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In a market economy, the role and importance of timely and high-quality analysis increases significantly financial condition enterprise and finding ways to strengthen it, increase the financial stability of the enterprise. Finding ways to improve financial condition is one of the main tasks facing the management of any company.

The financial condition of an enterprise must be systematically and comprehensively assessed using available types and methods of analysis and a set of various indicators. This allows you to: 1) critically evaluate the financial results of the enterprise and its financial condition both statically for the analyzed period and dynamically over a number of periods; 2) identify “painful” points in the financial activities of the enterprise; 3) determine ways to use financial resources more efficiently and allocate them rationally.

Thus, an analysis of the financial condition of an enterprise shows in which specific areas work needs to be done to improve it. In accordance with the results of the analysis, it is possible to answer the question of what are the most important ways to improve the financial condition of an enterprise in a specific period of its activity.

One of the main ways to improve the financial condition of an enterprise is to reduce the cost of products produced by the enterprise. This parameter can be improved both by optimizing supplies and by changing the technological and business processes adopted at the enterprise.

Another way to improve the financial condition of an enterprise is to increase the efficiency of enterprise management, as well as the introduction various types staff incentives. This method of improving the financial condition of an enterprise does not require significant restructuring; as a rule, optimization of business processes within an enterprise can be achieved by introducing a system that allows you to automate the setting of tasks for personnel, as well as the use of various methods of material incentives, which are based on assessing the contribution of each employee to the overall the result of the commercial activities of the enterprise.

Also, one of the ways to improve the financial condition of an enterprise is the release of new products or the provision of new services to consumers. The development of an enterprise development strategy, as well as market assessment and development of proposals for the development of new types of products can be carried out either directly by the company’s employees or by specialists from various consulting companies.

To improve the financial condition of the enterprise, it is also necessary to introduce strict financial control over the expenditure of the company's funds, as well as try to obtain money from enterprises that have significant debts to this enterprise.

The management of the enterprise should also not forget about the need to replace equipment and the possibility of introducing new technologies that will allow them to produce goods or provide services that are more popular in the market. In any case, when looking for ways to improve the financial condition of an enterprise, it is necessary to carefully evaluate the costs required to implement these measures, as well as the possible increase in profit that the enterprise can receive.

An analysis of the financial condition of Rubezhevichi OJSC showed that, like any enterprise, it has certain problems, therefore, it is necessary to look for ways to improve its financial condition.

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In the Republic of Belarus, assessing the financial condition of an enterprise is regulated by the Instruction on the procedure for calculating solvency ratios and conducting an analysis of the financial condition and solvency of business entities, approved by Resolution of the Ministry of Finance of the Republic of Belarus and the Ministry of Economy of the Republic of Belarus dated December 27, 2011, No. 140/206 (hereinafter - Instructions).

The estimated indicators proposed by the Instructions are quite simply calculated on the basis of available financial reporting data. However, despite the simplicity of the analysis itself and the transparency of its information base, many scientists and practitioners point out the imperfection of the methodology used.

Let us comment on its main disadvantages:

When calculating indicators for assessing financial condition, not all forms of financial statements are used, but only the balance sheet and profit and loss account. This leads to the fact that when determining the most important parameters of an enterprise’s activities, the indicators of cash inflow and outflow for current financial investment activities reflected in the cash flow statement are not taken into account. There is also no analysis of the elements of the enterprise’s own capital, the sources of their formation, which are given in the report on changes in capital.

the balance sheet of an enterprise does not reflect the real state of affairs in assets, capital and liabilities due to the unreliability of accounting and reporting data (in addition to errors and intentional distortions, this can also be caused by the peculiarities of accounting and valuation - revaluations different ways, reflection of different assets at real price or at actual cost, retention of missing assets in accounting due to failure to conduct an inventory);

it is possible to “artificially” change balance sheet items in order to improve the financial condition of the enterprise. For example, this provision is relevant in relation to the classification of assets and liabilities of an enterprise into long-term and short-term (accounts receivable, financial investments, other liabilities). Moving certain indicators from short-term to long-term and, conversely, by concluding additional agreements to contracts allows in some cases to improve indicators of the financial condition of enterprises, calculated in accordance with the Instructions. This is most possible in a group of interconnected companies, where mutual settlements

between affiliated persons are of a special nature.

lack of economic rationality when calculating the coefficient current liquidity. With an increase in the balances of unsold products, work in progress, goods shipped, short-term receivables, inventories, raw materials, supplies, and so on, solvency, determined by the current liquidity ratio on the balance sheet, will improve. Therefore, as the balances grow current assets The current liquidity ratio will not only reach the standard, but may increase several times. This is practically what happens. As the balances of current assets decrease, this ratio will be less than 1. This is for enterprises that do not have excess balances of finished products, work in progress and overdue accounts receivable. good indicator. Even if it is cash balances. The latter should also be in circulation, which increases the business activity of the organization.

indicators for assessing financial condition are considered in isolation, without connection with the property status, and also without taking into account the dynamics of their changes and comparison with similar companies in the industry;

the calculated indicators do not explain the reasons for the current situation and the observed trends in the financial condition of the enterprise.

Consequently, the shortcomings of the existing methodology for assessing the financial condition of an enterprise are significant. To solve the above problems it is necessary:

1) to calculate solvency indicators, use not only the balance sheet and profit and loss statement, but also the cash flow statement, statement of changes in capital;

2) formulate indicators of the financial condition of the enterprise only in the interrelation and interdependence of the forms of financial statements - this approach to assessing the financial condition complies with the principles of IFRS (International Financial Reporting Standards);

3) supplement the existing methodology for assessing the financial condition of an enterprise with other indicators characterizing the liquidity of the enterprise (quick, intermediate liquidity ratios and others), its solvency (including the dynamics of the enterprise’s cash flows), financial stability (financial leverage ratio and others), business activity ( turnover indicators of receivables and payables, “ Golden Rule economics of enterprise" and others);

4) clarify the list of profitability indicators that must be calculated when assessing the financial condition of the enterprise;

5) calculate the current liquidity ratio taking into account the turnover of working capital in circulation and accounts payable.

Thus, the assessment of the financial condition of an enterprise should be of a comprehensive, systemic nature, taking into account all aspects of financial and economic activity enterprises, while making full use of the entire available information analysis base. This will make it possible to more accurately and reliably reflect the financial condition of enterprises, identify the threat of their bankruptcy at an earlier stage, and also reduce financial risks when carrying out various financial and credit operations.

Finding ways to improve the financial condition of an enterprise is one of the main tasks facing the management of any company. Currently, experts identify several ways to “improve” the financial condition of a company.

One of the main ways to improve the financial condition of an enterprise is to reduce the cost of products produced by the company. This parameter can be improved both by optimizing supplies and by changing the technological and business processes adopted at the enterprise.

Another way to improve the financial condition of an enterprise is to increase the efficiency of company management, as well as the introduction of various types of personnel incentives. This method of improving the financial condition of an enterprise does not require a significant restructuring of the company; as a rule, optimization of business processes within the company can be achieved by introducing a system that allows you to automate the setting of tasks for personnel, as well as the use of various methods of material incentives, which are based on assessing the contribution of each employee to the overall result of the enterprise's commercial activities.

To improve the financial condition of an enterprise, it is also necessary to introduce strict financial control over the expenditure of company funds, as well as try to obtain money from enterprises that have significant debts to your company. In addition, in some cases it will be necessary to carry out specialized advertising companies, as well as more active promotion of the company’s products and services to various markets.

Thus, we can conclude that the assessment of the financial condition of an enterprise should be of a comprehensive, systemic nature, taking into account all aspects of the financial and economic activities of the enterprise, while making full use of the entire available information analysis base. This will make it possible to more accurately and reliably reflect the financial condition of enterprises, identify the threat of their bankruptcy at an earlier stage, and also reduce financial risks when carrying out various financial and credit operations.

A feature of modern market relations is the increasing influence of such factors as the variability of conditions of the external and internal financial environment, fierce competition for resources and areas of their application, the need for rapid technological changes, continuous innovations in tax legislation, changing interest rates and exchange rates.

Under these conditions, financial managers of an enterprise are faced with many questions: What should be the strategy and tactics of a modern enterprise in the context of the transition to a market? How to rationally organize the financial activities of an enterprise for its further “prosperity”? How to improve the efficiency of financial resource management? How to determine the indicators of economic activity that ensure a stable financial position of the enterprise?

An objective analysis of the financial condition of the enterprise will help answer these and other questions. The financial analysis today must focus on changing market conditions, government policy in the field of reform and development accounting and audit, provide practical directions for improving the financial condition of enterprises and overcoming crisis situations, incl. bankruptcy.

