The cost of a product or service, sales revenue, profit (gross and net) or loss are the main financial indicators of a company. But also the analysis of the financial statements of the organization should include other parameters. For example, income and receipts from other sources, various expenses associated with commercial and administrative activities, interest on loans that must be paid, etc.
When all this data is systematized, it is possible to understand how financially stable the company is at the present time, and to predict the prospects.
Financial statements are the basis for analyzing the financial condition. You will get more information if it is researched for several periods at once.
But it is important that the level of qualification of a financial analyst is high enough to notice inconsistencies in time, if any begin to emerge. A qualified specialist, when analyzing financial statements, will surely be able to identify false information that appears for a number of reasons. For example, the company's management team deliberately wants to "comb" the balance sheet for owners who do not take part in the operational management of the company and at the same time do not provide tight control.
It also happens that the indicators are cleaned up at the suggestion of the owner himself: “beautiful” numbers are needed to obtain a loan or when selling a business. However, incorrect data in the reporting may appear not intentionally, but due to the imperfection of legislation and accounting methods.
As a rule, falsified data emerge, but time can be lost: the wrong decision based on unreliable information given by the pseudo analysis of financial statements has already been made. It is possible to minimize the risks of encountering annotations in reports if the business structure is more understandable and transparent.
Analysis of financial statements: basic methods and techniques
There are various methods by which the analysis of financial statements is carried out. Let's analyze some of them.
1. Express analysis
Using the express method, you can quickly get an assessment of the financial condition of the company, understand how dynamically it is developing. As a rule, this is an analysis for internal use, which is a kind of preparation for a more in-depth study.
First of all, experts pay attention to the correct reporting, look at how the details are filled in, whether everything is signed by the managers. Further, the reporting is studied in the context of the most significant indicators. This allows you to quickly identify the changes that have occurred and assess the financial situation.
2. Vertical method
The vertical method involves the analysis of the financial statements of the enterprise not in absolute terms, but in shares of the base value. For example, you can determine the percentage of product cost and gross profit in revenue, calculate the share of sales costs, administrative fees, R&D, etc.
3. Horizontal method
Using the horizontal method, a comparative analysis of the financial statements of the enterprise of the same data in different periods of time is carried out. Let's say the revenue of the first half of 2018 is compared with the same indicator obtained in the first half of 2017. Further, the dynamics of the indicator is determined in percent.
4. Factor method
When a factor analysis of financial statements is carried out, the figures are examined in the context of factors and reasons that somehow influenced the result. This helps to decide how to improve the situation by strengthening the same factors or, conversely, by eliminating them.
When a company set out to analyze financial statements, 3 tricks can come in handy: grouping, highlighting bottlenecks, balance sheet.
1. The grouping method helps to systematize data, find opportunities to improve the company's efficiency. This technique is especially good for consolidated reports: this way you can identify weak divisions and find ways to pull them up to a higher level.
2. Reception of identifying bottlenecks (problem) places that slow down the company on the way to the goal. Here it is important not only to find the problem, but also to draw a conclusion that will make it possible to eliminate it.
3. The balance acceptance is based on two versions of the balance - planned and actual. Deviations are determined for certain indicators and how they affect the result.
Financial Statement Analysis: Estimated Ratios
Analysis of the accounting financial statements of the enterprise can be carried out using various ratios. Key factors include the following:
liquidity(the company's ability to meet short-term financial obligations). The purpose of this analysis is to identify assets that can be quickly sold to pay off creditors. The more liquid assets, the better for the company.
Money. With the help of these coefficients, the company's ability to pay operating expenses, loans without cash gaps is assessed.
Profitability(general, sales, assets, production). The indicator is calculated based on profit. So, to determine the overall profitability, you need to divide profit before tax by revenue and multiply by 100%. And the profitability of sales (what profit the company receives from 1 ruble of revenue) is the ratio of profit to revenue multiplied by 100%.
debts. This ratio evaluates financial risks: the greater the short-term and long-term outstanding liabilities, the higher the risks.
Sales per 1 employee. In this case, the more the better. The increase in indicators is facilitated, among other things, by the introduction of high technologies and increased productivity.
Analysis of financial statements: an integrated approach
When evaluating accounting reports, it is very important to examine profit indicators from all sides. It is necessary to calculate not only the amount of profit before and after taxation, but also to understand its sources: how much profit is brought directly by sales, and how much is from other activities or receipts, what impact they have on the overall financial “pie”.
But even such a serious indicator as profit cannot be considered in isolation: the analysis of the company's financial statements must be comprehensive. Therefore, it is necessary to look at the indicators in aggregate. And here the key parameters are profitability, financial stability, solvency and turnover.
A comprehensive analysis of financial statements assumes that the same assessment method will be applied to the selected parameters, ideal values will be determined, which can serve as current standards, the results of market leaders, recognized theoretical works. All this together will assess the financial stability of the company.
Analysis of financial statements: what gives information
So, what is the analysis of financial statements for? Let's summarize. First, analytical information is required to obtain a reliable assessment of the financial position of the firm. Secondly, it helps to see the cause-and-effect relationships that help the company achieve its goals, take a strong position in the market.
Also, the data obtained make it possible to argue a particular financial decision, to see the problem of liquidity or solvency in time and take actions to eliminate it.
In addition, the analysis of financial statements will be the basis in order to switch to the mode of increasing the stability and efficiency of the organization.
Please note that it is worth analyzing not only your own data, but also the reporting of competitors. This is a unique opportunity to see how their business process is organized.
The annual reporting of large enterprises from the same area will help to understand the trends in this segment, see strong practices, take advantage of solutions that are detailed in relation to various risks and difficulties.
With the help of a retrospective analysis, rational and unprofitable areas of activity are determined, resources are allocated, the results of the company's work are monitored, unused reserves and shortcomings in work are identified.
The analysis of financial statements is the application of analytical tools and methods to the indicators of financial documents in order to identify significant relationships and characteristics necessary for making any decision. Most importantly, the analysis of financial statements allows you to rely less on guesswork, premonitions and intuition, reduce the inevitable uncertainty that is present in any decision-making process. The analysis of financial statements does not eliminate the need for business sense, but creates a solid and systematic basis for its rational application.
This section presents methods designed to calculate financial reporting indicators and conduct factor analysis in order to develop the most effective management decisions, analyze the effectiveness of past decisions and forecast/plan the future financial condition.
Foreword
Understanding the economic meaning of the input data and calculated coefficients. It is not so important to cover a large amount of initial data and derived coefficients as to correctly assess their importance from the point of view of the final goals of the analysis being carried out.
small digression. During the Second World War, US Army soldiers organized a temporary military base on one of the Pacific islands. Aboriginal people who had not previously been familiar with civilization lived on that island, and the soldiers sometimes fed them with canned food. They especially liked the stew. Observant islanders identified the source: cargo planes arriving at the airfield. The war ended, the base was closed. A few years later, scientists visited the island to study this tribe. What was the surprise of anthropologists when they discovered a copy of the American airfield built by the natives: a cleared strip in the jungle, a radio operator's hut and the "radio operator" himself knocking something resembling a Morse code key. When scientists came to their senses (they least expected to see this), they found out the reasons for this pastime. After the Americans left, the inhabitants of the island waited a long time for the arrival of planes with stew, but for some reason they did not arrive, and then, with the support of the shaman, the natives built an "airfield", appointed the most capable "radio operator" and began to wait for a positive result. The main thing is faith in success - so it seemed to them.
At the beginning of the 2000s, a study was conducted to assess the effectiveness of users with programs for investment analysis, 95% of the respondents admitted that they did not understand the economic meaning of the calculations made. With the analysis of financial statements, the situation both then and now is better, but still, for management tasks it is not enough to calculate the coefficients and their deviation from the optimal ones, it is necessary to identify the causes and ways to improve the situation. That is, it is important that the report of a financial analyst is not an instant snapshot of the current financial condition of the company or even a formality, but would be a source of information, with a detailed analysis of the causes of the current situation, based on retrospective and factor analysis, a forecast of the development of the situation and specific proposals to change the situation.
The complexity of the analysis of financial statements, with all the simplicity of the mathematical formulas used, lies in the ambiguous interpretation of the indicators obtained as a result of the calculation, their interpretation is highly dependent on the general economic situation, the industry, the position of the investment cycle and the individual characteristics of the enterprise. In addition, it is necessary to take into account the complexity of understanding the methods due to the large number of synonyms for terms and derived indicators. There are also a large number of synonyms in the English-language literature, and when translating economic literature, new ones appear, and at the same time, their meaning sometimes changes. Russian creators of methods for analyzing financial statements often introduce / add and / or mix / apply the terminology and methods of the planned economy with methods that came from the West. Some of the coefficients have several calculation options. When adapting Western methods to differing Russian financial statements, problems also arise. Possible, for various reasons, discrepancy between the declared financial statements and the real state of affairs at the enterprise, and at the same time not identified by the auditors. A serious problem is the revaluation of the value of fixed assets, taking into account their depreciation and the effect of inflation.
1. Determining the purpose of the analysis
Who doesn't know where he's going
very surprised if it doesn't go there.
/ observation of Mark Twain /
The process of analyzing financial statements is described in different ways depending on the task. It can be used as a pre-screening tool when choosing an investment direction or possible merger options. It can also act as a tool for predicting future financial conditions and results. The analysis of financial statements is also applicable to identify problems in the management of production activities. It can serve to evaluate the performance of the company's management.
Depending on the goals of the analysis, attention is focused on the appropriate type of financial analysis. For example, for creditors, the most important are the company's liquidity indicators, for shareholders - profitability indicators, for trade union analysts - labor costs, the volume and effectiveness of capital expenditures, civil servants - the correctness of tax payments, etc.
Choosing the optimal (target, normative) indicators for the company is a very difficult and important task. There is no universal list of coefficients for any company.
