1.3. types of analysis of accounting (financial) statements
Financial analysis is carried out not only by managers and relevant departments of the enterprise, but also by its founders, investors in order to assess financial condition, studying the efficiency of resource use, commercial banks to assess creditworthiness and determine the degree of risk of issuing a loan, suppliers - to receive payments on time, etc. In accordance with the tasks, the analysis of accounting (financial) statements is divided into internal and external.
Internal analysis is carried out by the company's services, and its results are used to plan the financial condition of the enterprise, ensure financial stability and solvency. Its goal is to establish a systematic flow of funds and place own and borrowed funds in such a way as to ensure the effective functioning of the enterprise, maximizing profits and avoiding bankruptcy.
External analysis is carried out by investors, suppliers of material and financial resources, regulatory authorities on the basis of published reports. Its goal is to establish the possibility of a profitable investment in order to maximize profits and minimize commercial and financial risks.
Analyzing the accounting (financial) statements, the user first of all determines the absolute indicators of the reporting forms and, during their analytical processing, proceeds to the relative indicators of financial ratios.
Detailing the methodology of financial analysis depends on the goals set, as well as on various factors of informational, temporal, methodological, personnel and technical support. The logic of analytical work involves its organization in two stages:
preliminary assessment, or express analysis of the financial condition;
detailed analysis of the financial condition. Express analysis of accounting (financial) statements.
Its purpose is a clear and simple assessment of the property status and development efficiency of an economic entity. This type of analysis can be carried out by the auditor at the preliminary planning stage of the audit. Express analysis should be performed in three stages:
preparatory;
preview financial statements;
economic reading and reporting analysis.
The purpose of the first stage is to decide on the appropriateness of the analysis of financial statements and to make sure that they are ready for reading. The first task is solved by preliminary acquaintance with the reporting and the last auditor's report, the second is, to a certain extent, technical in nature. Here, a visual and simple counting check of reporting is carried out on formal grounds and in essence: the presence of all necessary forms and applications, details and signatures is determined; the correctness and clarity of filling in the reporting forms is verified; balance currency and all subtotals are checked; the interconnection of indicators of reporting forms and the main control ratios between them are checked, etc.
The purpose of the second stage is to introduce explanatory note to the balance, which is necessary in order to assess the working conditions in the reporting period, identify trends in key performance indicators, as well as qualitative changes in the property and financial position of an economic entity. It is necessary to pay attention to the algorithms for calculating the main indicators. Analyzing trends in key indicators, it is necessary to take into account the influence of some distorting factors, in particular inflation. In addition, it should be noted that the balance sheet itself, being the main reporting and analytical form, is not free from some restrictions, the most significant of which are the following.
1. The balance sheet is historical in nature: it captures the results of financial and economic activity that have developed by the time it was compiled.
The balance sheet reflects the statics in the funds and liabilities of the enterprise, i.e. it answers the question of what the enterprise is at this particular moment according to the accounting policy used, but does not answer the question, as a result of which such a situation has developed.
A number of analytical indicators can be calculated from reporting data, but all of them will be useless if they are not compared with any base. The balance, considered in isolation, does not provide spatial and temporal comparability, therefore, its analysis should be carried out in dynamics and, if possible, supplemented by a review of similar indicators for related enterprises, their industry average and average progressive values.
The interpretation of balance sheet indicators is possible only with the involvement of data on the turnover of funds.
The balance sheet is a set of one-time data at the end of the reporting period and, therefore, does not reflect changes in the enterprise's funds during the reporting period. This applies primarily to the most dynamic balance sheet items.
When drawing up the balance sheet, the principle of valuation at acquisition prices is laid down. In the context of inflation, rising prices for raw materials and equipment used at the enterprise, low renewal of fixed assets, many items reflect a set of identical functional purpose, but different in value of accounting objects, which, of course, significantly distorts the results of the enterprise, the real assessment of its economic assets, the “price” of the enterprise as a whole and its financial results, primarily related to the assessment of the use of capital.
One of the main goals of any business is to make a profit. However, this indicator is not fully reflected in the balance sheet. The absolute value of the accumulated profit presented in it in isolation from the costs and sales volume does not show, as a result of which such an amount of profit has developed.
The result of the balance sheet does not reflect the amount of funds that the company actually has, its "valuation". The main reason for this is the possible discrepancy between the balance sheet estimate of economic assets and real conditions due to inflation, market conditions, etc.
9. The financial position of the enterprise and the prospects for its change are influenced by factors not only of a financial nature, but also by many others that do not have a valuation at all (possible political and economic changes, change of ownership, etc.), therefore, the analysis of financial statements is only one of the sections of the complex economic analysis, which uses, in addition to formalized criteria, informal assessments. The third stage is the main one in express analysis; its purpose is a generalized assessment of the results of the economic activity of the enterprise and its financial condition. Such analysis is carried out with varying degrees of detail in the interests of various users.
Detailed analysis of accounting (financial) statements. Its purpose is a more detailed description of the property and financial position of an economic entity, the results of its activities in the past year (period), as well as the possibilities for the development of the entity in the future. It concretizes, complements and expands the individual analysis procedures described above (express analysis). It makes it possible to assess the financial position of the company, property status, the degree of entrepreneurial risk (the possibility of repaying obligations to third parties), capital adequacy for current activities and short-term investments, the need for additional sources of financing, the ability to increase capital, the rationality of using borrowed funds, and the efficiency of operations. companies. In general, the program of in-depth analysis of accounting (financial) statements may look like this:
1. Preliminary review of the economic and financial condition of a business entity.
Characteristics of the general direction of financial and economic activity.
Identification of "sick" reporting items.
2. Assessment and analysis of the economic potential of a business entity.
2.1. Assessment of property status.
Construction of analytical net balance.
Vertical balance analysis.
Horizontal balance sheet analysis.
Analysis of qualitative changes in property status.
2.2. Assessment of the financial condition.
Liquidity assessment.
Assessment of financial stability.
3. Evaluation and analysis financial results activities of a business entity. Estimation of sales volume.
Analysis of the organization's income structure.
Analysis of the organization's cost structure.
Profit analysis.
Profitability analysis.
Assessment of financial stability, credit and solvency.
Currently, there are several approaches to the sequence of analysis:
from the calculation and evaluation of general indicators of the efficiency of capital use, the study of its composition and structure to the assessment of solvency and financial stability enterprises;
from the general characteristics and evaluation of assets and their sources to the assessment of solvency, financial stability and efficiency of use of assets;
from the analysis of financial results to a general assessment of the dynamics and structure of articles balance sheet, financial stability and liquidity, efficiency of the enterprise;
from the analysis of capital formation, its placement, assessment of solvency, financial stability to the analysis of the efficiency of capital use and the main factors in the formation and change of financial position;
from analysis and liquidity, structure and cost of capital to turnover analysis working capital, profitability of the enterprise, prospective financial analysis and break-even assessment.
test questions
Can you characterize the normative regulation of the preparation of accounting (financial) statements?
How is the property condition of the enterprise assessed on the basis of balance sheet data?
How to evaluate the demand for fixed assets on the balance sheet?
Which lines of the balance sheet most often need to be detailed?
What explanations (certificates) does form No. 5 "Appendix to the balance sheet" include for disclosing information on receivables / payables?
What complex cost items are included in Form No. 2 "Profit and Loss Statement"?
What changes have been made to form No. 2 in connection with the introduction of chapter 25 of the tax code?
What areas of the organization's activities are highlighted in form No. 4 “Cash flow statement?
What information can be obtained from Form No. 3, Statement of Changes in Equity?
What are the objectives of the analysis of accounting (financial) statements?
What explanations are needed to understand the property status of the organization?
