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Introduction
The activities of any enterprise are focused on obtaining certain results. However, some enterprises confidently achieve their goals, while others are less successful. Many associate the success of an enterprise with the right choice of type of activity, the availability of sufficient resources and the ability to navigate the stormy sea of a market economy. Successful planning of an enterprise's economic activities undoubtedly depends on the correct initial orientation and favorable initial conditions for its activities - the provision of material, financial and labor resources. However, a significant role is played by how the enterprise is managed in a turbulent sea of economic surprises, inflationary surprises, and fierce competition. Management in a broad sense as a complex socio-economic process means influencing a process, object, system to maintain their stability or transfer from one state to another in accordance with given goals. Management in the narrow sense represents specific ways (methods) of influencing an object of management to achieve a specific goal. Management is carried out on the basis of various forms and methods of influencing the control object.
Analysis of the activities of an economic entity is one of the most effective management methods, the main element in justifying management decisions.
The relevance of this issue has led to the development of methods for analyzing the financial condition of enterprises and improving it. These methods are aimed at expressly assessing the financial condition of an enterprise, preparing information for making management decisions as part of improving the financial condition of the enterprise.
The successful operation of enterprises in modern conditions requires increasing production efficiency, competitiveness of products and services based on the introduction of scientific and technological progress, effective forms of business and production management, intensification of entrepreneurship, etc. An important role in the implementation of this task is given to the analysis of the economic activities of enterprises. With its help, strategies and tactics for the development of the enterprise are developed, plans and management decisions are substantiated, their implementation is monitored, reserves for increasing production efficiency are identified, and the results of the activities of the enterprise, its divisions and employees are assessed.
The purpose of analysis and diagnostics of the financial and economic activities of an enterprise is to increase the efficiency of its work on the basis of a systematic study of all types of its activities. In the process of analysis and diagnostics of the financial and economic activities of an enterprise, a set of technological, socio-economic, legal, environmental and other processes, patterns of formation, construction and functioning of management systems are examined; principles of constructing organizational structures, the effectiveness of the methods used; information, logistics and personnel support.
The purpose of this study is to determine the financial condition of the enterprise and develop actions to improve it.
To achieve this goal, we formulated the following tasks:
preliminary review of financial statements;
characteristics of the enterprise's property: non-current and current assets;
1. assessment of financial stability;
2. characteristics of sources of funds: own and borrowed;
3. analysis of profit and profitability;
4. development of measures to improve the financial and economic activities of the enterprise.
The subject of research in this work is the financial condition of the enterprise.
The object of study of this work is the enterprise Tekhkom-Avtomatika LLC.
The research methods used in the work are general scientific methods: analysis, observation, comparison and the monographic method.
Information support: regulatory materials, estimates, price tags, accounting and reporting, statutory information.
Methodological support:
Structure of the final qualifying work: introduction, three chapters, conclusion, list of references and applications.
The introduction substantiates the relevance of the topic under study; the object and subject of research are indicated; the purpose and objectives of the work are determined; research methods are listed.
The first chapter presents theoretical aspects of the financial condition of the enterprise.
In the second chapter, we conducted a financial analysis of the activities of Tekhkom-Avtomatika LLC.
In the third chapter, we developed measures to improve the financial condition of Tekhkom-Avtomatika LLC and calculated their effectiveness.
In conclusion, conclusions based on the results of the study are presented in accordance with the stated goal and objectives of the work.
The study period was from 2006 to 2010.
The effect of taking measures to improve the financial performance of the enterprise can be expressed in reducing the loss of the enterprise by 96.06% or by 6,751 thousand rubles. Measures to optimize accounts receivable can have the effect of freeing up an additional amount of money that the company can spend on paying off its most urgent obligations.
1. Theoretical aspects of assessing and improving the financial condition of an enterprise
1.1 Financial condition of the enterprise as a subject of research
financial balance management
Economic analysis as a science is a system of special knowledge based on the laws of development and functioning of systems and aimed at understanding the methodology for assessing, diagnosing and forecasting the financial and economic activities of an enterprise.
Each science has its own subject. The subject of economic analysis refers to the economic processes of enterprises, their socio-economic efficiency and the final financial results of their activities, which are formed under the influence of objective and subjective factors, reflected through the system of economic information.
The subject of economic analysis determines the tasks facing it. Among the main ones we highlight:
Increasing the scientific and economic validity of business plans, business processes and standards in the process of their development;
An objective and comprehensive study of the implementation of business plans, business processes and compliance with regulations;
Determining the efficiency of use of labor and material resources;
Monitoring the implementation of commercial settlement requirements;
Identification and measurement of internal reserves at all stages of the production process;
Checking the optimality of management decisions.
Economic analysis is a necessary element of economic management. Depending on management needs, types of analysis can be distinguished (Table 1).
In practice, certain types of economic analysis are rare.
Table 1. Classification of types of economic analysis
|
Classification sign |
Type of analysis |
|
|
By management functions |
||
|
Level of information support |
internal management analysis external financial analysis |
|
|
prospective (preliminary) analysis retrospective (follow-up) analysis operational analysis final (final) analysis |
||
|
Nature of control objects |
analysis of stages of expanded reproduction industry analysis analysis of departments and enterprises analysis of the constituent elements of production and industrial relations |
|
|
Other types of classification |
||
|
Subjects of analysis |
analysis on instructions from management and economic services analysis on behalf of owners and management bodies analysis on behalf of counterparties (suppliers, buyers, credit and financial authorities) |
|
|
Periodicity |
annual analysis quarterly analysis monthly analysis decade analysis daily analysis |
|
|
full analysis local analysis thematic analysis |
||
|
Methods for studying an object |
complete analysis system analysis comparative analysis complete analysis sample analysis |
|
|
Degree of work automation |
PC analysis analysis without using a PC |
A market economy is characterized by the dynamism of situations in the external and internal environment of an enterprise. In these conditions, operational analysis plays an important role. Its distinctive features are complexity, computer processing of operational information arrays, and the use of its results at the level of individual functional services of the enterprise in the form of targeted fragmented information.
As is known, a comprehensive economic analysis of an economic entity begins with a study of its activities. Moreover, at the initial stage, an assessment is made of the current financial situation and the main trends in its change are identified. This analysis is called a general assessment of financial condition.
The information needed by the financial manager for analysis is summarized and systematized in the balance sheet, which is a visual financial model of the enterprise.
Financial analysis is a very important component of any economic study. The term “financial condition of an enterprise” is usually understood as an economic category that reflects the state of capital in the process of its circulation, and the ability of a business entity to develop at a fixed point in time.
With the help of financial analysis, the feasibility of implementing specific economic, investment and financial decisions is substantiated, and the degree of their compliance with the development goals of the enterprise is established.
World economic science has accumulated a wealth of experience in analyzing the financial and economic activities of enterprises.
The founder of systematic economic analysis is considered to be Jacques Savary (1622-1690), who introduced the concept of synthetic and analytical accounting. At the end of the 19th and beginning of the 20th centuries, a trend in accounting appeared - balance sheet science. In Russia, the science of balance analysis flourished in the first half of the 20th century.
Financial condition refers to the ability of an enterprise to finance its activities. It is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability. The financial condition can be stable, unstable and in crisis. The ability of an enterprise to make payments on time and to finance its activities on an expanded basis indicates its good financial condition. The financial condition of an enterprise depends on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, this has a positive effect on the financial position of the enterprise. And vice versa, as a result of shortfalls in the production and sale of products, there is an increase in its cost, a decrease in revenue and the amount of profit and, as a consequence, a deterioration in the financial condition of the enterprise and its solvency. A stable financial position, in turn, has a positive impact on the implementation of production plans and provision of production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the systematic receipt and expenditure of funds, implementing accounting discipline, achieving rational proportions of equity and borrowed capital and its most effective use.
To survive in a market economy and prevent an enterprise from going bankrupt, you need to know well how to manage finances, what the capital structure should be in terms of composition and sources of education, what share should be taken by own funds and what by borrowed funds. You should also know such concepts of a market economy as business activity, liquidity, solvency, creditworthiness of an enterprise, profitability threshold, margin of financial stability (safety zone), degree of risk, financial leverage effect and others, as well as the methodology for their analysis.
