Analysis and assessment of the financial condition of the enterprise. International student scientific newsletter

Meshkov S.A. 1, Meshkova G.V. 2

1 ORCID: 0000-0002-6218-3178, Doctor of Economic Sciences, Dean of the Faculty of Economics, Russian State Agrarian Correspondence University, 2 ORCID: 0000-0002-3795-0830, Candidate of Economic Sciences, Associate Professor of the Department of Accounting, Finance and audit, Federal State Budgetary Educational Institution of Higher Education "Russian State Agrarian Correspondence University"

ASSESSMENT AND DIAGNOSTICS OF THE FINANCIAL CONDITION OF THE ENTERPRISE

annotation

The article discusses the problem of underestimation by enterprises of the Russian Federation of the importance of planning financial results. As a result, enterprises fall into a financial hole, losing the ability to pay off their own obligations. That is the problem of bankruptcy. In addition, indicators characterizing the financial condition of an enterprise, their relevance and significance for analyzing the financial condition of an economic entity are considered, and also presented existing types financial condition of the organization and their characteristics are given.

Keywords: planning financial results; bankruptcy of business entities; analysis financial activities.

Meshkov S.A. 1, Meshkova G.V. 2

1 ORCID: 0000-0002-6218-3178, PhD in Economics, Dean of the Faculty of Economics, Russian State Agrarian Correspondence University, 2 ORCID: 0000-0002-3795-0830, PhD in Economics, Assistant Professor, “Accounting, finance and audit", Russian State Agrarian Correspondence University

ASSESSMENT AND DIAGNOSIS OF THE FINANCIAL CONDITION OF THE COMPANY

Abstract

The article considers the problem of underestimation of the enterprises of the Russian Federation the importance of financial planning results. In consequence, companies are in a financial “hole”, losing the ability to pay their own liabilities. That is, the problem of bankruptcy. Besides indicators the characterizing of the enterprise financial conditions, their relevance and the importance for the analysis of a financial condition of an economic entity are considered, and also the existing types of a financial condition of the organization are presented and their characteristics.

Keywords: financial planning results; the bankruptcy of economic entities; analysis of the financial activities.

In a market economy, the degree of competition is very high. For this reason, an enterprise is a conventional unit - the smallest link in the market. There are many hundreds of thousands of them and they all claim their “place in the sun.” Each individual enterprise has its own goals, objectives and results. It is the results of the enterprise’s activities that indicate what role it plays in a given market, what place it occupies.

In addition, in modern conditions, a large circle of people are interested in ensuring high and stable financial results, and, therefore, in an up-to-date assessment of the financial condition of the enterprise. Each of which pursues its own goals and each of which wants the constant development of the enterprise, and not its destruction.

Such persons first include the owners (shareholders) of the business entity. They are interested in the long-term development of the enterprise, so they invest large amounts of money in its activities and plan to continuously receive high dividends. Modern managers, also on the basis of a well-conducted financial analysis of the company, have every chance to make balanced and effective solutions, and, consequently, gain income in the form of large premiums and bonuses. In addition to such a favorable financial condition at the enterprise, it is also important for organizations in contact with it. So, for example, suppliers are interested in prompt payment for the components, semi-finished products and other resources they supply. Credit organizations, among other things, want to receive the borrowed funds provided to the organization on time plus interest for their use. In this regard, we can come to the conclusion that assessing the financial condition of an organization is an important and mandatory part of the enterprise’s work.

IN last years organizations have made significant progress in planning their own financial results, but the number of companies that have closed due to financial debts and declared bankrupt is at a high level.

There are a number of indicators that you need to rely on when planning your activities. Let's consider them using the diagram presented in Figure 1.

Figure 1. Indicators characterizing the financial condition of the enterprise

It should be noted, based on the number of indicators, that the financial condition of an enterprise is a complex and multifaceted economic category. We will determine what each of the indicators is, and identify its significance and relevance for analyzing the financial condition of any business entity.

So, the solvency of a company is its ability to pay off its obligations. An enterprise can be considered solvent even if it has sufficient Money to pay off debts to suppliers, government agencies, partners, as well as in their absence, if the organization has highly liquid assets, the sale of which is not difficult, that is, they can be sold quickly and profitably. These include securities on the stock exchange and bank deposits.

