The purpose of external financial analysis is to. The financial analysis
Profitability analysis
Factors affecting the amount of profit
Goals and objectives of financial analysis of organizations
The financial analysis organizations- this is the calculation, interpretation and evaluation of a set of financial indicators that characterize various aspects of the organization's activities. Financial analysis includes the analysis of the physical indicators of production and the study of the organization's direct cash flows, which are based on its value. However, only a combination of these two components can give a real assessment of the state of the organization. Underestimation of the role of financial analysis, errors in plans and management actions in modern conditions bring significant losses. Such losses can be noticed and prevented in a timely manner by regularly analyzing the activities of the organization. Ensuring the effective functioning and development of the organization requires economically competent management of its activities, which is largely determined by the ability to analyze it.
main goal financial analysis is to obtain a small number of key (most informative) parameters that give an objective and accurate picture of the financial condition of the organization, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors, while the analyst and the manager (manager) can be interested in both the current financial condition of the organization and its projection for the near or more distant future, i.e. expected parameters of the financial condition.
The objectives of the analysis are achieved as a result of solving a certain interrelated set of analytical tasks. Analytical problem is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological possibilities of the analysis. Ultimately, the main factor is the volume and quality of the initial information. At the same time, it should be borne in mind that the organization's periodic accounting or financial statements are only "raw information" prepared in the course of accounting procedures for the organization.
As a rule, tasks aimed at correcting financial policy organizations are put by management (managers, owners). In this case, we can say that the results of financial analysis are intended for internal users; they should help determine the most effective ways to improve (stabilize) the financial situation of the organization.
The result of the analysis for the internal user is a set of management decisions - a combination of various measures aimed at optimizing the state of the organization, which is revised under the influence of changes in the macro- and microeconomic environment.
Economic science has developed methods that allow, using a system of relative indicators calculated on the basis of financial reporting data, to quickly and fairly accurately form an idea of the financial position of an organization. By studying the dynamics of changes in these indicators, it is possible to determine development trends own organization or her partner and make informed management decisions.
The content and forms of the balance sheet, income statement, other reports and applications are studied sequentially from one reporting period to another. In the financial statements, data are given for at least two years - the reporting and preceding the reporting. If they are incomparable with the data for the reporting period, they are subject to adjustment based on the rules established by regulatory enactments. The data that has undergone an adjustment must be reflected in the explanatory note along with an indication of the reasons that caused this adjustment. The constituent parts of financial statements are interconnected, as they reflect different aspects of the same facts of economic life. Although each report presents information that is different from other reports, none of them serves only one purpose and does not provide all the information needed to solve specific management problems.
The main users of such information are:
Investors who invest their capital in the organization with a certain degree of risk in order to receive income on it;
Lenders who make a temporary loan to an organization in exchange for some predetermined income and are interested in information to enable them to determine whether loan payments will be made on time;
Managers of the organization, since financial information allows you to make the most reliable assessment of the effectiveness of management;
Employees of the organization interested in obtaining information about the ability of the organization to pay salaries in a timely manner, make pension and other payments;
Suppliers interested in information enabling them to determine whether their due amounts will be paid on time;
Consumers (customers of the organization) interested in the stability of supply, as a result of the financial solvency of the organization;
Public and state organizations, since the well-being of the economic infrastructure of the region depends on the successful functioning of the organization.
When making economic decisions, investors, creditors and other interested users analyze a wide range of economic information about the organization, both financial and non-financial. In this huge array of information that is created by the organization, public accounting (financial) statements, the core of which is the balance sheet, are of key importance.
Accounting (financial) reporting- this is a set of reporting forms compiled on the basis of financial accounting data in order to provide external and internal users with generalized information about the financial position of the organization in a form that is convenient and understandable for these users to make certain business decisions.
The financial statements of an organization (except for budgetary, insurance organizations and banks) include:
Balance sheet (f. 1);
Profit and loss statement (f. 2);
Statement of changes in equity (f. Z);
Traffic report Money(f.4);
Applications to the balance sheet (form 5);
Explanatory note;
An auditor's report confirming the reliability of the organization's financial statements, if it is subject to mandatory audit in accordance with federal law.
Grade financial activities enterprise is carried out on the basis of financial statements.
The deductive method (study from general to particular) is the main one when reading (analyzing) financial statements. It must be applied multiple times. In the course of such an analysis, as it were, the historical and logical sequence of economic factors and events, the direction and strength of their influence on the results of activity are reproduced.
The practice of financial analysis has developed the following six basic rules for reading (method of analysis) of financial statements.
Rule 1 Horizontal Analysis - comparison of each reporting position with the previous period;
Rule 2 Vertical Analysis - determination of the structure of the final financial indicators with the identification of the impact of each reporting position on the result as a whole;
Rule 3 trend analysis - comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend of the indicator dynamics, cleared of random influences and individual characteristics individual periods. With the help of the trend, possible values of indicators are formed in the future, and, therefore, a prospective predictive analysis is carried out;
Rule 4 Relative analysis - Calculation of relations between separate positions of the report or positions of different forms of reporting, determination of interrelations of indicators;
Rule 5 Comparative analysis - analysis, which includes both an inter-farm analysis of the performance of a given company with the performance of competitors, with average industry and average economic data, and an intra-company analysis of summary reporting indicators for individual indicators of the company, subsidiaries, divisions, etc .;
Rule 6 Factor analysis - analysis of the influence of individual factors on the performance indicator using deterministic or stochastic methods of research. Moreover, factor analysis can be both direct, when the performance indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a common performance indicator.
