Analysis financial statements- an important tool that will help economic agents operating in conditions of uncertainty to make more informed decisions. Therefore, understanding the features of this process is important for a wide range of people.
Analysis of financial statements- the process of calculating financial and economic indicators (indicators), applying other methods economic analysis for the formation of conclusions and recommendations using data from the financial statements of the enterprise for a certain period. As a result, the analyst (the person who calculated the indicators, carried out horizontal and vertical analysis, applied other methods) can form a general idea of the financial position of the organization.
In the practice of large enterprises, this process allows you to summarize the performance of the business entity in general and its structural departments separately. But still, management reporting (not accounting) serves as the basis for implementing the employee incentive policy, for making managerial decisions, and for further adjusting the sales and production sphere.
Management reporting is confidential information of the enterprise. Therefore, for a third-party person and even the majority of employees of such an enterprise, there is no possibility of studying it. In this case, consideration of the reporting - best option formation of a relatively accurate estimate financial condition and business prospects. In order to understand what conclusions and recommendations can be obtained for the enterprise, it is necessary to study the main groups of indicators of financial and economic analysis.
Financial analysis is needed for a large number of stakeholders:
Of course, this list does not claim to be complete.
The following reporting forms are used in the process:
However, this list is not complete. During the evaluation process, it is also worth looking into additional information about current position affairs at the enterprise, in the industry, in the economy. This data can be obtained from industry associations, Federal State Statistics Service, mass media etc.
Also, the company can publish on its official website extended annual reports, press releases,news, data on social and environmental policy, operational statistics, affiliates, company structure And so on. Thus, the analyst must use all available information that can be used to form a picture of the current financial condition and performance of the enterprise.
Balance liquidity analysis means an assessment of a company's ability to sell its assets in order to pay off its liabilities. If the money can be immediately used to pay off the most urgent obligations, then it is necessary to wait some time to sell the reserves and turn them into money without losing value.
Therefore, in order to determine the liquidity of the balance sheet structure, certain groups of assets should be compared with certain groups of liabilities.
Table 1 - Analysis of the liquidity of the balance sheet of the enterprise
|
Balance asset |
Ratio |
Balance liability |
surplus/deficit |
|
A4 (slowly realizable non-current assets: non-current assets of the enterprise) |
P1 (permanent sources of financing: capital and reserves) |
||
|
A3 (slowly realizable current assets: stocks and VAT on acquired valuables) |
P2 (long-term sources of financing: long-term liabilities) |
||
|
A2 (Quick assets: receivables and other current assets) |
P3 (short-term sources of financing: short-term loans and borrowings) |
||
|
A1 (most liquid assets: money, financial investments) |
P4 (most urgent liabilities: accounts payable) |
As shown in the table, compare with each other the following elements balance:
1. Most urgent obligations with the most liquid assets. If the result is positive, then the company is able to urgently pay off those obligations that are due soon.
2. Quick Assets and short-term funding sources. If the sum of the fastest and most liquid assets exceeds the sum of all short-term liabilities, then the company will be able to meet the obligations on time during the year.
3. Slowly implemented current assets and long-term liabilities. A positive cumulative result will indicate that the company is able to remain sustainable in the long term.
4. Fixed assets and own capital. The company does not need to return equity capital in the foreseeable future, subject to efficient operation, so this aspect does not affect the conclusions about solvency.
Liquidity indicators are already indicators of the stability of the organization in the short term. They show whether the organization can easily pay off creditors, meet its debts, etc. within a year. If the indicator is below the norm, then there is a risk that a disgruntled creditor who has not received his money will sue the organization. In the worst case, this will lead to the beginning of the bankruptcy proceedings of the enterprise.
The main liquidity indicators are: current liquidity indicator, quick liquidity indicator and absolute liquidity.
Current liquidity ratio is the ratio of all current assets and all current liabilities:
Ptl \u003d Current assets / Short-term liabilities
The value of the indicator shows how many current assets the company has in order to pay off current liabilities. The standard value of the indicator depends on the industry, usually it is 1.2 and higher. A value lower would indicate that the entity may be experiencing difficulty in paying off liabilities.
Quick liquidity ratio is the ratio of quick assets and current liabilities:
Pbl \u003d (Current assets - Stocks) / Short-term liabilities
This ratio is more conservative and does not take into account stocks, which are more difficult to monetize to pay down debt. Therefore, the indicator allows you to understand the solvency of the company in the future for the next few months. A value of 0.9 or more is considered normal.
Absolute liquidity ratio is the ratio of cash to current liabilities:
Pal = Cash and Equivalents / Current Liabilities
This ratio shows what part of short-term liabilities the company is able to repay immediately. The normative value is 0.1-0.2. Drawing up a payment calendar at the enterprise will allow you to control the value of the indicator and keep it within the optimal limits based on the company's needs for money.
An important group of indicators is indicators of financial stability. They allow you to determine the medium-term prospects for the work of the organization, taking into account the structure of financing. A larger share of equity results in more financial independence organizations. As a result, the costs of attracting and using borrowed funds are reduced. In addition, financial risks are reduced. For example, ceteris paribus, an organization with a larger amount of equity can attract more borrowed funds for the purchase of goods and raw materials, sales promotion, etc.
Coefficient of current assets provision with own funds shows what share of current assets the company is able to finance independently. The formula for the calculation is as follows:
Posos = Own current assets / Current assets
A positive value of the indicator indicates the ability of the enterprise to carry out production and marketing activities without interruption. Even a reduction in access to external financing will not stop the operational process. A low positive or negative value will indicate a significant dependence on external sources, which creates some risks.
Indicator of financial autonomy is the ratio of the company's own finances and the total amount of liabilities:
PFA = Equity / Liabilities
This ratio indicates the share of assets that the company is able to finance on its own. The standard value depends on the industry, usually it is a value of 0.4-0.6. Too low a value indicates high level financial risks and possible bankruptcy in case of limited access to the capital market, however, a too high value will indicate an underutilization of the potential of the enterprise.
Unlike the previous figure, coefficient financial stability takes into account both permanent and long-term sources of funding. The formula for the calculation is as follows:
CFU = (Equity + Long-Term Liabilities) / Liabilities
Thus, the value will indicate the share of capital that will be available over a long period of time. A high value indicates a stable market position in the short term.
Rice. 1. Elements of the analysis of financial statements (The list can be shortened for specific purposes of analysis)
Another group of indicators - profitability indicators. Profitability is not always the main goal of a commercial organization. For the current year, measures may be planned to increase the value of the organization, capture the majority of the market, etc. But under normal conditions, it is these indicators that testify to the effectiveness of a commercial organization. Return on assets and equity in this case are the criteria for the competence and professionalism of top management. The indicators are a consequence of the actions of competitors, market conditions, the state of fixed assets, customer loyalty, etc. That is, for most commercial organizations, profitability is a resultant performance indicator.
Return on assets is a measure that measures the ability of an enterprise's assets to generate net income. This ratio is the ratio net profit and average annual assets.
RA = Net profit / Average annual assets * 100%
The standard value depends on the industry. When conducting a profitability analysis, it is advisable to compare the coefficients of this group with the values of competitors. A higher value will indicate effective cost management, quality management, use of efficiency improvement reserves, etc.
Unlike return on assets, return on equity allows you to assess the attractiveness of investing by the owners of their funds in the activities of the enterprise.
RSK \u003d Net profit / Average annual amount of equity * 100%
For determining normative value indicator should look at the profitability of alternative investment instruments, for example, investing in shares of other companies, opening deposit at the bank, etc. If the return on equity is higher, then management effectively manages the funds of the owners.
Return on sales based on net profit or the net margin approximately shows how much the net profit of the enterprise will increase with an increase in the level of sales per ruble. The formula for the calculation is as follows:
HRPP = Net profit / Revenue * 100%
A higher value of the indicator also indicates effective cost management, quality control of the marketing and production process. It should be noted that with a significant increase in the level of sales net profit will grow, as the share of fixed costs in each ruble of sales will decrease.
Another group of indicators that should be considered in the process of financial analysis is business activity indicators. If profitability is an indicator of the quality of the result, then business activity is an indicator of the quality of the work process. The company has low turnover accounts receivable- review your policy commercial lending clients. Low turnover of working capital - think about how to speed up the process. A long period of turnover of products and goods - you need to reduce the size of their stocks or intensify the marketing process by applying appropriate techniques. That is, this group of indicators allows the analyst to determine not only how the enterprise works, but also where the problem is.
Asset turnover shows the volume of production that was produced for each attracted ruble of assets. For example, a value of 2.5 would indicate that for every ruble of assets, 2.5 rubles of products were produced and sold. The formula is:
OA = Revenue / Average annual assets
A higher value of the indicator will indicate the ability of the enterprise to effectively manage a limited amount of resources.
Good inventory management will allow you to attract fewer financial resources, which saves money by reducing interest payable. Therefore, inventory management policy plays an important role in the implementation of financial activities. Formula inventory turnover next:
OZ \u003d Cost / Average annual amount of inventories
Thus, the inventory turnover is the ratio of the cost and the average annual amount of stocks.
Another important aspect is the management accounts receivable. Basically, receivables are formed in the process of commercial lending to customers (for example, deferred payment for delivered products or services). The formula for calculating turnover is as follows:
ODZ = Revenue / Average annual receivables
Low turnover will indicate that customers are diverting the company's funds, which leads to additional costs for attracting financial resources. The high turnover of receivables allows you to free up some of the financial resources that can be directed to the intensification of production activities.
A desirable step in the analysis of financial statements is the assessment of relative indicators of property status. These indicators can suggest the features of a long-term policy of making financial investments, the role of fixed assets, show the share of financing that they divert to themselves, etc.
Of course, no less important are the indicators of the relative growth of the main elements of assets, liabilities and financial results during the study period. Using the data, you can find out whether the company is at the stage of active development, degradation or stability. Cost increase production means leads to an increase in production potential, and an increase in the cost of equity capital - to an increase in the level of well-being of owners. A steady increase in income while maintaining stable prices indicates growing market power. Therefore, this group of indicators is also important.
Obviously, the study of accounting data cannot be compared with the analysis of management reporting, but in conditions of limited information, this is the best way to get an idea of the state of the organization.
