Liquidity and solvency of the enterprise and ways to improve them. Factor analysis of companies' current liquidity

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MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION

Federal state budget educational institution higher professional education

"Russian Economic University named after G. V. Plekhanov"

SARATOV SOCIO-ECONOMIC INSTITUTE (BRANCH)

Faculty by correspondence

Specialty 080100. 62 “Finance and Credit”

Graduate Department of Economics and Enterprise Management

Discipline “Analysis and diagnostics of financial economic activity enterprises"

COURSE WORK

On the topic: “Analysis of factors affecting the liquidity of an enterprise”

3rd year student

Part-time study

Muslimova G.M.

Saratov 2015

Introduction

1.4 Ways to increase liquidity and solvency

2.Analysis of liquidity and solvency of JSC Transmash

Conclusion

Bibliography

Applications

INTRODUCTION

In a market economy, the modern perception of the financial and economic activities of each enterprise puts liquidity first. This happens on the basis of some significant factors that predetermine liquidity as a weighty argument when conducting any activity at any enterprise. In my course work I will analyze the company Transmash OJSC. The activities of this organization are aimed mainly at the production of railway transport.

Any business needs profit. There are many various methods to improve management financial activities enterprises, as mentioned above, liquidity is considered the main one among many. In other words, making a profit in a short time. Since the markets are now highly competitive and the possibility of quick sales is decreasing, the topic of liquidity, profitability, and solvency is increasingly increasing. Its main practical significance and the need for regular optimization predetermined the choice of the topic of this course work.

The purpose of the course work is to analyze the liquidity of the enterprise's balance sheet.

Coursework objectives:

Consideration of the methodology for analyzing the liquidity of an organization;

Studying the definition of balance sheet liquidity;

Development of measures to increase the liquidity of the enterprise’s balance sheet.

Analysis of the liquidity of the balance sheet of the enterprise OJSC Transmash based on the studied methods;

1. The essence of liquidity and solvency analysis

1.1 Liquidity and solvency as characteristics financial condition economic entity

Financial condition is significant characteristic results entrepreneurial activity economic entity.

The main task of financial management, the result of which most often depends on understanding the essence of the main categories, is to ensure its sustainability.

With regard to the interpretation of the concept of the financial condition of an enterprise, many definitions have arisen. According to Kovalev V.V. ,financial condition is a set of indicators that reflect the ability of an organization to pay its debt obligations. Financial condition is the result of the interaction of all elements that constitute the system of financial relations of the enterprise.

A.F. Ionova, N.N. Seleznev define financial condition as a state during which resources are distributed and used to ensure the progressive development of the enterprise in order to grow profits and capital while maintaining solvency. The most accurate definition is considered to be the following: the financial condition of an organization is a complex concept that is characterized by a system of indicators reflecting the availability, placement and use of financial resources enterprises. In the presence of different interpretations financial condition, everyone agrees on one thing - that the characteristics of the financial condition are formed on the basis of the solvency and liquidity of the enterprise, the assessment of which is considered to be the content-structural elements of the financial condition analysis methodology commercial organization.

The solvency of an enterprise is the ability of an operating economic entity to deadlines the borrower repays his debt obligations in full to a specific organization.

The liquidity of an enterprise is the presence of a subject current assets in an amount theoretically sufficient to repay obligations to short-term creditors with possible violation terms of their payment, regulated by contracts.

The first term (solvency) is more specific and subject-oriented, while the second (liquidity) takes a more extensive form. Liquidity is divided into:

Liquidity of material goods is the quick and break-even ability of assets to turn into cash;

Liquidity of enterprises: represents the potential ability of a business entity to pay its obligations through various types current assets that are already on the balance sheet on the date of its preparation.

The considered concepts have a certain relationship, which forms the conceptual basis for solving one of the problems of analyzing the financial condition of an enterprise, shown in Figure 1.

Figure 1 - The relationship and essence of the concepts of liquidity and solvency

The assessment of solvency is carried out on the basis of the liquidity characteristics of current assets, in other words, the time required to convert them into cash, as the most liquid form. Solvency depends on the degree of balance sheet liquidity. Along with this, liquidity is bypassed current state calculations characterize the prospect, from here it follows that the liquidity of an enterprise is a more conventional concept, characterizing only the potential ability of an enterprise to pay off its debt obligations.

Consequently, the liquidity and solvency of an enterprise must be assessed as part of the tasks of its analysis, but at the same time the possibility of their analytical interpretation as independent units and objects of financial management remains.

1.2 Accounting financial statements as an information base for analysis

The main source of information is financial statements. Accounting statements are a unified system of data on the property and financial position of an organization and the results of its economic activities. This document includes a complete set of accounting reporting forms, as well as specialized forms established in accordance with regulations regulating accounting and reporting in Russian Federation.

The composition, requirements, content and other methodological basis of financial statements are regulated by the Regulations on accounting"Accounting statements of organizations", approved by order of the Ministry of Finance of the Russian Federation No. 43n dated July 6, 1999 (PBU 4?99).

In accordance with the Federal Law of the Russian Federation “On Accounting” dated November 21, 1996, No. 129-FZ, the financial statements include:

Balance sheet - form No. 1;

Profit and loss statement - form No. 2;

Appendixes to the balance sheet and profit and loss account:

Capital flow statement - annual form No. 3;

Cash flow statement - annual form No. 4;

Appendix to the balance sheet - annual form No. 5;

Explanatory note;

The final part of the audit report issued based on the results of an audit of financial statements, mandatory under the legislation of the Russian Federation.

Assets, liabilities, equity, income, expenses, profit and loss are the main elements of financial statements. The first three elements characterize the organization's funds and the sources of these funds as of a certain date; and the operations and events of economic life that influenced financial position organization during the reporting period and caused changes in the first three elements - reflect the remaining elements. All elements financial statements, among which in all countries, including Russia, the main ones are the balance sheet (form No. 1) and the profit and loss account (form No. 2).

The main place in the accounting reporting system is occupied by the balance sheet (form No. 1). It has undergone major changes that are associated with adaptation to the requirements of international accounting standards. Let us note that the changes taking place are both qualitative and quantitative.

Let us characterize the balance sheet in general view. The new form of balance sheet, approved by the Accounting Regulations "Accounting Reports of Organizations", approved by Order of the Ministry of Finance of the Russian Federation No. 43n dated 07/06/99 (PBU 4?99), has five sections, including two in its active part, and three - in passive.

The balance is built on the “net” principle, i.e. it does not contain regulatory articles: depreciation of fixed assets, intangible assets, low-value and wearable items, use of profits. In addition, in a more detailed perspective, the main form of financial statements shows the composition of intangible assets, fixed assets, long-term and short-term financial investments, and the structure of own and borrowed funds. It records the value of remaining property, materials, finances, formed capital, funds, loans, credits and other debts and obligations.

The balance sheet is the most informative basis for analyzing and assessing the financial condition of an organization. The balance sheet asset characterizes the property mass of the organization, i.e. composition and condition of material assets directly owned by the organization. Liability characterizes the composition and state of rights to these values that arise in the process of the organization’s economic activities among various participants in a commercial business—shareholders, investors, creditors, the state, etc.

Balance sheet assets include items that combine certain elements of the organization’s economic turnover according to a functional basis. The asset balance sheet includes two sections:

Non-current assets;

Current assets.

Thus, section 1 “Non-current assets” reflects intangible assets, fixed assets, construction in progress, profitable investments in tangible assets, and financial investments.

Section 2 of the balance sheet asset "Current assets" reflects the amount of material working capital: inventories, work in progress, finished products, etc., the organization’s availability of free cash, the amount of accounts receivable and other assets.

