Maintaining……………………………………………………………………………………..3

1.Theoretical foundations for analyzing the financial condition of an enterprise……4

1.1. The concept, meaning and tasks of financial analysis

state of the enterprise………………………………………………………..4

1.2. Basic approaches to analyzing the financial condition of an enterprise...8

1.3. System of indicators characterizing the financial condition of enterprises………………………………………………………..…………… 12

2. Assessment of financial condition

2.1.Analysis of the structure of property and sources of its formation………..18

2.2. Analysis of the financial stability of the enterprise………………………22

2.3. Analysis of financial stability ratios…………………...23

2.4. Analysis of liquidity and solvency of the enterprise ………….25

2.5.

Assessing the efficiency of economic activities………………..27

3. Proposals to improve the financial position of the enterprise……..30

Conclusion…………………………………………………………………………………31

References…………………………………………………………………………………33

Introduction

The course work presents an analysis of the financial condition and economic results of the enterprise’s economic activities.

The purpose of the course work is to acquire practical skills in identifying the economic problems of an enterprise based on a comprehensive system analysis of the main economic indicators.

The tasks that I set in this work coincide with the tasks of financial analysis:

identifying changes in the financial condition of the enterprise;

identification of facts affecting the financial condition of the enterprise;

assessment of quantitative and qualitative changes in the financial position of the enterprise;

assessment of the financial position of the enterprise as of a certain date;

determination of trends in changes in the financial condition of the enterprise. :

The following techniques and methods were used to carry out this analysis:

horizontal analysis vertical analysis,

analysis of coefficients (relative indicators),

The main sources of information for analyzing the financial condition of an enterprise are the reporting balance sheet (Form No. 1), profit and loss statement (Form No. 2), capital flow statement (Form No. 3) and other reporting forms, primary and analytical accounting data, which decipher and detail individual balance sheet items.

1. THEORETICAL FOUNDATIONS OF FINANCIAL ANALYSIS

1.1. The concept, meaning and tasks of financial analysis

stateenterprises

Enterprise finance is a system of monetary relations that develop in the process of formation, placement and use of financial resources. The financial condition of an enterprise is expressed in the formation, placement and use of financial resources: cash received for sold products (goods, works, services), bank loans and borrowings, temporarily raised funds, debts to suppliers and other creditors, temporarily available funds from special funds. With the transition of enterprises to market operating conditions, the question of the sustainability of its financial condition and finding ways to improve it became acute. The relevance of these issues is determined by the need to create normal working conditions for both individual enterprises and the industry as a whole.

The financial analysis methodology includes three interrelated blocks:

analysis of the financial results of the enterprise;

analysis of the financial condition of the enterprise;

analysis of the effectiveness of the financial and economic activities of the enterprise.

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.

Thus, financial analysis is a part of financial analysis. The financial condition of an enterprise is characterized by the availability of financial resources necessary for normal production, commercial and other activities of the enterprise, the feasibility and efficiency of their placement and use, financial relationships with other business entities, solvency and financial stability. A business's ability to make payments on time is an indication of its good financial health.

The main (and in some cases the only) source of information about the financial activities of an enterprise is the financial statements. The reporting of an enterprise in a market economy is based on a generalization of financial accounting data and is an information link connecting the enterprise with society and business partners - users of information about the activities of the enterprise. In certain cases, to achieve the goals of financial analysis, it is not enough to use only financial statements. Certain user groups, for example, management and auditors, have the opportunity to attract additional sources (production and financial accounting data). However, most often annual and quarterly reporting is the only source of analysis of the financial condition of the enterprise.

There are internal and external analysis of financial condition.

Internal analysis is carried out for the needs of enterprise management. Its results are also used for planning, monitoring and forecasting financial condition. External analysis is carried out by all subjects of analysis using published information. The content of this analysis is determined by the interests of the owners of financial resources and regulatory authorities.

The main objectives of both internal and external analysis are:

general assessment of the financial condition and factors of its change;

studying the correspondence between means and sources, the rationality of their placement and the effectiveness of use;

compliance with financial, settlement and credit discipline;

determination of liquidity and financial stability of the enterprise;

long-term and short-term forecasting of financial stability.