The problem of bankruptcy of many existing enterprises in various sectors of the economy and fields of activity is becoming quite relevant at this point in time. With the transition of the Russian Federation to a market economy and private property, a need arose for the institution of insolvency (bankruptcy) in order to reduce the risk of creditors, and if their losses are inevitable, then they should be distributed in the most equitable manner. For this purpose, on November 19, 1992, the Law “On the Insolvency (Bankruptcy) of Enterprises” was adopted.

Insolvency, the crisis of the economy and legal business, the existence of invisible enterprises that are listed in the register but have long had neither management nor employees, arrears of wages, gaps in legislation - have given rise to a shadow solution to the problem of “liberation from exorbitant debts” and a situation of bankruptcy practically all manufacturing enterprises.

The new law “On Insolvency (Bankruptcy)”, which incorporates the best of Western analogues and brings it to modern Russian reality, was adopted with a view to decades and is designed to help stimulate solvency and improve the health of our economy.

The Federal Law “On Insolvency (Bankruptcy)” came into force on the territory of the Russian Federation on March 1, 1998. It differs significantly from the previous Law of the Russian Federation “On the Insolvency (Bankruptcy) of Enterprises” and includes a number of provisions that meet the needs of the developing market.

Hundreds of banks and other financial companies, thousands of manufacturing and commercial firms, especially small and medium-sized ones, have already ceased to exist. The analysis showed that main reason This turned out to be their inept management, i.e., the low qualifications of the majority of managers at both middle and senior levels.

Production is a complex process in terms of technology, organization, and combination of various types of activities. A leader cannot, and should not, take upon himself what others can do much better. The manager must first of all show enterprise in the selection of personnel, he must surround himself with professionals, trust more competent specialists - in production issues, in marketing research, financial planning, etc. Keep for himself only what is directly within the competence of the organizer. Organizing means defining a goal, knowing and soberly assessing available resources and being able to use them to achieve goals. To organize means to be able to formulate a task, bring it to the immediate attention of the executor and control its execution. To organize means to be able to make decisions, to be able to distribute duties and responsibilities. To organize means to plan, manage, analyze. Intuition and even talent alone are not enough here; knowledge is needed.

The increased management requirements today are due to the increase in the size of enterprises, the complexity of technology, and the need to master the most modern management skills. All decisions on financial, organizational and other issues are now prepared and developed by professionals in the field of management organization, who also monitor the implementation of the plan.

Specific ways for an enterprise to emerge from a financial crisis depend on the reasons for its insolvency. Since most enterprises go bankrupt due to ineffective government policy, one of the ways to financially improve organizations should be governmental support. But due to the shortage state budget Not all businesses can count on this assistance.

An important source of financial recovery for an enterprise is factoring, i.e. assignment to the bank of the right to claim receivables, or an assignment agreement under which JSC Gorinsky KLPH cedes its claim to debtors to the bank as security for loan repayment

If OJSC “Gorinsky KLPH” intends not only to survive, but also to be active in the development of its production, changing the principles of managing the enterprise’s activities, then it needs to reconsider the overall management structure of the enterprise. The business entity in question is recommended to create a management structure in which the basis for the right to make decisions is competence, and not the occupation of an official position. In addition, the enterprise needs to resolve the issue of internal dependence on the incompetent decisions of JSC Flora, which lead to a deterioration in the financial condition of the enterprise.

Next, the enterprise in the future needs to consider the issue of updating its material and technical base. This goal can be helped by leasing, which does not require a full lump sum payment for the leased property and serves as a type of investment. The use of accelerated depreciation for leasing operations allows you to quickly update equipment and carry out technical re-equipment of production.

Great assistance in identifying reserves for improving the financial condition of OJSC “Gorinsky KLPH” can be provided by marketing analysis to study supply and demand, sales markets and the formation on this basis of the optimal range and structure of product production.

Federal Agency for Education

COURSE WORK

discipline: "Finance"

on the topic: “Assessment of the financial condition of the organization

and ways to improve it

(using the example of OJSC “Plant “Chuvashkabel”)”

Performed: ________________

___________________________

Scientific adviser:

___________________________

The market economy in the Russian Federation is developing quite actively, and along with it, competition has gained strength as the main mechanism for regulating the economic process. The competitiveness of an economic entity can only be ensured by proper management of the movement of financial resources and capital at its disposal. The relevance of the topic of the work lies in the fact that the process of financial management of an organization is immediately preceded by an assessment of its financial condition in order to identify promising areas of development.

The process of functioning of any enterprise is cyclical. Within one cycle, the following are carried out: attracting the necessary resources, combining them in the production process, selling manufactured products and obtaining final financial results. In a market economy, there is a shift in priorities in the objects and targets of the management system of an economic entity.

Effective management of an organization involves optimizing the resource potential of the enterprise. In this situation, the importance increases sharply effective management financial resources. How efficiently and expediently they are transformed into fixed and working capital, as well as incentives work force, depends financial well-being the enterprise as a whole, its owners and employees. Financial resources in these conditions become of paramount importance, since this is the only type of enterprise resource that can be transformed directly and with a minimum time lag into any other type of resource. To one degree or another, the role of financial resources is important at all levels of management (strategic, tactical, operational), however special meaning it gains in terms of enterprise development strategy. Thus, financial management (financial management) as one of the main functions of the management apparatus acquires a key role in a market economy.

The purpose of this work is to explore management process assessing the financial condition of the organization and developing directions for its improvement.

As part of this goal, the following tasks are set:

1. Study of the theoretical basis for assessing the financial condition of an enterprise.

2. Conducting an analysis of the financial condition of a specific organization with the calculation of the main indicators of its financial and economic activities.

3. Summarizing the results of the analysis, formulating recommendations for improving the financial condition of the organization.

The object of the study is OJSC Chuvashkabel Plant. The information base for writing the work was the reporting of the enterprise for 2004-2005, as well as teaching aids edited by Kovalev V.V., Lyubushin N.P. etc., publications in thematic journals.

The work consists of three chapters according to the assigned tasks. In conclusion, the main conclusions of the work are formulated, a list of references is given, and the enterprise’s reporting is included in the appendices.

Chapter 1. Theoretical foundations of managing the financial condition of an enterprise

1.1. The essence of enterprise finance

Research by scientists economic essence finance, identifying the specific features of this category allows us to give the following definition. Finance is a set of monetary relations that arise in the process of distribution and redistribution of the value of the gross social product and part of the national wealth in connection with the formation of cash income and savings among business entities and the state and their use for expanded reproduction, financial incentives workers, meeting social and other needs of society.

Finances of business entities are the main element financial system and represent monetary relations associated with the formation and distribution of financial resources. Financial resources are generated from such sources as: own and equivalent funds (share capital, share contributions, profit from core activities, targeted income, etc.); mobilized in the financial market as a result of transactions with securities; received by way of redistribution (budget subsidies, insurance compensation, etc.).

The finances of a business entity perform three main functions:

1) formation, maintenance optimal structure and building production capacity;

2) ensuring current financial and economic activities;

3) ensuring the participation of an economic entity in the implementation of social policy.

Any business begins by asking and answering the following three key questions: 1) what should be the size and optimal composition of the enterprise’s assets to achieve the goals and objectives set for the enterprise?; 2) where to find sources of financing and what should be their optimal composition?; 3) how to organize current and future management of financial activities, ensuring solvency and financial stability of the enterprise?

These issues are resolved within the framework of financial management, which is one of the key subsystems common system enterprise management.

1.2. Enterprise financial management system

The organizational structure of the financial management system of an economic entity, as well as its personnel composition, can be built in various ways, depending on the size of the enterprise and the type of its activity. For large company the most characteristic is isolation special service, led by the vice president of finance (CFO) and typically including accounting and finance departments.

In small enterprises the role financial director usually does Chief Accountant. Job financial manager either forms part of the work of the top management of the company, or is associated with providing him with analytical information necessary and useful for making management decisions financial in nature. The financial manager is constantly faced with the problem of choosing sources of financing. Its peculiarity also lies in the fact that servicing one or another source costs the enterprise differently. Each source of financing has its own price, and this price can also be stochastic in nature.

Financial decisions are only as accurate as the information base is good and objective. The level of objectivity depends on the extent to which the capital market corresponds to an efficient market. This emphasizes the exceptional importance of the functions performed by the financial manager. Regardless organizational structure the company's financial manager is responsible for the analysis financial problems, making decisions in some cases or making recommendations to senior management.

The logic for identifying areas of activity of a financial manager is closely related to the structure of the balance sheet, as the main reporting form reflecting the property and financial condition of the enterprise (Fig. 1).

Fig.1. Key areas of activity of a financial manager

The identified areas of activity simultaneously determine the main tasks facing the manager. The composition of these tasks can be detailed as follows.

