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Introduction

Chapter 1. Theoretical foundations for analyzing the financial condition of an enterprise

1.1 Financial condition of the enterprise: concept and types

1.2 Analysis and assessment of the financial stability of the enterprise

1.2.1 The importance of financial sustainability

1.2.2 Financial stability indicators

1.2.3 Financial stability ratios

1.3 Analysis of liquidity and solvency indicators

Chapter 2. Assessment of the financial and economic condition of Promet LLC for 2009-2010.

2.1 Measures to improve the solvency and financial stability of Promet LLC

Conclusion

List of used literature

INconducting

The problem of maintaining a stable financial condition has always faced the management of each enterprise and is largely determined by the ability to analyze its activities. Conducting regular comprehensive financial analysis based on financial statements allows you to solve this problem.

Financial analysis is an indispensable element of both financial management at an enterprise and its economic relationships with partners, with the financial and credit system, with tax authorities, etc. The content and main goal of financial analysis is assessing the financial condition and identifying opportunities for increasing the efficiency of the functioning of an economic entity through sound financial policies.

The financial condition of an enterprise is an important characteristic of the reliability and stability of the development of the enterprise, it determines the competitiveness and potential of the enterprise in business cooperation, the efficiency of the use of financial resources and capital, the timely fulfillment of obligations to the state and other economic entities, and is a guarantor of the effective implementation of economic interests of the enterprise itself, and his partners. The sound financial condition of an enterprise is an important condition for its continuous and effective functioning. To achieve it, it is necessary to ensure the solvency of the entity, sufficient liquidity of its balance sheet, financial independence and high business performance.

The need to improve the efficiency of the financial and economic mechanism of enterprises is determined by market requirements. Before the transition to a market economy, the functions of financial and economic services were often reduced to collecting and processing information for government authorities. The enterprise was considered only as a link in the management structure of a single state property.

In market relations, the role of finance and financial and economic services changes. Enterprises become economically independent, not directly dependent on the state, and therefore are forced to determine the main sources of resources themselves, optimize management decisions, based on the results of financial activities. In this regard, the management of the enterprise has a need to have timely and complete information for making management decisions and assessing their effectiveness, which is especially important in connection with the existing negative phenomena in the financial sector.

In conditions of unstable economic and social situation, most often there is a situation when an enterprise, due to insufficient financial stability, is very close to bankruptcy. But this can be avoided, or losses can be reduced, if you resort to financial analysis - an analysis of financial stability and are more likely to avoid “troubles” or reduce the degree of risk.

In addition, in modern conditions, the correct determination of the real financial condition of an enterprise is of great importance not only for the business entities themselves, but also for numerous shareholders and especially future potential investors. Today, more than ever, large investments from non-state sources are needed. But those who wanted and could invest free funds in the development of entrepreneurship should be confident in the reliability and financial well-being of enterprises, the development of which can indeed bring real benefits. That is why it is currently so important to be able to analyze the financial stability of enterprises and make reasonable forecasts of changes in their financial situation.

Chapter 1.Theoretical foundations of financial analysisenterprises

1.1 Financial condition of the enterprise: concept and types

finance liquidity solvency

In the process of supply, production, sales and financial activities, a continuous process of capital circulation occurs, the structure of funds and sources of their formation, the availability and need for financial resources change, and the financial condition of the enterprise changes.

Financial condition enterprises in the most general sense are an economic category that reflects the state of capital in the process of its circulation and the ability of a business entity to self-development at a fixed point in time. The financial condition of a company is a complex concept, the most general characteristic of its activities. It is determined by the entire set of external and internal factors and is characterized by a system of indicators.

The financial activity of an enterprise covers the processes of formation, movement and ensuring the safety of the enterprise’s property, control over its use. In this regard, financial condition can be considered as the ability of an enterprise to finance its activities. It is characterized by the provision of financial resources that are necessary for the normal functioning of the enterprise, the appropriate placement of these resources and effective use, financial relationships with other legal entities and individuals, solvency and financial stability.

At the same time, financial condition is the most important characteristic of the economic activity of an enterprise in the external environment. It determines the competitiveness of the enterprise, its potential in business cooperation, assesses the extent to which the economic interests of the enterprise itself and its partners in financial and other relations are guaranteed. For example, the financial condition of an enterprise is the main criterion for banks when deciding whether to issue a loan to it, at what interest rate and for what period.

All users of financial statements (managers, shareholders, investors, various creditors, tax services, statistical authorities, etc.) set themselves the task of analyzing the state of the enterprise and, on its basis, drawing conclusions about the directions of their activities in relation to the enterprise.

The financial condition of an enterprise can be assessed from the point of view of short-term and long-term prospects.

In the first case, the criteria for assessing the financial condition are the liquidity and solvency of the enterprise, i.e. the ability to timely and fully make payments on short-term obligations.

From a long-term perspective, the financial condition of an enterprise is characterized by the structure of sources of funds, the degree of dependence of the enterprise on external investors and creditors.

The main indicators characterizing the financial condition of the enterprise are:

· provision of own working capital and their safety;

· the state of normalized inventories of material assets;

· efficiency of using a bank loan and its material support;

· assessment of the stability of the solvency of the enterprise.

Analysis of factors determining financial condition helps to identify reserves and increase production efficiency.

The financial condition depends on all aspects of the enterprise’s activities: on the implementation of production plans, reducing production costs and increasing profits, increasing production efficiency, as well as on factors in the sphere of circulation and related to the organization of the circulation of commodity and cash funds - improving relationships with suppliers of raw materials and supplies, buyers of products, improving sales and settlement processes.

According to one of the classifications, the financial condition of an enterprise can be:

· absolutely stable (when inventories and costs are less than the sum of its own working capital and bank loans), the enterprise does not depend on external creditors;

· normally stable (inventories and costs are equal to the sum of its own working capital and bank loans, i.e., the solvency of the enterprise is guaranteed), the enterprise uses “normal” sources of funds - its own and borrowed;

· unstable (pre-crisis), when the balance of payments is disrupted, but the possibility of restoring the balance of means of payment and payment obligations remains possible. In this case, the enterprise is forced to attract additional sources of coverage;

· crisis (the enterprise is on the verge of bankruptcy), when inventories and costs exceed the sum of its own working capital and bank loans. Here, in addition to additional sources of coverage, the company has loans and borrowings that are not repaid on time, as well as overdue accounts payable and receivables.

The financial condition of an enterprise is considered stable if it is able to make timely payments and finance its activities on an expanded basis.

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

The financial condition of an enterprise, its sustainability and stability depend on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, this has a positive effect on the financial position of the enterprise. And, conversely, as a result of underfulfillment of the plan for the production and sale of products, there is an increase in its cost, a decrease in revenue and the amount of profit and, as a consequence, a deterioration in the financial condition of the enterprise and its solvency.

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

Financial stability can be restored through:

· acceleration of capital turnover in current assets (as a result there will be a relative reduction in capital per ruble of turnover);

· justified reduction of inventories and costs (to the standard);

· replenishment of own working capital from internal and external sources.

Therefore, during internal analysis, an in-depth study is carried out of the reasons for changes in inventories and costs, turnover of current assets, the availability of own working capital, as well as reserves for reducing long-term and current tangible assets, accelerating the turnover of funds, increasing own working capital.

According to another classification, there are:

· good financial condition is the efficient use of resources, the ability to meet one’s obligations in full and on time, sufficiency of one’s own funds, sustainable profits, etc.;

· poor financial situation, which is expressed in unsatisfactory payments, ineffective use and placement of funds, leads to bankruptcy, i.e. persistent inability of the enterprise to meet its obligations.

This classification is, in fact, a more enlarged version of the previous classification.

Speaking about the financial condition, it is advisable to consider the points of view of various entities directly or indirectly interacting with the enterprise on the need and usefulness of analyzing the financial condition.

There are five main groups of entities interested in obtaining detailed information about the financial situation and activities of an organization: entities providing short-term loans;

· entities providing long-term loans;

· shareholders;

· management of the organization;

· tax authorities.

Each group of subjects interested in obtaining information about the financial condition of the organization has its own point of view and pursues different interests from others when conducting financial analysis, which is due to different financial attitudes towards the analyzed organization. To understand the perspectives of each group and determine the direction of analysis that meets the interests of a particular group, we will consider in more detail the specifics of the approach of each group of reporting users.

A special role in this issue belongs to the management of the organization, which must understand the points of view of other groups of subjects interested in obtaining information about the financial condition of the organization.

Creditors, those issuing short-term loans (commercial banks, suppliers or merchants) are primarily interested in the organization's liquidity - the organization's ability to earn money and fulfill its obligations on time. To meet the needs of this group, financial analysis must provide a detailed analysis of the quality and nature of the movement of short-term assets and short-term liabilities, as well as allow for the study of consistent changes in the turnover of funds (creation and sale of inventories, invoicing and repayment of debt).

If a financial analysis of liquidity raises doubts about the organization's ability to create the necessary cash, the lender draws attention to its solvency, which is the relative excess of the value of assets over the value of liabilities (liabilities). If an organization fails to fulfill its obligations (to repay debts), the question arises: how high is the degree of reliability of creditor protection guaranteed by the total value of assets? The lender in this case is exposed to a certain risk of complete or partial loss of his investment. Typically, for lenders providing short-term loans, the profitability of the organization is not a primary concern. However, every bank, any merchant (supplier) is more willing to work with a profitable organization, since cooperation with successful partners is the key to strong, stable relationships in the future, but neither the bank nor the supplier directly participates in the organization’s profits. The bank receives its fixed interest and payments, and the supplier receives revenue from trading activities. The main requirement made by representatives of the group in question is the presence of certain guarantees of receiving their money back in a relatively short time. An unfavorable financial and economic situation in an organization affects the degree of risk to which creditors are exposed. Therefore, in most cases, the purpose of their analysis is to answer the question: will the organization fulfill its obligations even if there is no profit?

