Theoretical aspects of a comprehensive assessment of the financial condition of enterprises. Comprehensive assessment of the financial and economic condition

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

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

The main purpose of this course work is to substantiate the principles and methods of analysis of the financial and economic condition of domestic enterprises.

Accordingly to the goal in the course work, the following are solved tasks:

· Research of the economic essence of such a concept as "the financial condition of the enterprise";

· Determination of the role of the financial condition in the efficiency of the economic activity of the enterprise;

· A comprehensive assessment of the financial condition of an operating domestic enterprise;

The subject of research the models are used as diagnostics of the financial and economic condition of domestic enterprises.

Research object is the diagnosis of the financial and economic condition of JSC "ChMP".

The course work consists of three chapters, which sequentially investigate the problem posed.

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

1.1. Preliminary assessment of the financial condition of the enterprise

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

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

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

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

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

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

In operational activities, financial analysis is used to:

· Assessing the financial condition of the company;

· Establishment of restrictions in the formation of plans and budgets. For example, you can limit the company's liquidity (indicate that it must be at least a certain level), inventory turnover, the ratio of equity to borrowed funds, the cost of raising capital, etc. In many companies there is a practice of setting limits for branches and subsidiaries based on indicators such as profitability, cost of production, return on investment, etc .;

· Assessing the predicted and achieved results of activities.

The analysis begins with an overview of the key performance indicators of the enterprise. The following issues should be considered during this review:

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

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

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

1.2. Methodology for the analysis of financial and economic condition

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

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

Its information support is of great importance for the analysis. This is due to the fact that in accordance with the Law of the Russian Federation "On Informatization and Protection of Information", an enterprise may not provide information containing commercial secrets. But usually for making many decisions by potential partners of the firm, it is sufficient to conduct an express analysis of financial and economic activities. Even for a detailed analysis of financial and economic activities, information constituting a commercial secret is often not required. To conduct a general detailed analysis of the financial and economic activities of the enterprise, information is required on the established forms of financial statements, namely:

· Form No. 1 Balance sheet

· Form No. 2 Profit and loss statement

· Form No. 3 Statement of capital movement

· Form No. 4 Cash flow statement

· Form No. 5 Appendix to the balance sheet

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

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

At the first stage, a decision is made on the feasibility of analyzing the financial statements and their readiness for reading is checked. The task of the expediency of the analysis allows you to solve the familiarization with the auditor's report. There are two main types of audit reports: standard and non-standard. The standard auditor's report is a unified summarized document containing a positive assessment of the audit firm on the reliability of the information presented in the report and its compliance with the applicable regulatory documents. In this case, the analysis is advisable and possible, since the reporting in all material aspects objectively reflects the financial and economic activities of the enterprise.

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

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

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

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

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

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

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

1.3 Indicators of financial condition

The analysis of the financial and economic condition of the enterprise consists in general of the following main components:

· Analysis of property status;

· Analysis of liquidity;

· Analysis of financial stability;

· Analysis of business activity;

· Analysis of profitability.

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

The analysis of the property status consists of the following components:

Analysis of assets and liabilities of the balance sheet

Analysis of indicators of property status

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

When assessing the dynamics of property, the state of all property is traced as part of immobilized assets (section I of the balance sheet) and mobile assets (section II of the balance sheet - stocks, receivables, other current assets) at the beginning and end of the analyzed period, as well as the structure of their growth (decrease).

The analysis of indicators of property status consists in the calculation and analysis of the following main indicators:

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

· This indicator gives a generalized cost estimate of the assets on the balance sheet of the enterprise;

· The share of the active part of fixed assets.

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

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

Renewal ratio - shows how much of the existing fixed assets at the end of the period are new fixed assets.

Retirement rate - shows what part of fixed assets retired from economic circulation during the reporting period due to deterioration reasons.

The analysis of the company's liquidity is based on the calculation of the following indicators:

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

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

Quick ratio... By semantic purpose, the indicator is similar to the current liquidity ratio; however, it is calculated for a narrower range of current assets, when the least liquid part of them - production inventories - is excluded from the calculation. The logic of such an exclusion consists not only in a significantly lower liquidity of stocks, but, more importantly, in the fact that the money that can be raised in the event of the forced sale of production stocks may be significantly lower than the cost of acquiring them. In particular, in a market economy, a typical situation is when, upon liquidation of an enterprise, 40% or less of the book value of stocks is gained. Western literature provides an approximate lower value of the indicator - 1, but this estimate is also conditional. In addition, when analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that caused its change.

