Financial and economic analysis. Assessment of the financial condition of the enterprise Coefficients of the financial condition of the enterprise formulas on the balance sheet

To assess the financial position and performance of financial and economic activities of enterprises, financial ratios are used.

Financial ratio is the ratio of one accounting indicator to another.

Analysis of various ratios can give a qualified analyst a more complete picture of the financial condition of the company compared to what he could obtain from the analysis of certain characteristics taken separately.

Direction of comparison. Financial ratio analysis involves two types of comparisons. First of all, the analyst compares the performance of the same company in the present and past, and also makes forecast estimates. Thus, the analyst has the opportunity to study how changes occurred and determine whether this led to an improvement or deterioration in the financial condition of the company and present the whole picture of the period under study. No indicator by itself provides sufficient information on the basis of which we would be able to judge the financial position of the company. This becomes possible only after analyzing the entire complex of indicators. We must not forget about the seasonal component, since the main trends can only be detected through comparison of initial data and coefficients for the same period of the year

It should be noted that as initial information is added, the number of coefficients that can be calculated increases. However, we will consider only the main ones, since in practice it is sufficient to use a relatively small number of indicators in order to correctly assess the financial position of the company.

Liquidity ratios. Liquidity ratios are used to assess a firm's ability to meet its short-term obligations. They give an idea not only of the company’s solvency at the moment, but also in the event of an emergency.

Coverage ratio.

Gives a general description of asset liquidity, showing how many rubles of the enterprise’s current assets are per 1 ruble of current liabilities. The logic for calculating this indicator is that the company increases short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities, the enterprise can be considered to be successfully operating (theoretically). The size of the excess is set by the current liquidity ratio. The value of the indicator may vary by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend. However, this indicator should be considered as very rough, since it does not take into account the degree of liquidity of individual components of working capital. A firm whose working capital consists primarily of cash and short-term accounts receivable is generally considered more liquid than a firm whose working capital consists primarily of inventory. In Western accounting and analytical literature, the critical lower value of the indicator is 2; however, this is only an indicative value, indicating the order of the indicator, and not its exact standard value.

The coverage ratio is compared to the industry average coverage ratio. Such a comparison does not always reveal a company's financial weakness or strength, since the industry as a whole may be overly liquid, or vice versa. But a strong deviation in comparison should alert the analyst and force him to find the true reason.

Current ratio

where r is accounts receivable, thousand rubles;

d – cash and short-term financial investments, thousand rubles.

In terms of semantic purpose, the indicator is similar to the coverage ratio; however, it is calculated for a narrower range of assets, when the least liquid part of them, industrial inventories, is excluded from the calculation. The logic of this calculation consists not only in the significantly lower liquidity of inventories, but, what is much more important, in the fact that the funds that can be gained in the event of a forced sale of inventories can be significantly lower than the costs of their acquisition. In particular, in a market economy, a typical situation is when, during the liquidation of an enterprise, the sale of inventories is 40% or less of the book value. Western literature provides an approximate value of the indicator - 1, however, this assessment is also conditional.

Absolute liquidity ratio.

It is the most stringent criterion for the liquidity of enterprises; shows what portion of current liabilities can be repaid immediately if necessary. The recommended lower limit of the indicator given in Western literature is 0.2.

In domestic practice, the actual average values ​​of the liquidity ratios considered are, as a rule, significantly lower than the values ​​mentioned in Western sources. Since the development of industry standards for these coefficients is a matter of the future, in practice it is desirable to analyze the dynamics of these indicators, supplementing it with a comparative analysis of available data on enterprises that have a similar orientation of their economic activities.

Capital structure ratios (financial stability).

One of the most important characteristics of the financial condition of an enterprise is the stability of its activities in the light of a long-term perspective. It is related to the overall financial structure of the enterprise, the degree of its dependence on creditors and investors. Financial stability in the long term is characterized by the ratio of equity and borrowed funds. However, this indicator provides only a general assessment of financial stability. Therefore, a system of indicators has been developed in world and domestic practice.

Autonomy coefficient (concentration of equity capital).

where B – balance, thousand rubles.

Shows what share of the enterprise's property is financed from its own funds. Reflects the degree of independence of the enterprise from creditors. A low value of the ratio may indicate excessive dependence of the enterprise on creditors and a high risk of loss of solvency. However, too high a value of this coefficient can also be unfavorable. If an enterprise attracts additional sources of financing in the course of its activities, then raising borrowed funds (obtaining loans, issuing bonds) usually costs the enterprise less than raising its own funds (issuing shares). This is due to the fact that purchasing shares is a riskier way of financial investment compared to lending money and therefore requires a higher reward (the dividend rate on shares should be higher than the interest rate on loans and bonds). Thus, if a company excessively uses its own funds and neglects to attract borrowed funds, then it incurs more expenses. This could result in a significant reduction in profitability. The recommended range of autonomy coefficient values ​​is at least 0.5. But opinions about the desired value of this coefficient vary. In the United States, where the main flow of investment comes from the population, enterprises with a fairly large share of equity capital are highly valued. In Japan, where the main flow of investment comes from banks, enterprises with a high concentration of attracted capital are valued, as this indicates the degree of confidence in the corporation on the part of banks.

Coefficient of supply of inventories and costs from own sources of formation

Shows what part of inventories and costs is provided by the enterprise’s own working capital

Equity capital agility ratio.

Shows what share of equity capital is invested in current assets. The more of an enterprise’s own funds are in circulation, the more opportunities the enterprise has to implement investment projects (purchase of fixed assets, development of new types of activities, etc.).

However, if this ratio is at a high level for a long time, this may indicate that the company keeps too many funds in circulation and neglects opportunities for production development.

The normal value of the coefficient strongly depends on the industry (in particular, on the capital intensity of the industry). The recommended range of values ​​is at least 0.5.

Business activity ratios

Indicators of this group characterize the results and efficiency of current core production activities.

To calculate the asset turnover ratio, current assets turnover ratio and accounts receivable turnover ratio, revenue is included in the value of these indicators.

To calculate the inventory turnover ratio and the accounts payable turnover ratio, the cost of sales is included in the indicators.

Turnover ratios are highly dependent on the industry, so they do not have uniform recommended ranges. Sometimes, for the sake of simplicity, when calculating turnover ratios, all assets and liabilities are compared with revenue.

Asset turnover ratio.

This coefficient gives a general characteristic of the speed of movement of assets in the enterprise. It should be noted that it is quite general in nature, since not all assets are involved in turnover and not all assets can be compared with turnover.

Current assets turnover ratio.

The current asset turnover ratio is the approximate number of operating cycles per period. It should be noted that to increase accuracy, the turnover period of each type of current assets should be calculated separately, and then summed up and the length of the operating cycle determined.

Inventory turnover ratio.

It should be noted that the formula for calculating the coefficient is accurate only in the field of trade, where inventories are goods and their cost is comparable to the cost of sales. In production (if appropriate information is available), it is better to calculate the turnover of each type of inventory separately, using data from accounting registers.

To improve inventory turnover, it is necessary to achieve an exact match between the volume of purchases and inventory needs. In addition, you should get rid of “unliquid stock” (stocks that have lost quality; products and goods that are not in demand).

Accounts receivable turnover ratio.

If the appropriate data is available in the formulas for calculating the coefficient, only revenue from sales on credit should be taken into account, since only this part of the revenue is associated with the appearance of receivables.

Accounts payable turnover ratio.

The cost of sales is not always comparable to accounts payable (for example, in the production sector, the cost of production includes wages and depreciation that are not related to settlements with suppliers). If you have the appropriate data, you can estimate the turnover of accounts payable to suppliers more accurately. To do this, you need information about the turnover of account 60 associated with purchases on credit and the average balance on account 60. To calculate the accounts payable turnover ratio, the first amount should be attributed to the second.

Total capital turnover ratio

where N p – turnover, thousand rubles.

Working capital turnover ratio

Inventory turnover and cost ratio

Capital turnover ratio of fixed assets and other non-current assets

Business activity ratios make it possible to assess the efficiency of using the enterprise's own funds and are expressed in assessing the turnover of the company's assets. The asset turnover ratio reflects how many times the capital invested in the assets of the enterprise is turned over during the period.

Profitability ratios

The main indicators of this block, used in countries with market economies to characterize the return on investment in a particular type of activity, include return on advanced capital and return on equity. The economic interpretation of these indicators is obvious - how many rubles of profit account for one ruble of advanced (own) capital. When calculating profitability, you can use either the total profit of the reporting period or net profit.

Profitability indicators give an idea of ​​the efficiency of an enterprise's economic activities.

Profitability ratios characterize the profitability of an enterprise. Profitability shows how much profit the enterprise’s activities generate per monetary unit invested in a certain indicator. To improve profitability, you can:

get rid of illiquid assets (inventory that has lost its ability to be written off at a loss or sold), because they do not participate in turnover, which means the inventory balance increases.

avoid overstocking.

When analyzing profitability in a spatiotemporal aspect, it is necessary to take into account two key features of these indicators, which are essential for formulating valid conclusions.

The first is related to the temporary aspect of the enterprise's activities. Thus, the product profitability ratio is determined by the performance of the reporting period; it does not reflect the probable and planned effect of long-term investments. When an enterprise makes a transition to new promising technologies or types of products that require large investments, the values ​​of profitability indicators may temporarily decrease. However, if the restructuring strategy is chosen correctly, the costs incurred will pay off in the future. Thus, the decrease in profitability in the reporting period should not be considered as a negative characteristic of current activities.