According to Order of the Ministry of Finance of the Russian Federation No. 43n dated 07/06/99. on the approval of the Accounting Regulations “Accounting Statements of Organizations” PBU 4?99, starting with the financial statements of 2000, the “Losses” section, previously present in the balance sheet asset, is excluded from the structure of the balance sheet.

The balance sheet liability begins with the “Capital and Reserves” section, which contains information about the authorized, additional, reserve capital, as well as retained earnings (uncovered loss).

A breakdown of the composition and movement of funds, the movement of the balance of retained earnings of previous years during the reporting year is given in Form No. 3 “Statement of Capital Flows”.

Next are the sections “Long-term liabilities” and “Short-term liabilities”, which show the outstanding amounts of borrowed funds, accounts payable, deferred income and reserves for future expenses and payments.

The content of the asset and liability items of the balance sheet makes it possible to use it as internal? senior management of the organization, general meeting participants, managers at appropriate levels?, as well as external users - the state, existing and potential creditors, suppliers and buyers, owners of the organization's funds, audit services, statistical bodies?.

Since 2000, a new PBU 4?99 has been introduced. In accordance with this provision, the group of items “Intangible assets” has been added to the balance sheet asset group with the positions “Rights to objects of intellectual?industrial?property” and “ Business reputation organizations." A group of articles "Income-generating investments in material assets" was also introduced, and in the group of articles "Receivables" the position "Debt of participants? founders? on deposits in authorized capital". IN new form There are no balance sheet items: “Accumulation funds”, “Funds social sphere", "Consumption funds". The balances of these funds will be listed in the line "Retained earnings".

Additionally, we note that the balance sheet does not contain the item “Targeted financing and revenues.” And, on the contrary, in the group of articles “Accounts payable” they highlight “Debt to participants for payment of income”.

The study of economic literature and business practices in organizations allows us to conclude that existing form The balance sheet has a number of limitations. Knowing the limitations is necessary to evaluate its actual analytical capabilities. Let's list some of them:

The balance sheet is constructed in such a way as to generally record the financial and economic condition of the organization for the reporting period. At the same time, such an aspect of the organization’s well-being as the division of property into own and borrowed property, specifically by type, automatically falls out of consideration.

It is not possible to link specific property with a specific source of financing if the balance sheet contains only a list of all movable and immovable property. Having first isolated the own and borrowed components from the balance sheet, only then can one judge the property as a whole. If an organization purchased a technological line or a car during the reporting period, it is necessary to know at what cost this happened.

One of the main goals of any commercial organization is to make a profit. However, this indicator is not fully reflected in the balance sheet. The value of retained earnings presented in the balance sheet, in isolation from costs and sales turnover, does not reflect why exactly this value has arisen.

In addition, there is no indicator of book profit in the balance sheet. The absence of this indicator reduces the information capacity contained in the balance sheet, thereby, in an analytical sense, the role of the profit and loss account is increased to an even greater extent.

Due to what facts and business transactions the currency change occurred in the balance sheet is not shown. To get an accurate answer you need Additional Information, since turnover is not shown in the balance sheet, but only through them are the balances at the end of the period determined. Thus, it is reflected in the accounts in the general ledger.

Form No. 1 of the Russian financial statements “Balance Sheet” is slightly different from the forms of balance sheets of countries that adhere to international standards.

In the Russian balance sheet, assets are arranged in order of increasing liquidity, in other words, in direct dependence on the rate at which these assets are converted into monetary form in the process of economic turnover. Thus, in section 1 of the balance sheet asset “Non-current assets” it is shown real estate, which retains its original shape. The mobility of this property in economic circulation, also known as liquidity, is the lowest.

Section 2 of the balance sheet assets shows such elements of the organization’s property that change their form many times during the reporting period. The mobility of these balance sheet asset elements, i.e. liquidity is higher than the elements of section 1. The liquidity of funds is equal to one, i.e. they have absolute liquidity.

Therefore, liabilities are located starting from own funds, which are embodied in non-current assets, followed by long-term liabilities and short-term liabilities.

The most liquid, current assets are in first place in the international standard balance sheet assets, and long-term assets are in second place.

In the liabilities side, the list of items begins with short-term bank loans, then equity capital and long-term liabilities are listed. This difference is considered insignificant since each international standard balance sheet item can be found similar in the Russian balance sheet according to Form No. 1. Or, on the contrary, all sections and items of the Russian balance sheet can be explained using the terms of international accounting standards.

2. The difference between the two balance sheets is as follows - the balance sheet of the international standard does not have the position “Unfinished construction”, because construction, in world practice, is usually carried out by specialized construction companies, producing their completed products and selling them as regular goods.

3. In the West, outstanding accounts receivable are dealt with more decisively: they are excluded from the enterprise’s property. At the same time, both assets and liabilities are freed from imaginary ownership. It is no coincidence that, in accordance with international accounting standards, extensive information about accounts receivable is disclosed in the annex to the financial statements: special conditions repayment, terms, specific risks associated with debt. For an external analyst using Russian reporting data, the main information characterizing the quality of receivables is information about overdue receivables.

Based on the above restrictions contained in the balance sheet of Russia (form No. 1), we can propose such ways as: improving the specified form of financial reporting for information capacity and increasing its analyticality:

It is advisable to divide the organization’s property in the balance sheet into its own and borrowed property specifically by type. Noting that the balance sheet contains vital information about the organization’s work for the reporting period, you need to enter the balance sheet profit indicator into the liability side of the balance sheet so that the analytical nature of this document improves and its information content does not decrease.

1.3 Basic methods of liquidity and solvency

liquidity solvency analysis financial

One of the most important indicators The effectiveness of an enterprise's activities is liquidity. The task of analyzing balance sheet liquidity arises in connection with the need to assess the creditworthiness of the organization, i.e. its ability to pay its obligations in a timely and complete manner. Liquidity is the firm's ability to quickly respond to unexpected financial difficulties and opportunities, to increase assets as sales increase and to repay short-term debts by routinely converting assets into cash.

Analysis of balance sheet liquidity consists of comparing assets, grouped by the degree of decreasing liquidity, with short-term liabilities, which are grouped by the degree of urgency of their repayment.

All assets of an enterprise, depending on the degree of liquidity, that is, the rate of conversion into cash, are conventionally divided into the following groups:

A1 the most liquid assets are the company's cash and short-term financial investments.

A2 quickly realizable assets are finished products, goods shipped, accounts receivable. The liquidity of this group of assets depends on the timely shipment of products.

A3 slow-moving assets are inventories and work in progress.

A4 hard-to-sell assets - fixed assets, intangible assets, long-term financial investments.

Accordingly, the enterprise’s obligations are divided into four groups according to the degree of urgency of their return.

P1 - the most urgent obligations - accounts payable

debt, dividend payments, bank loans, the repayment terms of which have already arrived.

P2 - medium-term liabilities - short-term bank loans.

LP - long-term bank loans.

P4 - equity.

To assess the real degree of liquidity of an enterprise, it is necessary to analyze the liquidity of the balance sheet, which is defined as the degree to which the obligations of the enterprise are covered by its assets, the period of conversion of which into money corresponds to the period of repayment of obligations.

The balance is considered absolutely liquid if the following conditions are met: A1 >= 1; A2 >= P2; A3

A necessary condition for absolute liquidity of the balance sheet is the fulfillment first three inequalities The fourth inequality is of a balancing nature; its fulfillment indicates that the enterprise has its own working capital.

The calculation of liquidity ratios is necessary for a qualitative assessment of the liquidity of an enterprise. The purpose of such a calculation is to assess the ratio of available assets intended both for direct sale and those involved in technological process, for the purpose of their subsequent implementation and reimbursement of invested funds and existing obligations that must be repaid by the enterprise in the coming period.

