The main directions for improving the financial results of the enterprise. Reserves for improving financial performance

JSC SAAZ AMO ZIL

The main sources of reserves for increasing the amount of profit are an increase in the volume of product sales, a reduction in its cost, an improvement in the quality of commercial products, their sale in more profitable markets, etc. (Fig. 2).

Rice. 2. Reserves for increasing profits

As a result of the work carried out, it was revealed that at SAAZ AMO ZIL CJSC, the cost of products sold was the main factor that negatively affected the financial results of the enterprise.

1. Let’s calculate the reduction in production costs due to growth in labor productivity outpacing growth wages.

Cost reduction = (1-Wage Index/Labor Productivity Index)*Wage share

Let's calculate the share of wages in the cost of production:

(56080/284066)*100% = 19,74%

Let's calculate the wage index:

In the reporting period (2006), the average salary of PPP was 2,505 rubles. If in the planning period the average wage is increased to 2,600 rubles, then the wage index will be 1.04.

The labor productivity index will be 1.06, i.e. it is planned to increase output per employee by 6%.

Labor productivity can be increased through the following organizational and technical measures:

Reducing intra-shift downtime;

Reducing technical interruptions in work;

Increasing work motivation.

It is necessary to find internal reserves for increasing labor productivity at the enterprise.

Then, the reduction in production costs will be:

(1-1,04/1,06)*19,74% = 0,39%

Thus, the growth of labor productivity, outpacing the growth of wages, will reduce the cost of production by 767 thousand rubles.

(284066*0.39%)/100% = 1107.86 thousand rubles.

2. Let us determine the reduction in production costs due to an increase in production volume at constant, semi-fixed costs.

Cost reduction = (1 - Index of semi-fixed costs/Index of production volume)*Share of semi-fixed costs

Since the share of semi-fixed costs in the cost of production is 23.14%, and the production volume is planned to increase by 10%, the reserve for cost reduction will be 2.10%.

Cost reduction = (1 – 1/1.1)* 23.14% = 2.10

Thus, an increase in production volume with unchanged semi-fixed costs will reduce the cost of production by 5965.39 thousand rubles (284066 * 2.10%)

Let's determine the total savings from reducing product costs through the implementation of the proposed measures:

0.39%+2.10% = 2.49% or

1107.86+5965.39 = 7073.25 thousand rubles.

The analysis showed that the most important factor influencing positive influence The financial results of ZAO SAAZ AMO ZIL are influenced by changes in prices for sold products.

Therefore, along with reducing production costs, in order to increase profits, the enterprise should pursue a flexible policy of market prices for products sold.

Conclusion

The economic potential of an enterprise is not limited to the property component; its financial side is no less important, the essence of which is to reflect the rationality of the structure current assets, as ensuring current payments, sufficiency of funds, the ability to maintain the existing or desired structure of sources of funds. If two enterprises have the same composition and structure of property, but one of them is significantly more burdened with debts compared to the other, then the characteristics of economic potential, as the ability, in particular, to generate profit for these two enterprises will be fundamentally different.

From the perspective of the financial activities of any commercial organization, there is an inherent need to solve two main problems:

Maintaining the ability to meet current financial obligations;

Providing long-term financing in the desired volumes and the ability to painlessly maintain the existing or desired capital structure.

These tasks are formulated in terms of characterizing the financial condition of the enterprise from the perspective of short-term and long-term prospects, respectively.

The financial condition of an enterprise from a short-term perspective is assessed by indicators of liquidity and solvency, most general view characterizing whether it can timely and fully pay short-term obligations to counterparties.

When talking about the liquidity of an enterprise, we mean that it has working capital in an amount theoretically sufficient to repay short-term obligations, at least in violation of the repayment terms stipulated by the counterparties. The meaning of the definition is that if the process of production and sale of products proceeds as normal, then the amounts of money received from buyers in payment for the products received by them will be sufficient for settlements with creditors, i.e. settlements for current obligations.

The main sign of liquidity, therefore, is the formal excess (in value) of current assets over short-term liabilities. The greater this excess, the more favorable the financial condition of the enterprise in terms of liquidity. If the value of current assets is not large enough compared to short-term liabilities, the current position of the enterprise is unstable - a situation may well arise when it does not have enough cash to pay its obligations and it will have to either disrupt the natural technological process or sell off part of the long-term assets.

The level of liquidity of an enterprise is assessed using special indicators - liquidity ratios, based on a comparison of current assets and short-term liabilities.

Based on the analysis, we can conclude that the current liquidity ratio of the analyzed organization is decreasing over time by 0.1049 points, i.e. in the reporting period, the organization cannot pay for its current liabilities at the expense of current assets;

the absolute liquidity ratio increased by 0.0003 points, the organization has enough of the most liquid assets to cover short-term liabilities or current liabilities;

The total liquidity ratio also increased slightly, which means that the liquidity of the organization as a whole is increasing.

Naturally, the given coefficients do not exhaust the variety of methods for assessing liquidity and solvency; It is hardly possible to prioritize between certain indicators.

Based on the analysis of liquidity and solvency, we can conclude that the company has sharply reduced its liquidity and solvency compared to the beginning of the year.

After analyzing financial results CJSC SAAZ AMO ZIL, we can conclude that the enterprise, based on the results of production and economic activities for 2006, is profitable. For 2006, the company's net profit amounted to 2,398 thousand rubles. and during the analyzed period (2005 – 2006) increased by 829 thousand rubles. (2398-1569) or 52.84% ((2398/1569)*100). Profit from sales was at the level of 9680 thousand rubles. At the same time, the change in the structure of sold products towards products with a lower level of profitability reduced the profit from sales for the analyzed period compared to the previous one by 2104 thousand rubles (9680-11784) or -17.85% ((9680/11784) * 100 ). Profit from sales is influenced by three factors: revenue from the sale of goods, cost of goods sold (products, works, services) and selling expenses.

Negative financial result from other operations in 2006 was 6,338 thousand rubles. improved by 2504 thousand rubles. The profitability of long-term financial investments has also increased. by 2 thousand rubles (+5.45%). Accrued income tax and other similar payments in the amount of 983 thousand rubles. brought the positive dynamics of the final financial result in terms of profit for 2006 to the level of +829 thousand rubles.

As for the overall profitability of the enterprise, we can conclude that the dynamics of its indicators are positive, although its level is not high.

In general, according to the analysis, the plant of ZAO SAAZ AMO ZIL is profitable. But the management of the enterprise needs to reduce the level of production costs, increase the volume of sales of commercial products, and also reduce commercial expenses. Such measures help to increase the amount of profit.

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The company's profit is low compared to revenue, and there is a downward trend. All this reduces the liquidity of the balance sheet.