Our site provides an opportunity to analyze your financial statements. All the indicators described, as well as others, can be calculated free of charge. To do this, you only need to go through a quick registration and enter data on the enterprise. In addition, it is possible to generate conclusions and recommendations for your data for a small fee. Such data may be provided to investors, bank employees, owners, employees of the enterprise, suppliers and customers, etc. If you think that the program for some reason does not fully satisfy your needs - write, we are always ready to modify, optimize, remake. We hope the site will be useful in the analysis process. If you have any questions - write to the menu item "Contact" or in the comments to the articles.
OAO Gazprom Space Systems operates in the field of creation and operation of telecommunication and geoinformation systems. The enterprise develops space telecommunication systems both for its customers and provides corresponding services. It has been operating on this market for the past 22 years. The analysis of the company's financial statements according to the methodology proposed above made it possible to formulate the following conclusions about the financial position and financial efficiency of the company.
Table 2. Dynamics of the assets of OJSC GKS, million rubles
|
Indicators |
Absolute deviation, +,- |
Relative deviation, % |
||||||
|
fixed assets |
||||||||
|
Long term financial investments |
||||||||
|
Deferred tax assets |
||||||||
|
Other noncurrent assets |
||||||||
|
NON-CURRENT ASSETS TOTAL |
||||||||
|
Value added tax on acquired valuables |
||||||||
|
Accounts receivable |
||||||||
|
Cash and cash equivalents |
||||||||
|
Other current assets |
||||||||
|
CURRENT ASSETS TOTAL |
||||||||
The data in Table 2 and Figure 1 show that during 2013 - 2015 there is an increase in the amount of assets of the enterprise. The reason for this trend is the increase in the value of the company's assets - the amount increased by 104.52% during the study period. It is worth noting that this is due to the revaluation of the value of non-current assets. The cost of sophisticated telecommunications equipment has risen in proportion to the appreciation of the dollar. Thus, the real added value was not created, therefore, no signs of the effective operation of the enterprise were identified in the process of asset analysis.
In asset finance, the trend is as follows:
Table 3. Dynamics of sources of financial resources of OJSC GKS, million rubles
|
Indicators |
Absolute deviation, +,- |
Relative deviation, % |
||||||
|
Authorized capital (share capital, authorized fund, contributions of comrades) |
||||||||
|
Revaluation of non-current assets |
||||||||
|
Reserve capital |
||||||||
|
Undestributed profits ( uncovered loss) |
||||||||
|
OWN CAPITAL AND RESERVES |
||||||||
|
Long-term borrowings |
||||||||
|
Deferred tax liabilities |
||||||||
|
Provisions for contingent liabilities |
||||||||
|
LONG-TERM LIABILITIES TOTAL |
||||||||
|
Short-term borrowings |
||||||||
|
Accounts payable |
||||||||
|
Reserves for future expenses and payments |
||||||||
|
SHORT-TERM LIABILITIES TOTAL |
||||||||
The data in Table 3 and Figure 2 show that some destructive processes are taking place in the company. Prior to the crisis, in 2013, JSC GKS received a loan on the following terms: lender Bank of America, N.A., loan amount: 298,000,000.00 US dollars, interest rate on credit LIBOR + 3.15% per annum. This information is obtained from annual report, which contains detailed explanations of the financial statements.
Due to the fact that the loan was taken in dollars, the company's liabilities increased significantly, namely, the amount of long-term borrowed funds increased by 84.07%. The amount of interest payable also increased. At the same time, the company receives a significant part of its revenue in rubles.
Because of this, the company received a loss and the amount of retained earnings decreased from 529 million rubles. up to -19159 million rubles. That is, there is a significant degradation of the enterprise, it is not able to function effectively and generate profits, and the only source of equity growth is the revaluation of the cost of equipment.
The share of own capital, as shown in Figure 3, decreased to 2% per annum, while the normative value is considered to be 40% and above.
The revealed trends and phenomena indicate a serious crisis, without additional negotiations with creditors, additional investment by shareholders or third-party investors, the company will be declared bankrupt.
Table 4 shows the reasons for the extremely low efficiency of the enterprise. Due to the change in the exchange rate of the ruble, the volume of interest-bearing liabilities increased significantly - by 169.98%. Also, the dynamics of the exchange rate led to the fact that the costs of foreign exchange differences on operations in foreign currency increased from 19,267 million rubles. in 2014 to RUB 27,329 mln. in 2015. As a result, the amount of other expenses increased significantly.
Table 4. Dynamics financial results OJSC GKS, million rubles
|
Indicators |
Absolute deviation, +,- |
Relative deviation, % |
||||||
|
Cost of sales |
||||||||
|
Gross profit (loss) |
||||||||
|
Selling expenses |
||||||||
|
Profit (loss) from sales |
||||||||
|
Income from participation in other organizations |
||||||||
|
Interest receivable |
||||||||
|
Percentage to be paid |
||||||||
|
Other income |
||||||||
|
other expenses |
||||||||
|
Profit (loss) before tax |
||||||||
|
Change in deferred tax liabilities |
||||||||
|
Change pending tax assets |
||||||||
|
Net income (loss) |
||||||||
As a result, it can be argued that the financial risk management policy in the company is extremely unsatisfactory, which led to the actual degradation of the enterprise and a significant increase in the risk of loss of solvency.
Table 5. Liquidity analysis of the balance sheet of OJSC GKS
|
Balance section |
||||
|
A1 (cash, cash equivalents and short-term financial investments) |
||||
|
A2 (accounts receivable and other current assets) |
||||
|
A3 (stocks and VAT on acquired valuables) |
||||
|
A4 (non-current assets) |
||||
|
P1 (accounts payable and other short-term debt) |
||||
|
P2 (short-term loans and borrowings) |
||||
|
P3 (long-term liabilities) |
An analysis of the financial condition of an enterprise includes an analysis of the balance sheet and reports on the financial results of the company being valued (quick analysis of financial statements) for past periods to identify trends in its activities and determine the main financial indicators. Express analysis of accounting (financial) statements enterprise involves the following steps:
Stage 1. Analysis of property status
Let us consider in more detail the stages of conducting an express analysis of financial statements.
The most general idea of the qualitative changes that have taken place in the structure of the company's funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting. Vertical analysis reveals the structure of the company's funds and their sources, and horizontal analysis consists in the construction of analytical tables in which absolute parameters are supplemented by relative growth (decrease) rates.
The effectiveness and economic feasibility (and profit is the main and main thing for us) of the functioning of the enterprise are measured by absolute and relative indicators: profit, gross income, profitability, etc. Using the data of the income statement (report on financial results) of the balance sheet, we will calculate the main indicators profitability:
2.1. Profitability of sales. The formula for calculating the balance: K1 = (line 050 / line 010 f.2) * 100%, the profitability ratio of sales shows how much profit falls on a unit of sold products.
2.2. Profitability of the main activity: K2 \u003d line 050 / (line 020 + line 030 + line 040 f.2) * 100%, shows how much profit from sales falls on 1 ruble of costs.
2.3. Return on sales ratio (ROS): K3 = (p. 190 / p. 010 f.2) * 100%, sales income is the ratio of net profit to gross sales.
2.4. Return on assets of the enterprise (ROA): K4 = ((net profit + interest payments) * (1 - tax rate)) / assets of the enterprise × 100%, shows how many monetary units of net profit each unit of assets at the disposal of the company brings.
2.5. Return on equity ratio (ROE): K5 = (line 190 f.2 / line 490 f.1) * 100%, shows how much income each ruble invested in the company's business by its owners brings.
2.6. The payback period of own capital: K6 = line 490 f.1 / line 190 f.2, shows the number of years during which investments in this organization will fully pay off.
As a rule, the analysis involves:
3.1. Evaluation of the dynamics and structure of balance sheet items.
3.2. Analysis of liquidity and solvency of the balance sheet.
3.3. Analysis of financial stability and capital structure.
Evaluation of the dynamics and structure of balance sheet items. For a general assessment of the dynamics of the financial condition, it is necessary to group the balance sheet items into some specific groups on the basis of liquidity and urgency of obligations. (Conduct aggregation of balance sheet items). On the basis of the aggregated balance sheet, an analysis of the structure of the enterprise's property is carried out.
Analysis of financial stability. An assessment of the financial condition of an enterprise will be incomplete without an analysis of financial stability. The task of financial stability analysis is to assess the size and structure of assets and liabilities. Indicators that characterize the independence of each element of the assets and property in general, make it possible to measure whether the analyzed organization is financially stable enough. The simplest and most approximate way to assess financial stability is to calculate the absolute indicators of financial stability.
Most often, for the analysis of financial stability, relative coefficients are used, which are accepted in world and domestic accounting and analytical practice.
federal Service execution of sentences
Academy of Law and Management
Chair accounting, analysis, finance and taxation
Institute for Training State and Municipal Employees
Full-time education
Direction 080100.62 - Economics
Course work
Evaluation of financial statements indicators
Prepared by:
4th year student
study group
Begletsov V.Yu.
Checked:
Tarasov A.A.
Ryazan, 2014
Introduction
3 Scope of accounting (financial) statements
Conclusion
Introduction
accounting statements profit balance
In its activities, each organization, represented by its management, carries out a variety of business operations, makes certain decisions. Almost all such transactions are reflected in accounting.
Data about business transactions, which are produced by an economic entity for a certain period of time, are summarized in the relevant accounting registers, and then transferred in a generalized form to the financial statements. Such a procedure for grouping accounting information is necessary, firstly, for the organization itself and is associated with the need to clarify, and in some cases, adjust the further course of the financial and economic activities of a particular enterprise.
Accounting statements must reveal many facts that may affect the assessment of users of information about the state of the property, financial situation, profit and loss. In this regard, the importance of the role of assessing financial statements indicators, that is, an integrated, systematic approach, or studying the financial position of the organization and the factors of its formation in order to assess the degree of financial risks and predict the level of return on capital in the future, is growing significantly. This allows you to objectively assess the impact of factors on its main indicators of economic activity.
Information on the property and financial position is disclosed in the balance sheet, on the financial results of the economic activity of the enterprise - in the profit and loss statement, on the solvency and origin of money capital - in the cash flow statement.
At the end of each reporting period, the head of the organization reviews, studies and analyzes financial documents its accounting department on the basis of the results of work. The ability to analyze them correctly allows him to make competent management decisions, which in the future can increase the dynamics of the enterprise's development.
The purpose of this course work is a complete, comprehensive and comprehensive assessment of financial statements, in particular the balance sheet and income statement.
