Why is it necessary and how is the analysis of financial statements carried out? Explanation of the results of vertical reporting analysis. Types of economic analysis depending on the functions and tasks of the analysis

Method characteristic

Vertical analysis means the expression of financial data in relation to a particular element financial reporting. This means that all elements of the reporting form for a certain period are divided by this element.

A simpler definition is the division of all numbers in a column by one of those numbers.

The elements that are most commonly used as the base value by which other elements are divided are assets and revenue. Essentially, vertical analysis creates a ratio between each financial statement item and the underlying element.

Vertical analysis allows you to determine the structure of the main elements of assets and liabilities organizations, the influence of individual factors on the financial result, liquidity indicators.

Methodology for vertical analysis of reporting

The calculation of the structure of assets occurs through the division of a certain element of the asset by the total amount of assets. For example, determining the share production stocks in overall structure assets goes like this:

Share of inventories =

cost of inventories

amount of assets

As shown in Figure 1, vertical analysis can be carried out in relation to the three main elements of financial statements: the balance sheet, the income statement and the income statement. Money.

Explanation of the results of vertical reporting analysis

When substantiating conclusions on the identified structure of assets and liabilities, it is necessary to pay attention to the scope of the enterprise, the history of its operation, the state of the market and the influence of its participants, the capital structure. On the industrial enterprises most of the assets under normal conditions are non-current assets, and for commercial enterprise- stocks of goods.

The same applies to the sources of financing of the enterprise - a high share of equity indicates low financial risks but also about the incomplete use by the enterprise of its potential. Under the conditions of stable functioning of the market, such a capital structure may turn out to be optimal, but if it is possible to increase the presence on it, it is important to attract additional borrowed funds to intensify one's activities.

Vertical balance analysis

The balance when applying vertical analysis is calculated by dividing each element in balance on the volume of total assets for the same period and expresses the result as a percentage.

For example, Table 1 is a vertical balance sheet analysis for a hypothetical company over two equal time periods. In this example, accounts receivable increased from 35 percent to 57 percent of total assets. What are the possible reasons for this growth? The increase may mean that the company is doing more sales on a credit basis, and does not receive money for goods and services at the time of sale. Perhaps such actions are a response to the activity of competitors.

Alternatively, an increase in accounts receivable as a percentage of assets could be due to a change in the amount of another asset element, such as a decrease in inventory levels; the analyst will need to figure out why this category of assets has changed.

Another possible reason for an increase in accounts receivable as a percentage of asset value is that the company has lowered its credit standards, relaxed its debt collection procedures, or adopted a more aggressive revenue recognition policy. The analyst may refer to other comparisons and ratios (for example, comparing the growth rate of accounts receivable with the growth rate of sales to determine which explanation is most likely).

Table 1 - Vertical balance sheet analysis for a hypothetical company

Indicators	Period 1, % of total assets	Period 2, % of total assets	Absolute deviation
fixed assets	5	8	3
Fixed assets	5	8	3
Stocks	35	29	-15
Accounts receivable	35	57	22
	25	15	-10
current assets	95	92	-3
Assets	100	100	0

Vertical analysis of income statement

Vertical analysis of the income statement implies the division of each reporting element to the proceeds, and sometimes on the size of total assets (for example, in the case of studying the activities of financial institutions). If there are several sources of income, you should decompose the income into several elements and display the resulting number as a percentage.

For example, Table 2 provides a vertical analysis of a hypothetical company's income statement for two different time periods. Revenue is broken down into four company services, each shown as a percentage of total income. In this example, service A's revenues grew more significantly compared to the company's other services (up 45 percent in period 2).

What are the possible causes and consequences of this change in business structure? Was it a strategic decision for the company to focus on selling category A services because of their higher profitability? Apparently not, because the company's earnings before interest and taxes (EBIT) dropped from 49 percent of sales to 41 percent, so other possible explanations must be considered. In addition, we note that the main reason for the decline in profitability is that the cost increased from 15 percent to 25 percent of total revenue. Is service A using more company resources? If an analyst wants to predict the future performance of a company, then he needs to understand the reasons for the current trend.

In addition, Table 2 shows that corporate income tax as a percentage of sales has been significantly reduced (from 15 percent to 8 percent). At the same time, the share of profit before tax (EBT) (generally a more appropriate comparison) fell from 36 percent to 23 percent. Does the company move its activities to a jurisdiction with lower tax rates? If not, what explains it?

Table 2 - Vertical analysis of the statement of financial results of a hypothetical company

Indicators	Period 1, % of total revenue	Period 2, % of total revenue	Absolute deviation
Source of revenue: service A	30	45	15
Revenue Source: Service B	23	20	-3
Source of revenue: service B	30	30	0
Source of revenue: service G	17	5	-12
Total revenue	100	100	0
Cost price	15	25	10
Management expenses	22	20	-2
Marketing expenses	10	10	0
Profit from sales (EBIT)	49	41	-8
Percentage to be paid	7	7	0
Profit before tax (EBT)	42	34	-8
Current income tax	15	8	-7
Net profit	27	26	-1

Vertical analysis of companies across industries

As noted earlier, the coefficients and results of vertical analysis are comparable to some reference or normative values . Cross Analysis(sometimes called benchmarking) compares a particular metric for one company with the same metric for another company or group of companies, allowing data to be compared even though companies may be of different sizes and/or operate in different environments.

Table 3 is a vertical balance sheet analysis for two hypothetical companies at the same point in time. Company 1 is clearly more liquid (liquidity is a measure of how quickly assets can be converted into cash) than Company 2, which has only 12 percent of assets in cash, compared to highly liquid Company 1, where cash is 38 percent assets.

Given that cash is generally a relatively low-yielding asset and thus not the best use for cash, why does Company 1 have such a large percentage of total cash assets? The company may be preparing for an acquisition or maintaining a large cash position as a hedge against a particularly volatile operating environment.

The second question is, does the relatively high share of accounts receivable in Company 2 indicate a high share of credit sales, a general change in asset composition, a lower credit or collection standard, or is it the result of an aggressive accounting policy?

Table 3 - Vertical balance sheet analysis for two hypothetical companies

Indicators	Company 1	Company 2
fixed assets	1	2
Financial investments	1	7
Fixed assets	2	9
Stocks	27	24
Accounts receivable	33	55
Cash and cash equivalents	38	12
current assets	98	91
Assets	100	100

In general, vertical analysis is effective method definitions actual changes in the financial condition of the company. It should be used together with horizontal analysis, which will allow you to better understand the real state of affairs. Vertical analysis can be applied to all forms of financial statements of an enterprise.