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

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

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

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

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

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

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

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

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

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

Business activity group indicators characterize the results and efficiency of the current main production activity.

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

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

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

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

2. COMPREHENSIVE EVALUATION OF FINANCIAL AND ECONOMIC ACTIVITIES OF THE ENTERPRISE ON THE EXAMPLE OF JSC "CHMK" "

2.1. Assessment of balance sheet structure

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

Positive:

· There is an increase in the property of the enterprise for the period 2000-2001. - by 26808 thousand rubles. or 30.87%;

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

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

Negative:

For the period 2001-2002 there was a decrease in the property of the enterprise by 2878 thousand rubles. or 2.53%;

· The decrease was mainly due to the reduction of current assets by 5466 thousand rubles. or 12.67% and reserves for 16,414 thousand rubles. or 58.72%;

For the period 2000-2001 there is a decrease in the company's equity capital by 3049 thousand rubles. or 3.91%;

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

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

· There is an increase in the accounts payable of the enterprise by 14,842 thousand rubles. or 179.75% (2000-2001) and 2736 thousand rubles. or 11.84% in 2001-2002

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

2.2. Assessment of solvency and liquidity

One of the most important characteristics of a company's financial condition is its financial strength. Financial strength characterizes the degree of financial independence of the enterprise in relation to the ownership of its property and its use.

Four types of financial strength are possible in accordance with the security of reserves with possible financing options.

1. Absolute durability- to ensure stocks (Z) own circulating assets are sufficient; the company's solvency is guaranteed: WITH.

2. Normal durability- to ensure stocks, in addition to own circulating assets, long-term loans and loans are attracted; solvency guaranteed: WITH.

3. Unstable financial condition- short-term credits and loans are attracted to secure stocks in addition to own circulating assets and long-term credits and loans; solvency is violated, but it is possible to renew it: WITH.

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

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

Table 2.5

Analysis of financial strength for ChMK OJSC

Index

Equity
Non-current assets
Own working capital (р.1-р.2)
long term duties
Availability of own and long-term sources of reserves coverage (р.3 + р.4)
Short-term loans and borrowings
The total size of the main sources of coverage of reserves (р.5 + р.6)

Excess or shortage of own working capital (р.3-р.8)
Excess or shortage of own funds and long-term loans and borrowings (p.5-p.8)
Excess or shortage of the main sources of coverage of reserves (rivers 7-r.8)
Financial strength type	absolute	crisis	absolute

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

Table 2.2 shows the calculation of financial strength indicators.

Table 2.2

Analysis of indicators of financial strength of OJSC "ChMK"

	Index	Formula for calculation

	Maneuverability of working capital	Stocks / Working capital
	Financial independence (autonomy) ratio	Equity / Liabilities
	Financial stability ratio	Debt capital / Liabilities
	Financial strength ratio	Equity + long-term liabilities / Liabilities

Let us consider in more detail the indicators given in Table 2.2. So, the Indicator maneuverability of working capital characterizes a part of stocks in own circulating assets. The direction of positive changes in this indicator is a decrease. In this case, at first there is a strong decrease, therefore, an increase in the indicator to 5.56. Such "leaps" are very negatively reflected in the work of the enterprise.

Financial independence ratio characterizes the ability of an enterprise to fulfill external obligations at the expense of its own assets. Its standard value must be greater than or equal to 0.5. As we can see, during the analyzed period, this indicator is large of the standard value, which indicates the financial independence of the enterprise.
Financial stability ratio shows the ability to provide debt with own funds. The excess of own funds over loans indicates the financial stability of the enterprise. The standard value of the indicator should be more than one. In our case, its value indicates the high financial stability of the enterprise.

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

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

Table 2.3

Analysis of the liquidity of OJSC "ChMK"

	Index	for calculation

	Coverage ratio	Current assets / Current liabilities
	Accounts payable to accounts receivable ratio	Receivables / Accounts payable
	Absolute liquidity ratio	Cash / Current liabilities

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

Accounts payable to accounts receivable ratio shows the company's ability to settle accounts with creditors at the expense of debtors throughout the year. The recommended value of this indicator is 1. For ChMK, this indicator approaches the normative only in 2002.