Examples:
- selection in accordance with the strategic and tactical development plan of the company,
- choice in accordance with the strategic development plan of the company and taking into account the external economic situation (and its forecast),
- compliance with the coefficients of the best companies in the industry, taking into account the scale, etc.
2. Preparation of initial data
Financial statements contain data on the financial position of the company at a certain point in time and the results of operations for the reporting period. However, the real value of reporting is that it can be used to predict future earnings and dividends. From an investor's point of view, financial position analysis is useful both as a way to predict future financial position and, more importantly, as a starting point for planning actions that will affect the course of events in the future.
All the data necessary for the calculations are summarized in the definition and location of the initial (entered into the program) data.
Before conducting the main analysis, in some cases, an express analysis of the financial statements is done.
3. Calculation of indicators
To assess the financial condition of a company, an analyst needs certain tools. In this capacity, financial ratios are used (the ratio of two or more quantitative characteristics). The analysis and interpretation of financial ratios corresponding to the task make it possible to obtain a more complete and closer (more specific) idea of the state of affairs in the company to the answers. Correctly interpreted ratios can furthermore point out to the financial analyst areas that require further study and investigation. Ratio analysis can reveal conditions and trends that cannot be detected by looking at the individual components of the ratio.
Ratios, like most other ratios in financial analysis, should be interpreted in relation to:
- past coefficients of the enterprise or
- some pre-established standards, or
- coefficients of other companies in the industry.
The change in the value of the coefficient over time is also important, because it represents the trend of its dynamics.
Ratios should be interpreted with great care, as factors affecting the numerator may correlate with factors affecting the denominator. For example, the ratio of costs to revenue from all types of sales (sales volume) can be improved by reducing the cost of promoting sales. If cost reductions lead to reduced turnover or market share, then this apparent improvement in profitability will in fact have the exact opposite effect in the enterprise's perspective and should be interpreted accordingly.
Comparison of financial ratios is carried out in the direction of comparing indicators for the current and past periods and as a forecast of the future state.
The grouping of financial indicators is made taking into account the answer to the main questions of financial analysis.
3.1. Calculation of liquidity ratios - financial stability in the short term (within a year).
3.2. Solvency indicators - financial stability in the long term.
3.3. Profitability indicators - efficiency of the company.
3.4. Turnover - the intensity of the use of financial resources.
The number of financial ratios that can be calculated, according to the data provided in the financial statements, is very large, but only the main ones will be calculated in this methodology, because. in practice, it is sufficient to use a relatively small number of indicators in order to correctly assess the financial condition of the company.
It should also be recognized that many coefficients have important components that are the same as those of other coefficients and thus are affected by the same factors. Therefore, in order to find out the existing conditions, there is no need to use the whole range of possible coefficients.
3.1 Liquidity ratios
liquidity. The firm's assets that are of value to the market, such as cash or marketable securities. Assets that can be quickly monetized with little concession in price. Or the extent to which an enterprise can meet its current obligations, as determined by its liquid assets.
Liquidity ratios characterize the solvency of the enterprise not only at the moment, but also in case of emergency.
The liquidity of an asset is the ability to sell it and receive cash, and the degree of liquidity refers to the speed with which this asset can be sold. The faster you can sell an asset, the higher its liquidity.
The liquidity of an enterprise is the ability to repay short-term assets with the help of working capital or, in other words, the ability of an enterprise to service debts.
Usually, highly liquid, low liquid and illiquid values (assets) are distinguished. The easier and faster you can get the full value of an asset, the more liquid it is. For a product, liquidity will correspond to the speed of its sale at a nominal price.
The assets of the enterprise are reflected in the balance sheet and have different liquidity (in descending order):
- cash in the accounts and cash desks of the enterprise,
- bank bills, government securities,
- current receivables, loans issued, corporate securities (shares of enterprises listed on the stock exchange, bills of exchange),
- stocks of goods and raw materials in warehouses,
- cars and equipment,
- buildings and constructions,
- Construction in progress.
Parameter name |
Acronym and formula |
characterizes |
Norm- |
Factor- |
Defined as |
Current liquidity ratio | degree of coverage of current assets by current liabilities |
the ratio of all current assets, including inventories and work in progress, to short-term liabilities |
| Quick liquidity ratio | the extent to which the company's liquid assets cover its short-term debt |
the ratio between working capital less inventories and short-term accounts payable |
|||
|
reflects the degree of liquidity of the company |
the average time it takes for a company to sell its products and wait for cash to come in |
|||
|
the average period of time during which the company, having acquired raw materials, components, etc., will pay money |
the ratio of the average amount of accounts payable for the period, multiplied by the number of days in the period, to the amount of purchases for this period |
|||
|
reflects the rate of inventory realization |
the time in days it takes for inventory to be sold |
|||
|
availability of own working capital of the enterprise necessary to ensure its financial stability |
the ratio of the difference between the volume of sources of own funds and the actual cost of fixed assets and other non-current assets to the actual value of the working capital available to the enterprise |
3.2 Solvency indicators (financial sustainability in the long term)
In the long term, it is difficult to predict the amount of cash flows and, accordingly, calculate liquidity ratios, therefore, to assess financial stability, coefficients characterizing the capital structure are used.
Coverage ratios are calculated to correlate a company's liabilities with its ability to service its debts.
Interest coverage ratios for loans - (the degree of coverage of interest payments by profit, interest coverage ratios) - the ratio of taxable profit for the reporting period to interest paid for the same period on debt obligations.
Parameter name |
Acronym and formula |
characterizes |
Norm- |
Factor- |
Defined as |
Autonomy coefficient | the ratio of equity and reserves to the sum of all funds |
| Financial leverage ratio |
|
the share of ownership of the owners of the enterprise in the total amount of advanced funds |
debt to equity ratio |
||
>= 100 points |
scoring model with three balance indicators |
||||
integral assessment of financial stability |
>= 100 points |
scoring model with five balance sheet indicators |
|||
how much time is needed for the company to pay the principal amount of the debt, excluding interest on loans |
the ratio of the amount of depreciation and earnings before taxes and interest to the amount of debt |
||||
the possible degree of reduction in the operating profit of the enterprise, at which it can service interest payments |
a financial indicator that measures the amount of profit before paying interest on a loan and paying taxes with the cost of paying interest |
3.3 Profitability indicators
There are two types of profitability ratios. Indicators of the first type evaluate profitability in relation to sales and costs, and indicators - in relation to investment. Considered together, they give an idea of the effectiveness of the economic activity of the enterprise.
Parameter name |
Acronym and formula |
characterizes |
Factor- |
Defined as |
Return on assets |
|
shows the ability of the company's assets to generate profit |
quotient of dividing the net profit received for the period by the total value of the organization's assets for the period |
| Return on equity |
|
equity capital efficiency |
MaxROE |
the ratio of net income to capital and reserves |
|
efficiency of production and commercial activities |
the ratio of net profit to revenue from all types of sales |
||
efficient use of borrowed capital |
how much profit will be accounted for by borrowed capital |
|||
|
reflects the rate at which a company's equity increases |
the ratio of the amount of reinvested earnings to the amount of equity capital |
||
|
how effectively the management of the enterprise invests in the main activities of the enterprise |
return on a certain amount of money invested in a business or project |
||
|
efficient use of non-current assets |
the ratio of net profit to the amount of non-current assets |
||
|
cost recovery |
ratio of net cash inflow to cost of goods sold |
3.4 Turnover ratios
New production begins with the acquisition of assets, raw materials, hiring workers, marketing organization. This is followed by production and further marketing. After completion, the cycle repeats. This requires capital. In normal operation, after each cycle, the investor receives back part of the capital and profit, depending on the profitability of the enterprise. The shorter the entire production cycle, the faster the investor will return the capital and get more profit at the same profitability. Turnover indicators reflect the intensity of the use of capital, or characterize the speed with which various types of capital are turned over.
Parameter name |
Acronym and formula |
characterizes |
Factor- |
Defined as |
The duration of the turnover of invested capital |
|
efficiency of use of invested funds |
quotient of dividing the duration of one period by the number of turnovers of invested capital for this period |
| Duration of working capital turnover |
|
efficient use of working capital |
quotient of dividing the duration of one period by the number of turnovers of current assets for this period |
|
|
efficient use of all company assets |
quotient of dividing the duration of one period by the number of asset turnovers (TAT coefficient) for this period |
||
|
the level of operation of non-current assets (fixed assets) and the effectiveness of their use |
quotient of dividing the duration of one period by the number of turnovers of non-current assets for this period |
||
Federal State Budgetary Educational Institution
higher professional education
"MORDOVA STATE UNIVERSITY named after A.I. N.P. OGAREVA"
Faculty of Economics
Department of Accounting, Analysis and Audit
COURSE WORK
ANALYSIS OF THE FINANCIAL STATEMENTS OF THE ENTERPRISE
Designation of course work KR-02069964-38.05.01-10-17
Specialty 38.05.01 economic security
Coursework Supervisor
candidate of economic sciences, associate professor E.G. Moskaleva
Saransk
abstract
The course work contains 50 pages, 11 tables, 24 used sources.
ANALYSIS OF INDICATORS OF FINANCIAL STATEMENTS, FINANCIAL STATEMENTS, ANALYSIS, BALANCE STATEMENTS.
The object of study is the SUE RM "Lisma".
The subject of study is the assessment of the company's financial statements.
The purpose of the work is to develop measures to increase the profit of the enterprise, based on the analysis of the financial condition.
In accordance with the goal, it is necessary to solve the following tasks:
a) To study the theoretical foundations of the analysis of the financial condition of the enterprise.
b) Consider the main existing methods of financial analysis.
c) Conduct an analysis of the indicators of the financial condition of the State Unitary Enterprise RM "Lisma".
d) Develop measures to improve the financial condition of SUE RM "Lisma"
The study was conducted on the basis of financial statements, namely the balance sheet, the statement of financial results of the State Unitary Enterprise RM "Lisma", and educational and methodological manuals were also used.