List of used literature

Buzyrev V.V., Nuzhina I.P. Analysis and diagnostics of financial economic activity construction company/ Textbook. - M.: KnoRus, 2016. - 332 p.

Kogdenko V.G., Economic analysis / Tutorial. - 2nd ed., revised. and additional - M.: Unity-Dana, 2011. - 399 p.

Thomas R. Robinson, International financial statement analysis / Wiley, 2008, 188 pp.

Financial analysis is carried out by companies not only to assess the current financial condition company, it also allows you to predict its further development. At the same time, analysts need to carefully consider the list of indicators that will be used to strategic planning.

Analysis of the level of sustainable growth of the company is a dynamic analytical framework that combines the financial analysis co strategic management to explain the critical relationships between strategic planning variables and financial variables, and to test the alignment of corporate growth objectives with financial policy. This analysis allows you to determine the presence of the company's existing opportunities for financial growth, to establish how financial policy companies will influence the future and analyze the strengths and weaknesses competitive strategies companies.

In this article, we will consider the components of the analysis of financial indicators.

Any measures for the implementation of strategic programs have their cost. A necessary part of the planning and implementation of the strategy is the calculation of the necessary and sufficient financial resources that the company must invest.

Information for financial analysis

The most complete definition of the concept of financial analysis is given in the “Financial and Credit Encyclopedic Dictionary” (edited by A.G. Gryaznova, M.: “Finance and Statistics”, 2004): “ Financial analysis is a set of methods for determining the property and financial position business entity in the past period, as well as its capabilities in the short and long term". The purpose of financial analysis is to determine the most effective ways to achieve the profitability of the company, the main tasks are to analyze the profitability and assess the risks of the enterprise.

Analysis of financial indicators and ratios allows the manager to understand the competitive position of the company at the current time. Published reports and company accounts contain a lot of numbers, the ability to read this information allows analysts to know how efficiently and effectively their company and competing companies are working.

The ratios allow you to see the relationship between sales profit and expenses, between the main assets and liabilities. There are many types of ratios, and they are usually used to analyze the five main aspects of a company's performance: liquidity, equity ratio, asset turnover, profitability, and market value.

Rice. 1. The structure of the company's financial indicators

Analysis financial ratios and indicators - an excellent tool that provides an idea of the financial condition of the company and competitive advantages and prospects for its development.

1. Performance analysis. The ratios allow you to analyze the change in the performance of the company in terms of net profit, use of capital and control the level of costs. Financial ratios allow you to analyze the financial liquidity and stability of the enterprise through effective use systems of assets and liabilities.

2. Evaluation of market business trends. By analyzing the dynamics of financial indicators and ratios over a period of several years, it is possible to study the effectiveness of trends in the context of the existing business strategy.

3. Analysis of alternative business strategies. By changing the indicators of the coefficients in the business plan, it is possible to analyze alternative options for the development of the company.

4. Monitoring the progress of the company. Having chosen the optimal business strategy, the company's managers, continuing to study and analyze the main current ratios, can see a deviation from the planned indicators of the development strategy being implemented.

Ratio analysis is the art of relating two or more measures of a company's financial performance. Analysts can see a more complete picture of the performance results in dynamics over several years, and additionally by comparing the company's performance with industry averages.

It is worth noting that the system of financial indicators is not a crystal ball in which you can see everything that was and will be. It's just a convenient way to summarize a large amount of financial data and compare performance. various companies. By themselves, financial ratios help the management of the company to focus on the weak and strengths activities of the company, correctly formulate questions that these ratios can rarely answer. It is important to understand that financial analysis does not end with the calculation of financial indicators and ratios, it only begins when the analyst has completed their calculation.

The real utility of the calculated coefficients is determined by the tasks set. First of all, ratios provide an opportunity to see changes in financial position or results. production activities, help to determine the trends and structure of the planned changes; which helps management to see the threats and opportunities inherent in this particular enterprise.

The company's financial reports are a source of information about the company not only for analysts, but also for the company's management and a wide range of stakeholders. It is important for users of information on financial ratios to know the main characteristics of the main financial statements and the concepts of indicator analysis for effective ratio analysis. However, when conducting financial analysis, it is important to understand that the main thing is not the calculation of indicators, but the ability to interpret the results.

When analyzing financial performance, it should always be borne in mind that the assessment of performance is based on data from past periods, and on this basis, extrapolation of the future development of the company may turn out to be incorrect. Financial analysis should be directed to the future.

Concepts behind financial performance analysis

Financial analysis is used in the construction of budgets, to identify the causes of deviations of actual indicators from planned and correction of plans, as well as in the calculation of individual projects. The main tools used are horizontal (dynamics of indicators) and vertical (structural analysis of articles) analysis of reporting documents management accounting, as well as the calculation of coefficients. Such an analysis is carried out for all major budgets: BDDS, BDR, balance sheet, sales, purchases, inventory budgets.

The main features of financial analysis are the following:

1. The vast majority of financial indicators are in the nature of relative values, which makes it possible to compare enterprises of various scales of activity.

2. When conducting financial analysis, it is important to apply a comparison factor:

compare the performance of the company in a trend for different periods of time;
compare the performance of this company with the average performance of the industry or with similar performance of enterprises within the industry.

3. For financial analysis, it is important to have a complete financial description of the company for selected time periods (usually years). If the analyst has data for only one period, then there should be data on the balance sheet of the enterprise at the beginning and end of the period, as well as a profit statement for the period in question. It is important to remember that the number of balances for analysis should be one more than the number of profit reports.

Accounting management is an important element in the analysis of financial ratios and indicators. The basic accounting equation expressing the interdependence of assets, liabilities and property rights is called the balance sheet:

ASSETS = LIABILITIES + EQUITY

Assets usually classified into three categories:

1. Current assets include cash and other assets that must be converted to cash within one year (for example, securities, circulating on the stock exchange; accounts receivable; bills receivable; working capital and advanced funds).

2. Land property, fixed assets and equipment (fixed capital) include assets that are characterized by a relatively long service life. These funds are usually not intended for resale and are used in the production or sale of other goods and services.

3. Long-term assets include the company's investments in securities, such as stocks and bonds, as well as intangible assets, including: patents, expenses on monopoly rights and privileges, copyrights.