The objectives of the course work to solve and achieve the goal are:
establish the value of financial statements and determine its main types;
establish users of accounting (financial) statements;
consider the scope of reporting;
reveal reporting period and the reporting date of the financial statements;
determine the main elements of the structure of the balance sheet;
consider the evaluation of the balance sheet and income statement.
The object of this course work is accounting (financial) reporting.
Subject to term paper will serve as indicators of the balance sheet and income statement.
Theoretical aspects of accounting (financial) reporting
1 Definition of the concept of "accounting statements", its types and meanings
Accounting (financial) statements are information about the property and financial position of the organization, the financial result of its economic activities and cash flows for the reporting period, compiled on the basis of accounting data and according to established forms.
Each non-governmental organization seeks to maximize profit in the conditions market economy. This focus is specific and essential to their activities. The basis of financial statements of organizations in market conditions is the compilation and formation of reporting indicators for external users. Consequently, financial statements are an essential prerequisite for the development of business relations of many participants in the market system. The lack of information in the future may affect, for example, a decrease in the inflow of additional capital, because it is a means for expanding, firstly, the financial activity of an economic entity.
Also, accounting data is required by the management of the organization for making management decisions and coordinating activities.
The main objectives of reporting are as follows:
Compliance with the basic rules and principles of accounting by organizations in the preparation of reports to obtain reliable information.
Preparation of financial statements by all business entities of different organizational and legal forms.
Compliance with international reporting standards, especially for those that are of interest to foreign investors.
Disclosure and explanation in the financial statements of other methods and methods of accounting adopted in the accounting policy of the organization.
In the Concept for the Development of Accounting and Reporting in Russian Federation in the medium term, it is planned to create such types of reporting economic entities depending on users like:
Individual financial statements.
Consolidated financial statements.
Management reporting.
Individual financial statements have two functions:
Information.
Control.
Firstly, it speaks about the financial position and economic result of the organization's economic activity. Secondly, this reporting controls the accuracy of the accounting cycle.
Individual financial statements are needed for:
) determination of the final financial result - net profit (loss) and its distribution among the owners;
) representing it in supervisory authorities;
) determining signs of bankruptcy of economic entities;
) application in taxation and in the management of the organization.
Consolidated financial statements are a type of financial statements. It is needed to determine the financial position and the result of the activities of a group of economic entities based on relations of control. Consolidated reporting performs only an informational function and is presented to external users interested in it. To make management decisions in the organization, these statements can be used as a source of financial information.
Interested users in the consolidated financial statements should find reliable, reliable and comparable information about a group of economic entities. In turn, these reports are prepared in accordance with international standards, and a mandatory audit is also carried out.
Management reporting is necessary for use in the management of an economic entity, either by management or other management personnel. Therefore, its content, frequency, forms and terms of compilation are determined independently by the economic entity. Also, this reporting should preferably be based on the same principles as individual and consolidated reporting, for its usefulness and effectiveness.
Tax reporting ( tax returns) is needed for fiscal purposes and is mandatory for compilation by economic entities, the range of which is established by tax legislation. Her main task is to reduce the cost of its formation by approximating the rules tax accounting to accounting rules.
In addition, economic entities must submit statistical reporting, which is compiled on the basis of accounting and operational accounting data. It is formed according to the rules established by the Federal State Statistics Service and is intended for collecting and processing information on mass economic phenomena.
Joint-stock companies, in addition to the listed types of reporting, may submit specialized reports to the Bank of Russia Service for financial market under the leadership of the Government of the Russian Federation, and unitary enterprises - to the Federal Agency for Management state property administered by the Ministry economic development Russian Federation.
Financial statements can be classified according to various criteria: Depending on destination:
) internal (management) - for managers of different levels of management;
) external (financial) - for external users.. Depending on the period of compilation:
) current (intermediate) - cumulative component from the beginning of the year (quarter, half year, 9 months);
) annual - compiled for the calendar year and includes the final indicators of the organization's activities. By the degree of detail:
) general - characterizes the activities of the entire organization;
) special - characterizes information in one area of the organization's activities .. By the degree of generalization:
) individual (single) - includes indicators of a single organization, unit allocated to a separate balance sheet.
) consolidated - covers the indicators of a legal entity, including branches and divisions allocated to a separate balance sheet.
) consolidated - discloses information about a group of related organizations, each of which can be an independent legal entity.
2 Users of accounting (financial) statements
The work of researching and analyzing financial statements must meet many requirements. Everyone who uses information about the organization does it differently, according to their competence and their understanding. In PBU 4/99, the user of financial statements is defined as an individual or entity interested in information about the organization.
Financial reporting in the Russian Federation is of interest to both external and internal users.
external users.
Users who have a direct interest in the activities of the organization.
Users who are indirectly interested in it.
The first group of external users includes:
) the state (primarily, represented by tax authorities, checking the correctness of the calculation of taxes, the preparation of reporting documents);
) lenders who determine the terms of lending, evaluate the feasibility of granting or extending a loan or the credibility of the organization as a client;
) buyers and suppliers who determine the strength and sustainability of business relationships;
) shareholders or owners of funds of an economic entity who determine the dynamics of the share of personal funds, as well as evaluate the effectiveness of resource allocation by the management of the organization;
) freelancers who are interested in reporting performance by salary.
The second group of external users includes:
) audit organizations that verify the accuracy of financial statements with established rules and regulations;
) employees of organizations on financial issues that use reporting data to develop proposals to their clients in the field of selling equity capital of an organization;
) exchanges valuable papers who analyze the reporting during the registration of these organizations, making a decision to suspend or terminate the activities of an economic entity, assess the need to change accounting methods;
) government departments;
) employees of legal services and companies who need reporting data to analyze compliance with the law in the distribution of profits and the payment of dividends to shareholders, the fulfillment of the terms of contracts;
) funds mass media who use reporting data to create press releases, analytical programs, analysis of the development dynamics of individual organizations;
) state organizations statisticians (for example, the Federal State Statistics Service), which use reporting to generate official statistical information on various industries;
) trade union organizations that are interested in accounting data to determine their positions in the field of improving the working conditions of employees of the organization (for example, in the field of wages, labor relations, working hours, benefits, etc.).
Internal users:
a) the leadership of the organization;
) heads of relevant departments and divisions, who determine, in accordance with the data of financial statements, the correctness of the accepted economic or economic decisions, the effectiveness of the capital structure, forecasts for financial indicators of the upcoming reporting periods.
1.3 Scope of accounting (financial) statements
Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n "On Forms of Financial Statements of Organizations" includes appendices, which are approved forms of financial statements. They differ from the previous edition of the forms, as they are designed for quality improvement. legal regulation in the field of accounting, excluding credit organizations and state (municipal) institutions.
The composition of the standard annual financial statements, following the Law on Accounting, PBU 4/99, as well as the order of the Ministry of Finance of the Russian Federation of July 2, 2010 No. 66n, includes:
Balance sheet.
Report about incomes and material losses.
Statement of changes in equity.
Cash flow statement.
Explanations to the balance sheet and income statement, which are presented in the form of tables.
Report on the intended use of the funds received.
Information related to financial statements (explanatory note).
Audit report. (If this economic entity is subject to mandatory audit in accordance with the Federal Law "On audit activity"dated December 30, 2008 No. 307-FZ)
The organization at the time of reporting must reflect all the changes that have occurred during the reporting period: for example, changes in accounting policy that have had or are likely to have an undeniable impact on economic situation, cash flow or financial results in the activities of the economic entity itself; operations in foreign currency; about fixed assets; on inventories; about the income and expenses of the organization and so on.
An economic entity has the right to provide additional information that will accompany financial statements if the state executive body deems it necessary for users when making financial and management decisions. It may reveal the dynamics of important economic indicators over several years; possible long-term financial investments; environmental protection measures; forecast development of the enterprise and other information.
4 Reporting period and reporting date for accounting (financial) statements
In accordance with the national rules of the Russian Federation, the reporting year for absolutely all economic entities is the calendar year - from January 1 to December 31 inclusive, and the reporting date is a certain date, as of which the organization is obliged to prepare reports. The last calendar day of the reporting period is the reporting date for the preparation of financial statements.
The first reporting year for newly created organizations is the period from the moment state registration through December 31 of the current year. But there is an exception for enterprises established after October 1: for them, the first reporting year will be the period from the moment of their state registration to December 31 of the next year.
Monthly and quarterly reports are compiled on an accrual basis from the beginning of the reporting period.
It should also be noted that international standards financial statements do not establish specific deadlines for the preparation of the organization's annual financial statements. The IFRS Committee is not a governmental organization, therefore it does not have any power to establish any binding rules or instructions on the subject. In any country, certain reporting periods are established by national legislation or by authorities that regulate the securities market.
Evaluation of indicators of accounting (financial) statements
1.1 Formation of balance sheet assets
The active part of the balance sheet indicates the debit balances of the General Ledger accounts. Asset articles are grouped into two sections.
Non-current assets (total line 1100).
a) intangible assets (line 1110). They are recorded in accordance with the requirements of PBU 14/2007 "Accounting intangible assets".
They include objects that simultaneously meet certain requirements:
the ability to bring economic benefits in the future;
term beneficial use more than 12 months;
the right to receive economic benefits;
no further resale is expected;
the absence of a material-substantial form of an object.
Intangible assets may include: works of science or art, scientific inventions, computer programs, secret developments (know-how), trademarks.