Scope - in the practice of a specialist in economic security.
Efficiency - improving the quality of knowledge on a given topic.
Introduction
1. Theoretical aspects of the analysis of indicators of the organization's financial statements
1.1 Financial reporting as an information basis for analyzing the organization's activities
2 Purpose, objectives and directions of analysis of financial statements indicators
3 Structure and content of financial reporting forms and their analytical capabilities
Analysis of indicators of the financial statements of the organization SUE RM "Lisma"
1 Analysis of the indicators of the balance sheet of SUE RM "Lisma"
2.2 Analysis of indicators of other forms of financial statements of SUE RM "Lisma"
2.3 Analysis of financial results according to the statement of financial results of SUE RM "Lisma"
4 Using the results of the analysis of financial reporting indicators in identifying signs of economic crimes of SUE RM "Lisma"
Conclusion
List of sources used
Applications
Introduction
Financial statements are essentially the "face" of the firm. It is a system of generalized indicators that characterize the results of the financial and economic activities of the enterprise. Financial reporting data are the main sources of information for analyzing the financial condition of the enterprise.
Financial reporting is the most complete, fairly objective and reliable information base, based on which you can form an opinion about the property and financial position of the enterprise. Since, in accordance with the legislation, financial statements are an open source of information, and its composition, content and presentation forms are unified in terms of the main parameters, it becomes possible to develop standard methods for reading and analyzing it. Any such methodology is designed to answer a number of standard questions: What property did the company start working with in the reporting period?
in what conditions did his work proceed during the reporting period?
What financial results has the company achieved over the past period?
How has the property status of the enterprise changed by the end of the reporting period?
What are the prospects for the financial and economic activities of the enterprise?
There can be quite a lot of similar questions, but they are grouped into three large blocks, reflecting, respectively, the aspects of investment, financing and the regularity of the formation of the current financial result:
where the financial resources allocated to the enterprise are invested, i.e. how optimal is its investment policy;
where the required financial resources are obtained from and how optimal the structure of the sources of the enterprise is;
how rhythmically and stably the enterprise works in terms of receiving regular income, i.e. what are the financial results for the reporting period in comparison with the established targets and in dynamics.
Despite the fact that any analysis technique is creative in nature, in terms of its focus and main parameters, it must certainly obey a certain logic. In other words, even before the start of analytical calculations, it is advisable to have an idea about the sequence of counting procedures, their information support, and interconnection. Those. it is necessary to have a reasonable conviction that, having completed all the planned analytical procedures, it will be possible to assert that the goal set, and in this case, such a goal is to form an opinion and evidence-based conclusions about the property and financial position of the enterprise, has been achieved.
The logic of analytical procedures is predetermined by the following theses:
the analyst must know the main regulatory documents that regulate the preparation and presentation of reports, determine the content of its individual forms, sections, articles;
full-fledged analytical procedures are impossible; moreover, calculations can be meaningless if the analyst does not understand the economic content of reporting items and calculated indicators;
the complexity and logical completeness of the analysis are ensured by the allocation of sequentially performed interconnected procedures, which are based on the idea of identifying the economic potential of an enterprise and its change over time.
The main purpose of this work is to study the economic characteristics of the enterprise, reflecting the mechanism for compiling and presenting financial statements, considering the internal and external relations of an economic entity, identifying its financial position, solvency and profitability.
The objectives of this course work are:
to study the concept of financial reporting and the rules for its preparation;
conduct a financial analysis of the enterprise.
The object of the study is: SUE RM "Lisma".
The financial statements of SUE RM “Lisma” were used as an information base.
. Theoretical aspects of the analysis of indicators of the financial statements of the organization
.1 Financial reporting as an information basis for the analysis of the organization's activities
Accounting (financial) statements - a unified system of data on the property and financial position of the organization and on the result of its economic activity, compiled on the basis of accounting data in accordance with established forms. The financial statements include:
) balance sheet (OKUD 0710001);
) statement of financial results (OKUD 0710002);
) appendices to the balance sheet and income statement:
statement of changes in equity (OKUD 0710003);
) report on the intended use of the funds received (OKUD 0710006) - for public organizations (associations);
The organization must prepare financial statements for the month, quarter and year on an accrual basis from the beginning of the reporting year. At the same time, monthly and quarterly reporting is intermediate.
Financial statements should give a reliable and complete picture of the property and financial position of the organization, its changes, as well as the financial results of its activities. Accounting statements are considered reliable if they are formed and compiled on the basis of the rules established by regulatory acts on accounting of the Russian Federation.
When preparing financial statements, an organization must ensure the neutrality of the information contained in it, that is, it excludes the unilateral satisfaction of the interests of some groups of users of financial statements over others.
Data on numerical indicators in the reporting are given for at least two years - the reporting and preceding the reporting year (except for the report compiled for the first reporting year). If the data for the period preceding the reporting year are incomparable with the data for the reporting period, then the first of the named data is subject to adjustment based on the rules established by regulatory enactments.
Work on the analysis of financial statements must meet many requirements. The range of users includes various categories - from serious analysts to casual "amateurs". All of them are guided by a common goal to achieve their interests - to assess the financial condition of the organization according to financial statements. Financial reporting in Russia is of interest to two groups of external users.
Directly interested in the activities of the organization;
indirectly interested in it.
The first group includes the following users: the state, primarily in the form of tax authorities, which check the correctness of the preparation of reporting documents, the calculation of taxes, and determine the tax policy; existing and potential lenders using reporting to assess the feasibility of granting or extending a loan, determining lending conditions, strengthening credit, determining lending conditions, terms of loan repayment guarantees, assessing the credibility of the organization as a client; suppliers and buyers who determine the reliability of business relationships with this client; existing and potential owners of the organization's funds, who need to determine the increase or decrease in the share of own funds and evaluate the effectiveness of the use of resources by the management of the organization.
The second group of users of financial statements are those who are not directly interested in the activities of the enterprise. However, they need to study reporting in order to protect the interests of the first group of reporting users. This group includes: audit services that check the compliance of reporting data with the relevant rules in order to protect the interests of investors; financial advisors who use reporting to advise their clients on how to invest their capital in a particular company; legislatures, etc.
The internal users of the reporting include the top management of the organization, the general meeting of participants, who, according to the reporting data, determine the correctness of the investment decisions made and the effectiveness of the capital structure, carry out preliminary calculations of the financial indicators of the upcoming reporting periods.
1.2 The purpose, objectives and directions of the analysis of financial reporting indicators
Financial analysis is an assessment of the financial and economic activities of the organization in the past, present and future. Its purpose is to determine the state of the financial health of the organization, identify weaknesses, potential sources of problems in further work and identify strengths that the organization can rely on. When assessing the financial position of an organization, various economic entities interested in obtaining the most complete information about its activities resort to the help of financial analysis.
In a market economy, providing enterprises with economic independence, they face a number of problems that have not arisen before. One of them is a qualified choice of a partner in the domestic and foreign markets, since future cooperation depends on this. At the same time, the main source of information about the stability of the partner's financial position is financial statements.
Financial reporting is a system of information about the financial position, financial performance, changes in the financial position of the organization, necessary for a wide range of users to make management decisions.
The concept of "accounting statements" is broader than the concept of "financial statements". Accounting reports include on-farm information (reporting) intended for the management of the organization to perform the functions of planning, regulating production processes, and controlling.
Practice shows that the traditional accounting activity of reflecting business transactions in accounting registers alone cannot answer the needs of numerous users of business information. It is necessary that such information be transformed and processed in a certain way for decision-making purposes.
Analysis of financial statements is a set of analytical procedures based, as a rule, on publicly available information of a financial nature and designed to assess the state and efficiency of using the economic potential of the organization, as well as making management decisions regarding the optimization of its activities or participation in it.
The main features of the analysis of financial statements include:
general characteristics of the property and financial position of the enterprise;
priority of assessments: solvency, financial stability, profitability;
access to the results of the analysis of any users;
high level of reliability of the results of the analysis.
The point of analyzing financial statements, like any analytical method, is to serve as a logical means of evaluating and comparing information and creating new information that is more valuable than that represented by the original parameters taken separately.
For a comparative assessment and study of the development of the financial situation in the organization, it is necessary to have information on at least two or three time periods. However, the principle of comparability of databases must be observed.
The analysis is based on quarterly and annual reporting. It is advisable to carry out a preliminary analysis at the intra-economic level before reporting, when there is still the opportunity to change a number of balance sheet items. Based on the data of the final analysis of the financial and economic activities of the organization, almost all directions of the economic (including financial) policy of the organization are developed. Therefore, the effectiveness of management decisions depends on how well the analysis is carried out.
The financial condition of the enterprise characterizes the results of its work on a certain date. It can be stable, unstable and crisis. In this regard, the tasks of analyzing financial statements include:
assessment of the dynamics of changes in the property of the enterprise and the funds invested in it;
study of the legitimacy of changing the structure of property;
determination of the financial stability of the enterprise;
assessment of the effectiveness of financial and economic activities;
identifying the reasons for the deterioration of the financial condition of the enterprise and determining the main directions for its stabilization.
The subject of the analysis of financial statements is the financial results and financial condition of the analyzed enterprise at the time of the analysis, as well as the determination of its future potential, i.e. economic diagnostics of economic activity.
The main purpose of the analysis of financial statements is to assess the financial condition of the organization on the basis of reliable information, determine the financial result and financial stability of the organization, the liquidity of its balance sheet and solvency, assess the efficiency of capital use. The objectives of the analysis can be expanded depending on the needs of users of financial statements.