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

2.3. Analysis of the financial results of the enterprise

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

Table 2.4

Analysis of financial results of OJSC "ChMK"

Index	Changes over the period
Index	thousand roubles. (column 1-column 2)	% (column 3: column 2) * 100

Net income (proceeds) from product sales
Cost of products sold
Gross profit from sales
Administrative costs
Sales costs
Other operating costs
Cost of goods sold, taking into account costs
Profit from sales
Other income
Operating profit
Income from equity participation
Profit from ordinary activities
Income tax
Net profit

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

2.4. Business activity analysis

Consider the indicators of business activity of the enterprise in the analyzed period (see table. 2.5).

Table 2.5

Indicators of business activity of OJSC "ChMK"

	Index	for calculation

	Return on assets	Net proceeds / Fixed production assets
	Working capital turnover ratio (turnover)	Net proceeds / Working capital
	The period of one turnover of working capital (days)	/ Turnover ratio. turnover. funds
	Inventory turnover ratio (turnover)	Cost price / Average stocks
	Period of one inventory turnover (days)	/ Coef. rev. stocks
	Accounts payable period (days)	Average accounts payable * 360 / Cost of sales

Let's consider each of the above indicators separately:

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

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

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

4. indicators of the period of repayment of receivables and payables indicate that the company uses a substantially free loan from its own creditors for much more time than it lends itself (free of charge) to other companies.

2.5. Bankruptcy Probability Assessment

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

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

However, only in the twentieth century, financial and economic indicators began to be widely used, and not only for predicting bankruptcy, as such, but also for predicting various financial difficulties.

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

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

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

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

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

Let's calculate the Taffler index for ChMK OJSC:

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

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

2.6. Break-even estimate

All costs of the enterprise can be divided into two parts: variable costs (production), which vary in proportion to the volume of production, and fixed costs (periodic), which, as a rule, remain stable when the volume of output changes. The proceeds from the sale of products minus the cost in the volume of production variable costs is the marginal income, which is an important parameter in the assessment of management decisions.

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

Fixed costs include administrative and management expenses, depreciation charges, sales and sales expenses, market research expenses, and other general management, selling and general expenses.

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

Let's assess the break-even point for ChMK OJSC. For calculations, we take the following data:

Revenue = 434678 rubles.

Fixed costs = 55104 rubles.

Variable costs = 14,313 rubles.

· Volume of sales = 10,000 pcs.

· Selling price = 43.47 rubles.

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

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

Let's calculate the variable costs per unit of production:

14313/10000 = 1.43 (rub.)

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

Determine the break-even point graphically (Fig.2.1)

Rice. 2.1 Break-even point of JSC "ChMK"

If we draw a perpendicular from the point of intersection of the revenue and full cost graphs, we get that the break-even level under these conditions is 1311 pcs. From the calculations performed, it can be concluded that the investigated enterprise is profitable.

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

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

The situation with the cost of production is not clear, in 2002 it decreased by more than 20%, but it is not clear why. The volume of sales of products fell, although due to a decrease in the cost price, the company received more net profit in the reporting period.

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

CONCLUSION

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

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

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

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

· It is necessary to bring the indicators of quick liquidity to the standard values, this can be done by increasing the funds on the company's current account.

LIST OF USED LITERATURE

1. Blank I.A. Fundamentals of Financial Management. - Kiev: Publishing house "Nika-Center", 1999

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

3. Bocharov V.V. Financial modeling. Textbook - SPb .: Peter, 2000.

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

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

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

7. Dyagterenko V.G. Basics of logistics and marketing. - Rostov-on-Don: Expert Bureau, M .: Gardarika, 1996.120 p.

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

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

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

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

12. Kovalev V.V. The financial analysis. M .: Finance and statistics, 2001. - 512s.

14. Kozlova OI Assessment of the creditworthiness of the enterprise. M .: JSC "ARGO", 1999 p. 274.

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

16. Nerushin Yu.M. Commercial logistics. M.: Banks and stock exchanges, UNITI, 1997 .-- 271p.

17. Makaryan E.K. , Gerasimenko G.L. The financial analysis. M .: PRIOR, 1999 p. 319.

18. International financial reporting standards. - M .: Askeri-Assa, 1999 p. 120.

19. Muravyov A.I. The theory of economic analysis. M .: Finance and statistics, 1998, p. 495.

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

- collection and analytical processing of initial information for the estimated period of time;

- substantiation of the system of indicators and their classification;

- classification (ranking) of enterprises by rating.