The second feature is related to the problem of assessment. In particular, the numerator and denominator of the profitability indicator are expressed (in a sense) in monetary units of different purchasing power. The numerator of the indicator, i.e. profit, is dynamic; it reflects the results of operations and the current level of prices for goods and services, mainly for the past period. The denominator of the indicator, i.e. equity capital accumulates over a number of years. It is expressed in an accounting estimate, which may differ very significantly from the current estimate.

In addition, the accounting estimate of equity has no bearing on future earnings. Indeed, not everything can be reflected in the balance sheet; for example, the prestige of a company, a trademark, state-of-the-art technology, and excellent management personnel do not have a monetary value (we are not talking about the sale of the company as a whole) in the reporting. Therefore, the market price of shares may significantly exceed their book value. Thus, a high return on equity ratio is not at all equivalent to a high return on capital invested in the company; When choosing financial decisions, it is therefore necessary to focus not only on this indicator, but also take into account the market value of the company.

Return on sales ratio.

Sales profitability is one of the most important indicators of a company's performance. This ratio shows how much operating profit the company receives from each ruble of products sold. In other words, how much is left for the enterprise after covering the cost of production?

Return on sales shows the average share of profit included in one monetary unit of revenue. This indicator characterizes the pricing policy of the enterprise and the effectiveness of cost management.

The growth of profitability of sales characterizes the most important aspect of the company's activities - product sales (increase), and also evaluates the share of cost in sales. This indicator reflects only the operating activities of the enterprise.

Sometimes return on sales is calculated using net profit:

where P is balance sheet profit, thousand rubles.

Return on assets (net profit) ratio.

Return on assets is a comprehensive indicator that allows you to evaluate the results of the core activities of an enterprise. It expresses the return that accrues per ruble of the company's assets.

Return on current assets is an indicator of the efficiency of an enterprise's operational activities.

Return on equity is most important to a company's shareholders. It characterizes the profit that accrues to the enterprise's own capital.

Return on assets shows how much profit, on average, the activity of an enterprise generates per 1 monetary unit invested in assets. This indicator characterizes the effectiveness of the enterprise's investment policy and the effectiveness of asset management in general.

By considering both indicators together, we can get a more complete picture of the company's economic performance. If the return on sales ratio has not changed significantly over a number of years, and the net profit ratio has gradually decreased, then the reason is either increased costs or increased tax rates. Therefore, we must turn to the study of these factors to find the root of the problem. On the other hand, if the gross profit ratio has fallen, then it is obvious to us that there has been an increase in the cost of goods sold compared to sales revenue. The latter, in turn, may be caused by falling prices or insufficient use of returns to scale in production.

Return on assets is sometimes calculated using pre-tax profits to separate the effectiveness of asset management from the effectiveness of the company's tax policy.

Return on fixed assets ratio

Return on equity ratio

An increase in the values ​​of profitability ratios indicates an increase in the efficiency of use of all property of the enterprise and fixed assets.