The main goal of the analysis is to promptly identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency. In this case, it is necessary to solve the following problems:
1. Based on the study of the cause-and-effect relationship between various indicators of production, commercial and financial activities, assess the implementation of the plan for the receipt of financial resources and their use from the perspective of improving the financial condition of the enterprise.
2. Forecasting possible financial results, economic profitability, based on the actual conditions of economic activity and the availability of own and borrowed resources, developing models of financial condition for various options for using resources.
3. Development of specific measures aimed at more efficient use of financial resources and strengthening the financial condition of the enterprise.
To assess the financial condition of an enterprise, a whole system of indicators characterizing changes is used:
The capital structure of the enterprise by its placement and sources of education;
The effectiveness and intensity of its use;
Solvency and creditworthiness of the enterprise;
The reserve of its financial stability;
Analysis of the financial condition of an enterprise is based mainly on relative indicators, since absolute balance sheet indicators in conditions of inflation are almost impossible to bring into a comparable form.
The relative indicators of the analyzed enterprise can be compared:
With generally accepted “norms” for assessing the degree of risk and predicting the possibility of bankruptcy;
With similar data from other enterprises, which allows you to identify the strengths and weaknesses of the enterprise and its capabilities;
With similar data for previous years to study trends in improvement and deterioration of the financial condition of the enterprise.
Analysis of the financial condition is carried out not only by the managers and relevant services of the enterprise, but also by its founders, investors in order to study the efficiency of the use of resources, banks to assess lending conditions and determine the degree of risk, suppliers to receive timely payments, tax inspectorates to fulfill the budget revenue plan etc. In accordance with this, analysis is divided into internal and external.
Internal analysis is carried out by enterprise services and its results are used for planning, monitoring and forecasting financial condition. Its goal is to establish a systematic flow of funds and place own and borrowed funds in such a way as to ensure the normal functioning of the enterprise, obtain maximum profits and avoid bankruptcy.
External analysis - carried out by investors, suppliers of material and financial resources, regulatory authorities on the basis of published reports. Its goal is to establish the possibility of a profitable investment in order to ensure maximum profit and eliminate the risk of loss.
In a market economy, the key to survival and the basis for a stable position of an enterprise is its financial stability. It reflects the state of financial resources in which an enterprise, freely maneuvering funds, is able, through their effective use, to ensure the uninterrupted process of production and sales of products, as well as the costs of its expansion and renewal.
Determining the boundaries of the financial stability of an enterprise is one of the most important economic problems in the context of the transition to a market, since insufficient financial stability can lead to a lack of funds for the enterprise to develop production, its insolvency and, ultimately, to bankruptcy, and “excessive” stability will hinder development by burdening the enterprise's costs with excess inventories and reserves.
To assess the financial stability of an enterprise, an analysis of its financial condition is necessary. Financial condition is a set of indicators reflecting the availability, placement and use of financial resources. This is the ability of a company to finance its activities.
Financial condition is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability.
The ability of an enterprise to make payments on time and to finance its activities on an expanded basis indicates its good financial condition.
The main goal of financial activity is to decide where, when and how to use financial resources for the effective development of production and maximum profit.
The purpose of the analysis is not only and not so much to establish and evaluate the financial condition of the enterprise, but also to constantly carry out work aimed at improving it. An analysis of the financial situation shows in which specific areas this work needs to be carried out. In accordance with this, the results of the analysis 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.
The main goal of the analysis is to promptly identify and eliminate shortcomings in financial activities and find reserves for improving the condition of the enterprise and its solvency.
Modern financial analysis has certain differences from traditional analysis of financial and economic activities. First of all, this is due to the growing influence of the external environment on the operation of enterprises. In particular, the dependence of the financial condition of business entities on inflation processes, the reliability of counterparties (suppliers and buyers), and increasingly complex organizational and legal forms of functioning has increased.
As a result, the tools of modern financial analysis are expanding due to new techniques and methods that allow us to take these phenomena into account.
For the purposes of market relations, the role of analyzing the financial condition of an enterprise is extremely important. This is due to the fact that enterprises acquire independence and bear full responsibility for the results of their production and economic activities to co-owners (shareholders), employees, banks and creditors.
The financial condition of an enterprise is a set of indicators that reflect its ability to repay its debt obligations. Financial activity covers the processes of formation, movement and ensuring the safety of the enterprise’s property, control over its use.
The financial condition is the result of the interaction of all elements of the system of financial relations of the enterprise and is therefore determined by the totality of production and economic factors.
The content and main goal of financial analysis is to assess the financial condition and identify the possibility of increasing the efficiency of the functioning of an economic entity with the help of rational financial policy. The financial condition of an economic entity is a characteristic of its financial competitiveness (i.e., solvency, creditworthiness), the use of financial resources and capital, and the fulfillment of obligations to the state and other economic entities.
In the traditional sense, financial analysis is a method of assessing and forecasting the financial condition of an enterprise based on its financial statements.
A set of economic indicators that characterize in more detail and accurately the financial position and activity of an enterprise should involve the calculation of the following groups of indicators: liquidity analysis (or solvency), financial stability analysis, turnover analysis (or business activity), profitability analysis and labor efficiency analysis.
Solvency indicators reflect the ability of an enterprise to repay short-term debt with its own easily realizable funds.
Analysis of the turnover of current liabilities allows us to estimate the average duration of deferred payments that the company's creditors provide to the company. Current liabilities include accounts payable, advances from customers and stable liabilities.
The purpose of profitability and profitability analysis is to assess the ability of an enterprise to generate income on funds and capital invested in current activities.
When analyzing profitability, the profitability of core activities, the profitability of investment activities and the profitability of the enterprise as a whole are considered separately. One of the components of assessing profitability is break-even analysis. Its goal is to determine the lower limit of profitability (break-even point), that is, the minimum amount of revenue required to cover the costs of production. The second task of break-even analysis is to assess the trend towards the critical point and identify the reasons that influenced this trend.
Characterizing the profitability of an enterprise involves calculating and analyzing the main indicators of economic and financial profitability, the most significant of which are total and net return on sales, return on assets, production assets and equity capital.
Currently, industrial enterprises are faced with the task of attracting the funds necessary to finance non-current and current assets in order to effectively conduct production and economic activities. Attracting borrowed capital leads to the appearance of the effect of financial leverage. The financial leverage indicator is the inverse of the autonomy ratio.
Thus, in this paragraph we examined the essence of the financial condition of the enterprise, its analysis and the significance of the results when developing plans for the development of the enterprise in the market.
1.2 Essence, goals and objectives of analyzing the financial condition of an enterprise
financial balance condition
The term “analysis” comes from the Greek word “analyzis”, which means “divide”, “dismember”. Analysis is the decomposition of the object being studied into elements, into internal components inherent in this object, and their study.
In market conditions, enterprise finance becomes especially important. Bringing to the fore the financial side of enterprise activity has recently been one of the most characteristic features of the economic life of developed capitalist countries. The increasing role of business finance should be seen as a trend occurring throughout the world.
The term “finance” comes from the Latin word “finansia” and arose in the 13th-15th centuries. in the trading cities of Italy and at first denoted any monetary payment. Enterprise finance is an economic category, the peculiarity of which lies in the scope of its action and its inherent functions. The modern financial system of the state consists of centralized and decentralized finance.
The research method in the broad sense of the word is understood as a dialectical method, on the basis of which specific methods are formed in each science, including financial analysis.
In order for the comparison results to provide correct analysis conclusions, it is necessary to establish the comparability of the compared indicators, i.e. their homogeneity and same quality. The comparability of analytical indicators is associated with the comparability of calendar periods, assessment methods, working conditions, inflationary processes, etc.
“The method of summary and grouping is to combine information materials into analytical tables, which 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 factors in the overall complex of their impact on the level of the aggregate financial indicator. The essence of the methods of chain substitutions is that, sequentially replacing each 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 number of chain substitutions depends on the number of factors influencing the aggregate financial indicator. Calculations start from the original base, when all factors are equal to the base indicator, so the total number of calculations per unit is greater than the number of determining factors. Analysis of the enterprise in comparison of competitor data with industry average and general economic data.