To the first group included the most generalized and important indicators for assessing the profitability (profitability) of the economic activity of the enterprise. In the general case, profitability indicators are the ratio of profit to the cost of certain funds (property) of the enterprise involved in making a profit.

To the second group included indicators for assessing the effectiveness of enterprise management. Management efficiency is determined by the ratio of profit to the entire turnover of the enterprise - revenue. In this case, indicators are used: profit from all sales, profit from product sales, net profit, gross (balance) profit.

To the third group included indicators for assessing the business activity of the enterprise. (turnover ratios, turnover period)

Into the fourth group included indicators for assessing the liquidity and financial stability of the enterprise.

Indicators are calculated either at the end of the period, or to the averaged values of balance sheet items (the sum of data at the beginning and end of the period, divided by two).

The calculation of the final indicator of the rating assessment is based on a comparison of enterprises for each indicator of financial condition with a conditional reference enterprise that has the best results for all compared indicators. Thus, the basis for obtaining a rating assessment of the financial condition of an enterprise is not the subjective assumptions of experts, but the highest results that have developed in real market competition from the entire set of compared objects.

1. Initial data are presented in the form of a matrix, i.e. tables, where the numbers of indicators are written in rows (i = 1, 2, 3 ... n), and in columns - numbers of enterprises (j = 1, 2, 3 ... m).

2. For each indicator, the maximum value is found and entered into the column of the conditional reference enterprise.

3. The initial indicators of the matrix are standardized in relation to the corresponding indicator of the reference enterprise according to the formula:

where x ij - standardized indicators of the financial condition of the i-th enterprise;

and ij is the value of an indicator of a definite enterprise;

max and ij is the maximum value (value of the reference enterprise).

4. For each analyzed enterprise, the value of its rating is determined by the formula:

5. Enterprises are ranked in descending order of rating score.

The highest rating is given to the company with the minimum value of the comparative assessment obtained according to the formula for calculating the rating score Rj. To apply this algorithm in practice, no restrictions are imposed on the number of compared indicators and enterprises.

In the first case, the initial indicators are calculated according to the balance sheet and financial statements at the end of the period. Accordingly, the rating of the enterprise is determined at the end of the year.

In the second case, the initial indicators are calculated as growth rates: the data at the end of the period are divided by the value of the corresponding indicator at the beginning of the period, or the average value of the indicator of the reporting period is divided by the average value of the corresponding indicator of the previous period (or other comparison base). Thus, we get not only an assessment of the current financial condition of the enterprise for a certain date, but also an assessment of its efforts and capabilities to change this state in dynamics, for the future. Such an assessment serves as a reliable measure of the growth of an enterprise's competitiveness in a given field of activity. It also determines a more efficient level of use of production and financial resources.

This technique is based on an integrated, multidimensional approach to assessing such a complex phenomenon as the financial condition of an enterprise;

To obtain a rating, a flexible computational algorithm is used that implements the capabilities of a mathematical model for a comparative comprehensive assessment of the production and economic activity of an enterprise, which has been extensively tested in practice.

2. Due to the lack of normative values for a number of indicators, the rating score is determined not by full, but by partial use of indicators.

3. The importance of individual indicators, reflected in percentages in the total population, which is 100%, is not supported by appropriate evidence and calculations, that is, it is tentative in nature. Some methods do not indicate a specific number of indicators for each group, on the basis of which the rating is based. (if you sum up the positive values of a small number of indicators, then you can get a low, not true level of integral assessment, and using a larger number (more than 10) indicators that have a positive value, you can go beyond 100%, which seems absurd.

Of great importance in the process of managing financial resources is a preliminary analysis of their availability, placement and efficiency of use. Financial resources are reflected in the liability of the balance sheet and are grouped according to two main criteria: by legal affiliation and the duration of the funds in circulation (maturity).

In accordance with the first sign, financial resources are divided into equity and borrowed, in accordance with the second, - into permanent capital (equity capital plus long-term liabilities) and short-term liabilities.

Own sources of formation of property are located in III and partly V sections (p. 640 "Deferred income") of the balance sheet.