Long-term creditors (such as bondholders or pension funds and insurance companies) are also interested in the firm's liquidity for short-term obligations. Thus, if the lack of liquid assets is the reason for the organization’s failure to fulfill short-term obligations, this can lead to complications in relations with other groups of investors. If a potential creditor has reason to expect that the debtor will encounter certain liquidity problems in the future, he will probably be reluctant to invest in the institution's bonds and provide credit to it. Lenders who provide long-term loans usually focus on the organization's ability to pay long-term obligations. In order for an organization to meet its obligations and pay interest, it must remain profitable for a sufficiently long time. Therefore, lenders providing long-term loans conduct an analysis and forecast of the organization’s future financial activities, assess the stability of cash flows and the organization’s expected income up to the deadline for fulfilling long-term obligations.

For shareholders the issue of liquidity, solvency and the relationship between future profits and cash flow is relevant (cash flow, cash flow) to long-term liabilities (debts). Dividends are a payment from profits, which is made after repayment of other types of debt (interest, taxes); Consequently, shareholders are in the position of the last beneficiaries receiving a share of the organization's profits. The value of shares directly depends on the expected future profit (income) from the shares, more precisely, on the future cash flow and the risk to which the invested capital is exposed. The analysis, which is carried out in the interests of shareholders, is based on a forward-looking estimate of future returns from equity capital. Shareholders consider the liquidity of short-term liabilities and the solvency of long-term debt in terms of their impact on the risk to which they are exposed.

Organization management sees his main task as making share prices as high as possible, so his approach to analysis is essentially the same as that of shareholders. However, shareholders hold the organization's management responsible for maintaining sufficient liquidity, fulfilling obligations to creditors and attracting sufficient capital for the organization's activities through obtaining loans and new investments (sale of shares). Therefore, the management of the organization must also approach financial analysis from the point of view of creditors providing long-term and short-term loans, that is, it must understand the position of the other party.

Tax authorities carry out an analysis based on the submitted reporting data in order to identify suspicious taxpayers, that is, taxpayers who either commit tax offenses or are purposefully engaged in reducing the tax burden.

To summarize all of the above, we note the following:

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

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

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

1. 2 Analysisand assessment of financial stabilityenterprises

Financial stability is a certain state of the company’s accounts, guaranteeing its constant solvency. An important indicator that characterizes the financial condition of an enterprise and its stability is the availability of working capital from its own sources of financing. Some organizations use sources of debt in business, but excessive use of debt is considered risky. To assess the risks associated with financing the activities of an enterprise with the help of attracted sources and funds, it is necessary to calculate the financial stability indicator. Almost all enterprises have two sources of financing their activities: their own and attracted.

Own sources of financing activities are amounts that the company does not need to pay to creditors. Attracted sources of funds are amounts that are characterized by a clearly defined period of existence - until the moment when it is necessary to repay accounts payable or repay an existing loan.

By comparing the volume of its own sources with the volume of attracted sources, the financial stability of the enterprise or the degree of its dependence on attracted sources of financing is determined. Financial stability is determined by calculating the ratio of equity and borrowed funds. If an enterprise wants to have borrowed funds in its turnover, it must ensure a sufficiently high level of solvency at which creditors provide it with these borrowed funds.

The purpose of analyzing the financial condition of an enterprise is to increase the efficiency of its work on the basis of a systematic study of activities and generalization of its results.

1. 2.1 Zmeaning of financial stability

The key to survival and the basis for the stability of an enterprise’s position is its sustainability. The sustainability of an enterprise is influenced by various factors:

The position of the enterprise in the product market;

Production and release of cheap, high-quality products that are in demand on the market;

Its potential in business cooperation;

Degree of dependence on external creditors and investors;

Presence of insolvent debtors;

Efficiency of business and financial transactions, etc.

This variety of factors also divides resistance itself by type. So, in relation to an enterprise, it can be: depending on the factors influencing it - internal and external, general (price), financial.

1. Internal stability is the general financial condition of an enterprise that ensures consistently high results of its functioning. Its achievement is based on the principle of active response to changes in internal and external factors.

The external stability of an enterprise is determined by the stability of the economic environment within which its activities are carried out. It is achieved by an appropriate system of market economy management throughout the country.

2. The overall sustainability of an enterprise is a movement of cash flows that ensures that the receipt of funds (income) always exceeds their expenditure (costs).

3. Financial stability is a reflection of the stable excess of income over expenses, ensures free maneuvering of the enterprise’s funds and, through their effective use, contributes to the uninterrupted process of production and sales of products. Therefore, financial stability is formed in the process of all production and economic activities and is the main component of the overall sustainability of the enterprise.

An analysis of the stability of the financial condition of an enterprise on a particular date allows us to answer the question: how correctly the enterprise managed its financial resources during the period preceding this date. It is important that the state of financial resources meets the requirements of the market and meets the development needs of the enterprise, since insufficient financial stability can lead to the insolvency of the enterprise and the lack of funds for the development of production, and excess financial stability can hinder development, burdening the enterprise’s costs with excess inventories and reserves. Thus, the essence of financial sustainability is determined by the effective formation, distribution and use of financial resources. Its external manifestation is the solvency of the enterprise.

Solvency is the ability to fully fulfill your payment obligations arising from trade, credit and other payment transactions in a timely manner.

1.2. 2 PokAchievers of financial stability

Absolute indicators of financial stability are indicators characterizing the degree of provision of reserves and costs with sources of their formation.

To assess the state of inventories and costs, use the data from the group of items “Inventories” of section II of the asset balance sheet.

To characterize the sources of reserve formation, three main indicators are determined.

1. Availability of own working capital(SOS), as the difference between capital and reserves (I section of the liability side of the balance sheet) and non-current assets (I section of the asset side of the balance sheet). This indicator characterizes net working capital. Its increase compared to the previous period indicates the further development of the enterprise. In a formalized form, the availability of working capital can be recorded.

SOS=IrP - IrA

where IрП is the first section of the liabilities side of the balance sheet;

IрА - I section of the balance sheet asset.

2. Availability of own and long-term borrowed sources for the formation of reserves and costs (SD), determined by increasing the previous indicator by the amount of long-term liabilities (IIrP - II section of the balance sheet liability):

SD = SOS + IrP

3. The total value of the main sources of reserves and costs(OI), determined by increasing the previous indicator by the amount of short-term borrowed funds (SBL):

OI = SD + KZS

Three indicators of the availability of sources of reserve formation correspond to three indicators of the provision of reserves with sources of their formation:

1. Surplus (+) or disadvantage (-) own working capital (D SOS):

D SOS = SOS - W

where Z is reserves.

2. Surplus (+) or disadvantage (-) own and long-term sources of reserve formation (D SD):

D SD=SD - 3

3. Surplus (+) or disadvantage (--) total value of the main sources of reserve formation (DOI):

D OI = OI - 3

To characterize the financial situation of an enterprise, there are four types of financial stability:

First - absolute stability financial condition, which is extremely rare in the current conditions of economic development of Ukraine, is specified by the condition:

Z< СОС + К,

where K - bank loans for inventory items, taking into account loans for goods shipped and part of the accounts payable offset by the bank when lending;

Second - normal stability the financial condition of the enterprise, guaranteeing its solvency, meets the following condition:

Z = SOS + K.

Third - unstable financial condition , characterized by a violation of solvency, in which it remains possible to restore balance by replenishing sources of own funds and increasing SOS:

Z = SOS + K + IOFN

where IOFN are sources that weaken financial tension, according to the insolvency balance sheet.

Financial instability is considered normal (acceptable) if the amount of short-term loans and borrowed funds attracted for the formation of reserves does not exceed the total cost of raw materials, materials and finished products.

Fourth - financial crisis , in which the enterprise is on the verge of bankruptcy, because cash, short-term securities and accounts receivable are not; even cover its accounts payable and overdue loans:

It is advisable to use absolute indicators to characterize the financial situation that has arisen within one enterprise, in conditions of comparability of indicators.

1.2.3 Financial stability ratios.

To characterize the financial situation in the economy, relative indicators of financial stability are used. Relative indicators are called financial ratios. Analysis of financial ratios consists of comparing their actual values ​​with basic values, as well as studying the dynamics of these indicators for the reporting period and for a number of years.

All relative indicators of financial stability can be divided into two groups.

First group - indicators that determine the state of working capital:

· equity ratio;

· coefficient of provision of material reserves with own working capital;

· coefficient of maneuverability of own funds.

Second group - indicators that determine the state of fixed assets (permanent asset index, K long-term borrowed funds, K depreciation, K real value of property) and the degree of financial independence K autonomy, K debt-to-equity ratio), where K is the coefficient.

The calculated actual ratios of the reporting period are compared with the norm, with the value of the previous period, of a similar enterprise, and thereby the real financial condition, weaknesses and strengths of the company are revealed.

1. Own funds ratio.

Characterizes the degree of security of the enterprise's SOS, necessary for financial stability. This coefficient must be greater than 0.1.

2. The ratio of provision of material reserves with own funds.

Shows the extent to which inventories are covered by own funds and do not require borrowing.

3. Equity capital agility ratio

The optimal value is 0.5.

Shows how mobile your own sources of funds are from a financial point of view: the more, the better the financial condition.

Shows the share of fixed assets and non-current assets in sources of equity.

5. Long-term borrowing ratio.

Assesses how intensively the enterprise uses borrowed funds to update and expand production. (If capital investments made through lending lead to a significant increase in liabilities, then the use is advisable.)