Reasons that influenced this situation:

- poor economic relations between supplier organizations, contracts specify too long terms for payment for goods sold, there are no penalties for late payment for goods supplied;
- lack of a marketing department at the enterprise. Products LLC does not pursue an active advertising policy and is not looking for new consumers.

In order to improve the financial condition of the enterprise, a plan for the financial recovery of the enterprise is proposed, which includes the following provisions:

1. Development and implementation of quarterly monitoring of the enterprise’s activities on the basis of accounting (financial) statements separately for divisions (stores) and consolidated accounting statements for the enterprise as a whole in the following areas:
- - Revenue, cost, profit.
- - Condition of working capital.
- - Indicators of business activity and operational efficiency: coefficient of provision with own working capital, profitability of core activities, profitability of working capital.
- - Cash flow indicators (analysis of cash flows for current (main) and financial activities).
- - Indicators financial stability(autonomy coefficient, ratio of equity and borrowed funds, bankruptcy forecast coefficient).
- - Solvency indicators: current, intermediate and total liquidity.
2. Monitoring the dynamics and structural changes in the main indicators of financial and economic activity and analyzing the reasons for the changes throughout the year.
3. Analysis of the effectiveness, economic and financial efficiency of the largest contracts.
4. Monitoring and analysis of the implementation of internal thematic plans for departments and stores.
5. Identification and reduction of unproductive costs of resources (human, material, production) for each division.
6. Conducting marketing research and market research in order to form and maintain competitive areas of activity aimed at accelerating the promotion of goods to consumers.
7. Analysis of the causes and closure of unpromising (unprofitable) areas of activity.
8. Tracking the timing of repayment of accounts payable: control over the timing of fulfillment of obligations to the bank, budget and extra-budgetary funds.
9. Analysis and diagnostics of financial and economic activities in order to predict the likelihood of bankruptcy using the methodology developed Federal service on the financial recovery of the Russian Federation.
10. Carrying out changes in the structure of financial management at the enterprise, namely the introduction of a division with the following functions:
- - internal control (audit) of financial activities;
- - strategic planning;
- - analysis of financial and economic activities;
- - operational financial management of the enterprise;
- - work in external financial markets;
11. In order to improve the capital structure in the direction of increasing own funds, increase the additional capital of the enterprise as a result of the revaluation of fixed assets (based on the assessment market value fixed assets).

One of the main directions for improving the organization and maintenance of accounting is related to the automation of processing of accounting information. The advantages of an automated form of accounting: speed of information processing, the ability to quickly obtain information in various areas of analytics, efficiency of control, identification and correction of errors. Full automation of all areas of accounting work will eliminate manual data processing and overcome the time gap between the moment of a business transaction and the moment of its reflection in accounting. The market for software accounting products in Russia is very diverse (for example: 1C-Accounting, Parus, Galaktika, etc.).

The manager of Products LLC is required, first of all, to be able to effectively run a business, that is, to increase profits. There are two main ways to increase profits: the first is to increase the volume of sales and sales of goods, the second is to reduce costs. A thorough economic and organizational analysis can suggest a way out of even a deadlock.

Managing the profit of an enterprise comes down to developing a mechanism for organizational and economic influence based on the results of the enterprise’s work, increasing its efficiency compared to costs, and searching for a set of tools that allow the enterprise to move from spontaneous income generation to regulated income. At the same time, it is not enough to ensure the profitability of the enterprise only.

The profit must be so significant that it supports all production. In the modern period, market competition is more severe, but not due to the price factor, but as a result of the emergence of more sophisticated, subtle methods and forms of competition between enterprises in the market. The survival of an enterprise is increasingly determined by the action of factors of an early order, rather than simply saving on any types of direct or overhead costs. It is necessary for the enterprise to devote much more time to such areas as sales and marketing of products, increasing income, than to management, in order to reduce costs.

Currently, it is necessary for the management of the enterprise to pay attention not so much to obtaining maximum profits, but rather to obtaining maximum income. Maximizing profit is mainly associated with reducing production costs. When an enterprise can control the costs themselves (the consumption of their quantity), and the price for each input resource is practically uncontrollable, and in conditions of unslowing inflation and lack of control, the enterprise is extremely limited in its ability to reduce production costs, thereby achieving an increase in profits. Therefore, here there is a need to re-evaluate other qualitative characteristics that affect the increase in enterprise income.

A modern enterprise must meet the following parameters:

1. Have great flexibility, the ability to quickly monitor the range of goods, since the inability to adapt to consumer needs will lead the organization to bankruptcy.
2. Requirements for the quality of goods have not just increased, but have completely changed their character. It is not enough to sell good products; you also need to think about organizing after-sales service and providing consumers with additional branded services.
3. The structure of production costs has changed dramatically. At the same time, the share of costs associated with the sale of products is increasing. All this requires fundamentally new approaches to the management and organization of a trading enterprise, which directly affects profit management.

A special problem is increasing the efficiency of the enterprise's sales activities. First of all, it is necessary to pay more attention to increasing the speed of movement of working capital and reducing all types of inventories. Naturally, this approach requires a completely different approach to product quality management and supply organization.

When considering profits, the interests of various parties collide: the state, which expects an increase in production and sales of products, an increase in profits, which means an increase in tax deductions to the budget; the workforce, which counts on its share of the profits; banks who are concerned about the solvency of the company, the repayment of received loans and ensuring the provision of new ones: the management of the enterprise, striving to leave as much of the profit as possible undistributed, as a resource, a reserve that allows strengthening the foundations of self-financing.

The manager will have to plan the distribution of profits in such a way as not to cause damage to any party, and at the same time ensure the well-being of the enterprise.

The activities of enterprises should be given great attention to flexible government regulation using economic levers. In Western countries, the state influences them through a system of incentive measures. Accelerated depreciation is achieved by reducing taxable income. Using this method, the state regulates profitability in various sectors of the economy. The fastest depreciation is provided in advanced industries. Among other things, this policy pushes enterprises to accelerate the renewal of fixed capital, equipment, and manufactured products.

The main factors influencing profit include:

1. Competitiveness of products, due to the fact that the enterprise must exist for the consumer and only customers whose needs are met give the organization the opportunity to survive in the market and earn income.
2. High mobility in the market, freedom of economic maneuver, which makes it objectively necessary to take into account market conditions, flexible maneuvering with all available resources to achieve effect.
3. Rhythm and flexibility of the organization, the ability to quickly change the range of products in accordance with consumer requests.
4. Development of measures to improve the range of products, the ability to provide the consumer with a product of higher quality, at the same price, with the same production costs.

All these factors are important for the effective functioning of the enterprise, and only with their help will the enterprise be able to obtain maximum profit. However, the main thing is to satisfy the needs of consumers and determine the set of product groups that are most preferable for successful work On the market.

