Financial analysis is carried out to study the main parameters of the enterprise, which give an objective assessment of its financial condition. The results of the analysis help the manager to determine the recommendations for the direction of the future activities of the company.
It is necessary
- - calculator;
- - accounting data.
Instructions
Step 1
Conduct a liquidity analysis to determine the company's ability to meet its current obligations. Calculate the coverage ratio that shows whether the company has enough resources to meet its current obligations. Determine the quick ratio, which reflects the firm's ability to pay current liabilities in a timely manner with debtors.
Step 2
Calculate the ratio of absolute liquidity, showing the ability of the company to pay immediately a certain part of the debt. Calculate the net working capital by subtracting the current liabilities of the enterprise from the current assets. The presence of this value shows the firm's ability to pay current obligations and expand its activities.
Step 3
Perform an activity analysis that characterizes the efficiency of the main activity and the rate of turnover of the company's financial resources. To analyze business activity, it is necessary to calculate the ratios of the turnover of assets, accounts payable and receivable, the duration of turnover, fixed assets, inventories and equity.
Step 4
Conduct a solvency analysis that will determine the structure of the sources of financing for the company, the independence of the company from external sources and the degree of financial strength. To do this, calculate the ratio of financing, solvency, maneuverability of equity capital and the provision of own working capital.
Step 5
Analyze the profitability of the enterprise, which will allow you to find out the effectiveness of the invested funds and the rationality of their use. For the analysis, you need to calculate the rate of return on equity, assets, products and activities.
Step 6
Summarize the financial analysis of the enterprise. Perform a comprehensive financial assessment, make forecasts and recommendations.