To solve these problems, we study:

Availability, composition and structure of enterprise funds; reasons and consequences of their changes;

Availability, composition and structure of the enterprise’s sources of funds, causes and consequences of their changes;

Condition, structure and changes in long-term assets;

Availability, structure of current assets in the sphere of production and circulation, reasons and consequences of their changes;

Liquidity and quality of accounts receivable;

Availability, composition and structure of sources of funds, reasons and consequences of their changes;

Solvency and financial flexibility;

Asset efficiency and return on investment.

Analysis of the financial condition of an enterprise is the prerogative of the highest level of management structures of the enterprise, which can influence the formation of financial resources and cash flows. The effectiveness or ineffectiveness of private management decisions related to determining the price of a product, the size of a lot of purchases of raw materials or deliveries of products, the replacement of equipment or technology and other decisions must be assessed from the point of view of the overall success of the company, the nature of its economic growth and the growth of overall financial performance.

Financial analysis as a method of understanding economic processes and phenomena occupies an important place in the enterprise management system.

The main functions of analyzing the level of financial condition are:

objective assessment of the financial condition of the object of analysis;

identification of factors and causes of the achieved state;

preparation and justification of management decisions in the field of finance;

identifying and mobilizing reserves for improving the financial condition and increasing the efficiency of all economic activities.

The results of the analysis contribute to the growth of information content of the enterprise administration and other users of economic information of the object of analysis about the state of the objects of interest.

Improving the financial condition of an enterprise depends on a favorable combination of many circumstances. There are exceptionally many such moments in the market environment. The performance of an enterprise depends on many external and internal factors.

In particular, external (independent of the activity of the enterprise) and internal (depending on the activity of the enterprise) forms of power have a special influence on the future outcome.

Among the external influences, one should note the impact of socio-economic factors of the overall development of the country (inflation growth, the instability of the tax system, the instability of regulatory law, a decrease in the level of real income of the population, rising unemployment), market factors (a decrease in the capacity of the domestic market, increased monopoly in the market, the instability of the foreign exchange market, increased supply of substitute goods).

The range of internal forms of influence on the future outcome of the enterprise is enormous. These include such factors as managerial (high level of trading risk, unsatisfactory ability to understand market conditions, ineffective financial management, shoddy management of production costs, lack of elasticity in management, unsatisfactorily sound accounting and reporting system), production (lack of solidarity of the enterprise as a property complex, outdated and worn-out fixed assets, low labor productivity, high energy costs, overload with public facilities) and market ones (low competitiveness of products, connection with a limited circle of contractors and clients).

The impact of all these factors reduces the likelihood of achieving the planned financial outcome to varying degrees. In any case, a situation arises in which the favorable financial position of the organization is in danger. In this case, financial stabilization is needed, which at the enterprise in the current situation is carried out stepwise in three stages, presented in Figure 9.

Elimination of insolvency can and should be carried out by measures that are not acceptable from the standpoint of ordinary management. Anti-crisis management allows for any losses (including future ones), at the cost of which it is possible to achieve an improvement in the solvency of the enterprise today. The onset of insolvency means that the expenditure of funds exceeds their receipt in the absence of cover reserves, that is, a “crisis hole” is formed.

At the moment, more often than not, “problems” with the company’s creditors begin. Lenders are trying to recover their funds by seizing property. All funds received into the company’s account are mechanically blocked and written off in favor of creditors, the company’s activities are frozen, and fines and penalties continue to accrue.

The essence of this stage of the stabilization program is to maneuver cash flows to fill the gap between their expenditure and receipt.

The maneuver is carried out both by funds already received and materialized in the assets of the enterprise, and by those that can be obtained if the enterprise experiences a collapse. Filling the “crisis hole” can be done by increasing the flow of funds (maximization) and reducing the current demand for working capital (saving).

The following measures can be noted as measures of the stabilization program that ensure the solution of this problem.