What explanations are needed to understand the “quality” of the organization's financial results?
What can cause an active cash inflow from investing activities?
What clarifications are required for form No. 3 “Statement of changes in equity”?
What must be reflected in the explanatory note to the reporting forms?
Financial analysis is carried out not only by managers and relevant services of the organization, but also by its founders, investors in order to assess the financial condition, study the efficiency of the use of resources; commercial banks - to assess creditworthiness and determine the degree of risk of issuing a loan; suppliers - for timely receipt of payments, etc. In accordance with the tasks, the analysis of accounting (financial) statements is divided into internal and external.
Internal analysis is carried out by the services of the enterprise, and its results are used to plan the financial condition of the enterprise, ensure financial stability and solvency. Its goal is to establish a systematic flow of funds and place own and borrowed funds in such a way as to ensure the effective functioning of the enterprise, maximizing profits and avoiding bankruptcy.
External Analysis carried out by investors, suppliers of material and financial resources that control
authorities on the basis of published reports. Its goal is to establish the possibility of a profitable investment in order to maximize profits and minimize commercial and financial risks.
Analyzing the accounting (financial) statements, the user, first of all, determines the absolute indicators of the reporting forms and, during their analytical processing, proceeds to relative indicators - financial ratios.
The detailing of the methodology of financial analysis depends on the goals set, as well as on various factors of information, time, methodological, personnel and technical support. The logic of analytical work involves its organization in two stages:
Express analysis of accounting (financial) statements. Its purpose is a clear and simple assessment of the property condition and the effectiveness of the development of the organization. This type of analysis can be carried out by the auditor at the preliminary stage of planning the audit activity. Express analysis should be performed in three stages:
1) preparatory;
2) preliminary review of financial statements;
3) economic reading and reporting analysis.
The purpose of the first stage is to decide on the appropriateness of the analysis of financial statements and to make sure that they are ready for reading. The first task is solved by a preliminary acquaintance with the statements and the latest audit report, the second is of a technical nature. Here, a visual and simple counting check of reporting is carried out on formal grounds and in essence: the presence of all necessary forms and applications, details and signatures is determined; the correctness and clarity of filling in the reporting forms is verified; the balance currency and all subtotals are checked; the mutual linking of indicators of reporting forms and the main control ratios between them, etc.
The purpose of the second stage is to get acquainted with the explanatory note to the balance sheet, which is necessary in order to assess the working conditions in the reporting period, identify trends in key performance indicators, as well as qualitative changes in the property and financial position of the organization.
It is necessary to pay attention to the algorithms for calculating the main indicators. Analyzing trends in key indicators, it is necessary to take into account the influence of some distorting factors, in particular inflation.
The third stage is the main one in express analysis. Its purpose is a generalized assessment of the results of the economic activity of the organization and its financial condition. Such analysis is carried out with varying degrees of detail in the interests of various users.
Detailed analysis of accounting (financial) statements. Its purpose is a more detailed description of the property and financial situation of the organization, the results of its activities in the past year (period), as well as the possibilities for the development of the organization in the future. It concretizes, supplements and expands individual express analysis procedures. The analysis makes it possible to assess the financial position, property status, the degree of entrepreneurial risk (the possibility of repaying obligations to third parties), capital adequacy for current activities and short-term investments, the need for additional sources of financing, the ability to increase capital, the rationality of using borrowed funds, the efficiency of the organization .
In general, an in-depth analysis of accounting (financial) statements may look like this:
1. Preliminary review of economic and financial
state of the organization.
1.1. Characteristics of the general orientation of the financial
economic activity.
1.2. Identification of "sick" reporting items.
2. Assessment and analysis of the economic potential of the organization.
2.1. Assessment of property status.
2.1.1. Construction of analytical net balance.
2.1.2. Vertical balance analysis.
2.1.3. Horizontal balance sheet analysis.
2.1.4. Analysis of qualitative changes in property
position.
2.2. Assessment of the financial condition.
2.2.1. Liquidity assessment.
2.2.2. Assessment of financial stability.
3. Assessment and analysis of financial performance
organizations.
3.1. Estimation of sales volume.
3.2. Analysis of the organization's income structure.
3.3. Analysis of the organization's cost structure.
3.4. Profit analysis.
3.5. Profitability analysis.
3.6. Assessment of financial stability, credit and solvency.
There are currently several approaches to the sequence of analysis:
1) from the calculation and evaluation of general indicators of the efficiency of the use of capital, the study of its composition and structure to the assessment of the solvency and financial stability of the organization;
2) from the general characteristics and assessment of assets and their sources to the assessment of solvency, financial stability and efficiency of use of assets;
3) from the analysis of financial results to a general assessment of the dynamics and structure of balance sheet items, financial stability and liquidity, the effectiveness of the organization;
4) from the analysis of the formation of capital, its placement, assessment of solvency, financial stability to the analysis of the efficiency of the use of capital and the main factors in the formation and change of the financial position;
5) from the analysis of liquidity, structure and cost of capital to the analysis of working capital turnover, profitability of the organization, prospective financial analysis and break-even assessment.
The method of financial analysis means way of approaching learning business processes in their formation and development.
The characteristic features of the method include: the use of a system of indicators, the identification and change of the relationship between them.
In the process of financial analysis, a number of special methods and techniques are used.
Ways of applying financial analysis can be divided into two groups: traditional and mathematical.
To the first group include: the use of absolute, relative and average values; method of comparison, summary and grouping, method of chain substitutions.
The method of comparison consists in compiling the financial indicators of the reporting period with their planned values and with the indicators of the previous period.
Receiving summaries and groupings consists in combining information materials into analytical tables.
The method of chain substitutions is used to calculate the magnitude of the influence of factors in the overall complex of their impact on the level of the aggregate financial indicator. The essence of the methods of valuable substitutions is that, by successively replacing each reporting indicator with the base one, all other indicators are considered unchanged. This replacement allows you to determine the degree of influence of each factor on the total financial indicator.
The literature on financial analysis provides a variety of methods of financial analysis and their classification. They can be divided into three main groups:
1) Methods directly or indirectly borrowed from other sciences;
2) Models used in financial analysis;
3) Methods of reading financial statements.
There are various classifications of methods that can be applied in financial analysis. The first level of classification distinguishes non-formalized and formalized methods of analysis. The former are based on the description of analytical procedures at the logical level, and not on strict analytical dependencies. These include methods: expert assessments, scenarios, psychological, morphological, comparisons, building systems of indicators, building systems of analytical tables, etc. The application of these methods is characterized by a certain subjectivity, since the intuition, experience and knowledge of the analyst are of great importance.
To the second group include methods based on fairly strict formalized analytical dependencies. Dozens of these methods are known; they constitute the second level of the classification. Let's list some of them.
Classical methods of analysis economic activity and financial analysis: chain substitutions, arithmetic differences, balance sheet, isolation of the isolated influence of factors, percentage numbers, differential, logarithmic, integral, simple and compound interest, discounting.
Traditional Methods economic statistics : average and relative values, grouping, graphical, index, elementary methods of processing time series.
Mathematical and statistical methods study of relationships: correlation analysis, regression analysis, analysis of variance, factor analysis, principal component analysis, covariance analysis, object-period method, cluster analysis and etc.
Econometric methods: matrix methods, harmonic analysis, spectral analysis, methods of the theory of production functions, methods of the theory of input-output balance.
Methods of economic cybernetics and optimal programming: system analysis methods, machine simulation methods, linear programming, non-linear programming, dynamic programming, convex programming, etc.
Methods of operations research and decision theory: graph theory methods, tree method, Bayesian analysis methods, game theory, queuing theory, network planning and control methods.