Financial analysis is part of a general, complete analysis economic activity, which consists of two closely related sections:
financial analysis and
managerial (production) analysis.
Financial analysis is divided into external and internal.
Features of external financial analysis are:
The multiplicity of subjects of analysis, users of information about the activities of the enterprise;
a variety of goals and interests of the subjects of analysis;
availability of standard methods of analysis, accounting and reporting standards;
· Orientation of the analysis only to the public, external reporting of the enterprise;
· limitation of analysis tasks as a consequence of the previous factor;
· maximum openness of the results of the analysis for users of information about the activities of the enterprise.
Financial analysis, based on data only from financial statements, acquires the character of an external analysis carried out outside the enterprise by its interested counterparties, owners or government agencies. This analysis does not reveal all the secrets of the firm's success.
analysis of absolute indicators of profit;
· analysis of relative indicators of profitability;
· analysis of the financial condition, market stability, liquidity of the balance sheet, solvency of the enterprise;
· analysis of the efficiency of the use of borrowed capital;
· economic diagnostics of the financial condition of the enterprise and the rating assessment of issuers.
There is a variety of economic information about the activities of enterprises and many ways to analyze these activities. Financial analysis according to financial statements is called the classic method of analysis.
Internal (on-farm) financial the analysis uses accounting data, data on the technical preparation of production, regulatory and planning information, etc. as a source of information.
analysis of the effectiveness of capital advances,
Analysis of the relationship between costs, turnover and profit.
In the system of managerial (production) analysis, it becomes possible to conduct a comprehensive economic analysis and evaluate the effectiveness of economic activity by attracting data from managerial production accounting.
Features of management analysis are:
orientation of the results of the analysis to their management;
use of all sources of information for analysis;
Lack of regulation of analysis from outside;
completeness of the analysis, the study of all aspects of the enterprise;
integration of accounting, analysis, planning and decision making;
· maximum secrecy of the results of the analysis in order to preserve commercial secrets.
The main purpose of the analysis financial results is to identify factors that cause a decrease in financial results, that is, a decrease in profits and profitability.
The analysis of financial results involves the solution of the following tasks:
Analysis of the composition and dynamics of profit;
Analysis of financial results from ordinary activities;
Analysis of the level of average selling prices;
Analysis of financial results from other activities;
Analysis of the distribution and use of profits;
Analysis of the profitability of the organization.
The final financial result of the organization's activities is the indicator of net profit or net loss (retained earnings (loss) of the reporting period), the value of which is formed in several stages, which is reflected in Form No. 2 "Profit and Loss Statement". Initially, gross profit is determined as the difference between the proceeds from the sale and the cost of goods sold, products, works, services.
P V = S - With, (1)
where P AT- gross profit;
S- proceeds from the sale of goods, products, works, services;
With- full cost of sold products, goods (works, services).
Then the profit (loss) from sales is determined as the difference between the gross profit and the amount of commercial ( ∑Z K ) and administrative expenses ( ∑B ). This type profit is involved in the calculation of the profitability of sales.
P P = P V - ∑Z K -∑Z U, (2)
At the next stage, the profit (loss) before tax is calculated as the difference between the profit from sales and the sum of operating and non-operating income and expenses.
P B = P P + ON + P p.(3)
where P B– profit before taxation (balance sheet);
ON - result from operating and financial activities;
P p - income and expenses from other operations.
The growth in sales of goods can have a positive and negative impact on the amount of profit. An increase in the volume of sales of profitable goods leads to a proportional increase in profits. If the product is unprofitable, then with an increase in sales, a decrease in the amount of profit occurs. The structure of the sale of goods can also have both a positive and a negative impact on the amount of profit. If the share of more profitable goods in total sales increases, then the amount of profit will increase, and vice versa, with an increase specific gravity low-margin or unprofitable goods, the total amount of profit will decrease.
In modern economic conditions the activity of each economic entity is the subject of attention of a wide range of participants in market relations (organizations and individuals) interested in the results of its functioning. Based on the reporting and accounting information available to them, they seek to assess the financial position of the enterprise. The main tool for this is financial analysis, with which you can objectively assess the internal and external relations of the analyzed object, and then, based on its results, make informed decisions.
“Financial analysis, writes B.S. Utibaev, - as a special area of scientific knowledge, based on a system of indicators, it comprehensively studies the presence, placement and use financial resources enterprise, its solvency, creditworthiness, i.е. financial competitiveness, the ability to fulfill their obligations to other economic entities and the state.
The importance and necessity of financial analysis lies in the fact that it makes it possible to quickly and correctly navigate the emerging financial problems, and the value of knowledge of its methodological foundations allows you to systematically study, assess the current situation and recommend reasonable proposals for improving the financial condition of the enterprise and increasing the efficiency of all its activities. » .
“Financial analysis, writes V.V. Kovalev, - is a method of accumulation, transformation and use of information of a financial nature, with the aim of:
- - assess the current and prospective financial condition of the enterprise;
- - evaluate the possible and appropriate pace of development of the enterprise from the standpoint of their financial support;
- - identify available sources of funds and assess the possibility and expediency of their mobilization;
- - predict the position of the enterprise in the capital market.
Financial analysis according to financial statements is called the classic method of analysis.
The main goal is a deep, thorough and comprehensive study of the financial and economic activities of the enterprise and, on this basis, to obtain an answer to the question, what is its effectiveness, what are the most important ways to improve and strengthen financial stability enterprises, increasing it business activity.
“The key goal of financial analysis, writes V.V. Bocharov, - is to obtain a certain number of basic (most representative) parameters that give an objective and reasonable description of the financial condition of the enterprise. This applies, first of all, to changes in the structure of assets and liabilities, in settlements with debtors and creditors. In profit and loss".