Factor analysis is an analysis of the influence of individual factors (reasons) on a performance indicator using deterministic and stochastic research techniques. Factor analysis can be either direct or reverse, i.e. synthesis - the combination of individual elements into a common effective indicator.
All of the listed methods of analysis are formalized. However, there are also informal methods: expert assessments, scenarios, psychological, morphological, etc., which are based on the description of analytical procedures at a logical level.
The use of analysis techniques for specific purposes of studying the state of the analyzed business entity constitutes the analysis methodology.
Various authors propose different methods of financial analysis. The detail of the procedural side of the financial analysis methodology depends on the goals set, as well as on various factors of information, time, methodological and technical support.
All methods have their advantages and disadvantages. Based on the goals set, this work uses a methodology for analyzing financial activities, based on the methodology of V.V. Kovaleva, V.K. Bykadorov and P.D. Alekseev with the addition of elements by E.S. Stoyanova and other authors who have a different opinion on this topic.
Types of financial analysis:
The main types of economic analysis and their characteristics according to the most important characteristics are classified as follows:
By industry:
Industry analysis is an analysis whose methodology takes into account the specifics of individual sectors of the economy (industry, agriculture, construction, transport, trade, etc.);
Intersectoral analysis is an analysis that is theoretical and the level of performance indicators. Deterministic analysis is used to study the functional relationships between factor and performance indicators;
Marginal analysis is a method of assessing and justifying the effectiveness of management decisions in business based on the cause-and-effect relationship of sales volume, cost and profit and dividing costs into constant and variable;
Economic-mathematical analysis is an analysis with the help of which the most optimal solution to an economic problem is found,
Environmental costs. It is carried out by environmental protection authorities and economic services of the enterprise;
Marketing analysis is an analysis carried out by the marketing service of an enterprise or association. Marketing analysis is used to study the external environment of the enterprise, the markets for raw materials and sales of finished products, its competitiveness, supply and demand, commercial risk, the formation of pricing policy, the development of tactics and strategies for marketing activities.
Information support for financial analysis.
The composition, content and quality of information that is involved in the analysis play a decisive role in ensuring the validity of the analysis of economic activity. The analysis is not limited only to economic data, but widely uses technical, technological and other information. All data sources for analysis are divided into planned, accounting and non-accounting.
Planning sources include all types of plans that are developed at the enterprise (prospective, current, operational, self-supporting tasks, technological maps), as well as regulatory materials, estimates, price tags, design assignments, etc.
Sources and accounting information are all data that contain accounting, statistical and operational accounting documents, as well as all types of reporting, primary accounting information.
The leading role in the information support of analysis belongs to accounting and reporting, where economic phenomena, processes, and their results are most fully reflected.
Studies of best practices obtained from various sources of information (Internet, radio, television, newspapers, etc.);
Materials of special surveys of the state of production at individual workplaces (timing, photography, etc.);
Statutory information.
In relation to the object of research, information can be internal (statistical, accounting, operational accounting and reporting data, planned data, regulatory data, etc.) and external (data from statistical collections, periodicals and special publications, conferences, business meetings, official, economic -legal documents, etc.).
In relation to the subject of research, information is divided into basic and auxiliary.
Based on the frequency of receipt, analytical information is divided into regular (planned and accounting data) and episodic (generated as needed).
Regular information, in turn, is divided into constant (codes, codes, chart of accounts, etc.), conditionally constant (plan indicators, standards) and variable (reporting data for a certain date).
In relation to the processing process, information can be classified as primary (data from primary accounting, inventories, surveys) and secondary (reporting, market surveys, etc.).
A number of requirements are imposed on the organization of information support for analysis: the analytical nature of information, its objectivity, unity, efficiency, rationality, etc.
Information base, conclusion confirming its reliability. Other information, production and financial accounting data that constitute a trade secret are not published; only the management of the enterprise in individual cases can expand the information provided for analysis.
Accounting statements are a unified system of data on the property and financial position of an organization and the results of its economic activities, compiled on the basis of accounting data in established forms.
Balance sheet and profit and loss account:
a) statement of changes in capital (form No. 3);
b) cash flow statement (form No. 4);
c) appendices to the balance sheet (form No. 5);
d) a report on the intended use of the funds received (form No. 6).
e) explanatory note;
f) an auditor's report confirming the reliability of the organization's financial statements, if they are subject to mandatory audit in accordance with federal laws.
Annual financial statements provide ample opportunities for a comprehensive analysis of the enterprise’s activities, and its most informative part is the balance sheet (form No. 1). It reflects the state of the property, equity capital and liabilities of the enterprise as of a certain date.
The balance sheet allows you to assess the effectiveness of the placement of the enterprise's capital, its sufficiency for current and future economic activities, assess the size and structure of borrowed capital, as well as the effectiveness of their attraction.
Based on the study of the balance, external users can: make decisions on the feasibility and conditions of doing business with this enterprise as a partner; assess the creditworthiness of the enterprise as a borrower; assess the possible risks of your investments, the feasibility of purchasing shares of a given enterprise and its assets, etc.
When analyzing the balance sheet, it is necessary first of all to establish what changes have occurred in its assets and liabilities during the analyzed period, and to evaluate these changes.
The term “balance” (from the Latin bis - twice and lanx - more often, which literally means “two-handed”) is used as a symbol of balance, equality. It is not a specific accounting term and is also widely used in other areas of economics, politics and everyday life.
In accounting, the word “balance sheet” has several meanings:
a) equality of results when making entries in accounts and grouping funds of an economic entity in various sections;
b) the result of the main reporting form;
c) name of the main reporting form.
The importance of the balance sheet as the main reporting form is extremely great, since this document allows you to get a fairly clear and unbiased picture of the property and financial position of the enterprise. The balance sheet reflects the state of the enterprise's funds in monetary terms as of a certain date in two sections: a) by composition (type); b) by sources of formation, i.e. the same amount of funds at the disposal of the enterprise is presented in two ways, which makes it possible to get an idea of where the financial resources of the enterprise are invested (balance sheet asset) and what are the sources of their origin (balance sheet liability). In our country, the balance sheet is traditionally presented in the form of a two-sided table, on the left side of which are the assets of the enterprise, and on the right - its liabilities; in this case, the total balance sheet assets and liabilities coincide. In Russian accounting and analytical practice, it is customary to call the balance sheet total the balance sheet currency.
Since one of the purposes of the balance sheet is to characterize changes in the financial condition of the enterprise for the reporting period, it contains two columns of indicators - at the beginning of the year and the end of the period (for example, a quarter, a balance sheet and a good command of the methodology for its analysis. To be able to read a balance sheet means to know the content of each its articles, methods of its evaluation and relationship with other balance sheet items, the nature of possible changes for each article and their impact on the financial position of the enterprise, its solvency.
The main factors determining the financial condition of the enterprise are, firstly, the implementation of the financial plan and replenishment as the need arises for its own working capital at the expense of profits and, secondly, the turnover rate of working capital (assets). The signal indicator in which the financial condition is manifested is the solvency of the enterprise, which means its ability to timely satisfy the payment requirements of suppliers of equipment and materials in accordance with business contracts, repay loans, pay staff, and make payments to the budget. Since the implementation of the financial plan mainly depends on the results of production and economic activities as a whole, we can say that the financial situation is determined by the most general indicator. Therefore, the income statement is also used to analyze the financial position.
The income statement (form No. 2) contains a comparison of the amount of all income of the enterprise from the sale of goods and services or other items of income and receipts with the amount of all expenses incurred by the enterprise to maintain its activities for the period from the beginning of the year. The result of this comparison is the gross (book) profit or loss for the period. The income statement consists of two sections. The first section reflects the stages of calculating financial results (gross profit or losses), the second section shows the directions for using the enterprise’s profit in the reporting period: for paying taxes, forming reserve and special funds, calculating dividends, etc.
The profit and loss statement gives an idea of the company's development trends, its financial and production capabilities, not only in the past and present, but also in the future.