Debt sources, depending on the maturity, are divided into long-term, located in Section IV, and short-term, located in Section V of the balance sheet.

Financial resources are located in the liabilities of the balance sheet in accordance with the principle of increasing the degree of withdrawal of resources: from less to more withdrawn. Financial resources used for a long time in the process of asset formation form permanent capital. The value of the analysis of financial resources lies in the formation of an economically sound assessment of the dynamics and structure of sources of financing assets and identifying opportunities for their improvement. The analysis of the dynamics, composition and structure of financial resources is carried out using the techniques of horizontal, vertical and trend analysis and is presented in Table 9.

Table 7 - Analysis of the dynamics, composition and structure of financial resources of the SEC "Solontsy" for 2009 - 2011.

Indicators				Deviation 2011 to 2010	Growth rate, %
amount, thousand rubles	specific weight,%	amount, thousand rubles	specific weight,%	amount, thousand rubles	specific weight,%	amount, thousand rubles	specific weight,%

1. Financial resources, total, including:
2. Equity capital
3. Debt capital, from it
3.1. long term duties
3.2. Permanent capital

Analysis of the dynamics of financial resources showed a decrease in the sources of formation of the organization's property by 38.9% compared to 2009 and an increase by 9.6% compared to 2010.

The main changes in 2011 were due to an increase in debt capital by 11.8% and an increase in equity capital by 4.7%. During the specified period, there was a decrease in long-term liabilities by 24.5% and an increase in permanent capital by 40.5%.

In general, the structure of financial resources is assessed as irrational, since the share of the organization's equity capital at the end of 2011 is less than 50%. The share of permanent capital in the total amount of financial sources is higher than the share of equity capital, which characterizes an enterprise as an organization actively developing its material and technical base, incl. at the expense of long-term borrowed sources. However, there is a pronounced negative dynamics of a sharp decrease in the share of own funds in the sources of capital formation and an increase in the share of borrowed funds.

The effectiveness of the use of financial resources of an economic entity is largely determined by the degree of expediency of their placement by types of assets, which predetermines the need to study the structure of property from the standpoint of its optimality.

The results of the analysis are presented in Table 10.

Table 8 - Analysis of the dynamics, composition and structure of the property of the SEC "Solontsy" for 2009 - 2011.

Indicators				Deviation 2011 to 2010	Growth rate, %
amount, thousand rubles	specific weight,%	amount, thousand rubles	specific weight,%	amount, thousand rubles	specific weight,%	amount, thousand rubles	specific weight,%
1. Assets, total, including:
2. Non-current assets, of which
2.1. Intangible assets
2.2 Fixed assets and other non-current assets
3. Current assets, of which
3.1 Stocks (VAT included)
3.2 Accounts receivable due within 12 months
3.3 Most liquid assets (cash and KFV)

In the structure of the organization's property, the largest share in 2009 falls on current assets - 68.7%. This is typical only for organizations engaged in trading activities, but not production. So, in 2009, 62.5% of the sources of property formation were invested in reserves. This is irrational for a manufacturing enterprise, therefore, in 2010, there was a redistribution of sources of property between circulating and non-circulating assets. As a result, the share of current assets in 2010 amounted to 39.0%, and in 2011 - 45.1% of the total value of the company's property.

The largest share in the structure of current assets still falls on inventories (40.7% at the end of 2011). Moreover, there is an outlined, albeit slightly expressed, positive trend towards the growth of more liquid assets in dynamics. However, this does not apply to funds. Here there is a tendency towards a decrease in their share in the composition of assets, which is assessed negatively.

The share of non-current assets increased from 31.3% in 2009 to 54.9% in 2011. This fact is assessed positively, since it means an increase in long-term investment, which contributes to an increase in production and profits in the long term.

The financial stability of an organization in general is determined by the level of assets provision with sources of their formation and is characterized by a system of absolute and relative indicators.

A stable financial position is characterized by the following features:

1) the timeliness of settlements for obligations;

2) sufficient equity participation of equity capital in the formation of property (at least 50%) and circulating assets (at least 30%).

The ratio of equity and debt capital largely determines the level of financial stability of the organization. Financial stability is also determined by the ratio of the value of the main element of current assets - stocks and costs and the value of own and borrowed sources of their formation.