In the balance sheet, intangible assets are accounted for at their residual value (the difference between the initial cost and the amount of accrued depreciation). The initial cost is recorded on account 04 "Intangible assets".
b) research and development results (line 1120). This article reflects information on the costs of completed research, technological and development work on the debit of account 04. R&D includes the cost of inventories for these works; the cost of employees' salaries; deductions for social needs; depreciation of fixed assets.
c) intangible exploration assets (line 1130). This article reflects information on the costs of searching, evaluating deposits of any minerals, taking samples and conducting soil analyzes. These data are recorded on account 08.
d) tangible exploration assets (line 1140). This article reflects information on the amount of costs for structures, buildings, equipment, vehicles, which are used in the process of prospecting, appraisal of the deposit and exploration of minerals. They are accounted for on account 08.
e) fixed assets (line 1150). This article reflects information about fixed assets that are accounted for in the debit of account 01. The following conditions are typical for fixed assets: participation in the production process or ensuring economic needs; useful life exceeds 12 months; next resale is not expected; the ability to generate income in the future. Fixed assets in accordance with PBU 6/01 include buildings, structures, machinery and equipment, instruments, computers and others.
f) profitable investments in material assets (line 1160). This article reflects residual value property intended for transfer under a financial lease (leasing) agreement. It is reflected in the debit of account 03, and the depreciation amount is on account 02.
g) financial investments (line 1170). This item reflects information on financial investments with a maturity of more than a year after reporting date. These include: contributions to the authorized capital of other organizations; state and municipal securities; investments in subsidiaries and dependent companies; accounts receivable. They are accounted for in the debit of account 58.
h) deferred tax assets (1180). This item reflects that part of deferred income tax, which should lead to a decrease in income tax in the next reporting period. Accounted for in the debit of account 09. These data as of the reporting date should be equal to the values of item 2450 "Change in deferred tax assets" of the income statement.
i) other non-current assets (line 1190). This article reflects R&D that did not give a positive result (debit 08 of the account); equipment requiring installation (debit 07 account); perennial plantations that have not reached the operational age (debit 01.5 of the account) .. Current assets (final line 1200).
a) stocks (line 1210). This article reflects information on the balance of raw materials and materials (account 10); animals for growing and fattening (account 11); balances in work in progress (account 20); finished products (account 43); goods shipped (account 45) and the like.
b) value added tax on acquired valuables (line 1220). This article reflects information on the amount of input VAT, which was presented to the enterprise by counterparties for payment when purchasing goods, works, services. This tax accounted for on account 19.
c) accounts receivable (line 1230). This article reflects information on the total amount of receivables. For example, this account may include such amounts as overpaid taxes (account 68), the amount of the employee's debt for damages (account 73), penalties (account 76) and the like.
d) financial investments (excluding cash equivalents) (line 1240). Under this article, account 58 reflects securities with a circulation period of less than a year; loans issued to other organizations and individuals for up to a year, and so on.
e) cash and cash equivalents (line 1250). This article indicates data on the funds available to the organization, presented on accounts 50, 51, 52, 55, 57.
f) other current assets (line 1260). This article takes into account completed stages of work in progress (debit 46 of the account); the amount of VAT accrued from the advance payment and prepayment (debit 62 of the account); the amount of excises to be deducted in the future (debit 68 of the account).
1.2 Formation of liabilities balance sheet items
The liabilities side of the balance sheet reflects credit balances in the accounts of the General Ledger. Liabilities are grouped into three sections. Capital and reserves (final line 1300).
a) authorized capital (share capital, authorized fund, contributions of comrades) (line 1310). This article reflects the amount of the authorized capital registered on the credit of account 80.
b) own shares repurchased from shareholders (line 1320). This article reflects information on the value of shares purchased by the enterprise from its employees. They are reflected in the posting: debit 81 accounts and credit 50 (51) accounts.
c) revaluation of non-current assets (line 1340). This item reflects the balance of account 83, which was formed as a result of the revaluation of fixed assets (PBU 6/01), the revaluation of intangible assets (PBU 14/2007). Additional capital can be used to depreciate fixed assets, intangible assets, if these objects were previously revalued, so there was already a source for their subsequent depreciation.
d) additional capital (without revaluation) (line 1350). This article provides information about exchange rate differences; excess of the par value of the share over the market value (credit 83 accounts).
e) reserve capital (line 1360). This article reflects information on the amount of reserve capital intended to cover extraordinary losses joint-stock company. This capital must be formed for an amount that will be greater than or equal to 5% of the authorized capital. Posting for the formation of reserve capital: debit 82 accounts and credit 84 accounts.
f) retained earnings (uncovered loss) (line 1370). This item reflects data on the amount of profit / loss remaining after the distribution of profit or covering the loss of the reporting year. These data on the reporting date should be equal to the values of item 2400 "Net profit of the reporting period" of the income statement. Net income is the difference between profit before tax, current income tax and "other" taxes and penalties. At the end of the year, net profit is written off from the debit of account 99 to the debit of account 84. Long-term liabilities (final line 1400).
a) borrowed funds (line 1410). This item reflects information on long-term loans and borrowings that were attracted by the enterprise with a maturity of more than 12 months (credit 67 of the account). This may include loans, bank loans.
b) deferred tax liabilities (line 1420). In accordance with PBU 18/2002, deferred tax liabilities are understood to mean that part of the amount of deferred income tax, which in the following reporting periods should lead to an increase in income tax payable to the budget. Posting for this article: debit 68 accounts and credit 77 accounts. These data at the reporting date should be equal to the values of item 2430 "Changes in deferred tax liabilities" in the income statement.
c) estimated liabilities (line 1430). Estimated liabilities - liabilities associated with upcoming payments of vacation pay to employees, warranty services, payments to the budget by organizations that have committed violations of the law (credit 96 of the account).
d) other liabilities (line 1450). This item reflects the debt, the payment term of which is more than a year. It includes receiving an advance payment for the receipt of products (credit 62 accounts), deferral / installment payment federal taxes and fees (credit 68 accounts), debt to off-budget funds(credit 69 of the account).. Short-term liabilities (total line 1500).
a) borrowed funds (line 1510). This item reflects information on debt on outstanding loan obligations, the maturity of which is less than a year, including accrued interest.
b) accounts payable (line 1520). This item reflects information on short-term accounts payable, the maturity of which is less than a year. This includes outstanding debts to suppliers and contractors for the supplied materials or work performed (credit 60 of the account), debt to the personnel of the economic entity in the form of unpaid wages or other payments in favor of the employees of the organization (credit 70 of the account), debt to state non-budgetary funds (credit 69 accounts), debt to the budget in the form of unlisted taxes and fees (credit 68 of the account).
c) deferred income (line 1530). This article reflects information on the amount of income that was received in the reporting period. They will be reflected on account 98 and include:
the initial cost of fixed assets that were received on free use;
budget resources, which are sent by a commercial organization to finance expenses.
d) estimated liabilities (line 1540). This item reflects information on the amount of estimated liabilities that must be repaid within a year after the reporting date. These obligations are formed on account 96 and will be taken into account in accounting if some conditions are met at the same time:
the organization has an obligation that it must fulfill without fail;
reduction of economic benefits from the enterprise, going towards the repayment of its obligations;
the estimated liability can be determined.
e) other liabilities (line 1550). This article may reflect such indicators as target financing that was received by the organization from the investor, as a result of which an obligation is formed to transfer the removed object to them during the year (credit 86 of the account); the amount of value added tax that has already been deducted when transferring an advance and is payable to the budget upon receipt of the goods upon receipt (credit 76 of the invoice).
2 Evaluation of balance sheet and income statement indicators
After collecting and processing information, any organization aims to analyze the obtained indicators in the accounting (financial) statements in order to further predict the dynamics of the company's development or make strategic and informed management decisions.
First, there is always an analysis of the balance sheet indicators, since it is one of the main forms of financial reporting and contains the main information of the organization: property, liabilities and other facts of the economic activity of the organization.
The assets of the balance sheet contain the means of the organization, which always go through a continuous cycle of supply, production, and sales processes. The funds of the organization are divided into current and non-current assets, because they take a different part in the circulation of funds.
Current assets most often go through the following stages of stay in the organization: raw materials / materials / semi-finished products à finished products à sale of finished products à cash from the sale.
Non-current assets also go through a certain cycle: property à operating it for a long period of time à gradually wears out à it is included in the circulation in parts by means of depreciation.
The asset structure of the balance sheet was drawn up according to a certain system, which included in its basis the degree of property liquidity mobility. In the balance sheet of the Russian Federation, all assets of the asset are arranged in ascending order of liquidity.
The liabilities side of the balance sheet includes sources of funds or liabilities of the organization. There are obligations to the owners of the organization and to third parties (creditors, banks). This division has a certain value in establishing the maturity of repayment. We can say that obligations to owners are a permanent part of the balance sheet, and they can be constantly not repaid. But obligations to creditors or banks must be repaid over certain periods of time. In the practice of Russia, articles in the balance sheet liability are arranged according to the degree of increasing urgency of repayment of obligations, which is why all of the above determines the entire structure of the balance sheet liability.
The main goal of economic entities in a market economy is to maximize profit from their activities. Therefore, it is vital for any enterprises and companies engaged in entrepreneurial activities to analyze the indicators of the income statement in order to further make informed decisions. After all, profit for them is absolutely everything.
The main purpose of this report is to provide stakeholders with information about the results of the organization's business activities. This information can be applied in different cases. For example, when assessing the effectiveness of the management staff, the distribution of income / dividends between the founders / shareholders, forecasting the future activities of the enterprise.
The very significance of this report is generally difficult to overestimate in assessing and analyzing the profitability and profitability of the organization. Since the overall financial result in the report is presented quite extensively, then according to this information, one can already judge the change in the income and expenses of the organization in the reporting period in comparison with the previous ones, the composition and structure of gross profit, sales profit, net profit. The report also helps to analyze the dynamics of costs for the production and sale of products, works, services, sales proceeds.
The data contained in the income statement is still used in the calculation of several coefficients that characterize the business activity and profitability of the organization. To assess business activity during the calculation of turnover ratios, the indicator of revenue (net) from the sale of products is used.
After summarizing all the results of the analysis, it is possible to find out the unused opportunities for increasing the profit of the enterprise, increasing the level of its profitability. The information contained in this report will help all interested parties to make a conclusion about how effective the activities of this organization are and whether investments in its assets will be justified.
Conclusion
I would like to emphasize once again that it is very important to present the necessary information in the financial statements in the most complete and reliable way. Failure to apply these requirements and instructions can lead to very significant negative consequences, both for the enterprise itself and for interested persons and organizations - creditors, shareholders and others.
It should be noted that the analysis of the assessment of financial statements is necessary not only for the organization itself, but also for interested parties - creditors, buyers, suppliers and others. The use of financial statements during the assessment allows you to accurately and reliably assess the financial position of the organization, and possibly the future partner.
The main goal of an economic entity in market conditions is to maximize profits, which is impossible when there is no effective capital management.
The search for reserves, when necessary, to increase the profits of the organization is always carried out by the heads of enterprises. In general, from effective management economic resources depends on the performance of the enterprise.
In the development of the processes of change in the economy of the Russian Federation, one of the main places is given to the improvement of the domestic system of accounting and reporting.
Its capabilities contain a wide range of economic entities that participate in the market system, provided with any indicator characterizing the economic, financial or investment activities of a non-governmental organization.
The effectiveness of this activity largely depends on the reliability and transparency of information.