Liabilities usually divided into two groups:

1. Short-term liabilities include amounts of accounts payable that should be paid within one year; for example, accrued liabilities and bills payable.

2. Long-term obligations are the rights of creditors, which do not have to be realized within one year. This category includes obligations under a bonded loan, long-term bank loans, and mortgages.

Equity These are the rights of the owners of the enterprise. From an accounting point of view, this is the balance of the amount after deducting liabilities from assets. This balance is increased by any profit and reduced by any losses of the company.

Measures commonly considered by analysts include the income statement, balance sheet, measures of changes in financial position, and measures of changes in equity.

A company's income statement, also referred to as a profit and loss statement or income statement, summarizes the results of a company's options activity for a given period of time. reporting period time. Net income is calculated using the periodic accounting method used to calculate profits and costs. It is usually considered the most important financial indicator. The report shows whether the percentage of earnings on the company's shares for the reporting period decreased or increased after the distribution of dividends or after the conclusion of other transactions with the owners. The income statement helps owners assess the amount, timing and uncertainty of future cash flows.

The balance sheet and the income statement are the main sources of indicators used by companies. A balance sheet is a statement showing what a company owns (assets) and owes (liabilities and equity) as of a specific date. Some analysts refer to the balance sheet as a "picture of a company's financial health" at a particular point in time.

System of financial indicators and ratios

The total number of financial ratios that can be used to analyze the company's activities is about two hundred. Usually, only a small number of basic coefficients and indicators are used and, accordingly, the main conclusions that can be drawn from them. For the purpose of a more streamlined consideration and analysis, financial indicators are usually divided into groups, most often into groups that reflect the interests of certain stakeholders (stakeholders). The main groups of stakeholders include: owners, management of the enterprise, creditors. At the same time, it is important to understand that the division is conditional and indicators for each group can be used by different stakeholders.

As an option, it is possible to streamline and analyze financial indicators by groups that characterize the main properties of the company's activities: liquidity and solvency; the effectiveness of the company's management; profitability (profitability) of activity.

The division of financial indicators into groups characterizing the features of the enterprise's activities is shown in the following diagram.

Rice. 2. The structure of the company's financial indicators

Let's consider in more detail the groups of financial indicators.

Operating costs indicators:

The analysis of operating costs allows us to consider the relative dynamics of the shares of various types of costs in the structure of the total costs of the enterprise and is an addition to the operational analysis. These indicators allow you to find out the reason for the change in the profitability of the company.

Indicators effective management assets:

These indicators make it possible to determine how effectively the company's management manages the assets entrusted to it by the company's owners. The balance can be used to judge the nature of the assets used by the company. At the same time, it is important to remember that these indicators are very approximate, because. In the balance sheets of most companies, a variety of assets acquired at different times are indicated at historical cost. Consequently, the book value of such assets often has nothing to do with their market value, this condition is further exacerbated by inflation and an increase in the value of such assets.

Another distortion of the current situation may be related to the diversification of the company's activities, when specific activities require the attraction of a certain amount of assets in order to obtain a relatively equal amount of profit. Therefore, when analyzing, it is desirable to strive for the separation of financial indicators for certain types of company activities or products.

Liquidity indicators:

These indicators allow you to assess the degree of solvency of the company on short-term debts. The essence of these indicators is to compare the value of the current debt of the company and its working capital to ensure the repayment of these debts.

Indicators of profitability (profitability):

They allow to evaluate the effectiveness of the use by the company's management of its assets. The efficiency of work is determined by the ratio of net profit, determined by different ways, with the amount of assets used to generate that profit. This group indicators is formed depending on the focus of the research effectiveness. Following the goals of the analysis, the components of the indicator are formed: the amount of profit (net, operating, profit before tax) and the amount of the asset or capital that form this profit.

Capital structure indicators:

Using these indicators, it is possible to analyze the degree of risk of bankruptcy of the company in connection with the use of borrowed financial resources. With an increase in the share of borrowed capital, the risk of bankruptcy increases, because. the company's liabilities increase. This group of coefficients is primarily of interest to existing and potential creditors companies. The management and owners evaluate the company as a continuously operating business entity, creditors have a twofold approach. On the one hand, creditors are interested in financing the activities of a successfully operating company, the development of which will meet expectations; on the other hand, lenders estimate how strong the claim for repayment of the debt will be if the company experiences significant difficulties in repaying a long-term loan.

A separate group is formed by financial indicators that characterize the company's ability to service debt using funds received from current operations.

The positive or negative impact of financial leverage increases in proportion to the amount of borrowed capital used by the company. The risk of the creditor increases together with the growth of the risk of the owners.

Debt service indicators:

Financial analysis is based on balance sheet data, which is accounting form, which reflects the financial condition of the company at a certain point in time. Whichever coefficient characterizing the capital structure is considered, the analysis of the share of borrowed capital, in fact, remains statistical and does not take into account the dynamics operating activities company and changes in its economic value. Therefore, debt service indicators do not give a complete picture of the company's solvency, but only show the company's ability to pay interest and the amount of the principal debt within the agreed time frame.

Market indicators:

These indicators are among the most interesting for company owners and potential investors. In a joint-stock company, the owner - the shareholder - is interested in the profitability of the company. This refers to the profit received due to the efforts of the company's management, on the funds invested by the owners. Owners are interested in the impact of the company's performance on the market value of their shares, especially those freely traded on the market. They are interested in the distribution of their profits: how much of it is reinvested in the company, and how much is paid to them as dividends.

The main analytical goal of analyzing financial ratios and indicators is to acquire the skills of making managerial decisions and understanding the effectiveness of its work.

The content of the analysis of the financial and economic activities of the enterprise is a deep and comprehensive study of economic information about the functioning of the analyzed business entity in order to make optimal management decisions to ensure the implementation production programs enterprises, assessing the level of their implementation, identifying weaknesses and on-farm reserves.

The analysis should be a comprehensive study of the effect of external and internal, market and production factors on the quantity and quality of products manufactured by the enterprise, the financial performance of the enterprise and indicate possible prospects development of further production activities of the enterprise in the selected area of management.

The main direction of analysis: from complex complex- to its constituent elements, from the result - to conclusions about how such a result was achieved and what it will lead to in the future. The scheme of analysis should be built on the principle of "from the general to the particular". First, a description is given of the most general, key characteristics of the analyzed object or phenomenon, and only then proceed to the analysis of individual particulars.

