What data is needed for financial analysis. Analysis of the company's finances. Financial Analysis: What is it?

29.11.2019

Instruction

Remember that when analyzing the activities of an enterprise, the principle of economic efficiency is used, which involves achieving the greatest result at the lowest cost. The most general indicator of efficiency is profitability. Its specific features include:
- efficiency of use labor resources(profitability of personnel, labor productivity), fixed production assets (capital intensity, capital productivity), material resources (material consumption, material productivity);
- the effectiveness of the investment activity of the enterprise (payback);
- efficient use of assets (turnover indicators);
- efficiency of capital use.

After calculating the system of coefficients of financial economic activity enterprises, compare them with planned, regulatory and industry indicators. This will make it possible to draw a conclusion about the effectiveness of the functioning of the organization and its place in the market.

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

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

note

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

The analysis of financial statements is an assessment of the solvency, creditworthiness, profitability, as well as the investment attractiveness of the enterprise. The analysis of the company's reporting enables potential partners to conclude that further work with it is necessary.

Instruction

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

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

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

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

Next, the trend of the company's activity is revealed. For this, the indicators of the base period are taken as 100 percent, and the values of the following periods are calculated based on this, which allows us to make a forecast of the enterprise's work for the future.

In addition, when analyzing financial statements, a number of ratios (profitability, liquidity, solvency) are calculated, which make it possible to say about compliance financial activities firms to generally accepted standards.

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

Quantitative methods of financial analysis of the enterprise

Quantitative methods of financial analysis involve the calculation of a single integral indicator of the risk of bankruptcy of an enterprise. They can be roughly divided into two large groups classical statistical methods and alternative methods. The key difference between these methods lies in the use of mathematical apparatuses of different complexity: if for classical methods, as a rule, methods of mathematical statistics are used, then in alternative methods more complex methods of artificial intelligence, genetic algorithms, and fuzzy logic are used.

Integral methods of financial analysis

According to research conducted by scientists Aziz and Dar, to build models quantification the financial condition of the enterprise in 64% of cases, statistical methods were used, in 25% artificial intelligence, in 11% other methods.

In integral methods of financial analysis, the most common approaches are those related to the construction of multiple discriminant analysis models (MDA models) and models built on the basis of logistic regression (logit models).

The main purpose of these models is to calculate an integral indicator based on the measurement of various financial ratios of an enterprise, on the basis of which an analysis can already be carried out.

Popular Western MDA models for predicting bankruptcy risk were developed by Altman, Taffler, Springate. Among the domestic MDA models, one can distinguish: the Saifullin and Kadykov Model, the Belikov-Davydova Model (Irkutsk State Economic Academy), the Mizikovsky Model, the Chelyshev Model.

Currently, in the West, there is a decline in the use of MDA models to assess the risk of bankruptcy of enterprises, more and more preference is given to logit models and models based on artificial intelligence (AI models), which allow taking into account various hidden patterns.

The table shows the frequency of using multiple discriminant analysis tools to build models for assessing the financial stability of enterprises, as can be seen from the table, currently only 29% of all studies use multiple discriminant analysis tools to build bankruptcy models.

Frequency of application of multiple discriminant analysis in building models of financial stability of an enterprise

Source: Hossari G. Benchmarking New Statistical Techniques in Ratio-Based Modeling of Corporate Collapse, International Review of Business Research Papers Vol. 3 no. August 3, 2007 P.152

Olson, Begley, Ming, Watts, Altman, Sabato, Gruzchinsky, Ju Ha, Tehong, Lin, Piesse can be distinguished among the authors who use logit-models to assess the risk of bankruptcy. Among the domestic logit models, one can single out the models of Zhdanov and Khaidarshina.

Benefits modern logit models are:

The ability to determine the probability of the risk of bankruptcy of the enterprise,
Sufficiently high accuracy of results,
Allows to take into account the industry specifics of the activities of enterprises,
Ease of interpretation of results.