The main objectives of the financial analysis of an enterprise operating in a market economy are:
- - general assessment of the financial position of the enterprise and its changes during the reporting period;
- - assessment of the composition and structure equity and obligations, their status and movement;
- - assessment of the composition and structure of assets, their condition and movement;
- - analysis of indicators of the financial stability of the enterprise and assessment of changes in their level;
- - analysis of the solvency of the enterprise and the liquidity of the balance sheet;
- - analysis of absolute and relative profitability of the enterprise;
- - short-term forecasting of the enterprise's market stability and development of its financial strategy.
From these tasks it can be seen that financial analysis plays a huge role in the study of the activities of an economic entity, that it is an essential element of financial management. Almost all users of financial statements of enterprises use it to make decisions on optimizing their interests.
It is important for owners to establish the effectiveness of the use of assets, equity and debt capital of the enterprise, their ability to generate the maximum amount of income (profit). The staff is interested in information about the profitability and stability of the enterprise as an employer in order to have a guaranteed salary for their work and a workplace.
Creditor banks are interested in information that makes it possible to determine the feasibility of granting loans, the conditions for their issuance, to assess the risk of repayment of loans and the payment of interest.
Investors (including potential owners) are interested in assessing the profitability and risk of ongoing and projected investments, the ability of the enterprise to generate profit and pay dividends.
Suppliers and contractors are interested in the fact that the enterprise pays its obligations for the goods supplied, services rendered and work performed for it on time, i.e. financial stability as a factor of partner stability.
Buyers and customers are interested in information that confirms the reliability of established business relationships and determines the prospects for their further development.
Tax authorities use accounting data to exercise their right, provided for by the law of the Republic of Kazakhstan on insolvency (bankruptcy), to apply to an arbitration court with an application for declaring a debtor bankrupt due to non-fulfillment of monetary obligations to budgets of all levels.
We can firmly say that the quality of the decisions made depends entirely on the quality of the analytical justification of the decision. Depending on the task, financial analysis can be used in different ways.
Here is how the famous American specialist in the field of financial analysis L.A. writes about this. Bernstein: “It can be used as a pre-screening tool when choosing an investment direction or possible merger options. It can also act as a predictive tool for future financial conditions and results. Financial analysis is also applicable to identify management problems production activities. It can serve to evaluate the performance of the company's management. And most importantly, financial analysis allows you to rely less on guesswork, premonitions and intuition, reduce the inevitable uncertainty that is present in any decision-making process. Financial analysis does not eliminate the need for business sense, but creates a solid and systematic basis for its rational application.
Financial analysis is a process based on the study of data on the financial condition and performance of the enterprise in the past in order to assess the prospects for its development. Thus, the main task of financial analysis is to reduce the inevitable uncertainty associated with making future-oriented economic decisions.
Financial analysis makes it possible to evaluate
- 1) property status of the enterprise
- 2) the degree of entrepreneurial risk, in particular the possibility of paying off obligations to third parties
- 3) capital adequacy for current activities and long-term investments
- 4) the need for additional sources of funding
- 5) the ability to increase capital
- 6) the rationality of attracting borrowed funds
- 7) the validity of the policy of distribution and use of profits
- 8) the expediency of choosing an investment and others.
In a broad sense, financial analysis can be used as a tool to justify short-term and long-term economic decisions, the feasibility of investments as a means of assessing the skill and quality of management as a way to predict future results.
Modern financial analysis is constantly changing under the influence of the growing influence of the environment on the conditions of the functioning of enterprises. In particular, its target orientation is changing, the control function is receding into the background and the main emphasis is on the transition to the justification of management and investment decisions, determining the directions of possible capital investments and assessing their feasibility. .
Financial analysis is an essential element of financial management and audit. Almost all users of the financial statements of the enterprise use the methods of financial analysis to make decisions.
It is based on the calculation of absolute and relative indicators characterizing various aspects of the enterprise and its financial position. However, the main thing when conducting financial analysis is not the calculation of indicators, but the ability to interpret the results.
Thus, the main goal of financial analysis is to obtain a small number of key (most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors. At the same time, the analyst and the manager (manager) may be interested in both the current financial condition of the enterprise and the forecast for the near or long term, that is, the expected parameters of the financial condition. .
The objectives of the analysis are achieved as a result of solving a certain interrelated set of analytical tasks. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological possibilities for conducting this analysis. The main factors are the volume and quality of the initial information. At the same time, it should be borne in mind that the periodic financial statements of an enterprise are only raw information prepared during the implementation of accounting procedures at the enterprise.
Any end goal entrepreneurial activity is to generate income. Therefore, the administration of an economic entity, based on the results of financial analysis, must make scientifically sound, correct and optimal management and financial decisions; implementation of which in practice would ensure the achievement of this goal.
All decisions can be summarized in three main areas:
- - decision on the investment of resources;
- - operations carried out with the help of these resources;
- - determination of the structure of the financial business.
"Timely and high-quality provision of these areas of financial solutions, - writes the Russian scientist A.D. Sheremet, - is the essence of financial analysis ".
Also Professor Sheremet A.D. writes that "the financial condition of an enterprise is characterized by the placement and use of funds (assets) and the sources of their formation (own capital and liabilities, i.e. liabilities)" .
A.I. Kovalev and V.P. Privalov interprets it as follows: “Financial condition is a set of indicators reflecting the availability, placement and use of financial resources”.