6. Wear rate.

Shows the extent to which the replacement and renewal of fixed assets is financed through depreciation (the longer, the greater K or there may be accelerated depreciation).

7. Real property value coefficient (Krsi):

Shows what share in the value of property is made up of means of production, the level of production potential of the enterprise, and the provision of means of production (norm 0.5).

8. Autonomy coefficient(financial independence or concentration of equity capital)

This means that all obligations of the enterprise can be covered with its own funds. The growth of Ka means an increase in financial independence.

9. Debt to equity ratio

Shows how many borrowed sources of funds account for 1 ruble of own sources of funds. Critical value for the indicator<1. Чем выше значение этого коэффициента, тем сильнее зависимость предприятия от внешних источников, тем ниже его финансовая устойчивость.

1.3 Analysisliquidity and solvency indicators

By indicators of liquidity and solvency, you can assess the financial and economic stability of the enterprise.

The system of analytical coefficients is usually represented by five groups of indicators in the following areas of financial analysis:

Analysis of liquidity and solvency;

Analysis of current activities;

Financial stability analysis;

Cost-benefit analysis;

Analysis of the situation and activities in the capital market.

In the process of financial analysis, the current financial condition of the enterprise is assessed, and an assessment from a long-term perspective is also possible.

The criteria for assessing the financial condition of an enterprise are the solvency of the enterprise and its liquidity.

Solvency is the enterprise’s readiness to repay debts in the event of simultaneous demands for payment from all creditors of the enterprise. It is clear that we are talking only about short-term borrowed funds - for long-term ones, the repayment period is known in advance and does not apply to a given period.

Solvency is the presence of funds at the enterprise sufficient to pay debts on all short-term obligations and at the same time uninterrupted implementation of the process of production and sale of products. An indicator characterizing the level of solvency is the ratio of liquid working capital to the amount of short-term debt. Liquid working capital includes data from sections II and III of the asset of the enterprise’s balance sheet minus deferred expenses and other assets, because funds under these two items cannot be converted into money to pay off debts. The numerator of this indicator must significantly exceed the denominator. Accordingly, the level of the indicator should be significantly higher than one. A qualitative assessment of the level of solvency indicator at each enterprise must be assessed quantitatively.

The main signs of an enterprise's solvency, ideally, are the presence of sufficient funds in the current account and the absence of overdue short-term debt.

Current solvency (Ptek) for the reporting period is determined according to Form No. 1 “Balance Sheet” as follows:

Ptek =

Where Spl is the amount of payment means of the enterprise; Sob - urgent obligations of the enterprise.

Determining solvency only based on absolute balance sheet amounts, without additional information about the timing of payment of accounts payable, the timing of receipt of receivables and other payments, leads to significant inaccuracies, which is why liquidity indicators are used.

The liquidity of an enterprise is its ability to meet its short-term obligations, i.e. repay short-term accounts payable on time. Liquidity is characterized by the degree to which liabilities are covered by assets, the period of transformation of which into monetary form corresponds to the period of repayment of liabilities.

A low level of liquidity means a lack of freedom of choice. The consequence of illiquidity is the inability of an enterprise to pay its current obligations, which forces it to sell assets, and ultimately leads to bankruptcy.

For an enterprise, a low level of liquidity leads to a decrease in profitability and the loss of part of its fixed assets. For creditors - to a delay in payment of interest and principal amount of the debt due to them, i.e. to partial or complete loss of amounts due to them.

To assess the financial condition of an enterprise, the following liquidity ratios are calculated:

Ktl - current ratio or coverage ratio. This is the ratio of all current assets to the amount of short-term liabilities. Recommended value: current ratio (1< Ктл >2). With lower values ​​of the coefficient, the balance sheet structure is considered unsatisfactory. The growth of the coefficient is a positive trend.

Ksl - coefficient fast or critical liquidity (interim coverage ratio), characterizes the solvency of the enterprise for the period of average turnover of receivables. Recommended value: coefficient Ksl >= 0.6 -1.

Kal - total coverage ratio or absolute liquidity ratio. E that is the ratio of quickly realizable working capital to the amount of short-term liabilities. Recommended value of the absolute liquidity ratio: (0.2 0.3).

The general principle for assessing liquidity ratios is as follows: an increase in the ratios indicates an improvement in the current solvency of the enterprise.

Chapter 2. Assessment of the financial and economic condition of Promet LLC for 2009-2010.

Assessment of the financial and economic activities of the enterprise Promet LLC for the period from 2009 to 2010. will be of an intra-company nature, and will be carried out through the assessment and analysis of the following performance indicators:

· Property status of the enterprise (balance sheet analysis);

· Financial stability and independence of the enterprise;

· Profitability;

· Liquidity;

· Solvency.

Analysis and evaluation of these indicators will be carried out using coefficient, graphical and tabular methods, which will allow us to fully characterize the financial and economic condition of Promet LLC for 2009-2010.

To study the structure and dynamics of the analyzed indicators of the enterprise for the period under study, let us turn to the data of the comparative analytical balance of the enterprise.

Analyzing the comparative balance data, the following conclusions can be drawn:

· Increase in property of the analyzed enterprise for the period 2009-2010. increased by 71.03 million rubles. and amounted to 177.85 million rubles in 2010. This change is 89% due to an increase in fixed assets and investments and 11% due to an increase in working capital.

· In 2010, the share of fixed assets and investments in property increased by 24% and amounted to 52%, and the share of current assets decreased by 24% and amounted to 48%.

· For the period 2009-2010. there was a decrease in the share of cash from 2% to 1%.

· The share of accounts receivable changed by 1%.

· The increase in the enterprise's balance sheet in 2010 was ensured by an increase in equity capital by only 5%, and 95% was covered by an increase in the enterprise's short-term liabilities.

· For the period 2009-2010. the share of equity in property decreased by 7% and amounted to 15%, while the share of borrowed funds increased by 19% and amounted to 25% by the end of 2010 versus 6% in 2009.

· The share of accounts payable in 2010 decreased by 12% and amounted to 60% versus 72% in 2009.

Thus, we see that the structure of the enterprise’s balance sheet for 2009-2010 underwent changes in the direction of a sharp increase in immobilized (fixed) assets and a decrease in working (more mobile) assets in the total value of property:

· The growth rate of immobilized funds was 211%, the growth rate of working capital was 10%.

· The growth rate of own sources was only 15%, while the growth rate of short-term liabilities was 81%.

· In 2010, the enterprise's dependence on short-term sources increased.

Thus, despite the increase in the value of the enterprise’s property, the structure of the enterprise’s assets, from a financial point of view, worsened in 2010 compared to the same period last year.

Let us analyze the indicators of financial stability and independence of the enterprise for the period 2009-2010. The level of financial independence is determined by calculating a number of coefficients.

Let us determine the level of financial independence of the enterprise Promet LLC for 2009-2010. (Table 2.1).

Table 2.1 Financial stability coefficients of the enterprise Promet LLC for 2009-2010

Coefficient name	Normative value			Deviation (+;-)
Autonomy coefficient
Provision ratio of own working capital in terms of current assets
Financial independence ratio in terms of stock formation and costs
Equity agility ratio
Attraction rate
Funding ratio

Financial sustainability analysis: What is it?

Financial stability- an integral part of the overall sustainability of the enterprise, the balance of financial flows, the availability of funds that allow the organization to maintain its activities for a certain period of time, including servicing received loans and producing products.

Key indicators of the financial stability of the organization

Index	Description of the indicator and its standard value
Autonomy coefficient	The ratio of equity to total equity. Generally accepted normal value: 0.5 or more (optimal 0.6-0.7); however, in practice it varies greatly by industry.
Financial leverage ratio	The ratio of debt to equity capital.
Provision ratio of own working capital	The ratio of equity capital to current assets. Normal value: 0.1 or more.
	The ratio of equity and long-term liabilities to total capital. Normal value for this industry: 0.7 or more.
Equity agility ratio	The ratio of own working capital to sources of own funds.
Property mobility coefficient	The ratio of current assets to the value of total property. Characterizes the industry specifics of the organization.
Working capital mobility coefficient	The ratio of the most mobile part of working capital (cash and financial investments) to the total value of current assets.
	The ratio of own working capital to the amount of inventories. Normal value: 0.5 or more.
Short-term debt ratio	The ratio of short-term debt to total debt.

The main indicator influencing the financial stability of an organization is the share of borrowed funds. It is generally believed that if borrowed funds make up more than half of a company's funds, then this is not a very good sign for financial stability; for different industries, the normal share of borrowed funds may fluctuate: for trading companies with large turnovers it is much higher.

In addition to the above ratios, the financial stability of an enterprise reflects the liquidity of its assets in comparison with its liabilities by maturity: the current ratio and the quick ratio.

Autonomy coefficient

Autonomy coefficient(financial independence ratio) characterizes the ratio of equity capital to the total amount of capital (assets) of the organization. The ratio shows how independent the organization is from creditors.

Capitalization ratio

Capitalization rate(capitalization ratio) is an indicator that compares the size of long-term accounts payable with total sources of long-term financing, including, in addition to long-term accounts payable, the organization's own capital. The capitalization ratio allows you to assess the adequacy of the organization's source of financing its activities in the form of equity capital.

Inventory coverage ratio

Inventory coverage ratio is an indicator of the financial stability of an organization, determining the extent to which the organization’s material reserves are covered by its own working capital.

Asset coverage ratio

Asset coverage ratio (asset coverage ratio) measures an organization's ability to pay off its debts with its existing assets. The ratio shows how much of the assets will be used to cover debts.

Investment coverage ratio

Investment coverage ratio is a financial ratio showing what part of the organization’s assets is financed from sustainable sources: equity and long-term liabilities.