Of course, not all of the listed methods can be directly applied in the framework of financial analysis, since the main results effective analysis and financial management are achieved through special financial instruments, however, some of their elements are already in use. In particular, this applies to the methods of discounting, computer simulation, correlation and regression analysis, factor analysis, processing of time series, etc.
Financial analysis is carried out using various types models that allow structuring and identifying relationships between key indicators. There are three main types of models: descriptive, predicative and normative.
Descriptive models, also known as descriptive models, are the main ones for assessing the financial condition of an enterprise. These include: building a system of reporting balances, presentation of financial statements in various analytical sections, vertical and horizontal analysis of reporting, a system of analytical ratios, analytical notes to reporting. All these models are based on the use of accounting information. The analysis carried out in the second section of this work will be the construction of a descriptive model.
Predicative Models are predictive models. They are used to predict the income of the enterprise and its future financial condition. The most common of them are: calculating the point of critical sales volume, building predictive financial statements, dynamic analysis models (rigidly determined factorial models and regression models), situational analysis models.
normative models. Models of this type make it possible to compare the actual performance of enterprises with the expected ones calculated according to the budget. These models are mainly used in internal financial analysis. Their essence is reduced to the establishment of standards for each item of expenditure for technological processes, product types, responsibility centers, etc. and to the analysis of deviations of actual data from these standards. The analysis is largely based on the use of rigidly determined factor models.
Basic Principle of Analytical Reading of Financial Statements- this is a deductive method, that is, from the general to the particular, but it must be applied repeatedly. In the course of such an analysis, as it were, the historical and logical sequence of economic facts and events, the direction and strength of their influence on the results of activity are reproduced.
The practice of financial analysis has already developed the main types of analysis (method of analysis) of financial statements. Among them, 6 main methods can be distinguished:
horizontal (temporal) analysis- comparison of each reporting position with the previous period;
vertical (structural) analysis - determination of the structure of the final financial indicators with the identification of the impact of each reporting position on the result as a whole;
trend analysis- comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible values of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;
analysis relative indicators(coefficients)- Calculation of relationships between individual report items or items different forms reporting, determination of interrelations of indicators;
comparative (spatial) analysis- this is both an on-farm analysis of summary reporting indicators for individual indicators of an enterprise, branches, divisions, workshops, and an inter-farm analysis of indicators this enterprise in comparison with the indicators of competitors, with average industry and average economic data;
factor analysis- analysis of the influence of individual factors (reasons) on the performance indicator using deterministic or stochastic methods of research. Moreover, factor analysis can be both direct (analysis itself), when the effective indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a general effective indicator.
In conclusion, it should be said that not all the methods and models outlined above will be used by me in this work in the course of analyzing the financial condition. This is due to the limited information available and the fact that the analysis will be predominantly external.
The analysis will use a descriptive model, i.e. a model of a descriptive nature, within which the following methods and areas of analysis are applicable:
1) Vertical and horizontal reporting analysis- the expression of this method will be the construction of a comparative analytical balance;
2) Construction of a system of analytical coefficients on the basis of which financial stability, liquidity will be considered;
3) Factor analysis- determination of the degree of influence of individual components of the indicator on its value - will be carried out when considering the structure of assets and liabilities, sales proceeds;
4) Profitability analysis- indicators of this group will be used to assess the overall effectiveness of investing in this enterprise.
At present, it is practically impossible to isolate the techniques and methods of any science as inherent exclusively to it. So in financial analysis, various methods and techniques are used that were not previously used in it.
The purpose of the preliminary review of financial statements is to familiarize yourself with the explanatory note to the balance sheet, which will allow you to understand the features of the organization’s business, its development strategies, stage life cycle. This is necessary in order to assess the working conditions in the reporting period, identify trends in key performance indicators, as well as qualitative changes in the property and financial position of the economic entity.
At this stage, you need to pay attention to the algorithms for calculating the main indicators. Analyzing trends in key indicators, it is necessary to take into account the influence of some distorting factors, in particular inflation.
In addition, it should be noted that the balance sheet itself, being the main reporting and analytical form, is not free from certain restrictions. The most significant of them are the following.
1. The balance sheet is historical in nature - it captures the results of financial and economic activity that have developed by the time it was compiled.
2. The balance reflects the static in the funds and liabilities of the organization, i.e. answers the question of what the organization is at this particular moment according to the accounting policies used, but does not answer the question of what resulted in such a situation.
3. A number of analytical indicators can be calculated from reporting data, but all of them will be useless without comparison with some kind of base. The balance, considered in isolation, does not provide spatial and temporal comparability. Therefore, its analysis should be carried out in dynamics and, if possible, supplemented by a review of similar indicators for related organizations, their industry average and average progressive values.
4. Interpretation of balance sheet indicators is possible only with the involvement of data on the turnover of funds, i.e. about the business activity of the organization.
5. Balance - a set of one-time data at the end of the reporting period, and therefore does not reflect changes in the organization's funds during the reporting period. This applies primarily to the most dynamic balance sheet items.
6. When compiling the balance sheet, the principle of valuation at acquisition prices is laid down. In the context of inflation, rising prices for raw materials and equipment, low renewal of fixed assets, many balance sheet items reflect a set of accounting objects that are identical in function, but different in value. This, of course, significantly distorts the results of the organization's activities, the real assessment of its economic assets, the "price" of the organization as a whole and its financial results, primarily related to the assessment of the use of capital.
7. One of the main goals of the functioning of any organization is to make a profit. However, this indicator is not fully reflected in the balance sheet. The absolute value of the accumulated profit presented in it in isolation from the costs and sales volume does not show, as a result of which such an amount has developed.
8. The result of the balance sheet does not reflect the amount of funds that the organization actually has, its "valuation". This is due to the possible inconsistency of the balance sheet value of economic assets with real conditions due to inflation, market conditions, etc.
9. The financial position of the organization and the prospects for its change are influenced by factors not only of a financial nature, but also by many others that do not have a valuation at all (possible political and economic changes, a change in ownership, etc.). Therefore, the analysis of financial statements is only one of the sections of a comprehensive economic analysis that uses, in addition to formalized criteria, informal assessments.
Economic reading and reporting analysis is the main stage of express analysis. Its purpose is a generalized assessment of the results of the economic activity of the organization and its financial condition. Such analysis is carried out with varying degrees of detail in the interests of various users.
Analysis of enterprise assets
Current assets (current assets, mobile assets, current assets) occupy a significant share in the total amount of funds at the disposal of the enterprise.
The main objectives of the analysis of current assets is to study changes in their composition and structure, identify the main sources of working capital formation and determine the efficiency of the use of current assets.
Analysis of the composition of the current assets of the enterprise consists of five stages:
- Consideration of the dynamics of the total volume of current assets that are used by the enterprise (the rate of change in their average amount in comparison with the rate of change in the volume of sales of products and the average amount of all assets; the dynamics of the share of current assets in the total assets of the enterprise);
- Consideration of the dynamics of the composition of current assets of the enterprise in the context of their main types (stocks of raw materials, materials and semi-finished products, stocks of finished products, current receivables, balances monetary assets and their equivalents). At this stage, the calculation and study of the rate of change in the amount of each of these types of current assets is carried out in comparison with the rate of change in the volume of production and sales of products, as well as the consideration of the dynamics of the share of the main types of current assets in their total amount;
- The study of the turnover of certain types of current assets and their total amount. This stage of the analysis allows you to establish the overall duration and structure of the operating, production and financial cycles of the enterprise;
- Determination of the profitability of current assets, the study of its determining factors;
- Consideration of the composition of the main sources of financing of current assets (the dynamics of their amount and share in the total financial resources invested in these assets). The level of financial risk generated by the current structure of current assets financing sources is determined.