The economic nature of reporting items. Reporting contains dozens of indicators, many of which are complex. Of course, the decisive prerequisite for a qualitative analysis of the financial condition of a commercial organization is an understanding of the economic content of each article, its significance in the structure of the reporting form.
First, the logic of reporting is determined primarily by the need to give a detailed description of the economic and financial potential of the organization and the effectiveness of its use. The main reporting forms - the balance sheet and the income statement - reflect the two sides of the organization as a functioning socio-economic system: static and dynamic. Therefore, the absence of any of these forms in the annual report would significantly impoverish it, make it impossible to get a complete picture of the financial and property position of the organization, its profitability, and development prospects.
Balance restrictions. The balance sheet is the most informative form for analyzing and evaluating the financial condition of an enterprise. The ability to read the balance sheet makes it possible to:
The value of the balance sheet is so great that the analysis of the financial condition is often called the analysis of the balance sheet. The main areas of analysis for a real assessment of the financial condition:
Analysis of the financial condition for the short term is to calculate indicators for assessing the satisfaction of the balance sheet structure.
An analysis of the financial condition for the long term explores the structure of funds, the degree of dependence of the organization on investors and creditors.
The balance sheet reflects the status quo in the means of the organization, that is, it answers the question of what the organization is at the moment, but does not answer the question, as a result of which this situation has developed.
auditors are prompted to choose the right solution in the audit process, plan their audit, identify weaknesses in the accounting system and areas of possible intentional and unintentional errors in the client's external reporting;
analysts determine the direction of financial analysis.
In market conditions, the number of users of financial statements who are participants in market relations has significantly increased. Reporting data allow them to fairly objectively assess the financial results and financial condition of enterprises without resorting to information that is a trade secret. As a result of the analysis of the financial statements of the enterprise, the most important characteristics are determined that indicate its success or the threat of bankruptcy.
For management personnel, the analysis of financial statements makes it possible to identify reserves for increasing profitability and improving the efficiency of economic activity.
1.3 Structure and content of financial reporting forms and their analytical capabilities
financial statement balance sheet
The results of the financial and economic activities of the organization are of interest to various categories of analysts: management personnel, representatives of financial authorities, auditors, tax inspectors, employees of the banking system, creditors, etc. Evaluation of performance, as a rule, is carried out within the framework of financial analysis. The main information base of such an analysis is accounting (financial) reporting.
The methodology for analyzing financial statements is based on knowledge and understanding of:
the economic nature of reporting items;
restrictions inherent in the balance sheet and related reporting forms;
Reporting contains dozens of indicators, many of which are complex. Of course, the decisive prerequisite for a qualitative analysis of the financial condition of a commercial organization is an understanding of the economic content of each article, its significance in the structure of the reporting form.
Basic analytical relationships of financial statements. Reporting is a set of interrelated indicators. The essence of the relationship is the complementarity of reporting forms, their sections and articles. Two aspects must be highlighted here.
Secondly, many balance sheet items are complex. Therefore, a number of balance sheet indicators, the most significant for assessing the property and financial position of the organization, are deciphered in the accompanying reporting forms.
The balance sheet is the most informative form for analyzing and evaluating the financial condition of an enterprise. The ability to read the balance sheet makes it possible to:
obtain a significant amount of information about the enterprise;
determine the degree of security of the enterprise with its own working capital;
establish, due to which articles the amount of working capital has changed;
assess the overall financial condition even without calculating analytical indicators.
The value of the balance sheet is so great that the analysis of the financial condition is often called the analysis of the balance sheet.
To assess the real analytical capabilities, it is necessary to know the limitations of the information presented in the balance sheet:
The balance sheet is historical in nature: it records the results of business transactions that have taken shape at the time of its compilation.
The balance sheet reflects the status quo in the organization's funds, that is
answers the question of what the organization is at the moment, but does not answer the question, as a result of which this situation has developed.
One of the significant limitations of the balance sheet is the principle of using acquisition prices embedded in it. All fixed and current assets are valued at their current acquisition prices, which, in the context of inflation, rising prices, and low renewal of fixed assets, significantly distorts the real valuation of the property as a whole.
Thus, it is possible to formulate the role of financial reporting in financial analysis: different groups of users of this reporting achieve one common task - to analyze the financial condition of the enterprise and, on its basis, achieve the set goals:
managers get an idea of the place of their enterprise in the system of similar enterprises, the correctness of the chosen strategic course, comparative characteristics of the efficiency of resource use and decision-making on a wide variety of issues related to enterprise management;
auditors are prompted to choose the right solution in the audit process, plan their audit, identify weaknesses in the accounting system and areas of possible intentional and unintentional errors in the client's external reporting;
analysts determine the direction of financial analysis.
2. Analysis of financial statements of the organization
.1 Analysis of the indicators of the balance sheet of SUE RM "Lisma"
When analyzing financial and economic activities, the most general picture of the state of the enterprise is given by the analysis of such forms of financial statements as the balance sheet of the enterprise.
An analysis of these forms of financial statements in dynamics gives an indication of the change in the financial and economic condition of the enterprise over a certain period of time. To identify general trends in the development of the company and determine its prospective opportunities, it is advisable to compare the indicators of several balance sheets. For example, the balance sheet of SUE RM "Lisma" will be used
Vertical and horizontal analysis based on financial statements is advisable to carry out at the initial stage of the economic analysis of the enterprise. Very often, it can be viewed as an auxiliary stage, during which those aspects are identified that will require further in-depth and comprehensive analysis.
Absolute change = 2013-2014 (2.1)
Relative change = (2.2)
Horizontal analysis is an assessment of the change in balance sheet items at the end of the period compared to the beginning. The financial condition is considered stable if there is an increase in the currency (total) of the balance, but its increase due to the growth of inventories (210) and receivables (230, 240) is considered negative. Horizontal analysis is complemented by vertical analysis, which is a structural expression of balance, when lines 300 and 700 are taken as 100%. Table 2.1 - Horizontal and vertical analysis Name of indicatorHorizontal analysisVertical analysisAbsolute change in 2014, thousand rubles Relative Change in 2014,%. Share in the balance structure, % at the beginning of the period at the end of the period NON-CURRENT ASSETSIntangible assets-1592.1%0.0%0.0% Fixed assets3243664974.0%1.3%37.9% Deferred tax assets6347615.6%0.2%0.9%Other non-current assets12543442.2%0 .7%1.9%Total for section I3432413023.2%2.3%40.6%II. CURRENT ASSETSInventories5131101.1%89.3%53.4%Accounts receivable (Finnish investments)15497176.7%3, 9% 4.1% Cash - 912330.6% 2.5% 0.5% Other current assets - 362447.6% 1.3% 0.4% Total for section II13368102.6% 97.7% 59, 4% BALANCE 356609168.9% 100.0% 100.0% PASSIVEIII. CAPITAL AND RESERVES Authorized capital 100.0% 8.9% 5.3% Reserve capital 100.0% 0.6% 0.3% Retained earnings - 2062487.6% 32.2% 16.7% 4%41.7%22.3%IV. LONG-TERM LIABILITIES Borrowed funds3547380.0%40.6%Deferred tax liabilities4079115.6%5.0%3.5%Total for section IV3588171474.1%5.0%44.0%V. SHORT-TERM LIABILITIES Borrowed funds - 180997.8% 16.1% 9.3% Accounts payable 22875114.3% 30.9% 20.9% Estimated liabilities - 249392.1% 6.1% 3.3% Other liabilities - 16170.8 %0.1%0.0%Total for section V18416106.7%53.2%33.6%BALANCE356609168.9%100.0%100.0% Vertical analysis allows assessing the traditional nature of the balance sheet structure for an enterprise and does not take into account the impact of inflation. The conducted horizontal and vertical analysis showed that it is in an unstable financial condition, which is mainly due to the fact that a significant proportion of the sources of financing is occupied by long-term and short-term borrowed capital. Vertical and horizontal analysis gives a general idea of the financial policy of the enterprise for a certain period. A more detailed analysis of the financial and economic state of the enterprise involves the calculation and study of a whole system of financial and economic indicators generally accepted throughout the world and in Russia Horizontal and vertical analysis complement each other and are very valuable when comparing periods of activity that differ significantly in terms of economic conditions, price levels, and production volumes. In addition, vertical and horizontal analysis allows comparison with a benchmark (for example, the data of the most financially successful period) and analyze the performance of several enterprises. .2 Analysis of indicators of other forms of financial statements of SUE RM "Lisma"