To assess liquidity, the following indicators are calculated:

Current ratio - calculated as the ratio of the total amount of current assets, including inventories and work in progress to the total amount of short-term liabilities. It shows the extent to which current assets cover current liabilities.

The critical liquidity ratio is determined by the ratio of liquid funds of groups A1 and A2 to the total amount of short-term debts of the enterprise. Normal value usually considered 0.7 - 1.0. A larger value of the coefficient is also allowed for large specific gravity accounts payable and also vice versa - its lower value with a high proportion of cash and short-term financial investments.

Absolute liquidity ratio. It is determined by the ratio of liquid funds of group A1 to current liabilities. The higher its value, the greater the guarantee of debt repayment, since for this group there is practically no danger of loss of value in the event of liquidation of the enterprise and they do not require any time to turn into means of payment. The value of this coefficient is considered sufficient if it is 0.2 - 0.25.

Liquidity ratios themselves are not yet criteria for the solvency of an enterprise, the assessment of which requires the calculation of a number of additional indicators.

To assess the solvency of enterprises and their economic insolvency in accordance with accepted methodological instructions to assess the financial condition and determine the criteria for insolvency of business entities, the following indicators are used:

Current ratio;

Own funds ratio;

The coefficient of restoration or loss of solvency.

The current liquidity ratio (K1) is calculated as the ratio of current assets to short-term liabilities.

The equity ratio (K2) is defined as the ratio of the difference between the volume of sources of equity and the cost of fixed assets and intangible assets to the value of the working capital available to the enterprise.

The coefficient of restoration or loss of solvency characterizes the presence or absence of the ability of an enterprise to restore its solvency within a certain period.

If the actual value of the current liquidity ratio (K1f) or the equity ratio (K2f) is less than the standard value, then the solvency recovery ratio for a period of 6 months (Kza) is calculated using the formula:

Kza = K1f + 6?T*(K1f - K1n) ? K1norm, where (1.2.1)

K1f - the actual value of the current liquidity ratio at the end of the reporting period;

K1n - the actual value of the current liquidity ratio at the beginning of the reporting period;

K1norm - standard value of the current liquidity ratio;

T - duration of the reporting period in months.

A solvency restoration coefficient value equal to or greater than 1 indicates that the enterprise has a real opportunity to restore its solvency within 6 months, while a value less than 1 means the absence of such an opportunity.

If the actual values of the current liquidity ratio and the equity ratio are equal to or exceed the standard ones, then the loss of solvency ratio for a period of 3 months (KZB) is calculated:

Kzb = K1f + 3?T*(K1f - K1n)?K1norm

The coefficient of loss of solvency, taking a value equal to or greater than 1, indicates that the enterprise has the ability to maintain solvency. Accordingly, a loss of solvency coefficient that has a value of less than 1 indicates that the enterprise is likely to lose solvency in the near future.

If the values of the current liquidity ratio and the equity ratio are below standard values, and the solvency recovery ratio is less, this indicates that the enterprise is insolvent.

Liquidity is not identical as an economic category. Balance sheet liquidity is the foundation of the solvency and liquidity of an enterprise. In other words, liquidity is a way to maintain solvency. But at the same time, if an enterprise has a high image and is constantly solvent, then it is easier for it to maintain its liquidity.

1.4 Ways to increase liquidity and solvency

Assessment Issues financial stability in the context of a sharply worsened non-payment crisis, they are taking one of the first places in the field of financial management Russian enterprises. However, traditional methods assessments often do not provide an accurate and adequate picture of the state of financial stability and solvency of the enterprise. One of the ways to solve this problem could be the use of a system of cash flow indicators, which Russian financial managers are increasingly resorting to.

In the decision-making process, enterprise management must remember the following:

* liquidity and solvency are the most important characteristics rhythm and sustainability of the current activities of the enterprise;

* any current operations immediately affect the level of solvency and liquidity;

* decisions made in accordance with the chosen policy for managing current assets and sources of their coverage directly affect solvency.

The policy for managing current assets of an enterprise should pursue the main goal of ensuring a balance:

* between the costs of maintaining current assets in the amount, composition and structure that guarantees against failures in the technological process;

* income from the uninterrupted operation of the enterprise;

* losses associated with the risk of loss of liquidity;

* income from the involvement of working capital in economic circulation.

At the same time, the solvency of the enterprise, as mentioned above, is determined by the structure and high-quality composition current assets, as well as the speed of their turnover and its correspondence to the speed of turnover of short-term liabilities.

Current activities can be financed by:

* increasing own working capital

* attracting long-term and short-term sources of financing.

If we assume that the current activities of the enterprise are financed mainly from sources of short-term financing, then the sources of income additional funds may be:

* loans and credits;

* accounts payable to suppliers;

* debt to staff.

Thus, if the company's turnover rate of current assets slows down, and management does not take measures to attract additional financing, it may become insolvent, even if its activities are profitable.

When deciding whether to attract additional financing, it is necessary to take into account that each source of funds has its own cost. Accounts payable is often viewed as a free source of financing, but this is not always true. Thus, suppliers of raw materials can provide various discounts depending on the terms of delivery. If such discounts are refused, accounts payable can become a rather expensive source of financing the enterprise’s activities.

If the enterprise has a tendency to increase the operating cycle, it is necessary to provide measures to stabilize the financial condition. At the same time, one should take into account the limited possibility of attracting separate sources of equity and borrowed capital, as well as the increasing costs of attracting additional sources of financing.

When determining the policy for managing the current assets of an enterprise, the manager must remember that the lack of control over the level of the current solvency of the enterprise can lead to financial difficulties, and in the future - persistent insolvency and, as a consequence, bankruptcy of the enterprise.

In conclusion, it should be noted once again that any decisions aimed at changing the structure or value of current assets directly affect the solvency of the enterprise, for example:

* the decision to purchase an additional batch of raw materials in addition to existing stocks in connection with the expected increase in prices will lead to an increase in the amount of money in inventories;

* the decision to increase sales volume will require attracting additional sources of financing. It should be borne in mind that the company has limited opportunities to increase production and sales volumes within the existing structure of current assets and sources of their financing;

* the decision to increase the deferred payment for delivered products will most likely extend the period of deadening of funds in accounts receivable, etc.

Thus, we can say that the solvency of an enterprise can also be strengthened in the following ways:

By increasing the quality of products,

By mobilizing sources that ease financial tensions, developing various shapes reorganization (sanitization) of the enterprise, etc.

2. Analysis of liquidity and solvency of JSC Transmash

2.1 Characteristics of the organizational and economic activities of Transmash OJSC

Company name: open joint-stock company "Transport Engineering", abbreviated name: OJSC "Transmash" is a legal entity operating on the basis of the charter Federal Law dated December 26, 1995 No. 208-FZ “On Joint Stock Companies” and the legislation of the Russian Federation.

Location of the company: 413117, Engels, st. 3avodskaya, 1.

The main goal of society is to make a profit. The company has civil rights and bears the responsibility that is necessary when carrying out any types of activities that are not prohibited by law. Certain types activities, the list of which is determined by law, the company can engage in on the basis of a license.

Open Joint-Stock Company Transmash owns separate property, which is reflected on the balance sheet, as well as property transferred to it by shareholders in favor of payment for shares. The Company has the right, on its own behalf, to receive and exercise property and personal non-property rights, bear responsibility, be a plaintiff and defendant in court hearings, open bank accounts, and carry out all types of foreign economic activity at the legislative level. Sales of goods, products, fulfillment various works and the provision of services charges a tariff at a price set by the company independently, except for cases provided for by law. The company has the right to participate in activities and create business partnerships, societies and production cooperatives with the rights legal entity, on a voluntary basis, unite into unions and associations in compliance with antimonopoly legislation. The company also has the right to independently determine the forms, systems, sizes and types of remuneration. Interference in the activities of society by public, state and other organizations is prohibited, with the exception of audits, inspections and control in accordance with the law.

