What is an assessment of the financial condition of an enterprise. Assessment of the financial condition of the enterprise

25.09.2019

Grade financial condition The enterprise is built on the following actions:

collection of information and its analytical processing for a specific period of time to be assessed;
justification and classification of indicators used for such assessment;
calculating the resulting assessment indicator;
ranking of business entities by rating.

As a result of the high-quality implementation of the third stage of activity, the resulting rating assessment takes into account the full range of basic parameters of the financial and subject. In other words - full analysis economic activity.

Indicators of the financial condition of an enterprise include the following data: the production potential of a business entity, the profitability of its products, the efficiency of using available financial resources. This may also include the sources of formation, condition and placement of other means of the organization.

The justification and selection of the initial performance indicators of the enterprise are carried out based on the basic principles of the theory of finance, as well as the needs of the company’s management in assessment. After all, a qualitative assessment of the financial condition of an enterprise cannot be based on an arbitrary choice of indicators.

So, let's try to systematize the generally accepted indicators and organize them into four groups.

The first group includes such important indicators as the profitability of business entities. Based on the theory, profitability is calculated as the ratio of the net profit received to the amount of the enterprise's property (or its own funds).

The second group of indicators is responsible for company management. In this case, it is advisable to consider four generally accepted indicators of profit: balance sheet or gross, net, from sales of products and, finally, the general indicator - from all sales. The effectiveness of an organization's management is determined by the ratio of these profit indicators to the entity's revenue.

Assessing the financial condition of an enterprise based on indicators of the third group involves assessing the subject. This category coefficients are calculated in several ways:

Return of all types of assets - as a private revenue to the balance sheet currency;

Return on assets is the ratio of revenue to the value of fixed assets in combination with intangible assets;

Asset turnover (the number of their turnovers) is the ratio of the same revenue, but now to the value working capital.

The turnover of inventories, bank assets, and receivables is calculated in the same way, only the formula uses the value of inventories, the value of cash, and total receivables as the denominator, respectively.

Analysis of the financial condition of the organization using the fourth group of indicators is carried out by:

Estimates as a calculation of the ratio of all to the amount of obligations requiring urgent repayment;

Calculation of the critical liquidity ratio by the ratio of the total working capital, including cash, and receivables to urgent liabilities.

This group may also include indicators of the organization’s market stability: index of permanent asset; provision of working capital available to the enterprise to pay off debt on inventories and other costs.

A full assessment of the financial condition of an enterprise cannot be carried out without using such initial data as production volume and profit in the reporting period.

Under financial condition refers to the ability of an enterprise to finance its activities. It is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal and individuals, solvency and financial stability.

The financial condition can be stable, unstable and crisis. The ability of an enterprise to make timely payments and finance its activities on an expanded basis indicates its good financial condition.

Financial condition of the enterprise (FSP) depends on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, this has a positive effect on the financial position of the enterprise. And vice versa, as a result of underfulfillment of the plan for the production and sale of products, there is an increase in its cost, a decrease in revenue and the amount of profit and, as a result, a deterioration in the financial condition of the enterprise and its solvency

A stable financial position, in turn, has positive influence to fulfill production plans and provide production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the systematic receipt and expenditure of monetary resources, implementing accounting discipline, achieving rational proportions of equity and borrowed capital and its most efficient use.

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

Analysis of the financial condition of the organization involves the following stages.
1. Preliminary review of the economic and financial situation of the business entity.
1.1. Characteristics of the general direction of financial and economic activities.
1.2. Assessing the reliability of information in reporting articles.
2. Assessment and analysis of the economic potential of the organization.
2.1. Assessment of property status.
2.1.1. Construction of an analytical net balance.
2.1.2. Vertical balance sheet analysis.
2.1.3. Horizontal balance sheet analysis.
2.1.4. Analysis of qualitative changes in property status.
2.2. Assessment of financial situation.
2.2.1. Liquidity assessment.
2.2.2. Grade financial stability.
3. Assessment and analysis of the effectiveness of the financial and economic activities of the enterprise.
3.1. Assessment of production (core) activities.
3.2. Cost-benefit analysis.
3.3. Assessment of the situation on the securities market.

Information basis This methodology consists of a system of indicators given in Appendix 1.

8.1. Preliminary review of the economic and financial situation of the enterprise

The analysis begins with a review of the main performance indicators of the enterprise. This review should consider the following questions:
· property status of the enterprise at the beginning and end of the reporting period;
· operating conditions of the enterprise in the reporting period;
· results achieved by the enterprise in the reporting period;
· prospects for the financial and economic activities of the enterprise.

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

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

8.2. Assessment and analysis of the economic potential of the organization

8.2.1. Assessment of property status

The economic potential of an organization can be characterized in two ways: from the position of the property status of the enterprise and from the position of its financial position. Both of these aspects of financial and economic activity are interconnected - an irrational structure of property, its poor quality composition can lead to a deterioration in the financial situation and vice versa.

According to current regulations, the balance is currently compiled in net valuation. However, a number of articles are still regulatory in nature. For ease of analysis, it is advisable to use the so-called compacted analytical balance-net , which is formed by eliminating the influence of regulatory items on the balance sheet (currency) and its structure. To do this:
· the amounts under the article “Debt of participants (founders) for contributions to the authorized capital” reduce the amount equity and the amount of current assets;
· the value of the receivables and equity capital of the enterprise is adjusted by the amount of the article “Valuation reserves (“Provision for doubtful debts”)”;
· elements of balance sheet items that are homogeneous in composition are combined in the necessary analytical sections (long-term current assets, equity and borrowed capital).

The stability of the financial position of an enterprise largely depends on the feasibility and correctness of investing financial resources in assets.

During the operation of an enterprise, the value of assets and their structure undergo constant changes. Most general idea information about the qualitative changes that have taken place in the structure of funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting.

Vertical analysis shows the structure of the enterprise's funds and their sources. Vertical analysis allows us to move to relative estimates and conduct economic comparisons of the economic indicators of enterprises that differ in the amount of resources used, to smooth out the impact of inflationary processes that distort the absolute indicators of financial statements.

Horizontal analysis reporting consists of constructing one or more analytical tables in which absolute indicators are supplemented by relative growth (decrease) rates. The degree of aggregation of indicators is determined by the analyst. As a rule, basic growth rates are taken over a number of years (adjacent periods), which makes it possible to analyze not only changes in individual indicators, but also to predict their values.

Horizontal and vertical analyzes complement each other. Therefore, in practice, it is not uncommon to build analytical tables that characterize both the structure of financial statements and the dynamics of its individual indicators. Both of these types of analysis are especially valuable for inter-farm comparisons, as they allow you to compare the reporting of enterprises that differ in type of activity and production volumes.

Criteria qualitative changes The property status of an enterprise and the degree of their progressiveness include such indicators as:
· sum household assets enterprises;
· share of the active part of fixed assets;
· wear rate;
· share of quickly realizable assets;
· share of leased fixed assets;
· share of accounts receivable, etc.

Formulas for calculating these indicators are given in Appendix 2.

Let's consider their economic interpretation.

The amount of economic assets at the disposal of the enterprise. This indicator gives a generalized valuation of assets listed on the balance sheet of the enterprise. This is an accounting estimate that does not coincide with the total market valuation of its assets. The growth of this indicator indicates an increase in the property potential of the enterprise.

Share of the active part of fixed assets. The active part of fixed assets means machinery, equipment and vehicles. The growth of this indicator in dynamics is usually regarded as a favorable trend.

Wear rate. The indicator characterizes the share of the cost of fixed assets remaining to be written off as expenses in subsequent periods. The ratio is usually used in analysis as a characteristic of the state of fixed assets. The addition of this indicator to 100% (or one) is the coefficient suitability. The depreciation coefficient depends on the adopted methodology for calculating depreciation charges and does not fully reflect the actual depreciation of fixed assets. Likewise, the usefulness ratio does not provide an accurate estimate of their current value. This happens due to a number of reasons: the rate of inflation, the state of the market and demand, the correctness of determining the useful life of fixed assets, etc. However, despite the shortcomings and conventionality of wear and tear indicators, they have a certain analytical significance. According to some estimates, a wear rate of more than 50% is considered undesirable.

Renewal factor. Shows what portion of the fixed assets available at the end of the reporting period consists of new fixed assets.

Attrition rate. Shows what part of the fixed assets with which the enterprise began operations in the reporting period was disposed of due to disrepair and other reasons.

8.2.2. Financial position assessment

The financial position of an enterprise can be assessed from the point of view of short-term and long-term prospects. In the first case, the criteria for assessing the financial position are the liquidity and solvency of the enterprise, i.e. ability in a timely manner in full make payments on short-term liabilities.

Under liquidity any asset understand its ability to be transformed into cash, and the degree of liquidity is determined by the length of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of this type of asset.

Talking about liquidity of the enterprise, they mean the presence of working capital in an amount theoretically sufficient to repay short-term obligations, even if in violation of the repayment terms stipulated by the contracts.

Solvency means that the enterprise has cash and their equivalents sufficient for settlements on accounts payable requiring immediate repayment. Thus, the main signs of solvency are: a) the presence of sufficient funds in the current account; b) absence of overdue accounts payable.

It is obvious that liquidity and solvency are not identical to each other. Thus, liquidity ratios may characterize the financial position as satisfactory, but in essence this assessment may be erroneous if current assets have a significant share of illiquid assets and overdue receivables. We present the main indicators that allow us to assess the liquidity and solvency of an enterprise.

The amount of own working capital. Characterizes that part of the enterprise's equity capital that is the source of covering its current assets (i.e. assets with a turnover of less than one year). This is a calculated indicator that depends both on the structure of assets and on the structure of sources of funds. The indicator is especially important for enterprises engaged in commercial activities and other intermediary operations. All other things being equal, the growth of this indicator in dynamics is considered as a positive trend. The main and constant source of increasing equity is profit. It is necessary to distinguish between “working capital” and “own working capital”. The first indicator characterizes the assets of the enterprise (Section II of the assets of the balance sheet), the second - the sources of funds, namely the part of the enterprise's own capital, considered as a source of covering current assets. The amount of own working capital is numerically equal to the excess of current assets over current liabilities. A situation is possible when the value of current liabilities exceeds the value of current assets. The financial position of the enterprise in this case is considered as unstable; immediate measures are required to correct it.