Profit management should be of a state nature. The tax system must be flexible, stimulate development, and taxes must be clear and stable. It is stability that will lead to an increase in the profit (income) of the enterprise.

The implementation of these proposals will significantly increase the efficiency of profit management in the enterprise.

conclusions

1. This organization has reserves for increasing profits from the sale of products and services and, above all, for changes in the structure of the enterprise, by increasing the share in the volume of sales of more profitable goods and services.
2. Managing the profit of an enterprise comes down to developing a mechanism for organizational and economic influence on the result of the enterprise, since it allows you to move from spontaneous income generation to regulated income.

Zapolskikh Yulia Alfredovna, Candidate of Sciences, Associate Professor, Associate Professor
Bashkir State Agrarian University
Mukhametyanova Gulnaz Valerikovna, bachelor, student
Bashkir State Agrarian University

MARKET ECONOMY
FINANCIAL RESULTS
COMPANY

The activities of any enterprise are focused on obtaining certain results. However, some enterprises confidently achieve their goals, while others are less successful.

Many people attribute the success of an enterprise to the right choice type of activity, the availability of sufficient resources and the ability to navigate the market economy. Successful planning of the economic activity of an enterprise undoubtedly depends on the correct initial orientation and favorable initial conditions of its activity - the provision of material, financial and labor resources. Management in the broad sense as a complex socio-economic process means influencing a process, object, system to maintain their stability or transfer from one state to another in accordance with given goals.

In a market economy, financial performance management occupies a central place in the business life of entities.

The effective operation of enterprises, the stable pace of their work and competitiveness in modern economic conditions are largely determined by the quality of management of financial results, and strive to improve them. .

Each enterprise independently chooses methods and sets of methods to increase the financial results of its activities, depending on its production and technological capabilities, the amount of capital, the speed of achieving the desired results, and the possibility of attracting additional funds and technology.

To increase the financial results of an enterprise’s profit, it is necessary to:

strive to increase production volume by improving the quality of products (goods, works, services) and improve marketing activities
consider and eliminate the causes of overspending financial resources for administrative and commercial expenses;
carry out timely markdowns of products that have lost their original quality;
improve advertising activities, increase the effectiveness of individual advertising events;
improve the skills of workers, accompanied by an increase in labor productivity;
develop and implement effective system financial incentives personnel, closely linked to the main results of the enterprise’s economic activities and resource savings;
develop and implement measures aimed at improving the moral climate in the team, which will ultimately affect increased productivity;
exercise constant control over the conditions of storage and transportation of raw materials and finished products;
implement an effective pricing policy, differentiated in relation to individual categories of buyers, which will ensure optimal combination selling prices and sales volume and contribute to sales and profit growth.

Thus, the financial result of an enterprise’s activities is the economic result of financial and economic activities and is expressed in the form of profit or loss, which is defined as the difference between the income and expenses of the enterprise, and also directly affects the amount of its equity capital. The financial result completes the cycle of the enterprise’s activities associated with the acquisition and sale of goods and at the same time acts a necessary condition the next round of his activities.

Bibliography

Volkov, V. P. Enterprise economics: textbook / V. P. Volkov, A. I. Ilyin, V. I Stankevich. – M.: New knowledge, 2009. – 677 p.
Yudina, D.N. Analysis of financial results of unprofitable organizations / D.N. Yudina, D.A. Filatov // Economic analysis. - 2009.- No. 17. - pp. 21-27. .
Taburchak, P.P. Enterprise economics: textbook / P.P. Taburchak. - Rostov n/d.: Phoenix, 2010. -226 p.
Tolpegina, O.A. Profit indicators: economic essence and their content / O.A. Tolpegina // Economic analysis. - 2008.- No. 20. - P. 10-21.

The starting point in calculating profit indicators is the proceeds from the sale of goods and services, which characterizes the completion of the enterprise’s production cycle, the return of funds advanced for production and their conversion into cash, as well as the beginning of a new cycle in the turnover of all funds. Classification of profit indicators So, the main types of profit are as follows: gross profit is the difference between sales revenue and cost of goods sold for the same period. Gross profit is used to...

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Analysis of the activities and results of the enterprise. In accordance with this goal, the following tasks are set in the abstract: - reveal general ideas about the essence of goals and objectives financial analysis- determine the main methods and methods of financial analysis - consider the structure of information support for economic analysis of the financial and economic activities of an enterprise. It is known that the assessment of financial condition is of interest to a wide range of market subjects: - the enterprise itself that wants to know the real...

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Introduction

1. Fundamentals of the formation of financial results of an enterprise, analysis and analytical assessment

2. Analysis of the financial results of the operation of JSC Dimskoye

2.3 Analysis and assessment of income and expenses of JSC Dimskoye

2.4 Analysis of profitability indicators of OJSC Dimskoye

2.5 Analysis of the composition and dynamics of net profit of OJSC Dimskoye

2.6 Analysis of factors influencing the financial results of JSC Dimskoye

2.7 Assessment of the financial strength margin of OJSC Dimskoye

3. Ways to improve the financial results of JSC Dimskoye

3.1 The main directions for increasing profits at OJSC Dimskoye

3.2 Measures to improve the production efficiency of Dimskoye OJSC financial result profit

3.2.1 Reserves for reducing production costs

3.2.2 Factors and ways to improve product quality

3.3 Improving relationships with processing and capital-forming industries

3.4 Development of marketing activities

Conclusion

List of used literature

INTRODUCTION

Each enterprise builds its own financial (market) mechanism, striving to obtain the largest possible amount of income - the main source of profit.

Financial performance indicators characterize the absolute efficiency of the enterprise's management. The most important form of business activity and financial condition of an enterprise is the value of current financial results. A general assessment of the financial condition of an enterprise is given on the basis of such effective financial indicators as profit and profitability.

Unlike other forms of realization of cash savings, the rate of profit growth depends not only on the efficiency of living labor costs, but also on the size of the savings of embodied labor. Improving the use of production assets, raw materials, materials, fuel, energy means increasing profits by reducing production costs. Profit is one of the main financial resources of an enterprise for the implementation of costs for expanded reproduction and social development.

Enterprises whose financial result is profit bring income not only to their owners, but also make a significant contribution to the development of the economy and social sphere.

The need to introduce technologies to improve financial results, determine ways and means of bringing an enterprise out of a state of insolvency and achieving financial stability by summarizing experience in overcoming financial instability predetermined the relevance of the topic of the thesis and its structure.

The purpose of writing a thesis is to study ways to improve the financial performance of an enterprise.

The object of research in the work is one of the leading enterprises in the Amur region for the production of agricultural products, a diversified, efficiently operating farm - Open Joint-Stock Company"Dimskoye", located in the Tambov region.