The following main stages of the analysis of financial stability can be distinguished:

Identification of the type of financial stability on the basis of absolute indicators of surplus (lack) of normal sources of formation of inventories;

Concretization of the assessment of financial stability based on the study of the values and dynamics of relative indicators of financial stability - financial ratios;

Calculation of the influence of factors on the change in the main indicators of financial stability.

Absolute indicators of financial stability are indicators of surplus or lack of sources for the formation of inventories, which are determined by comparing the amount of stocks and costs and normal sources of funds for their formation.

The following are distinguished as normal sources of formation of stocks and costs:

1) own circulating assets;

2) short-term loans and borrowings (excluding overdue debts);

3) accounts payable of a commodity nature (excluding overdue debts): debts to suppliers, advances received.

The total amount of normal sources of formation of reserves and costs (NIFZ) is determined by the formula:

NIFZ = SOS + KKZ + KZTH-PrD

where SOS - own circulating assets; KKZ - short-term loans and borrowings; KZTH - trade payables; PD - overdue debts.

The lack of normal sources for the formation of stocks and costs means that a certain part of the latter is formed at the expense of non-commodity accounts payable (wage arrears, social insurance, to the budget and other creditors), or non-payments.

Depending on the ratio of the values of tangible circulating assets and the sources of their formation, the following types of financial stability are conventionally distinguished:

Absolute financial stability

where З - stocks.

Normal financial stability

SOS<З?НИФЗ

Precarious financial position

A critical financial situation is characterized by a situation when, in addition to the previous inequality, the organization has arrears, i.e. part of the inventory is formed due to non-payments.

The calculation of indicators of surplus (lack) of sources of formation of stocks and costs is carried out in table. eleven.

Table 9 - Identification of the level of financial stability based on absolute indicators of surplus (lack) of sources of formation of reserves and costs of SEC "Solontsy" for 2009 - 2011.

Indicators	In fact, in 2009.	In fact, for 2010.	In fact, for 2011.	Absolute deviation	Growth rate, %


1. Inventories (MPZ)
2. Equity capital
3. Long-term liabilities
4. Non-current assets

6. Surplus (shortage) of own working capital for the formation of inventories
7. Surplus (shortage) of own working capital and long-term sources for the formation of inventories
8. Short-term loans and borrowed funds
9. The total value of the normal sources of formation of stocks and costs
10. Surplus of normal sources of formation of the MPZ

According to the results of the analysis, it was revealed that the type of financial stability of the organization at the end of 2009 is normal, since the value of tangible current assets is less than the value of the normal sources of formation of stocks and costs, i.e. there is a surplus of normal sources of formation of stocks and costs.

However, in 2010 and 2011, the situation changed dramatically in a negative direction. The type of financial situation is a crisis, since there are not enough normal sources of formation to cover the inventories and for this it is necessary to use accounts payable, which is permissible only in the case of non-overdue accounts payable of a commodity nature.

The calculation of absolute indicators of financial stability is complemented by the analysis of relative indicators - ratios. Financial stability ratios are calculated by the ratio of the values of individual items of liabilities and assets of the balance sheet and allow to deepen the assessment of financial stability, given on the basis of indicators of surplus (shortage) of the main sources of formation of reserves and costs, as well as to study other aspects that characterize the financial stability of the organization (Table 12) ...

Table 10 - Analysis of the relative indicators of financial stability of the SKPK "Solontsy" for 2009 - 2011.

Indicators	In fact, in 2009.	In fact, for 2010.	In fact, for 2011.	Absolute deviation	Growth rate, %


1. Total asset value
2. Equity capital
3. Long-term liabilities
4. Non-current assets
5. Own working capital
6. Current assets, of which
6.1 Inventories
7. Coefficient of autonomy
8. Coefficient of provision of stocks with own circulating assets
9. Ratio of maneuverability of equity capital

Characterizing the level of financial stability, it should be noted that the autonomy ratio at the end of 2011 decreased by 0.078 compared to 2010 and by 0.570 compared to 2009, and amounted to 0.300. This means that only 30.0% of the property is formed at its own expense, with an optimal value of at least 50%. Consequently, there is an acute shortage of equity capital in the organization.

The value of the ratio of the provision of stocks with own circulating assets at the end of 2011 has a negative value. This means that a significant part of the company's reserves is acquired from borrowed sources.

The equity capital flexibility ratio at the end of 2010 and 2011 also has a negative value.