Otherwise, the analysis of reporting indicators, carried out on the basis of this very information, will no longer be accurate and implausible, and it will no longer be possible to use it in the future activities of the organization and for other reasons.
List of used literature
2. On the approval of the Accounting Regulations "Accounting statements of the organization" PBU 4/99: order of the Ministry of Finance of Russia dated July 6, 1999 No. 43n // SPS "Garant". Regulation on accounting "Accounting statements of the organization" PBU 4/99.
Accounting financial statements: textbook / ed. A.I. Nechitailo [and others]. - Rostov n / a: Phoenix, 2012.
Accounting (financial) reporting: textbook. allowance / ed. Yu.I. Sigidov, A.I. Trubilina M.: INFRA-M, 2012.
Accounting (financial) reporting: textbook. allowance / ed. V.A. Oksanich M.: INFRA-M, 2013.
Accounting (financial) reporting: textbook. allowance for students. universities / ed. T.Ya. Neteprova, O.V. Trubitsina M.: Dashkov and Co., 2011.
Accounting (financial) reporting: textbook. allowance for students., obuch. according to special "Accounting, analysis and audit" / ed. N.V. Generalova, V.A. Bykova and others. M.: Master, 2009.
Accounting (financial) reporting: textbook. allowance for students. universities / ed. V.A. Chernova M.: UNITY-DANA, 2007.
Need help learning a topic?
Our experts will advise or provide tutoring services on topics of interest to you.
Submit an application indicating the topic right now to find out about the possibility of obtaining a consultation.
The objectives of this stage are: selection of a small number of significant and easy-to-calculate indicators, tracking their dynamics, detecting "pain" points of the enterprise's activities and trends in its development in order to determine the directions for further in-depth analysis.
The main methods and techniques of financial analysis used at this stage: horizontal, vertical, comparative, trend methods, "reading" forms of financial (accounting)
reporting, formation of a comparative analytical balance
The main procedures of the preliminary stage of the analysis:
reading accounting (financial) statements; at this stage, the ratios of individual items of assets and liabilities of the balance sheet, income statement are determined, the sums of deviations in the structure of the main items of balance and income statement are calculated compared to the previous period (periods); establish interrelations of indicators of the main forms of financial reporting; preliminary conclusions are made about the nature of changes in the property and financial position of the organization and their mutual conditionality;
construction of a comparative analytical balance, based on the data of which, at subsequent stages of the analysis, the calculation and assessment of the dynamics of the most important coefficients (parameters) of the organization's activities, characterizing if liquidity, financial stability, business and market activity, profitability, etc., is carried out.
analysis of the structure, dynamics and structural dynamics of the organization's property (its assets); this includes analysis of the ratio of non-current and current assets, analysis of the composition, structure and dynamics of non-current and current assets, analysis of the degree of mobility of the organization's property (the share of current assets in the composition of property), analysis of changes in the property position of the organization as a whole (the amount of change in the balance sheet currency) and assessment of factors that influenced this change (dismemberment of this amount into separate components);
analysis of the structure, dynamics and structural dynamics of the organization’s own capital and liabilities”, this includes an analysis of the ratio of own and borrowed sources of financing; analysis of the composition, structure and dynamics of the company’s own capital and liabilities; analysis of the correspondence between the structure of the organization’s property and the structure of its sources of financing , the amount of non-current assets and the amount of own and long-term borrowed capital, the value of current assets and the amount of short-term liabilities, balances of receivables and payables, etc.);
analysis of the balance sheet in terms of its unfavorable (“sick”) items”, these include existing losses, overdue loans and borrowings, overdue accounts receivable and payable, overdue bills issued and received;
preliminary analysis of the performance of the organization; carried out on the basis of the aggregated form of the Profit and Loss Statement (Form No. 2 of financial statements); includes an analysis of the dynamics of sales volumes, production costs, operating and non-operating income (expenses), various types of profit (gross, sales profit, profit before tax, profit from common species activities, net profit) and factors determining their size, etc.;
analysis of the dynamic development of the organization; involves an analysis of the comparative growth rates of sales proceeds, assets, profits in order to determine the degree of efficiency of the organization's use of its property potential.
Important at this stage of the analysis is the construction of a comparative analytical balance of the organization, on the basis of which an analysis of its property status and sources of its financing is carried out, and the most important key parameters of the organization's activities are determined.
A comparative analytical balance sheet is formed from the original balance sheet by aggregating the range of its items (however, you can leave the items without aggregation) and supplementing it with indicators of structure, dynamics and structural dynamics, regrouping individual items of current and non-current assets, capital and liabilities, as well as eliminating the impact on the currency ( total) balance sheet and its structure of regulatory articles.
Meanwhile, the list of procedures for converting the reporting form of the organization's balance sheet depends on the specific conditions, the specifics of the activity, so it is impossible to provide for such an adjustment for all cases! However, it is important to adjust the balance sheet for the indicators we mentioned (regulating articles), which most significantly distort the real picture of the financial position of the enterprise. These may include:
the amount of value added tax (VAT) (line 220 of the balance sheet). Attaches either to the organization's inventory or to the amount of accounts receivable. Such ambiguity of the adjustment is explained by the current procedure for accounting for VAT on capitalized material values and production services received but not yet paid for by suppliers and third parties. Therefore, before the tax is presented for reimbursement from the budget, it is possible to consider the amount of the reflected value added tax as a potential receivable. If an organization has significant reserves in its assets that are necessary to ensure its core activities, then it is legitimate to add value added tax to the amount of reserves;
deferred expenses (line 216 of the balance sheet). It is possible to reduce the size of inventories and equity capital by this amount, since the presence of these expenses in the balance sheet means that in the reporting period, production costs were incurred, which are subject to inclusion in the cost of products (works, services) of future reporting periods, or reflects the costs to be attributed to the net profit of the organization in case of its insufficiency or absence;
debt of participants (founders) on contributions to the authorized capital. By this amount, the amount of receivables and the amount of equity should be reduced, since its real value is less due to the fact that not all contributions have been made to the authorized capital of the organization;
Accounts receivable for which payments are expected in more than 12 months. (p. 230 Balance sheet). By this amount, the value of current assets decreases and non-current assets of the organization increase. The reason for the adjustment is as follows: in the system of regulatory accounting regulation in Russia, current assets are understood as cash and other assets in respect of which it can be assumed that they will be converted into cash, or sold, or consumed within 12 months. or normal operating cycle if it exceeds 12 months. Thus, the exception is receivables under contracts concluded for a period of more than a year, the criterion for classifying which as current assets will be the period of its turnover during the normal operating cycle;
goods shipped (line 215 of the balance sheet) - the amount under this item can be excluded from the amount of stocks and added to receivables. The presence in the balance sheet of the amount of goods shipped indicates that the supply contract stipulates a different general order the moment of transfer of the right of possession, use and disposal of the shipped products and the risk of its accidental loss from the enterprise to the buyer. Since the transfer of ownership of the shipped products to the buyer, the enterprise that shipped the products has a receivable. And so, traditionally in domestic practice, “goods shipped” were included in accounts receivable.
At the same time, the account on which enterprises began to indicate the receivables of buyers became account 62 “Settlements with buyers and customers”, which excludes transactions of a special nature and the special nature of the transfer of ownership to the buyer. Under these conditions, “goods shipped” are not accounted for as receivables, but as property, the ownership of which remains with the enterprise that shipped the products to the recipient. The above circumstances require, therefore, additional consideration of this balance sheet item in order to justify the possibility of its inclusion in accounts receivable. Therefore, it is important here to resolve issues related to the quality of this asset, that is, what is behind the amounts included in this article; *
deferred income (line 640 Liabilities of the balance sheet), reserves for future expenses (line 650 of the Liabilities of the balance sheet). These amounts can reduce the size of the organization's short-term liabilities and increase the size of its own capital. The basis for the adjustment is that the balances on the indicated balance sheet items until they are used to a certain extent represent the income of the company.
There are other possibilities for adjustments. So, for example, the amount of the organization's own capital decreases by the amount of its own shares repurchased from shareholders (p. 411 Balance sheet liability). By the amount of work in progress, you can reduce stocks and, accordingly, the amount of current assets. However, in each specific case, it is necessary to know the analytics of the corresponding account (balance sheet item).
Taking into account the adjustments from the comparative analytical balance, it is possible to obtain a number of the most important characteristics of the enterprise's activities. These include:
the total value of the property of the organization is equal to the total of the balance = p. 300 or p. 700 f. No. 1; according to the revised version, p. 300 or p. 700 f. No. 1 - indebtedness of participants (founders) on contributions to the authorized (share) capital (in part of line 240 f. No. 1);
the value of immobilized (non-current) assets - rain to the total of section I of the balance sheet = page 190 f. No. 1;
the cost of current (mobile) assets is equal to the total of section II of the balance sheet = page 290 f. No. 1; according to the revised version, p. 290 f. No. 1 - debt of participants (founders) for contributions to the authorized (share capital) (in part of line 240 f. No. 1);
the value of inventories is equal to the total p. 210 f. No. 1; according to the revised version: p. 210 f. No. 1 + + p. 220 f. No. 1;
the total amount of receivables is equal to the sum of lines (230 + 240) f. No. 1;
the sum of money resources and short-term financial investments - is equal to page (250 + 260) f. No. 1;
cost of equity ( net assets) - equal to page 490 f. No. 1; according to the revised version: ("line 490 f. No. 1 - debt of participants (founders) on contributions to the authorized capital (in part of line 240 f. No. 1) + line 640 f. No. 1);
the amount of borrowed capital is equal to the sum of the line (590 + line 690) f. No. 1; according to the revised version: (line 590 f. No. 1 + line 690 f. No. 1) - line 640 f. No. 1;
long-term liabilities - their value is equal to page 590 f. No. 1;
short-term (current) liabilities: their value is equal to page 690 f. No. 1; according to the revised version: p. 690 f. No. 1 - - p. 640 f. No. 1;
the amount of accounts payable is equal to page 620 f. No. 1. In addition, based on these parameters, calculated by
We will form a comparative analytical balance of the enterprise in general view without taking into account the regrouping of individual articles and regulations (Table 13.1).
As can be seen from Table. 13.1, the total value of the organization's property increased in 2004 by 7,997,414 thousand rubles, or by 28.16%. The growth of assets occurred due to the increase in non-current assets by 6,819,121 thousand rubles. (by 27.57%), which is 85.27% of the total change in the value of the organization's property.