A) industrial production personnel:

workers (1154) + employees (415) = 1569 people;

b) non-industrial group (canteen, first-aid post, greenhouse, library) - 31 people.

2.2 Analysis of balance sheet liquidity

One of the most important criteria assessing the financial condition of an organization is its solvency. In the theory and practice of analysis there are:

Long-term solvency - the ability of an organization to pay its obligations in the long term;

Current solvency (liquidity) is the ability of an organization to timely and fully meet its short-term obligations, using current assets.

The current solvency of the organization is directly influenced by the liquidity of assets, which is the time it takes for assets to be converted into cash.

Since current assets include heterogeneous objects, among which are not only easily sold, but also difficult to sell to repay external debt, the organization may have more or less liquidity. Liabilities can also include obligations of varying degrees of urgency. The methodology for assessing balance sheet liquidity is based on these conditions.

Balance sheet liquidity is the ratio of liabilities and assets, which ensures timely coverage of short-term liabilities with current assets.

The methodology for analyzing balance sheet liquidity involves dividing all assets of the organization, depending on the degree of liquidity, into four groups:

A1 - the most liquid assets - cash and short-term financial investments;

A2 - quickly realizable assets - short-term accounts receivable and other current assets;

A3 - slowly selling assets - inventories, value added tax on acquired assets and long-term receivables;

A4 - difficult to sell assets - non-current assets.

In turn, liabilities are grouped according to the degree of urgency of their payment:

P1 - the most urgent obligations - accounts payable, including debt to participants for income and other short-term liabilities;

P2 - short-term liabilities - short-term loans and borrowings;

PL - long-term liabilities - long-term liabilities;

P4 - permanent liabilities - this is the equity capital of the enterprise.

To determine the liquidity of the balance sheet, the results of the corresponding groups of assets and liabilities should be compared. The balance is considered absolutely liquid if the following conditions are simultaneously met: A1; A2P2; A3; A4.

At the same time, a comparison of the first two groups of assets and liabilities makes it possible to assess the current solvency. Comparison of the third group of assets and liabilities reflects long-term (prospective) solvency.

The fourth inequality not only has a “balancing” character, but also means compliance necessary condition financial stability - the presence of the organization's own working capital (WCC):

SOK = SK - VA, where

SK - equity capital;

VA - non-current assets

In the process of analyzing the liquidity of the Balance sheet for each group of assets and liabilities, a payment surplus (+) or deficiency (-) is identified - DPIi, according to the formula:

PIi = Ai - Pi,

where Аi is the quantity assets i groups

Pi - the amount of liabilities of group i

This calculation is carried out both at the beginning and at the end of the analyzed period, thus assessing the dynamics of the level of balance sheet liquidity. In the case where one or more inequalities are not met, the liquidity of the balance sheet differs to a greater or lesser extent from absolute

2.3 Assessment and analysis of the liquidity and solvency of the enterprise

To the beginning	Change at the beginning	Change on co

The analytical balance of liquidity of an enterprise should be in the following proportion:

A1>P1; A2>P2; A3>P3; A4<П4;

If these inequalities are met, the balance is considered absolutely liquid. At our enterprise, the first inequality is not met. This means that the Transmash enterprise cannot be called absolutely liquid - absolutely liquid assets are less than the most urgent liabilities:

A1<П1; А2>P2; A3>P3; A4<П4.

Calculation of current liquidity indicators

Indicators	Vertical analysis	Horizon. Analysis

Current assets
Short term obligations
Financial attachments
Short term accounts receivable debt
Cash facilities

Calculation of current ratios

Liquidity indicators were positive: current assets increased by 39,048 rubles, short-term liabilities - by 19,188, short-term receivables - by 28,563 and cash - by 659 rubles. The current and absolute liquidity ratios decreased and amounted to 2.74 and 0.13, and the quick liquidity ratio increased by 0.33 and became 1.51 at the end of the year.

2.4 Analysis of the influence of factors on liquidity and solvency

Improving the economic situation in the country, leading to intensive growth in freight and passenger transportation, are considered factors contributing to the further development of the organization. Increasing competition from Ukrainian car-building factories is the main factor that can limit the pace of development of the enterprise. The likelihood of unexpected occurrence of factors that can dramatically improve or worsen the Issuer’s performance is low, since it is possible to adhere to a certain development strategy aimed at achieving the relevant goals, which entails a stable development of the forecast regarding the duration of the specified factors and conditions of the enterprise. The company will take all necessary actions to effectively use these factors and conditions, for example - the organization is taking, and also plans to take, all necessary actions in the future in order to prevent the negative effect of factors and conditions affecting the activity, for example - improving quality as an integral system of activity of the enterprise and management business processes. Significant factors that may most negatively affect the issuer's ability to obtain in the future the same or better results compared to the results obtained for the last reporting period: The main factor that may most negatively affect the results of operations of Transmash OJSC “This is a decrease in the need of the main buyer of JSC Russian Railways for products produced by the companies of the group of this organization. The likelihood of such factors occurring: low.

Conclusion

In my course work, I found a solution to the tasks and achieved all the topics I set. Based on the results of the analysis of the liquidity of the enterprise using the example of OJSC Transmash, it is necessary to draw a number of conclusions.

In the first parts of the course work, it became clear that one of the important criteria for the financial condition of a company is the assessment of its liquidity, which is understood as the ability of the enterprise to pay off its long-term obligations. This means that an enterprise that has more assets than external liabilities is liquid.

Having calculated and analyzed the financial indicators of the Transmash enterprise, I made the following conclusions: because the profitability ratio decreased by 36.51%, and the return on sales ratio decreased by 10%, certain measures need to be taken to improve them. In almost all indicators, the turnaround time has decreased - this is a good result, work will be completed faster. The profit growth rate is 130.83%, so the last inequality in the golden rule is not met, and this indicates a decrease in the efficiency and intensity of capital use. Therefore, you should pay attention to increasing profits.

The current and absolute liquidity ratios decreased and amounted to 2.74 and 0.13, and the quick liquidity ratio increased by 0.33 and became 1.51 at the end of the year.

Thus, in terms of the degree of financial risk, the analyzed enterprise belongs to the second class, because the indicators are good, but still not high enough. At the beginning of the year, the overall score was 69.5 (this result is more like 3rd grade), because the coefficient of financial independence and the coefficient of provision of reserves with own capital are zero points, the remaining coefficients are normal. At the end of the year, the financial condition is improving, but the score class remains the same: the absolute liquidity ratio has decreased, which resulted in a decrease in the score for this criterion. But there is an increase in the coefficient of financial independence and a significant increase in the ratio of reserves to equity capital. This resulted in an increase in the overall score at the end of the year to 83. Therefore, measures should be taken to increase the absolute liquidity ratio and the financing ratio.

List of used literature

1. Litvinov N. What does the balance sheet tell about. Financial analysis of annual reports. Double entry. - 2014.

2. Sivkova, A.I. Workshop on the analysis of financial and economic activities for students of economics and trade and economic colleges and universities. Tests, tasks, business games, situations, A.I. Sivakova, E.K. Fradkina. - Rostov-on-D: Phoenix, 2014

3. Dikarkin, V.V. Analysis of the economic activity of an enterprise: textbook. V.V. Dikarkin, O.N. Volkova. - TK Welby, Prospect, 2013.