Let's move on to the definition of such a concept as “liquidity”. It was partially disclosed in the previous paragraph. Liquidity is the ability of assets to be converted into cash. There are several options for liquidity: the most liquid assets (cash, short-term securities), quickly marketable (accounts receivable, deposits), slowly marketable ( finished products, work in progress, raw materials and supplies), hard-to-sell (buildings, equipment, land) assets. The company needs to strive to ensure that at any time it has the opportunity to quickly and fully repay its own obligations to another market entity, be it a supplier, the state or a credit institution.

Profitability is also an important indicator of the financial condition of an enterprise. This relative indicator, with the help of which it is possible to compare the well-being of enterprises different types activities and sizes.

An integral part of the analysis is the study of the business activity of the enterprise. In financial terms, the business activity of an enterprise is the rate of turnover of its funds (assets, working capital, accounts receivable and payable, etc.). The higher the turnover rate, the more stable the financial condition of the enterprise.

Depending on the position of these factors and their values, the enterprise may develop a “picture” that describes one of four existing financial conditions of a business entity, which are presented in Figure 2.

Let us consider in more detail how each type of financial condition of an enterprise is characterized.

Absolute financial stability is the most favorable situation that can exist in an enterprise.

Figure 2. Types of financial condition of an enterprise

It is characterized by high solvency and independence of the enterprise from credit institutions. A very rare phenomenon that is very difficult to achieve. To achieve this result, continuous monitoring of the financial market is required in search of the most profitable types of investment. For example, in recent months the most profitable investment has been foreign currency, that is, the dollar and the euro. Having high cash capital, you can earn a decent amount, with which you will be able to pay off short-term obligations.

A normal financial condition indicates that the enterprise operates quite stably independently, and at the same time has a number of long-term loans, with the help of which it covers its financial obligations. Long-term loans are loans of 5 years or more, which are given to enterprises with a good reputation at a low interest rate, which is quite beneficial for business entities. Since these borrowed funds can be effectively invested with minimal risk.

An unstable financial situation can lead to the insolvency of the organization. It is necessary to attract borrowed cash flows. This situation is very precarious, so stabilization measures are urgently required.

And we move on to the worst situation an organization can find itself in – a financial crisis. In this situation, the company is unable to pay and is on the brink of bankruptcy. The enterprise is brought to such a situation by inexperienced managers and top managers who have not carefully studied the financial condition of the enterprise they manage and have not competently planned its future activities.

Thus, for a favorable existence and protection from possible bankruptcy, enterprises of the Russian Federation need to closely monitor their budget, rationally and thoughtfully take loans from credit institutions and, of course, competently and effectively approach planning their financial indicators, since it depends on these actions: “Whether the enterprise will prosper and develop, or whether it will become mired in debt and come to the abyss called bankruptcy.”

Summarizing all of the above, it can be noted that now the problem of the ruin of companies in Russia is quite acute and there should be no disdainful attitude towards the analysis of the financial condition of an economic entity. In the case of a detailed assessment of the previously cited indicators characterizing the financial condition of the company, the organization will flourish, grow and generate the highest income for all participants in the activity. Among other things, thanks to a deep and accurate analysis, it is possible to attract the attention of the right investors to implement a large-scale innovative project to increase the efficiency of the organization, and, therefore, to increase the financial well-being of the business entity. If these parameters are observed, the organization is not at risk of financial bankruptcy.

Literature

1. Baldin K.V. Bankruptcy of an enterprise: analysis, accounting and forecasting [Text]: textbook. allowance / K.V. Baldin, V.V. Belugina, S.N. Galditskaya [and others]. – M.: Dashkov i K, 2010. – 375 p.
2. Meshkova G.V. Accounting risks: essence, management problems and ways to reduce them / Information support for effective management of the activities of economic entities: materials of the VI Int. scientific - practical Conf. - Krasnodar: KubGAU, 2015.
3. Meshkova G.V. The emergence of tax optimization in Russia // International scientific research journal. Ekaterinburg. – 2016. – No. 2 (44) Part 1. – P. 31 -32.
4. Meshkova G.V. Organization of an internal control system when outsourcing accounting and tax accounting// International scientific research journal. Ekaterinburg. – 2016. – No. 2 (44) Part 1. – P. 32 -35.
5. Meshkova G.V. Tax calculations as an element of accounting policy for tax purposes // Modern Scientific research and innovation. 2016. No. 2 [Electronic resource]. URL: http://web.snauka.ru/issues/2016/02/63170.
6. Meshkov S.A. Contemporary issues economic security of the land market and ways to solve them // Current issues economic sciences. – 2014. – No. 37. – P. 152-155.
7. Meshkov S.A. Threats to economic security in the sphere of land relations // Bulletin of Tambov University. Series Humanities. -2014.-No. 2 (130). – pp. 63-69.