Ratio analysis of the financial condition of OJSC Belon. Assessment of the property status of the enterprise. The asset structure of the balance sheet represents the structure of the enterprise's property; it proves how its funds are currently allocated. The structure of the balance sheet asset characterizes the investment policy of the enterprise, i.e. investment of financial resources in specific objects. For analysis purposes, assets are grouped according to the degree of mobility and liquidity of funds: 1. Division of assets into mobile and immobilized funds. Mobile funds are those funds of an enterprise that are subject to the greatest changes in the process of financial and economic activities (the second section of the enterprise’s balance sheet “Current assets”). Immobilized funds are inflexible and stable assets or those funds that practically do not undergo changes in the process of financial and economic activities (the first section of the enterprise’s balance sheet “Non-current assets”). 2. Division of the enterprise's assets according to the degree of liquidity. Liquidity is the ability of an asset to be transformed into cash. Table 2.1 Grouping of assets by degree of liquidity and mobility of funds Assets Start Structure End Structure Absolute Change in period, ra, % of period, ra, % change, e thousand rubles. thousand roubles. thousand roubles. structures, % 1. Mobile devices 790019 86.71 973171 83.50 183152 -3.21 1.1. Cash and short-term financial investments 212503 23.32 231646 19.88 19143 -3.45 1.2. Short-term accounts receivable 484821 53.21 567704 48.71 82883 -4.50 1.3. Long-term accounts receivable 5228 0.57 1774 0.15 -3454 -0.42 1.4. Inventories and costs, VAT on purchased assets 1.5. Other current assets 2. Immobilized funds 84456 9.27 169527 14.55 85071 5.28 3011 0.33 2530 0.22 -481 -0.11 121107 13.29 192272 16.50 71165 3.21 2.1. Long-term financial investments 31800 3.49 61333 5.26 29533 1.77 2.2. Construction in progress 14871 1.63 35569 3.05 20698 1.42 2.3. Real fixed capital 72460 7.95 93449 8.02 20989 0.07 2.4. Intangible assets 2.5. Other non-current assets 1976 0.22 1921 0.16 -55 -0.05 0 0.00 0 0.00 0 0.00 911126 100.00 1165443 100.00 254317 0.00 Balance sheet Conclusion. The rate of mobile means by the end of the reporting period is 83.5%. This indicates high solvency. The data in Table 2.1 indicates an increase in working capital in the reporting period by 183,150 rubles. or by 23%. However, their share in the assets of the enterprise decreased by 3.21%. During the reporting period, production inventories increased significantly - almost 2 times. However, given that finished products have also doubled, this increase is quite justified. Accounts receivable have increased, payments for which are expected within 12 months. The funds in the company's current accounts also increased significantly. As for the structure of current assets, the following can be noted. Directly in the structure of working capital, more than 60% belongs to accounts receivable, which is not very desirable for the enterprise, although during the reporting period its share decreased slightly, but in absolute terms the debt continues to grow. Although this debt is short-term (payments for which are expected within 12 months after the reporting date), which reduces the risk of non-repayment of debts, the presence of outstanding receivables at the end of the year in the amount of 567,704 rubles indicates the diversion of part of current assets into lending to consumers of finished products ( works, services) and other debtors, this part of the working capital is actually immobilized from the production process. Fixed assets increased by 20,989 rubles. or by 29%. At the same time, the enterprise has investments in intangible assets, which indirectly characterizes the strategy chosen by the enterprise as innovative, since it invests in patents, licenses, and other intellectual property, however, it is worth noting that during the reporting period, investments in intangible assets decreased by 2.8% . It is also necessary to note the significant financial burden in the form of unfinished construction, which at the end of the period increased even more - by 239%. Long-term financial investments, indicating the investment orientation of the enterprise's investments, increased almost 2 times over the period. If we consider the structure of non-current assets, we can note the following. At the beginning of the year, the largest share in the structure of non-current assets was occupied by fixed assets (about 60%), at the end of the period their share decreased by 11% due to a significant increase in the share of construction in progress (by 6%) and long-term financial investments (by 5%). . The share of non-current assets in the balance sheet currency during the reporting period increased by 3%. The liability structure of the balance sheet reflects the capital structure or financing aspect. To assess the liabilities of the balance sheet, we group it by the ownership of capital (borrowed and equity) and by the time of its use (Table 2.2). Table 2.2 Grouping of liabilities by ownership of capital and time of its use Liabilities 1. Borrowed capital 1.1. Short-term liabilities 1.1.1, Urgent liabilities - debt to the budget - to state extra-budgetary funds - borrowed funds - for wages Beginning Structure End Structure Absolutely Change of period, % of period, % of structure, thousand rubles. thousand roubles. change, % thousand, rub. 477594 477594 52.42 52.42 689968 632969 59.20 54.31 212374 155375 6.78 1.89 374506 41.10 610533 52.39 236027 11.28 5934 0.6 5 20882 1.79 14948 1.14 1176 0 .13 1825 0.16 649 0.03 367256 40.31 587435 50.40 220179 10.10 140 0.02 391 0.03 251 0.02 - other accounts payable 1.1.2 Quiet debt 1.2. Long-term liabilities 47338 5.20 75318 6.46 27980 1.27 102867 11.29 17420 1.49 -85447 -9.80 0 0.00 56999 4.89 56999 4.89 2. Own capital 433532 47.58 4 75475 40 .80 41943 -6.78 Balance 911126 100.00 1165443 100.00 254317 0.00 The data in Table 2.2 shows that the total increase in sources amounted to 254317 thousand rubles. or 28%. This growth was achieved due to an increase in both the company's own and borrowed funds. However, the growth of equity funds amounted to 9.7% (41,943 thousand rubles), and borrowed funds increased by 212,374 thousand rubles. This increase occurred mainly as a result of a sharp increase in accounts payable - from 374,506 thousand rubles. up to 610533 thousand rubles. or by 63%. Among accounts payable, the most significant increase concerns debt to creditor enterprises. In the structure of sources, the share of own funds decreased by 7%. The share of long-term liabilities increased by almost 5%, and the share of short-term liabilities by almost 2%. Debt to creditor enterprises increased in the structure of liabilities by almost 8%. In general, one can note quite negative trends in the structure of accounts payable associated with an increase in the share of “sick” items (debt to the budget, arrears of wages). A negative point is also the increase in debt to third-party companies (its share), which is associated with mutual non-payments. By the end of the reporting period, accounts payable increased sharply. On the one hand, accounts payable is the most attractive method of financing, since there is usually no interest charged. On the other hand, due to large delays in payments, the company may experience problems with supplies, damage to the company's reputation due to unfavorable reviews from creditors, and legal costs in cases brought by suppliers. Debt reduction is facilitated by effective debt management through analysis of the statute of limitations. Such an analysis reveals which of the creditors has been waiting a long time for payment and is likely to become impatient. OJSC Belon must, first of all, pay off its debts to the budget, social insurance and security, since deferments in these payments usually entail the payment of fines (penalties). Then it is necessary to clearly structure debts to suppliers and contractors, and identify which of them require immediate repayment. At JSC Belon it is recommended to resort to the mechanism of mutual settlements. Assessment of the financial condition of the enterprise. Liquidity analysis An analysis of the liquidity of the enterprise's balance sheet is presented in Table 2.3. Table 2.3 Assessing the liquidity of the balance sheet ASSET Absolute values ​​LIABILITY Absolute values ​​Payment In % of the total surplus or deficiency N.p. K.p. N.p. K.p. N.p. K.p. N.p. K.p. A1 - the most liquid assets - the company's cash and short-term financial investments (securities). A2 - quickly realizable assets, accounts receivable due within 12 months and other current assets. A3 - slowly realizable assets (all inventories) A4 hard to sell assets - articles of section I of the balance sheet asset “Non-current assets”, as well as 212503 231646 484821 567704 87467 172057 605928 759976 P1 most urgent liabilities accounts payable P2 short-term liabilities short-term loans and borrowed funds. P3 long-term liabilities long-term loans and borrowed funds. P4 permanent liabilities - own funds 374506 610533 -162003 -378887 33.78 -66.95 102867 17420 381954 550284 79.64 97.23 221 62015 87246 110042 18.19 19, 44 433532 475475 172396 284501 35.95 50.27 debtors with a maturity period of more than 12 months after the reporting date. The balance is considered absolutely liquid if the following relationships are met: A1 > = P1 A2 > = P2 A3 > = P3 A4< = П4 Если выполняются первые три неравенства в данной системе, то это влечет выполнение и четвертого неравенства, поэтому важно сопоставить итоги первых трех групп по активу и пассиву. Для нашего случая выполняются неравенства 2 и 3, то есть быстро и медленно реализуемые активы покрывают краткосрочные и долгосрочные кредиты и займы. Но при этом неравенства 1 и 4 не выполняются: наиболее ликвидных активов недостаточно для покрытия наиболее срочных пассивов, как на начало, так и конец отчетного периода, а труднореализуемые активы значительно превышают собственные средства, причем в конце периода на большую сумму, чем в начале. Классификация типа финансовой устойчивости на основе матрицы ликвидности показывает, что: А1+А2> P1, therefore, in the current period the stability of the enterprise is normal; A1+A2>P1+P2, therefore, in the short term, the stability of the enterprise is also normal; A1+A2>P1+P2+P3, and in the long term the stability of the enterprise is of the normal type. Assessing the solvency of an enterprise The main signs of solvency are: - the presence of a sufficient amount of funds in the company's current account; - absence of overdue accounts receivable. Thus, the larger the amount of funds in the current account, the more likely it is that it has sufficient funds for current settlements and payments. At the same time, the presence of insignificant balances on the current account does not mean at all that the enterprise is insolvent; funds can be transferred to the current account within the near future, and some types of assets, if necessary, can easily be converted into cash, etc. Insolvency, as a rule, is indicated by the presence “sick” items in the statements (“Losses”, “Loans and loans not repaid on time”, “Overdue accounts payable”, “Overdue bills issued”). We will assess your solvency. Absolute and relative indicators are used to assess solvency. Of the absolute indicators, the main one is the “Functioning Capital” indicator, which characterizes the amount of own working capital. The algorithm for calculating the indicator is as follows: FC = TA-TO, where FC is operating capital; TA - current assets; TO - current obligations. As a result of calculations, if the indicator turns out to be positive, then the enterprise is solvent, but if it is negative, then it is accordingly insolvent. The optimal value is 1/2 of current liabilities. The economic interpretation of FC can be considered as follows: it shows how much working capital remains at the disposal of the enterprise after settlement of short-term obligations. Let's calculate the FC of the enterprise we are considering. FKn.p. = 790019 – 477594 = 312425; FKk.p. = 973171 – 632969 = 340202. From the calculations it is clear that the company is solvent. / Now let's look at relative indicators. Current ratio. This indicator gives a general assessment of the liquidity of the enterprise, showing how many rubles of working capital account for one ruble of current short-term debt. Ktl = st.290-st.220-st.244-st.252 / st.610+st.620+st.630+st.660 Ktl n.p. = 790019 – 22962 /102867 + 374506 + 221 = 1.61 Ktl kp = 973171 – 51432 / 17420 + 610533 + 5016 = 1.46. The logic of this comparison is as follows: the enterprise pays off its short-term liabilities mainly at the expense of current assets, therefore, if current assets exceed short-term liabilities in value, the enterprise can be considered as successfully operating (at least theoretically). The size of the excess is in relative form and is specified by the current liquidity ratio. The value of the indicator can vary significantly by industry and type of activity, and its reasonable growth is considered a favorable trend. The standard value of the indicator is from 1 to 3. If the value is less than 1, then this indicates the insolvency of the enterprise, if more than 3, this indicates the irrational use of funds. In our case, the value of the current liquidity ratio is within the normal range, but at the end of the period it tends to decrease, and therefore approaches the critical line. Quick ratio. In its semantic meaning, the indicator is similar to the current liquidity ratio, however, it is calculated for a narrower range of current assets, when the least liquid part of them, industrial inventories, is excluded from the calculation. The liquidity ratio is calculated as follows: Kb.l. = (st.290-st.220-st.210-st.230-st.244-st.252) / (st. 610 + st.620 + st.630 + st.660) Kb l n n = 1, 47 Kb.l k.p = 1.27 The logic of such an exception consists not only in the significantly lower liquidity of inventories, but also in the fact that the funds that can be gained in the event of a forced sale of inventories may be significantly lower than the costs of their acquisition. The standard value of the indicator is from 0.7 to 1.5, below the norm is chronic insolvency, above is irrational use of funds. Both at the beginning and at the end of the reporting period, this coefficient for the analyzed enterprise is within the normal range. Absolute liquidity (solvency) ratio. The ratio under consideration characterizes what part of short-term borrowed obligations can be repaid immediately using available funds: Kb.l. = (st.250+st.260) / (st.610 + st.620 + st.630 + st.660) Kb.l n.p. = 0.44 Kb.l k.g. = 0.37 The norm for this indicator varies from 0.2 to 0.7. Although such an assessment is also relative, because its value is largely and primarily determined by the numerator of the fraction. The amount of short-term liabilities is a relatively stable value, at least much less volatile compared to the amount of cash. , which depends on many factors of the current order. The variability of the amount of funds is caused primarily by their absolute liquidity, i.e. possibility of "quick spending". Table 2.4 Assessment of the solvency of the enterprise Indicator Beginning of period End of period Absolute change Operating capital 312425 340202 27777 Current liquidity ratio Quick liquidity ratio 1.61 1.46 -0.15 1.47 1.27 -0.20 Absolute ratio 0.44 0, 37 -0.08 liquidity Conclusion. The enterprise is solvent, has a significant amount of operating capital, and at the end of the period its value has increased. All relative indicators of solvency are normal, however, it should be noted that they tend to decrease. Assessing the financial stability of an enterprise Absolute indicators of financial stability The task of analyzing financial stability is to assess the size and structure of assets and liabilities. This is necessary to answer the questions: how independent is the organization from a financial point of view, is the level of this independence increasing or decreasing, and whether the state of its assets and liabilities meets the objectives of its financial and economic activities. Table 2.5 Analysis of absolute indicators of financial stability indicators of the decoder at the beginning at the end of the change in the period of the period of the period of the period of the period of the period of 1 2 3 4 5 1. Sources of own funds 433532 475475 41943 2. Fixed assets and investments 121107 192272 71165 3. Own working capital 1-2 312425 283203 -29222 4. Long-term loans and borrowed funds 0 56999 56999 5. Availability of own and long-term 3+4 312425 340202 27777 borrowed sources of formation of inventories and costs 6. Short-term loans and borrowed funds 477594 632969 155375 7. Total amount of main sources 5+6 79 0019 973171 183152 formation of inventories and costs 8. Inventories and costs 84456 169527 85071 9. Surplus or shortage of own 3-8 227969 113676 -114293 working capital 10. +/- own and long-term sources 5-8 227969 170675 -57294 formation of inventories and costs 11. +/- the total value of the main sources 7-8 705563 803644 98081 formation of reserves 12. Three-component indicator of type S= (1,1,1) S= (1,1,1) financial situation It is possible to distinguish 4 types of financial situations: 1 Absolute stability of financial condition. This type of situation is extremely rare, represents an extreme type of financial stability and meets the following conditions: Fs O; Ft O; Fo 0; those. S= (1,1,1); 2. .Normal stability of financial condition, which guarantees solvency: Fs< 0; Фт0; Фо0; т.