Among the disadvantages of logit models can be distinguished:

not adapted to Russian economy,
Does not take into account the financial stability of the enterprise,
The crisis process at the enterprise is not taken into account.

Rating (scoring) models are an effective means of financial monitoring activities of enterprises. A distinctive feature of rating models is that indicators for financial ratios are obtained either with the help of mathematical operations or are set by experts.

It should be noted that rating systems for assessing the financial condition of an enterprise are currently being used. two kinds.

The first type involves the classification of enterprises into several groups, the boundaries of which are predetermined by analysts and experts. To apply this technique, accounting reports from one enterprise are sufficient. This type includes the methods of Dontsova, Nikiforova, Litvin, Grafov, the Sberbank method for assessing the borrower's creditworthiness, and others. Of the foreign methods, the Argenti method (A-count) is widely used in practice.

The second type of methods for determining the rating of an enterprise is based on comparing financial ratios with a benchmark company. The role of the standard is performed by the firm that has the best results from the entire sample of the studied enterprises. These include the methods of Kukunina I.G., Sheremet A.D.

Alternative methods of financial analysis

Among the alternative methods of financial analysis of an enterprise, one can single out the use of neural network methods, fuzzy logic, self-organizing maps, genetic algorithms, evolutionary programming to build quantitative models for assessing the financial condition.

AI-powered financial business models work effectively with vague, incomplete, and inaccurate data. AI-models of financial analysis of an enterprise are laborious to develop, due to the complex mathematical apparatus. In addition, the development is complicated by the need to analyze a large sample of data on enterprises, which is still insufficient in the young Russian economy.

Altman speaks in favor of statistical models in his work, where he proves that logit-models and mda-models more accurately predict the bankruptcy of an enterprise than neural networks ( Altman E.I., Marco G., Varetto F. (1994) : Corporate Distress Diagnosis: Comparisons using Linear Discriminant Analysis And Neural Network (the Italian Experience) // J. Of Banking and Finance. Vol 18 No. 3).

Qualitative methods of financial analysis of an enterprise

Qualitative Methods The analysis of the financial condition of an enterprise does not involve the calculation of integral indicators; as a rule, they are based on the use of expert knowledge, surveys, and also coefficient analysis. Qualitative methods of financial assessment of an enterprise can be divided into two main groups: coefficient analysis, where the analysis of an enterprise is based on the calculation and analysis of financial and economic ratios that describe the activities of an enterprise from various angles, and qualitative methods based on traditional analysis of financial statements.

Ratio analysis

In Russia on this moment Most systems for monitoring the activities of enterprises are based on coefficient analysis. For example, the federal law"On insolvency (bankruptcy)" proposes the calculation of 3 financial ratios for diagnosing the risk of bankruptcy: the current liquidity ratio, the ratio of own working capital, the recovery / loss of solvency ratio. Or, for example, the former "Methodological guidelines for the analysis of the financial condition of organizations by employees of the FSFR of Russia when performing an examination" (the FSFR has now been disbanded) contain the calculation of 21 financial ratios.

The coefficient analysis of enterprises can reveal the following disadvantages:

multiplicity of proposed sets of coefficients in the analysis makes it difficult to assess the state of the enterprise on their basis, as well as the development and implementation management decisions.
complexity of justified normalization of coefficients. One of the key problems of coefficient analysis is the interpretation of the coefficients in terms of the chosen standards. In Russian conditions, the base normative documents according to the assessment of the financial condition of the enterprise is still underdeveloped, access to average industry standards is often limited (absent).
there are no uniform formulas for calculating coefficients, often in different sources the same coefficients are called by different terms and have different calculation formulas.

Analytical methods of financial analysis

Analytical methods of financial analysis give Special attention analysis of the structure and dynamics of financial statements items. It is based on a comparison of assets and liabilities on close payment horizons, an assessment of the liquidity of the balance sheet, as well as an analysis of trends in changes in balance sheet items and the search for the reasons for them.