Analysis of the composition of current assets of the enterprise by their individual types makes it possible to assess the level of their liquidity.
During the study of the structure of the assets of the enterprise, the following methods are used:
- horizontal analysis- consists in constructing one or more analytical tables in which absolute balance sheet indicators are supplemented by relative ones - growth (decrease) rates.
- vertical analysis - shows the structure of the company's funds.
Such an analysis of the structure of the company's assets allows you to determine the trends in asset items that have a positive impact on strengthening the company's position in the market, or vice versa - which are negative.
Analysis of the use of assets is to determine the impact of assets on the financial results of the company in three groups:
- profitability,
- liquidity,
- turnover based on the calculation of coefficients.
Thus, thanks to the results of the analyzes, it becomes possible to determine the overall level of efficiency in the management of current assets at the enterprise, as well as to identify the main directions for its increase in the coming period.
The competitiveness of an enterprise can only be ensured by the correct management of the movement of financial resources and capital at its disposal. Enterprise asset management is based on the following main concepts:
- time value of money resources,
- cash flow,
- investment efficiency,
- financial risk, asset price,
- their turnover rate.
Effective asset management of an enterprise can be ensured by the following areas:
- general the financial analysis assets and planning;
- providing the enterprise with financial resources (management of sources of funds);
- investment of financial resources in assets.
An analysis of the sources of an enterprise's assets allows you to establish the actual amount of equity and borrowed (attracted) capital, to identify the reasons that caused their changes for reporting period give them an appropriate rating. Borrowed funds participate in the turnover together with own capital, merge with it, but at the same time lose their quantitative certainty and status. All property of the enterprise represents a single capital invested in the business by different owners and in circulation, as a result of which it brings a certain profit. In its composition are bank loans, loans and accounts payable. The main attention is paid to equity capital, since the stock of sources of own funds is a stock of financial stability and stability of the enterprise. The need for own capital is due to the requirement of self-financing of enterprises. Own capital is the basis of the independence of the enterprise.
5. Analysis of fixed assets enterprises usually begins with a study of the volume of fixed assets, their dynamics and structure. Enterprise funds are divided into industrial - production and non-industrial, as well as funds for non-productive purposes.
In addition, the production part is usually divided into active and passive parts.
The objectives of the analysis of the use of fixed assets are:
- determination of the provision of structural divisions and the enterprise as a whole with fixed assets;
- the level of use of fixed assets according to general and particular indicators;
- determining the reasons for their change;
- calculation of the impact of the use of fixed assets on the volume of production, profitability, etc.;
- determination of the degree of use of the production capacity of the organization;
- identification of reserves, to increase the efficiency of the use of fixed assets.
Analysis of fixed assets begins with an analysis of the presence, structure and movement of fixed assets of the enterprise. Data on the availability of fixed assets, on their movement are entered in the table.
Availability, movement, structure of fixed assets of the enterprise
A clearer idea of the structure of fixed assets gives an analysis of changes in the structure of fixed assets over a period of years.
Analysis of changes in the structure over a period of years
This table may reflect data on changes in the structure of fixed assets for a certain period (when several analyzed years and one base year are considered). In this case, the absolute change in the value of fixed assets in the analyzed year compared to the base year, as well as the growth rate of the value of fixed assets in the enterprise, are calculated.
One of the main indicators in the analysis of fixed assets is average annual cost of fixed assets. This cost can be calculated as follows:
Fsr \u003d Fper + (Fvv * Chm) / 12 - Fl * (12-M) / 12
where,
Fs - the average annual cost of fixed assets;
Fper - the initial (book) value of fixed assets;
Fvv - the cost of the introduced fixed assets;
Chm - the number of months of functioning of the introduced fixed assets;
Fl - liquidation value;
M - the number of months of operation of retired fixed assets.
traffic information and technical condition fixed assets (funds) show the following indicators: Renewal rate, Retirement rate, Growth rate. Formulas and description are given here.
The next stage of the analysis is the analysis of the main indicators of the use of fixed assets. The main indicator of the use of fixed assets is return on assets, calculated as the ratio of the cost of marketable products to the average annual cost of fixed assets. In addition, capital intensity, the inverse of capital productivity, is calculated. The change in the level of capital productivity is influenced by a number of factors (factorial analysis of capital productivity). The value of these factors is calculated by comparing the indicator in the analyzed and base year.
The next step in the analysis is to determine capital-labor ratio(analysis of the provision of the enterprise with fixed assets). This indicator is defined as the ratio of the average annual cost of all fixed assets (Fsr.) to the average number of employees in the enterprise:
Fvoor = Fsr / R
where P is the number of employees at the enterprise (includes all workers, engineers and administrative staff).
In addition, an indicator is calculated showing the attributable cost of fixed assets per worker(person employed in the main or auxiliary production):
Fwoor. \u003d Fpr / Rrab
where Rrab is the number of workers.
After analyzing the generalizing indicators, the degree of use of the production capacities of the enterprise, certain types of machinery and equipment is studied in more detail.
Degree of capacity utilization characterized by indicators:
- Extensive load, calculated as the ratio of the actual equipment working time fund to the planned fund: Kext. = Tf. / Tpl.
- Intensive load, calculated as the ratio of actual and planned average hourly output: Kinten. = VPf. / VPpl.
- The integral load factor, a generalizing indicator that comprehensively characterizes the use of equipment, is calculated by the formula: J = Kext. * Kinten.
For groups of homogeneous equipment is calculated change in production volume due to its quantity, extensiveness and intensity of use according to next model:
VP \u003d K * D * Ksm * P * SV
where, K is the average annual amount of equipment;
D - the number of days worked;
Ksm - shift coefficient;
P - the average duration of the shift;
CB - production output for 1 machine-hour.
Calculation of influence of these factors is made by means of chain substitution, absolute and relative differences.
Finally, it analyzes the degree of use of the premises of the enterprise. An indicator is calculated showing how many products produced by the enterprise account for 1 square. meter total area enterprises (industrial and non-industrial):
Fpl. = VP / S
where VP is gross output, S is the total area.
But, since products are not produced on non-productive means, this indicator is more often used to determine the output of products per 1 sq.m. production areas.
In addition, when studying the use of enterprise space, the share of production and non-production space in the total area is calculated, as well as the specific area occupied by the main and auxiliary production in the total area of production space.
In the process of analysis, factors are identified and studied that in one way or another affect the performance of the enterprise and, in particular, the efficiency of the use of fixed assets. Thus, ways and reserves for increasing the efficiency of the use of fixed assets are identified. They can be the commissioning of uninstalled equipment, its replacement and modernization, the reduction of all-day and intra-shift downtime, an increase in the shift ratio, its more intensive use, the introduction of measures for modernization and technical re-equipment.
For example, reserves for increasing output through the commissioning of new equipment are defined as:
VPk \u003d ∆K * Df * Ksmf * Pf * SVf
where = ∆K is the additional amount of equipment, Df is the number of days worked (actually), Ksmf is the shift coefficient, Pf is the average working day, SVf is the output.
The reduction in whole-day downtime of equipment leads to an increase in the average number of days worked by each unit per year. This increase is calculated as:
Vpd \u003d Kv * ∆Df * Ksmf * Pf * SVf
where, ∆D is the additional number of working days, Kv is the possible number of working days.