For investors and analysts, the profit and loss statement is in many respects a more important document than the balance sheet of the enterprise, since it contains not frozen, one-time, but dynamic information about what successes the enterprise has achieved during the year and due to what aggregated factors, what is the scale of its activities.
The capital flow statement (form No. 3) consists of two sections, as well as background information. Section I “Equity capital” reflects the presence and movement of all types of sources of the organization’s own funds: authorized (share) capital, additional capital, reserve fund, retained earnings of previous years, accumulation funds, social fund. It also shows the means of targeted financing and revenues received from the budget and from industry and intersectoral extra-budgetary funds.
Section II “Other funds and reserves” reflects the presence and movement of consumption funds, reserves for future expenses and payments, and estimated reserves.
The cash flow statement (form No. 4) complements the balance sheet. If the balance sheet reflects the financial position of the organization at a certain point (the end of the reporting period), then the cash flow statement explains the changes that occurred with one of the components of the financial statements - cash from one balance sheet date to another. Information on the flow of cash and intangible assets, the composition of receivables and payables.
The report on the targeted use of funds received (Form No. 6) reflects the balances of targeted funds received by non-profit organizations in the form of entrance, membership, voluntary contributions and other sources.
One of the measures to improve the financial condition of an enterprise is to reduce accounts receivable.
It is very common for enterprises to have accounts receivable, since they have high income, which allows them to ship products with deferred payment to other organizations.
Accounts receivable from an enterprise means lending to its consumers and clients, often against the will of the creditor. As a result, the company is forced to invest part of its funds in this debt. Such investments are calculated on the basis of lost revenue.
There are a number of measures to reduce accounts receivable, which can be roughly combined into several groups:
Monitoring the status of settlements with customers, selecting business partners and the optimal scheme of relationships with them.
This can include an assessment of business reputation, scale and degree of influence, potential and existing partners and the possible consequences of their change; assessment of the conditions in which these partners operate, analysis of the financial condition of clients. You can also include suggestions for maintaining detailed accounts receivable accounts for customer accounts;
Targeting a wider range of consumers in order to reduce the risk of non-payment by one or more debtors;
Control over the ratio of receivables and payables, since a significant excess of receivables creates a threat to the financial stability of the enterprise and the attraction of additional expensive sources of financing;
Using the method of providing discounts for prepayment;
Appeal to forced collection of debts depending on the amount of debt and the scheme of mutual settlements between partners;
The use of financial instruments and institutions, such as the sale of debts to factoring companies, the use of bills of exchange in settlements.
If at any stage of the project the accounts receivable are repaid (decreased) or its average period is reduced, then this means disinvestment, that is, the release of funds, which should affect cash flow and, consequently, increase the liquidity of the enterprise’s assets.
One of the methods for reducing the receivables of an enterprise is the emergence of an intermediary between the seller and the buyer - a factor that acquires supply obligations for a certain commission percentage in exchange for immediate full or partial payment of money.
Factoring or forfeiting operations are the purchase by a bank or specialized company of the supplier’s claims to the buyer and their collection for a certain fee.
For loan terms from 6 months to 6 years, forfeiting is used and the forfeiter bears all risks for the acquired obligations without recourse to the assignee.
Transferable debt can be formalized in any form, but the most widespread is its registration with bills of exchange. When taking them into account, the problem arises of finding such a ratio of the interest rate provided by the supplier to the buyer of the loan, the methods of repayment and payment of interest, the discount rate of the factor - the company, so that as a result the seller of the product can receive its original cost.
In the process of implementing the financial strategy of an enterprise, much attention should be paid to areas of improving the financial condition of the enterprise, namely, increasing liquidity, solvency, financial stability and business activity.
The main directions for improving the financial condition of the enterprise are shown in Figure 1. Let us consider in detail the presented directions.
The direction “Optimization or cost reduction” involves actions to stop the decline in profits. A very effective mechanism is to create a system for effective cost control. Sometimes you can cut costs by simply starting to account for them. It has been noticed, for example, that when an enterprise begins to register outgoing long-distance and international calls of its employees by date, time and purpose, the total number of calls decreases due to a decrease in calls on personal matters of employees. In this case, a prerequisite is that employees support the existing cost accounting system. An important point in this direction is the analysis of the causes of costs, which allows you to take the necessary actions to eliminate the causes of unwanted cost growth. So, for example, if hospitality expenses are rising, it is useful to determine why employees are spending the company's money in expensive restaurants: because the company is actively expanding its customer base and the number of signed contracts is growing, or because controls over the use of hospitality facilities are simply weakened. It is also advisable to analyze the organizational structure in order to eliminate unnecessary levels of management and reduce labor costs.
The direction “Reorganization of inventory” assumes that inventories are classified into categories depending on the degree of their importance for increasing the stability of operations. The volumes of those types of inventories that are not critical to the functioning of the business should be reduced. At the same time, activities in the area of purchase orders should be intensified by introducing more effective control procedures, such as centralizing the storage and issue of goods, redistributing storage areas or improving document flow.
Direction “Getting additional funds from the use of fixed assets” After this, you can determine the most suitable communication channels for effectively communicating to market participants offers for the sale or lease of property. Property that could not be leased 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.
Figure 1. Main measures to improve the financial condition of the enterprise
The direction “Changing the structure of debt obligations” involves a detailed analysis of these obligations and possible 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 considered (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. It is aimed at minimizing costs. Especially under the threat of a crisis, it makes sense to refuse investments in capital construction, acquisition of new equipment, expansion of the sales network, etc., except in urgent cases. To determine them, it is necessary to assess which capital investment needs cannot be postponed to a later date. It is also necessary to abandon those capital expenditures that cannot provide an immediate return for the enterprise.
The direction “Increasing the flow of funds from interested financial sources not related to mutual trade” involves providing assistance to the main support groups - the bank, shareholders or owners.
The direction “Increasing production and sales” ensures an increase in funds received from the sale of products, i.e. an increase in absolutely liquid assets, and hence liquidity itself. For this purpose, it is necessary to identify the groups of goods that bring the greatest profit, to analyze the price and volume of products sold to determine the most reasonable compromise that will help the enterprise, despite a decrease in sales volumes, to 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. Reliability, accuracy, and validity of the methods used ensure the effectiveness of the forecasting system as a whole.
The financial condition of the enterprise is greatly influenced by: the cost of raw materials, the balance of receivables and payables, which ensures the financial stability of the enterprise, and the levels of profitability and liquidity of the enterprise are also greatly influenced.
All of the above factors can negatively or positively affect the financial condition of the enterprise.
The implementation of the above areas will improve the financial condition of the enterprise.
2. Analysis of the financial condition of the organization using the example of Tekhkom-Avtomatika LLC
2.1 General characteristics of the enterprise Tekhkom-Avtomatika LLC
Limited Liability Company "Tehkom-Avtomatika" is a wholesale and retail trade enterprise for industrial automation components. Tekhkom-Avtomatika LLC owns a pavilion that houses an office, a sales area and a warehouse. The company was founded in 2002 and is constantly expanding its range of clients.
Tekhkom-Avtomatika LLC receives only licensed products from manufacturing plants, with most of which contracts have been concluded for 5-8 years. The main range is thermostats, temperature sensors, pressure sensors, pressure gauges and frequency converters.
Tekhkom-Avtomatika LLC:
Cooperates with more than 60 instrumentation and automation manufacturers;
Offers a product range of more than 50,000 items;
Works at manufacturer prices;
Sells products from a warehouse in Barnaul, Omsk, Novosibirsk - key items are always in stock;
Provides technical support and project support;
Provides servicing of all equipment.
For the normal functioning of the enterprise, an analysis of its activities is carried out, depending on the constantly changing market conditions. This allows you to make your business sustainable - profitable and competitive, as well as ensure its further development. The organization has good profit, which is not only a financial result, but also the main financial resource. Carrying out systematic activity reviews allows you to:
Quickly, efficiently and personally evaluate the results of the enterprise’s activities;
Accurately and timely find and take into account factors affecting the profit received;
Determine expenses and their trend, which is necessary to determine the selling price and calculate profitability;
Find optimal ways to solve various problems and obtain sufficient profit.