Interest coverage ratio

Interest coverage ratio(interest coverage ratio, ICR) characterizes the organization’s ability to service its debt obligations. The metric compares earnings before interest and taxes (EBIT) over a specified period of time (usually one year) with interest paid on debt obligations over the same period.

To assess the financial stability of an organization, many ratios are used, reflecting different ratios of the organization's assets and liabilities. In addition, there are almost no uniform normative criteria for these coefficients. In this regard, some difficulties arise in the overall assessment of financial stability, since the values ​​of the coefficients depend on many factors: the industry of the organization, lending conditions, the existing structure of liabilities, turnover of current assets, the reputation of the organization, etc. Therefore, the acceptability of these coefficient values, assessment of their dynamics and directions of change can only be established for a specific organization, taking into account the conditions of its activity. Some comparisons between organizations of the same specialization are possible, but they are quite limited.

When conducting a coefficient analysis of financial stability, we can limit ourselves to the following indicators:

a) coefficient of financial independence (autonomy) - shows the share of own funds in the total amount of funding sources:

where SK is equity capital;

VB - balance sheet currency.

The higher the value of the coefficient, the more financially stable, stable and independent the organization is from external creditors.

The financial independence ratio is the most general indicator characterizing the financial stability of an organization. The optimal value of this coefficient is considered to be 50%. In this case, creditors feel quite calm, since all borrowed capital is covered by the organization’s property. An increase in the financial independence ratio indicates the strengthening of the organization’s financial stability.

b) financial stability coefficient - shows what part of the assets is financed from sustainable sources:

where DO - long-term liabilities.

Due to the urgency of fulfilling obligations, it is quite legitimate to add long-term borrowed funds to the organization’s own funds.

In addition to calculating the coefficients of financial stability and independence of the organization, they analyze the structure of its borrowed funds: a large share of long-term loans in it is a sign of the stable financial condition of the organization

c) financial leverage ratio (the ratio of borrowed and equity funds) - shows how much borrowed funds the organization raised per 1 ruble. own funds invested in assets:

where ZK - long-term and short-term liabilities.

The higher the value of the coefficient, the higher the risk of the organization associated with an increase in its dependence on external sources of financing, and the lower its borrowing potential, since a decrease in financial stability often makes it difficult to obtain new loans and borrowings.

The optimal value of this indicator, developed by foreign practice, is 0.5. It is believed that if the value of the coefficient exceeds 1.0, then the financial independence and stability of the analyzed organization reaches a critical point, however, everything depends on the nature of the activity and the specifics of the industry to which the organization belongs.

d) debt financing ratio - is the inverse of the capitalization ratio and shows the amount of equity capital per unit of borrowed sources:

e) coefficient of provision with own sources of financing (provision with own working capital) - shows what part of current assets is financed from own funds:

where SOS is own working capital;

VNA - non-current assets;

Both are current assets.

A coefficient value close to one indicates that the organization fully meets its need for current assets from its own funds and has absolute financial stability. The lower the value of the coefficient, the more unstable the financial condition of the organization. The organization reaches a critical financial condition when the ratio is 0.1.

f) the coefficient of financial independence in terms of the formation of reserves and costs (the provision of reserves from own sources) - shows what part of the reserves and costs is formed from own funds:

The growth of the indicator is a positive trend.

A coefficient value greater than or close to one indicates that only its own sources are used to acquire material and production resources and the organization has absolute or normal financial stability. The lower the value of the coefficient, the more unstable the financial condition of the organization, since there is a need to attract borrowed capital to form reserves due to a shortage of own funds. The lower the ratio, the higher the financial risk and dependence on creditors.

g) coefficient of maneuverability of equity capital - shows the share of mobile funds in equity:

The coefficient shows the degree of mobility (flexibility) of the use of own funds, that is, what part of the equity capital is not fixed in immobilized (non-current) assets and makes it possible to maneuver the organization’s funds.

A high value of the ratio and its steady growth positively characterize the financial condition of the organization, and also indicate that the organization’s management uses its own funds quite flexibly.

What is the optimal value of the indicator? 0.3, which will ensure sufficient balance liquidity. And the low value of this indicator indicates that a significant part of the organization’s own funds is aimed at financing non-current assets, whose liquidity is low. The closer the indicator value is to the optimal one, the more financial opportunities the organization has and the more mobile funds it has in its equity capital.

In general, the financial stability of an organization depends on the rapid growth of the amount of its own working capital compared to the growth of inventories and equity capital.

h) permanent asset index - shows the share of immobilized funds in own sources:

These ratios (except for the financial leverage ratio and the debt financing ratio, the permanent asset index) are directly dependent on changes in financial stability, i.e. the growth of each of them confirms the strengthening of financial stability. But simultaneous growth of all indicators is impossible, since some of them can only increase by reducing others. For example, the equity agility ratio and the permanent asset index add up to 1:

The growth of own working capital is, as a rule, the result of an increase in equity capital, and in some cases, a decrease in the value of non-current assets.

Calculation of financial stability indicators provides management with the information necessary to make a decision on the advisability of attracting additional borrowed funds only from the point of view of financial stability.

There are several important indicators of financial stability that are used in the analysis. In the article we will analyze how to calculate them, what initial data is needed, and also give an example of financial stability analysis.

Financial stability - what is it?

The financial stability of an enterprise is the core of its overall sustainability. It is characterized by an optimal structure of sources of financing assets and the effective use of these resources, enhancing the financial independence of the enterprise. Financial stability largely depends on the efficient production and sale of products (goods), expressed in stable profit. In essence, this is the stability of the financial position of the enterprise, ensured by a sufficient share of equity capital as part of the sources of financing.

How to analyze the financial stability of an enterprise and what data is needed for this? The choice of information sources and calculated indicators depends on the goals of the analysis.

Information sources

The most accessible source of information for analysis is the accounting (financial) statements of the enterprise, namely: the balance sheet and the income statement. However, in the realities of Russian business, this source of information may turn out to be insufficiently reliable (unreliable), as evidenced by, for example, numerous revocations of licenses from banks, including those that previously received an audit report on the reliability of their financial statements.

The practice of KSK groups shows that the most reliable and in-depth analysis is carried out on the basis of management accounting data, reflecting the real picture of the enterprise's activities. Thus, in order to make a decision on financing an enterprise (providing a loan), banks request and analyze management accounting data, not limiting themselves only to financial reporting data.

Analysis of financial statements

To get a general idea of ​​the financial stability of a company, it is enough to analyze the data from its financial statements. As practice shows, this is done in more than 90% of cases when analyzing the financial stability of potential counterparties.

For example, you decided to launch a new type of product and are looking for a packaging supplier for the next 5 years. An analysis of the financial stability of a potential partner will determine whether he will be able to fulfill his obligations, and whether he will become bankrupt in six months. Working with an unreliable supplier can result in disruption of deliveries, non-return of advances, and a decrease in the quality of packaging due to the supplier cutting costs. By analyzing the structure of assets and sources of their financing, as well as changes in indicators over time, it is possible to determine the strategy (model) of behavior (decisions) of the supplier’s management. For example, a sharp and significant increase in the value of non-current assets with a “mirror” increase in short-term loans indicates an incorrect choice by the enterprise of sources of financing the process of technical re-equipment. Given the payback period for such a project within 7 years, the company will not be able to fulfill its debt obligations in the next 12 months.

How to use management reporting data

Management accounting data, due to its inaccessibility to third parties, is used for internal purposes of the enterprise. The financial service of an enterprise, carrying out such an analysis systematically, can, if necessary, quickly make decisions on adjusting the actions of management or owners in order to prevent bankruptcy.

For example, analyzing management reporting data, the financial director discovered a decrease in sales over the past six months with a simultaneous increase in the growth rate of accounts receivable. An increase in receivables due to an increase in repayment periods and a decrease in sales rates in the absence of an adequate solution to the situation over the next year will lead to the impossibility of timely repayment of debt obligations and accounts payable.

A timely decision to strengthen collection measures for receivables and increase sales will minimize or completely eliminate the risk of enterprise insolvency (see more about effective management of receivables).

Absolute indicators of financial stability

Financial stability is determined based on the ratio of different types of funding sources and its compliance with the composition of assets. There are absolute and relative indicators of the financial stability of an enterprise. Absolute characterize the degree of security of assets with the sources of their formation and make it possible to determine the type of financial stability of the enterprise (absolute, normal, unstable financial condition, crisis financial condition).

The analysis is carried out by calculating the following indicators.

What should the coefficient values ​​tell you?

The situation when all three indicators are greater than zero reflects the absolute financial stability of the enterprise, i.e. all reserves are covered by our own working capital and no external borrowing is required. If the ratio of inventory coverage with own working capital is less than zero, and the other two are greater than zero, then in this case there is normal financial stability, in which the enterprise optimally uses its own and borrowed resources, and current assets exceed accounts payable.

If the first two indicators are less than zero, and the third is greater than zero, we can talk about the unstable financial condition of the enterprise, characterized by a violation of solvency. In this case, the enterprise is forced to look for additional sources of covering inventories and costs (external borrowing or accelerating the turnover of its own assets, for example, accounts receivable).

Negative values ​​of all indicators reflect the crisis financial condition of the enterprise, requiring urgent financial recovery.

Relative indicators

Relative indicators make it possible to determine the influence of various factors on changes in the financial condition of an enterprise and evaluate its dynamics.

We will analyze the financial stability of the enterprise based on a publicly available source of information. For example, let's take the following financial statements data (Table 1 and Table 2).