Maneuverability of functioning capital. Characterizes that part of own working capital that is in the form of cash, i.e. funds with absolute liquidity. For a normally functioning enterprise, this indicator usually varies from zero to one. All other things being equal, the growth of the indicator in dynamics is considered as a positive trend. An acceptable indicative value of the indicator is established by the enterprise independently and depends, for example, on how high its daily need for available cash resources is.

Current ratio. Gives a general assessment of asset liquidity, showing how many rubles of current assets account for one ruble of current liabilities. The logic for calculating this indicator is that the company repays short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities, the enterprise can be considered to be operating successfully (at least in theory). The value of the indicator can vary by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend. In Western accounting and analytical practice, the following is given: critical value indicator - 2; however, this is only an indicative value, indicating the order of the indicator, but not its exact normative value.

Quick ratio. The indicator is similar to the current ratio; however, it is calculated over a narrower range of current assets. The least liquid part of them - industrial reserves - is excluded from the calculation. The logic of such an exception consists not only in the significantly lower liquidity of inventories, but, what is much more important, in the fact that the funds that can be gained in the event of a forced sale of inventories can be significantly lower than the costs of their acquisition.

The approximate lower value of the indicator is 1; however, this assessment is also conditional. When analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that determined its change. So, if the increase in the quick ratio was mainly due to growth. unjustified receivables, then this cannot characterize the activity of the enterprise from a positive side.

Absolute liquidity (solvency) ratio is the most stringent criterion for the liquidity of an enterprise and shows what part of short-term borrowed obligations can be repaid immediately if necessary. The recommended lower limit of the indicator given in Western literature is 0.2. Since the development of industry standards for these coefficients is a matter of the future, in practice it is desirable to analyze the dynamics of these indicators, supplementing it with a comparative analysis of available data on enterprises that have a similar orientation of their economic activities.

The share of own working capital in covering inventories. Characterizes that part of the cost of inventories that is covered by its own working capital. Traditionally has great value in the analysis of the financial condition of trading enterprises; the recommended lower limit of the indicator in this case is 50%.

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

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

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

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

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

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

Long-term investment structure coefficient. The logic for calculating this indicator is based on the assumption that long-term loans and borrowings are used to finance fixed assets and other capital investments. The ratio shows what part of fixed assets and other non-current assets is financed by external investors.

Long-term leverage ratio. Characterizes the capital structure. The growth of this indicator in dynamics is a negative trend, meaning that the enterprise is increasingly dependent on external investors.

Ratio of own and borrowed funds. Like some of the above indicators, this ratio provides the most general assessment of the financial stability of the enterprise. It has a fairly simple interpretation: its value, for example, equal to 0.178, means that for every ruble of own funds invested in the assets of the enterprise, there are 17.8 kopecks. borrowed funds. The growth of the indicator in dynamics indicates the increasing dependence of the enterprise on external investors and creditors, i.e. about some decrease in financial stability, and vice versa.

There are no uniform normative criteria for the considered indicators. They depend on many factors: the industry of the enterprise, the principles of lending, the existing structure of sources of funds, turnover of working capital, the reputation of the enterprise, etc. Therefore, the acceptability of the values of these coefficients, assessments of their dynamics and directions of change can only be established as a result of comparison by groups.

8.3. Assessment and analysis of the effectiveness of financial and economic activities

8.3.1. Business activity assessment

Business activity assessment is aimed at analyzing the results and effectiveness of current core production activities

An assessment of business activity at a qualitative level can be obtained by comparing activities of this enterprise and related enterprises in the field of investment of capital. Such qualitative (i.e. non-formalizable) criteria are: the breadth of markets for products; the availability of products exported; the reputation of the enterprise, expressed, in particular, in the fame of clients using the services of the enterprise, etc. Quantification is done in two directions:
· the degree of fulfillment of the plan (established by a higher organization or independently) in terms of key indicators, ensuring the specified rates of their growth;
· level of efficiency in using enterprise resources.

To implement the first direction of analysis, it is also advisable to take into account the comparative dynamics of the main indicators. In particular, the following ratio is optimal:

T pb > T r > T ak >100%,

where T pb > T r -, T ak - respectively, the rate of change in profit, sales, advanced capital (Bd).

This dependence means that: a) the economic potential of the enterprise increases; b) compared to the increase in economic potential, the volume of sales increases at a faster rate, i.e. enterprise resources are used more efficiently; c) profit increases at a faster pace, which, as a rule, indicates a relative decrease in production and distribution costs.

However, deviations from this ideal dependence are also possible, and they should not always be considered as negative; such reasons are: the development of new prospects for the application of capital, the reconstruction and modernization of existing production facilities, etc. This activity is always associated with significant investments of financial resources, which for the most part do not provide immediate benefits, but in the future can fully pay off.

To implement the second direction, various indicators can be calculated that characterize the efficiency of use of material, labor and financial resources. The main ones are production, capital productivity, inventory turnover, operating cycle duration, and advanced capital turnover.

At analysis of working capital turnover special attention should be given to inventories and accounts receivable. The less the financial resources in these assets are deadened, the more efficiently they are used, the faster they turn over, and the more they bring new profits to the enterprise.

Turnover is assessed by comparing the average balances of current assets and their turnover for the analyzed period. Turnovers when assessing and analyzing turnover are:
· for inventories – costs of production of sold products;
· for accounts receivable – sales of products by bank transfer (since this indicator is not reflected in the reporting and can be identified from the data accounting, in practice it is often replaced by an indicator of sales revenue).

Let us give an economic interpretation of turnover indicators:
· turnover in revolutions indicates the average turnover of funds invested in assets of this type during the analyzed period;
· turnover in days indicates the duration (in days) of one turnover of funds invested in assets of this type.

A generalized characteristic of the duration of the death of financial resources in current assets is operating cycle time indicator, i.e. how many days on average pass from the moment funds are invested in current production activities until they are returned in the form of revenue to the current account. This indicator largely depends on the nature of production activities; its reduction is one of the main internal tasks of the enterprise.

Performance indicators individual species resources are summarized in terms of equity capital turnover and fixed capital turnover, characterizing, respectively, the return on investment in the enterprise: a) the owner’s funds; b) all means, including those involved. The difference between these ratios is due to the degree of borrowing to finance production activities.

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

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

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

8.3.2. Profitability assessment

The main indicators of this block used in countries with market economy to characterize the profitability of investments in activities of a particular type, include return on capital advanced And return on equity. The economic interpretation of these indicators is obvious - how many rubles of profit account for one ruble of advanced (own) capital. The calculation of these indicators is given enough attention in topic No. 7.

8.3.3. Assessment of the situation on the securities market

This type of analysis is performed in companies registered on stock exchanges and listing their securities there. Analysis cannot be performed directly on financial reporting data - needed additional information. Since the terminology for securities in our country has not yet been fully developed, the given names of indicators are conditional.

Earnings per share. It is the ratio of net profit reduced by the amount of dividends on preferred shares to total number ordinary shares. It is this indicator that significantly influences the market price of shares. Its main drawback in analytical terms is spatial incomparability due to the unequal market value of shares of different companies.

Share value. It is calculated as the quotient of the stock's market price divided by its earnings per share. This indicator serves as an indicator of demand for shares of a given company, since it shows how much investors are willing to pay in at the moment per ruble of earnings per share. The relatively high growth of this indicator over time indicates that investors expect faster profit growth for this company compared to others. This indicator can already be used in spatial (interfarm) comparisons. Companies that have a relatively high value of the economic growth sustainability coefficient are, as a rule, characterized by a high value of the “share value” indicator.

Dividend yield of a stock. Expressed as the ratio of the dividend paid on a stock to its market price. In companies that expand their activities by capitalizing most of their profits, the value of this indicator is relatively small. The dividend yield of a stock characterizes the percentage return on capital invested in the company's shares. This is a direct effect. There is also an indirect one (income or loss), expressed in a change in the market price of the shares of a given company.

Dividend output. Calculated by dividing the dividend paid by the stock by the earnings per share. The most clear interpretation of this indicator is the share of net profit paid to shareholders in the form of dividends. The value of the coefficient depends on the investment policy of the company. Closely related to this indicator is the profit reinvestment coefficient, which characterizes its share aimed at developing production activities. The sum of the values of the dividend yield indicator and the profit reinvestment ratio is equal to one.

Share price ratio. It is calculated by the ratio of the market price of a stock to its book price. The book price characterizes the share of equity capital per share. It consists of the par value (i.e. the value stamped on the form of the share at which it is accounted for in the share capital), the share of issue profit (the accumulated difference between the market price of shares at the time of sale and their par value) and the share accumulated and invested in development of the company's profits. A value of the quotation ratio greater than one means that potential shareholders, when purchasing a share, are willing to give a price for it that exceeds the accounting estimate of the real capital per share at the moment.

In the process of analysis, strictly determined factor models can be used to identify and provide comparative characteristics the main factors that influenced the change in a particular indicator .

The above system is based on the following strictly determined factor dependence:

Where KFZ- coefficient of financial dependence, VA- the amount of assets of the enterprise, SK- own capital.

From the presented model it is clear that return on equity depends on three factors: profitability of economic activities, resource productivity and the structure of advanced capital. The significance of the identified factors is explained by the fact that they are in a certain sense summarize all aspects of the financial and economic activities of the enterprise, in particular the financial statements: the first factor summarizes form No. 2 “Profit and Loss Statement”, the second - the asset of the balance sheet, the third - the liability of the balance sheet.

8.4. Determination of an unsatisfactory balance sheet structure of an enterprise

Currently, most Russian enterprises are in difficult financial condition. Mutual non-payments between business entities, high tax and banking interest rates lead to enterprises becoming insolvent. An external sign of the insolvency (bankruptcy) of an enterprise is the suspension of its current payments and the inability to satisfy the demands of creditors within three months from the date of their due date.

In this regard, the issue of assessing the balance sheet structure becomes particularly relevant, since decisions on the insolvency of an enterprise are made upon recognition of the unsatisfactory structure of the balance sheet.

The main purpose of conducting a preliminary analysis of the financial condition of an enterprise is to substantiate the decision to recognize the balance sheet structure as unsatisfactory, and the enterprise as solvent in accordance with the system of criteria approved by the Government Resolution Russian Federation dated May 20, 1994 No. 498 “On some measures to implement legislation on the insolvency (bankruptcy) of enterprises.” The main sources of analysis are f. No. 1 " Enterprise balance sheet", f. No. 2 “Profit and Loss Statement.”

Analysis and assessment of the structure of the enterprise's balance sheet is carried out on the basis of indicators: current liquidity ratio; equity ratio.