4. Gracheva, L.V. Analysis of financial statements: textbook. allowance; L.V. Gracheva, N.A. Nikiforova. - M.: Business and Service, 2012

5. Matantseva O.Yu., Matantseva I.V. Financial stability of the organization and assessment of its value. Audit statements. - 2004

6. Pyatov M.L. Analysis of the financial stability of the organization; BUKH.1S. - 2013.

7. Markaryan E.A., Gerasimenko G.P. Financial analysis - M.: "PRIOR", 2013.

8. Yusupov, A.N. Profit and profitability: a textbook for universities; edited by A.N. Yusupova. - M.: UNITY-DANA2014

9. Plaskova N., Toyker D. Accounting statements as an information base for financial analysis; Financial newspaper. Regional release.

10. Savitskaya, G.V. Analysis of the economic activities of the enterprise; G.N. Savitskaya. - 9th ed. - Minsk: New knowledge, 2014.

11. Veretennikov, S.A. Financial analysis of an enterprise: textbook. allowance; S.A. Veretennikov. - M.: Finance and Statistics. - 2013

12. Mukhamedyarova A. How to balance liquidity and profitability; Consultant. - 2012,

13. Economic analysis: situations, tests, examples, tasks, selection of optimal solutions, financial forecasting: textbook. allowance; edited by M.I. Bakanova, A.D. Sheremeta. - M.: Finance and Statistics, 2014.

14. Zaitsev, F.B. Enterprise economy; F.B. Zaitsev. - M.: P Parushina N.V. Analysis of own and attracted capital in financial statements; Accounting. - 2013

15. Ginzburg A.I. Applied economic analysis. - St. Petersburg: Peter, 2014.

Applications

Consolidated income statement for the year 2014

Index	During the reporting period	For the same period of the previous year
Name

Income and expenses for ordinary activities Proceeds from the sale of goods, products, works, services (less value added tax, excise taxes and similar mandatory payments)
Cost of goods sold, products, works, services
Gross profit
Business expenses
Administrative expenses
Profit (loss) from sales
Other income and expenses Interest receivable
Percentage to be paid
Income from participation in other organizations
Other income
other expenses
non-operating income
Non-operating expenses
Profit (loss) before tax
Deferred tax assets

Current income tax
Penalties, tax fines, UTII
Net profit of the reporting period
FOR REFERENCE Ongoing tax obligations
Basic earnings per share
Diluted earnings per share

Balance sheet

	Indicator code	At the beginning of the reporting year	At the end of the reporting year

1. Non-current assets Intangible assets
Fixed assets
Construction in progress
Profitable investments in material assets
Long-term financial investments
Deferred tax assets
Other noncurrent assets
Summary of Section I
II Current assets
including: raw materials, other similar valuables
animals for growing and fattening
work in progress costs
finished products and goods for resale
goods shipped
Future expenses
other inventories and costs
Value added tax on purchased assets
Accounts receivable

Accounts receivable
including buyers and customers
Short-term financial investments
Cash
Other current assets
Total for section 2.

	Indicator code	At the beginning of the reporting year	At the end of the reporting year

3. Capital and reserves Authorized capital
Own shares purchased from shareholders
Extra capital
Reserve capital
reserves formed in accordance with legislation
reserves formed in accordance with the constituent documents
Retained earnings or loss
Total for section 3.
4. Long-term liabilities Loans and credits
Deferred tax liabilities
Other long-term liabilities
Total for section 4.
5. Current liabilities Loans and credits
Accounts payable
Including suppliers and contractors
debt to the organization's personnel
debt to state extra-budgetary funds
debt on fees and taxes
other creditors
Debt to founders for payment of income
revenue of the future periods
Reserves for future expenses
Other current liabilities
Total for the fifth section

Posted on Allbest.ru

Liquidity and solvency of the enterprise

There are two types of enterprise solvency:

Current solvency;
Long-term solvency.

The solvency of an enterprise also reflects the structure of its capital by composition and sources of education. The ratio of borrowed and equity funds characterizes the financial position of the organization, and solvency shows the ability of the enterprise to fulfill its obligations using existing assets.

The assessment of solvency is made on the basis of an analysis of the liquidity of current assets, which is determined by the time required to convert them into cash. The less time needed, the higher the liquidity.

There are two types of liquidity:

Balance sheet liquidity
Liquidity of the enterprise

Balance sheet liquidity is the ability to convert assets into cash and fulfill the obligations of the enterprise. Thus, it is possible to assess the degree to which the enterprise’s liabilities are secured by its assets. It is necessary to determine the correspondence of existing assets to the amount of short-term liabilities.

The liquidity of an enterprise is interpreted more broadly, since an enterprise can attract borrowed funds to fulfill current obligations if it has a long-term reputation and investment attractiveness.

It is obvious that solvency and liquidity of an enterprise are close concepts. However, liquidity characterizes both the current state of the enterprise and its prospects. As a result, at a certain point in time, an enterprise may be considered solvent, but an assessment of liquidity will show a crisis state in the future. The opposite situation is also true.

The relationship between solvency and liquidity of an enterprise is reflected in a hierarchical diagram, illustrating that managing the liquidity of an enterprise is a way to maintain its solvency.

Liquidity and solvency of the enterprise

Solvency analysis is carried out by comparing the availability and receipt of funds with payments on obligations.

Current solvency is determined as of the balance sheet date; a positive conclusion is made if the company has no overdue debt on its obligations.

Long-term solvency is determined for a specific upcoming date, and the amounts of means of payment and obligations on this date are compared.

Methodology for analyzing the liquidity and solvency of an enterprise

Analysis of balance sheet liquidity is a comparison of funds on the balance sheet asset, grouped by the degree of liquidity, with liabilities on the balance sheet, grouped in order of urgency of their repayment. Balance sheet liquidity is the degree to which an organization’s liabilities are covered by its assets.

Grouping of assets and liabilities of an enterprise

Enterprise assets	Liabilities of the enterprise
A1. The most liquid assets - these include all items of the enterprise’s funds and short-term financial investments (securities). A1 = Cash + Short-term financial investments.	P1. The most urgent obligations include accounts payable. P1 = Accounts payable.
A2. Quickly realizable assets are accounts receivable, payments for which are expected within 12 months after the reporting date. A2 = Short-term accounts receivable.	P2. These are short-term liabilities, these are short-term borrowed funds, debts to participants for payment of income, and other short-term liabilities. P2 = Short-term borrowed funds + debt to participants for payment of income + other short-term liabilities.
A3. Slowly selling assets are items in Section II of the balance sheet asset, including inventories, VAT, accounts receivable (payments for which are expected more than 12 months after the reporting date) and other current assets. A3 = Inventories + Long-term accounts receivable + VAT + other current assets.	P3. Long-term liabilities are balance sheet items related to sections IV and V, that is, long-term loans and borrowings, as well as deferred income, reserves for future expenses and payments. P3 = Long-term liabilities + Deferred income + Reserves for future expenses and payments.
A4. Hard-to-sell assets - articles in section I of the balance sheet assets - non-current assets. A 4 = Non-current assets.	P4. Permanent liabilities or stable ones are items in Section III of the balance sheet “Capital and Reserves”. P4 = Capital and reserves (equity capital of the organization).

Enterprise assets

Liabilities of the enterprise

A1. The most liquid assets - these include all items of the enterprise’s funds and short-term financial investments (securities).

A1 = Cash + Short-term financial investments.

P1. The most urgent obligations include accounts payable.

P1 = Accounts payable.

A2. Quickly realizable assets are accounts receivable, payments for which are expected within 12 months after the reporting date.

A2 = Short-term accounts receivable.

P2. These are short-term liabilities, these are short-term borrowed funds, debts to participants for payment of income, and other short-term liabilities.