VPkcm \u003d Kv * Dv * ∆Ksmph * Pf * SVf
By reducing intra-shift downtime, the average shift duration increases, and hence the output:
VPp \u003d Kv * Dv * Ksmv * ∆P * SVf
To determine the reserve for increasing output by increasing the average hourly output of equipment, you need to use the formula:
VPsv \u003d Kv * Dv * Ksmv * Pv * ∆SV
The reserves for the growth of capital productivity are an increase in the volume of production and a reduction in the average annual balances of fixed assets:
∆F = Fv - Ff = ((VPf + ∆VP) / (Fsr + Fdop - Mill)) - (VPf / Fsr)
where,
∆Ф is the reserve for the growth of capital productivity;
Fv, Ff - respectively, the possible and actual level of capital productivity;
∆VP is a reserve for increasing production;
Fdop - an additional amount of fixed production assets necessary for the development of reserves to increase output;
Mills - a reserve for reducing the average annual balances of fixed assets.
Financial statement analysis is the process by which we evaluate the past and current financial position and performance of an organization.
The main source of information about the activities of the enterprise is the accounting (financial) statements. The most information for analysis is contained in the Balance Sheet (form No. 1) and Profit and Loss Statement (form No. 2), for a more detailed analysis for the financial year, data from all appendices to the balance sheet can be used.
Analysis of financial statements is a tool for identifying problems in the management of financial and economic activities, for choosing directions for investing capital and forecasting individual indicators.
Analysis of form No. 1 "Balance sheet"
Of all the forms of financial reporting, the most informative form for analyzing and evaluating the financial condition of an organization is the balance sheet (form No. 1). The balance sheet characterizes in monetary value financial position of the organization as of the reporting date. The balance sheet assets are built in order of increasing liquidity of funds, that is, in direct proportion to the rate of transformation of these assets in the process of economic turnover into a monetary form.
Balance liquidity- the degree of coverage of the obligations of the organization by its assets, which reflects the rate of return to circulation of money invested in different kinds property and liabilities. The degree of liquidity depends on how long this process takes.
Analysis of the liquidity of the balance sheet consists in comparing the funds for the asset, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liability obligations , grouped by maturities and arranged in ascending order of maturities.
Depending on the degree of liquidity, that is, the rate of conversion into cash, The assets of the organization are divided into the following groups:
- A1. Most liquid assets — these include all cash items of the enterprise and short-term financial investments ( securities). This group is calculated as follows:
A1 = Cash + Short-term financial investments.
- A2. Quick Selling Assets — receivables for which payments are expected within 12 months after the reporting date.
A2 = Short-term receivables.
- A3. Slow selling assets — articles of section II of the balance sheet asset, including stocks, VAT, receivables (payments for which are expected in more than 12 months after the reporting date) and other current assets.
A3 = Stocks + Long-term receivables + VAT + other current assets.
- A4. Difficult-to-sell assets are items in section I of the balance sheet assets, non-current assets.
A 4 = Non-current assets.
Liabilities of the balance are grouped according to the degree of urgency of their payment:
- P1. Most urgent obligations — to it includes accounts payable.
P1 = Accounts payable.
- P2. These are short term liabilities. these are short-term borrowed funds, debts to participants for the payment of income, other short-term liabilities.
P2 = Short-term borrowed funds + debt to participants in the payment of income + other short-term liabilities.
- P3. Long-term liabilities - these are balance sheet items related to sections IV and V, that is, long-term loans and borrowings, as well as deferred income, reserves for future expenses and payments.
P3 \u003d Long-term obligations + Deferred income + Reserves for future expenses and payments.
- P4. Permanent liabilities or sustainable - these are the articles of section III of the balance sheet "Capital and reserves".
P4 = Capital and reserves (own capital of the organization) .
To determine the liquidity of the balance sheet, one should compare the results of the above groups for assets and liabilities.
The balance sheet is liquid if the following inequalities are observed: A1 ≥ P1; A2 ≥ P2; A3 ≥ P3; A4 ≤ P4.
For liquidity analysis, a table is compiled. 2, in the columns of which data are recorded at the beginning and end of the reporting period of the balance sheet (Table 1).
Table 1.Dynamics and structure of assets and liabilities of Asia LLC, thousand rubles
|
Indicator |
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Fixed assets |
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including: fixed assets |
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Construction in progress |
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long-term financial investments |
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Deferred tax assets |
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current assets |
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including: |
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accounts receivable (up to 12 months) |
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short-term financial investments |
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|
cash |
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Total assets |
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Equity |
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|
long term duties |
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Borrowed funds |
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Accounts payable |
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Reserves for future expenses |
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|
Total liabilities |
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Table 2. Analysis of the liquidity of the balance sheet of Asia LLC, thousand rubles.
|
Indicator group |
Indicator group |
Payment surplus (+), deficiency (-) |
||||||
|
Back to top |
Back to top |
Back to top |
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|
Most liquid assets (A1) |
Most urgent liabilities (P1) |
|||||||
|
Marketable assets (A2) |
Current liabilities (P2) |
|||||||
|
Slow selling assets (A3) |
Long-term liabilities (L3) |
|||||||
|
Hard-to-sell assets (A4) |
Permanent liabilities (P4) |
|||||||
According to the results of Table. 3, it is possible to 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 the most urgent obligations.
Table 3. Liquidity analysis of the balance sheet of Asia LLC
Comparison of the results of the first group of assets and liabilities, that is, A1 and P1 (up to three months), reflects the ratio of current payments and receipts. Comparison of the results of the second group of assets and liabilities, that is, A2 and P2 (terms from three to six months), shows an increase or decrease trend current liquidity in the near future. Comparison of the totals for assets and liabilities for the third and fourth groups reflects the ratio of payments and receipts in a relatively distant future. The analysis carried out according to this scheme quite fully represents the financial condition in terms of the possibilities of timely settlements.
The most important analytical ratios that can be used for a general assessment of the liquidity of an organization are the following:
- absolute liquidity ratio (K al);
- quick (intermediate) liquidity ratio (K bl);
- coefficient of current (total) liquidity (K tl);
- net current assets.
Liquidity indicators of the organization are given in table. 4.
Table 4. Liquidity indicators of the organization
|
Coefficient |
Calculation formula |
|
Absolute liquidity ratio (K al) |
Most liquid assets (Cash + Short-term financial investments) / Short-term liabilities |
|
Quick (intermediate) liquidity ratio (K bl) |
(Cash + Short-term financial investments + Short-term accounts receivable) / Current liabilities |
|
Current (general) liquidity ratio (K tl) |
Total liquid working capital / Current liabilities ( Short term loans and loans + accounts payable) |
|
Net current assets (capital) (N oa) |
Total amount of liquid working capital - Current liabilities |
Absolute liquidity ratio is the most stringent criterion for the liquidity of the organization; shows what part of short-term liabilities can be repaid immediately, if necessary, at the expense of available cash and marketable securities.
The normal value of the absolute liquidity ratio ranges from 0.2-0.3. This value of the absolute liquidity ratio means that 20-30% of short-term liabilities can be repaid by the company immediately at the expense of cash.
Example
According to Form No. 1, it is known that line 260 = 1973 thousand rubles. at the beginning of the period, 3474 thousand rubles. at the end of the period. Page 250 = 6810 thousand rubles at the end of the period. Line 690 at the beginning of the period amounted to 14,597 thousand rubles, at the end of the period - 11,089 thousand rubles.
K al (beginning) = 1973 / 14,597 = 0.135
K al (at the end) \u003d (3474 + 6810) / 11,089 \u003d 0.927
The dynamics of the absolute liquidity ratio is positive and amounted to 0.792 (0.927 - 0.135). However, the indicators of absolute liquidity correspond to the standard only at the end of the period. Thus, at the beginning of the period, for 1 ruble of debt, the enterprise could quickly pay 13.5 kopecks, at the end of the period - 92.7 kopecks.
Quick (intermediate) liquidity ratio characterizes that part of current liabilities that can be repaid not only from cash, but also from expected receipts for shipped products, work performed or services rendered.