The success of the analysis is determined by various factors. First, before starting to perform any analytical procedures, it is necessary to draw up a fairly clear analysis program, including the development of models of analytical tables, algorithms for calculating the main indicators and the sources of information and regulatory support required for their calculation and comparative assessment.

Secondly, when carrying out analytical procedures, the performance of an enterprise is always compared with something. Comparisons can be made with the previous period, with the plan and with industry averages. Any deviations from the normative or planned values of indicators, even if they are positive, should be carefully analyzed. The meaning of such an analysis is, on the one hand, to identify the main factors that caused the recorded deviations from the given benchmarks, and on the other hand, to once again check the validity of the adopted planning system, and, if necessary, make changes to it.

Thirdly, the completeness and integrity of any analysis that has an economic focus is largely determined by the validity of the set of criteria used. As a rule, this set includes qualitative and quantitative assessments, and its basis is usually calculated indicators that have a clear interpretation and, if possible, some guidelines (limits, standards, trends). When selecting indicators, it is necessary to formulate the logic of their association into a given set in order to make the role of each of them visible, and not create the impression that some aspect has remained uncovered or, on the contrary, does not fit into the scheme under consideration. In other words, the set of indicators, which in this case is quite possible to interpret as a system, must have some inner core, some basis that explains the logic of its construction.

Fourth, when performing an analysis, one should not unnecessarily chase after the accuracy of estimates; as a rule, the greatest value is the identification of trends and patterns.

The main purpose of the analysis is to increase the efficiency of the functioning of economic entities and to search for reserves for such an increase. To achieve this goal, the following is carried out: evaluation of the results of work for the past periods; development of procedures operational control for production activities; development of measures to prevent negative phenomena in the activities of the enterprise and in its financial results; revealing reserves to improve performance; development of sound plans and standards.

In the process of achieving the main goal of the analysis, the following tasks are solved:

Determination of baselines for development production plans and programs for the coming period;

Increasing the scientific and economic validity of plans and standards;

Objective and comprehensive study of the implementation of established plans and compliance with standards for the quantity, structure and quality of products, works and services;

Determining the economic efficiency of the use of material, labor and financial resources;

Forecasting business results;

Preparation of analytical materials for the selection of optimal management decisions related to the adjustment of current activities and the development strategic plans.

In specific conditions, other local goals can be set, which will determine the content of the procedures for analyzing financial and economic activities. Thus, the general content of analytical procedures can be determined both by the specifics of the enterprise and by the type of analysis chosen.

Statement and clarification of specific tasks of analysis;

Establishment of causal relationships;

Definition of indicators and methods for their evaluation;

Identification and evaluation of factors affecting the results, selection of the most significant ones;

Development of ways to eliminate the influence of negative factors and stimulate positive ones.

The analysis of financial and economic activities should be carried out, guided by certain principles (Table 6).

Table 6

Basic principles for analyzing the financial and economic activities of an enterprise


concreteness	The analysis is based on specific data, its results receive a specific quantitative expression
Complexity	A comprehensive study of an economic phenomenon or process with the aim of its objective assessment
Consistency	The study of economic phenomena in relation to each other, and not in isolation
Regularity	Analysis should be carried out continuously at predetermined intervals and not on a case-by-case basis.
Objectivity	Critical and impartial study of economic phenomena, development of sound conclusions
Effectiveness	Suitability of the analysis results for practical use, to improve the performance of production activities
economy	The costs associated with the analysis should be significantly less than economic effect, which will be obtained as a result of its implementation
Comparability	The data and results of the analysis should be easily comparable with each other, and with regular analytical procedures, the continuity of the results should be observed.
Scientific	Analysis should be guided by evidence-based methods and procedures

The financial and economic activity of the enterprise can be represented as continuous process attracting various kinds of resources, combining them in the production process to obtain some financial result. Based on this, three enlarged areas of application of the analysis can be distinguished: resources, production process, financial results. Any of these objects can be, firstly, detailed and, secondly, subjected to various types analytical processing.

The method of analysis of financial and economic activity as a way of knowing an economic entity consists of a series of sequential actions (stages, stages):

Observation of the subject, measurement and calculation of absolute and relative indicators, bringing them into a comparable form, etc.;

Systematization and comparison, grouping and detailing of factors, study of their influence on the performance of the subject;

Generalization - construction of final and forecast tables, preparation of conclusions and recommendations for making managerial decisions.

Method of analysis of financial and economic activities is a system of epistemological categories, scientific tools and regulatory principles for studying the processes of functioning of economic entities.

There are various classifications of methods and techniques for analyzing the financial and economic activities of an economic entity. All classifications are based on different features. One of the most informative is the division of techniques and methods according to the degree of their formalizability, i.e. by whether and to what extent it is possible to describe this method with the help of some formalized (primarily mathematical) procedures. Following this logic, all analytical methods can be divided into informal and formalized. The classification of methods and techniques of analysis is shown in fig. 13.

Rice. 13. Classification of methods and techniques used in the analysis of the financial and economic activities of the enterprise

informal methods(probably, it is more correct to call them difficult to formalize) are based on the description of procedures at the logical level, without the help of strict analytical dependencies. The experience and intuition of the analyst play a large role in the application of these methods. Formalized Methods(sometimes they are also called mathematical) are based on predefined strict dependencies and rules. Not all of them are equivalent in terms of the complexity of the mathematical apparatus used, the possibility of implementation in practice and the degree of prevalence in work. analytical services in enterprises and special consulting firms.

Development of a system of indicators. An analysis of the financial and economic activities of an enterprise is very often in its form an analysis of indicators, i.e. characteristics of the economic activity of the economic unit. The term "scorecard" is widely used in economic research. The analyst, in accordance with certain criteria, selects indicators, forms a system from them, and analyzes it. The complexity of the analysis requires the use of entire systems, rather than individual indicators.

Compared to individual indicators or some set of them, the system is a qualitatively new formation and is always more significant than the sum of its individual parts, since in addition to information about the parts, it carries certain information about the new that appears as a result of their interaction, i.e. information about the development of the system as a whole.

The construction of a detailed system of indicators that characterize any process or phenomenon is based on a clear understanding of two points: what is the system and what basic requirements it must meet. Under scorecard, characterizing a certain economic entity or phenomenon, is understood as a set of interrelated values that comprehensively reflect the state and development of this entity or phenomenon.

comparison method. Comparison is an action by which the similarity and difference between the phenomena of objective reality are established. This method solves the following main tasks:

Identification of causal relationships between phenomena;

Conducting evidence or rebuttals;

Classification and systematization of phenomena.