To comprehensively assess the effectiveness of trading activities, various indicators are used: turnover, profit, profitability, distribution costs, etc.
When planning profit, the influence of a number of factors on the profit margin is identified: the percentage of profit on marketable products in the base year and the increase in profit due to an increase in the volume of purchases of marketable products is determined; an increase or decrease in profit due to an increase or decrease in the cost of commercial products, an increase in profit due to changes in prices and a number of other factors.
The information basis for the analysis of a company’s economic activities is data from accounting and statistical reporting, balance sheets.
Document flow in a company plays a very important role. Documentation of transactions (agreements) is very important here. A very important aspect is the preparation of payment documents (invoices, etc.)
The documentation is prepared by the management team (registration of transactions) and consulting engineers (payment documents), certified by a seal. The documentation process is controlled by the accounting department. Organization of work with documents is the creation of optimal conditions for all types of work with documents. Such work includes: reception and registration, review of documents by the manager, the procedure for passing documents through the organization and in execution, control of execution, formation of cases, preparation and transfer of cases to the archive.
The main part of the assortment is laid out on display cases and stands to familiarize yourself with the technical and weight-dimensional characteristics. The functions of a consulting engineer are limited to advising customers, selecting equipment and issuing invoices. The organization works for cash and non-cash payments.
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Problems and prospects for enterprise development
The problem of ensuring financial stability is one of the most pressing for most enterprises. In their activities, they face difficulties in determining a mechanism that would ensure financial balance, and achieving their goals at the same time for domestic enterprises, ensuring financial stability is quite problematic at the present time. One of the main problems is the predominance of borrowing over measures to increase equity capital, including the preference for acquiring borrowed funds in non-financial form (i.e. acquiring material assets on credit, without taking into account the real possibility of paying for them with money). Moreover, this trend is typical for most enterprises in almost any sector of the economy. This is why it is quite difficult for small businesses to get loans for their activities, since many banks simply do not trust the solvency of these enterprises.
The second problem follows from the first problem, which is the presence of long-term overdue debts to suppliers, banks, personnel, the budget, extra-budgetary funds and other creditors. The ratio between accounts payable and accounts receivable has worsened. Overdue accounts payable for enterprises as a whole account for half of this type of debt.
Such a high increase in overdue debt in economic terms means an equally rapid and significant reduction in financial sources for restoring production.
The main reason for the negative dynamics of the ratio of receivables and payables, as well as the steady trend towards an increase in overdue debt in its total amount, is the physical reduction and destruction of fixed production assets, the cessation in most cases of not only their expanded reproduction, but also simple ones.
The result is a sharp drop in production volumes, which is accompanied by a reduction in its own sources of production financing. This leads to a significant decrease in the solvency of the enterprise, as well as to a breakdown in relations with suppliers, investors, and creditors, since such an enterprise will be considered an unreliable partner.
Another key problem that has caused a decrease in the current financial stability of enterprises is the shortage of cash working capital necessary to ensure current production. The lack of free funds in settlement, currency and other bank accounts has a negative impact on the financial stability of the enterprise and practically means its bankruptcy.
Excessive dependence of the enterprise on external creditors and investors also indicates that the share of borrowed funds in the capital of the enterprise is too high and has a negative impact on financial stability.
The listed problems are, to one degree or another, typical for most enterprises. This trend has been observed over the past few years and is associated with the post-crisis period, which the state is trying to overcome, alas, at too slow a pace.
As for StavroPos LLC and increasing its financial stability, the following series of measures can be implemented. Firstly, it is necessary to improve its organizational structure and management structure, create a service that carries out constant financial analysis of the enterprise’s activities in order to manage the financial stability and control the level of solvency of the enterprise. Secondly, it is necessary to reduce accounts receivable, because a fairly large part of it in the overall asset structure reduces the liquidity and financial stability of the enterprise and increases the risk of financial losses for the company. Thirdly, it is necessary to create a reserve for doubtful debts.
3.2. Directions for increasing the financial stability and solvency of the enterprise StavroPos LLC
Event No. 1. Creation of a financial department.
Any measures to improve the financial condition of an enterprise cannot be carried out without the active work of the employees of this enterprise. At the present stage of its operation, StavroPos LLC is not able to solve various financial problems, including conducting financial analysis, both internal and external. The company not only does not have a department or service that resolves these issues, but also specialists who can be entrusted with carrying out individual measures to improve the financial condition of StavroPos LLC. Accounting employees are engaged in calculating individual indicators of financial and economic activity, but they are not competent enough in matters of planning and finding ways out of the current situation.
The department will solve the following problems that are currently not being considered at the enterprise or are not being addressed fully enough, namely:
providing financial resources for the current activities of the enterprise, finding reserves for reducing costs, increasing profits and increasing profitability while fully fulfilling obligations to the budget, banks, and suppliers
analysis of the current economic activities of the enterprise;
participation in financial and economic activities;
constant analysis and control over tax legislation, control over the timeliness of payment of taxes and other obligatory payments to the budget and extra-budgetary funds, as well as over debt to the budget and funds;
constant analysis of receivables and payables, analysis of agreements and contracts;
preparation of operational information on the movement of funds in the accounts of the enterprise.
Naturally, the creation of another structural unit at the enterprise will lead to an increase in costs and will require additional financial investments. But the effect that can be obtained from this event is obvious.
It is planned that the department will consist of the following units that will perform specific functions.
Department composition:
financial planning bureau;
bureau of operational accounting of financial and settlement operations;
bureau of operational accounting of financial investments.
The main functions of a financial planning office include:
participation in the preparation and endorsement of contracts concluded by the enterprise, in particular the terms of settlements with suppliers and consumers in accordance with the financial plan;
ensuring the fulfillment of financial obligations to creditors;
conducting systematic monitoring of the financial condition of the enterprise based on the analysis of accounting, statistical and operational reporting;
control over the state of standardized working capital.
The Bureau of Operational Accounting of Financial and Settlement Operations performs the following functions:
conducts systematic monitoring of the status of accounts receivable and takes measures to collect them;
prepares materials for filing claims arising from non-payment of bills by consumers of products;
regulates daily payments to suppliers and contractors.
The Bureau for Operational Accounting of the Enterprise's Financial Investments will monitor the enterprise's long-term and short-term financial investments and analyze agreements and contracts.
Let’s assume that 3 specialists will initially be hired to work in the financial department, and as necessary and as the department’s activities expand, management will decide to hire additional employees
The costs that the enterprise will be forced to bear in connection with the creation of a financial department will consist of capital investments in the amount of the cost of a personal computer and furniture (90 thousand rubles) and costs associated with the payment of wages (15 thousand rubles * 12 months + deductions for social needs, total 54 thousand rubles).
Total: 90+54 = 144 thousand rubles.
Thus, the ineffective structure of the enterprise’s property, in particular the increased accounts receivable, requires immediate work to stabilize and improve the financial condition of StavroPos LLC. This work should be entrusted to specialists from the financial department, which are proposed to be created at the enterprise.
Event No. 2. Creation of a scoring system for the reliability of the counterparty in order to reduce receivables. Introduction of a fine system.
A well-constructed database and analysis of statistical data on the counterparty’s fulfillment of its obligations allow one to make an informed decision on the possibility of providing a commercial loan.
At the LLC StavroPos enterprise, it is necessary to create a system for scoring the reliability of the counterparty based on an analysis of work with him. All counterparties must be grouped into four groups according to reliability level:
increased attention;
reliable clients;
"golden" clients.
The reliability of counterparties is assessed based on the period of work with the client, the volume of sales to the client and the amount of overdue debt of this client at the end of the period (see Table 3.1).
Table 3.1
Client reliability rating scale
The assignment of a counterparty to a particular group is carried out on the basis of an integral assessment, which is calculated as the product of scores for all three indicators.
The risk group includes enterprises with an integral score from 1 to 4, the high-attention group includes enterprises with 5-12 points, reliable clients - from 12-27, and "golden" - from 28-64.
The next measure to reduce accounts receivable is the introduction of a system of fines for late payments.