To achieve this goal, a number of tasks must be solved:

Study of the theoretical aspects of the formation of financial results, in particular, profit as an economic category, its types, methods of determination and methods of maximization;

Review of performance indicators of JSC Dimskoye;

Analysis of profit as a qualitative indicator of the performance of JSC Dimskoye;

Study of the main directions for optimizing the financial results of JSC Dimskoye.

The theoretical and methodological basis of the thesis was the works of domestic and foreign scientists and specialists in the field of financial analysis, financial management, economics and enterprise management.

Data from the accounting financial statements of JSC Dimskoye for 2007-2009 were used as source materials.

The scientific novelty of the study lies in the development of recommendations for improving the financial results of the activities of JSC Dimskoye; the prerequisites for improving the financial condition of the enterprise are revealed.

During the research process, general scientific methods were used: systematic approach, abstract-logical, economic-statistical, calculation-constructive, monographic.

1. BASICS OF FORMATION OF FINANCIAL RESULTS OF THE ENTERPRISE, ANALYSIS AND ANALYTICAL ASSESSMENT

1.1 Profit as the main one financial indicator activity of the enterprise

The economic essence of profit is one of the complex and controversial problems in modern economic theory.

From an economic point of view, profit is the difference between cash receipts and cash payments. From an economic point of view, profit is the difference between the property status of the enterprise at the end and beginning of the reporting period. Profit is the excess of income over expenses. The reverse position is called loss.

Analyzing various scientific interpretations of profit, we can formulate the following definition.

Profit can be considered only that part of the added value that is created as a result of the sale of products, performance of work, and provision of services. Sales of other assets, proceeds from non-operating operations and other proceeds form income.

All income receipts are actually recognized as forming profit with the exception of expenses.

Firstly, profit is a criterion and indicator of the efficiency of an enterprise. In other words, the very fact of profitability already indicates the effective operation of the enterprise. However, will this evidence be necessary and sufficient for the owner and the creditor? Apparently not, since the enterprise does not need any profit at all, but a specific amount of it to satisfy the needs of all interested parties: the owners of the enterprise, its employees and creditors. The amount of profit is determined by many factors, some of them depend on the efforts of enterprises, others do not.

Secondly, profit has a stimulating function. Acting as the final financial and economic result of an enterprise, profit plays a key role in market economy. It is assigned the status of a goal, which predetermines the economic behavior of business entities, the well-being of which depends both on the amount of profit and on the algorithm for its distribution adopted in the national economy, including taxation.

Profit is the main source of equity capital growth. In conditions of market relations, owners are guided by the amount of profit remaining at the disposal of the enterprise, make decisions regarding dividend and investment policies pursued by the enterprise, taking into account the prospects for its development.

Profit in a market economy is the driving force and source of renewal of production assets and manufactured products.

And finally, profit is a source of social benefits for members of the workforce. At the expense of the profit remaining at the enterprise after paying taxes, paying dividends and other priority deductions, material incentives are provided to employees and the provision of social benefits to them, and the maintenance of social facilities.

Thirdly, profit is the source of budget revenues different levels. It goes to budgets in the form of taxes, as well as economic sanctions, and is used for various purposes, determined by the expenditure part of the budget and approved by law.

Thus, the profit of an enterprise is the main factor in its economic and social development. This conclusion follows from the goal entrepreneurial activity. This goal setting is quite logical for the current level of development.

1.2 Indicators characterizing the financial results of the enterprise and the methodology for their determination

The financial results of an enterprise are characterized by the amount of profit received and the level of profitability. The greater the profit and the higher the level of profitability, the more efficiently the enterprise operates, the more stable its financial condition. Therefore, finding reserves for increasing profits and profitability is one of the main tasks.

The main tasks in the process of managing financial results are:

Systematic control over the formation of financial results;

Determining the influence of both objective and subjective factors on financial results;

Identification of reserves for increasing the amount of profit and the level of profitability and forecasting their value;

Assessing the enterprise’s performance to take advantage of opportunities to increase profits and profitability;

Development of measures for the development of identified reserves.

In the process of assessing profit as a qualitative indicator of activity, the following profit indicators are used:

marginal profit (the difference between revenue (net) and direct production costs for products sold);

profit from sales of products, goods, services (the difference between the amount of marginal profit and fixed costs of the reporting period);

the total financial result before interest and taxes (gross profit) includes the financial result from the sale of products, works, services, income and expenses from financial and investment activities, other income and expenses;

net profit is that part of it that remains at the disposal of the enterprise after paying interest, taxes, economic sanctions and other mandatory deductions;

capitalized profit is a part of net profit that is used to finance the growth of assets;

consumed profit is that part of it that is spent on paying dividends, to enterprise personnel or on social programs. The mechanism for generating these indicators is presented in Figure 1.

Figure 1.1 - Structural and logical model for the formation of profit indicators

It is necessary to take into account the unequal importance of one or another profit indicator for different categories interested parties. For the owners of an enterprise, the final financial result is important - net profit, which they can withdraw in the form of dividends or reinvest in order to expand the scale of activity and strengthen their market positions. Lenders are more interested in the total amount of earnings before interest and taxes, since from this they receive their share of the loaned capital. The state is interested in profit after interest before taxes, since it is this that serves as the source of money for the budget.

The orientation of the domestic economy towards market relations required a revision of the attitude towards profitability, which is due to its special place in the economic system.

Profitability acts as an economic category, an estimated performance indicator, a target, a tool for calculating the net income of society, a source of formation of various funds.

The economic content of profitability is identical to the concept of “surplus value”. As an economic category, profitability reflects the totality of relations between business entities involved in the formation and distribution of national income.

The main functions of profitability are: accounting, evaluation, incentive.

As an effective indicator, it characterizes the efficiency of using available resources, success (failure) in business, growth (decrease) in activity volumes.

As a quantitative indicator, profitability is the difference between the price and cost of goods, between sales volume and cost (in the sphere of circulation between gross income and distribution costs). Profitability, being the end result of an enterprise’s activities, creates conditions for its expansion, development, self-financing and increased competitiveness.

As economic theory developed, the definition of the concept of “profitability” was constantly refined from the simplest definition as income received from the production and sale of any product, to the concept of pure profitability. Currently, it is characterized from the perspective of two levels: microeconomic and macroeconomic. The calculation of profitability using the existing methodology at the macro and micro levels is different. At the enterprise level, its calculation is associated with the education process, and at the state level with determining the place of profitability in the country’s income.

The concept of "profitability" has different meanings from the perspective of the enterprise, consumer, and state. But in all cases it means benefit. If the company operates profitably (in normal conditions management), this indicates that the buyer, purchasing goods from this particular manufacturer, receives satisfaction from the purchase, and the state can, through taxes on profitability, support unprofitable objects, solve priority social objectives.