Professor Balabanov I.T. writes: "Financial condition is a comprehensive assessment of his health and vitality, characterized by a number of indicators" .
Ultimately, the financial position of the enterprise should testify to the reliability, stability and prospects of the enterprise in a competitive market economy that does not spare the weak and unviable.
To make management decisions in the field of production, marketing, finance, investment and innovation, management needs constant awareness of relevant issues, which is possible only as a result of the selection, analysis, evaluation and concentration of the original raw information.
Financial analysis is the prerogative of the top management structures of an enterprise that can influence the formation of financial resources and cash flows. The effectiveness or inefficiency of private management decisions related to determining the price of a product, the size of a batch of purchases of raw materials or deliveries of products, the replacement of equipment or technology, should be evaluated in terms of the overall success of the company, the nature of its economic growth and the growth of the overall financial efficiency.
Note that failures using financial ratios for the purposes of making economic decisions, they are explained to a large extent precisely by the fact that novice analysts involve data that are incomparable from the point of view of accounting methodology for analysis and then draw inadequate conclusions based on them.
The second condition, following from the first, is the possession of methods of financial analysis. At the same time, qualitative judgments in solving financial issues are no less important than quantitative results. Such qualitative judgments should include, first of all, a general assessment of the situation and the problems that will determine both the use of certain specific methods of financial analysis and the interpretation of its results, the degree of required accuracy of which also depends on the specific situation and the goals of the analysis. To ensure qualitative judgments, it is necessary to assess the reliability of the information available, as well as the degree of uncertainty and risk.
The third condition is the existence of an action program related to the definition of specific goals for the implementation of analytical work. For example, the final analysis of liquidity ratios according to financial statements, carried out for the purposes of compiling an explanatory note, will differ from an in-depth analysis of solvency, which is aimed at forecasting future cash flows.
The fourth condition is determined by understanding the limitations inherent in the applied analytical tools and their impact on the reliability of the results of financial analysis. Thus, the key point for the decision-making process on the feasibility of new investments is the determination of the cost of capital.
The theory and practice of financial analysis has a diverse set of methods for calculating this criterion for evaluating investments, which differ both in methodological approaches to determining the value of individual components of capital and in the information base. The professionalism of an analyst is that, having various methods determining the cost of capital, understanding the problems of using one or another methodological approach, justify the choice of an acceptable method, taking into account the goals of the analysis and the available information.
The cost of the financial analysis process and the requirement to measure costs and results determine the fifth condition regarding the minimization of labor costs and the performance of analytical work while achieving satisfactory accuracy of the calculation results.
sixth prerequisite effective financial analysis is the interest in its results of the management of the enterprise. The quality of financial analysis depends on the competence of the person making the managerial decision in the field of financial policy. The task of the enterprise reform is the transition to financial management based on an analysis of the financial and economic state, taking into account the setting of strategic goals for the enterprise.
In modern conditions, the management of an enterprise is faced with the task not so much to master the methods of financial analysis themselves (to perform professional analysis, appropriately trained personnel are needed), but to use the results of the analysis.
In an effort to resolve specific issues and get a qualified assessment of the financial situation, business leaders are increasingly beginning to resort to the help of financial analysis. At the same time, they, as a rule, are no longer content with stating the value of reporting indicators, but expect to receive a specific conclusion on the sufficiency of means of payment, the normal ratio of equity and borrowed capital, the rate of capital turnover and the reasons for its change, the types of financing of certain types of activities.
The results of financial analysis make it possible to identify vulnerabilities that require special attention. It often turns out to be sufficient to find these places in order to develop measures for their elimination.
All this once again indicates that financial analysis in modern conditions is becoming an element of management.
Financial analysis is an important element of financial management. To ensure the effectiveness of the organization in modern conditions, management needs to be able to realistically assess the financial condition of their organization, as well as the financial condition of partners and competitors.
Financial condition- a complex concept, which is characterized by a system of indicators that reflect the availability, placement and use of financial resources of the organization.
In practice, it often happens that a well-functioning organization experiences financial difficulties associated with insufficiently rational allocation and use of available financial resources. Therefore, financial activity should be aimed at ensuring the systematic receipt and efficient use of financial resources, compliance with settlement and credit discipline, achieving a rational ratio of own and borrowed funds, financial stability for the effective functioning of the organization. An essential role in achieving a stable financial position belongs to the analysis.
With the help of financial analysis, decisions are made on:
short-term financing of the organization (replenishment of current assets);
long-term financing (investment in efficient investment projects and emissive securities);
payment of dividends to shareholders;
mobilization of reserves for economic growth (growth in sales and profits).
The main purpose of financial analysis is to obtain a certain number of key parameters that give an objective and reasonable description of the financial condition of the organization. These are, first of all, changes in the structure of assets and liabilities, in settlements with debtors and creditors, in profit and loss.
The main objectives of financial analysis:
determination of the financial condition of the organization;
identification of changes in the financial condition in the spatio-temporal context;
establishing the main factors causing changes in the financial condition;
forecast of the main trends in financial condition.
The alternativeness of the goals of financial analysis depends on its time limits, as well as on the goals set by users of financial information.
The objectives of the study are achieved as a result of solving a number of tasks:
Preliminary review of financial statements.
Characteristics of the property of the organization: non-current and current assets.
Assessment of financial stability.
Characteristics of sources of funds (own and borrowed).
Analysis of profit and profitability.
Development of measures to improve the financial and economic activities of the organization.
These tasks express the specific goals of the analysis, taking into account the organizational, technical and methodological possibilities of its implementation. The main factors in the end are the volume and quality of analytical information.
