Let's look at the 12 main ratios of financial analysis of an enterprise. Due to their wide variety, it is often difficult to understand which ones are basic and which are not. Therefore, I tried to highlight the main indicators that fully describe the financial and economic activities of the enterprise.

In the activity of an enterprise, its two properties always collide: its solvency and its efficiency. If the solvency of the enterprise increases, then efficiency decreases. One can observe an inverse relationship between them. Both solvency and operational efficiency can be described by coefficients. You can focus on these two groups of coefficients, however, it is better to split them in half. Thus, the Solvency group is divided into Liquidity and Financial Stability, and the Enterprise Efficiency group is divided into Profitability and Business Activity.

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

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

The table below shows the division into groups.

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

Top 3 liquidity ratios

Let's start with the golden three of liquidity ratios. These three ratios provide a complete understanding of the liquidity of the enterprise. This includes three coefficients:

1. Current ratio,
2. Absolute liquidity ratio,
3. Quick ratio.

Who uses liquidity ratios?

The most popular among all ratios, it is used primarily by investors in assessing the liquidity of an enterprise.

Interesting for suppliers. It shows the company’s ability to pay its counterparties-suppliers.

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

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

Top 3 financial stability ratios

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

1. Autonomy coefficient,
2. Capitalization rate,
3. Provision ratio of own working capital.

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

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

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

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

Top 3 profitability ratios

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

This group of indicators includes three coefficients:

1. Return on assets (ROA),
2. Return on equity (ROE),
3. Return on Sales (ROS).

Who uses financial stability ratios?

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

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

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

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

Top 3 business activity ratios

Let's move on to consider the three most important coefficients of business activity (turnover). The difference between this group of coefficients and the group of Profitability coefficients is that they show the non-financial efficiency of the enterprise.

This group of indicators includes three coefficients:

1. Accounts receivable turnover ratio,
2. Accounts payable turnover ratio,
3. Inventory turnover ratio.

Who uses business activity ratios?

Used by the CEO, commercial director, head of sales, sales managers, financial director and financial managers. The coefficient shows how effectively the interaction between our enterprise and our counterparties is structured.

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

Can be used by commercial director, head of sales department and sales managers. It determines the efficiency of inventory management in an enterprise.

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

Summary

Let's summarize the top 12 ratios for the financial analysis of an enterprise. Conventionally, we have identified 4 groups of enterprise performance indicators: Liquidity, Financial stability, Profitability, Business activity. In each group, we have identified the top 3 most important financial ratios. The resulting 12 indicators fully reflect all financial and economic activities of the enterprise. It is with their calculation that financial analysis should begin. A calculation formula is provided for each coefficient, so you will not have any difficulties calculating it for your enterprise.

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 an enterprise is accounting (financial) statements. The Balance Sheet (Form No. 1) and the Profit and Loss Statement (Form No. 2) contain the most information for analysis; for a more detailed analysis of 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 managing financial and economic activities, for selecting areas 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 assessing 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 asset is built in order of increasing liquidity of funds, that is, in direct dependence on the rate of transformation of these assets in the process of economic turnover into monetary form.

Balance sheet liquidity— the degree to which an organization’s obligations are covered by its assets, which reflects the rate of return into circulation of money invested in various types of property and liabilities. The degree of liquidity depends on how long this process takes.

Balance sheet liquidity analysis consists of comparing funds by asset, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liability obligations , grouped by their maturity dates and arranged in ascending order of maturity.

Depending on the degree of liquidity, that is, the speed of conversion into cash, The organization's assets are divided into the following groups:

• A1. Most liquid assets — These include all items of the enterprise's cash assets and short-term financial investments (securities). This group is calculated as follows:

A1 = Cash + Short-term financial investments.

• A2. Quickly marketable assets — accounts receivable for which payments are expected within 12 months after the reporting date.

A2 = Short-term accounts receivable.

• A3. Slow moving assets — items in section II of the balance sheet assets, including inventories, VAT, accounts receivable (payments for which are expected more than 12 months after the reporting date) and other current assets.

A3 = Inventories + Long-term accounts receivable + VAT + other current assets.

• A4. Hard-to-sell assets - articles in section I assets of the balance sheet - non-current assets.

A 4 = Non-current assets.

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

• P1. Most urgent obligations — To This includes accounts payable.

P1 = Accounts payable.

• P2. These are short-term liabilities These are short-term borrowed funds, debt to participants for payment of income, and other short-term liabilities.