The presence of profitability makes it possible to satisfy the economic interests of the state, enterprise, employees and owners. The object of economic interests of the state is that part of the “profitability” that the enterprise pays in the form of a profitability tax and which society uses to solve social problems. The economic interests of the enterprise lie in increasing the share of profitability remaining at its disposal. Due to this profitability, the enterprise solves the production and social problems of its development. The interests of workers in increasing profitability are associated with creating opportunities to improve material incentives and increase the level of their social development. The owners are also interested in increasing the profitability of the enterprise.

The goal of any commercial structure in a market economy is ultimately to achieve profitability that can ensure its further development. Profitability is considered not only as the main goal, but also as the main condition for the business activity of an enterprise, as a result of its activities, the effective implementation of its functions to provide consumers with necessary goods in accordance with the existing demand for them.

The problem of profitability and methods for its quantitative measurement are constantly in the spotlight when developing methodological and instructional materials. In this regard, the proposal of economists to introduce a classification of profitability indicators into absolute and relative, depending on the method of their quantitative expression, deserves attention.

Absolute indicators of profitability are gross and net income. However, the absolute sizes of net income, profit and gross income do not allow a full comparison of the economic results of the production activities of enterprises. An enterprise can make a profit of a thousand rubles and a million.

In both cases, production is profitable, and efficiency can be different, since it depends on the size of production, product structure, production costs, and so on. Therefore, to characterize the economic efficiency of production, they also use relative indicators profitability, which are expressed as the ratio of two commensurate quantities: gross, net income, profit, and indicators of the efficiency of using certain production resources or costs. Relative profitability indicators can be calculated in monetary terms or, most often, as a percentage. With their help, the profitability of agricultural production can be expressed both in terms of gross and sold (commodity) products.

In practice, relative indicators of profitability of sold products, called the norm or level of profitability, are mainly used. They are calculated both for all products sold by the enterprise and for their individual types. In the first case, product profitability (Rpr) will be determined as the ratio of profit from the sale of products to the costs of its production and sales:

Rproduct = (1)

The profitability of all products sold is calculated in the same way as the ratio of profit from the sale of marketable products to revenue from product sales: by the ratio of balance sheet profit to revenue from product sales.

Profitability indicators for all products sold give an idea of the efficiency of the enterprise's current costs and the profitability of products sold.

In the second case, profitability is determined individual species products. It depends on the price at which the product is sold to the consumer, and the cost of its given type.

All of the above profitability indicators characterize economic efficiency using current production costs to obtain products. However, enterprises produce not only current production costs, but also make capital investments to increase and update fixed assets, the cost of which is included in the production costs of each year not in full, but in part equal to the amount of depreciation charges. Therefore, it is important to know the efficiency of using non-recurring costs materialized in the means of production. For these purposes, relative indicators of the profitability of production assets are used, which are calculated as a percentage of profit to the average annual cost of fixed and material working capital separately, as well as total (fixed and material working capital combined) assets, called the rate of profit:

Rproduction assets = (2)

where OS is the average annual cost of fixed assets;

OBC - average annual cost of working capital.

These indicators characterize the efficiency of using the main means of production in the first case, and the total means of production in the second. They show how much profit is received per unit cost of the corresponding means of production. The more profit is received per ruble of means of production, the more efficiently they are used.

Indicators of profitability of investments in the enterprise are also important. They are determined by the value of the property at his disposal. The calculation uses net profit indicators. In addition to profit, when calculating the return on investment, you can use revenue from product sales. This indicator characterizes the level of sales per ruble of investment in the property of the enterprise.

The profitability of an enterprise's own funds is determined by the ratio of net profit to its own funds, determined by the balance sheet.

The profitability of long-term financial investments is calculated as the ratio of the amount of income from securities and equity participation in other enterprises to the total volume of long-term financial investments.

It is not uncommon for the production of any product to be unprofitable or unprofitable. Then, instead of the indicator “standard or level of profitability”, other indicators can be used - the level of loss or the level of cost recovery, which is calculated by the formula:

Cost recovery level = (4)

1.3 Factors generating positive financial results

Change economic indicators over any time period occurs under the influence of many different factors.

Factors are elements, causes and conditions that can be considered as driving forces of ongoing economic phenomena and processes, whose impact is ultimately reflected in the levels, rates of growth, absolute values specific indicators or a whole group of economic indicators.

The variety of factors influencing profit and profitability requires their classification, which at the same time is important for determining the main directions for searching for reserves for increasing business efficiency. This classification is presented in Figure 1.2.

Factors affecting profit and profitability can be classified according to different criteria. Thus, there are internal and external factors. Internal factors include factors that depend on the activities of the enterprise itself and characterize different sides the work of this team.

Figure 1.2 - Classification of factors influencing the financial results of enterprises

External factors include factors that do not depend on the activities of the enterprise itself, but which can have a significant impact on the rate of growth of profits and profitability of production. Identification of the influence of internal and external factors in the process of analysis makes it possible to “clean” performance indicators from external influences, which is important for an objective assessment of the team’s own achievements, depending on which the amount of material incentives for employees is determined.

In its turn internal factors are divided into production and non-production.

Non-production factors are associated mainly with commercial, environmental, claims and other similar activities of the enterprise.

Production factors reflect the presence and use of the main elements of the production process involved in the formation of profit - these are means of labor, objects of labor and labor itself.

When deepening the analysis for each of these elements, groups of extensive and intensive factors are identified.

Extensive factors include factors that reflect the volume of production resources (for example, changes in the number of employees, the cost of fixed assets, the amount of inventories), their use over time (changes in the length of the working day, the shift ratio of equipment, etc.), as well as unproductive use of resources (waste of materials due to scrap, losses due to waste, etc.).

Intensive factors include factors that reflect the efficiency of resource use or contribute to this (for example, improving the skills of workers, equipment productivity, accelerating the turnover of an enterprise); these factors are closely interconnected and dependent.

These indicators reflect, on the one hand, the volume and efficiency of use of advanced funds, that is, funds that are fully involved in the creation of products, and on the other, the size and efficiency of use of their consumed part, participating in the formation of costs.

Thus, the analysis of the influence of factors on the profit remaining at the disposal of the enterprise is associated with the study of the proportions of profit distribution, assessment of their compliance with the requirements of intensive development of the enterprise.

1.4 Main directions for improving financial results

To ensure stable profit growth, it is necessary to constantly seek reserves to increase it.

Profit growth reserves are the quantitatively measurable possibilities of its additional receipt. They are identified both at the planning stage and during the implementation of plans.

The main sources of reserves for increasing the amount of profit are increasing the volume of product sales, reducing its cost, improving the quality of commercial products, selling them on more profitable markets, etc. (Fig. 1.3).