е. S={0,1,1}; 3.Неустойчивое финансовое состояние, сопряженное с нарушением платежеспособности, но при котором всё же сохраняется возможность восстановления равновесия за счет пополнения источников собственных средств за счет сокращения дебиторской задолженности, ускорения оборачиваемости запасов: Фс<0; Фт<0;Фо0;т.е. S={0,0,1}; 4. Кризисное финансовое состояние, при котором предприятие на грани банкротства, поскольку в данной ситуации денежные средства, краткосрочные ценные бумаги и дебиторская задолженность не покрывают даже его кредиторской задолженности: Фс<0; Фт<0; Фо<0; т.е. S={0,0,0}. На ОАО «Белон» трёхкомпонентный показатель финансовой ситуации S={1;1;1} как в начале, так и в конце отчетного года. Таким образом финансовую устойчивость в начале и в конце отчётного периода можно считать абсолютной. Коэффициенты финансовой устойчивости. Все относительные показатели финансовой устойчивости можно разделить на 2 группы: 1. показатели, определяющие состояние оборотных средств; 2. показатели, определяющие состояние основных средств. Конкретно рассмотрим и рассчитаем каждую группу. К первой группе относятся следующие коэффициенты. Коэффициент обеспеченности собственными средствами. Коэффициент характеризует степень обеспеченности предприятия собственными оборотными средствами, необходимыми для финансовой устойчивости. Коб =(СК - ВА) / ОА Коэффициент обеспеченности материальных запасов собственными оборотными средствами. Характеризует в какой степени материальные запасы покрыты собственными средствами. Коб = (СК-ВА)/Запасы Коэффициент маневренности собственного капитала. Показывает, какая часть собственного капитала используется для финансирования текущей деятельности, т.е. вложена в оборотные средства, а какая часть капитализирована. Кман = (СК - ВА) / СК Ко второй группе относятся следующие показатели. Индекс постоянного актива. Характеризует долю внеоборотных активов в источниках собственных средств. Кпост = ВА/СК Коэффициент долгосрочного привлечения заемных средств. Показывает какая часть финансируется за счет долгосрочных заемных средств для обновления и расширения производства наряду с собственными средствами. Кдпзс = ДП / (СК + ДП) Коэффициент износа, характеризует техническое состояние основных средств и показывает, в какой степени профинансирована за счет износа замена и обновление основных средств. Ки =И / Осперв Коэффициент реальности стоимости имущества, характеризует долю средств производства в стоимости имущества, уровень производственного потенциала предприятия, обеспеченность производственными средствами производства. Крси = (ОС + М + НЗП) / Wб = (ст. 122 + ст.211 + ст.213) / ст. 300 Коэффициент финансовой независимости, характеризует долю собственного капитала в совокупном капитале предприятия. Кфнз = СК / ТО = ст.490 + ст. 650/ст.300 Коэффициент финансовой устойчивости, характеризует ту часть актива едприятия, которая финансируется за счет устойчивых источников. Кфу = (СК + ДО) / Wб = (ст. 490 + ст.590) / ст.700 Коэффициент финансовой активности, характеризует, сколько заемных средств предприятие привлекло на один рубль собственных средств. Ккап = ЗК/СК = (ст.590 + ст.690 - ст.640 - ст.650) / (ст.490 + ст.640 + ст.650) Расчеты данных коэффициентов сведем в таблицу (табл.2.6). Таблица 2.6 Расчет коэффициентов рыночной устойчивости Показатель Норма Начало Конец Абсолютное периода периода изменение Коэффициент обеспеченности собственными средствами 0,1-0,5 Коэффициент обеспеченности материальных запасов собственными оборотными средствами 0,6-0,8 Коэффициент маневренности собственного капитала 0,5 Индекс постоянного актива 0,5 Коэффициент долгосрочного привлечения заемных средств Коэффициент износа Коэффициент реальности стоимости имущества более 0,5 Коэффициент финансовой независимости более 0,5 Коэффициент финансовой устойчивости 0,8-0,9 Коэффициент финансовой активности менее 1 0,36 0,34 -0,03 4,66 2,77 -1,88 0,66 0,69 0,03 0,31 0,23 -0,07 0,00 0,11 0,11 0,38 0,41 0,03 0,09 0,09 0,00 0,48 0,41 -0,07 0,48 0,46 -0,02 1,10 1,45 0,35 Как показывают данные таблицы 2.6, коэффициенты обеспеченности собственными средствами, обеспеченности материальных запасов собственными оборотными средствами, маневренности собственного капитала находятся в норме. Однако, такие коэффициенты, как финансовой независимости, финансовой устойчивости находятся ниже нормы и имеют тенденцию к дальнейшему снижению, а коэффициент финансовой активности возрастает, что можно охарактеризовать отрицательно. Анализ деловой активности предприятия Количественная оценка и анализ деловой активности могут быть сделаны по двум направлениям: - степень выполнения плана (установленного вышестоящей организацией или самостоятельно) по основным показателям, обеспечение заданных темпов их роста; - уровень эффективности использования ресурсов коммерческой организации. При оценке степени выполнения плана по основным показателям целесообразно сопоставлять темпы роста следующих показателей: Трп - темп роста прибыли; Трв - темп роста выручки; Трв - темп роста валюты баланса. Оптимальным являются следующие соотношения темповых показателей: Трп>Trv>Trv Let's calculate these growth rates and compare them using a table. Table 2.7 Calculation of growth rates of profit, revenue and balance sheet currency Indicator Beginning of period End of period Growth rate Profit 213,898 115,686 54.08 Revenue 2,359,092 3,423,905 145.14 911,126 1165,443 127.91 Balance sheet currency The inequality discussed above will have the form: Trp<Трв> Trv From the inequality it is clear that sales volume is growing at a very high rate, but profits have decreased. From all this it follows that the organization’s resources are used ineffectively, and the return on each ruble invested is reduced. To analyze business activity, the following main indicators are used: 1. total capital turnover ratio to  Exp Total _ balance sheet 2. Mobile assets turnover ratio to  Exp OA 3. material turnover ratio to  Exp Inventories _ and _ costs 4. finished goods turnover ratio products to  Exp GP 5. accounts receivable turnover ratio to  Exp Debit. debt  6. Average turnover period of accounts receivable n 360 Turnover _ debit. debt  ti 7. accounts payable turnover ratio to  Vyr Credit. debt  8. Average turnover period of accounts payable n 360 Turnover _ credit. debt  ti 9. Capital productivity of fixed assets and other non-current assets on the balance sheet f  Exp CostO F 10. Equity turnover ratio to  Exp Own capital Table 2.8 Calculation of business activity indicators of JSC Belon Indicator 1 1. total capital turnover ratio Algorithm calculation Value 2 3 to  2. Mobile assets turnover ratio to  to  p OA Ext 3.884 26.962 Ext GP 136.656 Ext Debit. debt - 6,506 360 Turnover - debit. debt  ti to  p 3.298 Exp Inventories _ and _ costs to  7. turnover ratio of accounts payable 8. Average turnover period of accounts payable 9. Capital productivity of fixed assets and other non-current assets on the balance sheet 10. Turnover ratio of equity capital Total _ balance sheet to  3. turnover ratio of material assets 4. turnover ratio of finished products 5. turnover ratio of accounts receivable 6. Average turnover period of accounts receivable Ex 55.333 Ex Credit. debt  6,952 360 Turnover _ credit. debt  ti f  k  51,785 Exp CostO F 21,852 Exp Own capital 7,533 Business activity is manifested in the dynamism of the organization’s development, its achievement of its goals, which is reflected in absolute cost and relative indicators. Business activity in the financial aspect is manifested, first of all, in the speed of turnover of its funds. Analysis of business activity consists of studying the levels and dynamics of various financial ratios - turnover indicators. They are very important for the organization. Firstly, the size of the annual turnover depends on the speed of funds turnover. Secondly, the size of the turnover, and therefore the turnover rate, is associated with the relative amount of semi-fixed expenses: the faster the turnover, the less of these expenses there are for each turnover. Thirdly, the acceleration of turnover at one or another stage of the circulation of funds entails an acceleration of turnover at other stages. The financial position of an organization and its solvency depend on how quickly funds invested in assets turn into real money. Thus, to analyze business activity, organizations use two groups of indicators:  General indicators of asset turnover.  Asset management indicators. Indicators of business activity refer to indicators that provide information about the efficiency of the enterprise and the effectiveness of management. Turnover indicators show how many times a year (or during the analyzed period) certain assets of the enterprise “turn over”. The reciprocal value multiplied by 360 days (or the number of days in the analyzed period) indicates the duration of the turnover. The turnover rate shows the time it takes for the analyzed item to be converted into cash. Therefore, with an increase in the turnover rate, we can talk about an increase in the solvency of the organization. When calculating enterprise performance indicators (turnover and profitability indicators), the “Enterprise Balance Sheet” and “Profit and Loss Statement” reports are used. Analysis of the efficiency of the enterprise (calculation of profitability ratios). According to the income statement, you can analyze the dynamics of return on sales, net profitability, as well as the influence of factors on these indicators. 1. Let's calculate the return on sales. R=P/Vr=st.050/st.010. R = 341832/2359092 = 14.5%, R = 197342 / 3423905 = 5.8%, Return on sales decreased by 8.7%, which was significantly influenced by an increase in cost of sales. 2. Consider the net profitability indicator. R = P/Vr = st.190/st.010, R = 213898 / 2359092 = 9.1%, R = 115686 / 3423905 = 3.4%, Net profitability decreased by 5.7%. Profitability indicators 1. return on assets (property) shows how much profit the enterprise receives from each ruble invested in assets. Ra = Pch/A, A is the average value of assets, Pch is the profit remaining at the disposal of the enterprise / net profit. 2. return on current assets shows how much profit the company received from one ruble invested in current assets. Ra = Pch / Ta, Ta is the average value of the current asset. 3. return on investment, an indicator reflecting the efficiency of using funds invested in the enterprise. Ri = P/(Sk+Do), P is the total amount of profit for the period, Sk is the average amount of equity capital, Do is the average amount of long-term liabilities. 4. return on equity, reflects the share of profit in equity. Rsk = Pch/Sk, 5. profitability of the main activity, shows what is the share of profit from the products of the main activity in the amount of production costs. Рд = Pr/3, Pr-profit from sales, 3- costs of production. 6. profitability of production (assets) shows how effective the return of production assets is. Rpf = P/(OPF=MOA), OPF is the average value of fixed production assets, MOA is the average value of mat. equipped facilities. 7. The profitability of products sold shows the amount of profit per ruble of products sold. Рп = Пч/Vр, Vр - revenue from sales of products. This indicator indicates the effectiveness of not only the economic activities of the enterprise, but also the pricing processes, both in terms of the total volume of product sales and for individual types. 8. Modified product indicators are return on sales volume. Рvп=Пр/Вр, Table 2.9 Main indicators of the enterprise's activity Indicators Reporting year 1. Average value of assets 1038284.5 2. Capital and reserves, average value 454503.5 3. Long-term liabilities 56999 4. Current assets 881595 5. Sales proceeds goods 3,423,905 6. Profit from sales 197,342 7. Net profit 115,686 8. Production costs 3,046,532 9. OPF, average value 82954.5 11. Return on assets 11.14 12. Return on current assets 13.12 13. Return on investment 38.58 14. Return on equity 25.45 15. Return on core activities 6.48 16. Return on production (funds) 237.89 17. Return on products 3.38 18. Return on sales 5.76 Conducted financial analysis state of the organization allows us to draw the following conclusions and offer the following recommendations. The assessment of the financial stability of the enterprise showed a type of financial stability that is extremely rare - absolute stability, which is associated primarily with the small size of inventories and costs, as well as working capital, as a result of which the size of its own working capital turned out to be quite sufficient to cover them. An analysis of the company's solvency showed that the company has a lack of cash and short-term financial investments, as a result of which it is currently unable to repay its most urgent payments - accounts payable. Moreover, towards the end of the period this deficiency became even more acute. The company's quickly and slowly realizable assets cover its short-term and long-term liabilities. But the last inequality – the larger size of own sources compared to the size of non-current assets is not satisfied. Classification of the type of financial stability based on the liquidity matrix showed that, both in the current and in the short and long term, the stability of the enterprise belongs to the absolute type. The analysis of financial ratios showed that the values ​​of most indicators are normal, however, attention is drawn to the fact that by the end of the reporting period the values ​​of the ratios worsened compared to the beginning of the period, which is primarily due to an increase in the share of borrowed funds in the structure of the enterprise’s sources of capital . An analysis of profits suggests that all profit indicators (balance sheet profit, net profit) of Belon OJSC during the reporting period deteriorated significantly compared to the same previous period, as a result of which the company’s net profit decreased by 98,212 thousand rubles. This circumstance is caused primarily by an increase in production costs by 67%, while the revenue growth rate is 45%. Sales profits were also negatively affected by an increase in management expenses, a fall in operating income and income from participation in other organizations. The main ways to improve the financial condition of the Belon OJSC enterprise, in our opinion, may be the following: - careful use of external sources of financing, which is manifested in the initial increase in equity capital, since an increase in borrowed capital reduces the financial stability of the enterprise; - reduction of main cost items. Considering that at the moment the situation of the enterprise is far from the worst, the adoption of these measures will help improve those financial indicators that require improvement and transfer it to the category of investment attractive.