In the structure of non-current assets, the largest absolute and relative change was caused by an increase in long-term financial investments. With the dominant share of fixed assets in non-current assets and in the total value of the organization's property (77.54 and 61.66%, respectively, at the beginning and end of the analyzed period), their relative dynamics ( specific gravity) is characterized by a decrease, and the most significant of all components of non-current assets (-15.88%).
The dynamics of the value of current assets is also positive. It increased by 1,178,294 thousand rubles, or by 32.09%, which is 14.73% of the total change in the value of the organization's property. As can be seen from Table. 13.1, the main contribution to the formation of current assets is made by receivables with a maturity of up to 12 months, stocks, short-term financial investments.
At the same time, the very structure of the property of the enterprise, i.e., the ratio of its non-current and current assets, is characterized by a high degree immobilization, i.e., a significant excess of the share of non-current assets in the total value of property (87.07 and 86.68%, respectively, at the beginning and end of the analyzed period).
From a financial point of view, the higher the level of property mobility (the share of current assets in the composition of property), the better. But not everything is so simple.
First of all, the ratio of non-current and current assets is determined by the sectoral affiliation of the enterprise and the conditions of its activity. From this point of view, asset mobility, for example, commercial enterprise will always be higher than that of a metallurgical, machine-building or communications enterprise, as is the case in our case, since for enterprises in this industry non-current assets are of the greatest value and the main emphasis is placed on their development.
However, a rational policy of managing current assets cannot be discounted. Here we must remember that the increase in working capital should not be an end in itself. Practically, current assets can be increased either by reducing (selling) non-current assets, or by additional sources of financing. Therefore, the build-up
481 Table 13.1
Comparative analytical balance of the organization as of December 31, 200X, thousand rubles
period at the end of the period Absolute value, thousand rubles. relative*, % to the value at the beginning of the year, % to the change in the balance sheet total,
% ASSETS I. NON-CURRENT ASSETS Intangible assets 76,370 60,073 0.27 0.17 -16,297 N),10 -21.34 -0.20 Fixed assets 22,024,007 22,445,376 77.54 61.66 421,369 - 15.88 1.91 5.27 Construction in progress 1,294,800 2,257,501 4.56 6.20 962,701 1.64 74.35 12.04 Profitable investments in material assets - - - - - - - - Long-term financial investments Other non-current assets 60,368 66,065 0.21 0.18 5,697 -0.03 9.44 0.07 TOTAL Section I 24,731,741 31,550,862 87.07 86.68 6,819121 -0.40 27.57 85 .27
Absolute value, thousand rubles Share, % of the total Deviation Indicators at the beginning of the period at the end of the period at
%II. CURRENT ASSETS Inventories Including: 724,720,938,782 2.55 2.58 214,062 0.03 29.54 2.68 23 6.09 0.29 costs of work in progress 11,565 12,568 0.04 0.03 1,003 -0.01 8.67 0.01 finished products and goods for resale 5,406 3,571 0.02 0.01 - 1,835 -0.01 -33.95 -0.02 goods shipped 28 7 0.00 0.00 -21 0.00 -76.20 0.00 deferred expenses 332,875 524,967 1.17 1.44 192 093 0.27 57.71 2.40 other inventories and expenses - - - - - - - - Value added tax on acquired valuables 353,565 584,436 1.24 1.61 230,870 0.36 65.30 2.89 Accounts receivable (payments for which are expected more than 12 months after the reporting date) 25,292,215,606 0.09 0.59 190,314 0.50 752.46 2.38
Indicators Absolute value, thousand rubles. Share, % of total Deviation at the beginning of the period at the end of the period
period at the end of the period Absolute value, thous.
Rub. relative, % to the value at the beginning of the year, % to the change in the total balance, % Including: buyers and customers Accounts receivable (payments for which are expected within 12 months after the reporting date) 1,320,700 1,667,879 4.65 58,347,179 -0.07 26.29 4.34 Including: buyers and customers 1,002,351 1,380,251 3.53 3.79 377,900 0.26 37.70 4.73 Short-term financial investments 703,745 810,601 2.48 2.23 106,856 -0.25 15.18 1.34 Cash 544 118,633 129 1.92 1.74 89,011 -0.18 16.36 1.11 Other current assets - - - - - - - - TOTAL for section II 3,672,140 4,850,433 12.93 13.32 1,178,294 0.40 32.09 14.73 BALANCE 28,403,881 36,401,295 100,100 7,997,414 - 28.16 100.00 Indicators Absolute value, thousand rubles. Share, % of total Deviation at the beginning of the period at the end of the period
period at the end of the period Absolute value, thousand rubles. relative, % to the value at the beginning of the year, % to the change in the balance sheet total,
% PASSIVE III. CAPITAL AND RESERVES Share capital 3,831,802 3,831,802 13.49 10.52 - -2.97 0.00 0.00 Treasury © shares purchased from shareholders - - 0.00 0.00 - - - - Additional capital 15 458,065 15,439,973 54.42 42.42 -18,092 -12.0 -0.12 -0.23 Reserve capital - 96,845 0.00 0.26 96,845 0.26 - 1.21 Retained earnings of previous years 1,977,494 1,607,981 6.96 4.42 369,513 -2.54 -18.69 -4.62 Uncovered loss of previous years - - 0;00 0.00 - - - - Retained earnings of the reporting year - 1,880,368 - 5.17 1,880,368 5.17 - 0.24 TOTAL for Section III 21,267,361 22,856,969 74.87 62.79 1,589,608 -12.08 7.47 19.88 IV. LONG-TERM LIABILITIES Loans and borrowings 2,420,943 2,453,640 8.52 6.74 32,698 -1.78 1.35 0.41 Deferred tax liabilities 329,272 324,983 1.16 0.89 -4,289 -0.27 - 1.30 -0.05 498
Continuation of the table. 13.1 Indicators Absolute value, thousand rubles. Share, % of total Deviation at the beginning of the period at the end of the period
period at the end of the period Absolute value, thousand rubles. relative, % to the value at the beginning of the year, % to the change in the balance sheet total,
% Other long-term liabilities 297,862 271,478 1.05 0.75 -26,384 -0.30 -8.86 -0.33 TOTAL Section IV 3,048,077 3,050,101 10.73 8.38 2,024 -2, 35 0.07 0.03 V. SHORT-TERM LIABILITIES Loans and credits 1,218,654 1,512,919 4.29 4.16 294,265 -0.13 24.15 3.68 Accounts payable 1,225,042 7,124,633 4.31 19 .57 5,899,591 15.26,481.58 73.77 0.43 0.29 -18,461 -0.15 -15.08 -0.23 debt to the state 24,295 23,551 0.09 0.06 -743 -0.02 -3.06 -0.01 gift off-budget funds tax arrears 210,651,336,873 0.74 0.93 126,221 0.18 59.92 1.58 and dues other creditors 376,848 5,949,218 1.33 16.34 5,572,369 15.02 1,478 .68 69.68
Indicators Absolute value, thousand rubles. Share, % of total Deviation at the beginning of the period at the end of the period
period at the end of the period Absolute value, thousand rubles. relative, % to the value at the beginning of the year, % to the change in the balance sheet total,
% Debt to participants (founders) for payment of income 900 9,545 0.00 0.03 8,646 0.02 961.00 0.11 Deferred income 1,643,847 1,847,128 5.79 5.07 203,280 -0, 71 12.37 2.54 Provisions for future expenses - - 0.00 0.00 - - - - Other short-term liabilities - - 0.00 0.00 - - - - TOTAL section V 4,088,443 10,494,225 14.39 28.83 6,405,782 14.44 156.68 80.10 BALANCE 28,403,881 36,401,295 100.00 100.00 7,997,414 - 28.16 100.00 496
company assets should take place if necessary (growth in production volumes, entering new markets, introducing a new type of product into production, etc.).
Thus, during the analyzed period, an increase in the value of the organization's property was observed. The growth rate of mobile funds (32.09%) turned out to be higher than non-current actinon (25.57%), which determines the trend towards faster turnover of the most liquid assets of the enterprise. In general, the structures and economic resources at the end of the year improved somewhat, although it is impossible to state this unequivocally. Thus, the share of non-current assets in the total volume of property as a whole decreased (-0.40%), while the share of current assets, on the contrary, increased (0.40%). In the composition of non-current assets, the share of long-term financial investments increased, which is associated with the development investment activity including investments in subsidiaries. And this is justified if the development of investment activity brings income to the enterprise.
An increase in expenses in construction in progress by 962,701 thousand rubles or 74.35%, under certain conditions, may adversely affect the performance of financial and economic activities, since these assets are not involved in the production turnover. Further, attention should be paid to the high share of receivables in the composition of current assets, n.i increase in receivables, payments on which are expected in more than 12 months. (the growth rate of the latter was 752.46%).
After a general assessment of the property condition of the enterprise, the movement and causes of changes in the MAIN TYPES of property should be studied separately.
In the process of analyzing the liability of the organization's balance sheet, changes in its dynamics, composition, structure are studied, which is shown in Table. 13.1.
As can be seen from it, the increase in the value of property for the analyzed period by 7,997,414 thousand rubles. (28.16%) was mainly due to an increase in short term liabilities by 6,405,782 thousand rubles and own funds by 1,589,608 thousand rubles. It follows from this that the increase in the volume of financing of the enterprise's activities as a whole by 19.9% (1,589,608 / 7,997,414,100%) was provided by equity capital and by 80.1% (6,407,806/7,997,414,100%) - for borrowed funds.
In the analyzed period, there was an increase in own funds. However, the share of equity capital in the company's total financing decreased by 12.08% during the year. The share of borrowed capital, respectively, increased by this amount. But, despite this, own sources of funding still prevail in the total amount of the organization's funds.
At first glance, this circumstance testifies in favor of the stability of the financial position of the enterprise. However, such a statement is far from indisputable, since the question of the rational ratio of own and borrowed sources of financing for each specific enterprise can be resolved based on the conditions and specifics of its work, the composition and structure of its property and other circumstances. An organization in sound financial condition has a total equity and long-term liabilities that exceed the value of non-current assets. In our case, at the end of the reporting period, this value is 5,643,792 thousand rubles. (excluding adjusting items), which may signal financial instability and require either a reduction in the value of non-current assets or an increase in their corresponding sources of financing. However, a deeper analysis of the enterprise's activities is required here.