Within the first direction, a general assessment is carried out:

Enterprise assets and sources of their formation;

The magnitude and composition of resources necessary to maintain the achieved economic potential of the enterprise and expand its activities;

Sources of additional financing;

Systems for monitoring the status and efficiency of use of financial resources.

The second direction involves a detailed assessment:

The volume of required financial resources;

Forms of their presentation (long-term or short-term loan, cash);

Degree of availability and time of presentation (availability of financial resources may be determined by the terms of the contract; finance must be available in the right amount and at the right time);

The cost of owning this type of resource (interest rates, other formal and informal conditions for the provision of this source of funds);

The risk associated with this source of funds.

The third direction involves the analysis and assessment of long-term and short-term investment decisions:

Optimal transformation of financial resources into other types of resources (material, labor, money);

The feasibility and efficiency of investments in fixed assets, their composition and structure;

Optimal working capital;

Efficiency of financial investments.

Decision-making using the given estimates is carried out as a result of the analysis alternative solutions, taking into account the compromise between the requirements of liquidity, financial stability and profitability.

Let us formulate a system of goals that define the characteristics of successful financial management:

Survival of the company in a competitive environment;

Avoiding bankruptcy and major financial failures;

Maximizing the “price” of the company;

Acceptable growth rates of the company’s economic potential;

Increase in production and sales volumes;

Profit maximization;

Minimizing costs.

The priority of a particular goal is determined by the enterprise itself based on the current situation.

The basis of the information support of the financial management system is any information of a financial nature: accounting reports; messages from financial authorities; information from banking system authorities; information on commodity, stock and currency exchanges; other information.

1.3. Methodological basis for assessing the financial condition of an enterprise

The transition to a market economy, the organization of production with various forms of ownership and management required a more thorough and systematic (integrated) approach to the analysis of the financial condition of the enterprise.

Financial analysis of an enterprise includes analysis of: financial stability; balance sheet liquidity; financial results; profitability ratios and business activity.

The analysis is carried out on the basis of a number of economic indicators. The set of economic indicators characterizing the financial position of the enterprise and the company’s activity depends on the depth of the research; however, most analysis techniques financial situation involves the calculation of the following groups of indicators: financial stability, solvency, business activity, profitability.

The result of the preliminary analysis is a general assessment of the financial condition, as well as a determination of the solvency and satisfactory structure of the balance sheet of the enterprise. To identify the causes of the current financial situation, prospects and specific ways out of it, a detailed, in-depth and comprehensive analysis activities of the enterprise. The dynamics of the balance sheet currency, the structure of liabilities, the sources of the formation of working capital and their structure, fixed assets and other non-current assets, and the results of the financial activity of the enterprise are analyzed.

When analyzing the structure of liabilities, the following goals are realized:

a) the ratio between the borrowed and own sources of funds of the enterprise is determined;

b) the security of the enterprise’s reserves and costs from its own sources is revealed, as well as taking into account long-term and then short-term loans; this analysis gives the most complete picture of the availability of inventories and costs from own sources of financing;

c) the reasons for the formation of accounts payable (depending and independent of the enterprise), its share in the enterprise’s liabilities, dynamics, structure, and share of overdue debt are considered.

The analysis of the structure of liabilities is carried out in conjunction with the analysis of the sources of the formation of working capital. When conducting an analysis, a long-term loan can be equated to the enterprise’s own sources, since it is used mainly for the formation of fixed assets. In addition, other sources of working capital formation (deferred income, reserves for future expenses and payments, reserves for doubtful debts) with certain conditions should also be taken into account as part of your own sources.

By the type of financial stability and its changes, one can judge the reliability of the enterprise in terms of solvency. In accordance with the indicator of the provision of reserves and costs with own and borrowed sources, they distinguish following types financial stability:

1) absolute stability of financial condition - own working capital fully covers reserves and costs; is extremely rare;

2) normally stable financial condition - inventories and costs are provided by the amount of own working capital and short-term borrowed sources;

3) unstable financial condition - inventories and costs are provided at the expense of own working capital, long-term borrowed sources and short-term loans and borrowings, that is, at the expense of all the main sources of formation of inventories and costs;

4) crisis financial condition - reserves and costs are not provided by the sources of their formation; the company is on the verge of bankruptcy.

Analysis of balance sheet liquidity allows you to assess the creditworthiness of an enterprise, that is, the ability to pay off its obligations. Liquidity is determined by the coverage of the enterprise's obligations with its assets, the period of transformation of which into money corresponds to the period of repayment of obligations. The most liquid assets (cash and securities of the enterprise) must be greater than or equal to the most urgent liabilities (accounts payable); quickly realizable assets (accounts receivable and other assets) - greater than or equal to short-term liabilities; slow-moving assets (inventories and costs excluding deferred expenses) - greater than or equal to long-term liabilities; hard-to-realize assets (intangible assets, fixed assets, unfinished capital investments and equipment for installation) - less than or equal to permanent liabilities (sources of equity).

If these conditions are met, the balance is considered absolutely liquid. If at least one of the conditions is not met, the liquidity of the balance sheet differs to a greater or lesser extent from absolute. In this case, the lack of funds in one group of assets is compensated by their surplus in another group in terms of value. It should be borne in mind that in a real situation, less liquid assets cannot replace more liquid ones.

The primary tasks of analyzing the financial results of an enterprise are assessments:

Dynamics of profit indicators (validity of formation and distribution of its actual value, identification and measurement of action various factors on profit, assessment of possible reserves for further profit growth);

Business activity and profitability of the enterprise.

Thus, a schematic analysis of the financial condition of the enterprise can be presented as follows (Fig. 2).

Initial data for analyzing financial condition.	Financial indicators: enterprise balance sheet, report on financial results and their use.	Financial condition assessment
Consistent assessment of financial condition.	Dynamics of absolute and specific financial indicators of the enterprise.
Analysis of financial stability.	Type of financial stability.
Analysis of liquidity of the enterprise balance sheet.	Assessment of current and future liquidity. Liquidity ratio values.
Analysis of financial ratios.	Absolute values of coefficients over time and their regulatory limitations.
Analysis of financial results, profitability and business activity of the enterprise.	Dynamics of profit indicators, profitability and business activity for the period under review.

Rice. 2. Scheme of analysis of the financial condition of the enterprise.

Analysis of financial condition is carried out using the following basic techniques: comparison and grouping, chain substitutions, differences. In some cases, methods of economic and mathematical modeling (regression analysis, correlation analysis) can be used.

The method of comparison is to compare the financial indicators of the reporting period with their planned values and with the indicators of the previous period. In order for the comparison results to give correct conclusions analysis, it is necessary to ensure the comparability of the compared indicators, that is, their homogeneity.

The method of summary and grouping is to combine information materials into analytical tables. This makes it possible to make the necessary comparisons and conclusions. Analytical groupings allow, in the process of analysis, to identify the relationship between various economic phenomena and indicators; determine the influence of the most significant factors and discover certain patterns and trends in the development of financial processes.

The method of chain substitutions is used to calculate the magnitude of the influence of individual factors in the overall complex of their impact on the level of the aggregate financial indicator. This technique is used in cases where the relationship between indicators can be expressed mathematically in the form functional dependence. The essence of the method of chain substitutions is that, sequentially replacing each reporting indicator with a basic one, all other indicators are considered as unchanged. This replacement allows us to determine the degree of influence of each factor on the overall financial indicator. The use of chain substitutions requires a strict sequence of determining the influence of individual factors. This sequence consists in the fact that first of all the degree of influence of quantitative indicators is determined.

The method of accepting differences is that the absolute or relative difference (deviation from the basic indicator) for the factors being studied and the aggregate financial indicator is preliminarily determined. This deviation (difference) for each factor is then multiplied by the absolute value of other interrelated factors. The reception of differences and the reception of chain substitutions are a type of technique called “elimination”. Elimination is a logical technique used in the study of functional connections, in which the influence of one factor is consistently isolated and the influence of all others is excluded.

Chapter 2. Assessment of the financial condition of OJSC Chuvashkabel Plant

2.1. Organizational and economic characteristics of the enterprise’s activities

There are currently more than 150 manufacturers of cable and wire products in Russia. About 95% of the products produced in Russia come from 42 enterprises that are members of the Electrocable Association. The share of Chuvashkabel Plant OJSC in Russia's production of cable products by weight of copper is about 0.8%.

OJSC Chuvashkabel Plant produces products and services in 22 nomenclature groups, of which 20 are cable and wire products (37 nomenclature groups are distinguished according to the industry nomenclature). More than 95% of production volumes fall on 8 main product groups.