Current (total) liquidity ratio shows whether the organization has enough funds that can be used for short-term liabilities within a certain period.
It should be noted that in accordance with the official document - Methodological provisions for assessing the financial condition of enterprises and establishing an unsatisfactory balance sheet structure, approved by order of the Federal Financial Markets Service of January 23, 2001 No. 16, in order to recognize the balance sheet structure as satisfactory, the current liquidity ratio must be equal to or greater than 2.0. But in real conditions, the enterprise may well be in a stable state with a current liquidity ratio of 1.3-1.5.
Net current assets (capital) necessary to maintain the financial stability of the organization, since the excess of working capital over short-term liabilities means that the organization not only can pay off its short-term liabilities, but also has financial resources to expand its activities in the future. The presence of working capital serves as a positive indicator for investors and lenders to invest in the organization.
The dynamics of solvency indicators is given in Table. five.
Table 5. Dynamics of solvency indicators of Asia LLC
After analyzing the data in Table. 5 shows that the value of the absolute liquidity ratio at the beginning of the period is higher than the recommended value. This suggests that 42.0% of short-term liabilities will be repaid daily. By the end of the period, this ratio decreases to 0.10, which is below the recommended value, that is, the company will repay only 10% of short-term liabilities daily.
Thus, we can conclude that during the analyzed period there have been very significant changes in the ratio of current assets and short-term liabilities. So at the beginning of the past period, there is an excess of current assets over liabilities. The high values of almost all coefficients suggest that at the end of the previous period the organization had sufficient funds to ensure the repayment of its obligations.
IN " methodological recommendations for the development financial policy organization”, approved by order No. 18 of the Ministry of Economy of the Russian Federation, the state of the enterprise is divided into two levels. These categories have significant differences. The first level includes indicators for which normative values are determined: indicators of solvency and financial stability.
Analyzing the dynamics of these indicators, one should pay attention to the trend of changes. If their value is below the normative or higher, then this should be considered as a deterioration in the characteristics of the analyzed organization.
The key to the stability of the position of the enterprise is its financial stability, that is, such a state of finances that guarantees its constant solvency. Such an economic entity at its own expense covers the funds invested in assets, does not allow unjustified receivables and accounts payable and pays its obligations on time.
Financial stability- this is the ability of a business entity to function and develop, to maintain a balance of its assets and liabilities in a changing external and internal environment, guaranteeing its constant solvency and investment attractiveness within the acceptable level of risk. Financial stability reflects the stability of the characteristics obtained in the analysis of the financial condition of the enterprise in the light of a long-term perspective, and is associated with the general structure of finances and the dependence of the enterprise on creditors and investors.
The objective of financial stability analysis is to assess the degree of independence from borrowed sources of financing. This analysis allows you to find out how financially independent the organization is, whether the level of this independence is growing or decreasing, and whether the state of its assets and liabilities meets the objectives of its financial and economic activities.
The stability of the enterprise is influenced by various factors: the position of the organization in the market; production of cheap and popular products; its potential in business cooperation; degree of dependence on external creditors and investors; availability of solvent debtors; efficiency of economic and financial transactions etc.
Organizations refer to the main indicators characterizing financial stability (capital structure) (Table 6):
- capitalization ratio (K to);
- coefficient financial independence(K unsave);
- funding ratio (K fz);
- coefficient of financial stability (K fin. mouth).
Table 6. Indicators of financial stability
Capitalization ratio (the ratio of borrowed and own funds) shows what kind of funds the company has more - borrowed or own. It also shows how much borrowed funds the company attracted for 1 ruble of its own funds invested in assets. The smaller the value of the coefficient, the more stable the financial position of the organization.
Financial Independence Ratio(autonomy) shows the share of own funds in the total amount of funding sources. This ratio indicates how much an organization can reduce the amount of assets without prejudice to the interests of creditors. The higher the value of the coefficient, the more stable the financial position of the organization.
Funding ratio shows which part of the organization's activities is financed by its own, and which - by borrowed funds. If the value of the financing ratio is less than 1 (most of the property of the enterprise is formed from borrowed funds), this may indicate the danger of insolvency and often makes it difficult to obtain a loan.
Financial stability ratio shows what part of the asset is financed from sustainable sources, that is, the proportion of those sources of funding that the organization can use in its activities for a long time. If the value of the coefficient fluctuates between 80-90%, and has a positive trend, then the financial position of the organization is stable.
Indicators of financial stability of Asia LLC are given in Table. 7.
Table 7. Indicators of financial stability of Asia LLC, thousand rubles
|
Indicator |
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Deviation |
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|
Capitalization ratio |
Not higher than 1.5 |
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|
Financial Independence Ratio |
Not more than 0.6 and not less than 0.4 |
|||
|
Funding ratio |
Not less than 0.7 |
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|
Financial stability ratio |
Not less than 0.6 |
Business activity- this is the performance of the enterprise in relation to the amount of advanced resources or the amount of their consumption in the production process. Business activity is manifested in the dynamism of the development of an economic entity, the achievement of its goals, as well as the speed of turnover of funds:
- the size of the annual turnover depends on the rate of turnover of funds;
- with the size of turnover, and, consequently, with turnover, the relative value of conditionally fixed costs is associated: the faster the turnover, the less these costs fall on each turnover;
- acceleration of turnover at one stage or another of the circulation of funds entails an acceleration of turnover at other stages.
Business activity of the organization in financial aspect manifests itself primarily in the speed of turnover of its funds. Business activity analysis is to study the levels and dynamics of various financial ratios turnover.
Acceleration of turnover reduces the need for funds or allows for additional output.
As a result of the acceleration of turnover, the material elements of working capital are released, less stocks of raw materials, materials, fuel, work in progress, etc. are required, and, consequently, the monetary resources previously invested in these stocks and backlogs are also released. The increase in the number of revolutions is achieved by reducing the production time and the circulation time. To reduce production time, it is necessary to improve technology, mechanize and automate labor. The reduction of circulation time is achieved through the development of specialization and cooperation, the acceleration of transportation, document circulation and settlements.
The main indicators of turnover are given in table. 8.
Table 8. Indicators of business activity (turnover)
|
Coefficient |
Calculation formula |
|
|
Total capital turnover ratio (turnover) |
Page 010 (f. 2)_/ p. 190 + p. 290 (f. 1) |
Sales proceeds / Average annual value of assets |
|
Working capital turnover ratio (turnover) |
page 010 (f. 2) / page 290 (f. 1) |
Sales proceeds / Average annual value of current assets |
|
Return on assets (turnover) |
page 010 (f. 2) / p. 120 (f. 1) |
Sales proceeds / average cost fixed assets |
|
Return on equity (turnover) |
page 010 (f. 2) / p. 490 (f. 1) |
Sales proceeds / Average cost of equity |
Total capital turnover ratio reflects the rate of turnover (number of turnovers per period) of the entire capital of the organization. An increase in the total capital turnover ratio means an acceleration in the circulation of the organization's funds or inflationary growth, and a decrease means a slowdown in the circulation of the organization's funds.
Working capital turnover ratio shows the rate of turnover of all working capital of the organization (both material and monetary).
return on assets- the ratio of the amount of proceeds from the sale to the average cost of fixed assets during the year (that is, how much income from the sale was able to "squeeze" out of fixed assets).
The growth of capital productivity indicates an increase in the efficiency of the use of fixed assets and is regarded as a positive trend. It can be achieved through an increase in sales revenue or a decrease in the indicator residual value fixed assets. At the same time, fixed assets, due to their depreciation, constantly reduce their value, but the growth in capital productivity, obtained solely as a result of depreciation of fixed assets, cannot be considered a positive trend. A temporary decrease in the rate of return on assets may be caused by the commissioning of new production capacities, the costly restoration of fixed assets through overhaul or modernization, which should subsequently lead to both an increase in revenue (net) and an additional increase in the return on assets.