References

1. Baldin K.V. Bankrotstvo predpriyatiya: analiz, uchet i prognozirovanie: ucheb. posobie / K. V. Baldin, V. V. Belugina, S. N. Galdickaya. – M.: Dashkov i K, 2010. – 375 s.
2. Meshkova G.V. Buhgalterskie riski: sushchnost’, problemy upravleniya i puti ih sokrashcheniya / Informationacionnoe obespechenie ehffektivnogo upravleniya deyatel’nost’yu ehkonomicheskih sub”ektov: materialy VI Mezhd. nauch.- prakt. konf.- Krasnodar: KubGAU, 2015.
3. Meshkova G.V. Vozniknovenie nalogovoj optimizacii v Rossii // Mezhdunarodnyj nauchno-issledovatel’skij zhurnal. Ekaterinburg. – 2016. – No. 2 (44) CHast’ 1. – S. 31 -32.
4. Meshkova G.V. Organizaciya sistemy vnutrennego kontrolya pri autsorsinge buhgalterskogo i nalogovogo ucheta // Mezhdunarodnyj nauchno-issledovatel’skij zhurnal. Ekaterinburg. – 2016. – No. 2 (44) CHast’ 1. – S. 32 -35.
5. Meshkova G.V. Nalogovye raschety kak ehlement uchetnoj politiki v celyah nalogooblozheniya // Sovremennye nauchnye issledovaniya i innovacii. 2016. No. 2. URL: http://web.snauka.ru/issues/2016/02/63170.
6. Meshkov S.A. Sovremennye problemy ehkonomicheskoj bezopasnosti rynka zemli i puti ih resheniya // Aktual’nye voprosy ehkonomicheskih nauk. – 2014. – No. 37. – S. 152-155.
7. Meshkov S.A. Ugrozy ehkonomicheskoj bezopasnosti v sfere zemel’nyh otnoshenij // Vestnik Tambovskogo universiteta. Seriya Humanitarnye nauki. -2014.-No. 2 (130). – S. 63-69.

Finance, money circulation and credit

Bogdan A.S.

THEORETICAL ASPECTS OF FINANCIAL STATUS ANALYSIS

ENTERPRISES

Leading economists in the field economic analysis and financial management devote a large place in their research to the study of financial results economic activity enterprises, however, fit the definition economic content of this concept in various aspects and with varying degrees of detail.

The financial result completes the cycle of the enterprise’s activity associated with the production and sale of products (work performed, services provided) and at the same time acts as a necessary condition for the next round of its activity. High values financial results of the enterprise’s activities ensure the strengthening of the state budget through tax exemptions, contribute to the growth of the investment attractiveness of the enterprise, its business activity in the production and financial spheres.

For any enterprise, obtaining a financial result means recognition by society (the market) of the results of its activities or obtaining results from the sale of a product produced at the enterprise in the form of products, works or services.

At an enterprise, the final financial result from sales is the profit or loss received as a result of sales income, reduced by the amount of tax expenses and expenses for producing products (performing work, providing services).

Leading economists in the field of economic analysis and financial management approach the definition of the economic content of this concept in various aspects.

According to V.V. Kovalev, in the process of analyzing financial results, it is important to identify the factors that influenced the magnitude of the achieved financial results.

According to M.I. Bakanova and N.I. Martynchuk, in order to achieve the set goals in the process of analyzing financial results, tasks are solved, including the development of an information mechanism for analyzing financial results, which allows timely receipt of reliable and complete information for its implementation in various directions and compliance.

O.V. Efimova understands the financial result of an enterprise’s activity as profit, but at the same time notes that “the actual final result is the one that the owners have the right to dispose of.”