P2 = Short-term borrowed funds + debt to participants for 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 borrowed funds, as well as deferred income, reserves for future expenses and payments.

P3 = Long-term liabilities + Deferred income + Reserves for future expenses and payments.

• P4. Permanent liabilities or stable - these are articles in section III of the balance sheet “Capital and reserves”.

P4 = Capital and reserves (organization’s own capital) .

To determine the liquidity of the balance sheet, you should compare the results of the given groups for assets and liabilities.

The balance sheet is liquid if the following inequalities are met: A1 ≥ P1; A2 ≥ P2; A3 ≥ P3; A4 ≤ P4.

To analyze liquidity, 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.

Table 2. Analysis of liquidity of the balance sheet of Asia LLC, thousand rubles.

According to the results of table. 3, we can characterize the liquidity of the balance sheet of Asia LLC 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 its most urgent obligations.

Table 3. Analysis of liquidity of the balance sheet of Asia LLC

A comparison of the results of the first group for assets and liabilities, that is, A1 and P1 (terms up to three months), reflects the ratio of current payments and receipts. A comparison of the results of the second group for assets and liabilities, that is, A2 and P2 (terms from three to six months), shows a tendency for current liquidity to increase or decrease in the near future. A comparison of the totals for assets and liabilities for the third and fourth groups reflects the ratio of payments and receipts in the relatively distant future. The analysis carried out according to this scheme fairly fully represents the financial situation from the point of view of the possibilities of timely settlements.

The most important analytical ratios that can be used for a general assessment of an organization’s liquidity are the following:

• absolute liquidity ratio (K al);
• quick (intermediate) liquidity ratio (Kbl);
• current (total) liquidity ratio (K tl);
• net current assets.

The organization's liquidity indicators are given in table. 4.

Table 4. Liquidity indicators of the organization

Absolute liquidity ratio is the most stringent criterion for an organization’s liquidity; shows what part of short-term liabilities can, if necessary, be repaid immediately using 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 with 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.

Cal (at the beginning) = 1973 / 14,597 = 0.135

Cal (at the end) = (3474 + 6810) / 11,089 = 0.927

The dynamics of the absolute liquidity ratio is positive and amounted to 0.792 (0.927 - 0.135). However, absolute liquidity indicators 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 products shipped, work performed or services rendered.

Current (total) liquidity ratio shows whether the organization has enough funds that can be used for short-term obligations during 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 FSFR dated 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, an enterprise may well be in a stable state with a current liquidity ratio of 1.3-1.5.

Net current assets (capital) are necessary to maintain the financial stability of the organization, since the excess of current assets over short-term liabilities means that the organization not only can pay off its short-term obligations, but also has the financial resources to expand its activities in the future. The presence of working capital serves as a positive indicator for investors and creditors to invest in the organization.

The dynamics of solvency indicators are given in table. 5.

Table 5. Dynamics of solvency indicators of Asia LLC

After analyzing the data in table. Figure 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 enterprise will repay only 10% of short-term liabilities every day.

Thus, we can conclude that during the analyzed period there were very significant changes in the ratio of current assets and short-term liabilities. Thus, at the beginning of the past period, there is an excess of current assets over liabilities. High values ​​of almost all ratios suggest that at the end of the past period the organization had sufficient funds to ensure the repayment of its obligations.

In the “Methodological recommendations for the development of an organization’s financial policy”, 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 standard values ​​have been determined: indicators of solvency and financial stability.

When analyzing the dynamics of these indicators, you should pay attention to the trend of changes. If their value is lower than standard or higher, then this should be considered as a deterioration in the characteristics of the analyzed organization.

The key to the stability of an enterprise’s position 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 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, guaranteeing its constant solvency and investment attractiveness within the acceptable level of risk. Financial stability reflects the stability of the characteristics obtained by analyzing 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 task of financial stability analysis is to assess the degree of independence from borrowed sources of financing. This analysis allows you to find out how independent the organization is from a financial point of view, whether the level of this independence is increasing or decreasing and whether the state of its assets and liabilities meets the objectives of its financial and economic activities.

The sustainability of an enterprise is influenced by various factors: the organization’s position in the market; production of cheap and in-demand products; its potential in business cooperation; degree of dependence on external creditors and investors; availability of solvent debtors; efficiency of business and financial operations, etc.

The main indicators characterizing financial stability (capital structure) of organizations include (Table 6):

• capitalization ratio (K k);
• coefficient of financial independence (K nezav);
• financing coefficient (K fz);
• financial stability coefficient (K financial statement).