The basic principle of studying analytical indicators is the deductive method (from general to particular).
Financial analysis is part of a general, complete analysis of economic activity, which consists of two closely related sections:
The financial analysis.
Management (production) analysis.
The division of analysis into financial and managerial is due to the division of the accounting system into financial and managerial accounting that has developed in practice. The main feature of the separation of analysis into external and internal is the nature of the information used.
External Analysis is based on published reporting data, i.e. on a very limited part of the information about the activities of the organization, which is the property of the whole society. The main source of information for external analysis is the balance sheet and its appendices.
Internal analysis uses all information about the state of affairs in the organization, including information available only to a limited circle of people who manage the organization's activities.
Scheme of business analysisorganizations
|
Business activity analysis | |||||||||||||
|
Management analysis |
The financial analysis | ||||||||||||
|
Interior production analysis |
Internal financial analysis |
External financial analysis |
|||||||||||
|
Analysis in the justification and implementation of business plans |
Analysis of the effectiveness of capital advances | ||||||||||||
|
Analysis in the marketing system |
Analysis of absolute profit indicators | ||||||||||||
|
Comprehensive economic analysis of the effectiveness of economic activity |
Analysis of relative profitability indicators | ||||||||||||
|
Analysis of production conditions |
Analysis of liquidity, solvency and financial stability | ||||||||||||
|
Analysis of the use of production resources |
Analysis of the use of equity capital | ||||||||||||
|
Product volume analysis |
Analysis of the use of borrowed funds | ||||||||||||
|
Product cost analysis | |||||||||||||
The division of analysis into internal and external is also associated with the goals and objectives facing each of them. Tasks of external analysis determined by the interests of users of analytical material.
Internal financial analysis aims a deeper study of the causes of the current financial condition, the effectiveness of the use of basic and working capital, the relationship of indicators of production (sales), cost and profit. To do this, additional financial accounting data (normative and planned information) is used as sources of information.
Exclusively internal is managerial analysis. It uses the whole range of economic information, is operational in nature and is completely subordinate to the will of the organization's management. Only such an analysis makes it possible to realistically assess the state of affairs in the organization, explore the cost structure not only of all manufactured and sold products, but also of its individual types, the composition of commercial and administrative expenses, and especially carefully study the nature of the responsibility of officials for the implementation of the business plan.
Management analysis data play a decisive role in developing the most important issues of the organization's competitive policy: improving technology and organizing production, creating a mechanism for achieving maximum profit. Therefore, the results of management analysis are not subject to publicity, they are used by the organization's management to make management decisions, both operational and long-term.
More clearly, the differences between the characteristics of financial and managerial analysis are presented in Table 1.
Financial analysis is a method of accumulation, transformation and use of information of a financial nature, with the aim of:
assess the current and prospective financial condition of the enterprise;
assess the possible and appropriate pace of development of the enterprise from the standpoint of their financial support;
identify available sources of funds and assess the possibility of their mobilization;
predict the position of the enterprise in the capital market.
The main purpose of financial analysis is to obtain a small number of key (most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors, while the analyst or manager (manager ) may be of interest to both the current financial condition of the enterprise and its projection for the near or more distant future, i.e. expected parameters of the financial condition.
But not only time limits determine the alternativeness of the goals of financial analysis. They also depend on the goals of the subjects of financial analysis, i.e. specific users of financial information. The subjects of analysis are, both directly and indirectly, users of information interested in the activities of the enterprise.
The first group of users includes owners of enterprise funds, lenders (banks, etc.), suppliers, customers (buyers), tax authorities, enterprise personnel and management. Each subject of analysis studies information based on their interests. So, the owners need to determine the increase or decrease in the share of equity capital and evaluate the efficiency of the use of resources by the administration of the enterprise; creditors and suppliers - the feasibility of extending the loan, credit conditions, loan repayment guarantees; potential owners and creditors - the profitability of investing their capital in the enterprise, etc. It should be noted that only the management (administration) of the enterprise can deepen the analysis of reporting using production accounting data as part of the management analysis carried out for management purposes.
The second group of users of financial statements are the subjects of analysis, who, although not directly interested in the activities of the enterprise, must, under the contract, protect the interests of the first group of users of statements. These are audit firms, consultants, exchanges, lawyers, press, associations, trade unions.
The objectives of the analysis are achieved as a result of solving a certain interrelated set of analytical tasks. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. Ultimately, the main factor is the volume and quality of the initial information. At the same time, it should be borne in mind that the periodic accounting or financial statements of an enterprise are only "raw information" prepared during the implementation of accounting procedures at the enterprise.
To make management decisions in the field of production, marketing, finance, investment and innovation, management needs constant business awareness on relevant issues, which is the result of the selection, analysis, evaluation and concentration of the original raw information. An analytical reading of the source data is also necessary based on the goals of analysis and management.
The basic principle of analytical reading of financial statements is the deductive method, i.e. From general to specific. In the course of such an analysis, as it were, the historical and logical sequence of economic facts and events, the direction and strength of their influence on the results of activity are reproduced.
The practice of financial analysis has already developed the main types of analysis (method of analysis) of financial statements. Among them, 6 main methods can be distinguished:
horizontal (temporal) analysis- comparison of each reporting position with the previous period;
vertical (structural) analysis- determination of the structure of the final financial indicators with the identification of the impact of each reporting position on the result as a whole;
trend analysis- comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible values of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;
analysis of relative indicators (coefficients)- Calculation of relations between separate positions of the report or positions of different forms of reporting, determination of interrelations of indicators;
comparative (spatial) analysis- this is both an on-farm analysis of summary reporting indicators for individual indicators of an enterprise, branches, divisions, workshops, and an inter-farm analysis of indicators this enterprise in comparison with the indicators of competitors, with average industry and average economic data;
factor analysis- analysis of the influence of individual factors (reasons) on the performance indicator using deterministic or stochastic methods of research. Moreover, factor analysis can be both direct (analysis itself), when the analysis is divided into component parts, and reverse, when a balance of deviations is made up and at the stage of generalization all the identified deviations are summed up, the actual indicator from the baseline due to individual factors.