N.N. Seleznev and A.F. Ionova dwell on the impact of inflation on financial results, but do not consider the relationship between the concepts of “financial result” and “profit”, but immediately give a definition of profit: “Profit is the net income of an entrepreneur on invested capital, expressed in monetary form, characterizing his remuneration for risk of doing business.

Author of the textbook “Analysis of Financial and Economic Activity” S.M. Pyastolov believes that the main tasks of analyzing financial results are to assess the dynamics of profit and profitability indicators for the analyzed period, to study the sources and structure of the enterprise’s balance sheet profit and net profit spent on dividend payments, and to determine the potential for increasing various profitability indicators.

G.V. Savitskaya reflects the following main tasks of analyzing financial results in systematic monitoring of the implementation of product sales plans and profit generation.

HELL. Sheremet and R.S. Saifulin, revealing their proposed methodology for analyzing the financial results and profitability of an enterprise, note that the financial result of an enterprise is expressed in a change in the value of its equity capital of the reporting period.

The financial result of an organization’s activities characterizes the efficiency of management, and the final result of financial activities is balance sheet accounting profit, which is the main source of replenishment of the enterprise’s own funds. Profit as an indicator of the efficiency of economic activity has several functions: evaluative, distributive, and stimulating.

In modern market conditions, financial planning of activities is a very relevant topic. The purpose of financial planning is to provide financial resources production processes on an ongoing basis, taking into account planned targets and changes in market conditions.

Financial planning includes the following stages:

1. Formation of the system financial plans for different enterprise development scenarios

2. Determining the enterprise's needs for financial resources.

3. Identification of sources of financing.

4. Adjustment of plans.

Current planning is represented only by the formation of a plan for the receipt and expenditure of funds. Implementation of operational planning at an enterprise consists of developing a payment calendar, which is compiled for a month. A tax calendar and credit plan are also drawn up. This approach to financial planning is ineffective, since it does not provide a complete picture of the current financial situation at the enterprise.

There is an urgent need to organize an improved financial planning system, and therefore, the following financial planning system for this enterprise is proposed.

When implementing a new system, it is important to ensure the relationship between long-term and current planning. It is recommended that these plans be adjusted annually. Due to the fact that planning the costs of remuneration of personnel is an important component of the enterprise’s budget, it is proposed to develop and include a remuneration budget in the financial planning system. Further, the information of functional plans is summarized in the following financial budgets: income and expenses, cash flows, according to the balance sheet.

The proposed budgets will allow us to see potentially unfavorable situations already at the planning stage and take preventive measures in advance. It is also necessary to draw up a cash flow budget to reflect incoming and outgoing cash flows and determine the solvency of the enterprise. Next, you need to create a balance sheet budget.

Financial reporting is designed to provide a reliable and complete picture of changes in the financial position of the organization various groups its users, it is the information base for economic analysis of all activities of the organization.

In order to ensure the stable functioning of an enterprise in market economic conditions, its management personnel must first of all realistically assess the financial condition of not only their enterprise, but also existing and potential partners.

To do this, you need to master the methodology for assessing the financial condition of an enterprise, as well as have the appropriate information support.

The success of the analysis depends on various types supporting the activities of a specialist, economic, information, mathematical, technical. Information support is one of the key elements of this system.

The use of all indicators of interest generated from external and internal sources, as well as the introduction of modern automated information technologies allows you to create a targeted system at each enterprise information support financial management, focused both on the adoption of strategic financial decisions so on effective ongoing financial management.

Thus, to evaluate an enterprise, it is necessary to analyze its financial condition, which is expressed in the formation, distribution and use of financial resources.

Forecasting financial results is an important component of planning and control; it allows you to identify those areas of activity that you should pay attention to and maintain high level competitiveness, which is important in a modern market economy.

There are many various methods forecasting. In practice, it is possible to use the following groups of methods: traditional, marginal analysis methods, mathematical and statistical methods factor models, heuristic and others.

Traditional methods are currently not productive because they require too much information to build models.

The mathematical-statistical method (extrapolation and interpolation; mathematical analysis; mathematical statistics, analytical modeling) is a method of forecasting time series for the future; it involves extrapolation and interpolation into the future.

Regression methods for forecasting operating profit indicators are based on the premise that forecast variables, such as gross profit or sales profit, are considered as quantities dependent on other variables.