The basis for recognizing the structure of the balance sheet of an enterprise as unsatisfactory, and the enterprise as insolvent, is one of the following conditions:
the current liquidity ratio at the end of the reporting period is less than 2; (K tl);
the equity ratio at the end of the reporting period is less than 0.1. (K oss).

The main indicator characterizing whether an enterprise has a real opportunity to restore (or lose) its solvency during a certain period is the coefficient of restoration (loss) of solvency. If at least one of the coefficients is less than the standard ( K tl<2, а K oss<0,1), то рассчитывается коэффициент восстановления платежеспособности за период, установленный равным шести месяцам.

If the current liquidity ratio is greater than or equal to 2, and the equity ratio is greater than or equal to 0.1, the loss of solvency ratio is calculated for a period set to three months.

Solvency recovery ratio By sun is defined as the ratio of the estimated current liquidity ratio to its standard. The estimated current liquidity ratio is defined as the sum of the actual value of the current liquidity ratio at the end of the reporting period and the change in the value of this ratio between the end and the beginning of the reporting period in terms of the period of restoration of solvency, set equal to six months:

Where K NTL- standard value of the current liquidity ratio,
K NTL= 2;6 - period of restoration of solvency for 6 months;
T - reporting period, months.

The solvency restoration coefficient, which takes a value greater than 1, indicates that the enterprise has a real opportunity to restore its solvency. The solvency restoration coefficient, which takes a value less than 1, indicates that the enterprise has no real opportunity to restore solvency in the next six months.

The loss of solvency coefficient K y is defined as the ratio of the calculated current liquidity ratio to its established value. The estimated current ratio is defined as the sum of the actual value of the current ratio at the end of the reporting period and the change in the value of this ratio between the end and the beginning of the reporting period, recalculated for the period of loss of solvency, set equal to three months:

Where That- period of loss of solvency of the enterprise, months.

The calculated coefficients are entered into the table (Table 29), which is available in the appendices to the “Methodological provisions for assessing the financial condition of enterprises and establishing an unsatisfactory balance sheet structure.”

Table 29

Assessing the structure of an enterprise's balance sheet

Indicator name	At the beginning of the period	At the time of establishing solvency	coefficient

Current ratio			At least 2
Own funds ratio			Not less than 0.1
The coefficient of restoration of solvency of the enterprise. According to this table, calculation using the formula: page lrp.4+6: T(page 1gr.4-page 1gr.Z)			Not less than 1.0
The coefficient of loss of solvency of the enterprise. According to this table, calculation according to the formula: line 1gr.4+3: T (line 1gr.4-tr.1gr.Z), where T takes values of 3, 6, 9 or 12 months

Questions for self-control
1. What is the procedure for analyzing the financial condition of an enterprise?
2. What are the sources of information for analyzing financial condition?
3. What is the essence of vertical and horizontal analysis of an enterprise’s balance sheet?
4. What are the principles of constructing an analytical balance - net?
5. What is the liquidity of an enterprise and how does it differ from its solvency?
6. On the basis of what indicators is the liquidity analysis of an enterprise carried out?
7. What is the concept and assessment of the financial stability of an enterprise?
8. What indicators are used to analyze the business activity of an enterprise?
9. Under what conditions are solvency recovery rates calculated?

Financial condition refers to the ability of an enterprise to finance its activities. It is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability.

To ensure financial stability, an enterprise must have a flexible capital structure and be able to organize its movement in such a way as to ensure a gradual excess of income over expenses in order to maintain solvency and create conditions for self-reproduction.

Consequently, the financial stability of an enterprise is the ability of an enterprise to function and develop, to maintain a balance of its assets and liabilities in a changing internal and external sphere, guaranteeing its constant solvency and investment attractiveness within the acceptable level of risk.

The financial condition of an enterprise, its sustainability and stability depend on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, this has a positive effect on the financial condition of the enterprise. And, conversely, as a result of underfulfillment of the plan for the production and sale of products, there is an increase in its cost, a decrease in revenue and the amount of profit and, as a consequence, a deterioration in the financial condition of the enterprise and its solvency. Consequently, a stable financial condition is not a fluke, but the result of competent, skillful management of the entire complex of factors that determine the results of the enterprise’s economic activities.

A stable financial condition, in turn, has a positive impact on the implementation of production plans and the provision of production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the systematic receipt and expenditure of monetary resources, implementing accounting discipline, achieving rational proportions of equity and borrowed capital and its most efficient use.

It is very important to constantly analyze the financial condition of the enterprise. The main goal of the analysis is to promptly identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency. In this case, it is necessary to solve the following problems:

Based on a study of the relationship between various indicators of production, commercial and financial activities, assess the implementation of the plan for the receipt of financial resources and their use from the perspective of improving the financial condition of the enterprise;

Forecast possible financial results, economic profitability based on various conditions of economic activity, the availability of own and borrowed resources and developed models of financial condition for various options for using resources.

Develop specific measures aimed at more efficient use of financial resources and strengthening the financial condition of the enterprise.

Analysis of the financial condition of an enterprise includes the following main stages:

Analysis of the structure of assets and liabilities;

Analysis of property status;

Express analysis of financial condition;

Analysis of liquidity and solvency;

Financial stability analysis;

Analysis of business activity;

Cost-benefit analysis;

Assessing the probability of bankruptcy.

Analysis of the financial condition is carried out not only by the managers and relevant services of the enterprise, but also by its founders, investors in order to study the efficiency of the use of resources, banks to assess lending conditions and determine the degree of risk, suppliers to receive timely payments, tax inspectorates to fulfill the budget revenue plan etc. In accordance with this, there are two types of analysis of the financial condition of an enterprise: external and internal.

Financial analysis, based only on public accounting data, takes on the character of external analysis, i.e. analysis carried out outside the enterprise by interested contractors, owners or government agencies. When analyzing only public reporting data, a very limited part of information about the activities of the enterprise is used, which does not allow revealing all aspects of the company’s activities.

External analysis is carried out by investors, suppliers of material and financial resources, and regulatory authorities based on published reports. Its goal is to establish the opportunity to invest funds profitably in order to ensure maximum profit and eliminate the risk of loss.

Internal financial analysis aims to conduct a more in-depth study of the reasons for the current financial condition, the efficiency of use of fixed and working capital, and the relationship between volume indicators, cost and profit. For this purpose, financial accounting data are additionally used as sources of information.

Internal users include managers at all levels: accounting, financial, economic departments and other services of the enterprise, and its numerous employees. Each of them uses information based on their interests. Thus, it is important for a financial manager to know a real assessment of the activities of his company and its financial condition, and the head of a marketing service cannot do without it when developing a strategy for promoting products on the market.

Management analysis is exclusively internal. It uses the entire range of economic information, is operational in nature and is completely subordinate to the will of the enterprise management. Only such an analysis allows you to really assess the state of affairs at the enterprise, examine the cost structure of not only all manufactured and sold products, but also its individual types, the composition of commercial and administrative expenses, with special care to study the nature of the responsibility of officials for the implementation of the business plan.

Management analysis data plays a decisive role in the development of the most important issues of the enterprise's competitive policy: improving technology and production organization, creating a mechanism for achieving maximum profit. That is why the results of management analysis are not subject to publicity; they are used by the management of the enterprise to make management decisions, both operational and long-term.

Internal analysis is carried out by enterprise services, and its results are used for planning, monitoring and forecasting the financial condition of the enterprise. Its goal is to establish a systematic flow of funds and allocate own and borrowed funds in such a way as to ensure the normal functioning of the enterprise, obtain maximum profit and avoid bankruptcy.

The basis for information support for both internal and external financial analysis of the state of the enterprise should be financial statements, which are uniform for the organization of all industries and forms of ownership.

In a market economy, the financial statements of business entities become the main means of communication and the most important element of information support for financial analysis. Summarized, the most important indicators of the financial results of the enterprise are presented in Form No. 2 of the annual and quarterly financial statements.

Any enterprise, to one degree or another, constantly needs additional sources of financing. You can find them on the capital market, attracting potential investors and creditors by objectively informing them about your financial and economic activities, that is, mainly through financial statements. How attractive the published financial results are, showing the current and future financial condition of the enterprise, is the likelihood of obtaining additional sources of financing.

The main requirement for information presented in reporting is that it be useful to users, that is, that the information can be used to make informed business decisions. To be useful, information must meet the following criteria:

Relevance means that the information is meaningful and influences the user's decision. Information is also considered relevant if it allows for prospective and retrospective analysis.

The reliability of information is determined by its veracity, the predominance of economic content over the legal form, the possibility of verification and documentary validity.

Information is considered truthful if it does not contain errors and biased assessments, and also does not falsify economic events.

Neutrality implies that financial reporting does not emphasize the interests of one group of users of common statements to the detriment of another.

Understandability means that users can understand the content of the reporting without special training.

Comparability requires that data about the activities of an enterprise be comparable with similar information about the activities of other firms.

During the preparation of reporting information, certain restrictions on the information included in the reporting must be observed:

The optimal balance of costs and benefits, which means that the costs of reporting should be reasonably related to the benefits that the enterprise derives from presenting this data to interested users.

The principle of prudence (conservatism) suggests that reporting documents should not allow an overestimation of assets and profits and an underestimation of liabilities.

Confidentiality requires that reporting information does not contain data that could harm the competitive position of the enterprise.

Thus, financial condition refers to the ability of an enterprise to finance its activities. It is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability.

The financial condition of an enterprise depends on the results of its production, commercial and financial activities.

The main goal of financial activity is to decide where, when and how to use financial resources for the effective development of production and obtaining maximum profits, and the main goal of financial analysis is to promptly identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency.

In the process of analyzing the financial condition of an enterprise, special techniques and methods are used.

The method of analyzing the financial condition of an enterprise is understood as a way of approaching the study of the financial condition and financial processes in their formation and development.

The characteristic features of the method include: the use of a system of indicators, identifying and changing the relationship between them.

There are various classifications for analyzing the financial condition of an enterprise (Fig. 9).

Rice. 9.

The first level of classification distinguishes between informal and formalized methods of analysis.

Informal methods are based on describing analytical procedures at a logical level, rather than on strict analytical dependencies. These include methods: expert assessments, scenarios, psychological, morphological, comparisons, construction of systems of indicators, construction of systems of analytical tables, etc. The application of these methods is characterized by the experience, knowledge and intuition of the analyst.

Formalized methods of analysis can be divided into two groups: traditional and mathematical (quantitative) they constitute the second level of classification.