Meaning financial analysis - in assessing and forecasting the financial condition of an enterprise according to accounting and reporting data. The main tasks of financial analysis: assessment of the financial condition of the enterprise; determination of the influence of factors on the identified deviations in terms of indicators; forecasting the financial condition of the enterprise; substantiation and preparation of management decisions to improve the financial condition of the enterprise. Analysis of the property potential of the organization. Analysis of the structure of the organization's property and its sources of formation. The concept of "property of the organization" means fixed and current assets, as well as other values, the value of which is reflected in the balance sheet of the organization. An analysis of the stability of the financial condition on a particular date allows you to find out how correctly the company managed resources during the period preceding this date. The external manifestation of financial stability is solvency. Analysis of the balance sheet begins with a description of the total amount of property of the enterprise and the dynamics of its change during the period under review. The result of this part of the analysis should be the identification of sources of increase or decrease in the assets of the enterprise and the identification of asset items for which these changes occurred. Analysis of the composition and placement of assets is carried out according to the following form (Table 2.2). Table 2.2 - The composition of the property of the enterprise Asset201220132014Absolute change201320141. Non-current assets, including: 354983117427028-343241-4714 Current (current) assets, including: 518972505604439326-13368-66278 VAT901735307251-54873721Accounts receivable356992020225296-154975094Cash402213145126969123-449Other current assets3288691261623624-750Balance sheet8739555703694-35692 Table 2.3 - The structure of the property of the enterprise,% Asset201220132014Absolute change201320141. Non-current assets,40,622,271.57-38.35-0.7 including: Intangible assets0,020,040,050,020.01 Fixed assets37,881,291.53-36,590.24 Deferred tax assets0,870,240-0.63-0.24 Other non-current assets1,850 .14-0.712. Current (current) assets, including: 59.3897.7398.4338.350.7 VAT1,030,681.62-0.350.94 Accounts receivable4,083.95.67-0.181.77 Cash 0.462.542.842.080.3 Other current assets0.381.341.380.960.04 Balance10010010000 Table 2.4 - The growth rate of the property of the enterprise,% Assets201320141. Non-current assets, including: 3.3159.85 Intangible assets 108.52108.38 Fixed assets 2.01102.49 Deferred tax assets 16.240 Other non-current assets 22.6102. Current (current) assets, including:97.4286.89Inventories97.7784.92 VAT39.15205.41 Accounts receivable56.59125.22 Cash326.8396.58Other current assets210.2289.15Balance sheet59.286.28 For a manufacturing enterprise, the structure is considered optimal: 65% - stocks, 30% - receivables, 5% - cash. As can be seen from the table, the total value of the property in the reporting period was 446,354 thousand rubles. In the assets of the organization, the share of current assets is 98.43%, and non-current assets 1.57%. Thus, the largest share in the structure of total assets falls on current assets, which contributes to the acceleration of the turnover of the company's funds, i.e. the enterprise uses an intensive asset management policy. The share of fixed assets in the total assets structure for the reporting year amounted to 1.53%, which indicates that the company has a light asset structure, which indicates the mobility of property. Current assets of the enterprise are formed mainly at the expense of stocks and accounts receivable for a total of 420,468 thousand rubles. Attention should be paid to the reduction of the item of non-current assets in the overall structure of the balance sheet (-0.7%), which may indicate an acceleration in the turnover of current assets. The increase in the share of the value of fixed assets by +0.24% should be noted as a positive trend, as it is aimed at increasing the production potential of the enterprise. Since the property of the enterprise has decreased, we can talk about a decrease in solvency. The decrease in the share of deferred tax assets can be assessed as a positive trend. During the reporting period, working capital decreased by 66278 thousand rubles. or by 13.11%. This is due to the lagging growth rates of mobile assets compared to the growth rates of all total assets. This happened mainly due to a decrease in the cost of inventories and other current assets by 70,923 thousand rubles. During the analyzed period, the volume of receivables increased (by 5094 thousand rubles), which is a negative change and may be caused by problems associated with payment for products (works, services) of the enterprise, or the active provision of consumer credit to buyers, i.e. diversion of part of current assets and immobilization of part of working capital from the production process. Let's analyze the growth of receivables to the total value of current assets. Since the ratio of growth to current assets is less than 40%, this increase should not adversely affect the activities of the enterprise. The sharp increase in accounts receivable (+25.22%) makes it necessary to further in-depth analysis of their composition and structure according to analytical accounting data. The amount of cash decreased by 449 thousand rubles, or by 3.42%. Let us analyze the decrease in cash on accounts from the amount of working capital at the beginning of the period. Since the decrease turned out to be less than 10%, this change should not adversely affect the activities of the enterprise. When analyzing assets, a decline in the value of non-current assets by 4,714 thousand rubles, or 40.15% of their value in the previous period, is visible. This happened mainly due to a decrease in the cost of other non-current assets and deferred tax assets by 4896 thousand rubles. The growth rate of current assets outstrips the growth rate of non-current assets by 27.04%. This ratio characterizes the tendency to accelerate the turnover of current assets. The share of working capital in assets is more than 70%, so the asset management policy can be classified as an aggressive type. The economic means of the enterprise are formed at the expense of financial resources. Sources of education of economic funds distinguish: own funds (or own capital); borrowed funds; obligations. Table 2.5 - The composition of the sources of formation of the property of the enterprise Passive201220132014Absolute change201320141. Equity capital, including: 19514021576419359720624-22167 Authorized capital 4607346073294560-16617 Reserve capital 29462946294600 Retained earnings (uncovered loss) 14612116674516119520624-55502. Long-term liabilities, including:3849302611320566-358817-5547 borrowed funds35473800-3547380other long-term liabilities301922611320566-4079-55473. Short-term liabilities, including: 293885275469232191-18416-43278zaemnye sredstva8158383392553921809-28000kreditorskaya zadolzhennost182849159974148502-22875-11472dohody future periodov8418-414prochie-3820Valyuta balansa873955517346446354-356609-70992 Table 2.6 - The structure of the sources of formation of the property of the enterprise,% Passive201220132014Absolute change201320141. Equity capital, including: 22.3341.7143.3719.381.66 Authorized capital 5.278.916.63.64-2.31 Reserve capital 0.340.570.660.230.09 Long-term liabilities, including:44,045,054.61-38.99-0.44 borrowed funds40.5900-40.590other long-term liabilities3,455,054.611.6-0.443. Current liabilities, including: 33.6353.2552.0219.62-1.23 borrowed funds9.3316.1212.416.79-3.71 accounts payable20.9230.9233.27102.35 deferred income00000 other liabilities3.376.26.342.830, 14Balance currency10010010000 Table 2.7 - The growth rate of the sources of formation of the property of the enterprise,% Liabilities201320141. Equity capital, including: 110.5789.73 Authorized capital 10063.93 Reserve capital 100100 Retained earnings (uncovered loss) 114.1196.672. Long-term liabilities, including:6,7878.76 borrowed funds0 - other long-term liabilities86,4978,763. Current liabilities, including:93,7384.29 borrowed funds102,2266.42accounts payable87,4992.83deferred income50450other liabilities109,0188.1Balance sheet currency59,286.28 For a manufacturing enterprise, the following structure is considered optimal: capital and reserves - 40%, long-term liabilities - 20%, short-term liabilities - 40%. In the structure of equity, the main place is occupied by retained earnings and authorized capital (42.71%). The share of borrowed funds in the total sources of asset formation increased over the analyzed period. The value of the total borrowed funds of the enterprise amounted to 252,757 thousand rubles. (56.63% of total liabilities). An increase in borrowed funds of an enterprise leads to an increase in the degree of its financial risks and may adversely affect its financial stability. In the reporting year, the organization has deferred liabilities to the budget for income tax in the amount of 20,566 thousand rubles. (4.61%). There were no long-term credits and loans (financial liabilities) in the analyzed period. Positive signs include the fact that the current assets of the analyzed organization exceed short-term liabilities, which indicates the ability to repay debts to creditors. Comparison of equity and non-current assets made it possible to identify the organization's own working capital (186,569 thousand rubles), which also indicates sufficient financial stability of the enterprise. Equity capital decreased by 22167 thousand rubles. or by 10.27%, which negatively characterizes the dynamics of changes in the property status of the organization. This happened mainly due to a decrease in the value of the authorized capital and retained earnings by 22,167 thousand rubles. In the reporting period, the share of equity increased by 1.66%. Debt on short-term borrowed funds decreased by 28,000 thousand rubles. or by 33.58%. The share of borrowed short-term funds in the structure of liabilities in the reporting period decreased from 16.12% to 12.41%. The decrease in short-term borrowings was noted against the background of a decrease in accounts payable, the value of which decreased in the analyzed period by 11,472 thousand rubles. or by 7.17%. The share of accounts payable in the structure of liabilities increased from 30.92% to 33.27%. In addition, considering accounts payable, it should be noted that the company in the reporting year has a passive balance (accounts payable more than accounts receivable). Thus, the company finances its current activities at the expense of creditors. The amount of additional financing is 123,206 thousand rubles. Thus, despite the decrease in the company's own capital, there was a decrease in accounts payable. Paying attention to the cumulative change in the reserves of the enterprise and retained earnings, it can be noted that during the analyzed period their total value decreased by 5550 thousand rubles. and amounted to 164,141 thousand rubles, which in general can be called a negative trend, since a decrease in reserves, funds and retained earnings may indicate inefficient operation of the enterprise. Short-term loans and loans in liabilities account for less than 10%, so the liability management policy can be classified as a conservative type. 2.3 Analysis of financial results according to the statement of financial results of SUE RM "Lisma"
Let's analyze the efficiency of the enterprise under study. There is a variety of economic information about the activities of enterprises and many ways to analyze these activities. Financial analysis according to financial statements is called the classic method of analysis. On-farm financial analysis uses other system accounting data, data on the technical preparation of production, regulatory and planning information as a source of information. Let's start it with an overview of the results of the organization's activities, which are summarized in Table. 2.8. Table 2.8 - Horizontal and vertical analysis of the statement of financial results of SUE RM "Lisma" Name of indicator Horizontal analysis Absolute change in 2014, thousand rubles Relative change in 2014, % 029122.9% Profit (loss) from sales-34,053-216.0% Income from participation in other organizations Interest receivable253 Interest payable1 191117.1%Other income26 292216.2%Other expenses23 501251.0%Profit (loss) before tax-32 200-196.3% Current income tax incl. permanent tax liabilities (assets)-89769.0%Change in deferred tax liabilities-1 46873.5%Change in deferred tax assets5 116515.6%Other502150.1%Net profit (loss)-28,050-50.4% From Table. 2.8 shows that revenue for the study period increased. Profit from sales for the last year amounted to 23278 thousand rubles. During the analyzed period, the financial result from sales decreased significantly. It can be noted that the organization did not use the opportunity to account for general business expenses as conditionally fixed, including them monthly in the cost of production (work performed, services rendered). This led to the absence of the "Administrative expenses" indicator for the reporting period. A formal study of the correctness of the reflection in the Balance Sheet and the Profit and Loss Statement for the last reporting period of deferred tax assets and liabilities confirmed the interconnection of reporting indicators. Analysis of the profitability of the enterprise is presented in table. 2.9. Table 2.9 - Profitability analysis of SUE RM "Lisma" IndicatorIndicator valueChange in indicator as of 31.12.2015 to 31.12.2016 kop.