• 1. The increase in cash is based on the transfer of enterprise assets into cash. This requires decisive and often shocking steps for the ordinary head of the enterprise, because it is associated with significant losses. Methods for determining an acceptable level of losses (discount) are not considered in this work, however, we note that losses are inevitable.
• 2. Selling short-term financial investments is a particularly primitive and self-imposing step for mobilizing funds. As usual, at crisis enterprises it is already perfect. One more note. In conditions of actual stagnation of the stock market, it is fruitless to calculate the discount on the sale of expensive securities - they go at the price at which they are willing to purchase them.
• 3. The sale of receivables is also obvious and is currently being undertaken by many enterprises. The peculiarity of this measure within the boundaries of the stabilization program is that the discounts here can be much larger than it seems to the management of the crisis enterprise. In some cases, the estimated discount may be slightly less than 100%, which, as in the case of short-term financial investments, means a sale at whatever price is offered.
• 4. Low turnover of working capital of the enterprise. In this case, it is necessary to accelerate the turnover of the enterprise's working capital by rationing reserves.

The essence of improving the financial stability of an enterprise is mainly the most rapid and radical reduction in ineffective costs.

True, the insolvency of an enterprise can be eliminated within a short period through the sale of “obscene” assets; the reasons that generate insolvency may remain unshakable if the financial stability of the enterprise is not restored to a safe level. This will eliminate the threat of bankruptcy not only in a short, but also in a relatively longer period of time.

Improving the organization of work and optimizing the number of employed personnel at the enterprise can have an effective result. In the pre-crisis environment, most enterprises monitored the excess number of personnel, and during the period of collapse, staff reduction becomes an urgent need, and this is not an easy task.

If in the main production it is allowed to reduce workers in proportion to the volume of output, then the personnel of auxiliary departments and management areas are less graceful (for example, you need to protect the enterprise independently from the volume of output).

The reduction cannot take place all at once. Therefore, caution is necessary when dismissing staff, refusing to pay additional payments and allowances, or withdrawing public benefits (lunch, hospital, etc.). Overt actions in this area repeatedly lead to sad results: the remaining personnel are unable to cope with the sharply increased volume of work, and their commitment to performing their functions well decreases.

Expensive securities that do not belong to the organization, but are in its use or disposal in accordance with the terms of the agreement, are taken into account in the assessment provided for in the agreement.

The second stage is the revaluation of financial investments. The initial cost of financial investments at which they are accepted for accounting may change. For the purposes of further assessment of financial investments, they are divided into two groups:

• - investments for which the current market value can be determined (receipt of shares, etc.);
• - investments for which the market value is not determined (contributions to the authorized capital of other organizations, loans provided, assigned receivables, bonds, etc.).

Financial investments of the first group are reflected in the financial statements at the end of the reporting period at their current market value by adjusting their valuation as of the previous reporting date. Such adjustments may be made monthly or quarterly. The results of the adjustment are written off to the financial results of the trading organization as operating profits and expenses.

Financial investments of the 2nd group are reflected in accounting and reporting at their original cost. At the same time, for debt securities it is allowed to write off the difference between the original and nominal value evenly to the financial results of the trading organization and a decrease or increase in the costs of the non-profit organization.

In addition, for debt securities and granted loans, organizations can calculate their valuation at discounted value without making accounting entries.

The third stage is the assessment of financial investments upon their disposal (redemption, sale, gratuitous transfer, transfer as a contribution to the authorized capital of another organization, etc.). Financial assets for which a current market value is determined are valued at the time of disposal based on the most recent valuation.

Financial investments for which the current market value is not determined are valued at the time of disposal using one of the following methods:

• - at the initial cost of each accounting unit;
• - at the average initial cost;
• - at the original cost of the first financial investments received (FIFO method).

At the initial cost of the entire accounting unit, contributions to the authorized capitals of other organizations (except for shares of joint-stock companies), loans provided to other organizations, deposits in credit institutions, and receivables acquired on the basis of an assignment of the right of claim are written off.

Expensive securities upon their disposal can be valued at the average initial cost, which is determined for each type of expensive securities based on data on their value and number at the beginning of the month and securities received during the month.

The FIFO method (1st - for receipt, 1st - for sale) is a method in which the accounting value of expensive securities sold is determined taking into account their value in the sequence of receipt for balance, taking into account the cost of expensive securities at the beginning of the reporting period;

Control of financial investments is carried out in the accounts of subsection 1100 “Short-term financial investments” and 2000 “Long-term financial investments”.

