Summing up the analysis of the dynamics of the capital structure and assets of the Mebelny Rai enterprise, it can be noted that during the reporting period its property position has significantly strengthened, financial independence from external sources of financing has increased, and, consequently, its overall financial condition has improved.
2.2 Assessment of financial stability and solvency
An external manifestation of financial stability is solvency - the ability to fulfill payment obligations in a timely manner. The assessment of solvency is given for a specific date. It is confirmed, first of all, by the fact that the organization has ready-made means of payment - cash, as well as short-term financial investments. The more funds in the accounts of the organization, the more likely it can be argued about its solvency. However, the presence of relatively small cash balances on accounts and on hand does not always mean that the organization is insolvent: funds can be received within the next few days, short-term financial investments can be easily converted into cash. The financial stability of a trade organization is characterized by a system of absolute and relative indicators. A generalizing absolute indicator of financial stability is the surplus or lack of sources for the formation of current assets. The analysis can be carried out either for all current assets, or for their main element - inventory.
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