The governing bodies of the company are:

General Meeting of Shareholders;

Board of Directors;

Sole executive body ( CEO);

Collegial executive body (board).

Control over the financial and economic activities of the JSC is carried out by the audit commission.

OJSC Chuvashkabel Plant supplies cable and wire products to consumers working in the following industries: construction, informatization, automotive industry, electrical industry, mechanical engineering, oil industry, geological exploration.

The main activities of JSC Chuvashkabel Plant:

Production of insulated wires and cables.

Providing installation, repair, maintenance and rewinding of electric motors, generators and transformers.

Production of other plastic products not included in other groups.

Printing activities not included in other categories.

Electricity distribution.

Steam distribution and hot water(thermal energy).

Water distribution.

Activities of canteens at enterprises and institutions.

Activities of specialized automobile freight transport.

Activities of road freight non-specialized transport.

Activities in the field of telephone communications.

Research and development in the field of natural and technical sciences.

Tests and analysis physical properties materials and substances: testing and analysis of physical properties (strength, ductility, electrical conductivity, radioactivity) of materials (metals, plastics, fabrics, wood, glass, concrete, etc.); Tensile, hardness, resistance, fatigue and high temperature effect tests.

Certification of products and services.

Removal and processing solid waste.

The priority directions of development of the enterprise are:

Maintaining market share in terms of production volumes of the main product groups.

Increasing the share of import-substituting and high-tech products (on-board cables and wires, heat-resistant installation wires, radio frequency cables with improved consumer properties, heating cables for various cable heating systems, lead wires electric machines).

Technical re-equipment of production in order to increase the efficiency of resource use.

Maximum use of market demand for coils with wire communication lines (PLC) in order to obtain funds for the technical re-equipment of production.

Increasing the operational manageability of the enterprise.

The main product groups of OJSC Chuvashkabel Plant (about 85% of production volumes) are:

Winding wires with enamel insulation;

Cables and wires, installation and onboard;

Automotive wires;

Radio frequency cables.

For the analyzed period 2004-2005. There was a decrease in the growth rate of production, which was caused by:

The general decrease in the growth rate of products for enterprises in the cable industry in Russia:

A significant decrease in production volumes of winding wires with enamel insulation (associated with a decrease in price competitiveness due to increasing copper prices, market prices for products, especially in the range of medium and large diameters do not provide the necessary profitability of sales).

In 2004, the technical re-equipment of the production of wires and cables with plastic insulation continued; at the end of the year, 5 units of modern twisting equipment manufactured by SAMP were delivered and launched.

In 2003 – 2004 There was an increase in demand for coils with PLC, associated with the conclusion of contracts by consumer enterprises of these products with foreign customers.

Work continued on the introduction of new enterprise management technologies:

Modernizing Information system enterprise management "IT - enterprise", which will increase the efficiency of planning and accounting, in accordance with international standards;

The technology of strategic planning using BSC technology is being developed.

2.2. Production efficiency of JSC Chuvashkabel Plant

Table 1 shows the dynamics of indicators labor productivity and capital productivity. From the table it follows that the period 2001-2005. was accompanied by an increase in labor productivity, with the greatest increase observed in 2002, then the growth rate decreased and amounted to an insignificant amount in 2005.

Capital productivity for the entire period increased from 287 rubles. up to 428 rub. An increase was observed in 2002 and 2004, and a decrease in 2003 and 2005.

Table 1.

Dynamics of labor productivity and capital productivity

Indicator name
Labor productivity, rub./person.					labor productivity,%
return on assets rub. prod./rub. basic Wed
Capital productivity growth rate, %

Table 2 shows the dynamics of the production cost structure of OJSC Chuvashkabel.

Table 2.

Production cost structure

Name of cost item
Raw materials, %
Purchased components, semi-finished products, %
Works and services of a production nature performed by third parties, %
Fuel, %
Energy, %

Costs for wages, %
Interest on loans, %
Rent, %
Unified social tax, %
Depreciation of fixed assets, %
Taxes included in the cost of production, %
Other costs,%: Depreciation by intangible assets, % Rewards for innovation proposals, % Mandatory insurance payments, % Entertainment expenses, % Daily allowance and allowance, %
Total: costs of production and sale of products (works, services) (cost), %

It follows from the table that raw materials and supplies predominate in the structure of production costs, but their share decreases from 73 to 65%. The share of taxes included in the cost of production (from 1.3 to 0.4%) and fuel (from 1.1 to 0.2%) is also reduced. The share of work and services from third-party organizations increased (from 1.5 to 5.1%), and labor costs (from 11.8 to 15.7%). The article “Rent” appeared.

To replace morally and physically worn-out equipment, the Chuvashkabel Plant is carrying out systematic technical re-equipment of production facilities for the main types of products.

The production of winding wires with insulation in the diameter range of 0.05 – 2.00 mm has been technically re-equipped. Equipment manufactured by DTM, Italy and MAG. Austria allowed us to develop products with improved consumer properties

A production line has been introduced. SAMP, Italy for the production of radio frequency cables with physically foamed insulation.

In 2005, high-speed torsion equipment and an extrusion line produced by SAMP, Italy were introduced into production for the manufacture of products from flexible copper cores and round power cables, as well as expansion of the range in terms of increasing the cross-sections of manufactured products.

In 2006-2007 It is planned to organize the production of power cables and wires. Contracts for the supply of 9 units of equipment were signed with Maillefer and O.M Lesmo.

To finance investment projects, we use our own funds and purchase equipment on lease.

2.3. Analysis of the balance sheet structure and its liquidity

When analyzing the structure of the balance sheet, first of all, it is necessary to evaluate the results of the asset and liability sections of the balance sheet. As is known, the assets of the balance sheet show in general monetary terms the state and allocation of the enterprise’s funds, while the liabilities show the sources of education or the intended purpose of these funds. For the period 2004-2005. the balance sheet currency increased by 38%, of which by 19% during 2004 and by 16% during 2005.

Table 3.

Balance sheet structure analysis

Indicator name			At the beginning of the period	% to balance currency	At the end of the period	% to balance currency	Change, RUR	% to balance currency
Assets
*Current*
	Absolute liquidity assets
		Cash
		Short-term financial investments
	High liquidity assets
		Accounts receivable
		Other highly liquid assets
	Low liquidity assets
		Productive reserves and costs
		Goods and finished products
		VAT on purchased assets
		Other low liquidity assets
*Permanent*
	Hard to sell assets
		Fixed assets
		Other hard-to-sell assets
Total assets
Liabilities
*Borrowed funds*
	Short-term liabilities
		Current accounts payable
		Other current liabilities
	Medium-term liabilities
		Short-term loans
		Short-term loans
	Long-term liabilities
		Long-term loans
		Long-term loans
		Other long-term liabilities
*Own funds*
	Permanent liabilities
		Capital and reserves
		Profit (loss) of the reporting period
Total liabilities

From Table 3 it follows that in 2005, in the structure of assets, the largest share was occupied by current (current) assets (62% at the beginning of the year and 66% at the end). Non-current assets amounted to 38% at the beginning of the year and 34% at the end of the year, respectively.

In the structure of current assets, the largest share was occupied by low liquidity assets (30 and 26% in the total structure of assets, respectively). High liquidity assets decreased slightly – by 4 percentage points from 17% to 14%.

The share of absolute liquidity assets has increased significantly (from 14% to 26% in the total structure of assets).

In the structure of liabilities, one can note the predominant role of own funds, the share of which increased by 3 percentage points from 85% to 88%. Basically, the source of financial resources of Chuvashkabel OJSC is formed from retained earnings of previous years and the reporting period - at the beginning of 2005 this figure was 55%, at the end - 63%.

Specific gravity short-term liabilities are reduced from 15 to 11%. There are no medium-term liabilities in the balance sheet structure; as for long-term debt, its weight is insignificant, although it increases by the end of the year by 1.06 percentage points and amounts to 1.11%.

For a better assessment of liquidity, an analysis based on relative indicators liquidity, which are shown in table 3. Liquidity determines the ability or inability of an enterprise to pay off its short-term obligations.

For the period 2001-2005. liquidity indicators were normal or exceeded standard values. Thus, in 2005, there was a significant excess in the current liquidity indicator (6.37 with a standard of 2), the short-term liquidity ratio (3.84 with a standard of 1) and the absolute liquidity ratio (1.02 with a standard of 0.2 - 0.7 ). By the end of the period, the company has a large liquidity reserve.

Table 4.