Table 6. Financial stability indicators

Capitalization rate (debt-to-equity ratio) shows which funds the enterprise has more - borrowed or own. It also shows how much borrowed funds the company attracted per 1 ruble of its own funds invested in assets. The lower the ratio, 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 harming the interests of creditors. The higher the ratio, the more stable the financial position of the organization.

Funding ratio shows which part of the organization’s activities is financed by its own funds, and which part by borrowed funds. If the financing ratio is less than 1 (most of the enterprise's property 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 share 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.

The financial stability indicators of Asia LLC are given in table. 7.

Table 7. Financial stability indicators of Asia LLC, thousand rubles.

Business activity- this is the performance of the enterprise relative to the amount of advanced resources or the amount of their consumption in the production process. Business activity is manifested in the dynamic development of an economic entity, its achievement of its goals, as well as the speed of turnover of funds:

• the size of the annual turnover depends on the speed of funds turnover;
• the size of the turnover, and, consequently, the turnover rate, is related to the relative amount of semi-fixed expenses: the faster the turnover, the less of these expenses there are for each turnover;
• acceleration of turnover at one or another stage of the circulation of funds entails acceleration of turnover at other stages.

The business activity of an organization in the financial aspect is manifested, first of all, in the speed of turnover of its funds. Analysis of business activity consists of studying the levels and dynamics of various financial turnover ratios.

Accelerating turnover reduces the need for funds or allows for additional production.

As a result of the acceleration of turnover, material elements of working capital are released, less reserves of raw materials, supplies, fuel, work in progress reserves, etc. are required, and therefore, monetary resources previously invested in these reserves and reserves are also released. The increase in the number of revolutions is achieved by reducing production time and circulation time. To reduce production time, it is necessary to improve technology, mechanize and automate labor. Reducing circulation time is achieved through the development of specialization and cooperation, speeding up transportation, document flow and settlements.

The main turnover indicators are given in table. 8.

Table 8. Indicators of business activity (turnover)

Total capital turnover ratio reflects the turnover rate (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 turnover rate of all working capital of the organization (both material and monetary).

Capital productivity— the ratio of the amount of proceeds from sales to the average cost of fixed assets during the year (that is, how much income from sales was able to be “squeezed” out of fixed assets).

An increase in capital productivity indicates an increase in the efficiency of use of fixed assets and is assessed as a positive trend. It can be achieved through an increase in sales revenue or a decrease in the residual value of fixed assets. At the same time, fixed assets, due to their wear and tear, constantly reduce their value, but the increase in capital productivity, obtained solely as a result of the wear and tear of fixed assets, cannot be considered a positive trend. A temporary decrease in the capital productivity indicator can 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 capital productivity indicator.

Return on equity capital ratio shows the rate of turnover of equity capital (how many rubles of revenue per 1 ruble of invested equity capital).

This is the most common characteristic used in analyzing 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 sales or an increase in the share of equity capital, which is not used effectively enough during the analyzed period of time.

Analysis of Form No. 2 “Profit and Loss Statement”

The profit and loss statement is the most important source of information for analyzing the profitability of an 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-quality indicators of production efficiency at an 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 revenue from the sale of products (performance of work, provision of services) and costs of production and sales:

• profitability of sales;
• profitability of core activities (recoupment of costs).

2. Indicators of profitability of property and its parts:

• return on total capital (assets);
• profitability of fixed assets and other non-current assets.

3. Indicators of return on capital used. 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 publish information on “normal” values ​​​​of profitability indicators. Comparing your indicators with their acceptable values ​​allows you to draw a conclusion about the state of the financial position of the enterprise. In Russia, this practice is not yet available, so the only basis for comparison is information on the value of indicators in previous years.

Table 9. Indicators characterizing profitability (profitability)

Return on sales reflects the share of profit in each ruble of sales proceeds. In foreign practice, this indicator is called profit margin (commercial margin).

One of the synthetic indicators of the economic activity of an organization as a whole is return on assets, which is commonly called economic profitability. This is the most general indicator that answers the question of how much profit a business entity receives per 1 ruble of its property. In particular, the size of dividends on shares in joint stock companies depends on its level.

In the return on assets indicator, the result of the current activities of the analyzed period (profit) is compared with the fixed and working capital (assets) available to the organization. Using 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 are an indicator directly related to the value of assets: it consists of the natural volume and sales prices, and 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 efficiency of using capital invested in the organization’s activities for a long period.