The comparison can be qualitative ("it was warmer yesterday") or quantitative ("20 is always more than 10").

The comparison procedure in the analysis of the financial and economic activities of an enterprise includes several stages: the choice of objects to be compared; selection of the type of comparison (dynamic, spatial, in relation to planned values); the choice of comparison scales and the degree of significance of differences; the choice of the number of features by which the comparison should be made; the choice of the type of features, as well as the definition of criteria for their materiality and insignificance; choice of base of comparison.

Method for constructing analytical tables. The construction of analytical tables is one of the most important methods for analyzing financial and economic activities. An analytical table is a form of the most rational, visual and systematized presentation of the initial data, the simplest algorithms for their processing and the results obtained. It is a combination of horizontal rows and vertical graphs (columns, columns). A table skeleton that has a text portion but no numeric data is called a table layout.

Analytical tables are used at all stages of the analysis of financial and economic activities.

Thus, the tables used in the analysis of the financial and economic activities of the enterprise are used to systematize the initial data, conduct analytical calculations and formalize the results of the analysis.

Receiving details. Detailing is one of the most common methods of analysis in many fields of science, including the analysis of the financial and economic activities of economic entities. When combined with other techniques, detailing makes it possible to comprehensively evaluate the phenomena under study and reveal the causes of the situation. Depending on the complexity of the phenomenon, the indicators describing it are broken down by time, by the place of business transactions, by centers of responsibility or by components (terms or factors).

Analysis of indicators, detailed by chronological periods, reveals the dynamics and rhythm of the flow of economic phenomena. Detailing by time allows you to set the periods (months, days) in which the best or worst results fall.

The decomposition of data by the place of business transactions allows you to identify the most and least efficient divisions of the enterprise, as well as regions that are the best or, conversely, unsuccessful for the sale of products.

Method of expert assessments. Delphi Method – generalization of expert assessments concerning the prospects for the development of a particular economic entity. The peculiarity of the method is a consistent, individual anonymous survey of experts. This technique excludes the direct contact of experts among themselves and, consequently, the group influence that occurs when joint work and consisting in adapting to the opinion of the majority.

Analysis using the Delphi method is carried out in several stages, the results are processed by statistical methods. The prevailing opinions of experts are revealed, their points of view are converging. All experts are introduced to the arguments of those whose judgments are strongly out of the mainstream. After that, all experts can change their minds, and the procedure is repeated.

Morphological analysis is an expert method for a systematic review of all possible options for the development of individual elements of the system under study, based on complete and strict classifications of objects and phenomena, their properties and parameters. It is used in forecasting complex processes when scenarios are written by different groups of experts and compared with each other to obtain a comprehensive picture of future development.

Method of situational analysis and forecasting. This method is based on models designed to study functional or rigidly determined relationships, when each value of a factor attribute corresponds to a well-defined non-random value of the resultant attribute. As an example, we can cite the dependencies implemented in the framework of the well-known factor analysis model of the DuPont company. Using this model and substituting into it the forecast values of various factors, for example, sales proceeds, asset turnover, the degree of financial dependence, etc., it is possible to calculate the forecast value of one of the main performance indicators - the return on equity ratio.

balance method. This method is used when studying the ratio of two groups of interrelated indicators, the results of which should be equal to each other. It owes its name to the balance sheet, which was one of the first historical examples of linking a large number of economic indicators two equal totals. The use of the method is especially widespread in the analysis of the correct placement and use of economic assets and sources of their formation. The balance linking technique is also used in the study of functional additive relationships, in particular, in the analysis of the commodity balance, as well as to verify the completeness and correctness of the calculations made in factor analysis: the total change in the effective indicator should be equal to the sum of changes due to individual factors.

Factor analysis based on rigidly determined models. In economic research, a factor is understood as the conditions necessary for carrying out a given economic process, as well as the reason driving force this process, which determines its nature or one of its main features. The results of economic activity are influenced by many factors that are interconnected, dependent and conditional.

tricks chain substitutions and arithmetic differences. The method of chain substitutions is also called the method of sequential (gradual) isolation of factors. This method is designed to measure the impact of a change in factor characteristics on a change in the effective indicator when studying functional dependencies. The validity of the application of the method was substantiated by K. Marx when studying the influence of three factors on the relative price of labor power: duration, productive power and intensity of labor. He proposed to sequentially consider each factor as a variable, fixing all the others, and so on in turn.

integral method. The advantages of the integral method should be recognized as the complete decomposition of the factors and the absence of the need to establish the order of the factors.

The method also has significant drawbacks. These include the significant complexity of calculations even using the above formulas, as well as the existence of a fundamental contradiction between the mathematical basis of the method and the nature of economic phenomena. The fact is that most of the phenomena and quantities in the economy are of a discrete nature, so it is pointless to consider infinitesimal increments, as required by the application of the integral method.

Forecasting based on proportional dependencies. The basis of this method is the thesis that it is possible to identify a certain indicator that is the most important from the standpoint of the characteristics of the company's activities, which, thanks to this property, could be used as a base for determining the forecast values of other indicators in the sense that they are "tied" to the base indicator using the simplest proportional dependencies. As a base indicator, either sales proceeds or the cost of sold (manufactured) products are most often used. The validity of this choice is quite easily explained from the standpoint of logic and, moreover, finds confirmation in the study of the dynamics and relationships of other indicators that describe certain aspects of the company's activities.

The method is based on the assumption that: a) the values of most balance sheet and income statement items change in direct proportion to sales volume; b) the levels of proportionally changing balance sheet items that have developed in the company and the ratios between them are optimal (meaning that, for example, the level of inventories at the time of analysis and forecasting is optimal).

Method of averages. In any set of economic phenomena or subjects, there are differences between the individual units of this set. Simultaneously with these differences, there is something in common that unites the totality and allows us to attribute all the subjects and phenomena under consideration to one class. For example, all workers of the same shop, performing the same work, perform it in different ways, with different productivity. However, despite some individual differences, you can determine the average output, or average productivity, per worker in the shop. It is possible to average the profitability of an enterprise over several consecutive quarters, obtaining the value of the average profitability, and so on.

The role of averages, therefore, is to generalize, i.e. replacing the set of individual values of a feature with an average value characterizing the entire set of phenomena. The average value generalizes qualitatively homogeneous values of a trait and, therefore, is a typical characteristic of a trait in a given population. For example, the average turnover per worker is a typical characteristic of a city's trading network.