Indicators of the balance sheet structure and its liquidity


Net working capital, thousand rubles.	Working capital – Current liabilities
Financial dependency ratio	Borrowed funds / Funds, total
Own funds autonomy ratio	Own funds / Funds, total
Provision of inventories with own working capital	Inventories/Net Working Capital
Current liquidity ratio	Working capital - Accounts receivable/Current liabilities
Urgent liquidity ratio	Cash + Short-term financial investments/short-term liabilities
Absolute liquidity ratio	Cash/Current liabilities

Table 5 shows an analysis of balance sheet liquidity for the main groups of assets and liabilities according to the degree of their liquidity. The balance is considered absolutely liquid if the following conditions are met: A1>=P1, A2>=P2, A3>=P3, A4<=П4.

Table 5.

Balance sheet liquidity analysis

Assets			Passive			Payment surplus (+) or deficiency (-)		% coverage of obligations
Group	At the beginning of the period	At the end of the period	Group	At the beginning of the period	At the end of the period	At the beginning of the period	At the end of the period	At the beginning of the period	At the end of the period

From Table 5 it follows that although the balance sheet of Chuvashkabel OJSC in 2005 cannot be called absolutely liquid, the structure of the balance sheet from the point of view of liquidity can still be considered satisfactory.

The stock of sources of equity capital represents the stock of financial stability of the enterprise, provided that its equity capital exceeds its borrowed capital. The financial stability of an economic entity is assessed by the ratio of equity and borrowed capital.

From Table 3 it follows that the share of own funds during the period increased from 78% to 88%. The financial position of the enterprise is stable. The company practically does not need short-term lending. Own funds fully cover supplies and costs.

2.4. Financial stability and solvency of the enterprise

Analyzing solvency, the state of liabilities is compared with the state of assets. This makes it possible to assess the extent to which the organization is ready to repay its debts. The task of financial stability analysis is to assess the size and structure of assets and liabilities. This is necessary to answer the questions: how independent is the organization from a financial point of view, is the level of this independence increasing or decreasing, and whether the state of its assets and liabilities meets the objectives of financial and economic activity. Indicators that characterize independence for each element of assets and for property as a whole make it possible to determine whether the analyzed organization is financially stable enough.

It is necessary to determine what absolute indicators reflect the essence of financial stability.

Long-term liabilities (credits and borrowings) and equity capital are used primarily for the acquisition of fixed assets, capital investments and other non-current assets. In order for the solvency condition to be met, it is necessary that cash and settlement funds, as well as tangible current assets, cover short-term liabilities.

A general indicator of financial stability is the surplus or shortage of sources of funds for the formation of reserves and costs, which is defined as the difference in the value of sources of funds and the value of reserves and costs.

Table 6 shows indicators of financial stability and solvency. From the data in the table it follows that the bulk of liabilities (up to 100%) are short-term debt, but the company can afford this because it has a large liquidity reserve.

Table 6.

Indicators of financial stability and solvency

Indicator name
Ratio of the amount of short-term liabilities to capital and reserves, %
Coverage of debt service payments, rub.
Accounts receivable turnover, times
Overdue debt level, %
Share of dividends in profit, %
Depreciation to revenue, %

Accounts receivable turnover increased from 6.2 to 9.8 times. In 2003, the level of overdue accounts receivable increased sharply (up to 57%), in 2005 it decreased to the 2002 level - 17%.

Until 2003, in the company's analytical reports, accounts receivable were not divided into short-term and long-term. Since 2003, short-term debt has been 83, 86 and 97%, respectively, which indicates an improvement in payment discipline at the enterprise.

Table 7.

Dynamics of accounts receivable

The dynamics and structure of accounts payable in 2005 are shown in Table 8.

Table 8.

Dynamics and structure of accounts payable in 2005

Name of accounts payable.	Payment due date
	Up to one year	Over one year
Accounts payable to suppliers and contractors, rub.

Accounts payable to the organization's personnel, rub
including overdue, rub
Accounts payable to the budget and state extra-budgetary funds, rub
including overdue, rub.
Loans, rub.

Loans, total, rub.
including overdue, rub.
including bonded loans, rub.
including overdue bonded loans, rub.
Other accounts payable, rub.
including overdue, rub.
Total, rub.:
including total overdue, rub.

Long-term accounts payable account for 4% of the share, all of which are overdue and consist of debt to suppliers and contractors and other debt. In the structure of short-term accounts payable, other debt accounts for 63%. This article consists of advance payments for VAT on goods shipped but not paid for, resulting from the enterprise’s use of the “on payment” method of calculating VAT. According to the accounting policy of the enterprise, these payments are charged to account 76AB “Deferred taxes”.

According to absolute indicators of financial stability, at the beginning of the period the financial position of the enterprise is stable. The company practically does not need short-term lending. Own funds and equivalent long-term borrowed funds fully cover inventories and costs. Current assets exceed accounts payable. At the end of the period, the financial position of the enterprise did not change significantly.

According to the integral methodology for assessing the financial stability of an enterprise, at the beginning of the period, the organization belongs to the first class of financial stability. This class includes enterprises whose loans and obligations are supported by information that allows one to be confident in the repayment of loans and the fulfillment of other obligations in accordance with contracts with a good margin for possible error. At the end of the period, the financial position of the enterprise did not change significantly.

2.5. Analysis of the enterprise's performance results

Analysis of indicators of business activity of an economic entity allows us to identify how effectively the enterprise uses its funds. Indicators characterizing business activity include turnover and profitability ratios.

Turnover ratios are of great importance for assessing the financial condition of an enterprise, since the speed of capital turnover (the speed at which it is converted into cash) has a direct impact on the solvency of the enterprise. In addition, an increase in the rate of capital turnover reflects an increase in the technical potential of the enterprise.

High turnover ratios are considered a sign of financial well-being, since good turnover provides more sales and helps generate additional income. At the same time, significant deviations of indicators upward from the average for previous periods or for the industry require a thorough investigation, as they may indicate that the reserve of this group of assets is insufficient for the sustainable operation of the enterprise.

Financial performance indicators characterize the absolute efficiency of the enterprise's management. Along with the absolute assessment, the relative efficiency of management is also determined. The ratio of balance sheet profit to the average value of the enterprise's property, capital (fixed and working capital) gives the overall profitability. Return on sales is defined as the ratio of profit from product sales to revenue from product sales. Many other profitability indicators are also calculated by changing the numerator and denominator of the general formula for calculating profitability.

Return on equity measures reflect how effectively a company uses its capital to generate profits.

Indicators of profitability of activities are calculated based on data from the profit and loss statement and allow you to assess the profitability of all areas of the enterprise's activities.

Table 9 presents calculations of the dynamics of income from core activities.

From Table 9 it follows that income from core activities increased, but at a less rapid rate in 2005 compared to previous periods.

Table 9.

Dynamics of income from core activities

Indicator name
Income from core activities for the period preceding the reporting period, thousand rubles.
Income from core activities for the reporting period, thousand rubles.
Income from core activities increased by, thousand rubles compared to the previous reporting period.
Growth rate of income from core activities, %

Indicators characterizing the profitability and loss ratio of Chuvashkabel Plant OJSC for the corresponding reporting period are presented in the following table:

Table 10.

Profitability indicators

Indicator name
Revenue, thousand rubles
Gross profit, thousand rubles.
Net profit (retained profit (uncovered loss)), thousand rubles.
Return on assets, %
Return on equity, %
Product (sales) profitability, %
Amount of uncovered loss as of the reporting date, thousand rubles.
The ratio of uncovered loss at the reporting date and balance sheet currency

It follows from the table that during the analyzed period, revenue increased by 150%, gross profit - by 179%, net profit - by 416%. The growth rate of net profit is faster than the growth rate of revenue and gross profit, which indicates the high quality of profit.

The growth in profitability of sales amounted to 5.9 percentage points (from 13.5% in 2003 to 19.4% in 2004). Capital turnover increased by 0.18 turnover (from 1.55 turnover in 2003 to 1.73 turnover in 2004) per year. The capital turnover period was reduced by 24 days. As a result of the growth in profitability of sales and the acceleration of capital turnover, return on capital in 2004 increased by 13.9 percentage points and amounted to 36.4%.

The growth in current liquidity indicators and the provision of own working capital is explained by a decrease in short-term liabilities (decline rate - 32.2%) compared to the growth of current assets (growth rate -50.5%). The main reason is the repayment of accounts payable to equipment suppliers (for the SAMP extrusion line and MAG enamel units).

For the same reason, there is a decrease in the debt-to-equity ratio (from 0.364 to 0.175).

In 2004 the increase in size and change in the dynamics of total assets largely determined the change in current assets, the value of which increased from 189,394 thousand rubles. up to 284,977 thousand rubles. (by 50.5% compared to the previous year), and the share in the balance sheet currency increased from 48.9% to 62%. The growth rate of the balance sheet currency was 18.6%.

The share of fixed assets in the value of total assets decreased from 51.1% to 38% during the year, and a significant rate of decline in their value was noticeable (by 11.9% compared to the beginning of the financial year).