%1. Return on sales by gross profit15,81914,118,72. Return on sales by EBIT39.27.6-8.2-51.63. Return on sales in terms of net profit 2.1-16.9-89.10.8 payment (ICR), coefficient-55.86.5-32.7-0.8 It can be seen that the organization made a profit, both from sales and, in general, from financial and economic activities, which led to the positive values of all three presented in Table. 2.9 indicators of profitability for the given period. However, there is a negative trend in the profitability of conventional activities. Further in table. 2.10 presents three main indicators characterizing the profitability of the use of capital invested in entrepreneurial activity. It can be seen that in 2014 each ruble of equity brought a net profit of 0.01 rubles. The decrease in return on equity for the entire analyzed period amounted to 18.9%. The return on equity for the last quarter has a value that does not correspond to the norm. Table 2.10 - Return on equity of SUE RM "Lisma" Profitability indicatorIndicator valueChange of the indicator as of December 31, 2015 to December 31, 2016 production assets44,621.7-22.9 Let's calculate the indicators of business activity (turnover). In table. 2.11 calculated the turnover rates of a number of assets that characterize the rate of return of funds advanced for business activities, as well as the turnover rate of accounts payable in settlements with suppliers and contractors. Table 2.11 - Indicators of business activity of SUE RM "Lisma" Indicator Wrapping Indicator Indicator Indicator Indicator 31.12.2015 On 12/31/2016Cefhymetries RotchkoeeffesTVTV Turnability of working capital2,2167179212.3-4 Recruitment of receivables 5,66,5625,9-3 Credit accountability6,556448.3-12 Credit Assets13613900,929 Asset turnover data for the reporting period indicate that the organization receives revenue equal to the sum of all available assets for 383 calendar days. It takes an average of 5 days to receive revenue equal to the average annual balance of inventories. Thus, the internal financial analysis of the selected enterprise included almost all recommended procedures: preliminary reading of accounting (financial) statements, horizontal and vertical analysis of statements, comparative analysis and the method of financial ratios. In the process of analysis, the financial position of the enterprise under study and the effectiveness of its activities were assessed. The calculated indicators of the financial stability of the organization and the liquidity of its property, the profitability and business activity of the company gave an idea of the SUE RM "Lisma" as a steadily developing enterprise that does not have problems with solvency and financial stability. At the final stage of the company's internal financial analysis, we will evaluate the key performance indicators and offer some recommendations for improving the company's financial policy. 2.4 Using the results of the analysis of financial reporting indicators in identifying signs of economic crimes Based on the results of the analysis, the main indicators of the financial position (as of the last day of the analyzed period) and the performance of the SUE RM "Lisma" were identified and grouped according to a qualitative characteristic, which are given below. From a very good side, the financial position of the organization is characterized by the following indicators: 1.Optimal share of equity (80%). 2.Net assets exceed the authorized capital, while during the analyzed period there was an increase in net assets. 3.The value of the coefficient of provision with own working capital of 0.55 is quite consistent with the normal one. .The current (total) liquidity ratio fully corresponds to the normal value. .Quick (intermediate) liquidity ratio fully corresponds to the normal value. .Fully corresponds to the normative value of the absolute liquidity ratio. .Leading increase in equity relative to the total change in the assets of the organization. .Absolute financial stability in terms of the surplus of own working capital. On the good side, the financial position and performance of the SUE RM "Lisma" characterize the following indicators: 1.Good ratio of assets in terms of liquidity and liabilities in terms of maturity. 2.The investment coverage ratio has a normal value (the share of equity and long-term liabilities in the total capital of SUE RM "Lisma" is 86%). .Net profit is sufficient. Let us now evaluate the performance indicators of the SUE RM "Lisma" having negative values and present possible ways to correct each of them. One of the problems of SUE RM "Lisma", as shown by the analysis, is the insufficient return on assets (0.8%). The concept of return on assets means profitability, return on assets. This indicator reflects the efficiency of the use of all property of the enterprise. A decrease in the return on assets indicates a falling demand for the company's products and an overaccumulation of assets. In the case of SUE RM “Lisma”, the return on assets indicator is most likely due to the pricing policy of the enterprise, rather than the level of costs for the production of services. According to the auditors of MARP CJSC (Remote Consulting portal), there are two main ways to increase the profitability of assets. First, given the low profitability of the production of services, it is necessary to ensure the acceleration of asset turnover. Secondly, in the conditions of the impossibility of further growth in prices for services, it is necessary to try to reduce the costs of providing services, that is, to increase their profitability. Thus, the low business activity of the enterprise is compensated. Over the past period, the company has found a significant negative dynamics of sales profitability. This became possible because the growth rate of costs outstrips the growth rate of revenue (according to Table 3.2.7, they are 26.2% and 15.1%, respectively). Among the possible reasons for this situation are, firstly, the fact that inflationary growth in costs outpaces revenue; secondly, price reduction; thirdly, changing the structure of the sales assortment; Fourth, the increase in cost rates. But in any case, this is an unfavorable trend. It would be most logical to propose to SUE RM "Lisma" to increase the profitability of sales by raising prices or reducing costs. But, as L.V. Dontsov, "these methods are temporary and not reliable enough in the current conditions." The solution to this problem should lie deeper: to correct the situation, it is necessary to analyze pricing issues at the enterprise, assortment policy, and the existing cost control system. In this case, it is necessary not only to cover as many customers as possible, but to increase the production of exactly those services that are in demand on the market. Such a revision of the assortment policy is a serious step and is impossible without preliminary marketing research, painstaking study of market conditions. The organization did not use the opportunity to account for general business expenses as semi-fixed, including them monthly in the cost of production (work performed, services rendered). This led to the absence of the indicator "Administrative expenses" for the reporting period c. 1. 2. . Conclusion
A modern enterprise must have the flexibility of production, i.e. be able to quickly rebuild both their own organizational structure and the structure of products. All this requires the management of the enterprise to make quick and economical decisions, which is impossible without providing the subjects of management with relevant information. It is obvious that not only the prosperity of a business, but also its very existence often depends on the correct management decisions adequate to the market environment. The management of enterprises without prompt and reliable information is at risk of making erroneous management decisions. The task of presenting the necessary information is solved by internal operational management accounting. The internal financial analysis of the selected enterprise included almost all recommended procedures: preliminary reading of accounting (financial) statements, horizontal and vertical analysis of statements, comparative analysis and the method of financial ratios. In the process of analysis, the financial position of the enterprise under study and the effectiveness of its activities were assessed. The calculated indicators of the financial stability of the organization and the liquidity of its property, the profitability and business activity of the company gave an idea of the SUE RM "Lisma" as a steadily developing enterprise that does not have problems with solvency and financial stability. At the final stage of the company's internal financial analysis, we assessed the key performance indicators of the company and, summing up all the recommendations, identified some priority areas for improving the financial condition of the company: 1.It is necessary to ensure the acceleration of asset turnover. 2.Reduce the cost of providing services, compensating for the low business activity of the enterprise. .Reconsider the formation of the cost price with a view to including administrative expenses in its structure. .Revise the pricing system, assortment policy, and the existing cost control system. The internal reporting of the SUE RM "Lisma" enterprise is compiled by responsibility centers. Based on the material presented in this paper, we can draw the following conclusions on the organization of internal cost accounting by responsibility centers: responsibility centers are parts of the organization that can be identified in management accounting in order to control their activities, each responsibility center carries out any activity, and also spends resources on this activity; the purpose of accounting by responsibility centers is to summarize data on the costs and results of activities for each responsibility center so that the resulting deviations can be attributed to a specific person, a system that is based on the preparation of reports on budget execution, where actual and planned data are compared, is accounting by responsibility centers; when creating responsibility centers, management should take into account the organizational and production structure of the enterprise; in cost centers, only the implementation of costs takes place, respectively, they report exclusively for costs; Profit centers are accountable for both the costs incurred and the revenues they generate for the business. List of sources used
1. Regulations on accounting Accounting policy of organizations PBU1 / 98 (Order of the Ministry of Finance of the Russian Federation dated 09.12.98 No. 60-N). 2. Astakhov V.P. Annual financial statements for 20014 and organization of accounting in 2014. M - 2014 Baryshnikov N.P. Accounting, reporting and taxation; volume 1.2, M., 2011; 4. Bakaev A.S., Bezrukikh P.S., Vrublevsky N.D. Accounting: Textbook. - M.: Accounting, 2010. - 719 p. 5. Bakaev A.S. Comments on the new Chart of Accounts. - M.: IPB-BINFA, 2013. - 423 p. 6. Bezrukikh P.S. Accounting. - M.: Accounting, 2014 Belobzhetsky I.A. Accounting and internal audit. - M.: Accounting, 2013 Bogachenko V.M., Kirillova N.A. Accounting: Textbook. - 4th ed., revised. and additional - Rostov-on-Don: Phoenix, 2014.- 480. Burganova A.G. Accounting at enterprises of various organizational and legal norms, St. Petersburg, 2011 Accounting and reporting, normative document, methodological recommendations for accounting, drawing up periodic reports. M; 2015; Accounting: Express course. M., "Infra-M" 2013 Veshunova N.L., Fomina L.F. Tutorial on accounting and tax accounting. - M.: Prospekt, 2012. - 464 p. Gulyaeva A.F. Accounting statements of organizations; - Samara, 2011. Textbook. Davydov V.A. Accounting for used profits and carrying out the reformation of the balance sheet. (Accounting 2014 No. 4). Ivashkie B.N. Accounting in trade. M 2010 Ivoshkevich B.B., Garifullin K.M. Accounting in industry. Tutorial. Kazan 2011 Kamyshanov P.N. A practical guide to accounting. M; Economy 2013 Kozlova E.N., Parashutin N.V., Babchenko T.N., Galanina E.N. Accounting M: 2014 Kozhinov V.Ya. Bookkeeping Tutorial. M.: INFRA-M, 2014 Kamyshanov P.I. A practical guide to accounting. M., Economics 2011 21. Kondrakov N.P. Plan and correspondence of accounts. M.: Grossbukh, 2011
Financial statement analysis is the process by which we evaluate the past and current financial position and performance of an organization.