In addition, the reliability of the financial statements of the enterprise, the quality of accounting at the enterprise are checked, the degree of compliance of the monetary valuation of assets and liabilities with their real market values is assessed, from the qualitative side, an assessment is made business reputation, level of management, professionalism of personnel, prospects for the development of the industry, stages life cycle enterprises.

Horizontal analysis consists of building one or more analytical tables, in which absolute indicators are supplemented by relative growth rates. The purpose of horizontal analysis is to identify absolute and relative changes in the values of various reporting items for a certain period, and also to give an assessment to these changes. One of the options for horizontal analysis is trend analysis, i.e. comparison of these articles for different periods, building a change in the time series of a balance sheet item to identify a trend. Vertical analysis consists in calculating specific gravity individual articles as a result of the balance sheet with its further assessment of changes.

Analysis cash flows consists in identifying the causes of a shortage or excess of funds, determining the sources of their receipt and direction of spending for subsequent control over the current solvency of the enterprise.

One of the popular methods for analyzing the internal state of an enterprise, taking into account dangers and opportunities in the external environment, is SWOT analysis. The advantage of using a SWOT analysis is that it allows you to evaluate the external and internal environment in which the enterprise operates. As a rule, SWOT analysis is used in strategic planning to evaluate the effectiveness of the current strategy of the enterprise. One of the disadvantages of SWOT analysis is its difficult formalization through quantitative indicators.

Comparison of methods of financial analysis of an enterprise

Comparative characteristics of the methods of financial analysis of the enterprise are presented in the table.

Comparative characteristics	quantitative		quality
Comparative characteristics	Statistical	Alternative	Ratio Methods	Analytical
Multidimensional approach	+	+	–	+
Use of source data from external public reporting	+	+	+	+
Clarity and ease of interpretation of the results	+	+	–	–
Ability to compare with other companies	+	+	+	–
Ease of calculation	+	–	+	–
Time Factor	+	+	+	–
Accounting for correlation factors	+	+	–	–
Qualitative assessment of the calculated integral indicator	+	+	–	–
Used by an expert	–	+	–	+
Take into account the specifics of the organization	–	–	–	+
High accuracy of bankruptcy risk assessment	+	+	–	–
Accounting for quality indicators	–	–	+	+
External factors are taken into account	–	–	–	+

Summary

We examined the main methods of financial analysis of enterprises used in practical activities. Each of the approaches has its own advantages and disadvantages, therefore, it is necessary to use a complex set of methods or to use each of the approaches in a functional way. This is what will allow them to be used effectively in the financial analysis of the enterprise.

In the face of fierce competition, companies constantly have to fight for survival. To stay afloat, it is not enough to find and occupy a free market niche, you need to maintain and constantly improve your position. In order to solve these problems, companies should regularly conduct a financial analysis of their activities. Conducting a qualitative study will not solve all the problems of the enterprise, but will provide specific information about the strengths and weaknesses which can be effectively used.

Financial analysis - what is it? This is an assessment method that allows you to determine the sustainability of an enterprise by calculating indicators, on the basis of which a conclusion is made about the results of the company's activities in the present and forecasts for the future. During the study, coefficients are calculated, subdivided into several groups depending on the direction of the assessment.

You need to know in order to independently analyze what the main financial indicators are and how to calculate them correctly.

The coefficients used to assess the activities of the enterprise are included in 4 main groups of indicators:

They determine the financial stability of the company in a short time by calculating the degree of mobility of assets and their relationship with each other.
They determine the financial sustainability in the future and characterize the structure of own and
profitability ratios. Determine the efficiency of the use of capital, investments and activities of the company as a whole.
turnover ratios. Determine cost recovery the production cycle and intensity of use of funds.

Each of the listed groups includes many indicators, but to study the results of the company's activities, it is enough to apply the main ones, of which there are about three dozen.