Of course, the average value is not fixed once and for all: the average output per employee of a normally functioning enterprise is constantly growing. The average cost per unit of output tends to fall as output increases. Thus, not only the average values themselves, but also the trends in their change can be considered as indicators of the position of the enterprise in the market and the success of its financial and economic activities in this industry.

Data grouping method. Grouping is the division of a data set into groups in order to study its structure or relationships between components. In the grouping process, the units of a population are allocated to groups in accordance with the following principle: the difference between units assigned to the same group should be less than the difference between units assigned to different groups. The most important issue in conducting this kind of research is the choice of the grouping interval.

The basic rule for grouping is the following: there should be no empty or sparsely filled intervals.

In the analysis of financial and economic activity, two types of groupings are mainly used: structural and analytical.

Structural groupings are designed to study the structure and composition of the population, the shifts occurring in it relative to the selected variable feature. Analytical groupings are designed to study the relationship between two or more indicators that characterize the studied population. One of the indicators is considered as effective, and the rest - as factorial. Analytical grouping can be used to calculate the strength of the relationship between factors.

Elementary Methods for Processing Calculated Data. When studying the totality of values of the studied quantities, in addition to the averages, other characteristics are also used. When analyzing large data arrays, two aspects are usually of interest: first, the quantities that characterize a series of values as a whole, i.e. characteristics of the community, and secondly, the quantities that describe the differences between the members of the population, i.e. characteristics of spread (variation) of values.

In addition, the following values are used as indicators of generality: the middle of the interval, mode, and median.

The following quantities are most often used as indicators of the range and intensity of the variation of indicators: the range of variation, the average linear deviation, the standard deviation, the variance and the coefficient of variation.

Index method. Index – it is a statistical indicator representing the ratio of two states of a feature. With the help of indices, comparisons are made with the plan, in dynamics, in space. The index is called simple(synonyms: private, individual), if the feature under study is taken without taking into account its connection with other features of the phenomena being studied. A simple index looks like

where P1 and P0 are the compared feature states.

The index is called analytical(synonyms: general, aggregate), if the trait under study is taken not in isolation, but in connection with other traits. An analytical index always consists of two components: an indexed feature R(the one whose dynamics is being studied) and the weight attribute q. With the help of signs-weights, the dynamics of a complex economic phenomenon is measured, the individual elements of which are incommensurable. Simple and analytical indices complement each other

where q 0 or q 1 - weight sign.

With the help of indices in the analysis of financial and economic activity, the following main tasks are solved:

Evaluation of the change in the level of the phenomenon (or the relative change in the indicator);

Identification of the role of individual factors in changing the effective feature;

Evaluation of the impact of changes in the structure of the population on the dynamics.

Correlation analysis. Correlation analysis is a method of establishing a relationship and measuring its tightness between observations that can be considered random and selected from a population distributed according to a multivariate normal law.

A correlation is a statistical relationship in which different values of one variable correspond to different mean values of another. Correlations can arise in several ways. The most important of them is the causal dependence of the variation of the resultant attribute on the change in the factorial one. In addition, this kind of connection can be observed between two effects of the same cause. The main feature of correlation analysis should be recognized that it establishes only the fact of the existence of a relationship and the degree of its closeness, without revealing its causes.

Regression analysis. Regression analysis is a method of establishing an analytical expression of a stochastic relationship between the studied features. The regression equation shows how, on average, changes at when changing any of xi, and looks like

y= f(x1, x2, …, xn)

where y - dependent variable (it is always one);

xi– independent variable factors - there may be several of them.

If there is only one independent variable, this is a simple regression analysis. If there are several P 2), then such an analysis is called multivariate.

Regression analysis is used mainly for planning, as well as for the development of a regulatory framework.

cluster analysis . Cluster analysis is one of the methods of multivariate analysis, designed for grouping (clustering) a population, the elements of which are characterized by many features. The values of each of the features serve as the coordinates of each unit of the studied population in the multidimensional space of features. Each observation, characterized by the values of several indicators, can be represented as a point in the space of these indicators, the values of which are considered as coordinates in a multidimensional space.

Analysis of variance. Analysis of variance is a statistical method that allows you to confirm or refute the hypothesis that two data samples belong to the same general population. With regard to the analysis of the activities of an enterprise, we can say that analysis of variance allows you to determine whether groups of different observations belong to the same set of data or not.

Analysis of variance is often used in conjunction with grouping methods. The task of conducting it in these cases is to assess the significance of differences between groups. To do this, determine the group dispersions σ12 and σ 22, and then statistically Student's or Fisher's test is used to check the significance of differences between groups.

Decision tree construction method. This method is included in the system of situation analysis methods and is used in cases where the predicted situation can be structured in such a way that key points, in which either it is necessary to make a decision with a certain probability (the role of an analyst or manager is active), or some event also occurs with a certain probability (the role of an analyst or manager is passive, but some circumstances independent of his actions are significant).

Linear programming. The linear programming method, which is the most common in applied economic research due to its fairly clear interpretation, allows an economic entity to justify the best (by formal criteria) solution under more or less severe restrictions regarding the resources available to the enterprise. With the help of linear programming in the analysis of financial and economic activity, a number of problems are solved, primarily related to the activity planning process, which allows it to find optimal output parameters and ways to make the best use of available resources.

Sensitivity analysis. Under conditions of uncertainty, it is never possible to determine in advance exactly what the actual values of a given quantity will be after a certain time. However, for successful planning of production activities, it is necessary to provide for changes that may occur in future prices for raw materials and final products of the enterprise, for a possible decrease or increase in demand for goods produced by the enterprise. To do this, an analytical procedure called sensitivity analysis is performed. This method is often used in the analysis investment projects, as well as when predicting the value of the net profit of the enterprise.

Sensitivity analysis is to determine what will happen if one or more factors change their value. It is practically impossible to perform the analysis of simultaneous changes in several factors manually; for this, a computer should be used. We will consider the sensitivity of net profit to a change in only one factor (for example, sales volume) with all the others unchanged.

Methods of financial calculations. Financial calculations, based on the concept of the time value of money, are one of the cornerstones of financial analysis and are used in its various sections.