Traditional methods include the main methods of analyzing financial statements:

horizontal analysis;

vertical analysis;

trendy;

method of financial ratios;

comparative analysis;

factor analysis.

Horizontal (time) analysis - comparison of each reporting item for the current period with the previous period.

Vertical (structural) analysis - determining the structure of the final financial indicators, identifying the impact of each reporting position on the result as a whole.

Trend analysis - comparison of each reporting item with a number of previous periods and determination of the trend. With the help of a trend, possible values of indicators in the future are formed, and, therefore, a prospective analysis is carried out.

Analysis of relative indicators (coefficients) - calculation of relationships between individual report items or positions of different reporting forms, determination of the relationship between indicators. Financial ratios are relative indicators of the financial condition of an organization, calculated as ratios of absolute indicators of financial condition or their linear combinations and divided into distribution coefficients and coordination coefficients.

Distribution coefficients are used in cases where it is necessary to determine what part a particular absolute indicator of financial condition makes up of the total of the group of absolute indicators that includes it. Coordination coefficients are used to express relations between absolute indicators of financial condition that have different economic meanings, or their linear combinations.

Analysis of financial ratios consists of comparing their values with basic values, as well as studying their dynamics for the reporting period and for a number of years. The average indicators of a given organization related to previous periods are used as basic values; average industry or national economic values of indicators; indicator values calculated by the most successful competitor's submitted reports. In addition, theoretically justified values or values obtained as a result of expert surveys that characterize the optimal or critical values of relative indicators from the point of view of the stability of the financial condition can serve as a basis for comparison. Such values actually serve as standards for financial ratios, although methods for calculating them depending, for example, on the industry of production, have not yet been created, since at present the set of relative indicators used to analyze the financial condition of the organization is not established and therefore lacks full systemic orderliness . An excessive number of indicators are often offered. For an accurate and complete description of the financial condition of an organization and trends in its changes, a relatively small number of financial ratios is sufficient. It is important that each of these indicators reflects the most significant aspects of the financial condition. The system of relative financial ratios according to economic meaning can be divided into four groups:

indicators for assessing the profitability of the organization (profitability of sales, products and capital productivity);

indicators for assessing market sustainability;

indicators for assessing balance sheet liquidity as the basis for solvency;

solvency indicators.

The system of financial ratios, due to its simplicity and unambiguity, is widely used to analyze the creditworthiness of an enterprise, diagnose bankruptcy, and in the system of state regulation of banking and other financial activities.

Comparative analysis is an intra-farm analysis of the summary indicators of divisions, workshops, subsidiaries, etc., and an inter-farm analysis of the enterprise in comparison with data from competitors, with industry averages and average general economic data.

Factor analysis is an analysis of the influence and individual factors (reasons) on a performance indicator using deterministic and stochastic research techniques. Factor analysis can be either direct or inverse, that is, synthesis is the combination of individual elements into a common effective indicator.

The classification of quantitative methods can be presented as follows:

statistical methods;

accounting methods;

economic and mathematical methods.

Statistical methods include:

observation method - recording information according to certain principles and for certain purposes;

method of absolute and relative indicators (coefficients);

method of calculating average values - arithmetic simple, weighted, geometric averages;

time series method - determination of absolute growth, relative growth, growth rate, growth rate;

method of summarizing and grouping economic indicators according to certain characteristics;

comparison method - with competitors, with standards, in dynamics;

chain substitution method.

The main goal of statistical analysis of financial condition is to trace the dynamics and structure of changes in the financial condition of an enterprise by assessing changes in key financial indicators.

The simplest method is comparison, when the financial indicators of the reporting period are compared either with planned indicators or with indicators for the previous period (baseline). When comparing indicators for different periods, it is necessary to ensure their comparability, i.e. indicators should be recalculated taking into account the homogeneity of the constituent elements, inflationary processes in the economy, assessment methods, etc.

The next method is grouping, when indicators are grouped and tabulated. This makes it possible to carry out analytical calculations, identify trends in the development of individual phenomena and their relationships, and factors influencing changes in indicators.

The chain substitution or elimination method involves replacing a separate reporting indicator with a basic one. At the same time, all other indicators remain unchanged. This method allows you to determine the influence of individual factors on the overall financial indicator.

Recently, due to the widespread introduction of computer technology, the process of statistical analysis of the financial position of a commercial enterprise has been significantly simplified. Any competent economist is able to write programs for calculating financial indicators using standard spreadsheets and thereby free himself from the monotonous calculation part and focus directly on analysis and forecasting.

Accounting methods include:

double entry method;

balance sheet method.

Any business transaction necessarily has duality and reciprocity. To preserve these properties and control the records of business transactions in accounts, the double entry method is used in accounting. Double entry is an entry as a result of which each business transaction is reflected in the accounting accounts twice: in the debit of one account and at the same time in the credit of another account associated with it for the same amount. Moreover, entries in the accounts are made in such a way that the debit of one account can be interconnected with the credit of one or more accounts, and the credit of one account with the debit of one or more accounts in the same amounts. Thanks to the double entry method, accounting objects are reflected in the accounts in a mutual connection, which is important for control.

In order to be able to assess the effectiveness of the use and placement of cash and other funds for the reporting period, the company’s accountant draws up a balance sheet. The term “balance” (from the Latin bis - twice and lanx - scales) means two cups and is used as a symbol of balance, equality. The balance sheet method as a way of presenting data in the form of two-sided tables with equal totals is widely used in planning, accounting and economic analysis. The balance sheet represents the calculation (calculation) as of a certain date of the enterprise’s funds in monetary value and in two sections: by the composition and location of these funds (balance sheet asset) and by their sources, return periods and intended purpose (balance sheet liability). The same level of both parts of the balance sheet (asset equals liability) serves as clear evidence of the equality of the values placed in each of them.

Currently, the balance sheet is a source of information for determining indicators of the solvency of an enterprise, its financial stability, both for enterprise managers to maintain an optimal ratio of own and borrowed funds, and for credit institutions and lenders when making a decision on issuing a loan. One of the founders of balance science. Blatov N.A. identifies two areas of study of balance:

the first direction is counting analysis: “analyzes the balance sheet as a counting category, as a synthesis of counting records from a formal technical point of view, for the purpose of conscious and critical reading of the balance sheet: studies the structure of the balance sheet, its decomposition, the relationship of its parts, the correctness of the balance sheet, in connection with the current accounting system, the correctness of estimates, methods for correcting and simplifying the balance sheet"

the second direction is economic analysis: “analyzes the balance sheet as an accounting and economic category, as a kind of graphic representation of the property status and economic work of an enterprise, from the point of view of its content, for the purpose of productive use of the findings in the future: studies the rational use of raised funds, the significance of the results achieved , compliance with their planned targets, provides a basis for further planning, reveals certain trends in the development of activities"

Thus, N.A. Blatov identifies two areas of analysis, the first of which examines the balance sheet from the formal side, and the second area of analysis studies the balance sheet from the point of view of its content. Accounting analysis precedes economic analysis. According to N.A. Blatov’s task of economic analysis is to “study its property status from the balance sheet of a given economy, determine its financial stability and economic power, how rationally and in accordance with the plan economic work was carried out in it during the reporting period, determine the true value and significance of the results achieved.” , establish the correctness of capital distribution and capital use and, finally, identify existing trends in the economy towards development or regression, both as a whole and in individual parts"

Economic and mathematical methods include:

methods of elementary mathematics;

classical methods of mathematical analysis - differentiation, integration, calculus of variations;

methods of mathematical statistics - the study of one-dimensional and multidimensional statistical aggregates;

econometric methods - statistical estimation of parameters of economic dependencies;

methods of mathematical programming - optimization, linear, quadratic and nonlinear programming, block and dynamic programming;

methods of operations research - game theory, scheduling theory, methods of economic cybernetics;

heuristic methods;

methods of economic-mathematical modeling and factor analysis.

Despite the variety of methods for analyzing financial condition, the process of financial analysis is carried out on the basis of general principles, the application of which is an important prerequisite for ensuring its high level.

The general principles of financial analysis are:

subsequence;

complexity;

comparison of indicators;

use of scientific apparatus (tools);

systematicity.

Most often, statistical and accounting methods are used when conducting financial analysis. Recently, factor analysis of the financial and economic indicators of an enterprise, based on the use of economic and mathematical methods, has become widespread.

Many mathematical methods: correlation analysis, regression analysis, and others entered the circle of analytical developments much later.

Methods of economic cybernetics and optimal programming, economic methods, methods of operations research and decision theory can certainly find direct application within the framework of financial analysis.

However, not all of the listed methods can be used in all cases of financial analysis, since their application largely depends on the analyst.

The financial condition analysis technique is a set of analytical procedures used to determine the financial and economic condition of an enterprise.

Analytical procedures represent the analysis and assessment of the information received, the study of the financial and economic indicators of the economic entity being audited.

The detailing of the procedural side of the financial condition analysis methodology depends on the goals set and various factors of information, methodological, personnel and technical support. Thus, there is no generally accepted methodology for analyzing the financial and economic condition of an enterprise.

Information support is important for analysis. This is due to the fact that, in accordance with the Law of the Russian Federation “On Informatization and Information Protection,” an enterprise may not provide information containing a trade secret. But usually, for many decisions to be made by potential partners of a company, it is sufficient to conduct an express analysis of financial and economic activities. Even to conduct a detailed analysis of financial and economic activities, information constituting a trade secret is often not required. To conduct a general detailed analysis of the financial and economic activities of an enterprise, information is required according to the established forms of financial statements. Basically, the assessment of financial condition is carried out according to the quarterly and annual financial statements, primarily according to the balance sheet and profit and loss statement. Analysis of the balance sheet makes it possible to:

determine the degree of provision of the organization with its own working capital;

establish due to which items the amount of working capital has changed;

assess the overall financial condition of the organization even without calculating analytical indicators.

Balance analysis can be done:

directly on the balance sheet without first changing the composition of balance sheet items;

by constructing an analytical balance by aggregating some articles of homogeneous composition;

by clearing the balance sheet of the regulators present in it, followed by aggregation of items in the necessary analytical sections.

For a general assessment of the financial condition of the organization, they draw up an analytical balance sheet, in which homogeneous items are grouped. This allows you to reduce the number of balance sheet items, which increases its visibility and allows you to compare it with the balance sheets of other organizations.

Information about shortcomings in the work of a commercial organization may be directly present in the financial statements in an explicit or veiled form. The first case occurs when there are “sick” items in the reporting, which can be conditionally divided into groups indicating:

the extremely unsatisfactory performance of the organization in the reporting period and the resulting poor financial position;

certain shortcomings in the organization's work.