Ratio analysis is part of financial analysis, which acts as a system of extended initial analysis of financial statements. The purpose of such an analysis is to provide information about economic transactions, the functioning of the enterprise and, above all, its financial condition. This information is used by management in the process of managing the business environment: creditors, contractors, investors, auditors, etc. The methodology for conducting ratio analysis of the financial condition of an enterprise has its own characteristics and stages for each block of ratios.

The essence of analysis

The coefficient analysis method is a kind of quantitative research and is based on indicators representing the ratio of specific financial values ​​that are important from the point of view of their relationships. The choice of indicators that can be calculated for financial companies is very wide. However, calculating an excessive number of indicators for ratio analysis of a company’s financial condition can confuse the analysis. Therefore, countries with market economies usually use a limited set of the most effective indicators to characterize the diverse aspects of a company’s management.

The ratio analysis method is performed on the basis of the firm's original financial statements, taking into account, in particular, the economic values ​​included in the balance sheet and financial results. When calculating ratios, it is important to take into account the significant difference between the balance sheet, which illustrates the financial condition of the organization as of the date of preparation, and the financial results report, which represents data for the period preceding the balance sheet date. When constructing ratio analysis indicators consisting of amounts coming from both of these documents, the meaning of the profit and loss values ​​should be taken into account. The arithmetic average of the balance sheet indicators is also taken into account.

Certain values ​​of indicators when applying the coefficient method of financial analysis are assessed by equating them to established standards. These standards are expressed as ranges of values ​​or limit values. The methodology of their horizontal analysis is used, in which changes in indicators are assessed in subsequent periods, that is, the trends of these changes are analyzed. The interpretation of balance sheet ratio analysis also uses the evaluation of the obtained values ​​against the background of the industry in which the company operates.

This is especially important due to the fact that the norms of indicators adopted in the literature are calculated for all enterprises operating in various sectors of industry, trade, and agriculture in different countries. When conducting coefficient analysis, one should take into account the possibility of incomparability of the obtained values, due either to changes in macroeconomic conditions in the economy, or to differences in the construction of individual indicators.

The names of the areas of indicator analysis used in the literature, in which analytical indicators are classified, are not uniform.

Study of cash flows using ratios

To conduct ratio analysis, enterprises use the following cash flow research ratios:

• solvency indicator K1

K1 = (DSn+DSp)/DSi,

where DSN - funds for the beginning;

DSP - funds that have been received;

This ratio determines whether the company is able to provide cash payments for a certain period of time using the balance of bank accounts, cash in hand or inflows for the period.

The optimal value of the coefficient when conducting ratio analysis of cash flows is 1.

• solvency ratio K2

K2 = DSP/DSi,

where DSP is the funds received;

DSi - funds that have been spent.

The coefficient means that the company has its own funds to pay off debts (or, conversely, does not). The standard is also 1.

• self-financing interval

I = (DS+KFV-DZ)/Rds,

where KFV is short-term financial investments, average values ​​for the period;

DZ - average value of receivables for the period;

DS - cash;

Rds - average daily cash flow.

When conducting a cash flow ratio analysis, this coefficient shows whether the company has the ability to carry out its activities without interruption with the help of cash resources received for the sale of products.

• Beaver coefficient:

Kb = (PE+Am) / (DO+KO),

where Chp is the amount of net profit;

Am is the amount of depreciation;

Before - long-term obligations;

KO - short-term obligations.

This ratio characterizes the solvency of the company. It can be calculated based on cash flow. The standard ranges from 0.4 to 0.45.

• cash adequacy indicator:

Kd = DS / OP,

where DS is cash as of the date;

OP - obligations to be repaid.

The indicator indicates the current solvency of the company at the moment and period of time under study.

• revenue quality ratio:

Kv = DS / V

It characterizes the share of cash in the company's revenue structure. If the ratio is high, we can say that the company is financially stable.

• net cash flow adequacy indicator K1:

K1 = DPtd / (ZK+Z+D),

where DPtd is the net cash flow from current activities;

ZK - borrowed capital;

Z - reserves;

D - dividends.

Determines the sufficiency of the net cash flow generated by the organization, taking into account the financed needs

• cash flow efficiency ratio K2

K2 = DPtd/DPo,

where DPO is the outflow of cash flows.

• cash flow profitability indicator K3

K3 = PE / NDP * 100,

where PE is net profit;

NPV - net cash flow for the period

The coefficient method of cash flow analysis allows a company to assess the efficiency of using cash and the company's finances.



Liquidity research using ratios

In liquidity ratio analysis, it is studied in two aspects:

• in a statistical sense: in relation to a specific point, for example, at the balance sheet date, using the main financial statements: balance sheet and income statement and traditional ratios;
• in dynamic terms of financial ratio analysis: for a certain period, based on the cash flow statement.

Thus, a study is carried out of the company’s liquidity, that is, its ability to repay short-term obligations that are due within 1 year.

• Ktl current liquidity indicator:

Ktl = OA / KO,

where OA is the amount of current assets, t.r.;

KO - short-term obligations, t.r.

This indicator determines how many times the assets at the disposal of the company are ways to cover its current obligations to third parties: suppliers, employees, government agencies, etc.

Determining the level of current assets and liabilities is possible only by the enterprise itself, since the information necessary to adjust current assets and liabilities is not presented in the financial reporting documents. For this reason, the unadjusted values ​​of current assets and short-term liabilities are reflected in the modified form of the coefficient:

(Z + DZ + DS + POA) / TO,

where Z - reserves;

DZ - receivable;

Ds - cash;

POA - other current assets;

TO - current obligations

The rational value of this indicator should be within the specified range. An index below 1.2 indicates a threat to the company's ability to meet its current obligations, which can directly impact the performance of the company's business operations. An index above 2.0 indicates a company surplus, that is, poor management.

• Quick liquidity indicator

Kbl = (KDZ+FV + DS) / TO,

where KDZ is short-term receivables, t.r.

FV - financial investments, t.r.

DS - cash, t.r.

TO - current liabilities, t.r.

This indicator determines how many times the current assets with a high degree of liquidity at the disposal of the company cover its current liabilities to third parties. This ratio is adjusted in relation to the current ratio for the least liquid current assets - inventories and accruals.

The optimal level of this ratio should be 1.0, that is, current liabilities should be fully covered by current assets with a high degree of liquidity. In the case of enterprises characterized by a rapid turnover of assets (for example, trade), this standard is reduced to the level of 0.7.

A low value of this indicator may indicate liquidity problems, while a high value of this indicator indicates unproductive accumulation of cash and high levels of receivables, which can have a negative impact on the company's results.



Debt analysis using ratios

When conducting a ratio analysis of an enterprise, the ratio of debt to assets, to capital and equity in the debt meter is always in the denominator. It should be emphasized that the calculation of total capital also includes debt and equity.