Accretion and discount operations. The simplest type of financial transaction is a one-time loan of a certain amount PV with the condition that after some time t large amount will be refunded F.V. The effectiveness of such a transaction can be characterized in two ways: either with the help of an absolute indicator - growth (FV– PV), or by calculating some relative indicator. Absolute indicators are most often not suitable for such an assessment due to their incompatibility in the spatio-temporal aspect. Therefore, they use a special coefficient - the rate. This indicator is calculated as the ratio of the increment of the initial amount to the base value, which, obviously, can be taken either PV, or F.V. Thus, the rate is calculated according to one of two formulas

In financial calculations, the first indicator also has names: "interest rate", "percentage", "growth", "rate of interest", "rate of return", "yield"; and the second is "discount rate", "discount rate", "discount". It is obvious that both rates are interconnected, i.e., knowing one indicator, you can calculate another

Both indicators can be expressed either in fractions of a unit or as a percentage. It's obvious that
rt > dt, and the degree of discrepancy depends on the level of interest rates prevailing at a particular point in time. So if rt= 8%, dt= 7.4%, the discrepancy is relatively small; if
rt= 80%, then dt= 44.4%, i.e. rates vary significantly.

Instruction

To draw a general conclusion about the efficiency of the enterprise, calculate the level of profitability, which is the ratio of the profit of the enterprise to the value of fixed and working capital. This indicator combines a number of coefficients (return on capital, sales, goods, etc.). Profitability is an integral indicator. It shows the measure of its attractiveness to investors.

When analyzing the activities of the enterprise, please note that for a more detailed study of its condition, it is necessary to conduct a factor analysis of the results obtained. After all, each indicator that reflects the use of production resources is influenced by other indicators.

note

The performance of an organization as a whole is influenced by many factors:
- general economic situation in the country and in the market;
- natural and geographical position of the enterprise;
- industry affiliation;
- factors determined by the functioning of the enterprise (price and marketing policy, the degree of use of production resources, the identification and use of on-farm reserves, etc.).

Analysis financial reporting is an assessment of the solvency, creditworthiness, profitability, as well as the investment attractiveness of the enterprise. Conducting an analysis reporting firms gives potential partners the opportunity to draw a conclusion about the need for further work with it.

Instruction

To quickly and efficiently conduct an analysis, it is not necessary to have all the company's reports at hand. For this, only two forms are needed: "Balance Sheet" and "Profit and Loss Statement". It is good if it is possible to see the indicators in dynamics for 2-3 years.

When analyzing the financial reporting it is necessary to pay attention to absolute indicators that allow one to judge the sources available to the enterprise, their spending, the availability and distribution of profits, and financial resources. At the same time, the most problematic items should be identified, as well as their indicators with previous reporting periods (for example, the volume of work in progress, overdue and accounts payable, etc.).

Next, a horizontal analysis of all indicators of the financial reporting. In this case, the change in percentages over several years is determined. For example, the growth of revenue, net profit, interest and loans, and other items is calculated.

In addition, a vertical analysis is carried out, which involves calculating the share of each indicator reporting in total. For example, the percentage of overdue accounts payable of short-term liabilities, the share finished products in the amount of reserves.

In some cases, when analyzing financial reporting it is useful to compare the obtained indicators with the industry average or with the indicators of competing firms in order to identify the place of the enterprise in the market.

What is the financial analysis of the enterprise

Financial analysis should be understood as the complex use of certain procedures and methods for an objective assessment of the state of the enterprise and its economic activity. The basis for the assessment is quantitative and qualitative accounting information. It is after its analysis that specific managerial decisions are made.

Financial analysis is focused on the study of economic, technical and organizational level work of the enterprise, as well as departments related to it. The goals of financial analysis include the assessment of the financial and industrial economic activity of the company, including the diagnosis of bankruptcy.

Financial Analysis Priorities

The financial and economic analysis of the state of the enterprise sets specific tasks, the fulfillment of which determines the accuracy of the analytics result. We are talking about the discovery of reserves and production opportunities that were not used, about assessing the quality, establishing the impact of specific activities on the overall results of management and identifying the factors that caused deviations from the standards. In the process of analysis, a forecast of the expected results of the enterprise's activities and the preparation of information necessary for making a management decision are also carried out.

It can be argued that the financial analysis of the enterprise plays a role financial management both in the company itself and in the process of cooperation with partners, tax authorities, financial and credit system. It takes into account business activity, financial stability, profitability and profitability. The analysis itself can also be defined as a tool for managing, planning, as well as monitoring the company's activities and its diagnostics.

At the same time, it should be noted that the analysis of specific aspects of the enterprise's activity is based on the analysis of the system of indicators, moreover, in a dynamic state. This is explained by the fact that the financial and production and economic activities of the company, as well as its divisions, have interrelated indicators. For this reason, changes in specific indicators can affect the final financial technical and economic indicators of the enterprise.

Financial and economic analysis of the enterprise: goals

Speaking about this form of analysis of the company's activities, it is worth noting that it involves a combination of deduction and induction methods. In other words, during the study of single indicators, the analyst should also take into account the general ones.

Another important principle is that when analyzing an enterprise, all types of business processes are studied taking into account their interdependence, interdependence and interconnection. As for the analysis of factors and causes, in this case, the analytics is based on the understanding of the following principle: each factor and cause must receive an objective assessment. Therefore, both causes and factors are initially studied, after which their classification into groups follows: secondary, main, insignificant, essential, little determining and determining.

The next step is to study the influence on economic processes of the determining, basic and significant factors. On the other hand, little-determining and insignificant factors are studied only if necessary and only after the completion of the main part of the analysis. It is worth considering the fact that financial analysis does not always involve the study of all factors, since this is relevant only in some cases.

At the same time, if we talk about the exact goals of the financial analysis of the enterprise, it makes sense to define the following components of the assessment process:

analysis of the ability to repay loans;
tracking the state of the enterprise at the time of assessment;
bankruptcy prevention;
assessment of the value of the company in case of its merger or sale;
tracking the dynamics of the financial condition;
analysis of the enterprise's ability to finance investment projects;
making a forecast of the financial activity of the enterprise.

It should be noted that in the process of studying the financial condition of an enterprise, the help of a financial analyst can be used by those economic entities that are focused on obtaining extremely accurate and objective information about the activities of the enterprise.

These entities can be divided into two categories:

External: creditors, auditors, government agencies, investors.
Internal: shareholders, audit and liquidation commission, management and founders.

Another purpose for which financial analysis can be carried out, but not at the initiative of the enterprise, is to assess the investment potential and creditworthiness of the company. Such analytics, as a rule, is of interest to banks, for which it is important to ensure the solvency and profitability of the enterprise. This is logical, since any potential investor is interested in obtaining information regarding the liquidity of the company and the degree of risk regarding the loss of the deposit.