The first group includes “Uncovered loss of previous years”, “Uncovered loss of the reporting year”. The second group, in particular, includes such articles as: “Settlements with debtors for goods (work, services)”, which includes unjustified receivables; “Settlements with personnel for other operations”, which may reflect unjustified receivables in the form of settlements with financially responsible persons in case of shortages, damage, theft; “Other assets”, which may include shortages and losses from damage to inventory items that are not written off from the balance sheet in the prescribed manner; “Settlements with creditors for goods and services,” which includes unjustified accounts payable.

Then an assessment is made of changes in the balance sheet currency for the analyzed period. Here you can limit yourself to comparing the results of the balance sheet currency at the end and at the beginning of the reporting period (reducing by the amount of losses) and determine the increase or decrease in absolute terms. At the same time, it is advisable to compare the balance with the planned balance, with the balances of previous years, with data from competing organizations.

Next, it is advisable to conduct horizontal and vertical balance analyzes. Horizontal and vertical analysis complement each other, as they make it possible to compare the reporting of organizations of different types of activities and production volumes. They are often carried out using data from Form No. 2. For investors, this form is in many respects more important than the balance sheet, since it contains not frozen, one-time, but dynamic information about what successes the organization has achieved during the year and due to what aggregated factors, what the scale of its activities is. Horizontal and vertical analysis of an enterprise's financial statements is an effective means for studying the state of the enterprise and the effectiveness of its activities. Recommendations made on the basis of this analysis are constructive in nature and can significantly improve the state of the enterprise if they can be implemented. At the same time, the possibilities of this type of analysis are limited under conditions of strong inflation, which is typical at present. In fact, inflation greatly distorts the results of comparing the values of balance sheet items in the process of horizontal analysis, since the valuation of different groups of assets experiences different effects of inflation. Under the condition of high turnover of working capital, the assessment of their main components (accounts receivable and inventory) manages to take into account changes in the price index for material resources, both entering the enterprise and leaving it in the form of finished products. At the same time, the assessment of a company's fixed assets, made on the basis of the principle of historical cost, does not have time to take into account the inflationary increase in their real value. To eliminate this shortcoming, the state introduces the so-called indexation of fixed assets, which allows, using certain increasing factors, to increase the book value of fixed assets. However, in real practice, these increasing coefficients are not able to take into account real inflation levels. This leads to a significant disproportion in the structure of the enterprise's assets, and, therefore, also distorts the results of vertical analysis.

Explanations to the balance sheet and profit and loss report reveal the essence of the reporting information presented, the accounting policies of the organization and provide users of the financial statements with additional data that are necessary for a real assessment of the property, financial position of the organization and the financial result of its activities.

Almost all users of an organization's financial statements use financial analysis methods to make decisions to optimize their interests. It is absolutely clear that the quality of decisions made directly depends on the quality of the analytical justification, the accuracy of calculations and the completeness of the initial information.

Analysis of the balance sheet structure also involves classifying assets by the degree of their liquidity, and liabilities by the speed of their repayment.

For the convenience of carrying out such analysis and assessments of the structure of assets and liabilities of the balance sheet, its items are subject to grouping into separate specific groups.

The main characteristics of the grouping of asset items are the degree of their liquidity, i.e., the speed of conversion into cash, and the direction of use of assets in the enterprise’s economy. Depending on the degree of liquidity, the assets of an enterprise are divided into two large groups:

non-current assets (immobilized funds);

current assets (mobile assets).

Current (mobile) assets are more liquid than non-current (immobilized) assets.

The liabilities of the balance sheet reflect the sources of funds of the enterprise as of a certain date. They are divided into the following groups:

sources of own funds (capital and reserves);

long-term liabilities (credits and borrowings);

short-term liabilities (credits, borrowings, settlements with creditors and other liabilities).

Assets are arranged in descending order of liquidity, starting with cash and ending with intangible assets. The liability balance begins with the most in demand part of it and ends with own funds. This procedure for presenting balance sheet assets and liabilities, on the one hand, is accepted in many Western accounting standards; on the other hand, it concentrates the analyst’s attention on the most important items for the company, since cash and short-term liabilities have the greatest impact on the assessment of the company’s property and its financial state. In contrast, intangible assets, as a rule, cannot be sold at all, and own funds are not in demand.

Analysis of the balance sheet structure shows:

the ratio of current and permanent assets, as well as sources of their financing;

ratio of equity to liabilities;

share in liabilities owed to the budget, banks and labor collective;

which items are growing at a faster pace and how this affects the structure of the balance sheet;

what is the distribution of borrowed funds by maturity.

Analyzing the activities of an enterprise, an economist must understand the causes and consequences of a given state of the enterprise. Knowing the main activities aimed at improving the financial and economic condition of the enterprise, he must determine, in accordance with the existing tasks and goals of the enterprise, those activities that will significantly and at minimal cost help change the current state of both the enterprise and create a springboard for the future.

The final stage of the analysis methodology is the use of financial ratios in the areas of analysis. Most often there are three main directions:

analysis of liquidity and solvency indicators;

analysis of business activity indicators;

analysis of financial stability indicators;

analysis of profitability indicators.

The external manifestation of financial stability is solvency. Solvency is the ability of an enterprise to timely and fully fulfill its payment obligations arising from trade, credit and other payment transactions. The assessment of the solvency of the enterprise is determined on a specific date.

The assessment of solvency on the balance sheet is carried out on the basis of the liquidity characteristics of current assets, which is determined by the time required to convert them into cash. The less time it takes to collect a given asset, the higher its liquidity. Balance sheet liquidity is the ability of a business entity to convert assets into cash and pay off its payment obligations, or more precisely, it is the degree to which the enterprise’s debt obligations are covered by its assets, the period of conversion of which into cash corresponds to the period of repayment of payment obligations. It depends on the degree of correspondence between the amount of available means of payment and the amount of short-term debt obligations.

Liquidity of an enterprise is a more general concept than balance sheet liquidity. The liquidity of an enterprise is its ability to pay off all necessary short-term obligations, or the ability of working capital to turn into cash necessary for the normal financial and economic activities of the enterprise. In other words, an enterprise is considered liquid if it is able to meet its short-term obligations by selling current assets. Fixed assets (unless they are acquired for the purpose of further resale), as a rule, are not sources of repayment of the current debt of the enterprise due to their specific role in the production process and, as a rule, due to the difficult conditions for their urgent sale.

Balance sheet liquidity presupposes the search for means of payment from outside, if it has an appropriate image in the business world and a sufficiently high level of investment attractiveness.

The concepts of liquidity and solvency are very close, but the second is more capacious. Solvency depends on the degree of liquidity of the balance sheet and the enterprise. At the same time, liquidity characterizes both the current state of settlements and the future. An enterprise may be solvent at the reporting date, but at the same time have unfavorable opportunities in the future, and vice versa.

The concept of liquidity can be viewed from various points of view. Thus, we can talk about the liquidity of the enterprise’s balance sheet, which is defined as the degree to which the enterprise’s liabilities are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of the obligations. Asset liquidity is the reciprocal of balance sheet liquidity in terms of the time it takes for assets to be converted into cash: the less time it takes for a given type of asset to acquire a monetary form, the higher its liquidity.

Analysis of balance sheet liquidity consists of comparing funds for assets, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liabilities for liabilities, grouped by their maturity dates and arranged in ascending order of maturity (Table 5).

Table 5 Grouping of balance sheet funds and liabilities

Indicator	Calculation (sum of balance sheet lines)

	p.250+p.260
	p.230+p.240+p.270
	p.210+p.220+p.140
	p.190 - p.140

	p.620 + p.630 + p.640 + p.650
	p.610+p.660

	p.490 - p.216

Depending on the degree of liquidity, that is, the speed of conversion into cash, the assets of the enterprise are divided into four groups:

the most liquid funds (A1) - all types of funds (cash and non-cash);

quickly realizable assets (A2) - short-term financial investments (securities with a maturity of up to 12 months), investments that require a certain time to convert into cash; this group of assets includes accounts receivable, payments for which are expected within 12 months after the reporting period dates, other current assets;

average realizable assets (A3) - long-term financial investments (all other securities), inventories of raw materials, materials, low-value and wear-and-tear items, work in progress, accounts receivable, payments for which are expected more than 12 months after the reporting date, other inventories and costs;

hard-to-sell or illiquid assets (A4) - property intended for current business activities (intangible assets, fixed assets and equipment for installation, capital and long-term financial investments, that is, the result of section 1 of the balance sheet asset);

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

the most urgent obligations (P1) are accounts payable;

short-term borrowed funds (P2) - bank loans subject to repayment within 12 months and other short-term liabilities;

long-term liabilities (P3) - long-term liabilities, debt to participants for payment of income, future income, reserves for future expenses, other liabilities;

permanent (stable) liabilities (P4) - the result of section 3 of the liability balance sheet “Capital and reserves”.

The balance is considered absolutely liquid if the following relationships simultaneously occur:

If the first three inequalities are satisfied in a given system, then this entails the fulfillment of the fourth inequality, so it is important to compare the results of the first three groups for assets and liabilities.

If the liquidity of the balance sheet differs from absolute, then it can be considered normal if the following relations are observed:

In the case when one or more inequalities of the system have the opposite sign from that fixed in the optimal version, the liquidity of the balance sheet differs to a greater or lesser extent from the absolute value. At the same time, the lack of funds in one group of assets is compensated by their surplus in another group in the valuation; in a real situation, less liquid assets cannot replace more liquid ones.

To analyze the liquidity of the balance sheet, a table is compiled. The columns of this table record data at the beginning and end of the reporting period from the comparative analytical balance sheet by asset and liability groups. By comparing the results of these groups, the absolute values of payment surpluses or deficiencies at the beginning and end of the reporting period are determined.

To assess the solvency and liquidity of an enterprise, the following financial ratios are used.

Current liquidity ratio - gives a general assessment of the liquidity of assets, showing how many rubles of the enterprise's current assets are per ruble of current liabilities. The logic for calculating this indicator is that the company pays off short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities, the enterprise can be considered to be operating successfully (at least in theory). The size of the excess is set by the current liquidity ratio. The value of the indicator may vary by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend. In Western accounting and analytical practice, the critical lower value of the indicator is given - two, but this is only an approximate value, indicating the order of the indicator, but not its exact standard value.