The methodology of financial analysis consists of three interrelated blocks:
- 1. analysis of the financial condition;
- 2. analysis of the financial results of the enterprise;
- 3. analysis of the effectiveness of financial and economic activities.
There is a variety of economic information about the activities of enterprises and many ways to analyze these activities. Financial analysis according to financial statements is called the classic method of analysis.
Financial analysis is part of a general, complete analysis of economic activity, which consists of two closely related sections: financial analysis and production management analysis.
The division of analysis into financial and managerial is due to the division of the enterprise-wide accounting system into financial accounting and management accounting that has developed in practice. This division of analysis is somewhat arbitrary, because internal analysis can be seen as a continuation of external analysis and vice versa. In the interests of the case, both types of analysis feed each other with information.
Features of external financial analysis are:
the plurality of subjects of analysis, users of information about the activities of the enterprise;
variety of goals and interests of the subjects of analysis;
availability of standard methods of analysis, accounting and reporting standards;
orientation of the analysis only to the public, external reporting of the enterprise;
limited analysis tasks as a consequence of the previous factor;
maximum openness of the analysis results for users of information about the activities of the enterprise.
Financial analysis, based on data only from financial statements, acquires the character of an external analysis, i.e. analysis carried out outside the enterprise by its interested counterparties, owners or government agencies. This analysis, based only on reporting data, which contains only a very limited part of information about the activities of the enterprise, does not allow revealing all the secrets of success or failure in the activities of the enterprise.
analysis of absolute indicators of profit;
analysis of relative profitability indicators;
analysis of the financial condition, market stability, liquidity of the balance sheet, solvency of the enterprise;
analysis of the effectiveness of the use of borrowed capital;
economic diagnostics of the financial condition of the enterprise and the rating assessment of issuers.
On-farm financial analysis uses data on the technical preparation of production, regulatory and planning information, and other system accounting data as a source of information.
In the system of on-farm management analysis, it is possible to deepen financial analysis by attracting management production accounting data, in other words, it is possible to conduct a comprehensive economic analysis and evaluate the effectiveness of economic activity. The issues of financial and managerial analysis are interrelated in the justification of business plans, in monitoring their implementation, in the marketing system, i.e. in the management system for the production and sale of products, works and services oriented to the market.
Features of management analysis are:
orientation of the results of the analysis to their management;
use of all sources of information for analysis;
lack of regulation of analysis from the outside;
the complexity of the analysis, the study of all aspects of the enterprise;
integration of accounting, analysis, planning and decision making;
maximum secrecy of the analysis results in order to preserve commercial secrets.
Introduction of a new chart of accounts of accounting, bringing the forms of accounting statements in line with the requirements international standards necessitates the use of a new method of financial analysis, corresponding to the conditions of a market economy. Such a technique is needed for a reasonable choice of a business partner, determining the degree of financial stability of an enterprise, assessing business activity and the effectiveness of entrepreneurial activity.
The main (and in some cases the only) source of information about the financial activities of a business partner is the financial statements, which have become public. The company's reporting market economy is based on the generalization of financial accounting data and is an information link connecting the enterprise with society and business partners - users of information about the activities of the enterprise.
In certain cases, to achieve the goals of financial analysis, it is not enough to use only financial statements. Separate user groups, such as management and auditors, have the opportunity to involve additional sources (production and financial accounting data). However, most often annual and quarterly reports are the only source of external financial analysis.
According to the order of the Ministry of Finance of the Republic of Belarus No. 23 dated January 20, 2000, new standard forms of annual financial statements of legal entities were approved.
The main source of information for financial analysis is the balance sheet of the enterprise (Form No. 1). Its importance is so great that the analysis of the financial condition is often called the analysis of the balance sheet. The source of data for the analysis of financial results is the income statement (Form No. 2). source additional information for each of the blocks of financial analysis, there are explanations to the balance sheet and profit and loss statement, namely: statement of movements of funds and other funds (Form No. 3), statement of cash flows (Form No. 4), appendix to the balance sheet ( Form No. 5).
How useful are such sources of information for enterprises?
First of all, by the fact that without preparing data for analysis, already on the basis of the balance sheet of the enterprise (Form No. 1) and (Form No. 2), a comparative express analysis of the company's reporting indicators for previous periods can be made.
Secondly: with the advent of special automated accounting programs for analyzing the financial condition of an enterprise, it is convenient immediately after compiling reporting forms, without leaving the program, to perform the simplest express analysis of the enterprise based on ready-made forms of financial statements using the built-in financial analysis block.
The detailing of the procedural side of the methodology for analyzing the financial condition depends on the goals set, as well as various factors of information, time, methodological, personnel and technical support. The logic of analytical work assumes its organization in the form of a two-module structure:
express analysis of the financial condition;
detailed analysis of the financial condition.
FINANCIAL ANALYSIS IN THE SYSTEM OF FINANCIAL MANAGEMENT
financial indicator analysis business entity
1. The purpose and objectives of financial analysis
The financial analysis - this is a scientific research method used to process information about the financial activities of an economic entity (organization). Purpose of financial analysis - grade financial parameters organization's activities. The results of financial analysis give necessary information about the state of the object of analysis and serve as the basis for making appropriate management decisions.