Features of internal and external analysis

Internal financial accounting and analysis is necessary in order to meet the needs of the enterprise itself. It can be focused both on identifying the degree of liquidity of the company, and on a thorough assessment of its results within the last reporting period. Such valuation methods are relevant when a financial analyst or firm's management intends to determine how realistic and relevant the allocation of funds for the expansion of production that was planned, and what effect additional costs can have on it.

With regard to external financial analysis, it is carried out by analysts who are not related to the enterprise. They also do not have access to internal information of the company.

If carried out internal analysis, then there will be no problems with attracting information of any category, including the one that is not available. In case of external analysis Initially, some limitations of assessment methods due to the lack of information in full are taken into account.

Types of financial analysis

Analytics, with the help of which the state of the enterprise is assessed, can be divided into several key types according to the content of the management process:

retrospective, or current analysis;
perspective (preliminary, predictive);
operational financial and economic analysis;
analysis that takes into account the results of a particular period of time.

Each of the types is used depending on the key task.

Methods of financial analysis

The current methods of financial analytics include the following areas:

Vertical analysis. This is one of the types of assessment of the financial statements of an enterprise, in which the share of balance sheet items and various types of liabilities and assets is analyzed. With this technique, the distribution of resources is shown in shares.

Horizontal analysis. We are talking about the financial analytics of the company, in which a dynamic assessment of the balance sheet items is made. Both the nature and the direction of the trend are assessed.
Ratio analysis. With this type, financial, economic and production figures based on financial statements. Such financial and accounting analysis also examines reports on losses, profits and other regulatory documentation. The calculation of the coefficients makes it possible to evaluate the effectiveness and efficiency of various resources, activities and capital of the company, including.
Trend analysis. With such an assessment, each reporting position is compared with specific previous periods, as a result, the trend of the enterprise's movement is determined. With the help of the established trend, the possible values of future indicators are formed. In other words, a prospective analysis is carried out.
Factor analysis. In this case, the impact assessment is used specific factors on the company's bottom line. Stochastic and deterministic methods are used for research.
Comparative analysis. We are talking about on-farm analytics of the summary indicators of shops, divisions, subsidiaries, etc. An inter-farm financial analysis of the organization is also carried out in relation to the indicators of competing enterprises.

Ratio analysis as the main tool of financial analytics

As a key method of financial analysis, you can define the coefficient. This is explained by the fact that a quantitative assessment of the state of the company and the adoption of various managerial decisions aimed at changing specific indicators are made on the basis of financial and economic ratios. In this case, one can observe a direct relationship between those resources of the company that were taken into account and the efficiency of their operation, expressed through the values of financial and economic ratios and data in the balance sheet items.

This method of financial analysis involves the evaluation of four relevant groups of economic indicators:

Profitability (profitability) ratios. Such data serves to reflect the profitability of the company's capital when generating income through the use of assets of various types.
Coefficients of financial reliability (stability). In this case, the level of own and borrowed capital of the company is demonstrated, and the capital structure of the company is also displayed.
Solvency (liquidity) ratios. Reflect the ability and ability of the organization to timely short-term and long-term debt obligations.

Turnover ratios (business activity). Using this information, you can determine the number of company assets for a particular reporting period and the intensity of their turnover, among other things.

The method of financial analysis, in which the coefficients of the enterprise are taken as the basis for calculations, is considered important because it makes it possible to identify crisis phenomena in the company in a timely manner and take relevant measures to stabilize the situation.

This type of analysis is part of the strategic management of the organization.

Examples of financial analytics

In order to understand the essence of assessing the state of the organization, it is necessary to study the example of financial analysis. For example, for the entire period of the period under study, the margin was stable, but there was a certain decrease.

During the study period, an increase in the turnover rate of goods by 35 days was revealed. This indicates the presence of illiquid stocks and an increase in the number of stocks of goods. At the same time, the optimal value of turnover for hardware stores is 80-90 days.

As for accounts receivable, the enterprise does not have it - all retail of the company is made on the terms of payment upon delivery. Accounts receivable turns over within 4-7 days, which can be defined as a positive indicator.

At the same time, it increased by 35 days and operating cycle within the period covered by the analysis. It is obvious that it (the cycle) corresponds to an increase in the duration of the turnover. Due to the increase in the term of trade turnover, the term of the financial cycle has also increased.

An example of this kind defines the financial analysis of an enterprise as sufficient stable activity, at which overstocking of the warehouse is possible. To optimize the process as much as possible, it is necessary to revise the procurement policy in order to reduce the turnover period.

How to analyze bank activity

The financial analysis of the bank is focused on ensuring quality management through development key parameters his activities. We are talking about such indicators as the profitability of operations, capital and payment turnover, the structure of assets and liabilities, the efficiency of the bank's divisions, the risks of the portfolio of financial resources and intra-bank pricing.

In order for the study of the state of the bank to be successful, certain conditions must be met: the information used for the analysis must be reliable, accurate, timely and complete. If the provided data does not correspond to reality, the applied methods of financial analysis will not be able to lead to objective conclusions. This means that the impact of some problems will be underestimated, which may worsen the situation.

The reliability of information is assessed in the process of inspection checks and during documentary supervision.

Methods for researching the state of the bank

Various aspects of the bank's activities are evaluated through the use of scientific and methodological tools. It is with their help that you can develop the optimal solution to specific problems of a managerial nature.

There are popular methods of bank financial analysis:

Dynamic balance sheet equation. This technique involves accounting for profit and loss. Through such management, a factorial financial assessment of the state of the bank and the fact how profitable its activities are is carried out.
Modified balance sheet management (liabilities are equal to assets). In this case, financial analysis involves a quick assessment of the effectiveness of the bank's liability management.
Basic balance sheet management (assets are equal to the sum of equity and paid liabilities). The key principle of this valuation technique is the effective disposal and ownership of all bank assets.
The capital balance equation (the bank's capital is equal to assets minus paid liabilities). This type of equation is relevant when it is necessary to obtain a final assessment of how effective the management of existing capital was as part of the increment of own capital. This methodology is also used to identify and exploit higher yield reserves.

Thus, we can conclude that the financial analysis of the enterprise, an example of which was given above, is a necessary measure for determining the state and profitability of the company. Without such analytics, the efficiency of the enterprise can be significantly reduced, and at the same time, rehabilitation measures may not be relevant if the assessment is not timely.

Analysis of the financial condition of the enterprise:

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