They are determined according to data taken from the most important reporting documents: the balance sheet and its appendices, activities.

In addition to the output of individual indicators and ratios, factor analysis is used to study the state of affairs of the company, which consists in compiling economic model, taking into account the relationship of the coefficients with each other and its influence on the final result.

Application factor analysis in economics allows you to identify more accurate results and positively influence managerial decision-making.

An effective study of the results of the functioning of an enterprise involves not only the calculation key indicators but also the correct use of the obtained data.

Analysis of the company's activities is carried out by the analytical department. However, in some cases, the participation of auditors is required. Experts will explain, having calculated indicators of financial stability and carried out an analysis, that such a study must be carried out regularly in order to see the dynamics. Thus, it is possible to identify such important factors as gross output, the value of own working capital and others.

Experts will decipher, having carried out the analysis, the solvency of the company, what are the investment risks, how to use assets correctly and as efficiently as possible.

Based on the data obtained, an analytical report is drawn up containing information about the results of the analysis, as well as recommendations, following which will improve the state of affairs of the company.

Mandatory component financial management any company. The task of such an analysis is to determine what the state of the company is today, which work parameters are acceptable and need to be maintained at the current level, and which ones are unsatisfactory and require prompt intervention. In other words, in order to successfully move on, you need to know why the state of the enterprise has deteriorated and how to correct the situation (what control levers to use for this most effectively).

Financial analysis includes:

1. Analysis of the financial situation

1.1. The structure of the property of the enterprise and the sources of its formation
1.2. Estimation of the value of the net assets of the enterprise
1.3. Determination of unsatisfactory balance sheet structure
1.4. Analysis of the financial stability of the enterprise
- 1.4.1. Analysis of financial stability by the amount of surplus (shortage) of own working capital
- 1.4.2. Analysis of other indicators of the financial stability of the enterprise
1.5. Liquidity analysis
- 1.5.1. Analysis of the ratio of assets by liquidity and liabilities by maturity
- 1.5.2. Calculation of liquidity ratios

2. Performance analysis

2.1. Overview of the company's performance
2.2. Profitability analysis
2.3. Calculation of indicators of business activity (turnover)

3. Conclusions based on the results of the analysis

3.1. Assessment of key indicators
3.2. Final assessment of the financial condition and performance of the enterprise

When conducting financial analysis, we look at the client's business through the eyes of a potential investor or financier. We calculate such financial ratios as liquidity, business activity, profitability, solvency and market activity ratios.

There are standards for the above coefficients. Using them, we evaluate the effectiveness of the client's business. Next, we give recommendations for changing the structure financial flows. These events help the management and owners of the enterprise to better see the strengths and weaknesses of the business, improve the structure of financial indicators, which contributes to the improvement and improvement of business efficiency as a whole.

One of the tasks of financial analysis is also to prevent the threat of bankruptcy. Defined by the Civil Code Russian Federation the independence of enterprises and the increasing, in connection with this, their responsibility to creditors, shareholders, banks, employees, makes it necessary to pay attention to the issues of predicting the possible bankruptcy of enterprises. On the other hand, enterprises must be confident in the reliability and economic viability of their partners or use the bankruptcy mechanism in a timely manner as a means of repaying the debt of insolvent partners, which is becoming important in modern conditions with the existing problem of non-payments between enterprises.

In this regard, business leaders, managers at various levels should be familiar with bankruptcy procedures and be able to determine financial position counterparty enterprises based on a well-conducted financial analysis. At the same time, it is necessary to carry out anti-crisis diagnostics of the financial condition of the enterprise in order to avoid possible bankruptcy.

LLC "Argo-Audit" provides the following services in the field of crisis management for the following types of work and services:

financial and economic services;
support of insolvency procedures.

Financial and economic services include the following types of work:

conducting a financial analysis of the activities of debtor enterprises;
conducting examinations on the presence (absence) of signs of fictitious and / or deliberate bankruptcy;
development of plans external management.