Table 1. Balance sheet (enlarged)

Table 2. Statement of financial results (enlarged)

Based on the financial statements data, the following indicators of the financial stability of the enterprise are calculated:

1. Autonomy coefficient(KA) shows how independent the enterprise is from creditors. It reflects the share of equity capital in all sources of financing. The higher the ratio, the more likely the company is to pay off its debts using its own funds. The generally accepted normal value: 0.5 or more (optimal 0.6-0.7).

Autonomy ratio = Equity / Assets

In our example, CA for the analyzed period decreases from 0.73 (12,500/17,200) in 2014. to 0.27 (12,500/46,220) in 2016, reflecting the enterprise’s increasing dependence on external creditors.

2. Long-term financial independence ratio(KDFN) shows what part of the total value of the enterprise’s assets is formed from the most reliable sources of financing, that is, does not depend on short-term borrowed funds.

Long-term financial independence ratio = (Equity + Long-term debt) / Assets

Essentially, this is a refined autonomy coefficient. If the company's liabilities include long-term obligations, it is advisable to use this coefficient instead of the autonomy coefficient. One of the recommended values ​​of this coefficient is 0.9, the critical value is 0.75. According to the conditions of our example, the CDFN for the analyzed period decreases from 0.73 (12,500/17,200) in 2014 to 0.57 (26,500/46,220) in 2016, which reflects the increase in the enterprise’s dependence on short-term borrowed funds.

3. Financial dependency ratio(KFZ) demonstrates the enterprise’s dependence on external sources of financing.

Financial dependence ratio = Liabilities / Assets

It also shows the ability of the enterprise, having liquidated its assets, to fully pay off its liabilities. A financial dependence ratio of no more than 0.6–0.7 is considered normal. The optimal coefficient is 0.5.

According to the conditions of our example, the KFZ for the analyzed period grows from 0.27 (4,700/17,200) in 2014. to 0.73 (33,720/46,220) in 2016, reflecting the enterprise’s increasing dependence on external creditors.

4. Provision ratio of own working capital(KOSOS) allows you to calculate the share of your own working capital in current assets.

Working capital ratio = (Equity - Non-current assets) / Current assets

KOSOS determines the degree to which the organization is provided with its own working capital necessary for its financial stability. Normal value: 0.1 or more.

In our example, COSOS for the analyzed period decreases from 0.66 (9,300/14,000) in 2014. to a negative value of -0.17 (-4,970/28,750) in 2016, which characterizes a sharp decrease in own working capital.

5. Capitalization rate(КК) – shows the ratio of borrowed and equity funds.

Capitalization ratio = Liabilities / Equity = (Long-term liabilities + Current liabilities) / Equity

The more the ratio exceeds 1, the greater the enterprise's dependence on borrowed funds.

In the example, QC for the analyzed period increased from 0.38 (4,700/12,500) in 2014. to 2.7 (33,720/12,500) in 2016, reflecting a sharp increase in the enterprise’s dependence on debt sources of financing.

6. Funding ratio(CF) shows what part of the activity is financed from own funds and what part is financed from borrowed funds.

Financing ratio = Equity / Debt capital

The lower this indicator, the more dependent the company is on borrowed capital. According to the conditions of our example, the CF for the analyzed period decreases from 4.81 (12,500/2,600) in 2014. to 0.41 (12,500/30,500) in 2016, which reflects the enterprise’s increasing dependence on borrowed sources.

7. Long-term leverage ratio(KDPZS) shows what part of the sources of formation of non-current assets at the reporting date is accounted for by equity capital, and what part is long-term borrowed funds.

Fundraising ratio = Long-term liabilities / (Long-term liabilities + Equity)

A high value of this indicator indicates a strong dependence on attracted capital and the need to pay significant amounts of money in the future in the form of interest for using loans.

In the example under consideration, the KDPZS for the analyzed period increased from zero (0/12,500) in 2014. to 0.53 (14,000/26,500) in 2016, which shows the technical re-equipment of the enterprise using borrowed funds.

8. Equity agility ratio(KMSK) - shows what part of the net working capital accounts for 1 rub. own funds.

Agility ratio = (Equity capital + Long-term borrowed liabilities - non-current assets) / equity capital

The agility coefficient characterizes what share of sources of own funds is in mobile form. The recommended value is 0.5 and higher.

According to the conditions of our example, KMSK for the analyzed period is at the same level of 0.7, which, given the overall result of the analysis, raises doubts and requires additional research (profit in 2015 and loss in 2016 should have changed the amount of equity capital).

Results of the analysis

Having calculated these indicators, we received a general idea of ​​the financial stability of the enterprise, which decreased significantly due to the company’s attraction of borrowed capital to finance the ongoing technical re-equipment. Comparing the calculated indicators with the data of the financial results report, it is clear that due to additional expenses during the period of technical re-equipment (primarily interest on borrowed loans), the company does not have reserves as of December 31, 2016 to increase its own sources of financing in the form of profit.

In this case, the author recommends conducting additional research into the possible improvement of the financial condition of the enterprise in the next year or two. For example, having studied the explanations to the balance sheet, you can see that the enterprise as of the reporting date has not yet fully put into operation the installed new equipment and has not increased the volume of production.

However, the commissioning of all new equipment in January 2017 will increase production by 4 times compared to the current output, which will affect a significant increase in sales profits. And by the end of 2017, it will not only allow us to pay off current obligations, but will also increase the share of our own sources in the purchase of raw materials for production.

So, financial stability analysis can be carried out both on the basis of accounting and management reporting, depending on the current availability of these sources. Having carried out a preliminary analysis based on the financial statements, we recommend that you adjust the results taking into account any other available information, for example, information disclosed in the notes to the annual financial statements or in the annual reports of joint-stock companies.

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru/

National Open Institute of Russia

Saint Petersburg

COURSE WORK

Discipline: Financial Statement Analysis

Analysis of the financial stability of the enterprise

Group student(s)

MU 001s/2chl

Katunina T.V.

Checked _____________________

Date of__________________________

Grade________________________

St. Petersburg, 2013

• INTRODUCTION
• CHAPTER 2. ANALYSIS AND ASSESSMENT OF FINANCIAL STATUS
• 2.1 Economic and organizational characteristics of the enterprise TKO LLC
• CONCLUSION
• BIBLIOGRAPHY

INTRODUCTION

The financial condition of an organization is an economic category that reflects the state of capital in the process of its circulation and the ability of a business entity to self-development at a fixed point in time.

The ability of an enterprise to make payments on time, finance its activities on an expanded basis, withstand unexpected shocks and maintain its solvency in adverse circumstances indicates its sound financial condition, and vice versa.

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

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

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

To achieve financial stability, a very specific amount of equity capital is required, an acceptable ratio of equity and debt capital, financial and non-financial assets. In this case, both the condition of the enterprise’s profitability and its financial stability are met. In turn, the structure of equity capital becomes favorable for economic growth, and own reserves in cash are sufficient to repay debts and obligations.

Analysis of the financial stability of any business entity is the most important characteristic of its activities and financial and economic well-being, characterizes the result of its current, investment and financial development, contains the necessary information for the investor, and also reflects the ability of the enterprise to meet its debts and obligations and establishes the size of sources for further development.

The subject of the study is the financial and economic activities of the enterprise.

The object of the study is Hotel Transport Company LLC, hereinafter referred to in the text of the diploma as TKO LLC.

The purpose of the work is to develop measures to increase the financial stability of the enterprise.

Job objectives:

1) consider the theoretical basis for increasing the financial stability of an enterprise

2) analyze the financial condition of TKO LLC

3) develop measures to increase the financial stability of TKO LLC

CHAPTER 1. THEORETICAL FOUNDATIONS OF THE FINANCIAL CONDITION OF THE ENTERPRISE

financial analysis sustainability

1.1 Subject, content and tasks of analyzing the financial condition of an enterprise

To survive in a market economy and prevent an enterprise from going bankrupt, you need to know well how to manage financial resources, what the capital structure should be in terms of composition and sources of education, what share should be taken by own funds and what by borrowed funds.

The financial condition of a company is the company's ability to finance its activities. Financial condition is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability. Bukhalkov M.I. Intra-company planning: Textbook. - M.: Infra-M, 2009. - P.136-137.

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

The financial condition of a company is determined by the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, this has a positive effect on the financial position of the company. And, conversely, as a result of underfulfillment of the plan for the production and sale of products (works, services), there is an increase in the cost of a unit of production, a decrease in revenue, the amount of profit and, as a consequence, a deterioration in the financial condition of the enterprise and its solvency.

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

Possession of information about the financial condition of a company is the right path to its development and prosperity. It is necessary to understand the meaning of such economic indicators as liquidity, solvency, financial stability, business activity, the effect of financial leverage and others, as well as know the methodology for their analysis.

The following objectives of studying the financial condition of the organization are determined:

Determining the financial position of the organization, searching for and eliminating deficiencies in the financial activities of the company, identifying reserves for improving the financial condition of the enterprise and its solvency, monitoring the values ​​of key financial indicators in order to ensure that the results comply with the strategic goals of the enterprise;

Identifying changes in financial condition compared to previous periods;

Identification of the main factors causing changes in financial condition;

Forecasting the main trends in the financial condition, justification of the financial strategy, justification of the business plan indicators.

The main goal of financial analysis is to obtain key informative indicators that give an objective picture of the organization’s financial position, profitability of products and capital.

During the analysis, the following are objectively assessed:

Solvency;

Liquidity;

Financial stability;

Business and investment activity;

Investment attractiveness;

The effectiveness of the organization.

In this case, the client may be interested not only in his current financial condition, but also in his immediate or distant prospects. Sometimes the manager himself wants to understand whether the policy he has chosen is correct.

In addition, the management of the organization, founders, owners and shareholders need complete and detailed information about the financial position of the organization, the profitability of its products and capital.