These scores are energetic, challenging, basic. In the debit of these accounts, the balances of financial investments at the beginning and end of the month, operations to increase investments are recorded; for a loan - operations to reduce financial investments.

Analytical control of long-term and short-term financial investments is carried out by type of investment and the objects in which these investments were made (enterprises that sell expensive securities, enterprises that borrow, etc.). At the same time, the construction of analytical accounting should ensure the acquisition of data on financial investments in the country and abroad.

Short-term financial investments can be carried on the balance sheet either at fair value or at the lower of purchase price and fair value.

If short-term financial investments are accounted for at their objective value, then there is a need to periodically consider the metamorphoses of this value, monitoring, for example, the data on the quotation of existing investments on the stock exchange.

If investments are not a core activity, then the objective value is determined at the reporting date. If investment is a core activity, then the objective value is determined periodically. Metamorphosis of the value of short-term financial investments towards an increase is recognized as income, and towards a decrease - as an expense in the reporting period in which these metamorphoses appeared.

There is a decrease in staff motivation and an associated deterioration in the quality of work. It is no longer the interests of the company, but the search for another job that is at the forefront of employee behavior. Yes, besides, workers often primitively begin to steal from enterprises, thus compensating for the decrease in profits.

At the same time, saving wages when carried out skillfully can become an effective factor in anti-crisis management.

Many external managers are now taking advantage of the fact that at most enterprises there are wage arrears to employees and their payments do not occur regularly.

So, in the first month it is announced that every worker’s wages will be reduced, but with the condition of regular payment. This policy helps to avoid confrontation between the workforce and the new management.

Reducing the current financial need in practice is only possible through some form of debt restructuring, which depends on the good-natured freedom of the enterprise’s creditors. Debt restructuring itself is not a specific tool for crisis management, because it can be used even if the debtor enterprise is in relatively good condition. However, the crisis situation, on the one hand, somewhat facilitates the restructuring of debts, and on the other hand, justifies its forms, which in a typical state are unsatisfactory.

Thus, it should be noted that as the main directions for improving the financial position of an enterprise, a set of measures can be used to eliminate insolvency, improve financial stability and ensure financial balance in the long term.

Proposals to improve the financial condition of OJSC "Roshalskaya ELEC"

Diploma

Finance and credit relations

Theoretical foundations for analyzing the financial and economic activities of an enterprise. Main indicators of the financial and economic activities of the enterprise. Analysis of the financial condition of an enterprise using the example of OJSC Roshalskaya ELEC. Analysis of technical and economic indicators of the Enterprise for the period 2008-2011.

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Improving the financial condition of an enterprise must be carried out by implementing a set of measures aimed at increasing solvency, financial stability and corresponding plans and programs.

The selection of specific measures to improve the financial condition of an enterprise should be based on criterion assessments obtained as a result of an analysis of its financial condition and characterizing its quality.

The insolvency of an enterprise can be eliminated by implementing the following basic measures to improve the financial condition of the enterprise.

Selling short-term financial investments of an enterprise is the easiest way to solve this problem, however, calculating the discount when selling securities of an enterprise is very difficult, since they can only be sold at the price at which they are willing to buy them.

The sale of excess production reserves of raw materials to ensure production is carried out in the case when they can be sold quickly enough. At the same time, it is allowed to sell part of the raw material reserves even at a price lower than the purchase price.

The sale of finished goods inventories involves a sale at a loss, however, the losses may be offset by a portion of future cash received.

Selling accounts receivable is a widespread way to eliminate the insolvency of an enterprise. If the estimated discount is less than 100%, then the sale of the company's receivables is carried out at any estimated price.

The transfer of investments into cash is carried out by stopping investment projects ongoing by the enterprise, selling unfinished construction projects and uninstalled equipment, as well as liquidating participation in other enterprises (sale of shares). The transfer of investments into monetary form is carried out after analyzing the timing and volume of return on invested capital: if a specific investment project begins to produce returns outside the period of improvement in the financial condition of the enterprise, then its implementation may be terminated. The presence of strategic investors and promising technologies can contribute to the successful implementation of investment projects and the enterprise’s entry into a sustainable development path.