Current assets were completely dominated by:

Material inventories, the growth of which amounted to 43,937 thousand rubles, and the share changed from 23.2% - as of 01/01/04, 29.1% - as of 12/31/04.

Accounts receivable (up to 12 months) – the value of which increased by 20,768 thousand rubles. (from 60,063 thousand rubles to 80,831 thousand rubles), the share changed from 15.6% to 17.6% during the year.

The value of short-term financial investments changed significantly (from 27,577 to 56,204 thousand rubles), the growth rate was 103.8%.

The main source of financing for the enterprise's assets. was equity capital, the share of which ranged from 73.4% - as of 01/01/04. up to 85.1% - as of 12/31/04.

There were no long-term borrowed funds in the structure of liabilities.

Dynamics of changes in total liabilities in 2004 in addition to the change in the amount of equity capital, it determined a decrease in accounts payable by (-32.2%) (from 100,690 thousand rubles to 68,250 thousand rubles)

The structure of accounts payable is characterized by the predominance of the following items: “accounts payable of suppliers and contractors” - change in share during the year - from 15% to 5.1%, “advances received” - change in share - from 9.8% to 5.2 %.

Chapter 3. Ways to improve the financial condition of an enterprise

3.1. Improving financial analysis techniques

The real operating conditions of an enterprise determine the need to conduct an objective and comprehensive financial analysis of business operations, which allows us to determine the characteristics of its activities, shortcomings in work and the reasons for their occurrence, and also, based on the results obtained, to develop specific recommendations for optimizing activities.

During the transition from a centralized system of economic functioning to a market one, the methods of financial analysis and the composition of the analyzed indicators radically changed. The main goal of conducting a comprehensive financial analysis is to ensure the sustainable operation of the enterprise in specific economic conditions.

The financial condition of an enterprise reflects its competitiveness (solvency, creditworthiness) in the production sector and, consequently, the efficiency of using invested equity capital.

The financial result of the enterprise depends on:

production profitability;

organization of production and sales of products;

provision of own working capital.

Practice shows that existing methods of financial analysis need to be improved. This can be done through the use of a proven accounting system at the enterprise. The analysis carried out should be based, first of all, on formalized accounting principles accepted in practice, which form a system for accounting for all assets of the enterprise and the results from their use in the process of economic activity.

To carry out financial analysis, financial statements are used, reflecting the final results of the specific activities of the enterprise, as well as a system of calculation indicators based on these statements.

The performance indicators of enterprises are influenced by both economic and organizational factors. In addition, enterprises, as independent economic entities of economic activity, have the right to distribute the results of their activities, i.e. profit, have economic freedom in choosing partners and make this choice based only on the goals of economic feasibility and their own benefit. A necessary element of their management in modern conditions is independence in organizing the supply of production with raw materials, hiring personnel and disposing of manufactured products, as well as in resolving issues related to financing capital investments, providing the enterprise with working capital, and other tasks based on their own vision of the prospects for carrying out production activities. These are the main elements of the independent activity of any enterprise, and on the basis of their accounting, a system of financial analysis is built.

3.2. Main directions for improving the financial condition of the enterprise

Let us present the main directions for improving the efficiency of the state or functioning of a sustainable developing enterprise, which, according to the results of the analysis, is OJSC Chuvashkabel Plant.

The level and dynamics of financial results make it possible to judge the optimization of the enterprise’s activities; therefore, it is necessary to maintain the level and dynamics of the financial results of the enterprise at a high level. Possible paths:

growth in revenue and profit from product sales, reduction in production costs;

improving the quality of the organization's profit.

The optimal dynamics of the financial results of an enterprise can be judged on the basis of growth:

return on capital (or financial growth);

profitability (profitability) of equity capital (provided primarily by the optimal level of financial leverage, growth in total profit, etc.);

capital turnover rate.

The improvement of the property status and financial condition of the enterprise, business activity and operational efficiency is evidenced by:

growth of positive qualitative changes in property status;

standard or higher than optimal values of the most important indicators of the financial condition of the enterprise, as well as business activity and operational efficiency.

In managing the capital structure of an enterprise, it is noted:

the capital structure (the relationship between various sources of funds) ensures its minimum price (and, accordingly, the maximum price of the enterprise), the optimal level of financial leverage for the enterprise;

when making decisions on the capital structure (in particular, in terms of optimizing the volume of debt financing), criteria such as, for example, the ability of the enterprise to service and repay debts from the amount of income received (adequacy of the profit received), the magnitude and sustainability of the projected cash flows for servicing should be taken into account and debt repayment, other criteria. An ideal capital structure maximizes the total value of a business and minimizes its total cost of capital. When making decisions on the capital structure, the industry, territorial and organizational characteristics of the enterprise, its goals and strategies, the existing capital structure and the planned growth rate should also be taken into account. When determining financing methods (issue of shares, loans, etc.), the structure of debt financing (the optimal combination of short-term and long-term financing methods), the costs and risks of alternative financing strategy options, future trends in market conditions and their impact on the availability of capital must be taken into account in the future and future interest rates, etc.

It is necessary to formulate an optimal policy for attracting new financial resources:

if there is a choice, then financing through long-term loans is preferable, since it has lower liquidity risk (at the same time, the cost of debt should not be high);

the enterprise's debts must be repaid on time (it should be noted that in some cases the enterprise may use the method of financing current activities by postponing payments on obligations).

It is necessary to improve the management of capital invested in fixed assets (fixed capital). The efficiency of use of fixed assets is characterized by indicators of capital productivity, capital intensity, profitability, relative savings of fixed assets as a result of increased capital productivity, increased service life of labor tools, etc.

Directions for improving working capital management are expressed in maintaining high turnover indicators, reducing material intensity and resource costs for production, etc., using scientifically based methods for calculating the need for working capital, complying with established standards, increasing the share of assets with minimal and low investment risk (cash, accounts receivable minus doubtful accounts).

To effectively manage financial risks, effective mechanisms for minimizing financial risks (credit, interest, currency, lost profits, loss of liquidity, etc.) must be developed and applied: insurance, risk transfer through the conclusion of a contract, limiting financial expenses, diversification of capital investments, expansion types of activities, etc.

It is necessary to introduce a budgeting and business planning system. Issues of rationality of budgeting and business planning systems, in general, can be reduced to the following three main areas: organizational structure of systems, regulation of systems, information systems. In addition, the effectiveness of these systems should be judged by the level of achievement of a number of parameters (optimal coordination of activities, controllability and adaptability of the enterprise to changes, optimization of internal control, high motivation of managers, etc.).

The non-cash payment system of the enterprise OJSC Chuvashkabel Plant (forms, procedures, terms, etc.) complies with the legislation of the Russian Federation. Basically, the enterprise's payment obligations to creditors (other organizations and their associations, including financial and credit institutions) and its own employees are fulfilled on time and in full. In general, the obligations of debtors and its own employees to the enterprise are repaid on time and in full.

3.3. Improving the management accounting system at the enterprise

When describing how to improve the efficiency of business processes, the need to adjust the organizational structure of the company is also revealed. For the high-quality organization of business processes, there may be a need for new structural divisions; some divisions have to be combined to eliminate duplication of functions and responsibilities.

When implementing a management accounting system, the question arises of who should be involved in management accounting and whether it is necessary to create any new structures, for example, a management accounting department. There is no clear answer here.

For OJSC Chuvashkabel Plant, it is possible to organize management accounting within the framework of the already existing financial and economic service. Quite often the following option is used: in each department, employees (or a group of employees) are selected who are responsible for maintaining management accounting in their area. Employees may simply have new functions; responsibility is divided between services depending on accounting objects.

It must be taken into account that setting up management accounting is a project. Accordingly, a project manager is needed who is not only responsible for it, but also has the necessary powers. In practice, the financial director is often appointed responsible for setting up management accounting. Another strict condition is the interest and participation of the company’s head in the project.

The goal of optimization is to make the organizational structure a management scheme. This means that the decision-making system of managers at different levels must be traced. Control and reporting mechanisms must also be clear. At the same time, the main tasks and responsibilities of structural units (for what and to whom) are clearly defined. It is very important to create a system for monitoring the achievement of indicators specified in the balanced scorecard, and at the same time establish the personal responsibility of department managers for the implementation of indicators. In the process of optimizing the organizational structure, principles of interaction are formed both between divisions within each company and between companies that are part of the holding.

When developing the organizational structure of a company, first of all, targets and criteria for its improvement are determined. A structure of administrative and functional subordination is being formed. A rather difficult stage is the distribution of areas of responsibility and functional responsibilities between departments and employees. The developed structure should ensure information interaction between departments.