One of the most effective tools for maximizing cash flow and reducing the risk of overdue accounts receivable is a system of discounts and fines. A system for calculating penalties and fines for violation of payment deadlines established by the debt repayment schedule must be provided for in the contract. Discounts are provided depending on the term of payment for the goods. For example, with full prepayment a discount of 3% of the cost of the goods is provided, with partial prepayment (more than 50% of the cost of the shipped batch) - a 2% discount, with payment upon shipment - a 1% discount. There are no discounts when providing payment in installments for 7 days. In case of delay in payment, the penalty is 1% per day of the total amount due. These conditions must be specified in the contract.
Events No. 3. Creation of a reserve for doubtful debts.
The organization creates reserves for doubtful debts if accounts receivable are recognized as doubtful.
In this case, the receivables of an enterprise are considered doubtful if they are not repaid or with a high degree of probability will not be repaid within the time limits established by the contract and are not secured by appropriate guarantees.
Creating a reserve for doubtful debts in tax accounting is an element of tax planning that allows an enterprise to save on paying income tax. With the help of contributions to the reserve, the organization increases its non-operating expenses and thereby reduces its taxable profit.
Payment of income tax in this case is carried out only after the organization receives payment from the buyer for goods shipped, work performed, services rendered (clause 7 of Article 250 of the Tax Code of the Russian Federation).
The Tax Code does not establish a requirement to reflect the creation of a reserve for doubtful debts in the accounting policies of the enterprise.
The procedure for creating a reserve for doubtful debts is given in Art. Art. 266 and 313 of the Tax Code of the Russian Federation.
A doubtful debt is a debt to a taxpayer that:
Not repaid within the terms established by the agreement;
Not secured by collateral, surety, or bank guarantee.
The amount of the reserve for doubtful debts is determined based on the results of the inventory carried out on the last day of the reporting or tax period (clause 4 of Article 266 of the Tax Code of the Russian Federation).
Tax legislation does not establish the specifics of conducting an inventory for the use of its data for tax purposes. Therefore, on the basis of Art. 11 of the Tax Code of the Russian Federation, when forming reserves for doubtful debts in tax accounting, inventory data must be used, which is carried out in accordance with the Methodological Recommendations for the Inventory of Property and Financial Liabilities (approved by Order of the Ministry of Finance of Russia dated June 13, 1995 N 49). This is stated in the Letter of the Ministry of Finance of Russia dated July 26, 2006 N 03-03-04/1/612.
The number of inventories in the reporting year, the date of their conduct, the list of property and financial obligations verified during each of them are established by the head of the enterprise in accordance with the law. Information on the inventory procedure is reflected in the approved accounting policy (Letter of the Ministry of Finance of Russia dated July 17, 2008 N 03-03-06/2/84).
When conducting an inventory, the organization checks the correctness and validity of the amounts of receivables that are listed on the enterprise’s balance sheet (clause 3.48 of Methodological Recommendations No. 49). The results of the accounts receivable inventory are documented:
Act of inventory of settlements with buyers, suppliers and other debtors and creditors (form N INV-17, approved by Resolution of the State Statistics Committee of Russia dated August 18, 1998 N 88);
A certificate to the Inventory Report of settlements with buyers, suppliers and other debtors and creditors (Appendix to Form N INV-17).
They reflect only those amounts of receivables for which the statute of limitations has not yet expired.
Deductions to the reserve for doubtful debts are included in non-operating expenses on the last day of the reporting or tax period (clause 3 of Article 266 of the Tax Code of the Russian Federation).
If the reporting period for income tax for an enterprise is a quarter, then deductions to the reserve for doubtful debts are charged to non-operating expenses on the last day of the quarter. If an organization reports income taxes on a monthly basis, then deductions to the reserve for doubtful debts must be included in non-operating expenses on the last day of each month.
Let's consider the possibility of creating reserves for doubtful debts for the enterprise StavroPos LLC.
Based on the results of the inventory of accounts receivable for services provided, as of January 1, 2013, the following was identified:
Debt in the amount of 2170.8 thousand rubles. - the period of occurrence is more than 90 calendar days;
In accounting, all debts are recognized as doubtful. Sales revenue for 2012 amounted to 9322.02 thousand rubles.
Let's define RSO: 2170.8*100% = 2170.8 thousand rubles.
Let's determine PSO: 9322.02 thousand rubles. x 10% = 932.2 thousand rubles.
Thus, in tax accounting, the amount of the reserve as of 01/01/2013 will be 932.2 thousand rubles.
Creating a reserve for doubtful debts creates the opportunity to save on income tax in the amount of 186.44 thousand rubles.
The creation of a reserve mitigates the negative consequences of writing off bad debts, but does not eliminate them; in this regard, the basis for managing receivables of StavroPos LLC should be measures to prevent the occurrence of debts and the enterprise from collection.
To summarize the above, it should be noted that a decrease in financial stability and solvency is, to one degree or another, characteristic of most enterprises. This trend has been observed over the past few years and is associated with the post-crisis period, which the state is trying to overcome, alas, at too slow a pace.
As for the enterprise StavroPos LLC and increasing its financial stability, the following series of measures can be implemented. Firstly, it is necessary to improve its organizational structure and management structure, create a service that carries out constant financial analysis of the enterprise’s activities in order to manage the financial stability and control the level of solvency of the enterprise. Secondly, it is necessary to reduce accounts receivable, because A fairly large part of it in the overall asset structure reduces the liquidity and financial stability of the enterprise and increases the risk of financial losses for the company. Thirdly, it is necessary to create a reserve for doubtful debts.
CONCLUSION
Financial stability guarantees the strong position of a commercial enterprise. The higher the stability of an enterprise, the more independent it is from unexpected changes in market conditions and, therefore, the lower the risk of being on the verge of bankruptcy. Assessing financial stability in the short term is related to the liquidity of the balance sheet and the solvency of the enterprise.
Ensuring a stable financial position of the enterprise allows you to attract additional investments, improve the quality of customer service, the range of products sold, increase sales volumes and, ultimately, increase the profitability of the enterprise. If the financial stability of an enterprise is considered reliable, then this allows not only to attract investments, but also to obtain deferred payment from suppliers, attract funds at a lower interest rate, and this reduces costs and increases its competitiveness.
Summing up the final qualifying work, I would like to note that the goal of the study, which is to develop recommendations for improving financial stability, has been generally achieved.
Completing the objectives of this work allowed us to obtain the following main results of the study:
The financial stability of an enterprise is the ability of a business entity to function and develop, to maintain the balance of its assets and liabilities in a changing internal and external environment.
To ensure financial stability, an enterprise must have a flexible capital structure and be able to organize its movement in such a way as to ensure a constant excess of income over expenses in order to maintain solvency and create conditions for self-financing.
The financial stability of an enterprise is determined by the level of its financial independence and the level of its solvency.
Analysis of the financial stability of an enterprise is the most important stage in assessing its activities and financial and economic well-being, reflects the result of its current, investment and financial development, contains the necessary information for investors, and also characterizes the ability of the enterprise to meet its debts and obligations and increase its economic potential.
Financial instability is considered normal (acceptable) if the amount of short-term loans and borrowed funds attracted for the formation of reserves does not exceed the total cost of raw materials, materials and finished products.
Assessing the ability of an enterprise to meet its long-term financial obligations is the essence of assessing its financial stability. To calculate analytical indicators, data on all sources, long-term sources, and sources of a financial nature, which are understood as equity capital, bank loans and borrowings (long-term and short-term), can be used.
One of the most important criteria for assessing the financial condition of an enterprise is its solvency. In the practice of analysis, long-term and current solvency are distinguished. Long-term solvency refers to the ability of an enterprise to pay its obligations in the long term.
The ability of an enterprise to pay off its short-term obligations is usually called current solvency. In other words, an organization is considered solvent when it is able to fulfill its short-term obligations using current assets.
As a result of the research carried out in the second chapter, the following results were revealed:
As a result of the technical and economic analysis, it was revealed that revenue from product sales tends to increase. In 2010, product sales amounted to 3,500.38 thousand rubles. In 2011, this figure increased by 35.74% and amounted to 4571.50 thousand rubles. Due to the increase in production volume, sales revenue in 2012 increased by 96.19% and amounted to 9322.02 thousand rubles. The increase in sales revenue indicates that the products of the StavroPos LLC enterprise are in demand among the population of the city of Tolyatti and production activities are increasing every year.