The formula for calculating the current ratio looks like this:

where OBA are current assets taken into account when assessing the balance sheet structure - this is the total of the second section of the balance sheet of Form No. 1 (line 290) minus line 230 (accounts receivable, payments for which are expected more than 12 months after the reporting date);

KDO - short-term debt obligations - this is the result of the fourth section of the balance sheet (line 690) minus lines 640 (deferred income) and 650 (reserves for future expenses and payments).

Quick (intermediate) liquidity ratio - the purpose of the indicator is similar to the current liquidity ratio; however, it is calculated based on a narrower range of current assets, when the least liquid part of them—industrial inventories—is excluded from the calculation. The logic of such an exception consists not only in the significantly lower liquidity of inventories, but, what is much more important, in the fact that the funds that can be gained in the event of a forced sale of inventories can be significantly lower than the costs of their acquisition. In particular, in a market economy, a typical situation is when, upon liquidation of an enterprise, 40% or less of the book value of inventories is gained. Western literature provides an approximate lower value of the indicator - 1, but this estimate is also conditional. In addition, when analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that determined its change.

The formula for calculating the quick liquidity ratio looks like this:

where OA - Current assets;

Z - reserves;

KP - short-term liabilities.

Thus, the formula for calculating this indicator is the ratio of accounts receivable (payments for which are expected within 12 months after the reporting date), short-term financial investments (form 1 p. 250) and cash (form 1 p. 260) to the total the fourth section of the balance sheet (p. 690) minus deferred income (p. 640) and reserves for future expenses and payments (p. 650).

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

The formula for calculating the absolute liquidity ratio looks like this:

where DS is cash;

KP - short-term liabilities.

The formula for calculating this indicator can be represented as the ratio of line 260 (Cash) to the total of the fourth section of the balance sheet (line 690) minus deferred income (line 640) and reserves for future expenses and payments (line 650)

The share of working capital in assets characterizes the availability of working capital in all assets of the enterprise as a percentage. The calculation formula is as follows:

where OS is the working capital of the enterprise;

A - all assets.

The coefficient of maneuverability of own working capital - shows what part of the volume of own working capital (in the specialized literature they are sometimes called functioning or working capital) falls on the most mobile component of current assets - cash. It is determined by the ratio of the amount of cash to the amount of own working capital (the difference between current assets and liabilities). When using this coefficient in economic analysis, it is necessary to remember its limitations. In the conditions of the Russian economy that is still far from stable (by stability one should understand, first of all, the presence of stable legal and economic conditions: regulatory framework, tax mechanism, price proportions, etc.) this coefficient should be treated with great caution. Only as normal structural relationships and proportions in property and sources of financing, determined by the specifics of the type of activity under consideration, develop in stable conditions, will this indicator begin to acquire analytical value. A decrease in this ratio indicates a possible slowdown in the repayment of accounts receivable or a tightening of conditions for the provision of trade credit from suppliers and contractors, while an increase indicates a growing ability to meet current obligations. There is another approach to assessing the maneuverability of operating capital. For example, it is recommended to determine the agility coefficient as the quotient of dividing the cost of inventories and long-term receivables (with a maturity of more than one year from the date of the report) by the amount of own working capital. With this calculation scheme, the coefficient of maneuverability of own working capital shows what share of their volume is made up of weakly mobile current assets

The recommended value is 0.2 and higher. The value of the coefficient of maneuverability of own working capital depends on the nature of the enterprise’s activities: in capital-intensive industries its normal level should be lower than in material-intensive ones.

The formula for calculating the coefficient of maneuverability of own working capital looks like this:

where DS is cash;

FC - operating capital (the difference between current assets and liabilities).

Inventory coverage ratio - characterizes the funds used to purchase the company's inventories and costs: its positive value indicates that inventories and costs are provided by “normal” sources of coverage, while its negative value indicates that part of the inventories and costs is as a percentage, acquired through short-term accounts payable. If this ratio is greater than one, then the amount of own working capital exceeds the amount of inventories and costs, and the enterprise has absolute financial stability. The lower the ratio, the higher the financial risk and dependence on creditors.

The solvency of a company, its ability to make the necessary payments and settlements within a certain time frame, depending both on the influx of funds from debtors, buyers and customers of the company, and on the outflow of funds for making payments to the budget, settlements with suppliers and other creditors of the company, is a key factor in its financial stability. It is not for nothing that in Russia any cooperation with an enterprise, firm, or bank always begins with an assessment of its solvency. It is especially important for the management of the company to conduct a systematic analysis of the solvency of the enterprise for its effective management, to prevent the occurrence and timely termination of crisis situations that have already arisen.

Approaches to analyzing the liquidity and solvency of an enterprise depend on many factors: industry affiliation, lending principles, the existing structure of sources of funds, turnover of working capital, reputation of the enterprise, etc. However, we note that the owners of the enterprise (shareholders, investors and other persons who have made contribution to authorized capital) prefer acceptable growth in the dynamics of the share of borrowed funds. Lenders (suppliers of raw materials and materials, banks providing short-term loans, and other business partners) give a natural preference to enterprises with a high share of equity capital, with greater financial autonomy.

When assessing solvency, first of all, it is important to measure the extent to which all current assets of the enterprise cover the existing short-term debt; to what extent can this debt be covered without attracting material working capital, i.e. at the expense of cash, short-term financial investments and funds in settlements and, finally, what part of the short-term debt can actually be repaid with the most mobile amount of assets - cash and short-term financial investments.

The main ways to improve a company's liquidity are:

increase in equity capital;

sale of part of permanent assets;

reduction of excess inventories;

improving the collection of accounts receivable;

obtaining long-term financing.

Analysis of the business activity of the enterprise. In a broad sense, business activity means the entire range of efforts aimed at promoting a company in the product, labor and capital markets. In the context of the analysis of financial and economic activities, this term is understood in a narrower sense - as the current production and commercial activities of the enterprise. Quantitative assessment of business activity can be carried out in two directions:

the degree of implementation of the plan for key indicators, ensuring the specified rates of their growth;

level of efficiency in the use of enterprise resources.

To assess the level of efficiency in the use of enterprise resources, as a rule, turnover indicators are used. Turnover indicators are of great importance for assessing the financial position of a company, since the speed of turnover of funds, i.e. the speed of their conversion into monetary form has a direct impact on the solvency of the enterprise. In addition, an increase in the rate of turnover of funds, other things being equal, reflects an increase in the production and technical potential of the company. In financial management, the following turnover indicators are most often used:

The asset turnover ratio - the ratio of revenue from product sales to the entire balance sheet asset total - characterizes the efficiency of the company's use of all available resources, regardless of the sources of their attraction, i.e. it shows how many times per year (or other reporting period) the full cycle is completed production and circulation, bringing the corresponding effect in the form of profit, or how many monetary units of sold products brought each monetary unit of assets. This ratio varies depending on the industry, reflecting the characteristics of the production process. When comparing this ratio for different companies or for the same company for different years, it is necessary to check whether uniformity is ensured in assessing the average annual value of assets. For example, if at one enterprise fixed assets were valued taking into account depreciation accrued using the straight-line straight-line write-off method, and another used the accelerated depreciation method, then in the second case the turnover will be higher, but only due to differences in accounting methods. Moreover, the asset turnover rate, other things being equal, will be higher, the more worn out the enterprise’s fixed assets are.

The accounts receivable turnover ratio measures the average number of times accounts receivable (or just customer accounts) were converted into cash during the reporting period. The ratio is calculated by dividing revenue from product sales by the average annual value of net receivables. Despite the fact that for the analysis of this ratio there is no other basis for comparison other than industry average ratios, it is useful to compare this indicator with the accounts payable turnover ratio. This approach allows you to compare the terms of commercial lending that the company uses from other companies with the terms of credit that the company provides to other companies.

The accounts payable turnover ratio is calculated by dividing the cost of goods sold or the amount of net revenue by the average annual cost of accounts payable, and shows how much turnover a company needs to pay its invoices. Receivables and payables turnover rates can also be calculated in days. To do this, you need to divide the number of days in a year (360 or 365) by the coefficients we considered. Then we will find out how many days on average it takes to pay receivables or payables, respectively.

The inventory turnover ratio reflects the speed at which these inventories are sold. It is calculated as the quotient of dividing the cost of goods sold (or net proceeds from product sales) by the average annual cost of inventories. To calculate the coefficient in days, it is necessary to divide 360 or 365 days by the quotient of dividing the cost of goods sold or revenue by the average annual cost of inventories. Then you can find out how many days it takes to sell (without payment) inventories. When analyzing this indicator, it is necessary to take into account the impact of the assessment of inventories, especially when comparing the activities of a given enterprise with its competitors. In general, the higher the inventory turnover rate, the less funds are tied up in this least liquid item of working capital, the more liquid the structure of working capital and the more stable the financial position of the enterprise (all other things being equal). It is especially important to increase turnover and reduce inventories if there is significant debt in the company’s liabilities. In this case, creditor pressure may come before anything can be done with these reserves, especially in unfavorable conditions. It should be noted that in some cases, an increase in inventory turnover reflects negative phenomena in the company’s activities, for example, in the case of an increase in sales volume due to the sale of goods with minimal profit or no profit at all.

Duration of the operating cycle. This indicator is used to determine the length of the period between the acquisition of inventories for carrying out activities and the receipt of funds from the sale of products made from them.

The duration of the financial cycle characterizes the period during which funds are diverted from circulation and is defined as the difference between the duration of the operating cycle and the turnover period of accounts payable.

Indicators of business activity are more clearly presented in coefficients. In a developed market economy, standards are established for the national economy as a whole and for industries based on the most important indicators of business activity. As a rule, such standards reflect the average actual values of these coefficients. Thus, in most civilized market countries, the standard inventory turnover is 3 turns, i.e. approximately 122 days, the receivables turnover ratio is 4.9, or approximately 73 days. It should be noted that the average value of assets and liabilities for a period, for example, a year, is calculated as the chronological average using monthly data; if this is not possible, then using quarterly data, and if the financial analyst only has an annual balance sheet, then a simplified technique is used : average of the sum of data at the beginning and end of the period (year).

One of the characteristics of a stable position of an enterprise is its financial stability. The financial position of an enterprise is considered stable if it covers with its own funds at least 50% of the financial resources necessary for normal business activities, effectively uses financial resources, maintains financial, credit and settlement discipline, in other words, is solvent.

Financial stability is determined both by the stability of the economic environment within which the enterprise operates, and by the results of its functioning, its active and effective response to changes in internal and external factors.