Marginal analysis methods are based on the ratio of the following economic indicators: “costs - volume of product sales - profit” and forecasting the critical value of each of these indicators at a given value of the others.

Factor model methods involve calculating forecast values ​​based on the impact of various factors on profit.

Heuristic methods are a system of principles and rules that set the most probabilistic strategies and tactics for the decision maker, stimulating his intuitive thinking in the decision process and generating new ideas.

One of the most promising approaches to forecasting financial results is simulation modeling.

A simulation model is understood as the calculation of forecast reporting forms that fully simulate the future activities of an enterprise.

For forecasting financial results, the most appropriate form of reporting is the income statement.

The forecasting methods described above are the basis of any financial forecasting models, but are rarely used in practice in pure form. However, it is most effective to use methods in combination, so that you can reduce some of the disadvantages of some methods and take advantage of the advantages of other methods.

MOLCHAN A.S., SEVASTYANOVA M.V. - 2014

ANALYSIS OF THE FINANCIAL STATUS OF THE ENTERPRISE BASED ON ACCOUNTING REPORTS

Borovkova Svetlana Igorevna
Russian Academy of National Economy and Public Administration under the President of the Russian Federation
Lipetsk branch, student of the Faculty of Economics

annotation
Financial analysis is important integral part financial analysis. This article examines the essence of financial analysis based on financial statements, and also identifies its main problems.

Scientific adviser:

Derbeneva Svetlana Ivanovna, Candidate of Economic Sciences, Associate Professor

Financial analysis, as part of economic analysis, is a system of specific knowledge related to the study financial situation enterprise and its financial results. By conducting a systematic analysis of the financial condition, it can be developed efficient system planning and forecasting, and also made a rating assessment of the investment attractiveness of the organization, which is especially important in modern economic conditions.

As a rule, the analysis of the financial condition of an enterprise is carried out on the basis of data from its financial statements, which are a set of relevant forms 1-4 (balance sheet, profit and loss statement, statement of changes in capital and cash flow statement). Accounting statements serve as the basis for conducting deep analysis financial condition. In addition, the financial statements of an enterprise are a tool that allows you to objectively assess the key indicators of the property and financial position and the financial results of the organization. This will ensure the attraction of new business partners, investors and potential lenders.

The ultimate goal of financial analysis is to determine how, when and where to apply and use available resources in order to maximize the efficiency of their use. To achieve this goal it is necessary to solve the following problems:

1) on the basis of studying the cause-and-effect relationship between various indicators of the production, commercial and financial activities of the enterprise, evaluate the implementation of the established plan for the receipt of financial resources and their use to improve the financial condition of the enterprise;

2) forecast the potential financial results and profitability that an enterprise can achieve based on actual operating conditions and the availability of resources;

3) develop financial condition models for various options resource use.

Financial analysis is characterized by a number of problems that require timely resolution. Taken together, they are determined by the different terminology of the analyzed indicators, the problem of identification, grouping of balance sheet items and other forms of accounting statements of the enterprise for the needs of their analysis, the imperfect regulatory environment and the shortcomings of the Russian accounting and reporting system, and the insufficient development of some aspects of financial analysis. It is common to limit cash flow analysis to monitoring the cash flow statement and calculating and estimating relevant ratios. However, public accounting data suggest the possibility of calculating such coefficients once a year, which neutralizes such an analysis, since it is impossible to build a dynamic picture of the results of such an analysis by month based on annual financial statements.

IN modern practice analysis of the financial condition of the enterprise is carried out by conducting ratio analysis. Such an analysis is characterized by the emergence of a significant number of inaccuracies during the assessment of financial condition. To increase its objectivity, financiers need to take more into account the technical and technological component when analyzing, analyze planned and actual implementation indicators production program, carry out an assessment of work in progress, carry out a more detailed analysis of costs, including in the context of individual structural divisions and types of products. In addition, during the assessment of the solvency of the enterprise, as well as its financial stability As the main directions of financial analysis, it is necessary to take into account the specifics of the enterprise’s activities.

Thus, analysis of the financial condition of an enterprise on the basis of financial statements allows timely identification and elimination of deficiencies in financial activities, helps to find reserves for improving the financial condition of the enterprise and minimizing financial risks.