Sale of unprofitable production and non-production facilities. Many unprofitable production facilities are included in the main technological chain of the enterprise. Therefore, it is usually impossible to accurately determine which of them make sense to keep and which should be eliminated. To reduce the risk of solving this problem, it is necessary to rank production according to the degree of their influence on the technological cycle of the enterprise. Ranking can be done using the expert method, taking into account the following rules:

First of all, it is necessary to sell non-production facilities and auxiliary production facilities that use universal technological equipment, since their functions can be transferred to external contractors;

Secondly, the sale of auxiliary production facilities with unique equipment is carried out, since the services of these production facilities can be compensated by purchasing them on the market;

Thirdly, it is necessary to get rid of unprofitable main production facilities that are at the beginning of the technological cycle, since their functions can be transferred to external suppliers;

Lastly, unprofitable production facilities that are at the last stage of the technological cycle are abandoned. This measure is acceptable mainly for enterprises with several technological chains, as well as for enterprises whose semi-finished products have independent commercial value and are more profitable than final products. Liquidation of main production facilities is permissible only as a last resort.

The solution to the problem of restoring the financial stability of an enterprise is to reduce ineffective expenses as quickly as possible. The insolvency of an enterprise can be quickly eliminated by selling “unnecessary assets”.

The main measures to ensure the restoration of the financial stability of the enterprise are:

Removing costly objects from the enterprise reduces non-productive costs on objects that have not yet been sold. This problem can be solved by establishing subsidiaries. Further financing of facilities removed from the enterprise is excluded.

Improving labor organization and optimizing the number of employees at the enterprise. In an unfavorable period for an enterprise, staff reduction becomes an urgent need. In the main production, the company's employees can be reduced in proportion to the volume of products produced. The number of personnel in auxiliary departments of the enterprise and management area depends less on the volume of products produced. In addition, a reduction in the number of employees at an enterprise cannot occur simultaneously. Unreasonable actions often lead to undesirable results: the remaining personnel cannot cope with tasks, their motivation decreases, the quality of work deteriorates, etc.

Saving wages can be an effective measure to improve the financial condition of an enterprise. In most enterprises that are in an unstable financial situation, there are shares of wages and they are paid irregularly. To save the wage fund for everyone else, wages are reduced, but regular payment is ensured.

Reducing the current financial need is feasible only by restructuring the enterprise's debt obligations. The crisis situation somewhat facilitates debt restructuring and justifies forms of debt restructuring that the company does not normally use.

Repurchase of debt obligations at a discount. An unstable financial situation depreciates the company’s debts, so you can buy them back at a significant discount and on the following conditions:

Debts that directly determine the current financial needs of the enterprise are redeemed;

The price of debt redemption depends on the level of current economic need for working capital;

The acceptable price for repurchasing debts is determined by the enterprise’s own discount, i.e. debt redemption is an investment project.

The conversion of debts into authorized capital can be carried out by expanding the authorized capital (in the absence of formal restrictions) and by ceding to the owners of the enterprise part of their share (block of shares).

Forward contracts for the supply of products at a fixed price may be of interest to the creditor if he can be offered to offset the enterprise's debt to him as an advance for long-term supplies of these products. In this case, the contract price of the product must not be lower than its projected cost.

Ensuring financial balance and development of an enterprise in the long term is possible only with an increase in cash flow from its core activities. The main measures to ensure the solution of this problem are:

Increasing the competitive advantages of products;

Increasing the monetary component in settlements;

Increasing asset turnover;

Implementation of an effective investment policy.

When implementing these activities, it is necessary to conduct marketing research, that is, organize activities that ensure the transformation of customer needs into enterprise income. It is necessary to create a marketing service at the enterprise that would study demand, product channels, and also assess the capabilities of competitors. Such an analysis is the basis for the choice of assortment and commercial and trading policy of the enterprise.

As a result of marketing analysis, an enterprise may refuse a portfolio of orders that are not supported by effective demand. Only those orders for which payment is organized in cash should be left in production. This will significantly speed up the turnover of funds, and thereby improve the financial position of the enterprise.