Work on analyzing the financial condition allows you to identify the strengths and weaknesses of the company, choose the right path to its best development and achieve significant income growth. As a result, the company will be able to understand the correctness of the chosen methods of maintaining financial policy and adjust them, if necessary. The source of the necessary information is financial (accounting) reporting.

Accounting data includes data from accounting and reporting, statistical accounting and reporting, operational accounting and reporting. Accounting information used in the process of financial analysis, depending on the subjects and purposes of the analysis, is divided into financial accounting and reporting data and management accounting data. Efimova O.V. The financial analysis. 4th ed., revised. And additional - M.: Publishing house "Accounting", 2008. - P.87-88.

Financial accounting data form the basis of information support for the financial analysis system. On the basis of this information, a general analysis of the financial condition is carried out and forecast estimates of the values ​​of the main indicators are developed.

The information that forms the basis of the financial accounting data block is represented by indicators of financial (accounting) statements reflecting the property status of the enterprise.

To analyze the financial condition of an organization, as a rule, data from the following forms of financial (accounting) statements are used:

Balance sheet (Form No. 1 according to OKUD);

Profit and loss statement (Form No. 2 according to OKUD);

Report on changes in capital (Form No. 3 according to OKUD);

Cash flow statement (Form No. 4 according to OKUD);

Appendix to the balance sheet (Form No. 5 according to OKUD).

The above forms were approved by Order of the Ministry of Finance of the Russian Federation dated July 22, 2003 No. 67n “On the forms of financial statements of organizations.”

To assess current solvency, information from the balance sheet (with appendices) is used, as well as information from the cash flow statement.

A company's capital structure is characterized by information contained in the balance sheet and statement of changes in equity.

To assess business activity, data from both the balance sheet and the profit and loss report are used.

The analysis of profitability of activities is carried out on the basis of data from the balance sheet, profit and loss statement, and statement of changes in capital.

Regardless of what financial characteristics of the enterprise’s activities are supposed to be assessed, a necessary element of the information base is the information contained in the explanatory note to the financial (accounting) statements, the preparation of which is provided in accordance with PBU 4/99 “Accounting statements of an organization.”

Also an important element of financial (accounting) reporting is the auditor's report, designed to provide confirmation that the reporting information can be used to make financial decisions.

In the analysis of financial condition, operational accounting data can be used: operational information on the availability and flow of funds, the status of accounts receivable and other information.

The initial data for analyzing the financial condition can be obtained from external sources of information: general economic information, industry information, information about the stock market and real estate market, information about the capital market, information about the owners and managers of the analyzed company, information about counterparties, information about competitors, etc. .d.

1.2 Basic methods and techniques for analyzing the financial condition of an enterprise

When analyzing the financial condition of an enterprise, the following methods and techniques are used:

1. horizontal analysis - comparison of each reporting item with the previous period, identifying trends in changes in individual reporting items;

2. vertical analysis - determining the structure of the final financial indicators, i.e. reporting in the form of relative values;

3. comparative analysis - comparison of the enterprise’s indicators with the indicators of competitors, industry average data, and standards;

4. analysis of relative indicators (financial ratios) - this method involves determining the relationships between various indicators of financial statements, determining the relationship between them;

5. factor analysis - determining the influence of individual factors on changes in performance indicators.

Financial analysis makes it possible to assess the property status of an enterprise, the degree of business risk, capital adequacy, the need for additional sources, the ability to increase capital, the rationality of attracting borrowed funds, the validity of the policy for the distribution and use of profits, the appropriateness of choosing investments, etc.

An analysis of the financial condition of the enterprise is done on the basis of the balance sheet, profit and loss statement, cash flow statement, form No. 5, consolidated accounting records in registers and journals. The most important is the balance sheet, which represents the state of the company’s property and sources of financing recorded as of a certain date. The balance is unsuccessful because it is static.

The preparation of reporting forms according to international standards occurs subject to a number of requirements:

- requirement for the relevance of information (excessive information is not subject to reflection in the reporting, and data that is not reflected in the reporting, but significantly affects the state of the enterprise, is reflected in the explanatory note);

- feasibility requirement (information should be easily measured, recorded, that is, be available for collection without special costs);

- requirement of objectivity (information should be compiled based on the actual essence of the business transaction, and not from the subjective vision of the performer).

The following have access to reporting information:

1) shareholders, creditors, investors;

2) regulatory authorities;

3) enterprise employees, potential investors, trade union organizations, statistical authorities. All other users can obtain information from the reporting. Vasilyeva L.S. The financial analysis. - M.: Knorus, 2009. - P.102-104.

Briefly, financial analysis consists of the following steps:

1) Bringing the balance sheet to an analytical one;

2) Identification of sick spots in the enterprise’s activity, their description;

3) Assessment of property potential and sources of financing (vertical and horizontal analysis, analysis of qualitative changes);

4) Assessment of solvency and liquidity;

5) Analysis of financial stability;

6) Assessing the efficiency and intensity of capital use. All this is called express analysis.

The other part - a full comprehensive analysis consists of analyzing demand, profits, production volumes, etc. All software products provide express analysis results when entering basic documentation.

There are four main groups of entities interested in obtaining detailed information about the financial situation and its activities: entities providing short-term loans, entities providing long-term loans, shareholders and management of the company. Each group has its own point of view and pursues different interests from others when conducting financial analysis, which is due to different financial attitudes towards the analyzed enterprise. To understand the perspectives of each group and determine the direction of analysis that meets the interests of a particular group, let us consider in more detail the differences and the specifics of their approach.

If a liquidity analysis raises doubts about a company's ability to generate the necessary cash, the lender focuses on the firm's solvency. Solvency is the relative excess of the value of assets over the value of obligations (liabilities). If a company fails to fulfill its obligations (to repay debts), the question arises as to how high the degree of reliability of creditor protection guaranteed by the total value of assets is. The lender is exposed to some risk of losing all or part of its investment. Kovalev V.V. Financial analysis: methods and procedures. - M.: Finance and Statistics, 2009. - P.474.

When considering the financial condition of an enterprise, three possible problems can be identified:

1. Decreased financial independence or low financial stability.

In practice, low financial stability threatens problems in repaying obligations in the future, in other words, the company’s dependence on creditors and loss of independence. You will have to think about the company's growing dependence on creditors when the autonomy ratios (financial independence ratios) decrease.

2. Cash shortage. Low solvency.

In practice, this means that the company in the near future may not have enough or no longer have enough funds to pay its obligations on time, that is, “financial holes” have appeared. Low solvency is also evidenced by excessive debts to the budget, personnel, creditors, and the threatening growth of attracted loans that arise as a result of “plugging” these “financial holes.” For example, a decrease in liquidity ratios indicates possible problems with repaying obligations.

3. Insufficient satisfaction of the interests of the owner.

This problem is most often referred to as “low return on equity.” In practice, this means that the owner receives income that is inadequate for his investment.

CHAPTER 2. ANALYSIS AND ASSESSMENT OF FINANCIAL CONDITION

2.1 Economic and organizational characteristics of the enterprise TKO LLC

TKO LLC was registered by the Registration Chamber of St. Petersburg on October 10, 2001, which was recorded in the Unified City Register of Legal Entities and Individual Entrepreneurs under number 163208. The main state registration number (OGRN) is 1027802714290, the date of assignment of the OGRN is 08/22/2002 .

The company provides services for the transportation of wagons, repair of railway tracks and railway equipment, diesel locomotives, rail cranes, diesel engines, hydraulic transmissions, fuel equipment, track equipment, as well as loading and unloading operations, development of lashing and securing schemes for cargo, including oversized, lashing and securing cargo on railway rolling stock, sending cargo to the Customer in Russia, the CIS and Baltic countries.

The management of the current activities of TKO LLC is carried out by the Director of TKO LLC. The director has deputies who act within the limits of their powers, on the basis of the Regulations on the competence of deputy directors. An advisory body - a works council - can be created under the director.

The financial and economic department is a structural division of TKO LLC. The financial and economic department is headed by the head of the financial and economic department.

The main goal of the Company's activities is to make a profit.

The main activities of the Company are:

All types of transportation by any type of transport, including transportation of dangerous goods;

Loading and unloading services, including unloading and unloading of dangerous goods;

Acquisition and sale of movable property;

Production and sale of industrial and technical products and consumer goods;

Repair of railway equipment;

Manufacturing of removable load-handling devices;

Operation of cranes;

Transportation of passengers and cargo by road;

Railway track repair;

Foreign economic activity.

The Company is a commercial organization with general legal capacity and carries out any types of activities not prohibited by the federal laws of the Russian Federation, in accordance with the purpose of its activities.

2.2 Analysis of the financial stability of the enterprise

Analysis of financial stability allows us to establish how rationally the enterprise manages its own and borrowed funds during the period preceding this date. To conduct an objective and complete analysis of the financial stability of an enterprise, it is necessary to use a system of indicators that can be divided into absolute and relative (ratios).

Absolute indicators characterize the degree of provision of reserves with sources of their formation. Three indicators of the availability of sources for the formation of reserves and costs correspond to three indicators of the provision of reserves and costs with sources of their formation:

Surplus (+) or deficiency (-) of own working capital (FC), defined as the difference between the availability of own working capital and the amount of inventories and costs:

FS = SOS - Z

where Z is the sum of inventories and costs; SOS - own working capital, defined as the difference between equity capital and non-current assets.

Excess (+) or deficiency (-) of own and long-term borrowed sources of formation of reserves and costs (FD), defined as the difference between the availability of own and long-term borrowed sources and the amount of reserves:

FD = (SOS+DP) - Z

where DP are long-term liabilities.