Financial stability is a characteristic that indicates a stable excess of income over expenses, free maneuvering of the enterprise’s funds and their effective use, uninterrupted production and sales of products. Financial stability is formed in the process of all production and economic activities and is the main component of the overall sustainability of the enterprise.

An analysis of the stability of the financial condition as of a particular date makes it possible to find out how correctly the enterprise managed financial resources during the period preceding this date. It is important that the state of financial resources meets the requirements of the market and meets the development needs of the enterprise, since insufficient financial stability can lead to the insolvency of the enterprise and the lack of funds for the development of production, and excess financial stability can hinder development, burdening the enterprise’s costs with excess inventories and reserves. Thus, the essence of financial sustainability is determined by the effective formation, distribution and use of financial resources.

To determine the type of financial stability, it is possible to use a three-component vector model.

The most general indicator of financial stability is the surplus or shortage of sources of funds for the formation of reserves and costs. To characterize these sources, several indicators are used, which, in turn, correspond to indicators of the provision of reserves and costs with sources of formation. Based on the obtained indicators, it is possible to construct a three-component vector of financial condition S(D) = (D1, D2, D3). Data for calculating the three component vector are given in Table 6.

Table 6 Indicators for calculating a three-component vector

Indicator name	Formula for calculation
Availability of own funds in circulation (SOS)	p.490 - p.190
Availability of own and long-term sources of formation of reserves and costs or functioning capital (FC)	p.490 + p.590 - p.190
The total value of the main sources of formation of reserves and costs (VI)	p.490 + p.590 +p.610 - p.190
Inventories and costs (ZZ)	p.210 + p.220
Excess or shortage of own working capital (D1)
Excess or shortage of own and long-term borrowed sources (D2)
Surplus or deficit in the total amount of main sources (or financial and operational needs) (D3)

Based on the obtained indicators, it is possible to construct a three-component vector of financial condition S(D) = (D1, D2, D3), where the values of its coordinates are 0 and 1, respectively, negative or positive values of the indicators, and distinguish four types of financial stability:

Absolute financial stability is extremely rare, but can be a guideline for the financial activity of an enterprise. S=(1,1,1);

Normal financial stability, which guarantees the solvency of the enterprise. S=(0,1,1);

An unstable financial condition occurs when solvency is impaired, but, nevertheless, with certain measures it can be improved. S=(0,0,1);

A financial crisis is a type of condition where an enterprise is practically bankrupt. S=(0,0,0).

Along with absolute indicators, the financial stability of an organization is also characterized by financial ratios, the economic meaning and calculation procedure of which are given in Table 7. Some of them can be used to analyze the financial condition of an enterprise.

Table 7 Financial stability indicators and methods of their calculation

Indicator name		Formula for calculation and standard value
Capitalization rate (U1)	Shows how much borrowed funds the organization raised per 1 ruble. own funds invested in assets	(p.590+p.690) F1
Availability ratio from own sources of financing (U2)	Shows what part of current assets is financed from own sources	(p. 490-p. 190) F1 p.290 F1 (0.6
Financial independence coefficient (U3)	Shows the share of own funds in the total amount of funding sources
Funding ratio (U4)	Shows what proportion of assets is financed from sustainable sources. Reflects the degree of independence (or dependence) of the enterprise on short-term borrowed sources of coverage.	(p.590+p.690) F1
Financial stability coefficient (U5)	Shows how much of an asset is financed from sustainable sources	(p.490+p.590) F1 (0,8

Profitability is an indicator characterizing economic efficiency. Economic efficiency is a relative indicator that compares the effect obtained with the costs or resources used to achieve this effect.

In market conditions, the role of profitability indicators, which characterize the level of profitability (unprofitability) of production, is great. Profitability indicators are relative characteristics of the financial results and efficiency of an enterprise. They characterize the relative profitability of an enterprise, measured as a percentage of the cost of funds or capital from various positions. For this reason, they are mandatory elements of comparative analysis and assessment of the financial condition of the enterprise.

There are many profitability ratios, the use of each of which depends on the nature of the assessment of the effectiveness of the financial and economic activities of the enterprise. The choice of the estimated indicator (profit) used in the calculations primarily depends on this. There are often four different metrics used: gross profit, operating profit, profit before tax, and net profit. Depending on what the selected profit indicator is compared with, two groups of profitability ratios are distinguished:

return on investment (capital);

profitability of sales.

Some of the financial profitability ratios are shown in Table 8.

In the process of analysis, it is necessary to study the dynamics of the profitability indicators listed above and compare them with the values of similar coefficients in the industry, as well as with the profitability indicators of competitors.

Thus, the financial condition of an enterprise is a complex concept that is characterized by a system of indicators reflecting the availability, allocation and use of resources, the financial stability of the enterprise, and balance sheet liquidity. Reporting allows you to determine the total value of the enterprise's property, the value of immobilized (i.e., fixed and other non-current) assets, the cost of mobile (working) assets, tangible working capital, the amount of the enterprise's own and borrowed funds.

Table 8 Profitability indicators and methods of their calculation

Indicator name	Economic meaning of the indicator	Formula for calculation
Overall profitability (R1)	Shows the ratio of profit before tax to revenue from sales of products.
Return on sales (R2)	Indicates how much profit is generated per unit of product sold.
Capital return (R3)	Shows the efficiency of using fixed assets and other non-current assets
Core activity profitability (R4)	Shows how much profit is generated per 1 ruble. costs.
Return on permanent capital (R5)	Shows the efficiency of using capital invested in the organization’s activities for a long period of time	p. 490 - p. 590 f1
Return on production assets (R6)	Shows the efficiency of use of fixed assets, intangible assets and inventories.	page 110+page 120+page 210 f1
Return on total assets (R7)	Characterizes the level of net profit generated by all assets of the organization that are in use on the balance sheet.

In modern business conditions, it becomes obvious that enterprises and companies, in order to survive and maintain long-term competitiveness, must constantly adjust their activities taking into account the requirements of the surrounding reality. New business conditions require constant readiness for change.

The external environment of an organization is changing faster and more unpredictably. But at the same time, each change carries not only threats, but also new additional opportunities for achieving future business success. The organization must have the ability to correctly and timely transform the structure of its business and constantly carry out adequate strategic and operational changes. Possible measures to improve the financial condition of the enterprise are presented in a systematic form in Fig. 10.

With horizontal integration (strengthening control or acquiring competing firms), the following conditions for organizational strategy arise: the company competes in a growing industry; a company can become a monopolist in a certain region without attracting special support from local authorities or strong competition; increased production scale provides major strategic advantages; the company has sufficient capital and labor resources to successfully cope with the challenges of its expansion; the company's competitors make mistakes due to lack of management experience or the lack of special resources that the company has.

A strategy aimed at integrated growth by adding new structures within an organization is called vertical integration. There is a distinction between forward and backward integration. With direct integration (acquisition of selling companies), the conditions for choosing an organizational strategy are the following: the company's distributors are expensive, intractable or weak in order to satisfy the company's demands; distributors' opportunities are limited in terms of creating strategic competitive advantages for the company; The company competes in a rapidly growing industry and is expected to continue to expand markets for its products; the company has the capital and personnel necessary to cope with the challenges of distributing its own products; stability of production is especially valuable, this is due to the fact that through our own distribution system it is easier to predict the market need for the company’s products; existing distributors and sellers of the company's products receive a very high percentage of profits; in this case, through direct integration, the company can seriously increase its profits and, by reducing distribution costs, significantly reduce the final price of its products, thus strengthening its competitive position.

Fig. 10.

Concentrated growth (changing a product or market within a traditional industry) includes the following organizational strategies: market capture, market development, product development, centralized diversification, horizontal diversification, conglomerate diversification.

The market capture strategy (increasing share in traditional markets) is carried out under the following conditions for choosing an organizational strategy: existing markets are not saturated with the company’s products; the rate of consumption of the company's products among traditional consumers may soon increase; increasing production scale provides key strategic advantages. The market development strategy (new markets for an old product) is carried out under the following conditions for choosing an organizational strategy: new inexpensive, reliable channels for selling products appear; the company is very successful in its business; there are new untapped or unsaturated markets; the company has the necessary capital and labor resources to cope with the expansion of its business operations; the company has a reserve of production capacity; The company's main industry is developing quite quickly. A product development strategy (a new product in a traditional market) is carried out under the following conditions for choosing an organizational strategy: the company produces fairly successful products that are in the maturity stage of the product life cycle - the idea is to attract completely satisfied consumers to try the company's new, improved product; the company competes in an industry characterized by rapid technological change; the company's main competitors offer better quality products at comparable prices; the company competes in a rapidly growing industry; The company is distinguished by its research and development capabilities.

With centralized diversification (when new production coincides with the main profile), the following conditions exist for choosing an organizational strategy: the company competes in an industry that has no growth or has very low growth rates; adding new, but at the same time specialized products could significantly improve the sale of traditional products; new specialized products can be offered on the market at fairly high competitive prices; new core products introduced have seasonal fluctuations in demand, and these fluctuations are in antiphase with fluctuations in the company’s financial peaks and valleys; the company's traditional products are in the dying stage of their life cycle; the company has a strong management team. With horizontal diversification (new non-core products for traditional markets), the following conditions exist for choosing an organizational strategy: adding new, but at the same time non-core products, which could significantly improve the sale of traditional products; the company competes in a highly competitive and non-growing industry in which the rate of profit and income is quite low; traditional distribution channels for the company's products can be used to market new products for traditional consumers; The sales of new products will take place in antiphase with the products already produced by the company. With conglomerate diversification (new non-core production for new markets), the following conditions for choosing an organizational strategy exist: in the company’s core industry there is an annual decrease in sales volumes and profits; the company has the capital and management needed to compete in a new industry; the company has the opportunity to buy a non-core business for it, which represents a reliable object for investment; there is financial interaction between the acquired and acquiring firms; The existing markets for the company's products are quite saturated.

The disinvestment strategy (sale of part of the enterprise or the company as a whole) includes a partial reduction of the company. There are the following conditions for choosing an organizational disinvestment strategy: the company has a clear understanding of its business, but for a significant period of time it has not been able to achieve its goals; the company is one of the weakest competitors in the industry; the company is inefficient, low-profit, has personnel with a low average level of labor discipline. The sale of part of the company occurs when the company's downsizing strategy does not bring the desired effect. The transfer of part of the shares of a newly formed company occurs when some division of the company requires significantly more resources to maintain its competitiveness than the company can provide. Full liquidation occurs when a company is on the verge of bankruptcy, and the liquidation process can obtain the maximum possible amount of cash for its assets; Neither the reduction strategy nor the rejection strategy led to the desired result.