As can be seen from the table, in 2004 there was a significant increase in the share of borrowed funds in the balance sheet currency, while the share of own funds decreased. At the same time, the main source of external financing is short-term liabilities, which are dominated by accounts payable. The absolute amount of the latter increased by 5,899,591 thousand rubles, and its share in the total amount of capital amounted to 19.57% at the end of the analyzed period.
Accounts payable at the end of the reporting period significantly exceeded the amount of receivables (by 5,241,148 thousand rubles, or 278.27%), which creates a threat of loss of financial stability of the enterprise. However, it is required to additionally compare the turnover rate of receivables and payables. In our case, receivables turn over more than 2 times faster than accounts payable (the receivables turnover ratio is 9.28 (14981,620:1 614,738.5), and the accounts payable turnover ratio is 3.59 (14,981,620: 4,174 837.5), calculated on average balances of receivables and payables).
This situation can be considered positively, as it provides an additional inflow of funds, i.e. accounts payable is used in the company's turnover as a temporary source of financing. However, the fact that the accounts payable at the end of the analyzed period significantly exceeds the accounts receivable does not allow one to fully use the advantage of the latter's faster turnover.
By analogy with the balance sheet, we will also form a document form for vertical-horizontal analysis of the Profit and Loss Statement. This analytical document is based on the original form of the Profit and Loss Statement (Table 13.2).
According to the table, it can be seen that the amount of revenue from sales in reporting year increased by 2,206,457 thousand rubles, or by 17.27% The amount of profit from sales also increased by 512,858 thousand rubles, however, its growth rate (13.73%) lags behind the growth rate of revenue, which indicates insufficient effective cost management of the organization.
Profit from the sale of products is the predominant share of profit before tax. Meanwhile, there is an excess of other expenses over other income, which means loss of profit from the sale of products and requires additional analysis of other income and expenses, their composition, structure. Thus, in the reporting year, the ratio of other income/other expenses was 0.56, while in in the previous year, the same indicator was 0.67, which indicates negative changes in financial results. The result was a decrease in profit before tax. Among other things, this reduces the organization's ability to finance expanded reproduction and pay dividends.
Net profit for the analyzed period decreased by 56,526 thousand rubles, and its share in revenue also decreased from 15.16% in the previous year to 12.55% in the reporting year.
In addition, it is advisable, according to the above reporting forms, to compare changes in the average value of property with changes in the financial results of the organization's activities over a number of periods. To do this, it is necessary to evaluate the dynamics of the following indicators:
Tp - profit growth rates (P, - P()) / P0, where P, and P0 - profit before tax for the reporting and base periods, respectively. Table 13.2
Vertical-horizontal analysis of the profit and loss statement of JSC "XXX"27 Indicators Previous year Reporting year Change thousand rubles. % of revenue thousand rubles % of revenue absolute (4-2) relative (5-3) 1 2 3 4 5 6 7 services 7,565,557 59.22 8,886,409 59.32 1,320,852 0.1 3. Commercial expenses 35,343 0.28 28,006 0.19 -7,337 -0.09 4. Administrative expenses 1,438,673 11.26 1,818 757 12.14 380,084 0.88 5. Profit (loss) from sales 3,735,590 29.24 4,248,448 28.36 512,858 -0.88 6. Interest receivable, income from participation in other organizations 101,217 0 .79 124,749 0.83 23,532 0.04 7. Interest payable (499,428) 3.91 (408,607) 2.73 -90,821 -1.18 8. Other income 2,119,077 16.59 2,149 273 14.35 30,196 -2.24 9. Other expenses (2,835,843) 22.20 (3,624,399) 24.19 788,556 1.99 10. Profit (loss) before tax 2,620,613 20.51 2 489,464 16.62 -131,149 -3.89 11. Deferred tax assets 94,602 0.74 29,713 0.20 -64,889 -0.54 12. Deferred tax liabilities 67,811 0.53 4289 0.03 -63 522 -0.5 13. Current income tax 512,975 4.02 669 351 4.47 156 376 0.45 | - In SW^; where B and Bro are sales revenue for the reporting and base period, respectively.
Tk - the growth rate of property (assets) of the organization (calculated in a similar way).
The following ratio of the indicated values is optimal:
Higher profit growth rates compared to sales volume growth rates indicate a relative reduction in production costs, which reflects an increase in economic efficiency organization's activities.
Higher rates of growth of proceeds from re&ііzation in comparison with assets indicate an increase in the efficiency of the use of its property.
However, deviations from this dependence are possible, which do not always indicate negative trends in the development of the organization. For example, the development of new promising directions development, associated with the modernization or reconstruction of production, the acquisition of new production facilities, leads to significant investments of financial resources, which for the most part do not give immediate profit, but in the future they can pay off.
On the example of the analyzed enterprise, we compare the indicated indicators (Table 13.3).
Table 13.3 Growth rates of property, revenues and profits Indicator Base year Reporting year Growth rate of the indicator, % Average annual value of property, thousand rubles. 24,283,568 32,402,588 33.43 Property value as of the date, thousand rubles 28,403,881 36,401,295 28.16 Sales proceeds, thousand rubles 12,775,163 14,981,620 17.27 Profit before tax, thousand rubles 2,620,613 2,489,464 -5.00 Thus, as can be seen from the table, there is an imbalance in the growth rates of assets, sales volume (revenue) and profit.
The main reason for this is the company's restructuring and reconstruction of existing production facilities, which contribute to an increase in property, but do not allow for a concomitant increase in sales in the short term.
It remains only to assume that the investment of financial resources of the organization will pay off in later periods and will contribute to the development of its core activities.
Before proceeding to the next stage of analyzing the financial condition of the organization, we will determine the main parameters (indicators) of its activities, calculated on the basis of the balance sheet, taking into account adjusting items, in order to use them in the future.
So, the total value of the property of the organization (balance sheet currency) at the beginning of the analyzed period amounted to 28,403,881 thousand rubles; at the end of the analyzed period - 36,401,295 thousand rubles;
the cost of immobilized (non-current) assets: at the beginning of the annihilated period - 24,731,741 thousand rubles; at the end of the period - 31,550,862 thousand rubles;
the cost of current assets (taking into account long-term receivables): at the beginning of the analyzed period - 3,672,140 thousand rubles; at the end of the period - 4,850,433 thousand rubles;
cost of current assets: at the beginning of the analyzed period - 3,672,140 thousand rubles; at the end of the period - 4,850,433 thousand rubles;
the value of inventories: at the beginning of the analyzed period - 1,078,285 thousand rubles; at the end of the period - 1,523,218 thousand rubles;
total amount of accounts receivable: at the beginning of the analyzed period - 1,345,992 thousand rubles; at the end of the period - 1,883,485 thousand rubles;
the amount of cash and short-term financial investments: at the beginning of the analyzed period - 1,247,863 thousand rubles; at the end of the period - 1,443,730 thousand rubles;
cost of own capital (net assets): at the beginning of the analyzed period - 22,911,208 thousand rubles; at the end of the period - 24,704,097 thousand rubles;
the amount of borrowed capital (total debt obligations): at the beginning of the analyzed period - 5,492,673 thousand rubles; at the end of the period - 11,697,198 thousand rubles;
long-term liabilities: at the beginning of the analyzed period - 3,048,077 thousand rubles; at the end of the period - 3,050,101 thousand rubles;
short-term (current) liabilities: at the beginning of the analyzed period - 2,444,596 thousand rubles; at the end of the period
RUB 8,647,097 thousand;
the amount of accounts payable: at the beginning of the analyzed period - 1,225,042 thousand rubles; at the end of the period
RUB 7,124,633 thousand 13.3.
Accounting (financial) statements are designed to assess the financial condition of the company by external users, among which the main place is occupied by shareholders, investors and creditors. The heads of the enterprise and leading managers must be able to read the financial statements and assess the financial position of the company, the management of which is entrusted to them by the owners.
The composition of the financial statements has already been considered. Most significant forms to assess the financial condition of the enterprise are the balance sheet (form number 1) and income statement (form number 2).
It is best to assess the financial condition of a company in the form of monitoring, that is, regularly from period to period. In this case, a dynamic picture is formed, changes are noticeable, trends in the development of the situation can be identified and measures can be taken in a timely manner to prevent a crisis.
The purpose of financial analysis is to evaluate:
With the help of financial analysis, you can also:
To make decisions in the field of management, production, marketing, finance, investment and innovation, management needs awareness on relevant issues, which is the result of the selection, analysis, evaluation and concentration of the original ("raw") information. It is necessary to master the analytical reading of the source data, taking into account the goals of analysis and management.
The basic principle of analytical reading of reports is the deductive method, that is, from the general to the particular, which must be applied repeatedly. In the course of such an analysis, it is as if the historical and logical sequence of economic facts and events is reproduced, the direction and strength of their influence on the results of activities is determined.
In practice, the basic rules for reading (method of analysis) of financial statements have been developed: horizontal analysis, vertical analysis, trend analysis, the method of financial ratios, comparative analysis, factor analysis.
Horizontal (temporal) analysis - comparison of each reporting position with the previous period.
Vertical (structural) analysis - determination of the structure of the final financial indicators with the identification of the impact of each reporting position on the result as a whole.
Trend analysis - comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible reporting indicators are formed in the future, therefore, a prospective, predictive analysis is carried out.
Analysis of relative indicators (coefficients) - calculation of relations between individual positions of the report or positions of various forms of reporting, determination of the relationship of indicators.
Comparative (spatial) analysis is both an on-farm analysis of summary reporting indicators in comparison with individual indicators of a company, subsidiaries, divisions, workshops, and an inter-farm analysis of the indicators of a given company in comparison with competitors' indicators, with average industry and average general economic data.
Factor analysis- analysis of the influence of individual factors (reasons) on the performance indicator using deterministic or stochastic methods of research. Factor analysis can be direct (analysis itself), i.e., splitting the effective indicator into its component parts, and reverse (synthesis), i.e., combining individual elements into a common effective indicator.
For the purposes of financial analysis, various indicators of the enterprise's financial statements and accounting and balance sheet data are used. By themselves, these indicators are of interest, but in comparison with each other, they make it possible to give an objective assessment of the financial position of the enterprise, a conclusion about the sufficiency of means of payment to secure obligations.
The ratio of various indicators of the balance sheet allows us to draw conclusions about the structure of capital, its distribution between various types of assets, the ratio of equity and borrowed capital. The calculation of various financial indicators and ratios is a method of financial analysis that allows you to get an objective picture of the financial situation of an enterprise and predict its further development.