Figure 1.3 - Main directions for searching for reserves to increase sales profits

Profit as the main motive of entrepreneurial activity encourages the enterprise to look for ways to maximize profits.

Profit maximization is a short-term problem, the solution of which is designed for a relatively short period of time.

There are two main ways to maximize profits. The first helps to obtain a larger amount of profit, the second - to increase the rate of profit growth. The first method is based on the principle of comparing marginal costs with marginal revenues, the second method is based on taking into account the influence of fixed and variable costs on the rate of profit growth.

The calculation of the optimal profit becomes the most important element business planning for modern stage management. To predict the maximum possible profit in the coming year, it is advisable based on foreign experience, compare revenue from product sales with the total amount of costs, divided into variable, fixed and mixed.

As you know, variable costs include costs for raw materials, materials, electricity, transport, etc. These costs change in proportion to changes in production volume.

Fixed costs are those that do not change depending on the increase or decrease in production volume. These include depreciation charges, payment of interest on loans, rent, salaries of management personnel, administrative expenses, etc.

Mixed costs include both variable and fixed costs. These, for example, include postal and telegraph costs, routine repairs of equipment, etc.

The increase in profit depends on the relative decrease in variables or fixed costs.

"The effect production leverage" refers to the phenomenon when, with a change in revenue from product sales, a more intense change in profit occurs in one direction or another.

The production leverage effect (ELE) shows the degree of sensitivity of sales profit to changes in sales revenue. The value of the EPR increases enormously as production volume falls and it approaches the profitability threshold, at which the enterprise operates without profit. That is, under these conditions, a small increase in sales revenue generates a multiple increase in profit, and vice versa.

Based on the “production leverage effect”, we can conclude: the higher the share of fixed costs and, accordingly, the lower the share of variable costs with a constant amount of revenue from product sales, the stronger this effect. However, this does not mean that fixed costs can be increased uncontrollably, since if at the same time revenue from product sales decreases, the loss in profit will be large.

Maximizing profits by changing the share of variable and fixed costs opens up the opportunity for enterprises to plan for the future the amount of profit growth depending on economic success in the production of competitive products and take appropriate measures in advance to change in one direction or another the value of variable and fixed costs. Planning the optimal profit margin in modern economic conditions is the most important factor successful activities enterprises and organizations.

2. ANALYSIS OF FINANCIAL RESULTS OF OJSC “DIMSKOE” OPERATION

2.1 Organizational characteristics of JSC Dimskoye

One of the largest agricultural enterprises in the Amur region, Order of the Red Banner of Labor Open Joint Stock Company "Dimskoye" is a diversified, efficiently operating enterprise. Since 1998, according to the results of the annual rating conducted by " Russian newspaper", it is one of the 300 largest and most efficient agricultural enterprises in Russia.

OJSC Dimskoye is located in the village of Novoaleksandrovka, Tambov district.

The territory of the Tambov region occupies the southwestern part of the Zeya-Bureya Plain, the most favorable for agriculture; natural conditions allow successful farming and animal husbandry.

In the Tambov region the highest rural areas population density and compact living. The road network is developed, the main communication is by road.

The main activities of JSC Dimskoye are:

Production of high-quality, environmentally friendly agricultural products;

Sales of products under contracts;

Trade and procurement operations, both in Russia and abroad;

Providing various services to enterprises and organizations;

Other types of activities not prohibited by law.

In the field of crop production, the farm relies on variety renewal. The company’s specialists select varieties based on baking and brewing qualities, as well as ripening time, resistance to diseases, local weather conditions. Dimskoe OJSC annually spends more than 300 thousand rubles on the purchase of elite seeds. In recent years, new varieties of wheat have been introduced into production - "Aryuna", "Lira", "Amurskaya-1495", barley - "Aga", soybeans - "Sonata", "Harmony". The enterprise’s powerful grain yard allows it to receive and process up to 3,000 tons of grain per day. Every year, up to 1.5 million rubles are allocated for the reconstruction of the grain yard.

The company is engaged in breeding productive Holstein-Friesian cattle. The milk yield per forage cow is up to 5 thousand kilograms, the average daily weight gain of cattle is 600 grams. Currently, the cattle farm and pig farm have breeding status. In addition to the main production, the enterprise has a powerful processing network: a dairy shop (up to 20 tons of milk per day), a sausage shop (300 kilograms of sausage per shift), a bakery (500 tons of bakery and pasta products per year), a confectionery, a mill and a sewing shop.

The farm accounts for 70% of the region's processing of agricultural products.

In the near future, Dimskoye OJSC plans to significantly increase the collection of grain and soybeans through the introduction of crops intensive type, increase the number of livestock, expand the processing of raw materials, modernize the technical base, and update the machine and tractor fleet.

2.2 Assessment of the financial condition of JSC Dimskoye

The size of the enterprise is one of the most important factors, influencing production efficiency. Size assessment is carried out both based on the results of the production process and the volume of services provided, as well as on the volume of resources used.

Let's consider the main indicators characterizing the activities of the enterprise in Table 2.1.

Table 2.1

Analysis of the main performance indicators of JSC Dimskoye for 2007 - 2009

Index	Deviation 2008 from

		absolute
Revenue from sales of products, works, services, thousand rubles.
Cost of sold products, works, services, thousand rubles.
Average annual cost of fixed assets, thousand rubles.
Average annual number of employees, people.
Profit (loss) from sales, thousand rubles.
Net profit (loss), thousand rubles.
Costs per ruble of revenue, rub.
Net profitability, %
Area of farmland, ha
Average annual cattle population, heads.
Total energy capacity, hp

According to Table 2.1, we can conclude that during the analyzed period, revenue from sales of products, works and services in 2009. increased by 38.7% compared to 2007, at the same time there was a decrease in this indicator by 5.6% compared to 2008.

The cost of production is constantly growing every year. Thus, compared to 2007, the cost of manufactured products (work, services) increased by 9.8%, and compared to 2008 - by 2.3%. This is due to the increase in the volume of agricultural production of Dimskiy OJSC.

The areas cultivated by the OJSC over three years increased by 3937 hectares or 16.7%.

The cost of fixed assets increases due to the renewal of the technical park. The increase for the entire period was 75.1%.

Along with the increase in space and fixed assets at JSC Dimskoye, the number of employees is also growing. Over three years, the number of personnel increased by 21 people.

The amount of energy capacity for the period is reduced by 8.9%. This indicates the introduction of resource-saving technologies at the JSC.

In 2009 Compared to 2008, the growth rate of costs began to exceed the growth rate of revenue, which led to an increase in the share of costs in revenue. But in general, this figure during the analyzed period decreased by 20.8% and in 2009. for 1 ruble of revenue there are 0.76 rubles. costs.