During the analyzed period, the number of employees increased due to an increase in production volume. In 2011, the number of employees of the enterprise was 21 people, which is 26.3% more than in 2010, incl. the number of workers increased by 21.43%. In 2012, the number of employees increased by 14.29%, incl. workers 13.33%.
The largest share in the structure of workers is made up of blue-collar workers.
The share of workers in the total number of personnel tends to decrease. In 2012, the share of workers was 70.83%, which is 2.85% less than in 2010.
The annual wage fund in 2011 increased by 22.39% and amounted to 2,432.23 thousand rubles. And in 2012, this figure amounted to 3002.34 thousand rubles, which is 23.44% more than in 2011.
The average salary of employees in 2012 was 125.1 thousand rubles. Wages per 1 ruble of products sold in 2011 amounted to 0.512 rubles, and in 2012 this figure decreased by 37.08% and amounted to 0.322 rubles.
The rate of growth in labor productivity exceeding the rate of wage growth was 1.59 in 2012.
The average annual output of 1 worker in 2011 was 316.77 thousand rubles, and in 2012 this figure increased by 73.11% and amounted to 548.35 thousand rubles. The average annual output of 1 employee was 388.42 thousand rubles.
The average daily output of 1 worker in 2012 was 2211.11 rubles, which is 73.81% more than in 2011.
The average hourly output of 1 worker is 184.26 rubles. in 2012 and 106.01 rubles. in 2011.
Gross profit in 2011 increased by 25.39% and amounted to 1,446.36 thousand rubles. In 2012, gross profit increased by 148.35% compared to 2011.
Selling expenses tend to increase in 2012, this figure amounted to 3232.61 thousand rubles, which is 157.47% more than in 2011, as a result of which there was a decrease in sales profit, and together with administrative expenses, which increased by 39 .6% was a loss on sales. As a result, sales profit in 2011 and 2012 is negative. Profit from sales is declining at a rapid pace, and gross profit is increasing - which means that commercial and administrative expenses are dragging the enterprise down.
Net profit in the period 2010-2012 has a negative value. In 2010, net profit amounted to minus 88.01 thousand rubles. In 2012, net profit amounted to -132.51 thousand rubles. In 2012, net profit amounted to minus 1015.82 thousand rubles. As a result of this analysis, we can say that the company receives losses from its activities. This was due to an increase in selling and administrative expenses. Therefore, the company needs to pursue a policy to reduce these costs.
An analysis of financial stability showed that the balance sheet of the enterprise is not absolutely liquid in the period 2010-2012. The enterprise StavroPos LLC has a payment surplus for the second group of assets and liabilities. This indicates that the organization can repay short-term and long-term loans and borrowings in full. However, there is a shortage of the most liquid assets, as indicated by the negative difference between the first group of assets and liabilities. But this situation cannot indicate a crisis of non-payments, given that this group of liabilities includes all accounts payable and other short-term obligations, which, as a rule, are not presented by creditors for payment at the same time.
In 2011, there was a decrease in solvency indicators compared to 2010. There was a need to attract additional sources of financing. In 2012, the solvency of the StavroPos LLC enterprise was restored. The company uses borrowed funds rationally.
All the results obtained indicate that the company is financially unstable. This is evidenced by the increased financial risk ratio. Over the period from 2010-2012, this coefficient increased by 0.97 units. The financial balance coefficient in 2011 decreased by 0.24 units. And in 2012 it increased by 0.9 units. This indicator characterizes the security of borrowed funds with own funds. It shows the amount of equity capital that falls on 1 ruble. borrowed funds invested in assets. The higher this indicator, the more stable the financial position of the enterprise.
The autonomy coefficient in 2012 was 0.25 units, which is 0.7 units less than in 2010.
The financial stability coefficient was 0.75 units, which indicates that the StavroPos LLC enterprise is not sustainable.
An analysis of the probability of bankruptcy using E. Altman’s model showed that the probability of bankruptcy of StavroPos LLC is high.
Summarizing the entire analysis, it can be noted that despite the fact that the enterprise increases production every year and the products are in demand, sales profit and net profit are negative, which indicates that the enterprise’s activities are ineffective. The negative value of these indicators occurred as a result of an increase in commercial and administrative expenses; at the same time, the company’s balance sheet is only 25% liquid. The enterprise is financially unstable, despite the fact that the enterprise has restored its solvency. The probability of bankruptcy is high.
A decrease in financial stability and solvency is, to one degree or another, characteristic of most enterprises. This trend has been observed over the past few years and is associated with the post-crisis period, which the state is trying to overcome, alas, at too slow a pace.
As for StavroPos LLC and increasing its financial stability, the following series of measures can be implemented. Firstly, it is necessary to improve its organizational structure and management structure, create a service that carries out constant financial analysis of the enterprise’s activities in order to manage the financial stability and control the level of solvency of the enterprise. Secondly, it is necessary to reduce accounts receivable, because A fairly large part of it in the overall asset structure reduces the liquidity and financial stability of the enterprise and increases the risk of financial losses for the company. Thirdly, it is necessary to create a reserve for doubtful debts.
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The purpose of the thesis is to develop measures to improve the financial stability of the enterprise.
In accordance with the purpose of the thesis, the following tasks are defined:
analysis of the theoretical foundations of the financial stability of the enterprise;
analysis and identification of financial features of pharmaceutical industry enterprises;
analysis of the regulatory framework on the subject of research;
analysis of the financial condition of the enterprise "NTFF POLYSAN" LLC;
development of measures to improve the financial stability of the enterprise.
INTRODUCTION………………………………………………………...... 3
CHAPTER 1. THEORETICAL AND ORGANIZATIONAL-LEGAL FOUNDATIONS OF FINANCIAL STABILITY…………………………………………………….........
5
1.1. The concept and essence of the financial stability of an enterprise.....……………………………..………
5
1.2. Methodology for analyzing the financial condition of an enterprise.. 7
1.3. Analysis of financial features of pharmaceutical industry enterprises................................................................. .......
20
1.4. Regulatory framework governing the financial activities of the enterprise....................................................…………
22
CHAPTER 2. ANALYSIS OF THE FINANCIAL STATUS OF THE ENTERPRISE (BASED ON THE EXAMPLE OF NTFF POLYSAN LLC).......................................... .........................................
24
2.1. Characteristics of the enterprise "NTFF POLYSAN" LLC.................................................... ...................................
24
2.2. Analysis and assessment of the financial condition of the enterprise………………….................................... ..........
27
2.3. Information software................................... 37
CHAPTER 3. DEVELOPMENT OF MEASURES TO INCREASE THE FINANCIAL STABILITY OF THE ENTERPRISE………………..................................... ..............
43
3.1. The main ways to increase financial stability..... 43
3.2. Organization of economic security at the enterprise... ........................................................ ....................