The main organizational documents recording changes are the Regulations on the organizational structure and job descriptions, reflecting the distribution of functional responsibilities of employees.

The main results of this stage will be the determination of the organizational structure of the company, its main components, their functions and areas of activity, as well as the coordination of the basis for structural decisions for building a management accounting system.

The financial structure is closely related to the organizational structure of the company. To create a financial structure, you first need to distribute income, expenses and costs among business units. At the same time, structural units capable of being responsible for cash flow will be identified. The last step will be to identify financial responsibility centers within the company, classify them and distribute them by level. By identifying centers of financial responsibility, the company will follow the path of decentralization of management, when business units gain independence in making operational strategic decisions.

The main goals of management decentralization are to improve the quality of management of both the company as a whole and in areas of production and economic activity and the formation of flexible organizational structures in complex production and economic systems. It is very important that the line manager will have the right to independently, without coordination with management, quickly make decisions on certain issues and for a certain amount of money. This increases the efficiency of business management, since the department manager has more information about local conditions to make decisions, and their activities become more motivated, since they have the opportunity to take initiative. Giving managers responsibility helps develop management skills. And the most important thing is that senior management, freed from the need for daily decisions on private issues, can focus on strategic management tasks.

Thus, the financial structure divides the organization not into divisions that perform any functions, but into centers of financial responsibility. Financial responsibility center is a structural unit (or a set of structural units) endowed with the necessary resources, carrying out economic or other activities in accordance with its rights and obligations. Responsibility centers are managed based on performance indicators from the balanced scorecard. Center managers are responsible for their activities. The efficiency of the centers is determined by comparing planned and actual indicators. Within the framework of the accounting system, budgets are built by responsibility centers and their implementation is assessed.

This allows you to clearly track funds and control the sources of income and expenses. Such detailed accounting allows for the most objective assessment of the company’s activities.

But it is necessary to mention the disadvantages of decentralization of management, which are expressed in duplication of functions, inattention to the activities of other divisions and the likelihood of the division manager making incompetent decisions that will negatively affect the financial result. The reasons for unsuccessful decisions may be inconsistency between the goals of the entire enterprise and a separate division, as well as a lack of information that would allow division managers to determine the impact of their activities on other divisions. These shortcomings are precisely eliminated by the introduction of a balanced scorecard system.

Conclusion

Based on the above, it can be noted that financial analysis is a method of assessing and forecasting the financial condition of an enterprise based on its financial statements. Financial condition, in turn, being a complex concept, depends on many factors and is characterized by a system of indicators that reflect the availability and allocation of funds, real and potential financial capabilities. Therefore, when analyzing financial condition, specific methods are used. They are very diverse, but have the following common features: a) assessment of the enterprise’s activities from the perspective of increasing production efficiency; b) determining the influence of individual factors on the final results of the enterprise. During the financial analysis, an assessment is made of the real financial position of the enterprise, possible reserves for its improvement are identified, and measures are developed to use these reserves. All this once again indicates that financial analysis at an enterprise should not be episodic, but systematic.

During the analyzed period, JSC Chuvashkabel Plant experienced an increase in sales profitability, capital turnover increased, and the capital turnover period decreased. Return on equity increased as a result of increased return on sales and accelerated capital turnover.

The growth in current liquidity indicators and the provision of own working capital is explained by a decrease in short-term liabilities compared to the growth of current assets. The main reason is the repayment of accounts payable to equipment suppliers (for the SAMP extrusion line and MAG enamel units). For the same reason, there is a decrease in the debt-to-equity ratio.

Current assets increased and their share in the balance sheet currency increased. The share of fixed assets in the value of total assets decreased from, and a significant rate of decline in their value is noticeable.

The main source of financing for the enterprise's assets was its own capital. There were no long-term borrowed funds in the structure of liabilities. The dynamics of changes in total liabilities, in addition to changes in the amount of equity capital, were determined by a decrease in accounts payable.

The structure of accounts payable is characterized by the predominance of the following items: “accounts payable from suppliers and contractors”, “advances received”.

In 2004-2005 the quality of sources of financing for the enterprise's assets was stable. This was expressed, first of all, in the absence of losses and a significant reduction in the amount of accounts payable during the year.

To objectively assess the financial position of a business entity, it is necessary to move from individual accounting data to certain value relationships of the main factors - financial indicators or ratios. The calculation and interpretation of their values is the function of a financier-analyst who is able to navigate the economics of an enterprise, identify its “sore spots” based on financial and accounting data, and develop adequate measures of regulating intervention.

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INTRODUCTION

Taking into account the current situation in the economic and financial sphere, competent financial management is, first of all, an opportunity to protect the company from the risk of financial losses, detect problems in the organization in a timely manner and exercise caution when working with one or another counterparty. No method will give a 100% guarantee of timely detection of problems, but it is still possible to significantly reduce risks.

Financial management monitors market trends that are relevant to a specific organization. In particular, new state programs for loan refinancing. Conversely, the bankruptcy of large enterprises in a region that is a priority for the company’s activities worsens its prospects. Based on the results of the analysis of the news background, you can give a rating for this indicator: “satisfactory” or “unsatisfactory.”

When deriving an integrated assessment of the financial position of an enterprise - assigning an organization to one or another group according to its level of reliability, it is important not only to take into account additional criteria, but also the importance of expert opinion. Digitized and systematized data are just raw materials for examination. Their mechanical generalization sometimes gives a distorted result - some critical factor simply “dissolves” during averaging.

Financial planning is an integral part of financial management and aims to provide a forecast of the organization's prospects, possible performance results and identify problem areas of activity.

Accordingly, the financial plan must be flexible, capable of going beyond the methodology, which determines the relevance of the chosen topic of the course work.

The purpose of this work is to assess the financial planning system of a particular enterprise and improve the indicators of the financial plan.

Based on the goals, the main tasks of the work are:

Disclosure of the concept of financial planning;

Studying the methodological foundations and main stages of drawing up a financial plan;

Conducting an analysis of the financial situation of a particular enterprise;

Assessment of the financial planning system at a specific enterprise;

The object of research in the course work was an enterprise.

The subject of the study is financial planning in an organization.

As part of the course work, methods of economic and financial analysis were used, as well as comparison and synthesis of the information received into specific conclusions and recommendations to improve the reliability of the financial condition of the organization under study.

The practical significance of the course work lies in the fact that recommendations for improving financial planning at an enterprise can be applied in real activities

THEORETICAL ASPECTS OF FINANCIAL PLANNING IN AN ENTERPRISE

1.1. Goals, objectives and functions of financial planning

Planning is the setting of an organization's strategy for future periods in terms of business development and financial targets; planning usually covers several years.

According to prof. D.S. Molyakova, “the scientific concept of the category “financial resources” is closely related to such a higher degree of abstraction category as “finance”. The distribution and redistribution of value with the help of finance is necessarily accompanied by the movement of funds, which take the specific form of financial resources.” Further, the author makes a reasonable conclusion that financial resources are the material carrier of financial relations. Professor D.S. Molyakov believes that at the enterprise level the structure of financial resources is determined by income from its own sources - gross income and depreciation

Financial planning is the selection of goals according to the reality of their achievement with available financial resources, depending on external conditions and the coordination of future financial flows, expressed in the preparation and control over the implementation of plans for the generation of income and expenses, taking into account the current financial condition, goals and means expressed in monetary terms achievements. Financial planning is the planning of any expenses and income of a company, organization or individual to ensure stable and successful development, which covers all aspects of activity.

Financial planning is the planning of all income and areas of spending money to ensure the development of the organization. The main goals of this process are to establish a correspondence between the availability of the organization’s financial resources and the need for them, to select effective sources for the formation of financial resources and profitable options for their use.

Financial planning is the process of creating a variety of plans for raising and using funds, including capital, as a long-term financial source. Financial planning is the process of determining the volumes of receipt of relevant types of financial resources (profit, depreciation, etc.) and their distribution according to areas of use in the planned period.

The main tasks of financial planning include:

Determination of the volume of financial resources for each source of income and the total volume of financial resources of government entities and business entities;

Determining the volume and directions of use of financial resources,

Setting priorities in spending funds;

Ensuring a balance of material and financial resources, economical and efficient use of financial resources;

Creating conditions for strengthening the sustainability of organizations, as well as budgets formed by state authorities and local governments, budgets of state extra-budgetary funds.

The financial planning process takes into account all financial resources that the enterprise owns and that will be created in the course of its activities.

The development of financial plans (budgets) by Russian enterprises occupies an important place in the system of measures to stabilize their monetary economy.

Let's define the basic concepts related to financial planning. From one point of view, which the author of this manual adheres to, financial planning is a type of management activity aimed at achieving a balance between the movement of monetary and material resources of an enterprise, ensuring solvency, liquidity and increasing return on assets, equity and sales.