Comparison of various financial indicators in dynamics allows us to identify trends in this development.
Financial analysis underlies financial planning. In particular, indicators of the duration of repayment of receivables and payables are used, on the one hand, to calculate the amounts of expected receipts and upcoming payments, on the other hand, to predict new values of these indicators at the end of the forecast period.
On the first stage analysis, the analyst must decide on the appropriateness of the analysis of the financial statements and make sure they are ready for reading.
This task is solved by familiarization with the auditor's report. It expresses the auditor's opinion on the reliability of financial statements. The auditor may express an unconditional positive opinion. If the auditor has doubts that he does not fully understand the picture of the enterprise, then an opinion is expressed with reservations. If the auditor's opinion is negative, it makes no sense to analyze the financial statements, since they are recognized as unreliable. The auditor's report may not be issued by the auditor if he did not have the opportunity to verify the quality of the financial statements.
To make sure that the reporting is ready for analysis, you need to check the availability of all approved forms, their filling in accordance with accepted rules.
Target second stage - familiarization of the analyst with the explanatory note to the balance sheet. This is necessary in order to assess the working conditions in the reporting period, to determine the trends in the main performance indicators, as well as qualitative changes in the property and financial position of the enterprise. The analyst meets accounting policy the analyzed subject, since changes in it can lead to significant consequences in the results of the analysis.
Third stage - the main one in the express analysis, its purpose is a generalized assessment of the results of economic activity and the financial condition of the enterprise. Such analysis is carried out with varying degrees of detail in the interests of various users.
In general, the program for analyzing the financial and economic activities of the enterprise is as follows:
3.6. Analysis of potential bankruptcy.
The information base for analysis is prepared in special tables based on the balance sheet and reporting.
In the process of analysis, an idea is formed about the activities of the enterprise, changes in the composition of its property and sources are revealed, and relationships between various indicators are established. For this purpose, the ratios of individual items of the asset and liabilities of the balance sheet, their share in the total result (currency) of the balance sheet are determined, the sums of deviations in the structure of the main balance sheet items are calculated compared to the previous period.
For the convenience of such an analysis, it is advisable to use the so-called compacted analytical net balance, formed by eliminating the impact on the currency (total) of the balance sheet and its structure of regulatory articles.
So, the amount of equity capital should be reduced by the amount of debt of participants (founders) on contributions to the authorized capital; the value of assets and liabilities decreases by the amount of losses. By the value of the balance on account 63 “Reserves for doubtful debts” the items of receivables in the balance sheet were adjusted.
After that, elements of balance sheet items that are homogeneous in composition are combined in the necessary analytical sections (long-term and current assets, equity and borrowed capital). In this way, total amount changes in the balance sheet currency is divided into components, which allows us to draw preliminary conclusions about the nature of shifts in the composition of assets, the sources of their formation and their mutual conditionality. Yes, in progress preliminary analysis changes in the composition of long-term (non-current) and current (current) assets are considered in connection with changes in the obligations of the enterprise.
An in-depth analysis of the financial position involves the involvement of internal accounting data, which allows you to adjust the reporting data in order to increase its reliability. For this purpose, the balance sheet items are regrouped, i.e., consolidation and determination of the balance sheet structure - the ratio of each of the balance sheet items to its total. The deviations of indicators at the end of the year from those at the beginning of the reporting period are determined both in absolute figures and in relative ones (percentage and balance sheet currency).
To identify the causes of changes in the financial position of the enterprise, at the next stage of the analysis of liquidity and solvency, the calculation and assessment of the dynamics of analytical coefficients characterizing the financial position of the enterprise are performed.
The results of the calculations should be given a preliminary economic interpretation: assessment of the ratio of own and borrowed funds of the enterprise from the standpoint of its financial stability and creditworthiness; a general conclusion regarding the solvency and liquidity of the enterprise; characteristics of the emerging trends in the liquidity of the enterprise, as well as the factors that determine them.
For example, a decrease in the liquidity of an enterprise can be affected by the outstripping growth of short-term liabilities compared to the change in the value of its working capital by the end of the year, a decrease in the share of easily marketable assets, etc.
One of the most important criteria for assessing the financial position of an enterprise is its solvency. In the practice of financial analysis, there are long-term and current solvency. The first is the ability of the enterprise to pay for its long-term obligations. The ability of an enterprise to pay its short-term obligations is called liquidity or current solvency. In other words, an enterprise is considered liquid if it is able to meet its short-term obligations by realizing current assets.
The task of analyzing the liquidity of the balance sheet arises in connection with the increased rigidity of financial restrictions and the need to assess the creditworthiness of the enterprise, i.e., its ability to pay off all its obligations in a timely and complete manner. The liquidity of the balance sheet is defined as the degree to which the company's liabilities are covered by its assets, the period of transformation of which into money corresponds to the maturity of the liabilities.
Depending on the degree of liquidity, i.e. the rate of conversion into cash, the assets of the enterprise are divided into the following groups:
Liabilities of the balance sheet are grouped by urgency their payment:
The following indicators are used to characterize liquidity:
Such an assessment is called a preliminary assessment of the liquidity of the enterprise and is carried out according to the balance sheet. However, these data are not enough for a more accurate and detailed analysis. The fact is that an enterprise can be recognized as insolvent even if there is a sufficient excess of asset items over its liabilities, if the capital is invested in hard-to-sell or illiquid types of assets. So, a delay in payments when the amount of working capital and the timing of turnover does not match the amount of the company's obligations can lead to the termination of payments altogether.
AT financial analysis a system of coefficients characterizing liquidity is used.
Absolute liquidity ratio (term ratio) is calculated as the ratio of cash and marketable securities to short-term debt. The term ratio shows how much of the current debt can be repaid on the balance sheet date or other specific date.
By international rules this figure is represented as a proportion (for example, 0.06:1). Such a proportion indicates that the enterprise could not repay its obligations urgently. It is experiencing a serious shortage of funds. In such conditions, the current solvency of the enterprise depends entirely on the reliability of debtors. Approximately, we note that the values of the specified coefficient, which are in the range of 0.2-0.3, are considered normal (permissible).
The revised liquidity ratio is defined as the ratio of cash, securities and receivables to short-term liabilities.
This indicator characterizes that part of current liabilities that can be repaid not only from cash, but also from expected receipts for shipped products, work performed or services rendered. The recommended value of this indicator is 1:1.
The quality of receivables must also be taken into account. A significant proportion of doubtful receivables can pose a threat to the financial stability of the enterprise. However, in domestic practice it is extremely difficult to assess the quality of receivables, since many enterprises in explanatory note the report does not even indicate that they have doubts about the repayment of receivables. Thus, the real picture of solvency is distorted.
General liquidity ratio (coverage ratio) represents the ratio of all current assets (the result of section II of the asset balance) to short-term liabilities. It allows you to establish the multiplicity of current assets cover short-term liabilities.
Justifying the acceptable value of this indicator is quite difficult. It is clear that its value will vary depending on the scope of the enterprise. Thus, due to objective reasons, a significant share of hard-to-sell assets, for example, work in progress in the composition of working capital, the duration of the production and commercial cycle of industrial and construction enterprises, a higher value of the coverage ratio is required than for enterprises in the sphere of trade, supply and marketing.
It is believed that if the ratio of current assets and short-term liabilities of the enterprise is lower than 2:1, it is not able to fully and on time pay off its obligations.
Multiple excess of current assets over short-term liabilities (the situation is much rarer for Russian enterprises) allows us to conclude that the enterprise has a significant amount of free resources generated from its own sources. From the point of view of creditors, such a variant of the formation of working capital is most preferable. From the point of view of the efficiency of the enterprise, a significant accumulation of inventories, the diversion of funds into receivables may be evidence of inept asset management. All values in the range from 2 to 4 are considered normal (depending on the composition of the assets). However, for a number of objective and subjective reasons, and above all, such as the lack of equity capital, the primary use of net profit for consumption needs, the value of the coverage ratio for most Russian enterprises is much lower than the recommended one.
Attention is drawn to the extremely dangerous financial policy in terms of inflation to increase the volume of lending to its customers, when receivables for the reporting period grow faster than accounts payable. As a result, significant amounts received by the enterprise on short-term bank loans are transferred to buyers and customers (as receivables); part of the funds received on a loan (paid) basis is spent on “free” lending to suppliers (advance payments issued).
Thus, the enterprise violates the basic principle of successful financial policy, which involves lending to its debtors on the same terms on which the enterprise itself receives loans.
The coefficients under consideration have certain disadvantages, in particular, they are static (therefore, it is better to consider them in dynamics), the possibility of overestimating the values of indicators due to the inclusion of illiquid inventories of goods and materials in the current assets, as well as due to unreal receivables.
Since at present non-payments have become a mass phenomenon, and a significant part of receivables is overdue, most of it cannot be collected and will never be repaid, it can be concluded that the increase in the share of receivables is due to the low payment discipline of buyers, and not for by increasing the company's sales volume.
In order to improve the quality of the analyzed indicators, it is first necessary to assess the timing and composition of receivables and adjust its value, minus debts that are unlikely to be collected.
In table. 11.1 shows the calculation formulas and recommended values of solvency and liquidity indicators.
Table 11.1. Calculation of indicators for assessing solvency and liquidity
|
Index |
||
|
1. Liquidity ratios |
||
|
1.1. Current solvency ratio |
Current assets: Short-term accounts payable |
At least 2 |
|
1.2. Intermediate solvency and liquidity ratio |
(Cash + Short-term financial investments + + Accounts receivable): : Short-term accounts payable |
1 or more for Russia 0.7-0.8 |
|
1.3. Absolute liquidity ratio |
(Cash + Short-term financial investments): : Short-term accounts payable |
0,2-0,3 |
|
2. Indicators qualitative characteristics solvency and liquidity |
||
|
2.1. Structure of assets by their liquidity |
||
|
2.2. Net working capital |
Current assets - Current liabilities or (Equity + Long-term liabilities) - Non-current assets |
The growth of the indicator in dynamics is a positive trend |
|
2.3. Cash to net working capital ratio |
Cash: Net working capital |
Growth in dynamics - a positive trend |
|
2.4. Ratio of inventories and net working capital |
Inventory: Net working capital |
The closer the score is to 1, the worse |
|
2.5. Inventory to short-term debt ratio |
Inventories: Short-term accounts payable |
|
|
2.6. The ratio of receivables and payables |
Amount of accounts receivable: Amount of accounts payable |
|
