The analysis of the financial condition of the enterprise is carried out in order to assess its activities. It involves the calculation of a number of indicators that reflect the process of generating funds from an economic entity, the direction of their use and efficiency.
Instructions
Step 1
Financial analysis is an indispensable element of financial management at an enterprise, its economic relations with partners, banks, tax authorities. It includes the calculation of several groups of indicators: financial stability, business activity, profitability and profitability.
Step 2
To determine the stability of the financial condition of an enterprise, changes in the structure of capital, the sources of its formation and directions of placement, the efficiency and intensity of the use of capital, the solvency and creditworthiness of the organization, and the margin of its financial strength are determined.
Step 3
When conducting financial analysis, the absolute and relative changes in the balance sheet indicators are determined. The latter make it possible to compare them with generally accepted standards in order to assess the risk of bankruptcy, with the indicators of other enterprises in order to identify its strengths and weaknesses, place in the market, as well as with similar periods of previous years in order to identify trends in the development of the company.
Step 4
Financial analysis includes several stages. First of all, the conditions, goals and objectives of the enterprise as a system are determined, which includes 3 elements: resources, production process and finished products.
Step 5
Then the selection of indicators that characterize the financial activity of the enterprise is carried out: financial stability (coefficient of financial stability, autonomy, share of accounts receivable, borrowed funds), solvency and liquidity, business activity (ratio of inventory turnover, equity, etc.), profitability …
Step 6
After that, a general scheme of the system is drawn up, its main components, functions, relationships are highlighted, subordinate elements that give qualitative and quantitative characteristics are determined. Then they receive specific data on the work of the enterprise in numerical terms, evaluate the results of its activities, and identify reserves for increasing production efficiency.