For the period 2007-2009. The activities of OJSC Dimskoye are profitable.

Sales profit increased almost 9.5 times over three years.

The final financial result of the work is positive, the amount of net profit in 2009 was. is 46,339 thousand rubles, which is 3.7 times higher than in 2007.

The profitability level of an enterprise is characterized by the net profitability indicator and shows how much net profit falls on 1 ruble. sales revenue. If in 2007 1 rub. revenue accounted for 9.9 kopecks of net profit, then in 2009. already 26.6 kopecks.

The formation of an enterprise as a legal entity presupposes the availability of financial resources to acquire the necessary property.

Assessing the location and structure of property is of paramount importance in determining the financial condition of an enterprise.

Consequently, in order to eliminate the emergence of preconditions for financial instability, an economic entity must have a rational structure of property and constantly evaluate changes in its composition.

To characterize the presence, composition, structure of property and the changes that have occurred in them, an analytical table is compiled according to the annual balance sheet.

Table 2.2

Analysis of the composition and structure of the property of OJSC Dimskoye for 2007-2009.

Index		Deviation 2009 from 2007
	structure, %	structure, %	structure, %	absolute
Non-current assets - total
incl. fixed assets
Construction in progress
long-term financial investments
Current assets - total
incl. stocks
of which - materials
Animals being raised and fattened
Costs in work in progress
Finished products and goods for resale
accounts receivable
cash

As can be seen from Table 2.2, the total value of the enterprise’s property increased during the reporting period by 193,876 thousand rubles, or by 90.6%. This was due to an increase in the value of non-current assets by 90,743 thousand rubles, or 73.4%, and an increase in the value of mobile property by 103,133 thousand rubles, or 2.14 times.

As part of non-current assets, there was an increase in the value of all types of property except for long-term investments, the value of which did not change and amounted to 60 thousand rubles. Fixed assets showed a high increase, which may be a consequence of the development of the material and technical base of the enterprise, or the result of a revaluation of fixed assets. An increase in the cost of fixed assets is economically justified if it contributes to an increase in the volume of production and sales of products. In the reporting year, the cost of fixed assets increased by 65.5%. Despite the absolute increase in the value of fixed assets, their share in the balance sheet currency decreased from 52.0 to 6.87 percentage points.

During the analyzed period, expenses for construction in progress increased by 17,830 thousand rubles, or 2.47 times. Their share in the balance sheet currency increased by 1.68 percentage points and amounted to by the end of 2009. 7.34%. These assets do not participate in production turnover, and, therefore, under certain conditions, an increase in their amount may negatively affect the performance of the financial and economic activities of the enterprise.

At the beginning of the reporting period, the cost of mobile property amounted to 90,429 thousand rubles. During the reporting period, it increased by 103,133 thousand rubles, or 2.14 times.

The share of working capital in the value of the enterprise's assets increased by 5.2 percentage points and amounted to 47.46% at the end of the period.

The increase in current assets is due to an increase in inventories, accounts receivable and cash. The largest increase in working capital was ensured by an increase in inventories of material resources, the amount of which increased by 91,372 thousand rubles, or 2.24 times. At the end of the reporting period, their share amounted to more than a third of all property and increased by 6.1 percentage points compared to the beginning of the period.

The amount of accounts receivable increased by 8916 thousand rubles, or by 58.4%. The share of funds in settlements decreased by 1.2 percentage points. An increase in accounts receivable may be the result of an increase in trade loans issued to consumers of finished products. It may also be associated with a deferred payment of debtors, caused by the appearance of overdue debt, for the repayment of which Dimskoye OJSC is forced to raise additional funds, increasing accounts payable.

Cash increased by 2,845 thousand rubles, or 2.6 times, which has a positive effect on the solvency of the enterprise.

During the analysis of structural dynamics indicators, it was found that at the end of the reporting period, 52.5% were non-current assets and 47.5% were current assets.

In the composition of non-current assets, the largest share is occupied by fixed assets (45.2%); within current assets - inventories and costs (40.4%).

In general, the structure of economic assets of Dimskoye OJSC has improved significantly over the entire period, and the changes that have occurred can be assessed positively, although attention should be paid to the low share of cash in current assets and a significant diversion of funds into inventories and receivables.

Thus, during the reporting period there was an increase in the value of the enterprise's property. The growth rate of mobile funds turned out to be higher than non-current assets, which determines the tendency to accelerate the turnover of the most liquid assets of Dimskoye OJSC.

The reasons for the increase in the enterprise's property are established by studying changes in the composition of the sources of its formation. The receipt, acquisition, and creation of property can be carried out at the expense of own and borrowed funds, the characteristics of which are reflected in the liability side of the balance sheet.

Table 2.3

Analysis of the composition and structure of sources of funds of OJSC Dimskoye for 2007-2009.

Index		Deviation 2009 from 2007
	structure, %	structure, %	structure, %	absolute
Net worth - total
incl. authorized capital
Extra capital
Reserve capital
retained earnings
Borrowed capital - total
incl. long term duties
Loans and credits

Short-term liabilities
Loans and credits
Accounts payable
revenue of the future periods

The increase in the value of the property of JSC Dimskoye during the reporting period by 193,876 thousand rubles. (90.6%) is due to an increase in own funds by 90,905 thousand rubles. (62.2%) and borrowed funds for 102,971 thousand rubles. (2.5 times). It follows from this that the increase in the volume of financing of the enterprise’s activities by 46.9% (90905 / 193876 · 100) is provided by its own funds and by 53.1% (102971 / 193876 · 100) by borrowed capital.

The growth of own funds occurred due to reserve capital by 5532 thousand rubles. (3.78 times), the amount of retained earnings by 87,267 thousand rubles. (3.14 times).

The absolute increase in equity capital associated with an increase in production volumes positively characterizes the financial condition of the enterprise. This strengthens economic independence and financial stability, and therefore increases the reliability of the enterprise as an economic partner.

However, the share of equity in total financing decreased by 10.17 percentage points. The share of borrowed capital increased accordingly by the end of the reporting period. This is explained by the faster growth rate of borrowed funds compared to equity.

Borrowed funds are represented by long-term and short-term bank loans and accounts payable. In the reporting period, there was a tendency to increase borrowed capital in all positions, which indicates an increase in the JSC's dependence on external sources of financing, which affects fluctuations in the financial stability of the enterprise.

The main source of external financing is accounts payable, the absolute amount of which has increased by 5.35 times. Its share in the total capital amounted to 25.73%.

Business activity analysis allows you to characterize the results and efficiency of current core production activities.

An assessment of indicators characterizing the business activity of Dimskoye OJSC is presented in Table 2.4.

Table 2.4

Analysis of business activity of JSC Dimskoye for 2007-2009.