1

1. Nizamutdinova L.Sh. Efficiency of financial planning and forecasting / L.Sh. Nizamutdinova, Z.T. Nasretdinova // International student scientific bulletin. – 2015. – No. 5–5. – pp. 709–709a. – URL: http: // elibrary.ru /author_items.asp (date accessed 02.02.16).

2. Putyatinskaya Yu.V. Diagnosis of the risk of bankruptcy of agricultural organizations [Electronic resource] / Yu.V. Putyatinskaya, I.I. Makulova // Economy and Society, 2014. – No. 4–3 (13). – pp. 1037–1041. – URL: http: // elibrary.ru /item.asp?id=23268536 (date accessed 01/02/16).

3. Putyatinskaya Yu.V. Investment attractiveness of agricultural enterprises and features of its assessment / Yu.V. Putyatinskaya, A.M. Karimova // Economy and Society.

4. Siraeva R.R. Financing of agricultural formations for the purpose of their innovative development / R.R. Siraeva // Scientific support of innovative development of the agro-industrial complex: materials of the All-Russian scientific and practical conference within the framework of the XX Anniversary specialized exhibition"AgroComplex-2010". – Ufa, 2010. – Part IV. – pp. 122–125.

5. Fazrakhmanov I.I. Innovative development of economic entities in the region /I.I. Fazrakhmanov // Province: economics, tourism, hospitality, ecology, architecture, culture – 2010. – pp. 104–107.-URL: http: // elibrary.ru /author_items.asp (access date 02/04/2016)

6. Fazrakhmanov I.I. Improving the mortgage lending system in conditions of economic uncertainty / Lukyanova M.T., Fazrakhmanov I.I. // Science of the young? innovative development of agro-industrial complex 2015. – pp. 107–112. – URL: http: // elibrary.ru /author_items.asp.

7. Yukhin G.P. Business planning in diploma projects in agricultural engineering: textbook. aid for students universities, educational for example 110300 “Agroengineering” / A.D. Ananyin, G.P. Yukhin, G.F. Unsewn. – M.: KolosS, 2007. – 183 p. – URL: http: // elibrary.ru /author_items.asp.

8. Yukhin G.P. Dairy farms – new life/ G.P. Yukhin [etc.] // Rural machine operator. – 2014. – No. 8. – P. 18–19. – URL: http: // elibrary.ru /author_items.asp (02/04/2016).

9. Yukhin G.P. Economic efficiency technologies for harvesting and preparing root crops for feeding / G.P. Yukhin // Mechanization and electrification Agriculture. – 2005. – No. 11. – pp. 9–11. – URL: http: // elibrary.ru /author_items.asp (date accessed 02/04/2016).

The financial condition of the organization is assessed by indicators characterizing the availability, placement and use of financial resources, reflecting the results economic activity enterprise, determining its competitiveness, business potential, and allowing to determine the degree of guarantees of the economic interests of the enterprise and its partners in financial relations. The table presents the main financial and economic indicators of NPP Motor OJSC for 2012-2014.

Main economic indicators of NPP Motor OJSC, thousand rubles.

Indicators				2014 to 2012
				+ /-, units
Revenues from sales
Cost of goods sold
Costs per 1 ruble of products sold
Profit from sales
Net profit
Cost of fixed assets
Capital productivity, rub. /rub.
Capital intensity, rub. /rub.
Capital-labor ratio, rub. /person
Cost of working capital
Working capital turnover ratio, in revolutions
Average number of employees, people.
Labor productivity, thousand rubles. /person
Payroll fund (annual)
Average monthly wage one employee, thousand rubles. / person

Based on the results of the work of NPP Motor OJSC during the period under study, negative dynamics of the main economic indicators of the enterprise’s activities are observed: the volume of products sold decreased by 38.48%; net profit decreased by 2 times, or by 17,194 thousand rubles, at the same time, due to lower costs, profit from sales increased slightly - by 17.29%, or by 8,069 thousand rubles. A decrease in capital productivity indicates a decrease in the efficiency of using fixed assets; a decrease in the turnover ratio of working capital also indicates the ineffective use of working capital. Due to the replenishment of fixed assets, the capital-labor ratio increased by 2 times; The average number of employees decreased by 196 people, and the average salary increased by 30.76%, or by 7.03 thousand rubles. In order to increase the efficiency of the company's activities, it is recommended to increase the following indicators: revenue, capital productivity, working capital turnover ratio, labor productivity.