In order to not only ensure financial balance, but also strengthen its position in the market, an enterprise needs to implement an effective investment policy. Therefore, measures to improve the financial condition of the enterprise should be linked to the task of increasing the efficiency of investment activities, which will be discussed below.

Measures to prevent the bankruptcy of an enterprise are related to the effective management of its finances and production, the correct definition of strategic goals and tactics and implementation.

The implementation of financial recovery measures is possible only with appropriate management of the enterprise. Enterprise management in a crisis is currently called “anti-crisis management” by many authors.

Anti-crisis management is an enterprise management system that is comprehensive and systemic in nature, which is aimed at preventing and eliminating phenomena unfavorable for the enterprise.

For the financial condition of the enterprise, measures can be taken to improve the financial condition and prevent the threat of bankruptcy:

1. Direct free funds to the financial activities of enterprises. The enterprise is not actually engaged in financial activities, which under certain circumstances (availability of qualified personnel, etc.) could generate additional revenue (profit).

2. In order to raise additional funds, develop and implement procedures for saving current costs.

3. The main part of the enterprise’s property is represented by non-current assets (they occupy 77% of the total value of the property). To solve the financial condition of the enterprise, we can recommend in the context of managing the main production assets:

Application of the accelerated depreciation method, which will bring the cost of the general fund in line with real market prices;

Write-off/sale of obsolete, worn-out, broken equipment;

Reducing the cost of maintaining premises, inventory and equipment;

The implementation of unused (outdated, worn out, etc.) equipment will provide additional income to the enterprise, in addition, a decrease in the share of fixed production assets compared to working capital will increase the value of liquidity ratios.

4. The initial cost of manufactured products and services is reduced. This requires the introduction of the latest resource-saving technologies, the introduction of the latest high-tech and more economical materials, and the revision of costing items to clarify costs.

Conclusion

Based on the results of the work I have done, the following conclusions can be drawn.

I have considered various points of view of domestic economists on the concept of insolvency (bankruptcy) of an enterprise. In modern Russian legislation, the concepts of “insolvency” and “bankruptcy” are equivalent. Meanwhile, there is an opinion that bankruptcy is an insolvency associated with the guilty behavior of the debtor, aimed at causing harm to creditors.

Thus, insolvency (bankruptcy) is the inability of the debtor, recognized by the arbitration court, to fully satisfy the requests of creditors for monetary obligations and (or) to make an obligation to pay mandatory payments [Article 1: 1].

In this course work, the individual warnings and procedures for carrying out bankruptcy procedures of an enterprise, its stage and the individual satisfaction of creditors' claims, a monitoring mechanism aimed at ensuring the safety of the property of the debtor's enterprise, methods of financial recovery, principles of external management, the arrangement of bankruptcy proceedings, establishing the order of distribution of bankruptcy masses due to the impossibility of satisfying all demands presented to the debtor, as well as the procedure for a settlement agreement.

The main purpose of the Insolvency (Bankruptcy) Law is to implement the balance of interests of creditors and debtor in the process of insolvency proceedings. Acquiring this goal is extremely difficult due to the nature of insolvency, when, on the one hand, the debtor has few funds to satisfy the demands of all creditors, which gives rise to a natural desire to divide the available funds as early as possible, and on the other hand, in some cases it is necessary to expand the functioning of the enterprise - the debtor, if this will help him get out of the crisis situation.

The system of protective financial mechanisms in case of danger of bankruptcy depends on the scale of the crisis situation. With a small financial decline, it is enough to restore the current financial situation, balance and synchronize revenue and cash expenditures. A deep financial crisis requires the perfect application of all internal and external financial stabilization devices. A complete financial catastrophe implies a search for effective forms of reorganization, all of which can lead to the liquidation of the enterprise.

To reduce the risk of bankruptcy of an enterprise, it is first of all necessary to reduce the amount of damage received as much as possible, ideally to achieve a “profit” result. Reduce the amount of accounts payable using the method of netting payments to the budget, because The VAT amount is quite important. In addition, attention should be paid to the formation of a larger amount of absolutely liquid assets (cash and short-term financial investments). The company does not conduct financial work, but the amounts of temporarily available funds (net working capital) are quite important and are not used in any way. We can recommend paying attention to additional financial investments to earn additional income.