This analysis is closely related to the ratio analysis of the company's solvency.

• Leverage ratio is the ratio of the average value of assets to equity capital, calculated as an average value.
• The interest coverage ratio is EBIT divided by interest.
• The principal coverage ratio is the amount of lease payments and earnings before interest and taxes divided by the sum of interest and lease fees.

Debt ratios characterize, on the one hand, the degree of debt of an enterprise, and on the other, its ability to repay obligations.



• Total debt ratio Kob:

Cob = O / A,

where O is the total amount of the company's liabilities;

A - the company's assets.

The total debt capital ratio KZK determines the share of borrowed capital in financing the company's assets.

The accepted, acceptable level of participation of borrowed capital in the company's assets is within the established range. A ratio below 0.57 can be interpreted as poor management of funding sources, while a ratio above 0.67 indicates a high risk of the company losing its ability to repay its debt. In enterprises with an exceptionally bad economic and financial situation, the total debt ratio of borrowed capital exceeds 1.

• Long-term debt ratio Kdz

Kdz = DO / SK,

where DO - long-term obligations;

SK - equity capital.

This ratio, also called the debt ratio, risk ratio or leverage ratio, reports the level of coverage of long-term liabilities by equity. According to the standard for this indicator, its quantity must be within a specified range. If the indicator exceeds the level of 1.0, the company is considered to have a large debt.

• Debt to equity ratio:

Kdss = OO / SK,

where OO - general obligations;

SK - equity capital.

This indicator informs about the company's equity debt level. And at the same time, about the relationship between attracted capital and own capital as a source of financing for an enterprise. It is assumed that the value of this indicator should not exceed 1.0 for large and medium-sized enterprises and 3.0 for small enterprises.

• Debt coverage ratio based on the net financial result of Kp:

Kp = CFR/(KR+P),

KP - capital installments;

P - percent

This ratio determines how many times the net financial result covers the service of principal payments and interest. In a company with the right financial situation, this ratio should be greater than 1.0.

• Debt service coverage ratio EBIT:

Kp = (VFR + P) / (KR + P),

where FVR is the gross financial result;

P - interest;

KR - capital installments

This indicator shows how many times earnings before taxes and interest cover the repayment of capital contributions and interest, i.e. to what extent profits provide debt service. The minimum threshold is 1.2. The World Bank suggests that it should be more than 1.3.

• Debt service coverage level from cash flow Y:

U = (CFR + A)/ (KR+P),

where NFR is the net financial result;

A- depreciation;

KR - capital installments;

P - percent

This ratio determines the coverage of debt service due to the net financial surplus. The optimal threshold is 1.5, i.e. the amount of profit before tax plus depreciation should be at least 50% higher than the annual loan payment plus interest.

The interest coverage ratio measures a company's ability to pay interest on a timely basis. If both interest and capital contributions must be paid at the same time, there is no need to include this figure in the analysis.



The essence of financial sustainability

In financial ratio analysis, financial strength is a situation in which the financial system, that is, financial intermediaries, markets and market infrastructures, is able to withstand economic shocks and sudden adjustments in financial imbalances.

Financial stability concerns the study of a firm's capital ratios and their relationship to each other.

Thanks to the coefficient analysis of financial stability, the likelihood of serious financial distortions in the process of financial intermediation, which can negatively affect the functioning of the real economy, is reduced.

In market terms, financial stability is evidence of a company's stability and its ability to survive. That is, it indicates the state of the company’s resources now, the ability to freely use the company’s finances, while ensuring the creation of a product and covering costs.

The main goal of management when conducting ratio analysis of financial condition is the ability to ensure the stability of a company whose activities are focused on generating income.

The financial strength of a company is a certain state of the organization, when the solvency is constant over time, and debt and equity capital have a rational structure. As a result, stability is reflected by the state of financial resources that corresponds to the market and indicates the need for company development.

Stability and sustainability are formed in the process of economic work and are the main element of the company's resilience.

Study of financial stability using ratios

Objectives of studying monetary financial stability when conducting ratio analysis of enterprise finances:

• assessing the solvency and financial stability of the company, identifying violations and their circumstances;
• development of advice and ways to increase the financial stability and solvency of the company;
• effective implementation of resources and normalization of monetary stability;
• forecasting possible monetary results and probable monetary stability depending on different methods of using resources.

Among the main coefficients are the following.

• Financial stability coefficient:

Kf = (SK+DK)/P,

where SK is the company’s equity capital;

LK - long-term plan obligations;

P - company liabilities.

The standard for this coefficient is 0.8-0.9. Falling within this framework characterizes the stability of the company from a positive point of view:

• The debt capital concentration indicator is the difference between “1” and the financial stability indicator. If a company's level of capital is high, then it can be characterized positively in terms of stability. In such a situation, investors are more willing to invest in the development of the company, since they are confident that in the event of unfavorable factors, their investments can be returned at the expense of their own capital.
• The opposite indicator to the value of autonomy is the indicator of financial dependence, which is determined by the ratio of liabilities to the amount of equity capital and long-term plan obligations.
• The agility indicator reflects the portion of capital allocated to the current functioning of the company. This indicator does not have a standard, but its growth trend is considered a positive thing.
• The indicator of the ratio of borrowed and equity capital of a company characterizes the amount of equity capital per ruble of borrowed capital. If the value is higher than 1, a situation of excess borrowed funds arises, which adversely affects the stability of the organization.
• Indicator of the security of current assets with own working capital. It reflects how much working capital is generated by the company's own funds. The standard value is defined above 0.1.



Profitability Analysis Using Ratios

Profitability ratios are closely related to the company's results, which are used in ratio analysis of financial statements. There are no specific standards for some of the indicators in this category that relate to profit. It is assumed that the purpose of the company's activities is to make a profit, therefore each of the indicators related to it should not take negative values.

• Coefficient of covering losses of previous years with current profit Kp:

KP = TP / U * 100,

where TP is current profit;

Y - loss from previous years.

An index greater than 100% indicates that the company has fully covered the losses of previous years. An indicator in an open range (0% -100%) indicates that the company has covered part of its losses. If this ratio is 0%, it means that it is not generating current profits and cannot cover the losses of previous years.

• In this case, it is also advisable to calculate the coefficient for covering accumulated losses with equity capital Kn:

Kn = SK / U * 100,

where SK is equity capital;

If the ratio does not exceed 100%, the financial position of the enterprise is especially difficult, since it cannot cover losses using its own capital.

• Sales return Rp:

RP - VFR/D * 100,

where VFR is the gross financial result;

D - sales income.

This indicator determines the profitability of sales of an enterprise, that is, the amount of profit before tax on average for each unit of sales revenue. This ratio is independent of the tax rate, which varies depending on the country of operation.

The optimal size of this indicator depends on the type of business activity. In businesses characterized by short production cycles and the ability to sell quickly, profitability may be lower (short cycles mean lower cost of freezing funds). Therefore, when assessing this indicator, it is justified to refer to the average profitability in the industry in which the enterprise under study operates.

• Return on sales ROS: ROS = CHF / D * 100,

where NFR is the net financial result;

D - sales income.

Return on sales shows the share of net profit in the cost of sales. This ratio depends on the tax rate. The lower the value of this indicator, the higher the sales value must be realized to make a profit. A high value of this indicator indicates high sales efficiency.

Return on assets and equity

• Return on assets ROA:

ROA = FR / A * 100,

A - total assets

The ratio determines the amount of profit for each monetary unit involved in the company's assets. This indicator is considered the best individual indicator of managerial competencies in management.

• Return on equity ratio ROE:

ROE = FR / SK * 100,

where FR is the financial result;

SK - equity capital

The ROE ratio shows the company's return on equity, that is, how much money is returned on the funds invested by the owners. The size of this indicator is compared with the annual return on investment, and its size must be at least equal to the inflation rate so that the enterprise does not undergo decapitalization.

A properly functioning enterprise maintains the following relationships: ROE>ROA>ROS.



Analysis of business activity using ratios

Ratio analysis of reporting is not presented without an analysis of the company's business activity. Global asset turnover ratio Cob:

Cob = D/A,

where D is sales income;

A - assets

This indicator determines how many times a company's sales exceed its assets. Its size depends on the specifics of the industry - it is low in industries with high capital intensity and high in enterprises with a large share of human labor. Therefore, it is especially useful for comparing the performance of companies in the same industry.

Fixed asset turnover ratio Kos:

Kos = D / OS sr,

where OS av is the average stock of fixed assets.

This indicator determines the level of revenue from fixed assets. Its average value is 1.6. This indicator is useful for assessing enterprises with a high share of fixed assets in assets. When interpreting this indicator, it should be taken into account that in the case of enterprises with old fixed assets that have already been depreciated, the value of this indicator will be overestimated.

Working capital turnover ratio Kobob:

Kobob = D/OBS,

where OBs are average current assets

This coefficient determines the turnover rate of current assets (the number of turnovers made by current assets per unit of time). The higher it is, the better the financial condition of the enterprise.



Conclusion

Ratio analysis is a continuation of the preliminary analysis of financial statements. This analysis is based on the relationships of certain financial quantities that are important in terms of their relationships.

Financial ratio analysis allows you to determine the financial position of an enterprise using the following ratios:

• liquidity;
• solvency;
• debt;
• efficiency;
• financial stability.

Certain values ​​of the coefficient financial analysis of the enterprise by indicators are assessed individually in the context of the enterprise environment. This assessment is carried out by comparison with established standards, expressed in ranges of values ​​or boundary values, as well as by their horizontal analysis, when the change in these indicators is assessed in subsequent periods, in particular, the trend of these changes.