Bibliographic link

Bilalova L.A., Nasretdinova Z.T. ANALYSIS OF THE FINANCIAL STATUS OF THE ENTERPRISE // International Student Scientific Bulletin. – 2016. – No. 4-5.;
URL: http://eduherald.ru/ru/article/view?id=16548 (access date: 04/06/2019). We bring to your attention magazines published by the publishing house "Academy of Natural Sciences" 1

Assessing the financial condition is a recognized tool for identifying an unfavorable situation in an enterprise. A reliable assessment of the current situation in the organization’s economy is carried out using financial analysis methods. It makes it possible not only to state the improvement or deterioration of the company’s situation, but also to measure the likelihood of its bankruptcy. Currently, the analysis of the debtor's financial condition is carried out in accordance with the Rules for the conduct of financial analysis by the arbitration manager. These rules define the principles and conditions for the arbitration manager to conduct financial analysis, as well as the composition of the information used by the arbitration manager when conducting it. When conducting an analysis, it is necessary to determine the financial condition of the debtor as of the date of the analysis, its financial, economic and investment activities, and its position in commodity and other markets.

Financial analysis is carried out in order to: prepare a proposal on the possibility (impossibility) of restoring the debtor’s solvency and justify the advisability of introducing the appropriate bankruptcy procedure in relation to the debtor; determining the possibility of covering legal costs from the debtor’s property; preparation of an external management plan; preparing a proposal to apply to the court to terminate the financial recovery procedure (external management) and move to bankruptcy proceedings; preparing a proposal to apply to the court to terminate bankruptcy proceedings and transfer to external management.

Financial analysis is carried out on the basis of: statistical, accounting and tax reporting, accounting and tax registers, as well as (if available) audit materials and appraisers’ reports; constituent documents, protocols general meetings participants of the organization, meetings of the board of directors, register of shareholders, contracts, plans, estimates, calculations; provisions on accounting policies, including accounting policies for tax purposes, working chart of accounts, document flow charts and organizational and production structures; reporting of branches, subsidiaries and dependent business entities, structural divisions; materials from tax audits and trials; regulatory legal acts regulating the activities of the debtor.

When assessing the financial condition of the debtor enterprise, special coefficients are used. There are three groups of coefficients: 1. coefficients characterizing the debtor’s solvency; 2. coefficients characterizing the financial stability of the debtor; 3. coefficients characterizing business activity debtor.

The coefficients characterizing the solvency of the debtor are: the absolute liquidity ratio, the current liquidity ratio, the indicator of the security of the debtor's obligations with its assets, the degree of solvency for current obligations. The absolute liquidity ratio shows what part of short-term liabilities can be repaid immediately, and is calculated as the ratio of the most liquid current assets to the debtor's current obligations. The current liquidity ratio characterizes the organization's provision with working capital for conducting business activities and timely repayment of obligations and is defined as the ratio of liquid assets to the current liabilities of the debtor. The indicator of the security of the debtor's obligations with its assets characterizes the amount of the debtor's assets per unit of debt and is defined as the ratio of the amount of liquid and adjusted non-current assets to the debtor's obligations.

The degree of solvency for current obligations determines the current solvency of the organization, the volume of its short-term borrowed funds and the period of possible repayment by the organization of current debts to creditors from proceeds. The degree of solvency is determined as the ratio of the debtor's current obligations to the average monthly revenue.

To determine the financial stability of the debtor, the following coefficients should be calculated: the coefficient of autonomy (financial independence) shows the share of the debtor’s assets that are provided by its own funds, and is defined as the ratio of its own funds to total assets; The coefficient of provision with own working capital determines the degree of provision of the organization with its own working capital, necessary for its financial stability, and is calculated as the ratio of the difference between own funds and adjusted non-current assets to the value of current assets.

Bibliographic link

Kirillov K.V. ASSESSMENT OF THE FINANCIAL CONDITION OF THE ENTERPRISE // Basic Research. – 2009. – No. 3. – P. 30-30;
URL: http://fundamental-research.ru/ru/article/view?id=1952 (access date: 04/06/2019). We bring to your attention magazines published by the publishing house "Academy of Natural Sciences"

Return