Excess (+) or deficiency (-) of the total value of the main sources for the formation of reserves and costs (FO), defined as the difference between the total value of the main sources and the value of reserves:

FO = (SOS + DP + page 610 form No. 1) - Z

Using these indicators, you can determine a three-component indicator of the type of financial situation.

Table 2.1.

The value of the three main absolute indicators of financial stability allows its classification into 4 types (Table 2.2).

Table 2.2

Classification of types of financial stability

Absolute indicators of financial stability at TKO LLC are presented in Table 2.3.

Table 2.3

Absolute indicators of financial stability of TKO LLC, rub.

Index				Deviation
Enterprise's own funds (SS)
Non-current assets (NCAs)
Own working capital (SOS = SS - VOA)
Long-term liabilities (LO)
Own and long-term borrowed sources (SZI and DZI = SS + DO - SAI)
Short-term loans and borrowings (CC and Z)
The total amount of sources of formation of reserves and costs (IFZ = SZI and DZI + KK and Z)
Total inventory and costs (including VAT)
Surplus (+), deficiency (-) of own working capital
Excess (+), deficiency (-) of own and long-term borrowed funds
Excess (+), deficiency (-) of the total amount of sources
Three-component indicator of financial stability

An analysis of table 2.3 showed that the financial stability of TKO LLC in 2012 decreased sharply. The company did not have enough to cover its reserves from all three sources of inventory formation and costs. The reason for the lack of sources for the formation of reserves and costs is the lack of the enterprise's own working capital. According to the type of financial stability, the enterprise in 2012 is in a financial crisis.

Along with absolute indicators, the financial stability of an organization is also characterized by relative indicators, that is, financial ratios.

An analysis of the financial stability coefficients of TKO LLC can be carried out based on the data in Table 2.4.

Table 2.4

Financial stability ratios of TKO LLC

Index						Deviation
Autonomy coefficient	KA = Own funds / Total sources of funds
Debt to equity ratio	KZSS = (Long-term liabilities + Short-term liabilities - Reserves for future expenses - Deferred income) / (Capital and reserves + Deferred income + Reserves for future expenses)
Industrial property ratio	KIP = (Fixed assets + Inventory + Work in progress) / Balance sheet total
Own funds maneuverability coefficient	KMSS = Own working capital / Own funds
Coverage ratio of inventories and costs with own working capital	KOSS = Own working capital / Inventories
The ratio of provision of all working capital with own funds	KOOS = Own working capital / Current assets
Permanent asset index ratio	KIPA = Non-current assets / Own funds

Table 2.4 shows that at TKO LLC in 2012 there was a tendency towards a decrease in the autonomy coefficient, provided that it has become a normative value. The increase in the enterprise's dependence on external creditors and investors is confirmed by the increase in the value of the debt-to-equity ratio, which, while the standard is less than 1, at the end of 2012 amounted to 3.15. The decrease in the equity capital maneuverability ratio at the end of 2012 shows that the financial condition of TKO LLC during the reporting year deteriorated significantly. The same is shown by the value of the coefficient of provision of all working capital with own funds.

We will assess the current production activities of TKO LLC using turnover indicators and determine the level of efficiency in the use of the company's own and borrowed funds.

In Table 2.5 we will calculate the total capital turnover ratios, which give a general idea of ​​the economic activity of the enterprise.

Table 2.5

Capital turnover ratios

Having analyzed the table data in Table 2.5, one could conclude that in 2012 there was an increase in the production and technical potential of the enterprise, but this conclusion is very biased, because This calculation did not take into account the significant factor of revaluation of fixed assets, which is directly related to inflation processes, which in turn affects the volume of equity capital and thus imposes large distortions on turnover calculations.

Having examined the general turnover indicators, it must be said that these results (although they have significant errors due to the distorting effect of various factors: inflation, revaluation, etc.) can be the basis for making management decisions.

To clarify conclusions about the turnover of funds and the financial condition as a whole of this subject under study, we will consider a number of particular indicators of the turnover of current assets and current liabilities.

Table 2.6

Turnover indicators of current assets and liabilities

Indicators				Deviations
1. Turnover of current assets
1.1. in days
2. Accounts receivable turnover
2.1. in days
3. Inventory turnover
4. Accounts payable turnover

Having examined the data in Table 2.6, it should be noted that the turnover of current assets for the year increased to 4.08. In general, this trend is positive. The overall turnover of current assets was affected by the influence of multidirectional factors, such as accounts receivable turnover, which decreased by 2.61%, and inventory turnover.

An assessment of the financial condition of an enterprise and the effectiveness of its activities will not be complete without an analysis of profitability indicators, which measure the profitability of the enterprise from various positions and are grouped in accordance with the interests of participants in the economic process into two groups: indicators of return on capital and indicators of profitability of products.

The return on total capital of all assets shows how much net profit, excluding the cost of borrowed capital, is per ruble of capital invested in the enterprise.

RK = Net profit / Capital * 100%

Return on equity is the ratio of net profit to the amount of equity capital.

RSC = Net profit / Equity *100%

Return on fixed assets is the ratio of (net) profit to the value of fixed assets.

ROS = Net profit / Fixed assets * 100%

The return on working capital indicator allows us to give a comprehensive assessment of the efficiency of using working capital.

ROBS = Profit DN / Amount of working capital * 100%

Product profitability is the ratio of (net) profit to total cost.

RPROD = Net profit / Cost * 100%

Return on sales - profit from sales to revenue.

RP = Profit DN / Revenue *100%

An analysis of the considered profitability indicators calculated for TKO LLC can be carried out based on the data in Table 2.7.

Table 2.7

Profitability indicators of TKO LLC

Index				Deviation
Revenue, rub.
Cost, rub.
Profit before tax, rub.
Net profit rub.
Fixed assets, rub.
Capital, rub.
Own capital, rub.
Working capital, rub.
Return on total capital, %
Return on equity, %
Return on fixed assets, %
Return on working capital, %
Product profitability, %
Return on sales, %

An analysis of Table 2.7 showed that during the analyzed period, profitability indicators increased and took values ​​above the industry average, which indicates that in 2012 TKO LLC was a fairly profitable production facility.

Thus, we can draw a general conclusion that the financial condition of TKO LLC in 2012 deteriorated significantly; financial stability indicators show the crisis state of the enterprise. However, TKO LLC is solvent and liquid, it is a fairly profitable production.

2.3 Analysis of financial performance

The main goal of financial analysis is to obtain a small number of key (the most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, and in settlements with debtors and creditors. The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. The main factor ultimately is the volume and quality of the source information. It should be borne in mind that the periodic accounting or financial statements of an enterprise are “raw information” prepared during the implementation of accounting procedures at the enterprise.

Objectives of financial activity analysis:

- Evaluation of the results of the enterprise, the final financial results of its activities.

- Identification of internal reserves and determination of ways for their further use.

- Contribute to the acceleration of scientific and technological progress, the distribution of best practices.

The financial condition of an enterprise is a set of indicators that reflect its ability to repay its debt obligations. Financial activity covers the processes of formation, movement and ensuring the safety of the enterprise’s property, control over its use. The financial condition is the result of the interaction of all elements of the system of financial relations of the enterprise, and therefore is determined by a set of production and economic factors.

The main objectives of analyzing the financial condition of an enterprise are:

- assessment of the dynamics of the composition and structure of assets, their condition and movement;

- assessment of the dynamics of the composition and structure of sources of equity and borrowed capital, their condition and movement;

- analysis of absolute and relative indicators of the financial stability of the enterprise and assessment of changes in its level;

- analysis of the solvency of the enterprise and the liquidity of its balance sheet assets.

The main source of information support for analyzing the financial condition of an enterprise is the balance sheet: Form No. 1, Form No. 2, Form No. 4, Form No. 5.

The analysis of the financial situation begins with “reading” the balance sheet, i.e. comparison of individual indicators at the end of the year with the same data at the beginning of the year.

In the process of comparison, changes that have occurred in economic assets and their sources over the year (dynamics) are determined. When reading the balance sheet, they find out the nature of changes in its total, and individual sections, articles, and the degree of the current solvency of the enterprise. The change in the value of the balance sheet currency for the analyzed period of time is established.

The balance sheet result at the end of the year is compared with the beginning. Under normal production conditions, an increase in the balance sheet total is assessed positively, and a decrease is assessed negatively, because associated with a decline in production.

The financial position of the enterprise and its stability largely depend on the degree of optimality of the ratio of equity and borrowed capital. Own capital is the basis for the autonomy and independence of enterprises; its share in the total capital determines the degree of financial independence (autonomy) of the enterprise. In addition, the higher this share, the higher the buffer, which protects creditors from losses and the risk of loss of capital, because the enterprise's own funds will be used to pay creditors. The ratio of equity and borrowed capital, thus, in the most general terms characterizes the solvency of the enterprise. If equity capital covers borrowed capital, it means that the company is able to pay off all its obligations.

However, equity capital is limited in size. In addition, financing the activities of an enterprise only from its own funds is not always beneficial for it, especially in cases where production is seasonal. Then in certain periods large funds will accumulate in bank accounts, and in other periods there will be a shortage of them. It should also be borne in mind that if prices for financial resources are low, and the company can provide a higher level of return on invested capital, then by attracting borrowed funds, it can strengthen its market position and increase its return on equity.

The analysis of profit (loss) of the reporting year is carried out according to Form 2 “Profit and Loss Statement”, and data from analytical and synthetic accounting, as well as estimates for the areas of use of profit.

In the domestic practice of analyzing economic activity, priority in previous years was given to this particular position, and the most widespread opinion was that equity capital should at least cover external liabilities:

SK ZK,

that is, make up 50% (or more) of the total sources of funds. This is enshrined in generally accepted requirements for the level of many financial ratios

Assessment of property status

To analyze the financial condition of the balance sheet, an aggregated balance sheet is constructed.