Thus, we can conclude that at the end of 2011 the enterprise had a financial crisis.

The assessment of the solvency and liquidity of the organization allows us to characterize the possibilities of timely settlement of short-term liabilities and is carried out on the basis of the characteristics of the liquidity of current (circulating) assets.

The liquidity of an asset is its ability to transform into cash. The degree of liquidity of an asset is determined by the length of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of this asset. The liquidity of the organization as a whole is determined by the presence of its circulating assets in an amount theoretically sufficient to repay short-term obligations, albeit in violation of the terms of payments provided for by contracts.

The analysis of balance sheet liquidity consists in comparing funds for an asset, grouped according to their degree of liquidity and arranged in descending order, with liabilities for liabilities, grouped by maturity and arranged in ascending order.

According to the degree of liquidity, assets are divided into the following groups:

A1 (the most liquid assets) - cash on hand and on the current account, as well as short-term financial investments;

A2 (quick assets) - accounts receivable and other current assets;

A3 (slow-moving assets) - stocks and costs, VAT;

A4 (hard-to-sell assets) - non-current assets.

Balance sheet liabilities are grouped according to the urgency of their payment:

P1 (most urgent liabilities) - accounts payable;

P2 (short-term liabilities) - short-term loans and borrowed funds, debts to participants in the payment of income, other short-term liabilities;

P3 (long-term liabilities) - long-term loans and borrowed funds;

P4 (permanent liabilities) - section "Capital and reserves", as well as p. 640, p. 650 section "Current liabilities".

Analysis of balance sheet liquidity by comparing the corresponding groups of assets and liabilities is presented in table. 13.

Table 11 - Assessment of balance sheet liquidity

		Surplus / lack of assets to meet liabilities


The most liquid assets - A1 (lines 250 + 260)	Most urgent obligations - P1 (line 620)
Quickly realizable assets-A2 (line 240)	Short-term liabilities - P2 (line 610)
Slowly traded assets - A3 (line 210 + 220 + 140)	Long-term liabilities - P3 (p. 510)
Hard-to-sell assets - A4 (lines 190-140 + 230)	Permanent liabilities - P4 (p. 490 + 630 ++ 640 + 650)

By comparing the results of the above groups for asset and liability, balance sheet liquidity is determined. The balance is considered absolutely liquid if there are ratios:

A1? P1; A2? P2; A3? P3; A4? P4

We do not observe this ratio, both for 2010 and 2011. Consequently, the balance sheet is not liquid.

We will assess the company's solvency in Table 14.

Table 12 - Assessment of the company's solvency

Indicators			Normative value
Initial data, thousand rubles
1. Total current assets (290)
2. Quick-selling assets (240)
3. Most liquid assets (250 + 260)
4. Most urgent commitments (620)
5. Short-term liabilities (610 + 660)
Estimated indicators
Current liquidity ratio (line 1 / (line 4 + line 5))
Critical rating rate (p. 2 + p. 3) / (p. 4 + p. 5))
Absolute liquidity ratio (line 3 / (line 4 + line 5))

Conclusion: According to the calculated indicators, none of the indicators reaches the standard value due to an unreasonable sharp increase in accounts payable with a simultaneous decrease in absolutely liquid assets and the total amount of current assets as a whole. These changes should be assessed negatively.

Financial analysis is a part of general analysis, which consists of two interrelated sections: financial and management analysis. The division of analysis into financial and managerial is due to the existing in practice division of the accounting system. However, this division is arbitrary.

Financial analysis is divided into external and internal. External financial analysis is based on published reports, and internal analysis is based on the entire system of available information about the activities of the enterprise. From this point of view, external financial analysis is an integral part of internal analysis, the scope and possibilities of which are broader.

The subjects of external analysis are business owners, investors, creditors, administration, government agencies, etc.

The subjects of internal financial analysis are the administration of the enterprise, owners, auditors, consultants.

The main difference between internal and external financial analysis lies in the variety of goals and objectives solved by different subjects of the analysis. The process of conducting financial analysis depends on the goal. It can be used for a preliminary check when choosing an investment direction, when considering options for a merger of enterprises, when assessing the activities of the company's management, when predicting financial results, when justifying and issuing loans, when identifying problems in managing production activities, etc.

The variety of goals of financial analysis determines the specifics of the tasks solved by the most important users of information.