Tasks of financial analysis are:
determination of the current financial condition of the organization;
identification and assessment of changes in the financial condition in the spatio-temporal context;
identification and assessment of the main factors causing changes in the financial condition;
building a forecast of changes in the financial condition of the organization in the future.
The subject of financial analysis are the relations between individual divisions of the organization in the field of financial management, as well as the financial relations of the organization with external counterparties.
The object of financial analysis is the financial and economic activity of the organization, in particular, the processes associated with the change:
resource base of the organization (own and borrowed capital);
assets of the organization (current and non-current);
organization's cash flows, etc.
2. Information Support financial analysis
Information support of the financial analysis of the organization's activities is a system for collecting and processing external and internal information.
The quality of financial analysis directly depends on the representativeness of the information used.
External Information is intended to provide management with the necessary information about the state of the environment in which it operates. The collection of external information involves the accumulation of various data about the situation on the market (about competitors, customers, etc.).
Sources of external information:
editions, publications, reports of official authorities;
reports of information and analytical agencies and consulting companies;
published annual reports of clients, partners and contractors;
personal contacts with clients, partners and contractors.
Inside Information is designed to analyze and assess the financial condition of the organization when making various kinds of managerial, investment, organizational, administrative and other decisions.
Sources of inside information:
financial (accounting) reporting;
statistical reporting;
tax reporting;
valuation calculations for ongoing operations;
results of internal research;
acts of audits and inspections;
certificates prepared by the relevant services on the instructions of the organization's management.
Financial reporting is a system for collecting information about the property and financial condition of the organization and the results of its economic activities.
The financial statements consist of a balance sheet, a profit and loss statement, annexes to them, an explanatory note, as well as an auditor's report confirming the reliability of the financial statements, if the organization is subject to mandatory audit in accordance with the law.
In accordance with the current legislation, financial statements are an open source of information, their composition and presentation forms are unified.
Each reporting form contains certain information that allows you to solve specific problems of financial analysis. The balance sheet - gives an idea of the general characteristics of the financial condition of the organization, the income statement gives an idea of the financial results of the organization, the cash flow statement - characterizes the organization's cash flows, its solvency.
Of particular importance are the appendices to the balance sheet and income statement. They reflect information (at the beginning and end of the reporting period):
on intangible assets, on fixed assets, on types of financial investments, on receivables and payables, on authorized, reserve and additional capital, on the composition of the organization's share capital (fully paid, unpaid, partially paid), on the nominal value of shares owned organizations, etc.;
on the composition of reserves for future expenses and estimated reserves;
on the volumes of sold products, goods (works, services), by type of activity and geographical sales markets;
on the composition of production and distribution costs, other non-operating income and expenses;
on obligations issued by the organization and payments received.
Currently, the organization has the right to independently determine the degree of detail and aggregation of the articles of the reporting forms, depending on their materiality and the number of columns.
Reliability of financial (accounting) information is provided by systems internal control and audits.
The quality of financial (accounting) information largely depends on the completeness of the explanations given to the reporting forms.
Financial statements should give a true and complete picture of the entity's financial position, financial performance and changes in its financial position. Accounting statements formed on the basis of the rules and standards of financial (accounting) accounting are considered reliable and complete.
When preparing financial statements, one-sided satisfaction of the interests of some groups of users of financial statements over others should be excluded due to a special biased selection of source information in order to achieve predetermined results or consequences.
3. Types of financial analysis
In economic theory, financial analysis is divided into two main blocks: macroeconomic and microeconomic. This division is due to the separation of macro- and microeconomics that has developed in modern economic science.
Microeconomic financial analysisis designed to assess the state and efficiency of using the economic and financial potential of the organization, its investment attractiveness, as well as the rationale for management decisions.
Macroeconomic financial analysisis designed to assess the state and efficiency of the functioning of the economy as a whole (regional, national, international), the conjuncture of various market segments.
Depending on the purpose for which the analysis is carried out, it can be classified in the following way.
Depending on the users of information, there are: external and internal analysis.
External Analysisis carried out in order to compare the results of the organization's activities with other organizations according to the financial statements of the counterparty organization. The result of this analysis is the definition market value and investment attractiveness of the organization for potential contacts.
Internal analysis is carried out in order to study the activities of only the analyzed economic entity. At the same time, a system of standards developed in the organization is used. economic activity, as well as operational data, often constituting trade secret organizations. The result of this analysis is to determine the organization's capabilities for the optimal attraction and use of funds to maximize profits and minimize costs, as well as reduce financial risks. A feature of this type of analysis is the use of internal financial statements, accounting data, regulatory and planning information as sources of information.
Comparative characteristics external and internal financial analysis
SignsFeaturesInternal financial analysisExternal financial analysis Subject of analysisRelations between individual divisions of the organization in the field of financial managementRelations of the organization with external counterparties Objects of analysisProperty and financial potential, financial results, cash flows, management quality Property and financial potential, financial results, cash flows, management quality Subjects of analysisFinancial managers, analysts, internal auditors, controllers, consultants, managementPartners, clients, counterparties, financial control and supervision authorities, owners, external auditors Degree of regulationDecisions of governing bodiesInternational and national standards Scope of information usedThe whole set of information about the activities of the organization and factors external environment As part of financial reporting The quality of the information obtained as a result of the analysisIt is largely subjective It is more objective because the analysis is based on information approved by the supervisory authorities Ways to reflect informationAnyBased on generally accepted accounting principles and standards Types of analysis depending on the time horizonCurrent (retrospective), operational, prospective analysisCurrent (retrospective) and prospective analysis RegularityRegulated by internal corporate needs May be regulated by regulations
According to the time horizon, there are: current (retrospective) analysis, operational analysis, prospective (forecast) analysis.