P2 = Short-term borrowed funds + debt to participants for payment of income + other short-term liabilities.

A3. Slowly selling assets are items in Section II of the balance sheet asset, including inventories, VAT, accounts receivable (payments for which are expected more than 12 months after the reporting date) and other current assets.

A3 = Inventories + Long-term accounts receivable + VAT + other current assets.

P3. Long-term liabilities are balance sheet items related to sections IV and V, that is, long-term loans and borrowings, as well as deferred income, reserves for future expenses and payments.

P3 = Long-term liabilities + Deferred income + Reserves for future expenses and payments.

A4. Hard-to-sell assets - articles in section I of the balance sheet assets - non-current assets.

A 4 = Non-current assets.

P4. Permanent liabilities or stable ones are items in Section III of the balance sheet “Capital and Reserves”.

P4 = Capital and reserves (equity capital of the organization).

The balance sheet is liquid if the following inequalities are met:

The analysis of the solvency of the enterprise is carried out according to 7 indicators:

1. General solvency indicator (L1)

L1 = (A1+0.5A2+0.3A3)/(P1+0.5P2+0.3P3)

2. Absolute liquidity ratio (L2)

3. Critical rating coefficient (L3)

L3 = (A1+A2)/(P1+P3)

4. Current ratio (L4)

L4 = (A1+A2)/(P1+P2)

5. Operating capital maneuverability coefficient (L5)

L5 = A3/(A1+A2+A3-P1-P2)

6. Share of working capital in assets (L6)

L6 = (A1+A2+A3)/(P1+P2+P3+P4)

7. Equity ratio (L7)

L7 = (P4-A4)/(A1+A2+A3)

Ways to increase the liquidity and solvency of an enterprise

The basic direction of improving the solvency of an enterprise is to increase the level of financial management. Key tools:

The use of these tools refers to elements of proactive management.

Otherwise, measures aimed at increasing the liquidity and solvency of an enterprise can be divided into reactive and strategic.

Measures to increase the liquidity and solvency of the enterprise

If an enterprise has entered a crisis phase, first of all, it is necessary to develop a stabilization program - a set of measures to restore the solvency of the enterprise in the short term. In the absence of reserve funds, this task becomes more difficult. The first stage will require maximizing or saving money.

Priority measures to increase solvency are carried out using harsh methods that are not acceptable from a management perspective in favorable conditions.

The main task of the second stage is to maneuver between the receipt of funds and their expenditure. The problem is solved by selling tangible assets, selling accounts receivable, financial investments, etc.

The next stage is reducing current financial needs. The main form is the restructuring of obligations, which is complicated by the interests of creditors. Another direction is to minimize operating costs. Taken together, all measures at this stage are aimed at reducing the flow of liabilities and cash deficits.

Basic procedures for restructuring obligations to increase the liquidity and solvency of the enterprise

In the long term, the enterprise should implement the following measures:

Improving profitability – increase profits and equity, implement cost control measures and improve business operations.
Raising borrowed funds on favorable terms, minimizing borrowed funds.
Increasing own working capital through equity capital, retained earnings and reserves.
Restructure liabilities in favor of long-term borrowings.
Implement measures to increase sales volumes and profits.

Long-term measures to increase the liquidity and solvency of the enterprise by increasing cash flow

	Increased cash flow	Reducing cash outflow
Short term measures	Assortment optimization Debt restructuring Increase in sales volumes Improving customer service	Cost reduction Using well-established supply channels Tax planning and administration
Long-term measures	Development of a financial strategy for an enterprise Search for strategic partners	Long-term contracts Building your own capital

Increased cash flow

Reducing cash outflow

Short term measures

Assortment optimization

Debt restructuring

Increase in sales volumes

Improving customer service

Cost reduction

Using well-established supply channels

Tax planning and administration

Long-term measures

Development of a financial strategy for an enterprise

Search for strategic partners

Long-term contracts

Building your own capital

Literature

Lyubushin N.P. Comprehensive analysis of financial and economic activities. – M.: Finance and Statistics, 2010.
Savitskaya G.V. Economic analysis. – M.: New knowledge, 2005.
Chechevitsyna L.N. The financial analysis. – Rostov-on-Don: Phoenix, 2010.

Solvency An enterprise is determined by its ability and ability to promptly and fully fulfill its payment obligations arising from trade, credit and other transactions of a monetary nature (solvency affects the forms and conditions of commercial transactions, including the possibility of obtaining a loan).

Liquidity An enterprise is determined by the availability of liquid assets, which include cash, funds in bank accounts and easily realizable elements of working resources. Liquidity reflects the ability of an enterprise to make necessary expenses at any time.

To analyze liquidity and solvency they use following methods:

1 method. Balance sheet liquidity analysis : shows what relationships between the sections of assets and liabilities the enterprise must have in order to ensure the possibility of selling the enterprise’s property within the appropriate time frame to pay off emerging obligations.

The analysis compares assets grouped by degree of liquidity with liabilities grouped by their maturity dates:

Balance sheet liquidity is defined as the degree to which an enterprise's liabilities are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of liabilities.

The most universal form of liquidity analysis is the compilation of grouping balance sheet tables. This method can be used for both external and internal analysis.

Groups of funds and liabilities.

Group name (asset)	Characteristic	Group name (passive)	Characteristic
Most liquid assets	Cash and short-term financial investments	Most urgent liabilities	Accounts payable
Quickly realizable assets	Short-term accounts receivable (payments for which are expected within 12 months) and VAT on purchased assets	Short-term liabilities	Short-term borrowed funds and other short-term liabilities
Slow moving assets	Inventories, accounts receivable, payments for which are expected after 12 months, and other current assets, other current assets.	Long-term liabilities	Long-term loans and borrowed funds
Hard to sell assets	Fixed assets.	Permanent (stable liabilities)	Section 3 of the balance sheet (equity).

The balance is considered absolutely liquid if the following ratios exist:

The fulfillment of the first three inequalities entails the fulfillment of the fourth inequality, therefore, it is practically essential to compare the results of the three groups for assets and liabilities. The fulfillment of the fourth inequality is of a “balancing” nature and at the same time it has a deep economic meaning - its fulfillment indicates compliance with the minimum condition of financial stability, i.e., that the enterprise has its own working capital.

If these inequalities are met, then the balance sheet structure is considered liquid; if at least one inequality is not met, then the balance sheet structure is not satisfactory and the enterprise may become insolvent;

Method 2. TOcoefficient analysis liquidity of the enterprise determined using a number of financial ratios:

1. Absolute liquidity ratio (the rate of cash reserves) complements the previous indicators. It is determined by the ratio of cash to the total amount of short-term debts of the enterprise.

K al must be ≥ 0.2

where DS is cash;

KFV – short-term financial investments

KO – short-term liabilities

The higher its value, the greater the guarantee of debt repayment, since for this group of assets there is practically no danger of loss of value in the event of liquidation of the enterprise and there is no time lag for converting them into means of payment.

The value of the coefficient is considered sufficient if it is 0.20-0.25. If a company can currently repay all its debts by 20-25%, then its solvency is considered normal.

It should be noted that the level of the absolute liquidity ratio itself is not a sign of poor or good solvency. When assessing its level, it is necessary to take into account the rate of turnover of funds in current assets and the rate of turnover of short-term liabilities. If means of payment turn over faster than the period of possible deferment of payment obligations, then the solvency of the enterprise will be normal.

2. Quick (critical, intermediate) liquidity ratio

Kbl =

where KRZ is short-term receivables;

Kbl should be 0.7-1.0.

However, this value may be insufficient if a large share of liquid funds consists of receivables, part of which is difficult to collect in a timely manner. In such cases, a larger ratio is required. If cash and cash equivalents (securities) account for a significant portion of current assets, then this ratio may be smaller.