Return on equity ratio shows the rate of turnover of equity (how many rubles of revenue account for 1 ruble of invested equity).
This is the most common characteristic used in the analysis of business activity. An increase in this indicator with a relatively stable value of the equity capital indicator is a positive trend, indicating the activity of the enterprise in the sales markets, and a decrease indicates either problems with implementation or an increase in the share of equity capital, which is used insufficiently efficiently in the analyzed period of time.
Analysis of Form No. 2 “Profit and Loss Statement”
Profit and Loss Statement is the most important source of information for analyzing the profitability of the enterprise, the profitability of production, determining the amount of net profit remaining at the disposal of the enterprise, and other indicators.
Profitability- one of the main cost qualitative indicators of production efficiency at the enterprise, characterizing the level of return on costs and the degree of funds in the process of production and sale of products (works, services).
The main profitability indicators can be grouped into the following groups:
1. Product profitability indicators. Calculated on the basis of proceeds from the sale of products (performance of work, provision of services) and production and sales costs:
- profitability of sales;
- profitability of the main activity (return on costs).
2. Indicators of profitability of property and its parts:
- profitability of all capital (assets);
- profitability of fixed assets and other non-current assets.
3. Indicators of return on capital employed. Calculated on the basis of invested capital:
- return on equity;
- return on permanent capital.
It should be noted that in developed countries market relations usually every year the chamber of commerce, industry associations or the government publishes information on the "normal" values of profitability indicators. Comparison of their indicators with their allowable values allows us to draw a conclusion about the state of the financial position of the enterprise. In Russia, this practice is not yet available, so a single basis for comparison is information on the value of indicators in previous years.
Table 9. Indicators characterizing profitability (profitability)
|
Coefficient |
Calculation formula |
|
|
Profitability of sales |
page 050 (f. 2) / page 010 (f. 2) × 100% |
Sales Profit / Sales Revenue × 100% |
|
Net profit |
page 190 (f. 2) / page 010 (f. 2) × 100% |
Net profit / Sales revenue × 100% |
|
Economic profitability |
page 190 (f. 2) / page 300 (f. 1) × 100% |
Net Income / Average Asset Value × 100% |
|
Return on equity |
p. 190 (f. 2) / p. 490 (f. 1) × 100% |
Net income / Average cost of equity × 100% |
|
Return on permanent capital |
line 190 (form 2) / (line 490 + line 590 (form 1)) × 100% |
Net Income / (Average Value of Equity + Average Value of Long-Term Liabilities) × 100% |
Profitability of sales reflects the share of profit in each ruble of sales proceeds. In foreign practice, this indicator is called the profit margin (commercial margin).
One of the synthetic indicators economic activity organization as a whole is the return on assets, which is commonly called economic profitability. This is the most general indicator that answers the question of how much profit an economic entity receives per 1 ruble of its property. Its level, in particular, determines the amount of dividends on shares in joint-stock companies Oh.
In the indicator of return on assets, the result of the current activity of the analyzed period (profit) is compared with the organization's fixed and current assets (assets). With the help of the same assets, the organization will make a profit in subsequent periods of activity. Profit is mainly (almost 98%) the result of the sale of products (works, services). Sales proceeds is an indicator directly related to the value of assets: it consists of the natural volume and sales prices, while the natural volume of production and sales is determined by the value of the property.
Return on equity shows how many units of net profit each unit invested by the owner of the organization earned.
Return on permanent capital shows the effectiveness of the use of capital invested in the activities of the organization for a long time.
Thus, the system for analyzing the financial statements of organizations is based on an integrated approach to the analysis of indicators of their financial and economic activities, reflecting the availability, placement and use of financial resources of an enterprise, organization.
The methodology for analyzing the financial condition of economic entities includes:
- analysis of the profitability of the economic activity of an enterprise, organization;
- analysis of the financial stability of the organization;
- analysis of business activity of the organization;
- analysis of liquidity and market stability of the organization.
The analysis of the organization's financial statements is carried out by comparing its indicators for different reporting periods and recommended standard values and comparisons for organizations belonging to the same groups (by industry, types of products, number of employees, etc.).
The logical continuation of the process of compiling financial statements is its analysis and economic interpretation of the main indicators of reporting in order to assess the financial and economic condition of the organization. The chapter presents the basic algorithms of economic analysis, the information basis of which is the financial statements of the organization. A more complete presentation of the methods of economic analysis is presented in the specialized literature.
The analysis of financial statements consists of several stages (Fig. 22.1), while depending on the goals of the analysis, some types of analysis may not be performed, while others, on the contrary, should be performed in more depth with the involvement of additional sources of information.
Preliminary analysis of financial statements gives an idea of the quality of the information used and forms an overall assessment of the organization's dynamics and business viability.
The analysis of the financial condition of the organization is intended for an in-depth assessment of the liquidity, solvency and financial stability of the organization through the assessment of the liquidity of the balance sheet, the establishment of the type of financial stability of the organization, the calculation of the relevant coefficients.
A comprehensive analysis includes an assessment of the probability of bankruptcy and the creditworthiness of the organization based on the use of appropriate aggregated models, which, as a rule, use standard indicators of financial stability, profitability, and business activity of the organization.
With the help of predictive analysis, forecast indicators of the main financial documents of the organization are calculated: balance sheet, income statement and cash flow statement; based on the calculated indicators, an assessment of the prospective profitability, financial stability and liquidity of the organization is formed.
Estimating the value of an organization as a single property complex is intended to give an overall assessment of the success of a business and the effectiveness of its management, main goal which is often an increase market value organizations and thus increase the capital of its owners.
The final stage of the analysis is the formation of a general assessment of the organization's activities and the development of recommendations for improving its economic condition; recommendations should offer possible options solving the main problems of the organization identified during the analysis.
The information support of the analysis is the financial statements of the organization, considered as a single system of data on the property and financial position of the organization and on the results of its economic activity, the composition and content of the statements are presented in detail in Ch. 21. Information support of the analysis carried out according to the financial statements of the organization is given in Table. 22.1.
Rice. 22.1. Block diagram of the analysis of financial statements
Table 22.1
| Types of analysis | Accounting Forms |
|---|---|
| Analysis of compliance and consistency of financial statements forms | Forms No. 1, 2, 3.4, 5 |
| Express analysis of the organization | Forms No. 1, 2, 3.4, 5 |
| Analysis of the aggregated balance sheet and income statement | Forms No. 1, 2 |
| Horizontal and vertical analysis of the balance sheet and income statement | Forms No. 1, 2 |
| Balance liquidity analysis | Form No. 1 |
| Analysis of solvency, liquidity and financial stability ratios | Forms No. 1, 2 |
| Analysis of types of financial stability | Form No. 1 |
| Equity analysis | Forms No. 1, 2, 3 |
| Debt analysis | Forms No. 1, 2, 5 |
| Analysis of receivables and payables | Forms No. 1, 2, 5 |
| Analysis of profit and profitability | Forms No. 1, 2 |
| Cash flow analysis (direct method) | Form No. 4 |
| Cash flow analysis (indirect method) | Form No. 1 |
| Tax burden analysis | Forms No. 2, 4 |
| Business activity analysis | Forms №1,2 |
| Analysis of non-current assets | Forms No. 1, 5 |
| Fixed asset analysis | Forms No. 1, 5 |
| Analysis of current assets | Forms No. 1, 2 |
| Analysis of labor and wages | Forms No. 2, 5 |
| Analysis financial investments | Forms No. 1, 2, 5 |
| Analysis of organization costs and resource intensity of products | Forms No. 2, 5 |
| Marketing Analysis | Forms No. 1, 2 |
| Bankruptcy Probability Analysis | Forms No. 1, 2 |
| Analysis of the organization's creditworthiness | Forms No. 1, 2, 3, 4, 5 |
| Predictive analysis | Forms No. 1, 2, 3.4, 5 |
| Estimating the value of the organization | Forms No. 1, 2, 3, 4, 5 |
Analysis of the financial condition of the organization
where A - the assets of the organization,
З uv - debt of participants (founders) on contributions to the authorized capital;
About d - long-term obligations;
O kz - short-term liabilities on loans and credits;
3 kr - accounts payable,
З ud - debt to participants (founders) for the payment of income;
RPR - reserves for future expenses;
О pr - other short-term liabilities.