Support of insolvency procedures includes the following types of work:

consultations and services for the preparation and submission to the arbitration court of the application of the creditor (debtor) on declaring the debtor insolvent (bankrupt);
services for the preparation of reports of arbitration managers on the results of insolvency procedures;
preparation of opinions on the actions of the head (orbite manager) for the implementation of approved plans for financial recovery (external management, liquidation);
preparation of opinions on the adoption of other management decisions provided for by law.

The sale of property of debtor enterprises involves the sale of the debtor's enterprise or part of the debtor's property (including property rights, rights of claim) at auction.

The financial condition of an economic entity is a characteristic of its financial competitiveness (i.e. solvency, solvency), use financial resources and capital, fulfillment of obligations to the state and other economic entities. The financial condition of an economic entity includes an analysis of: profitability and profitability; financial stability; creditworthiness; use of capital; currency self-sufficiency.

Sources of information for are the balance sheet and annexes to it, statistical and operational reporting. For analysis and planning, the standards in force in the economic entity are used. Each economic entity develops its planned indicators, norms, standards, tariffs and limits, a system for their evaluation and regulation of financial activities. This information is his trade secret, and sometimes know-how.

The analysis of the financial condition is carried out using the following basic techniques: comparisons, summaries and groupings, chain substitutions. The method of comparison consists in comparing the financial indicators of the reporting period with their planned values (standard, norm, limit) and with the indicators of the previous period. Receiving summaries and groupings consists in combining information materials into analytical tables. The method of chain substitutions is used to calculate the magnitude of the influence of individual factors in the overall complex of their impact on the level of total financial indicator. This technique is used in cases where the relationship between indicators can be expressed mathematically in the form of a functional relationship. The essence of the reception of chain substitutions is that, successively replacing each reporting indicator with the base one (that is, the indicator with which the analyzed indicator is compared), all other indicators are considered unchanged. This replacement allows you to determine the degree of influence of each factor on the total financial indicator.

The profitability of an economic entity is characterized by absolute and relative indicators. Absolute indicator Yield is the amount of profit or income. Relative indicator- the level of profitability. The level of profitability of economic entities associated with the production of products (goods, works, services) is determined by the percentage of profit from the sale of products to its cost. The level of profitability of trade enterprises and Catering is determined by the percentage of profit from the sale of goods (public catering products) to the turnover.

In the process of analysis, the dynamics of changes in the volume of net profit, the level of profitability and the factors that determine them are studied. The main factors affecting net profit, are the volume of proceeds from the sale of products, the level of cost, the level of profitability, income from non-operating operations, expenses on non-operating operations, the amount of income tax and other taxes paid from profits. The impact of revenue growth on profit growth is manifested through cost reduction. All costs in relation to the volume of revenue can be divided into two groups: conditionally fixed and variable. Semi-fixed costs are called costs, the amount of which does not change when the proceeds from the sale of products change. This group includes: rent, depreciation of fixed assets, depreciation of intangible assets, etc. These costs are analyzed by absolute amount. variable costs- these are costs, the amount of which changes in proportion to the change in the volume of proceeds from the sale of products. This group covers the costs of raw materials, transportation costs, labor costs, etc. These costs are analyzed by comparing the cost levels as a percentage of revenue.

The dependence of profit on sales is expressed using a profitability graph, where the K point is the break-even point. It shows the maximum amount of proceeds from the sale of products in valuation (om) and in natural units of measurement (on), below which the activity of an economic entity will be unprofitable, since the cost line is higher than the line of proceeds from the sale of products. Profitability charts represent a very simple and effective method, which allows you to approach such complex problems as: what happens to profit if output decreases: what happens to profit if price is increased, production costs are reduced, and sales fall? The main task of constructing a profitability graph is to determine the break-even point - the point for which the revenue received is equal to cash costs.