Consequently, using possible options for organizational transformations, enterprises formulate a strategy to overcome the crisis. Restructuring strategies can be presented in the form of two main directions: business expansion or contraction.

The strategy for expanding the scope of activity can be implemented in the following forms: merger, accession, purchase of property, rental of property, leasing of property, privatization. The problem of internal development can be solved in the following ways: joint venture, participation in investment projects, venture investments, licensing, marketing agreements, technological participation, franchising. As a result of various types of integration transformations, the organization may include one company or several, united by a participation system. The following options are possible here: syndicate, cartel, holding, financial and industrial group, association, strategic alliance, union.

Another direction of restructuring is business downsizing. The reduction strategy can be implemented by dividing, separating, selling property, reducing equity capital, leasing property, creating a subsidiary, gratuitous transfer of assets, transfer of property to offset liabilities, conservation of property, liquidation of the enterprise.

In countries with a well-established market economy and a relatively stable socio-political situation, and current competition laws, bankruptcy is viewed as a positive phenomenon that helps clear the market of ineffective and weak enterprises. In Russia, most enterprises are potential bankrupts, although many of them have the opportunity to exit the zone of financial insolvency. In these conditions, the bankruptcy mechanism should be considered not so much as a means of liquidating an insolvent enterprise, but as an opportunity, within the framework of the arbitration process, to ensure the creation of new or the preservation of old, but reformed business units that can fit into the market process and function normally within its framework.

Analysis of the financial and economic condition of an enterprise consists in general of the following main components:

· analysis of property status;

· liquidity analysis;

· analysis of financial stability;

· analysis of business activity;

· profitability analysis.

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

Analysis of property status consists of the following components:

· Analysis of assets and liabilities of the balance sheet

· Analysis of property status indicators

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

When assessing the dynamics of property, the state of all property in the composition of immobilized assets (Section I of the balance sheet) and mobile assets (Section II of the balance sheet - inventories, accounts receivable, other current assets) is traced at the beginning and end of the analyzed period, as well as the structure of their increase (decrease).

Analysis of property status indicators consists of calculating and analyzing the following main indicators:

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

· this indicator gives a generalized valuation of assets listed on the balance sheet of the enterprise;

· share of the active part of fixed assets.

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

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

Renewal coefficient - shows what part of the fixed assets available at the end of the period consists of new fixed assets.

Retirement ratio - shows what part of fixed assets left economic circulation during the reporting period due to wear and tear.

The analysis of enterprise liquidity is based on the calculation of the following indicators:

· Maneuverability of operating capital. Characterizes that part of own working capital that is in the form of cash, i.e. funds with absolute liquidity. For a normally functioning enterprise, this indicator usually varies from zero to one. All other things being equal, the growth of the indicator in dynamics is considered as a positive trend. An acceptable indicative value of the indicator is established by the enterprise independently and depends, for example, on how high the enterprise’s daily need for free cash resources is.

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

Quick ratio. In terms of semantic purpose, the indicator is similar to the current liquidity ratio; however, it is calculated based on a narrower range of current assets, when the least liquid part of them—industrial inventories—is excluded from the calculation. The logic of such an exception consists not only in the significantly lower liquidity of inventories, but, what is much more important, in the fact that the funds that can be gained in the event of a forced sale of inventories can be significantly lower than the costs of their acquisition. In particular, in a market economy, a typical situation is when, upon liquidation of an enterprise, 40% or less of the book value of inventories is gained. Western literature provides an approximate lower value of the indicator - 1, but this estimate is also conditional. In addition, when analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that determined its change.

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

The share of own working capital in covering inventories. Characterizes that part of the cost of inventories that is covered by its own working capital. Traditionally, it is of great importance in analyzing the financial condition of trading enterprises; the recommended lower limit of the indicator in this case is 50%.

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

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

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

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

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

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

Indicators of the business activity group characterize the results and efficiency of current core production activities.

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

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

The content and main goal of financial analysis is to assess the financial condition and identify the possibility of increasing the efficiency of the functioning of an economic entity with the help of rational financial policy. The financial condition of an economic entity is a characteristic of its financial competitiveness, the use of financial resources and capital, and the fulfillment of obligations to the state and other economic entities. In the traditional sense, financial analysis is a method of assessing and forecasting the financial condition of an enterprise based on its financial statements.

Financial condition of the enterprise characterized by a system of indicators reflecting the state of capital in the process of its circulation and the ability of a business entity to finance its activities at a fixed point in time.

The financial condition of an enterprise can be stable, unstable (pre-crisis) and crisis. The stable financial condition of an enterprise is evidenced by its ability to make payments in full and on time, to finance its activities on an expanded basis, to endure unforeseen shocks without serious consequences and to maintain its solvency, and the absence of these qualities most likely indicates the instability of the financial condition of the enterprise.

To ensure financial stability, an enterprise must not only have a flexible capital structure, but must also be able to organize the movement of financial resources in such a way as to achieve a constant excess of income over expenses in order to create conditions for maintaining solvency and self-reproduction.

Financial stability of the enterprise represents, first of all, the ability of an economic entity to function and develop, to maintain a balance of its assets and liabilities in a changing internal and external environment, which guarantees its constant solvency and investment attractiveness within the acceptable level of risk.

The financial condition of an enterprise, its sustainability and stability directly depend on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, then this has a positive effect on the financial position of the enterprise, and, conversely, due to underfulfillment of the plan for production and sales of products, its cost increases, revenue and profit decrease, and as a result, the financial condition of the enterprise and its solvency. The stable financial condition of an enterprise is the result of competent and skillful management of the entire complex of factors that directly determine the results of the enterprise's economic activities. A stable financial position, in turn, has a positive impact on the implementation of production plans and the provision of production needs with the necessary resources.

The main goal of this part of financial analysis is to promptly identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency.

In this case, it is necessary to solve the following main problems:

1. Based on the study of the cause-and-effect relationship between various indicators of production, commercial and financial activities, assess the implementation of the plan for the receipt of financial resources and their use from the standpoint of improving the financial condition of the enterprise.

2. Forecast possible financial results, economic profitability based on the actual conditions of economic activity and the availability of own and borrowed resources, development of models for changes in financial condition for various options for using resources.

3. Development of specific measures aimed at more efficient use of financial resources and strengthening the financial condition of the enterprise.

The practice of financial analysis has developed and uses to assess the financial condition of an enterprise and its stability a whole system of indicators characterizing:

a) availability and placement of capital, efficiency and intensity of its use;

b) the optimal structure of the enterprise’s liabilities, its financial independence and the degree of financial risk;

c) the optimal structure of the enterprise’s assets and the degree of production risk;

d) optimal structure of sources for the formation of current assets;

e) solvency and investment attractiveness of the enterprise;

f) the risk of bankruptcy (insolvency) of a business entity;

g) the margin of its financial stability.

Currently, due to high inflation, it seems very difficult to use absolute indicators for analysis, since they are very difficult to bring into a comparable form, therefore the leading role in the analysis of the financial condition of an enterprise is played mainly by relative indicators.

The relative indicators of the analyzed enterprise can be compared:

With generally accepted or established standards for assessing the degree of risk and predicting the possibility of bankruptcy;

With similar data from other enterprises (especially competitors), which allows us to identify the strengths and weaknesses of the enterprise and its possible potential;

With similar data for previous years (periods) to identify and study trends in the improvement or deterioration of the financial condition of the enterprise.

The financial condition of the enterprise has to be analyzed not only by the management of the enterprise, but also by its founders, investors in order to study the efficiency of the use of resources, banks - to assess lending conditions and determine the degree of risk, suppliers - to receive payments on time, tax inspectors - to fulfill the plan for the receipt of funds in budget and so on. According to this, internal and external analysis are distinguished.

Internal analysis is carried out at the enterprise, that is, by its services, and the results of such analysis are used for forecasting, planning the financial condition of the enterprise and monitoring it. The purpose of this analysis is to ensure a systematic flow of funds and placement of own and borrowed funds in the most optimal way to create conditions for the normal functioning of the enterprise and maximizing profits.

Investors, suppliers of material and financial resources, and control authorities carry out external analysis based on the published annual (quarterly) reporting of the enterprise. The purpose of this analysis is to determine the possibility of a profitable investment in order to ensure maximum profit and eliminate or minimize the risk of loss.

The main source of information for analyzing the financial condition is the enterprise's balance sheet (annual and quarterly statements). Its importance in this regard is so great that financial analysis is often called balance sheet analysis. Along with the balance sheet, the sources of data for analysis are a report on financial results and their use, a report on the state of the enterprise’s property, a report on the availability and flow of funds of the enterprise, as well as primary and analytical accounting data that decipher and detail individual balance sheet items.

Depending on the availability, enterprise information can be divided into open and closed (secret). The use of standards in financial activities becomes a matter of choice for the enterprise itself, so information about standards becomes a trade secret. Analysis of deviations from the standards planned by the enterprise accordingly becomes part of internal analysis financial condition carried out by the financiers of the enterprise on the basis of all reliable information about economic activities.

Financial analysis based on financial statements is becoming external analysis, i.e., analysis carried out outside the enterprise by its interested counterparties, owners or government agencies, based on reporting data. The balance sheet form allows external users of the statements to objectively assess the financial condition of the enterprise without using information that is a trade secret. The method of external analysis of the financial condition of an enterprise is of great interest for each enterprise, not only for the purposes of assessing potential partners, but also for its own self-assessment, carried out from the point of view of external users of financial statements.

The main factors determining the financial condition are, firstly, the implementation of the financial plan and replenishment as the need arises for own working capital at the expense of profits and, secondly, the turnover rate of working capital (assets). Signal indicator in which the financial condition is manifested, is the solvency of the enterprise, which means its ability to timely satisfy the payment requirements of suppliers of equipment and materials in accordance with business contracts, repay loans, pay staff, and make payments to the budget.

The basics of the methodology include the following blocks of analysis:

General assessment of the financial condition and its changes during the reporting period;

Analysis of the financial stability of the enterprise;

Analysis of balance sheet liquidity;

Analysis of financial ratios.

An assessment of the financial condition and its changes during the reporting period using a comparative analytical balance sheet - net, as well as an analysis of absolute indicators of financial stability constitute the starting point from which the remaining blocks of financial condition analysis logically develop. Analysis of balance sheet liquidity, based on stability analysis, evaluates current solvency and provides a conclusion on the possibility of maintaining financial balance and solvency in the future.