Thus, the system for analyzing financial statements of organizations is based on an integrated approach to the analysis of indicators of their financial and economic activities, reflecting the availability, allocation and use of financial resources of an enterprise or organization.

The methodology for analyzing the financial condition of business entities includes:

• analysis of the profitability of the economic activities of an enterprise or organization;
• analysis of the financial stability of the organization;
• analysis of the organization's business activity;
• analysis of liquidity and market stability of the organization.

Analysis of an organization's financial statements is carried out by comparing its indicators for different reporting periods and recommended standard values ​​and comparisons for organizations belonging to the same groups (by industry, type of product, number of personnel, etc.).

When drawing up a business plan, it is necessary to analyze the indicators of the financial condition of the organization implementing the investment project.

If the project envisages the creation of a new organization, then this stage is skipped at the initial stage, and is carried out when the enterprise reaches its design capacity or at the completion of the project.

Analysis of the financial condition of the enterprise is carried out:

• before the start of the implementation of an investment project at an existing enterprise;
• upon completion of the project.

In the first case, we need to determine the financial health of the organization. After all, it is often precisely to bring an organization out of a crisis that an investment project is developed. If the financial condition of the enterprise is unstable, then when implementing the project it is necessary to take into account that additional funds may be required to finance the current activities of the company.

In the second case, an analysis is carried out to determine the effectiveness and efficiency of the project being implemented, if the main goal was to lead the company out of the crisis. Or you simply need to make sure that the new enterprise is financially stable and able to pay its obligations.

It is not difficult to calculate financial indicators, but how to analyze them?

Indicators for analysis

In order to analyze the financial condition of an enterprise, we need to calculate the following indicators:

• solvency - determine the ability of your company to pay off its debts within the established time frame from revenues;
• business activity of an enterprise is a property of the financial condition of an enterprise, which is characterized by indicators of turnover of current assets;
• financial stability – the state of the enterprise’s finances, which creates all the conditions and prerequisites for its solvency;
• liquidity - whether assets can be converted into cash or sold. The higher the degree of liquidity, the faster the company can find funds to cover its obligations.

For analysis, we need to know the dynamics of changes in indicators. Therefore, the calculation of indicators is carried out for three years or more and is summarized in a table, which also indicates the regulatory requirements for the indicators.

The indicators are calculated based on data from the balance sheet and profit and loss account. The methodology for calculating indicators is standard and is reflected in the methodological recommendations for calculating indicators characterizing the financial condition of an enterprise.

Analysis example

When the indicators are calculated and tabulated, you can begin to analyze them. Let us give an example of a real analysis of the financial condition of an operating enterprise.

Table 1. Solvency indicators

The calculated indicator of total solvency in 2007 worsened compared to the previous year and is 1.2 months, but this is less than in 2005 (1.75).

All solvency indicators have worsened compared to 2006, except for the internal debt ratio, which remained equal to 0. This means that the company has no debt to the staff and founders for the payment of income.

The state of solvency indicators as a whole can be characterized as positive, since the standard values ​​are< 3. Однако необходимо принять меры по увеличению выручки предприятия, снижение которой явилось основной причиной ухудшения показателей платежеспособности в 2007 году.

Table 2. Liquidity indicators

In 2007, the absolute liquidity ratio improved when compared with the 2006 indicators. This happened due to an increase in cash in the structure of current assets.

The quick liquidity ratio also increased in 2007 relative to 2006 and is 0.18, which is less than the standard 0.5. And this may already predict some difficulties for the organization if it urgently needs to pay off current obligations.

The current liquidity ratio in 2007 decreased compared to 2006 and is 1.9, which is close to the norm. The decrease in the indicator was a consequence of an increase in accounts payable.

To improve liquidity indicators, the company needs to reduce the share of inventories in the structure of current assets and increase the share of cash and short-term financial investments, as well as reduce accounts payable.

Table 3. Financial stability indicators

The debt to equity ratio in 2007 was 0.3. This means that for 1 ruble of own funds there are 0.3 rubles of borrowed funds. This corresponds to the recommended values. The increase in this indicator compared to 2006 is due to an increase in accounts payable in 2007.

The dynamics of the autonomy coefficient for the analyzed period corresponds to the recommended values. Positive values ​​of equity for the analyzed period indicate the presence of own working capital - the main condition for financial stability.