In world practice, the value of the coefficient = 1 is allowed, which characterizes the solvency of the enterprise for a period of 15-30 days.

1. Current ratio (debt coverage ratio) - the ratio of the total amount of current assets, including inventories and work in progress and excluding deferred expenses, to the total amount of short-term liabilities (III section of liabilities):

K tl =

where ОА – current assets

K tl must be ≥ 2.

The current ratio shows to what extent current assets cover short-term liabilities.

Method 3. Cash Flow Analysis is carried out on the basis of form 4 of the DDS report: the balance of funds at the end of the year is compared with the balance of funds at the beginning of the year - ideally, the growth rate of these funds should correspond to sales revenue, if less, then this is a negative trend, and if these funds are zero, then the enterprise is not solvent in a given period of time, it becomes clear why this happened.

Solvency of the enterprise

Solvency is the most important indicator characterizing the financial condition of an enterprise, its ability to timely and fully pay all its financial obligations, which depends on the safety of the enterprise’s own funds and the effective use of working capital.

The solvency of enterprises is determined by the influence of both external and internal factors.

External factors include:

The general state of the economy, its structure,

State, tax and budget policies,

Interest and amortization policy,

Market condition, etc.

Internal factors include:

The state of the enterprise's assets, their turnover,

Structure of sources of formation of these assets.

Insolvency is the financial condition of an enterprise in which it is unable to pay off its debts within the prescribed period. The loss of solvency by an enterprise can be reversible or irreversible, depending on whether the enterprise is able to restore solvency without external influences.

Insolvency (irreversible insolvency) is the financial condition of an enterprise in which it is unable to fulfill its debt obligations within the prescribed period and is also unable to independently restore its solvency.

It is obvious that for a normally functioning enterprise the natural state should be solvency

There are 7 types of insolvency:

1) expected

An enterprise is in a state of expected insolvency if, at the time of the report, it has funds to repay overdue debts, but in the future, its available sources of debt coverage will not allow it to pay off its debt obligations. Regarding the financial condition of the enterprise in this case, it can be argued that it may be insolvent in the future due to the fact that its assets, together with the accumulated net profit (possibly negative if the enterprise is unprofitable), will after some time be insufficient for the timely return of borrowed funds.

2) technical

Technical insolvency shows the lack of sufficient funds to immediately pay off overdue debts, but assets and accumulated net profit are sufficient sources of covering debt obligations in the future.

3) short-term

Short-term insolvency is considered to be in which the company is unable to repay the overdue debt within the standard period, has a sufficiently intense flow of profit, which, together with existing funds, will make it possible to repay the short-term cash debt within the corresponding standard period.

4) temporary

Temporary insolvency corresponds to a situation in which an enterprise is unable to repay its external debt in a timely manner; monetary debt, but by attracting the entire set of quick-liquid assets will be able to pay off the external debt as a whole.

5) long-term

Long-term insolvency is characterized by the fact that the enterprise does not have sufficient sources of funds to timely repay external debt, but by mobilizing all current assets it is able to pay off all short-term obligations. Unlike an enterprise in a state of temporary insolvency, there is an opportunity to pay off short-term obligations using low-liquidity assets.

6) long-term

The state of prolonged insolvency indicates that working capital and accumulating net profit are not sufficient sources of covering borrowed funds. And only the attraction of non-current assets will allow the company to repay the entire amount of debt obligations.

7) irreversible.

Irreversible insolvency (insolvency) is characterized by the fact that the entire totality of the enterprise's assets is not enough to repay the full amount of debt obligations - short-term and long-term. The state of irreversible insolvency is characterized by the fact that the enterprise cannot pay off its debt obligations without external financial intervention. Insolvency recognized in accordance with the legally established procedure is considered as bankruptcy.

Based on the above, the main objectives of the analysis are:

Establishing the ability of the enterprise to timely and fully pay its financial obligations;

Finding reserves and opportunities for the most economical and rational use of financial resources, ensuring and increasing the solvency of the enterprise;

Development of measures to improve the solvency of the enterprise.

The activities of any organization are carried out in the economic conditions established by the management system of local governments, a certain state, and the world community. Any actions of the organization are possible only if the given economic conditions allow and permit such actions.

Figure 1. External and internal environmental factors

The company is in a state of constant exchange with the external environment. On the one hand, it takes advantage of the opportunities provided by the external environment - the benefits of geographical location, tax privileges, and financial incentives. On the other hand, it carries out its activities by expanding sales markets, introducing new products and services into the market, thereby developing and improving the economic conditions in which it exists. However, for the analysis of solvency, it is important to assess the degree of influence of the external environment on the organization, and not vice versa.

The internal environment is the source of the organization's viability. It includes a set of characteristics that can provide the potential necessary for the functioning of the organization, but at the same time can be a source of problems that can lead the enterprise to crisis. Intra-company economic policy, organizational and production structures, control systems and other principles of the organization's functioning directly depend on the decisions made by management bodies. Thus, assessing the impact of internal conditions on the organization’s activities to a certain extent shows the effectiveness of managing the company’s economic activities.

Assessment of the influence of environmental factors

When analyzing external environmental factors, it is necessary to assess the impact on the enterprise of general economic conditions, regional and sectoral characteristics of its activities. In each case, various factors may be decisive in the deterioration of the financial condition or hindering (facilitating). However, to determine them, a set of indicators should be considered.

For example, analysis of the state’s monetary policy allows us to assess the overall economic situation in the country. Based on the tools used to implement government policy (changes in the interest rate, mandatory reserve requirements, volume of money supply), it is possible to assess the impact on business in general and on specific industries, as well as the activities of the enterprise in question in particular.

An analysis of state regulation of the type of activity in which the company operates, the dynamics of development of this industry, the influence of seasonal factors on the activity will allow us to identify key problems that the organization may have encountered, assess missed opportunities, and determine the presence of potential for growth. For example, the tightening of licensing standards could at one time create additional costs for obtaining permission to carry out activities, increase the time for searching for more qualified personnel and the costs for them. As a result, the performance of activities during this period (transition to operation in accordance with new requirements) could sharply deteriorate due to a reduction in turnover (sales revenue) and a simultaneous increase in costs and administrative (commercial) expenses.

Among other external factors, important to consider are the geographic location and economic conditions of the region in which the company operates, the presence (absence) of financial incentives and trade restrictions. For example, for organizations engaged in tourism activities such as selling tourist packages, or selling consumer goods, or providing rental services, a location in large cities such as Moscow, St. Petersburg, and Rostov-on-Don is profitable and promising. The economic conditions of these cities are favorable for conducting business in terms of the presence of a large number of individuals and legal entities with purchasing power above the average level, favorable economic and financial conditions for business development and other factors.

A special type of financial incentive is non-state financing of small businesses, which can be expressed, in particular, in the form of the opportunity to carry out activities on the territory of a business incubator. Typically, the right to locate on the territory of a given facility can be obtained by organizations engaged in innovative activities, whose work is related to the implementation of research and development work. The potential of placement on the territory of a business incubator lies in the preferential provision of a range of services and resources necessary for effective development (providing free consulting assistance on economic, legal and accounting issues, good access to financing, assistance in developing business plans, justification for investments and search investors, etc.).

Thus, retrospective and current assessment of the influence of external factors allows you to determine whether there was a negative impact on the company’s activities that could lead to a real crisis, and whether there is potential for successful development in the future if all existing opportunities are used.

Assessment of the influence of internal environmental factors

When analyzing the influence of internal environmental factors, it is necessary to analyze internal company policies, evaluate the effectiveness of the applied organizational and production structures, because The level of organization of an enterprise affects the ability to adapt to changes in the external environment.