Index				Deviation 2009 from 2007
				absolute
Return of all assets
Return on fixed assets
Return on equity
Current asset turnover
Inventory turnover
Accounts receivable turnover

The asset turnover ratio characterizes the efficiency of the enterprise's use of all available resources, regardless of the sources of their formation. The value of this indicator at JSC Dimskoye decreased by 17.7%, and shows that during the analyzed period the full cycle of production and circulation is completed 0.51 times.

A decrease in capital productivity of fixed assets indicates a decrease in the efficiency of their use. For 1 rub. fixed assets in 2009 accounts for 0.99 rub. revenue, which is 20.8% less than in 2007. From a financial point of view, the equity turnover ratio determines the rate of turnover of equity capital. High values of this indicator indicate a significant excess of sales over invested capital, which, as a rule, means an increase in credit resources. In this case, the ratio of liabilities to equity capital increases, which negatively affects the financial stability and financial independence of Dimskoye OJSC. The negative dynamics of this coefficient indicates a deterioration financial situation enterprises. In this case, in order to maintain normal production activities, Dimskoye OJSC is forced to raise additional funds.

The components of current assets are inventories and accounts receivable. In this regard, to determine the reasons for the dynamics (for example, a decrease) in the overall turnover of current assets, changes in the speed and period of turnover of receivables and inventories should be analyzed.

The slowdown in inventory turnover is accompanied by the diversion of funds from economic circulation and their relatively longer deadening in inventories. Thus, the efficiency of disposal of inventories at OJSC Dimskoye decreases by 19% over the period.

Accounts receivable management involves, first of all, control over the turnover of funds in settlements. The acceleration of turnover over a number of periods is considered a positive trend. Over the period, the turnover of receivables has an unstable trend - in 2009. compared to 2007, it increases by 16.5%, and compared to 2008, it decreases by 24.8%.

Thus, a decrease in turnover ratios indicates a decrease in the business activity of Dimskoye OJSC.

An enterprise must strive not only to accelerate the movement of capital at all stages of the circulation, but also to its maximum return, which is expressed in an increase in the amount of profit per ruble of capital.

Increasing the return on capital is achieved by rational and economical use of all resources, preventing their overexpenditure and losses at all stages of the circulation. As a result, the capital will return to its original state in a larger amount, i.e. with profit.

Solvency characterizes the ability of an enterprise to timely repay payment obligations in cash.

Solvency is established based on the liquidity characteristics of the balance sheet. Balance sheet liquidity is the degree to which the enterprise's liabilities are covered by such assets, the period of conversion of which into cash corresponds to the period of repayment of liabilities.

Let's group the company's assets according to the degree of liquidity in Table 2.5.

Table 2.5

Analysis of the liquidity of the balance sheet of JSC Dimskoye for 2007-2009.

		Payment surplus or deficiency

1. The most liquid assets (A1)	1. Most urgent obligations (P1)
2. Quickly realizable assets (A2)	2. Short-term liabilities (P2)
3. Slowly selling assets (A3)	3. Long-term liabilities (P3)
4. Hard to sell assets (A4)	4. Constant liabilities (P4)

The results of calculations based on the data of the analyzed enterprise show that a comparison of the results of the groups for assets and liabilities has the following form:

A1< П1 ; А2 < П2 ; А3 >P3; A4< П4

A1< П1 ; А2 >P2; A3 > P3 ; A4< П4

Characterizing the liquidity of the balance sheet according to Table 2.5, it should be noted that in the analyzed period, JSC Dimskoye did not have absolute liquidity, since the amount of the most liquid assets is significantly less than the amount of accounts payable.

The excess of the amount of quickly realizable assets over short-term liabilities indicates that short-term liabilities can be fully repaid with funds in the calculations in 2008 and 2008.

Expected receipts from debtors by the end of the period exceed short-term bank loans and borrowed funds by 21,410 thousand rubles. But fulfilling obligations to creditors depends entirely on timely settlements with debtors.

Thus, in the reporting year the company did not have current liquidity and solvency.

Slow-moving assets (inventories and costs) exceed long-term liabilities. The fulfillment of the third inequality indicates that Dimskoe OJSC has promising liquidity, and the fourth - it has its own working capital.

Overall financial stability is characterized by the following indicators: autonomy ratio, debt capital concentration ratio, debt-to-equity ratio.

Based on the balance sheet data, the coefficients characterizing overall financial stability are presented in Table 2.6.

Table 2.6

Analysis of the overall financial stability ratios of OJSC Dimskoye for 2007-2008.

As the table data shows, the autonomy coefficient decreased slightly, but above the standard level (0.5). Its value shows that 58% of the enterprise’s property was formed from its own funds, that is, the enterprise can fully repay all its debts by selling property generated from its own sources.

The coefficient of concentration of borrowed capital shows that the share of borrowed funds is less than equity, that is, the enterprise has overall financial stability, but over the analyzed period this coefficient increases, which indicates fluctuations in the financial stability of Dimskoye OJSC.

The ratio of borrowed and equity funds shows that at the beginning of the analyzed period, for 1 ruble invested in the assets of own sources there were 46 kopecks of borrowed funds, at the end of the period - 72 kopecks. The resulting ratio indicates a slight deterioration in the financial position of the enterprise, since there is an increase in the share of borrowed funds compared to equity capital.

To determine the type of financial stability of Dimskoye OJSC, we will analyze the dynamics of the sources of funds necessary for the formation of reserves in Table 2.7.

Table 2.7

Indicators of financial stability of JSC Dimskoye for 2007-2008.

Index				Deviation 2009 from 2007 (+,-)

1. Sources of own funds
2. Non-current assets
3. Availability of own working capital (clause 1 - clause 2)
4. Long-term loans and borrowings
5. Availability of own and long-term borrowed funds for the formation of reserves (clause 3 + clause 4)
6. Short-term loans and borrowings
7. The total amount of the main sources of funds to cover inventories and costs (clause 5 + clause 6)
8. Inventories and costs
9. Surplus (+), lack (-) of own working capital to cover inventories and costs (clause 3 - clause 8)
10. Surplus (+), shortage (-) of own working capital and long-term borrowed funds to cover inventories and costs (clause 5 - clause 8)
11. Surplus (+), deficiency (-) of the total amount of sources of funds to cover inventories and costs (clause 7 - clause 8)
12. Three-component indicator of the type of financial stability

As the table data shows, both at the beginning and at the end of the analyzed period, the enterprise has a lack of its own and attracted sources of funds for the formation of reserves and therefore belongs to the third type of financial stability and has an unstable financial condition, associated with a violation of solvency, but in which it is still possible to restore balance by replenishing sources of own funds (reducing accounts receivable, accelerating inventory turnover).

The main directions for improving the financial results of the enterprise. Reserves for improving financial performance

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