According to the second definition, which is followed by a number of practitioners, financial planning is the process of developing financial plans and planned (standard) indicators to ensure the development of the organization and increase the efficiency of its operating and investment activities in the coming period.

Financial planning is the process of developing a system of indicators to provide an enterprise with the necessary financial resources and improve the efficiency of its financial activities in the future period.

The main task of financial planning is to determine additional financing needs that arise as a result of an increase in the volume of sales of goods or provision of services.

Financial planning records the financial indicators that the company seeks to achieve in the future.

Financial planning formulates ways and means to achieve the financial goals of an enterprise.

The main goal of financial planning at an enterprise is to substantiate its development strategy from the perspective of a compromise between profitability, liquidity and risk, as well as to determine the required amount of financial resources to implement this strategy.

Financial planning is aimed at transforming strategic goals and objectives into specific (absolute and relative) values of the effective financial indicators of the organization through the implementation of a set of measures in the field of finance.

The financial plan includes the calculation of the financial results of the organization’s activities for the planning period, as well as the financial, material and human resources necessary for this.

In the process of financial planning, target values for balance sheet and profit and loss account indicators are established. A financial plan is a means of implementing the financial strategy of an organization, which is a priority among functional strategies aimed at achieving the strategic goals of the organization.

Financial planning, which translates the strategies, objectives and activities developed in the process of strategic and tactical planning into specific cost indicators.

Financial planning functions

Maximizing sales, profits, property of company owners, etc.

Determining the volume of expected receipts of cash resources (in the context of all sources, types of activities) based on the planned sales volume

Determining the possibilities for selling products (in physical and value terms) taking into account concluded contracts and market conditions

Justification of expected expenses for the relevant period

Establishing optimal proportions in the distribution of financial resources

Determining the effectiveness of each major economic and financial transaction in terms of final financial results

Justification for short periods of equilibrium in the receipt of funds and their expenditure to ensure the solvency of the company and its stable financial position.

Thus, financial planning is the planning of all income and areas of spending money to ensure the development of the organization. The main goals of this process are to establish a correspondence between the availability of the organization’s financial resources and the need for them, to select effective sources for the formation of financial resources and profitable options for their use. This is the management of the processes of creation, distribution, redistribution and use of financial resources in an enterprise, implemented in detailed financial plans. Financial planning is an integral part of the overall planning process and, therefore, the management process carried out by enterprise management.

A financial plan is a generalized planning document that reflects the receipt and expenditure of funds for the current (up to one year) and long-term (over one year) period. Includes the preparation of operating and capital budgets, as well as financial resource forecasts for two to three years. In Russia, until recently, such a plan was developed in the form of a balance of income and expenses (for the year with a quarterly breakdown).

Financial plan - a plan for income/expenses, a plan for managing financial flows (using own funds, raising borrowed funds, etc.) by an enterprise/organization over a certain period of time.

The financial plan consists of four sections:

1) receipts of funds and income;

2) deductions and expenses;

3) credit relationships;

4) budgetary relations.

Calculations for each balance sheet item show the amount of income of the enterprise and its expenses.

The section “Receipts of funds and income” gives an idea of the receipt of basic profits, various internal income, and receipt of funds from external sources. The majority of the enterprise's income comes from the sale of finished products.

For each of the main types of funds, depreciation charges are planned. The total amount of these deductions is the product of multiplying the average annual cost of funds by depreciation rates.

The section “Deductions of funds and expenses” displays the costs of material resources for major repairs, maintenance of buildings, structures and buildings, costs of training and bonuses for workers, etc.

During the development of the “Credit Relationships” section of the financial plan, the amounts of incoming loans are calculated that will be used for the successful operation of the production activities of the enterprise and all its divisions.

Bank loans taken out by an enterprise are repaid with funds from production or other funds. If these funds are not enough, the loan is repaid using the profits from the financed activities.

The “Budget relationships” section displays a calculation that determines the amount of cash payments and budgetary funds for the entire enterprise and its individual areas.

The procedure for distributing the profit of an enterprise is designed to ensure that its profit will be directed to the formation of various funds of the enterprise after all payments have been made (fixed payments, payments on a bank loan, for production assets).

After the calculations, a table is compiled in which the values of the section “Receipts of funds and income” and the section “Deductions of funds and expenses” are numerically equal.

We can say that the financial plan of an enterprise reflects the financial relationships of this enterprise with the credit system and other organizations. The financial stability of the enterprise, its ability to conduct mutual settlements with suppliers and make all necessary payments depend on how correctly the financial plan is drawn up and implemented.

Ways to improve the financial condition of an enterprise

The most important areas for improving the financial condition of the organization are shown in Figure 1.

These paths include the following main aspects.

The direction “Reorganization of inventory” assumes that inventories are allocated according to criteria depending on the level of their significance to increase the sustainability of activities. The volumes of these types of inventories that are not identified as critical for business development should be reduced. At the same time, activities in the field of supply orders should be intensified by introducing more effective control measures, such as centralizing the storage and issuance of goods, redistributing storage areas or improving document flow.

Rice. 1.1. Main directions for improving the financial condition of the enterprise

It would be rational to sell the remaining stocks at discounts in order to acquire surplus funds.

Direction “Getting additional funds from the use of fixed assets.” After this, it is necessary to identify more tailored communication channels to effectively communicate to market participants proposals for the sale or rental of property. Property that could not be rented out must be preserved, a conservation act must be drawn up and submitted to the tax office, which will allow this property to be excluded from the calculation of the taxable base.

Direction “Debt collection in order to accelerate cash turnover.” The return of debts by customers can be stimulated by providing special discounts. It is also necessary to create a system for assessing clients that would add up all the risks associated with them as business partners. Total dependence on the customer will include his accounts receivable, goods in the warehouse prepared for shipment, products in production provided for this customer. It is necessary to determine formal credit limits for each client, which will be based on the overall relationship with him, the firm's cash needs and an assessment of the financial condition of a particular client. It would be rational to entrust supervision of clients to sales managers, and their wages would be tied to the actual receipt of funds from the clients with whom they work. In addition, in some cases you can try to sell its receivables to the bank servicing the company.

Direction “Changing the structure of debt obligations”. A detailed analysis of these obligations and probable options for their repayment in order to increase liquidity in the future. If it is impossible to repay these obligations, options for changing the structure are analyzed (transferring long-term obligations to short-term ones or vice versa).

The direction “Dividing payments to creditors by priority to reduce cash outflow” involves ranking suppliers depending on their degree of importance. Critical suppliers must be the focus; It is advisable to intensify contacts with them in order to strengthen mutual understanding and the desire for cooperation.

The direction “Revision of capital investment plans” is a means of increasing cash flow. This direction is based on cost reduction. This is especially true in circumstances of the threat of a crisis and it is important to refuse investments in capital construction, the purchase of new equipment, increasing the sales network, etc., except in urgent cases. To determine them, it is necessary to assess which capital investment needs cannot be deferred to a later period. In addition, it is necessary to abandon those capital expenditures that cannot provide an immediate return for the enterprise.

Direction “Increasing the flow of funds from interested financial sources not related to mutual trade.” This point involves the provision of assistance by the main support groups - the bank, shareholders or owners.

The direction “Increasing production and sales” ensures an increase in funds acquired from the sale of products, i.e., an increase in absolutely liquid assets, and therefore liquidity itself. For this purpose, it is necessary to identify groups of goods that give the greatest profit, analyze the price and volume of products sold to establish the most rational compromise that will help the enterprise, despite a decrease in sales volumes, increase the receipt of additional funds by increasing prices, trade margins or sales volumes .

The next two areas - “Forecasting financial condition” and “Introducing an effective cash flow forecasting system” are closely interrelated. Forecasting the financial condition of an enterprise should always be carried out after a comprehensive analysis in order to determine the long-term financial condition in the near future and, as a result, develop appropriate measures. Forecasting cash flows is a critical component of forecasting the financial condition as a whole.

Thus, there is a set of methods and techniques for assessing the financial condition of an organization. Their use in combination or in part forms a methodology for financial analysis.

The purpose of financial planning is to predict the solvency and financial stability of an enterprise. Planning of financial resources and investments guarantees the fulfillment of obligations to the budget, creditors and shareholders, and ensures financing of business activities.

The need for financial planning as a special area of planning activity is due to the relative independence of cash flow in relation to material elements.

Ways to improve the financial condition of an enterprise (using the example of LLC "SP"). Ways to improve the financial condition of an enterprise

1.1. The essence of enterprise finance

2.1. Organizational and economic characteristics of the enterprise’s activities

3.1. Improving financial analysis techniques

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