Analysis of the dynamics of the coefficient of maneuverability of equity capital indicates a decrease in the share of equity capital in financing current activities.

Zero values ​​of the indicator of long-term borrowing indicate the independence of the enterprise from external investors.

The share of equity capital in working capital was 0.47 in 2007, which is less than in 2006 (0.71) and corresponds to the level of 2005 (0.44). This is due to a decrease in retained earnings in 2007. The indicators correspond to the recommended values.

Table 4. Business activity indicators

The table shows the indicators of business activity of the enterprise over three years.

The working capital ratio gives us information about the duration of the turnover period of current assets. This indicator has worsened compared to 2006 and is 2.31 months.

The turnover ratio of the amount of current assets shows the number of turnovers made by working capital. This figure decreased by 3 turns compared to 2006, but this is higher than in 2005 by 2 turns.

The duration of the inventory turnover period makes it possible to estimate the speed of inventory circulation. This indicator in 2007 also worsened compared to 2006 and amounted to 1.69 months, but this is better than in 2005 – 1.97 months.

The indicator of the duration of the receivables turnover period characterizes the average payment period from customers to the enterprise. In 2007, the indicator worsened slightly compared to 2006 and amounted to 0.39 months, but this is four times faster than in 2005 – 1.69 months.

The turnover rate of current assets that participate in the production process determines the working capital ratio in production. The indicator in 2007 was 1.7 months, i.e. it decreased compared to 2006 and approached the 2005 level.

The working capital ratio in calculations in 2007 was 0.61 months, which is 0.4 months worse than in 2006, but almost 3 times faster than in 2005.

Based on an analysis of the enterprise's business activity indicators over the years 2005-2007. we can conclude that in 2006 there was an improvement in the values ​​of the analyzed indicators compared to 2006, but in 2007 the values ​​of the indicators worsened. This is due to various factors affecting the organization’s performance:

• an increase in accounts receivable due to a decrease in the solvency of consumers,
• reduction in sales volumes of services produced.

These and other factors influenced the increase in the duration of working capital turnover.

Conclusion

Based on the analysis of indicators characterizing the financial condition of the organization, we can draw a conclusion about the stable position of the enterprise. The indicators correspond to the recommended values. But it is necessary to take measures to increase revenues and grow profits in the future.

More complete information about the financial condition of an enterprise can be obtained by analyzing the financial results of the organization’s activities, where profitability and revenue indicators are assessed, and factors influencing the organization’s performance are determined.

Financial analysis is a labor-intensive process and requires the participation of specialists, so you should not neglect their services if you want to obtain objective information about the state of your enterprise and the results of the implementation of a business project.

Financial analysis: What is it?

The financial analysis- this is the study of the main indicators of the financial condition and financial results of the organization’s activities with the aim of making management, investment and other decisions by interested parties. Financial analysis is part of broader terms: analysis of the financial and economic activities of an enterprise and economic analysis.

In practice, financial analysis is carried out using MS Excel tables or special programs. During the analysis of financial and economic activities, both quantitative calculations of various indicators, ratios, coefficients, and their qualitative assessment and description, comparison with similar indicators of other enterprises are made. Financial analysis includes analysis of the organization's assets and liabilities, its solvency, liquidity, financial results and financial stability, analysis of asset turnover (business activity). Financial analysis allows us to identify such important aspects as the possible probability of bankruptcy. Financial analysis is an integral part of the activities of such specialists as auditors and appraisers. Financial analysis is actively used by banks that decide whether to issue loans to organizations, accountants in the preparation of explanatory notes for annual reports, and other specialists.

Fundamentals of Financial Analysis

Financial analysis is based on the calculation of special indicators, often in the form of coefficients characterizing one or another aspect of the financial and economic activities of an organization. Among the most popular financial ratios are the following:

1) Autonomy coefficient (ratio of equity capital to total capital (assets) of the enterprise), financial dependence coefficient (ratio of liabilities to assets).

2) Current ratio (ratio of current assets to short-term liabilities).

3) Quick liquidity ratio (the ratio of liquid assets, including cash, short-term financial investments, short-term receivables, to short-term liabilities).

4) Return on equity (the ratio of net profit to the enterprise’s equity)

5) Return on sales (the ratio of profit from sales (gross profit) to the company’s revenue), based on net profit (the ratio of net profit to revenue).

Financial analysis techniques

The following methods of financial analysis are usually used: vertical analysis (for example), horizontal analysis, predictive analysis based on trends, factor and other methods of analysis.