45
CONCLUSION................................................. ........................................... 50
LIST OF SOURCES USED.................................................... 52
The work contains 1 file
Federal Agency for Education
State educational institution
higher professional education
"St. Petersburg State
University of Engineering and Economics"
Department of Finance and Banking
final qualifying work
on the topic of:
“DEVELOPMENT OF MEASURES TO INCREASE THE FINANCIAL STABILITY OF THE ENTERPRISE (BASED ON THE EXAMPLE OF STFF POLYSAN LLC)”
| Is done by a student | Dolgikh Yulia Alekseevna, full-time education, 3 years 10 months, group 2/3343 | |||
| Supervisor: | Associate Professor, Department of Finance and Banking, St. Petersburg State University of Economics and Economics, Shvedova N. Yu., Ph.D. | |||
| Reviewer: | Director for Production and Development "NTFF POLYSAN" Potapov A. M. | |||
| |
||||
| "APPROVED FOR PROTECTION" | ||||
| Head of the department,
Doctor of Economics, Professor |
Goncharuk O.V. | |||
Saint Petersburg
2008
| Page | |||
| INTRODUCTION………………………………………………………. .............. | 3 | ||
| CHAPTER 1. | THEORETICAL AND ORGANIZATIONAL AND LEGAL FRAMEWORKS OF FINANCIAL SUSTAINABILITY…………………………………………………….... ..... | ||
| 1.1. | The concept and essence of the financial stability of an enterprise.............…………… …………………..……… | 5 |
|
| 1.2. | Methodology for analyzing the financial condition of an enterprise.. | 7 | |
| 1.3. | Analysis of the financial features of pharmaceutical industry enterprises.................................... ..................... ....... | 20 |
|
| 1.4. | Regulatory and legal framework governing the financial activities of the enterprise....................................………… | 22 |
|
| CHAPTER 2. | ANALYSIS OF THE FINANCIAL STATUS OF THE ENTERPRISE (BY THE EXAMPLE OF NTFF POLYSAN LLC)................................................... ........................ ........................ | ||
| 2.1. | Characteristics of the enterprise "NTFF POLYSAN" LLC...................................................... ......... ........................ | 24 |
|
| 2.2. | Analysis and assessment of the financial condition of the enterprise…………………............ ............................. ..... ...... | 27 |
|
| 2.3. | Information software................... ... | 37 | |
| CHAPTER 3. | DEVELOPMENT OF MEASURES TO INCREASE THE FINANCIAL STABILITY OF THE ENTERPRISE…………….......................... ........................ ...... ..... | ||
| 3.1. | The main ways to increase financial stability..... | 43 | |
| 3.2. | Organization of economic security at the enterprise... .......................................................... .......... .......... | 45 |
|
| CONCLUSION.................... ............................. ........................... ............ | 50 | ||
| LIST OF SOURCES USED.................... ................... | 52 | ||
| APPLICATIONS......................... ................................. ........................... ............ | 55 | ||
INTRODUCTION
In market conditions, the key to survival and the basis for a stable position of an enterprise is its financial stability.
It reflects the state of financial resources in which an enterprise, freely maneuvering funds, is able, through their effective use, to ensure the uninterrupted process of production and sales of products, as well as the costs of its expansion and renewal.
Financial stability analysis is considered as an assessment of the stability of the enterprise, both currently and in the future.
The versatility of the problems associated with the financial stability and profitability of an enterprise determine the relevance of the study.
The purpose of the thesis is to develop measures to improve the financial stability of the enterprise.
In accordance with the purpose of the thesis, the following tasks are defined:
- analysis of the theoretical foundations of the financial stability of the enterprise;
- analysis and identification of financial features of pharmaceutical industry enterprises;
- analysis of the regulatory framework on the subject of research;
- analysis of the financial condition of the enterprise "NTFF POLYSAN" LLC;
- development of measures to improve the financial stability of the enterprise.
The subject of the study is the financial processes occurring in the enterprise.
The object of the study is the enterprise "NTFF POLYSAN" LLC.
The thesis consists of an introduction, three chapters, a conclusion, a list of references and applications.
The first chapter analyzes in some detail various aspects of the financial condition of the enterprise, including the financial stability of the enterprise.
In the second chapter, a detailed analysis of the financial condition of the analyzed enterprise is performed.
The third chapter formulates the main ways to solve the problems of increasing the financial stability and profitability of the analyzed enterprise.
The methodological basis of the study was: laws of the Russian Federation, regulations and documents, works of Russian economists, publications in periodicals on the issue under consideration.
The practical basis of the study was the practical data on the enterprise LLC NTFF POLYSAN.
Chapter 1. THEORETICAL AND ORGANIZATIONAL
LEGAL FRAMEWORK OF FINANCIAL
SUSTAINABILITY
1.1. The concept and essence of financial stability
enterprises
To determine the financial position of an enterprise, a number of characteristics are used that most fully and accurately show the state of the enterprise, both in the internal and external environment. The financial stability of an enterprise is one of these characteristics.
One of the most important characteristics of the financial condition of an enterprise is the stability of its activities from a long-term perspective. It is connected, first of all, with the general financial structure of the enterprise, the degree of its dependence on creditors and investors. Thus, many businessmen, including representatives of the public sector of the economy, prefer to invest a minimum of their own funds in the business and finance it with borrowed money.
Despite the apparent simplicity of the task of quantitatively assessing the financial stability of an enterprise, there is no single generally accepted approach to constructing appropriate assessment algorithms. The concept of “financial stability” is vague, because includes an assessment of various aspects of the enterprise's activities.
The indicators included in various analysis methods can vary significantly both in quantitative terms and in calculation methods. Such “inconsistency,” although it is naturally not critical, is also characteristic of many Western manuals and textbooks on financial analysis and management. The easiest way to explain this “inconsistency” is the completely natural presence of analysts’ differing priorities and predilections for certain indicators; however, at least two reasons can be formulated, to one degree or another, causing this situation:
- the analyst’s attitude to the need and expediency of a joint consideration of the sources of funds and assets of the enterprise;
- differences in the interpretation of the role of short-term liabilities, including short-term sources of financial nature.
However, the general concept of sustainability can be formulated as follows - this is the financial condition of an enterprise whose economic activities ensure, under normal conditions, the fulfillment of all its obligations to employees, other organizations, and the state, thanks to sufficient income and the correspondence of income to expenses.
Indicators of liquidity and financial stability complement each other and together give an idea of the well-being of the financial condition of the enterprise: if an enterprise has poor liquidity indicators, but has not lost its financial stability, then the enterprise has a chance to get out of its difficult situation. But if both liquidity indicators and financial stability indicators are unsatisfactory, then such an enterprise is a likely candidate for bankruptcy. Overcoming financial instability is not easy; it takes time and investment. For a chronically ill enterprise that has lost financial stability, any negative set of circumstances can lead to a fatal outcome.
Financial stability depends on internal and external factors. Internal factors include, first of all, the sufficiency of profit. Sustainability also depends on the range and quality of products, structure, property, reserves and stocks, image, the degree of achievement of the target function of financial management, etc.
External factors are characterized by the degree of stability of the economic environment of the enterprise and, first of all, the stability of revenue receipts. This is also manifested in the stability of the economy, position in the industry, competitive environment, relations with government agencies, suppliers, customers, creditors and investors, etc.
- Methodology for analyzing financial condition
organizations
One of the most important conditions for successful financial management of an enterprise is the analysis of its financial condition.
The financial condition of an enterprise refers to the ability of an enterprise to finance its activities. It is characterized by the provision of financial resources necessary for the normal functioning of the enterprise, their appropriate placement and effective use, financial relationships with other legal entities and individuals, solvency and financial stability.
The main goal of financial analysis is to identify the most complex problems in managing an enterprise in general and its financial resources in particular.
The main tasks of analyzing the financial and economic condition of an enterprise include:
- assessment of the dynamics of the structure and composition of assets, their condition and movement and the composition of sources of equity and borrowed capital, their condition and changes;
- assessment of the solvency of the enterprise and assessment of balance sheet liquidity;
- analysis of relative and absolute indicators of the financial stability of the enterprise, assessment of changes in its level;
- assessment of the efficiency of use of enterprise funds and resources
Analysis of the financial and economic state of an enterprise is carried out using a set of methods and working techniques (methodology) that allow structuring and identifying the relationships between the main indicators (Fig. 1).
Rice. 1. Basic methods of analyzing financial and economic conditions
Enterprises
Analysis of absolute indicators is the study of data presented in the financial statements: the composition of the enterprise’s property, the structure of financial investments, sources of equity capital formation are determined, the amount of borrowed funds, the volume of sales proceeds, the amount of profit, etc. are determined.
Horizontal (time) analysis is a comparison of each reporting item with the previous period, which makes it possible to identify trends in changes in balance sheet items or their groups and, based on this, calculate the basic growth rates.
Vertical (structural) analysis is carried out in order to determine the structure of the final financial indicators, i.e., to identify the share of individual reporting items in the overall final indicator (identifying the impact of each reporting item on the result as a whole).
Trend (dynamic) analysis is based on comparing each reporting item over a number of years and determining the trend, i.e. the main trend in the dynamics of the indicator without taking into account random influences and individual characteristics of individual periods. Using a trend, a forward-looking, predictive analysis is carried out.
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