Financial analysis at an enterprise is needed for an objective assessment of the economic and financial condition in periods of past, present and projected future activity. To identify weak production areas, areas of problems, and identify strong factors that management can rely on, the main financial indicators are calculated.

An objective assessment of a company’s position in terms of economics and finances is based on financial ratios, which are a manifestation of the relationship between individual accounting data. The goal of financial analysis is to achieve the solution of a selected set of analytical problems, that is, a specific analysis of all primary sources of accounting, management and economic reporting.

Main goals of economic and financial analysis

If the analysis of the main financial indicators of an enterprise is considered as identifying the true state of affairs in the enterprise, then the results will provide answers to the following questions:

• the company’s ability to invest funds in investing in new projects;
• the current progress of affairs in relation to material and other assets and liabilities;
• the state of loans and the company’s ability to repay them;
• the existence of reserves to prevent bankruptcy;
• identifying prospects for further financial activities;
• assessment of the enterprise in terms of value for sale or re-equipment;
• tracking the dynamic growth or decline of economic or financial activities;
• identifying reasons that negatively affect business results and finding ways out of the situation;
• consideration and comparison of income and expenses, identification of net and total profit from sales;
• studying the dynamics of income for basic goods and in general from all sales;
• determining the portion of income used to reimburse costs, taxes and interest;
• studying the reasons for the deviation of the amount of balance sheet profit from the amount of sales income;
• study of profitability and reserves to increase it;
• determining the degree of compliance of the enterprise's own funds, assets, liabilities and the amount of borrowed capital.

Stakeholders

An analysis of the company's main financial indicators is carried out with the participation of various economic representatives of departments interested in obtaining the most reliable information about the affairs of the enterprise:



• internal subjects include shareholders, managers, founders, audit or liquidation commissions;
• external ones are represented by creditors, audit firms, investors and government officials.

Financial analysis capabilities

The initiators of the analysis of the enterprise’s work are not only its representatives, but also employees of other organizations interested in determining the actual creditworthiness and the possibility of investing in the development of new projects. For example, bank auditors are interested in the liquidity of a firm's assets or its current ability to pay its bills. Legal entities and individuals wishing to invest in the development fund of a given enterprise try to understand the degree of profitability and risks of the investment. An assessment of key financial indicators using a special technique predicts the bankruptcy of an institution or indicates its stable development.

Internal and external financial analysis

Financial analysis is part of the general economic analysis of the enterprise and, accordingly, part of a complete economic audit. The full analysis is divided into internal management and external financial audits. This division is due to two practically established systems in accounting - management and financial accounting. The division is recognized as conditional, since in practice external and internal analysis complement each other with information and are logically interconnected. There are two main differences between them:

• by accessibility and breadth of the information field used;
• degree of application of analytical methods and procedures.

An internal analysis of key financial indicators is carried out to obtain summarized information within the enterprise, determine the results of the last reporting period, identify free resources for reconstruction or re-equipment, etc. To obtain results, all available indicators are used, which are also applicable when researched by external analysts.



External financial analysis is performed by independent auditors, outside analysts who do not have access to the internal results and indicators of the company. External audit methods assume some limitation of the information field. Regardless of the type of audit, its methods and methods are always the same. What is common in external and internal analysis is the derivation, generalization and detailed study of financial ratios. These basic financial indicators of the enterprise’s activities provide answers to all questions regarding the work and prosperity of the institution.

Four main indicators of financial health

The main requirement for the break-even operation of an enterprise in market conditions is economic and other activities that ensure profitability and profitability. Economic activities are aimed at reimbursing expenses with income received, generating profit to satisfy the economic and social needs of team members and the material interests of the owner. There are many indicators to characterize activities, in particular these include gross income, turnover, profitability, profit, costs, taxes and other characteristics. For all types of enterprises, the main financial indicators of the organization’s activities are highlighted:

• financial stability;
• liquidity;
• profitability;
• business activity.

Financial stability indicator

This indicator characterizes the degree of correlation between the organization’s own funds and borrowed capital, in particular, how much borrowed funds account for 1 ruble of money invested in tangible assets. If such an indicator when calculated is obtained with a value of more than 0.7, then the financial position of the company is unstable, the activity of the enterprise to some extent depends on attracting external borrowed funds.



Liquidity characteristics

This parameter indicates the main financial indicators of the company and characterizes the sufficiency of the organization’s current assets to pay off its own short-term debts. It is calculated as the ratio of the value of current current assets to the value of current passive liabilities. The liquidity indicator indicates the possibility of converting the company's assets and values ​​into cash capital and shows the degree of mobility of such transformation. The liquidity of an enterprise is determined from two perspectives:

• the length of time required to convert current assets into cash;
• the ability to sell assets at a specified price.

To identify the true indicator of liquidity in an enterprise, the dynamics of the indicator are taken into account, which allows not only to determine the financial strength of the company or its insolvency, but also to identify the critical state of the organization’s finances. Sometimes the liquidity ratio is low due to the increased demand for the industry's products. Such an organization is completely liquid and has a high degree of solvency, since its capital consists of cash and short-term loans. The dynamics of the main financial indicators demonstrate that the situation looks worse if the organization has working capital only in the form of a large number of stored products in the form of current assets. To turn them into capital, a certain amount of time is required for implementation and the presence of a customer base.

The main financial indicators of the enterprise, which include liquidity, show the state of solvency. The company's current assets must be sufficient to repay current short-term loans. In the best situation, these values ​​are approximately at the same level. If an enterprise has much more working capital in value than short-term loans, then this indicates an ineffective investment of money by the enterprise in current assets. If the amount of working capital is lower than the cost of short-term loans, this indicates the imminent bankruptcy of the company.



As a special case, there is an indicator of quick current liquidity. It is expressed in the ability to pay off short-term liabilities using the liquid portion of assets, which is calculated as the difference between the entire working portion and short-term liabilities. International standards determine the optimal level of the coefficient in the range of 0.7-0.8. The presence of a sufficient number of liquid assets or net working capital within an enterprise attracts creditors and investors to invest money in the development of the enterprise.

Profitability indicator

The main financial indicators of an organization's effectiveness include the value of profitability, which determines the efficiency of using the funds of the company's owners and generally shows how profitable the operation of the enterprise is. The profitability value is the main criterion for determining the level of stock exchange quotes. To calculate the indicator, the amount of net profit is divided by the amount of average profit from the sale of the company's net assets for the selected period. The indicator reveals how much net profit each unit of goods sold brought.

The generated income ratio is used to compare the income of the desired enterprise in comparison with the same indicator of another company operating under a different taxation system. The calculation of the main financial indicators of this group provides for the ratio of profit received before taxes and due interest to the assets of the enterprise. As a result, information appears about how much profit each monetary unit invested in the company’s assets brought in for work.

Business activity indicator

Characterizes how much finance is obtained from the sale of each monetary unit of a certain type of asset and shows the turnover rate of the organization’s financial and material resources. For the calculation, the ratio of net profit for the selected period to the average cost of costs in material terms, money and short-term securities is taken.



There is no standard limit for this indicator, but the management forces of the company strive to accelerate turnover. The constant use of loans from outside in economic activity indicates insufficient financial receipts as a result of sales, which do not cover production costs. If the value of current assets on the organization's balance sheet is overstated, this results in the payment of additional taxes and interest on bank loans, which leads to loss of profit. A low number of active funds leads to delays in fulfilling production plans and the loss of profitable commercial projects.

For an objective, visual examination of economic activity indicators, special tables are compiled that show the main financial indicators. The table contains the main characteristics of work for all parameters of financial analysis:

• inventory turnover ratio;
• indicator of the company's receivables turnover over time;
• value of capital productivity;
• resource return indicator.

Inventory turnover ratio

Shows the ratio of revenue from the sale of goods to the amount in monetary terms of inventories at the enterprise. The value characterizes the speed of sale of material and commodity resources classified as a warehouse. An increase in the ratio indicates a strengthening of the organization’s financial position. The positive dynamics of the indicator is especially important in conditions of large accounts payable.

Accounts receivable turnover ratio

This ratio is not considered as the main financial indicators, but is an important characteristic. It shows the average time period in which the company expects payment to be received after the sale of goods. The calculation is based on the ratio of accounts receivable to average daily sales revenue. The average is obtained by dividing the total revenue for the year by 360 days.

The resulting value characterizes the contractual terms of work with customers. If the indicator is high, it means that the partner provides preferential working conditions, but this causes caution among subsequent investors and creditors. A small value of the indicator leads, in market conditions, to a revision of the contract with this partner. An option for obtaining the indicator is a relative calculation, which is taken as the ratio of sales revenue to the company's receivables. An increase in the ratio indicates an insignificant debt of debtors and high demand for products.

Capital productivity value

The main financial indicators of the enterprise are most fully complemented by the capital productivity indicator, which characterizes the rate of turnover of finance spent on the acquisition of fixed assets. The calculation takes into account the ratio of revenue from goods sold to the annual average cost of fixed assets. An increase in the indicator indicates a low cost of expenses in terms of fixed assets (machines, equipment, buildings) and a high volume of goods sold. A high value of capital productivity indicates insignificant production costs, and a low capital productivity indicates inefficient use of assets.



Resource efficiency ratio

For the most complete understanding of how the main financial indicators of an organization’s activities develop, there is an equally important resource return ratio. It shows the degree of efficiency of the enterprise’s use of all assets on the balance sheet, regardless of the method of acquisition and receipt, namely, how much revenue is received for each monetary unit of fixed and current assets. The indicator depends on the procedure for calculating depreciation adopted at the enterprise and reveals the degree of illiquid assets that are disposed of to increase the ratio.