Among the legally (regulatory) approved approaches to financial analysis and methods, the following documents can be cited:

• Order of the Federal Administration for Insolvency (Bankruptcy) dated August 12, 1994 N 31-r
• Decree of the Government of the Russian Federation of June 25, 2003 N 367 “On approval of the Rules for conducting financial analysis by an arbitration manager”
• Regulations of the Central Bank of Russia dated June 19, 2009 N 337-P "On the procedure and criteria for assessing the financial position of legal entities - founders (participants) of a credit organization"
• Order of the FSFO of the Russian Federation dated January 23, 2001 N 16 “On approval of the “Methodological guidelines for conducting an analysis of the financial condition of organizations”
• Order of the Ministry of Economy of the Russian Federation dated October 1, 1997 N 118 “On approval of Methodological Recommendations for the reform of enterprises (organizations)”

It is important to note that financial analysis is not just the calculation of various indicators and ratios, comparison of their values ​​in statics and dynamics. The result of a qualitative analysis should be a well-founded conclusion, supported by calculations, about the financial position of the organization, which will become the basis for decision-making by management, investors and other interested parties (see example). It is this principle that formed the basis for the development of the “Your Financial Analyst” program, which not only prepares a full report based on the results of the analysis, but also does it without user participation, without requiring him to have knowledge of financial analysis - this greatly simplifies the life of accountants, auditors, and economists .

Sources of information for financial analysis

Very often, stakeholders do not have access to the organization’s internal data, so the organization’s public accounting reports serve as the main source of information for financial analysis. The main reporting forms - Balance Sheet and Profit and Loss Statement - make it possible to calculate all the main financial indicators and ratios. For a more in-depth analysis, you can use the organization’s cash flow and capital flow reports, which are compiled at the end of the financial year. An even more detailed analysis of individual aspects of the enterprise’s activities, for example, calculating the break-even point, requires initial data that lies outside the reporting framework (current accounting and production accounting data).

For example, you can get financial analysis based on your Balance Sheet and Profit and Loss Statement for free online on our website (both for one period and for several quarters or years).

Altman Z-model (Altman Z-score)

Altman Z-model(Altman Z-score, Altman Z-Score) is a financial model (formula) developed by the American economist Edward Altman, designed to predict the probability of bankruptcy of an enterprise.

Enterprise Analysis

Under the expression " enterprise analysis" usually mean financial (financial-economic) analysis, or a broader concept, analysis of the economic activity of an enterprise (AHA). Financial analysis, analysis of economic activity refers to microeconomic analysis, i.e. analysis of enterprises as individual subjects of economic activity (as opposed to macroeconomic analysis, which involves the study of the economy as a whole).

Business Activity Analysis (ABA)

By using business activity analysis organizations, the general trends in the development of the enterprise are studied, the reasons for changes in performance results are investigated, plans for the development of the enterprise are developed and approved and management decisions are made, the implementation of approved plans and decisions made is monitored, reserves are identified in order to increase production efficiency, the results of the company’s activities are assessed, an economic strategy is developed its development.

Bankruptcy (Bankruptcy Analysis)

Bankruptcy, or insolvency- this is the inability of the debtor, recognized by the arbitration court, to fully satisfy the claims of creditors for monetary obligations and (or) to fulfill the obligation to make mandatory payments. The definition, basic concepts and procedures related to the bankruptcy of enterprises (legal entities) are contained in the Federal Law of October 26, 2002 N 127-FZ “On Insolvency (Bankruptcy)”.

Vertical reporting analysis

Vertical reporting analysis- technique of analysis of financial statements, in which the relationship of the selected indicator with other similar indicators within the same reporting period is studied.

Horizontal reporting analysis

Horizontal reporting analysis is a comparative analysis of financial data over a number of periods. This method is also known as trend analysis.

1. Structure of property and sources of its formation. Express assessment of the structure of sources of funds.
2. Estimation of the value of the organization's net assets.
3. Analysis of financial stability based on the amount of surplus (shortage) of own working capital. Calculation of financial stability ratios.
4. Analysis of the ratio of assets by degree of liquidity and liabilities by maturity.
5. Analysis of liquidity and solvency.
6. Analysis of the effectiveness of the organization's activities.
7. Analysis of the borrower's creditworthiness.
8. Bankruptcy forecast according to the Altman, Taffler and Lees model.

Instructions. Complete the balance sheet table. The resulting analysis is saved in a MS Word file (see analysis example