The aggregated balance sheet of TKO LLC for 2010-2012 is presented in Table 2.8.

Table 2.8

Aggregated balance sheet of TKO LLC for 2010-2012

1. NON-CURRENT ASSETS
1.1 Fixed assets
2. CURRENT ASSETS
2.1 Reserves
2.5 Cash
EQUITY
Authorized capital
Reserve capital
Retained earnings (uncovered loss)
LONG TERM DUTIES
Deferred tax liabilities
SHORT-TERM LIABILITIES
Accounts payable

Analysis of the dynamics of the composition and structure of property

Analysis of the dynamics of the composition and structure of property makes it possible to determine the size of the absolute and relative increase or decrease in the entire property of the organization and its individual types. An increase in an asset indicates an expansion of the organization’s activities, and a decrease in an asset indicates its narrowing. The narrowing of economic activity may be due to a reduction in effective demand for the organization’s products, works and services, and limited access to markets for raw materials, materials, and semi-finished products.

We will analyze the condition of the property of TKO LLC.

Table 2.9

Analytical characteristics of the property condition of TKO LLC for 2010-2012 (rub.) (horizontal analysis)

Index				Deviations
				Absolute	Relative %
1. NON-CURRENT ASSETS
1.1 Fixed assets
1.2 Construction in progress
1.3 Deferred tax assets
2. CURRENT ASSETS
2.1 Reserves
2.2 Value added tax on purchased assets
2.3 Accounts receivable (payments for which are expected within 12 months after the reporting date)
2.4 Short-term financial investments
2.5 Cash

The sources of data for the analysis are the balance sheets of the analyzed enterprise.

An analysis of table 2.9 showed that in 2011 the total value of the property of TKO LLC increased by a record 40,992,064 rubles. or by 71.41%, and in 2012 it decreased by 20,436,495 rubles. or 20.77%. This drop occurred due to both a decrease in non-current and current assets. So, if at the end of 2011 non-current assets decreased by 1,485,593 rubles. or by 7.90%, then at the end of 2012 - by 2,074,253 rubles. or by 11.98%.

The decrease in non-current assets in 2011 was caused by a decrease in fixed assets by 1,498,008 rubles. or by 8%, and construction in progress by 2563 or 6.26%, however, there was an increase in deferred tax assets by 14,978 rubles. or 43.26%.

In 2012, the decrease in non-current assets was caused by a decrease in all items: fixed assets by 2,066,269 rubles. or by 12%, deferred tax assets by 7983 rubles. or 16.09%. Construction in progress decreased by only 1 rub.

The company's current assets in 2011 increased by 42,477,657 rubles. or 110.01% due to an increase in inventories by 9,604,275 rubles. or 169.28%, VAT - 944,589 rubles. or 491.54%, as well as cash for 29,309,864 rubles. or 393.05%. It is also worth noting the increase in short-term accounts receivable by RUB 8,618,929. or 64.86%, and a 50% reduction in short-term financial investments.

In 2012, current assets decreased by 18,362,243 rubles. or 22.64%. Their decrease was due to a sharp decrease in inventories by 9,073,769 rubles, VAT by 1,047,699 rubles. or 92.17%, and cash for 26,757,199 rubles. or 72.78%. However, there was a sharp increase in short-term accounts receivable - by 18,516,425 rubles. or 84.52%, and short-term financial investments also remained unchanged. All changes in 2012 were directly related to the global financial crisis

To assess the optimal structure of the assets of TKO LLC, let's consider the data in Table 2.10, in which the company's assets are grouped by the degree of their liquidity.

Table 2.10

Analytical characteristics of the property structure of TKO LLC for 2010-2012 (in%) (vertical analysis)

Index				Deviations
1. NON-CURRENT ASSETS
1.1 Fixed assets
1.2 Construction in progress
1.3 Deferred tax assets
2. CURRENT ASSETS
2.1 Reserves
2.2 Value added tax on purchased assets
2.3 Accounts receivable (payments for which are expected within 12 months after the reporting date)
2.4 Short-term financial investments
2.5 Cash

An analysis of the structure of the enterprise's assets showed that the main share of the enterprise's property falls on current assets (in 2010, 2011 and 2012). Thus, in 2011, the share of current assets increased by 15.15% from 67.26% to 82.41%, and in 2012 it decreased slightly by 1.95% - to 80.46% at the end of 2012.

There were significant changes in the composition of current assets during the period under study. Thus, if in 2010 the main share was occupied by short-term receivables and short-term financial investments (23.15% and 20.90%, respectively), then in 2011 the share of cash increased sharply - by 24.38% (from 12.99% up to 37.37%). The share of short-term financial investments also decreased sharply - by 14.81%. In 2012, the situation changed radically again. Cash decreased by 24.53%, and the largest share was occupied by short-term receivables - 51.85% (an increase of 29.59%).

In non-current assets, the main share falls on fixed assets, the share of which in 2011 decreased by 15.15% - from 32.74% to 17.59%. In 2012, there was a slight increase of 1.95%.

In conclusion of the property analysis, it should be noted that, due to the global financial crisis and internal problems of the enterprise, TKO LLC recorded a decrease in property in 2012, which is a negative trend.

Analysis of the composition and structure of sources of property formation

The reasons for the increase or decrease in the organization’s property can be established by studying changes in the composition of financial resources, i.e. sources of property formation. All sources of an organization can be divided into own and borrowed. The need for equity capital is due to the self-financing requirements of organizations. It is the basis of their autonomy and independence. However, financing the activities of organizations only from their own funds is not always beneficial for them, especially in cases where production is seasonal, as in the case of our analyzed enterprise. In addition, it must be borne in mind that if prices for financial resources are low, and the company can provide a higher level of return on invested capital than it pays for credit resources, then by attracting borrowed funds, it can increase the return on equity. At the same time, if the enterprise’s funds are created mainly through short-term liabilities, then its financial position will be unstable, since short-term capital requires constant operational work aimed at monitoring its timely return. Thus, the financial position of the enterprise, its financial stability and solvency depend on how optimal the ratio of equity and debt capital is.

To assess the optimal state of the sources of property formation for TKO LLC, consider the data in Table 2.11

Table 2.11

Analytical characteristics of the state of the sources of formation of property of TKO LLC for 2010-2012 (rub.)

Index				Deviations
				Absolute	Relative %
1. EQUITY
1.1 Authorized capital
1.2 Reserve capital
2. BORROWED FUNDS

An analysis of table 2.11 showed that in 2011 all sources of TKO LLC increased by 40,992,064 rubles. or by 71.41%. The growth in sources occurred due to the growth of equity capital (in particular, retained earnings by 4,367,386 rubles or 9.5%) and a sharp increase in borrowed funds (in particular, accounts payable by 36,827,976 rubles or 452.95%). However, it is worth noting that long-term liabilities decreased in 2011 by 203,298 rubles. or 6.32%.

In 2012, TKO LLC sharply reduced its own funds, the reason for which was a decrease in retained earnings by RUB 31,647,596. or 62.85%. However, borrowed capital increased by 23.37% (in particular short-term liabilities). So, if in 2012, long-term liabilities decreased by 687,027 rubles. or 22.79%, then short-term ones increased by 11,898,127 rubles. or 26.46%.

To assess the structure of sources of property formation for TKO LLC, let’s consider the data in Table 2.12.

Table 2.12

Analytical characteristics of the structure of sources of formation of property of TKO LLC for 2010-2012 (in%)

Index				Deviations
1. EQUITY
1.1 Authorized capital
1.2 Reserve capital
1.3 Retained earnings (uncovered loss)
2. BORROWED FUNDS
2.1 LONG-TERM LIABILITIES
2.1.1 Deferred tax liabilities
2.2 CURRENT LIABILITIES
2.2.1 Accounts payable

During the analyzed period, significant changes occurred in the structure of sources. So, if in 2010 equity capital had a share of 80.23%, then in 2011 it decreased by 28.99% (to 51.25%), and in 2012 it decreased by another 27.16% (to 24.09 %).

In equity capital, the main share for the entire period belonged to retained earnings (80.11% in 2010, 51.18% in 2011, and 24.00% in 2012). In borrowed capital, the largest share was occupied by accounts payable (14.16%, 45.69%, and 72.93%, respectively).

In conclusion, it should be noted that in 2012, the dynamics of the growth in the share of borrowed capital and the decrease in equity capital suggests that the enterprise is highly dependent on external sources of financing, which is a negative trend.

When analyzing the financial condition of an organization, it is important to assess its liquidity and solvency, which is carried out on the basis of studying the liquidity of the organization’s balance sheet and analyzing liquidity ratios.

Analysis of balance sheet liquidity consists of comparing assets, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liabilities, grouped by their maturity and arranged in ascending order of maturity.

All assets of the company, depending on the degree of liquidity, i.e. the rate of conversion into cash can be divided into several groups.

The most liquid assets (A1) are amounts for all items of cash that can be used to carry out current payments immediately. This group also includes short-term financial investments.

Quickly realizable assets (A2) - assets that require a certain time to convert into cash. This group can include accounts receivable (payments for which are expected within 12 months after the reporting date), and other current assets.

Slowly selling assets (A3) - the least liquid assets - are inventories, accounts receivable (payments for which are expected more than 12 months after the reporting date), value added tax on acquired assets, while the item “Deferred expenses” is not included in this group.

Hard-to-sell assets (A4) - assets that are intended to be used in business activities for a relatively long period of time. This group includes articles in Section I of the balance sheet asset “Non-current assets”.

The first three groups of assets during the current business period can constantly change and relate to the current assets of the enterprise, while current assets are more liquid than the rest of the enterprise's property.

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