Financial analysis is carried out, first of all, by the administration of the enterprise, which is engaged in current activities, is responsible for long-term development prospects, for production efficiency, profitability of the enterprise for the short and long term, efficiency in the use of capital, labor and other types of resources. The administration's interest in the financial condition affects all areas of the enterprise. In the course of the analysis, the administration uses all reliable information, all means and methods to exercise control over the activities of the enterprise. One of these methods is financial analysis. Financial analysis covers changes in trends in key figures and key relationships. It is based on continuous monitoring of significant relationships and timely detection of deficiencies that appear as a result of ongoing changes. When conducting financial analysis, the administration sets the following goals:

- development of the strategy and tactics of the enterprise;
- rational organization of the financial activities of the enterprise;
- improving the efficiency of resource management.

Lenders are one of the most important subjects of financial analysis. Lenders provide the company with funds in various forms and on different terms. A commercial loan is carried out by suppliers upon the shipment of products or the provision of services for the period of waiting for payment, determined by the terms of trade. The lender usually does not receive interest on a commercial loan and may provide a discount for payments earlier than the due date. The creditor's remuneration takes the form of the number of transactions made and the possible profit derived from them. The supplier is interested in the financial condition of the partner and, first of all, his solvency, i.e. the ability to timely pay for the delivered products, services rendered.

Enterprises also receive short-term and long-term loans from banks, on terms of repayment, urgency and payment. The fee for using the loan is in the form of interest. If the company works well and has a strong financial position, the creditor's claims are limited to a fixed rate of interest. If the company finds itself in unfavorable conditions, not only the remuneration for the loan provided, but also the amount of the principal debt may be exposed to the risk of non-repayment. This circumstance forces the lender to analyze the possibility of providing a loan. At the same time, banks set themselves the following goals:

- to determine the reasons for the enterprise's need for additional funds;
- find out from what sources the company will receive funds for interest payments and debt repayment;
- find out how the administration has met the needs for short and long term funding in the past, what it plans for the future.

The financial condition of the enterprise is the most important characteristic of the economic activity of the enterprise in the external environment. It determines the competitiveness of an enterprise, its potential in business cooperation, assesses the extent to which the economic interests of the enterprise itself and its partners are guaranteed.

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

The main tasks of financial analysis are:

- an objective assessment of the composition and use of the company's financial resources;
- determination of factors and causes of the achieved state;
- identification, measurement and mobilization of reserves for improving the financial condition and increasing the efficiency of economic activity;
- preparation and justification of the adopted management decisions in the field of finance.

The main characteristics (indicators) of the financial condition of the enterprise are:

- property assessment and financing structure;
- assessment of financial stability;
- assessment of solvency and liquidity;
- assessment of the profitability of sales and property.

The financial condition of the enterprise is characterized by a system of indicators reflecting the availability, placement and use of its financial resources. The calculation and analysis of indicators is carried out according to the balance sheet of the enterprise in a certain sequence.

The financial condition is understood as the sufficient financial security of the enterprise with financial resources necessary for the normal functioning of the enterprise and the timely settlement of the enterprise with its counterparties. The expression of the financial condition is the existing structure of the enterprise's funds.

In the process of circulation, there is a continuous change in the structure of the enterprise's funds and their sources, defined as the ratio between the elements of the property and the elements of the capital that forms it. Finding the optimal balance between all the elements of capital and the sources of its financing is one of the most difficult tasks of financial management.

The structure of the company's funds is formed as a proportion between the value of fixed assets and other non-current assets, inventories and costs, cash, settlements with debtors and other current assets. The structure of sources of property of an enterprise is the proportion between the value of sources of own funds, long-term loans and borrowings, short-term loans and borrowings, settlements with creditors and other short-term liabilities. Each of the listed aggregates, respectively, has its own structure, determined by smaller elements.

The ratio of the structure of the enterprise's funds and the structure of the sources of their formation at each fixed point in time sets the financial state of the enterprise, determining the degree of stability of which is one of the most important tasks of financial analysis. Operations carried out in the course of the financial and economic circulation and constituting the content of the processes of supply, production, sales, etc., continuously change the financial condition of the enterprise.

Basically, in the theory of financial analysis, financial condition is defined as stable or unstable. An unstable financial condition leads to negative consequences, both in financial activities and in production and investment.

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