The main source of information about the activities of the enterprise is the accounting (financial) statements. The most information for analysis is contained in the Balance Sheet (form No. 1) and Profit and Loss Statement (form No. 2), for a more detailed analysis for the financial year, data from all appendices to the balance sheet can be used.
Analysis of financial statements is a tool for identifying problems in the management of financial and economic activities, for choosing directions for investing capital and forecasting individual indicators.
Analysis of form No. 1 "Balance sheet"
Of all the forms of financial reporting, the most informative form for analyzing and evaluating the financial condition of an organization is the balance sheet (form No. 1). The balance sheet characterizes in monetary terms the financial position of the organization as of the reporting date. The balance sheet assets are built in order of increasing liquidity of funds, that is, in direct proportion to the rate of transformation of these assets in the process of economic turnover into a monetary form.
Balance liquidity- the degree of coverage of the obligations of the organization by its assets, which reflects the rate of return to circulation of money invested in various types of property and liabilities. The degree of liquidity depends on how long this process takes.
Analysis of the liquidity of the balance sheet consists in comparing the funds for the asset, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liability obligations , grouped by maturities and arranged in ascending order of maturities.
Depending on the degree of liquidity, that is, the rate of conversion into cash, The assets of the organization are divided into the following groups:
- A1. Most liquid assets — these include all items of the company's cash and short-term financial investments (securities). This group is calculated as follows:
A1 = Cash + Short-term financial investments.
- A2. Quick Selling Assets — receivables for which payments are expected within 12 months after the reporting date.
A2 = Short-term receivables.
- A3. Slow selling assets — articles of section II of the balance sheet asset, including stocks, VAT, receivables (payments for which are expected in more than 12 months after the reporting date) and other current assets.
A3 = Stocks + Long-term receivables + VAT + other current assets.
- A4. Difficult-to-sell assets are items in section I of the balance sheet assets, non-current assets.
A 4 = Non-current assets.
Liabilities of the balance are grouped according to the degree of urgency of their payment:
- P1. Most urgent obligations — To it includes accounts payable.
P1 = Accounts payable.
- P2. These are short term liabilities. these are short-term borrowed funds, debts to participants for the payment of income, other short-term liabilities.
P2 = Short-term borrowed funds + debt to participants in the payment of income + other short-term liabilities.
- P3. Long-term liabilities - these are balance sheet items related to sections IV and V, that is, long-term loans and borrowings, as well as deferred income, reserves for future expenses and payments.
P3 \u003d Long-term obligations + Deferred income + Reserves for future expenses and payments.
- P4. Permanent liabilities or sustainable - these are the articles of section III of the balance sheet "Capital and reserves".
P4 = Capital and reserves (own capital of the organization) .
To determine the liquidity of the balance sheet, one should compare the results of the above groups for assets and liabilities.
The balance sheet is liquid if the following inequalities are observed: A1 ≥ P1; A2 ≥ P2; A3 ≥ P3; A4 ≤ P4.
For liquidity analysis, a table is compiled. 2, in the columns of which data are recorded at the beginning and end of the reporting period of the balance sheet (Table 1).
Table 1.Dynamics and structure of assets and liabilities of Asia LLC, thousand rubles
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Indicator |
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Fixed assets |
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including: fixed assets |
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Construction in progress |
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long-term financial investments |
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Deferred tax assets |
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current assets |
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including: |
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accounts receivable (up to 12 months) |
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short-term financial investments |
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cash |
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Total assets |
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Equity |
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long term duties |
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Borrowed funds |
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Accounts payable |
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Reserves for future expenses |
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Total liabilities |
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Table 2. Analysis of the liquidity of the balance sheet of Asia LLC, thousand rubles.
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Indicator group |
Indicator group |
Payment surplus (+), deficiency (-) |
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Most liquid assets (A1) |
Most urgent liabilities (P1) |
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Marketable assets (A2) |
Current liabilities (P2) |
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Slow selling assets (A3) |
Long-term liabilities (P3) |
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Hard-to-sell assets (A4) |
Permanent liabilities (P4) |
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According to the results of Table. 3, the liquidity of the balance sheet of Asia LLC can be characterized as insufficient, since the conditions of the first inequality at the beginning and end of the period are not met, which indicates the inability of the enterprise to pay off the most urgent obligations.
Table 3. Liquidity analysis of the balance sheet of Asia LLC
Comparison of the results of the first group of assets and liabilities, that is, A1 and P1 (up to three months), reflects the ratio of current payments and receipts. Comparison of the results of the second group of assets and liabilities, that is, A2 and P2 (terms from three to six months), shows a trend of increasing or decreasing current liquidity in the near future. Comparison of the totals for assets and liabilities for the third and fourth groups reflects the ratio of payments and receipts in a relatively distant future. The analysis carried out according to this scheme quite fully represents the financial condition in terms of the possibilities of timely settlements.
The most important analytical ratios that can be used for a general assessment of the liquidity of an organization are the following:
- absolute liquidity ratio (K al);
- quick (intermediate) liquidity ratio (K bl);
- coefficient of current (total) liquidity (K tl);
- net current assets.
Liquidity indicators of the organization are given in table. 4.
Table 4. Liquidity indicators of the organization
|
Coefficient |
Calculation formula |
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Absolute liquidity ratio (K al) |
Most liquid assets (Cash + Short-term financial investments) / Short-term liabilities |
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Quick (intermediate) liquidity ratio (K bl) |
(Cash + Short-term financial investments + Short-term accounts receivable) / Current liabilities |
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Current (general) liquidity ratio (K tl) |
Total amount of liquid working capital / Current liabilities (Short-term loans and borrowings + Accounts payable) |
|
Net current assets (capital) (N oa) |
Total amount of liquid working capital - Current liabilities |
Absolute liquidity ratio is the most stringent criterion for the liquidity of the organization; shows what part of short-term liabilities can be repaid immediately, if necessary, at the expense of available cash and marketable securities.
The normal value of the absolute liquidity ratio ranges from 0.2-0.3. This value of the absolute liquidity ratio means that 20-30% of short-term liabilities can be repaid by the company immediately at the expense of cash.
Example
According to Form No. 1, it is known that line 260 = 1973 thousand rubles. at the beginning of the period, 3474 thousand rubles. at the end of the period. Page 250 = 6810 thousand rubles at the end of the period. Line 690 at the beginning of the period amounted to 14,597 thousand rubles, at the end of the period - 11,089 thousand rubles.
K al (beginning) = 1973 / 14,597 = 0.135
K al (at the end) \u003d (3474 + 6810) / 11,089 \u003d 0.927
The dynamics of the absolute liquidity ratio is positive and amounted to 0.792 (0.927 - 0.135). However, the indicators of absolute liquidity correspond to the standard only at the end of the period. Thus, at the beginning of the period, for 1 ruble of debt, the enterprise could quickly pay 13.5 kopecks, at the end of the period - 92.7 kopecks.
Quick (intermediate) liquidity ratio characterizes that part of current liabilities that can be repaid not only from cash, but also from expected receipts for shipped products, work performed or services rendered.
Current (total) liquidity ratio shows whether the organization has enough funds that can be used for short-term liabilities within a certain period.
It should be noted that in accordance with the official document - Methodological provisions for assessing the financial condition of enterprises and establishing an unsatisfactory balance sheet structure, approved by order of the Federal Financial Markets Service of January 23, 2001 No. 16, in order to recognize the balance sheet structure as satisfactory, the current liquidity ratio must be equal to or greater than 2.0. But in real conditions, the enterprise may well be in a stable state with a current liquidity ratio of 1.3-1.5.
Net current assets (capital) necessary to maintain the financial stability of the organization, since the excess of working capital over short-term liabilities means that the organization not only can pay off its short-term liabilities, but also has financial resources to expand its activities in the future. The presence of working capital serves as a positive indicator for investors and lenders to invest in the organization.
The dynamics of solvency indicators is given in Table. 5.
Table 5. Dynamics of solvency indicators of Asia LLC
After analyzing the data in Table. 5 shows that the value of the absolute liquidity ratio at the beginning of the period is higher than the recommended value. This suggests that 42.0% of short-term liabilities will be repaid daily. By the end of the period, this ratio decreases to 0.10, which is below the recommended value, that is, the company will repay only 10% of short-term liabilities daily.
Thus, we can conclude that during the analyzed period there have been very significant changes in the ratio of current assets and short-term liabilities. So at the beginning of the past period, there is an excess of current assets over liabilities. The high values of almost all ratios suggest that at the end of the previous period the organization had sufficient funds to ensure the repayment of its obligations.
In the "Methodological recommendations for the development of the financial policy of the organization", approved by order No. 18 of the Ministry of Economy of the Russian Federation, the state of the enterprise is divided into two levels. These categories have significant differences. The first level includes indicators for which normative values are determined: indicators of solvency and financial stability.
Analyzing the dynamics of these indicators, one should pay attention to the trend of changes. If their value is below the normative or higher, then this should be considered as a deterioration in the characteristics of the analyzed organization.
The key to the stability of the enterprise is its financial stability, that is, such a state of finances that guarantees its constant solvency. Such an economic entity, at its own expense, covers the funds invested in assets, does not allow unjustified receivables and payables, and pays its obligations on time.