The organizational structure of an enterprise is a set of links (structural divisions) and connections between them. A correctly chosen organizational structure can bring management tasks into line with the principles of competence and responsibility, correctly distribute responsibility (not for an area, but for a process), and increase mobility in decision making. All this together can increase the efficiency of the company’s activities, and therefore ensure a positive financial result. An incorrectly chosen organizational structure can lead to loss, complicating the assessment of the effectiveness of individual areas of activity.

When analyzing organization, it is necessary to check the compliance of the management structures used before the emergence of crisis processes with the circumstances required at that time. The potential for changes in management effectiveness and the extent to which such a change will impact current status and future developments should also be assessed. For example, the use of a linear structure is effective in small enterprises with simple technology and minimal specialization; in particularly large organizations, the so-called divisional structure is used, where the distribution of responsibilities occurs not by function, but by product or region. Aerospace enterprises and telecommunications organizations carrying out large projects for customers benefit from using matrix structures, the essence of which is to create temporary working groups in existing structures, while resources and employees of other departments are transferred to the group leader in double subordination.

In addition to the organization of activities in general, the deterioration of the financial condition (or, conversely, the improvement of solvency indicators), among internal factors, can be influenced by such as the efficiency of use of production facilities, that is, the degree of workload, utilization, return on existing production assets; the presence of non-production facilities that can both introduce additional costs that negatively affect the financial result and add to the company’s image, and therefore increase the chances of profitable external financing.

One of the important ones is the determination of intra-company resources and reserves. In economic studies, two concepts of reserves are distinguished, namely, reserve stocks, for example, inventory, cash, the availability of which is necessary for the continuous functioning of the organization, its planned management, and unused opportunities to improve the results of the economic and financial activities of the enterprise, reduce current and advance costs, material, labor and financial resources.

Assessment of internal environmental factors the company allows you to identify possible errors of management bodies associated with the methods used to organize activities, as well as assess the resource potential necessary to overcome the crisis and effectively continue activities in the future.

To summarize, we can say that the factors of the internal environment that negatively affect the solvency of the company include: ineffective management, underdeveloped marketing and financial services, insufficient planning, ineffective use of production capacity, the presence of hidden reserves for improving operations.

Among the external environmental factors, one can highlight the instability of the foreign economic situation, unfavorable industry conditions, a shrinking market, and lack of incentives and financial support for activities.

Bibliography:

Baldin K.V., N.P. Gaponenko N.P., Orekhov V.I. Anti-crisis management: textbook - M.: Infra-M, 2009.
Gilyarovskaya L.T., Lysenko D.V., Endovitsky D.A. Comprehensive economic analysis of economic activity - M.: TK Velby, 2008.
Tooth A.T. Strategic management: theory and practice: Textbook for universities. - M.: Publishing House "FORUM": INFRA-M, 2010.
Lysenko D.V. Comprehensive economic analysis of economic activity: textbook for universities - M.: Infra-M, 2009.
Savitskaya G.V. Analysis of the economic activity of the enterprise - M.: Infra-M, 2009.
Sheremet A.D., Negashev E.V. Methodology for financial analysis of the activities of commercial organizations. / A.D. Sheremet - M.: INFRA-M, 2007.

Bank liquidity is one of the most important generalized qualitative characteristics of a bank’s activities. Liquidity refers to the bank's ability to satisfy the needs of the bank's clients and its creditors for financial resources during the operating day at an acceptable level of costs. At the same time, bank liquidity is a dynamic state that develops gradually and is characterized by the influence of various factors and trends.

In educational and professional literature, along with the concept of “liquidity”, “solvency” is also used, which is associated with the positive value of the bank’s equity capital, where negative capital means insolvency. On the other hand, bank solvency refers to the sufficiency of bank capital to secure assets. But most often, solvency is considered as the fulfillment of obligations on a specific date.

The liquidity and solvency of a commercial bank is influenced by a number of factors that can be divided into macroeconomic and microeconomic.

The main macroeconomic factors that determine the liquidity and solvency of a commercial bank include: the geopolitical and macroeconomic situation in the country: the totality of legislative, legal and legal norms of banking; structure and stability of the banking system; state of the money market and securities market, etc.

In addition, the liquidity and solvency of a commercial bank are influenced by microeconomic factors, of which the main ones include: the resource base of a commercial bank, the quality of investments, the level of management, as well as the functional structure and motivation of the bank.

It should be noted that the factors influence in combination, and the relationship is observed both in their individual groups and between groups.

The following factors underlie the emergence of liquidity risk:

- loss of confidence in the banking system or in an individual bank;
-dependence in terms of attracting deposits from one market or a small number of partners;
-excessive short-term borrowing or long-term lending;
- manifestation of credit risk that disrupts the structure of cash flow in the bank;
-high risk of concentration in the portfolio of banking assets (securities, currency position).

The liquidity of a bank's balance sheet is affected by the structure of its assets: the greater the share of first-class liquid funds in total assets, the higher the bank's liquidity. The bank's assets, according to the degree of their liquidity, can be divided into three groups: 1. Liquid funds that are in immediate readiness, or first-class liquid funds. These include cash, correspondent account funds, first-class bills and government securities. 2. Liquid funds at the disposal of the bank that can be converted into cash. We are talking about loans and other payments to the bank with deadlines for execution in the next 30 days, conditionally marketable securities registered on the stock exchange (as well as participation in other enterprises and banks), and other valuables (including intangible assets). 3. Illiquid assets are overdue loans and bad debts, buildings and structures owned by the bank and related to fixed assets.

The bank's liquidity also depends on the degree of risk of individual active operations: the greater the share of high-risk assets in the bank's balance sheet, the lower its liquidity. It is customary to classify cash as reliable assets, and long-term bank investments as high-risk assets.

The degree of creditworthiness of the bank's borrowers has a significant impact on the timely repayment of loans and thereby on the liquidity of the bank's balance sheet. The greater the share of high-risk loans in a bank's loan portfolio, the lower its liquidity.

Liquidity also depends on the structure of balance sheet liabilities. If on demand deposits depositors have the right to demand money at any time, then time deposits are at the disposal of the bank for a more or less long period. All other things being equal, an increase in the share of demand deposits and a decrease in the share of time deposits reduces bank liquidity. The reliability of deposits and loans received by the bank from other credit institutions also affects the level of balance sheet liquidity.

Banks borrow large amounts of short-term deposits and reserves from citizens, businesses and other lending institutions, then put them into circulation and provide long-term loans to their customers. So most banks have some mismatch between the maturities of their assets and the maturities of their underlying liabilities. The problem that arises with timing mismatches is that banks have an unusually high proportion of obligations that require immediate fulfillment, such as demand deposits, checking accounts, and money market borrowings. Thus, banks must always be prepared to meet the immediate demand for funds, which can be quite significant at certain times.

Another source of potential liquidity problems is the sensitivity of banks to changes in interest rates. When interest rates rise, some savers withdraw their funds to seek higher returns elsewhere. Many borrowers may pause applying for new loans or speed up drawing on lines of credit that still have low interest rates. Thus, changes in interest rates are reflected in customer demand for both deposits and loans, which has a strong impact on the bank’s liquidity level. Moreover, changes in interest rates affect the market value of assets, the sale of which the bank may need to obtain additional liquid funds, and has a direct impact on the cost of borrowing in the money market.

Regardless of these factors, meeting the demand for liquid funds should be a high priority for the bank. Failure in this area can seriously undermine customer confidence.

Liquidity and solvency of the enterprise and ways to improve them. Factor analysis of companies' current liquidity

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1.4 Ways to increase liquidity and solvency

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