Factor analysis of changes in the value of net assets is performed using the formula:
where K y - authorized capital;
And в - own shares bought back from shareholders;
K d - additional capital,
K p - reserve capital,
P n - retained earnings;
U n - uncovered loss;
3 uv - debt of participants (founders) on contributions to the authorized capital;
DBP - deferred income.
In the process of analyzing the NAV, it is also necessary to pay attention to the following ratios (in Table 22.4 they are shown for joint-stock companies in accordance with the Federal Law "On Joint-Stock Companies").
Table 22.4
| Ratio | Characteristic |
|---|---|
| The difference between the value of a company's net assets and its authorized capital | The maximum amount of losses and withdrawals that a company can withstand before having to reduce the authorized capital (Article 35) |
| The difference between the value of the company's net assets and the amount authorized capital and reserve fund of the company | Potential opportunity to increase the authorized capital at the expense of property (Article 28) |
| The difference between the value of the net assets of the company and the amount of the authorized capital, the reserve fund of the company and the excess over the nominal value of the liquidation value of the placed preferred shares | Potential to pay dividends (Article 43) |
| The potential ability of the company to acquire its shares (Article 73) | |
| 10% of the company's net asset value | The maximum amount of funds allocated by the company for the redemption of shares (Article 76) |
Analysis of financial results and business activity of the organization
First of all, the analysis of the probability of bankruptcy is based on official methods: “Methodological provisions for assessing the financial condition of enterprises and establishing an unsatisfactory balance sheet structure” (approved by Order No. 31-p of August 12, 1994), (absence) of signs of fictitious or deliberate bankruptcy ”(approved by Order of the Federal Tax Service of October 8, 1999 No. 33-r).
The first method contains the calculation of current liquidity ratios, security own funds and restoration (loss) of solvency.
Current liquidity ratio (should be equal to or greater than 2):
where OA - current assets of the organization;
KO - short-term liabilities;
DBP - deferred income;
RPR - reserves for future expenses.
Equity ratio (should be equal to or greater than 0.1):
where KS - equity capital of the organization;
VA - non-current assets.
If at least one of the coefficients does not meet the standard values (the first is less than 2, the second is less than 0.1), the balance sheet structure is recognized as unsatisfactory, and the enterprise is insolvent. In this case, the solvency recovery ratio is calculated:
where k t is the actual value of the current liquidity ratio at the end of the reporting period;
Δk t - increase in the liquidity ratio for the period between the beginning and end of the reporting period;
6 - the period of restoration of solvency (equal to six months);
T - the duration of the reporting period in months.
The organization has the ability to restore solvency if the value of the solvency restoration coefficient is greater than one.
The coefficient of loss of solvency is calculated if both first coefficients satisfy the standard values:
where k y - coefficient of loss of solvency;
3 - period of loss of solvency (equal to three months).
The organization has the ability to lose solvency if the value of the coefficient of loss of solvency is less than one.
The described methodology has one significant drawback, which is that often successful, financially stable organizations analyzed by this methodology are qualified as having an unsatisfactory balance sheet structure and insolvent. This is due to the fact that the methodology sets a very strict current ratio (equal to or greater than 2), the normative value of which is not available to most Russian organizations.
The second technique involves the examination of the organization for signs of fictitious and deliberate bankruptcy. To analyze the signs of fictitious bankruptcy, the indicator of the security of the debtor's short-term obligations with its current assets is used:
where ОА" - current assets adjusted for the degree of liquidity (not enough liquid assets are reduced to their market value);
VAT - value added tax on acquired valuables;
Vsh - the amount of recognized fines, penalties and other financial (economic) sanctions.
A sign of fictitious bankruptcy is the ability of the debtor to satisfy the claims of creditors in full on the date of the debtor's application to the arbitration court with an application for declaring him insolvent (bankrupt). That is, if the coefficient value exceeds one, signs of fictitious bankruptcy are seen, since it is possible to fully repay short-term obligations.
To analyze the signs of intentional bankruptcy, three indicators are calculated.
The first of them is the ratio of the provision of the organization's obligations with all its assets:
where B" is the balance sheet currency adjusted for the degree of liquidity of assets (not enough liquid assets are reduced to their market value);
Porg - organizational expenses;
About - long-term and short-term obligations.
The second indicator of the methodology for analyzing the signs of intentional bankruptcy is the ratio of the organization's obligations to its current assets:
The third indicator is the value of net assets (its calculation is given in § 22.2 of this chapter).
A sign of intentional bankruptcy is a significant deterioration in the listed indicators. In addition, when examining the signs of deliberate bankruptcy, the conditions for making transactions that could lead to the bankruptcy of the organization are analyzed. When it is established that the security of creditors' claims has deteriorated and the transactions made by the debtor do not correspond to the existing market conditions, norms and customs of business turnover, signs of deliberate bankruptcy are seen.
In the process of interpreting the results obtained, it is worth basing the conclusions on the results of calculations using the second method, since it is more corresponds to modern Russian conditions.
In addition to state methods for assessing the probability of bankruptcy, there are numerous proprietary methods that operate on a much wider range of indicators and, in general, should be more adequate to achieve the goal. However, the disadvantage of the mentioned methods is that some of them, namely foreign methods (in particular, famous model E. Altman), do not fully meet the Russian specifics in terms of quantitative values of the parameters. Russian methods cannot be recognized as quite adequate, since the algorithms for constructing these models, which involve the use of a large amount of statistical data, have not been fully developed due to drastic changes in the operating conditions. Russian enterprises and the short-term existence of the market economy itself in Russia.
E. Altman's model, designed to predict the probability of bankruptcy, is a multifactorial regression equation of the following form:
where K 1 - the ratio of profit before interest and tax to the value of assets;
K 2 - the ratio of proceeds from the sale to the value of assets;
K 3 - the ratio of equity (in market value) to liabilities;
K 4 - ratio retained earnings to the value of assets;
K 5 - the ratio of own working capital to the value of assets.
With Z 2.9 - low probability of bankruptcy.
As can be seen from the presented dependence, the signs of bankruptcy can be not only liquidity problems, but also insufficient efficiency of the organization, in particular, low profitability and business activity.
Analysis of the probability of bankruptcy according to the method of R.S. Saifulin and G.G. Kadykova suggests determining the rating number in accordance with the following relationship:
where K 1 - the ratio of own working capital to current assets;
K 2 - the ratio of current assets to short-term liabilities;
K 3 - the ratio of revenue to the value of assets;
K 4 - the ratio of net profit to revenue;
K 5 - the ratio of net profit to equity.
To establish the degree of bankruptcy probability, the rule is used: if the rating number exceeds one, then bankruptcy is unlikely, and vice versa, if the number is less than one, then the bankruptcy probability is significant.
The presented methodology also considers the causes of bankruptcy of organizations more widely than state methods, pointing out low efficiency among them.