Financial stability- this is the ability of a business entity to function and develop, to maintain a balance of its assets and liabilities in a changing external and internal environment, which guarantees its constant solvency and investment attractiveness within the limits of an acceptable level of risk. Financial stability reflects the stability of the characteristics obtained in the analysis of the financial condition of the enterprise in the light of a long-term perspective, and is associated with the overall structure of finances and the dependence of the enterprise on creditors and investors.
The objective of financial stability analysis is to assess the degree of independence from borrowed sources of financing. This analysis allows you to find out how financially independent the organization is, whether the level of this independence is growing or decreasing, and whether the state of its assets and liabilities meets the objectives of its financial and economic activities.
The stability of the enterprise is influenced by various factors: the position of the organization in the market; production of cheap and popular products; its potential in business cooperation; degree of dependence on external creditors and investors; availability of solvent debtors; efficiency of business and financial transactions, etc.
Organizations refer to the main indicators characterizing financial stability (capital structure) (Table 6):
- capitalization ratio (K to);
- coefficient of financial independence (K unav);
- funding ratio (K fz);
- coefficient of financial stability (K fin. mouth).
Table 6. Indicators of financial stability
Capitalization ratio (the ratio of borrowed and own funds) shows what kind of funds the company has more - borrowed or own. It also shows how much borrowed funds the company attracted for 1 ruble of its own funds invested in assets. The smaller the value of the coefficient, the more stable the financial position of the organization.
Financial Independence Ratio(autonomy) shows the share of own funds in the total amount of funding sources. This ratio indicates how much an organization can reduce the amount of assets without prejudice to the interests of creditors. The higher the value of the coefficient, the more stable the financial position of the organization.
Funding ratio shows which part of the organization's activities is financed by its own, and which - by borrowed funds. If the value of the financing ratio is less than 1 (most of the property of the enterprise is formed from borrowed funds), this may indicate the danger of insolvency and often makes it difficult to obtain a loan.
Financial stability ratio shows what part of the asset is financed from sustainable sources, that is, the proportion of those sources of financing that the organization can use in its activities for a long time. If the value of the coefficient fluctuates between 80-90%, and has a positive trend, then the financial position of the organization is stable.
Indicators of financial stability of Asia LLC are given in Table. 7.
Table 7. Indicators of financial stability of Asia LLC, thousand rubles
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Indicator |
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Deviation |
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Capitalization ratio |
Not higher than 1.5 |
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Financial Independence Ratio |
Not more than 0.6 and not less than 0.4 |
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Funding ratio |
Not less than 0.7 |
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Financial stability ratio |
Not less than 0.6 |
Business activity- this is the performance of the enterprise in relation to the amount of advanced resources or the amount of their consumption in the production process. Business activity is manifested in the dynamism of the development of an economic entity, the achievement of its goals, as well as the speed of turnover of funds:
- the size of the annual turnover depends on the rate of turnover of funds;
- the relative value of conditionally fixed costs is associated with the size of turnover, and, consequently, with turnover: the faster the turnover, the less these costs fall on each turnover;
- acceleration of turnover at one stage or another of the circulation of funds entails an acceleration of turnover at other stages.
The business activity of the organization in the financial aspect is manifested, first of all, in the speed of turnover of its funds. Analysis of business activity is to study the levels and dynamics of various financial turnover ratios.
Acceleration of turnover reduces the need for funds or allows for additional output.
As a result of the acceleration of turnover, the material elements of working capital are released, less stocks of raw materials, materials, fuel, work in progress, etc. are required, and, consequently, the monetary resources previously invested in these stocks and backlogs are also released. The increase in the number of revolutions is achieved by reducing the production time and the circulation time. To reduce production time, it is necessary to improve technology, mechanize and automate labor. The reduction of circulation time is achieved through the development of specialization and cooperation, the acceleration of transportation, document circulation and settlements.
The main indicators of turnover are given in table. eight.
Table 8. Indicators of business activity (turnover)
|
Coefficient |
Calculation formula |
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|
Total capital turnover ratio (turnover) |
Page 010 (f. 2)_/ p. 190 + p. 290 (f. 1) |
Sales proceeds / Average annual value of assets |
|
Working capital turnover ratio (turnover) |
page 010 (f. 2) / page 290 (f. 1) |
Sales proceeds / Average annual value of current assets |
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Return on assets (turnover) |
page 010 (f. 2) / p. 120 (f. 1) |
Sales proceeds / Average cost of fixed assets |
|
Return on equity (turnover) |
page 010 (f. 2) / p. 490 (f. 1) |
Sales proceeds / Average cost of equity |
Total capital turnover ratio reflects the rate of turnover (number of turnovers per period) of the entire capital of the organization. An increase in the total capital turnover ratio means an acceleration in the circulation of the organization's funds or inflationary growth, and a decrease means a slowdown in the circulation of the organization's funds.
Working capital turnover ratio shows the rate of turnover of all working capital of the organization (both material and monetary).
return on assets- the ratio of the amount of proceeds from the sale to the average cost of fixed assets during the year (that is, how much income from the sale was able to "squeeze" out of fixed assets).
The growth of capital productivity indicates an increase in the efficiency of the use of fixed assets and is regarded as a positive trend. It can be achieved through an increase in sales proceeds or a decrease in the residual value of fixed assets. At the same time, fixed assets, due to their depreciation, constantly reduce their value, but the increase in capital productivity, obtained solely as a result of depreciation of fixed assets, cannot be considered a positive trend. A temporary decrease in the rate of return on assets may be caused by the commissioning of new production facilities, expensive restoration of fixed assets through major repairs or modernization, which should subsequently lead to both an increase in revenue (net) and an additional increase in the rate of return on assets.
Return on equity ratio shows the rate of turnover of equity (how many rubles of revenue account for 1 ruble of invested equity).
This is the most common characteristic used in the analysis of business activity. An increase in this indicator with a relatively stable value of the equity capital indicator is a positive trend, indicating the activity of the enterprise in the sales markets, and a decrease indicates either problems with implementation or an increase in the share of equity capital, which is used insufficiently efficiently in the analyzed period of time.
Analysis of Form No. 2 “Profit and Loss Statement”
Profit and Loss Statement is the most important source of information for analyzing the profitability of the enterprise, the profitability of production, determining the amount of net profit remaining at the disposal of the enterprise, and other indicators.
Profitability- one of the main cost qualitative indicators of production efficiency at the enterprise, characterizing the level of return on costs and the degree of funds in the process of production and sale of products (works, services).
The main profitability indicators can be grouped into the following groups:
1. Product profitability indicators. Calculated on the basis of proceeds from the sale of products (performance of work, provision of services) and production and sales costs:
- profitability of sales;
- profitability of the main activity (return on costs).
2. Indicators of profitability of property and its parts:
- profitability of all capital (assets);
- profitability of fixed assets and other non-current assets.
3. Indicators of return on capital employed. Calculated on the basis of invested capital:
- return on equity;
- return on permanent capital.
It should be noted that in countries with developed market relations, usually every year the chamber of commerce, industry associations or the government publishes information on the "normal" values of profitability indicators. Comparison of their indicators with their allowable values allows us to draw a conclusion about the state of the financial position of the enterprise. In Russia, this practice is not yet available, so a single basis for comparison is information on the value of indicators in previous years.
Table 9. Indicators characterizing profitability (profitability)
|
Coefficient |
Calculation formula |
|
|
Profitability of sales |
page 050 (f. 2) / page 010 (f. 2) × 100% |
Sales Profit / Sales Revenue × 100% |
|
Net profit |
page 190 (f. 2) / page 010 (f. 2) × 100% |
Net profit / Sales revenue × 100% |
|
Economic profitability |
page 190 (f. 2) / page 300 (f. 1) × 100% |
Net Income / Average Asset Value × 100% |
|
Return on equity |
p. 190 (f. 2) / p. 490 (f. 1) × 100% |
Net income / Average cost of equity × 100% |
|
Return on permanent capital |
line 190 (form 2) / (line 490 + line 590 (form 1)) × 100% |
Net Income / (Average Value of Equity + Average Value of Long-Term Liabilities) × 100% |
Profitability of sales reflects the share of profit in each ruble of sales proceeds. In foreign practice, this indicator is called the profit margin (commercial margin).
One of the synthetic indicators of the economic activity of the organization as a whole is the return on assets, which is commonly called economic profitability. This is the most general indicator that answers the question of how much profit an economic entity receives per 1 ruble of its property. The amount of dividends on shares in joint-stock companies, in particular, depends on its level.
In the indicator of return on assets, the result of the current activity of the analyzed period (profit) is compared with the organization's fixed and current assets (assets). With the help of the same assets, the organization will make a profit in subsequent periods of activity. Profit is mainly (almost 98%) the result of the sale of products (works, services). Sales proceeds is an indicator directly related to the value of assets: it consists of the natural volume and sales prices, while the natural volume of production and sales is determined by the value of the property.
Return on equity shows how many units of net profit each unit invested by the owner of the organization earned.
Return on permanent capital shows the effectiveness of the use of capital invested in the activities of the organization for a long time.
Thus, the system for analyzing the financial statements of organizations is based on an integrated approach to the analysis of indicators of their financial and economic activities, reflecting the availability, placement and use of financial resources of an enterprise, organization.
The methodology for analyzing the financial condition of economic entities includes:
- analysis of the profitability of the economic activity of an enterprise, organization;
- analysis of the financial stability of the organization;
- analysis of business activity of the organization;
- analysis of liquidity and market stability of the organization.
The analysis of the organization's financial statements is carried out by comparing its indicators for different reporting periods and recommended standard values and comparing organizations belonging to the same groups (by industry, types of products, number of employees, etc.).