Main financial indicators of LLC

Income source management ratios show the financial structure and characterize the protection of the interests of investors who have made long-term injections of assets into the development of the organization. They reflect the company's ability to repay long-term loans and credits:

• share of loans in the total amount of financial sources;
• ownership ratio;
• capitalization ratio;
• coverage ratio.

The main financial indicators are characterized by the volume of borrowed capital in the total mass of financial sources. The leverage ratio measures the specific amounts of assets purchased with borrowed money, which includes the firm's long-term and short-term financial liabilities.

The ownership ratio supplements the main financial indicators of the enterprise by characterizing the share of equity capital spent on the acquisition of assets and fixed assets. A guarantee of obtaining loans and investing investor money in a project for the development and re-equipment of an enterprise is the indicator of the share of own funds spent on assets in the amount of 60%. This level is an indicator of the stability of the organization and protects it from losses during a downturn in business activity.

The capitalization ratio determines the proportional relationship between borrowed funds from various sources. To determine the proportion between equity and borrowed finance, the inverse leverage ratio is used.

The interest coverage indicator or coverage indicator characterizes the protection of all types of creditors from non-payment of interest rates. This ratio is calculated as the ratio of the amount of profit before interest to the amount of money intended to pay off interest. The indicator shows how much money the company earned to pay borrowed interest during the selected period.

Market activity indicator

The main financial indicators of an organization in terms of market activity indicate the position of the enterprise in the securities market and allow managers to judge the attitude of creditors to the general activities of the company for the past period and in the future. The indicator is considered as the ratio of the initial book value of a share, the income received on it and the prevailing market price at a given time. If all other financial indicators are within the acceptable range, then the market activity indicator will also be normal if the market value of the stock is high.

In conclusion, it should be noted that financial analysis of the economic structure of an organization is important for all stakeholders, shareholders, short-term and long-term creditors, founders and management.

Indicators for assessing the financial condition of enterprises

To assess the financial condition of enterprises, data sources are the enterprise's balance sheet and profit and loss report.

To analyze the financial condition of an enterprise, four groups of coefficients are used:

solvency and liquidity indicators;

financial stability indicators;

profitability indicators;

business activity indicators;

indicators of market activity.

1. Solvency and liquidity indicators.

The liquidity of an enterprise means the ability of its assets to be converted into money. Solvency means the ability of an enterprise to repay its obligations in a timely manner and in full.

To determine the liquidity of an enterprise, the following indicators are calculated:

Absolute liquidity ratio

a.l. =

The minimum standard value of this indicator is set at 0.2-0.25. The absolute liquidity ratio shows what part of the accounts payable the company can repay at the time of reporting.

Quick ratio (intermediate liquidity ratio)

b.l.=

Current ratio

K t.l. =


The recommended value of this coefficient is from 1 to 2. The lower limit indicates the insolvency of the enterprise. If the current liquidity ratio is more than 2-3, as a rule, this indicates an irrational use of the company's funds. The current ratio shows whether the company has enough funds that can be used to pay off its short-term obligations during the year.

Coefficient of supply of inventories and costs from own sources

K supply of reserves and costs =

This ratio shows the share of own working capital that goes to finance inventories and costs.

Own working capital shows what part of the enterprise's current assets is financed from the enterprise's own funds, and can be calculated as the difference between the current assets and current liabilities of the enterprise. The excess of current assets over current liabilities means the availability of financial resources to expand the activities of the enterprise. However, a significant excess indicates inefficient use of resources.

2. Indicators of financial stability.

The financial stability of an enterprise is the state of its financial resources, their distribution and use, which ensures the development of the enterprise based on the growth of profits and capital while maintaining solvency and creditworthiness under conditions of an acceptable level of risk.

There are four types of financial stability:

1. absolute stability(extremely rare);

S = 1; 1; 1 , i.e.  SOS  0

2. regulatory stability, guarantees the solvency of the enterprise;

S = 0; 1; 1 , i.e.  SOS  0

3. unstable financial condition, in which the solvent balance is disrupted, but the possibility of restoring balance remains due to replenishment of sources of own funds and acceleration of inventory turnover;

S = 0; 0; 1 , i.e.  SOS  0

4. financial crisis(the company is on the verge of bankruptcy);

S = 0; 0; 0 , i.e.  SOS  0

To characterize the sources of reserve formation, three main indicators are used:

1.Availability of own working capital (SOS):

SOS =  liability section of the balance sheet -  asset section of the balance sheet *

This indicator characterizes net working capital. Its increase compared to the previous period indicates the further development of the enterprise's activities.

2. Availability of own and long-term borrowed sources of formation of reserves and costs (SD):

SD= SOS + r.p.b.

3.The total value of the main sources of formation of reserves and costs (IO):

OI= SD + page 610  r.p.b.

There are three indicators of the provision of reserves with sources of their formation:

1. Excess (+) or deficiency (-) SOS ( SOS):

 SOS = SOS – Z,

where 3 – reserves (p. 210  r.a.b.).

2. Excess (+) or deficiency (-) of SD ( SD):

 SD = SD – W

3. Excess (+) or lack (-) of OI ( OI):

 OI = OI – Z

The above-mentioned indicators of the provision of reserves with sources of their formation are integrated into the three-component indicator S:

S =  SOS;  SD;  OI  ,

which characterizes the type of financial stability.

The financial stability of an enterprise is based on an analysis of the enterprise's capital structure and characterizes the degree of independence of the enterprise from external sources of financing.

The main purpose of analyzing the financial stability of an enterprise is to assess the financial risk of the enterprise and determine the adequacy of equity capital and the degree of dependence on attracted resources.

To analyze the financial stability of an enterprise, the following indicators are used:

Autonomy coefficient (independence ratio, equity concentration ratio)

Autonomy coefficient =


The autonomy coefficient shows the share of own funds in the structure of the enterprise's sources.

It is practically impossible to establish a standard value for this coefficient. The normal value for a particular enterprise should be established based on the characteristics of the enterprise, its needs for financial resources and development goals.

The higher the value of this coefficient, the higher the stability of the enterprise. However, when this value is close to one, this indicates insufficiently effective financial management at the enterprise and inability to use borrowed funds. On the other hand, an extremely low value indicates high financial risk and high dependence on creditors.

Dependency factor (debt capital concentration ratio)

Dependency factor =


This coefficient characterizes the share of borrowed funds in the structure of the enterprise’s sources of activity.

Financial stability ratio (long-term financial stability coefficient)

Financial coefficient stability =


This indicator characterizes the share of sustainable sources of financing in all sources of the enterprise, that is, the share of those liabilities that can be used to finance investments.

Funding ratio

Funding ratio =

The financing ratio shows the structure of the company's liabilities.

Own funds maneuverability coefficient

Own funds maneuverability coefficient =


The equity agility ratio shows the portion of equity that is invested in mobile assets.

3. Profitability indicators.

Profitability is the efficiency of using a particular type of asset or type of investment. The main goal of profitability analysis is to determine the level of profitability of an enterprise based on various indicators of invested funds and types of property of the enterprise and to assess the sufficiency of the level of profitability obtained.

To calculate profitability indicators, data from the enterprise's balance sheet and profit and loss report are used.

To analyze profitability, the following main indicators are calculated:

Return on assets indicator , which speaks about the efficiency of using all assets of the enterprise and shows how much net profit falls on 1 ruble of all assets of the enterprise.

Return on assets (property) =

Return on equity indicator

Return on equity =

This indicator characterizes the profitability of using the enterprise’s own funds and shows how much net profit is received per 1 ruble of invested own funds.

Core activity profitability indicator

Profitability of core activities =

This ratio shows cost efficiency, that is, how much profit from sales in the main activity was received per 1 ruble of costs incurred.

Return on turnover indicator (return on sales)

Profitability of turnover =


This indicator characterizes the sales efficiency of the enterprise, or how much profit was received from the sale of products per 1 ruble of revenue received from buyers and customers for the products sold.

Product profitability indicator

Product profitability =

This indicator shows how much profit was received per 1 ruble of costs.

For analysis purposes, both the net profit indicator (profit after taxes) and the profit before tax indicator can be used. A comparison of two options for profitability indicators (one using the profit before tax indicator and the second using the net profit indicator) allows us to determine the impact of interest payments and tax payments on the level of profitability of a particular type of asset or type of investment.

In addition, various profitability indicators can be calculated for individual types of activities, individual types of assets, etc.

4. Business activity indicators.

The business activity of an enterprise is manifested in the dynamism of its development, indicates the quality of management of financial resources invested in the property of the enterprise, and is reflected in the system of indicators of the turnover of funds of the enterprise. Business activity ratios allow us to assess the efficiency of using financial resources. The financial condition of an enterprise depends on the speed at which funds invested in various assets of the enterprise are converted into cash.

To calculate the indicators of the turnover of enterprise funds and the speed of turnover, data from the balance sheet and profit and loss report are used.

Key indicators of turnover and turnover rate:

Asset turnover ratio shows the efficiency of using all resources that the enterprise has in the analyzed period.

Asset turnover ratio =

Asset turnover period =


Equity turnover ratio indicates the efficiency of using the enterprise's own capital.

Property turnover ratio capital =

Equity turnover period =


When analyzing business activity, more specific turnover indicators (accounts receivable, accounts payable, inventories, etc.) and turnover periods in days are also calculated.

Accounts receivable turnover ratio =


Receivables maturity (in days) =

Inventory turnover ratio =


Inventory turnover period (sales period) =


Accounts payable turnover ratio =


Accounts payable maturity (in days) =

5.Indicators of market activity

book value of a common share

basic earnings per share

common stock dividend

dividend payout ratio

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