Current Analysis - this is an analysis of the results of current financial and economic activities for reporting periods. It is carried out mainly on the basis of accounting and reporting data of the organization. The current analysis allows you to evaluate the work of the organization for the past periods of time on an accrual basis. Its main task is to evaluate the results of the organization's activities and to comprehensively identify unused reserves. The peculiarity of the current analysis is that the actual performance results are compared with the planned indicators and data from previous analytical periods. The current analysis is the most complete analysis of economic activity, which incorporates the results of operational analysis and is the basis for conducting a prospective analysis.
Operational analysis -it is an analysis aimed at solving the problems that face the operational management of the organization and is largely a tool management accounting. Operational analysis is carried out in order to promptly respond to changes in the internal and external environment that are unfavorable for the organization. The main task of operational analysis is constant monitoring and operational assessment of various parameters of the functioning of the organization, identifying shortcomings and their causes. Operational analysis, in contrast to the current one in time, is close to the time of business transactions, i.e. can be done in real time.
Perspective analysis- this is an analysis of the future results of the financial and economic activities of the organization. The most important tasks of conducting a prospective analysis are the preparation of the necessary analytical information to substantiate the long-term and current plans for the development of the organization, the assessment of the reality of the implementation of the planned plans.
Depending on the depth of the analytical study, there are:
express analysis- is carried out for a general and operational assessment of the financial condition and efficiency of the organization;
in-depth analysis- is carried out for a fundamental assessment of the financial condition and efficiency of the organization.
On the basis of regularity, they distinguish:
periodic -is carried out regularly in the appropriate periods of time (annual, quarterly, monthly, daily, shift, etc.);
one-time- is carried out at a time due to circumstances of a different nature.
An example of "periodic" analysis.The express analysis procedure, used, for example, in monitoring the financial condition of an organization, is the selection of a small number of significant, relatively easy-to-calculate indicators and constant monitoring of their dynamics.
An example of a "one-off" analysis.The express analysis procedure used, for example, by banks, in monitoring the borrower's creditworthiness - individual and assessment of emerging risks - selection of the most significant indicators and calculation on the basis of a special program of the integral effect arising from their total impact. The number of indicators in this case can be relatively large. The main task of express analysis is the efficiency of obtaining the result. According to the completeness of the study of the organization's activities:
full analysis- a comprehensive study of the financial and economic activities of the organization;
thematic analysis- study of certain areas of financial and economic activity of the greatest interest in this moment time.
The main directions of financial analysis:
Analysis of property potential:
a general description of the financial and economic activities of the organization (vertical and horizontal analysis of the balance sheet, the construction of an analytical balance sheet);
analysis of the structure and dynamics of assets;
analysis of the structure and dynamics of liabilities.
2. Analysis of financial potential:
analysis of liquidity and solvency of the organization;
analysis of financial stability.
3. Analysis of financial results:
analysis of the structure and dynamics of income and expenses of the organization;
analysis of the level and dynamics of financial results;
analysis of business activity indicators;
analysis of profitability indicators.
4. Analysis of cash flow.
Comprehensive assessment of the organization's activities.
Bankruptcy probability analysis.
The results of the analysis are drawn up in the form of an analytical note, which, as a rule, includes the following main sections:
general characteristics organization and the economic environment in which it operates. Financial indicators, coefficients and other analytical information. Qualitative and quantitative characteristics of the key factors that have the greatest impact on the financial condition of the organization. Conclusions based on the results of the analysis and forecast of changes in the financial condition.
5. Methodological support of financial analysis
Analysis method - this is a way of studying, measuring and generalizing the influence of various factors on changing the results of an organization's activities in order to improve them.
Analysis Method - a set of rules, techniques for the expedient conduct of analytical work.
When carrying out analytical calculations of a financial nature, an extensive set of methods and techniques are used, borrowed from various sciences and systematized within the framework of financial analysis.
Let's give one of the classifications of methods of financial analysis.
Classical methods of mathematical analysis:
methods of elementary mathematics;
differential and integral calculus;
variational calculus.
2. Traditional analysis methods:
comparison method;
horizontal analysis;
vertical analysis;
coefficient analysis;
trend analysis.
3. Special analysis methods:
operational (marginal) analysis;
ABC - analysis.
4. Methods of economic statistics:
method of averages;
grouping method;
method of processing time series;
index method;
graphic method.
5. Methods of deterministic factor analysis:
chain substitution method;
method of absolute differences;
relative difference method;
proportional division method;
equity method;
logarithm method;
index method;
integral method.
6. Methods of mathematical statistics and econometrics (stochastic factor analysis):
correlation analysis;
regression analysis;
dispersion analysis;
multivariate factor analysis;
component analysis;
methods of processing spatio-temporal aggregates.
method of summing the values of all indicators;
place sum method;
scoring method;
distance method;
taxonometric method.
Classical methods of mathematical analysis are used both within the framework of other methods, for example, methods of mathematical statistics and mathematical programming, and separately, for example, factor analysis of change economic indicators can be carried out using differentiation and other methods developed on the basis of differentiation.
Methods of economic statistics are used to generalize the set of features of the processes and phenomena under study, to study their structure and relationships, to analyze quantitative characteristics and the dynamics of changes in indicators.
Methods of deterministic factor analysis are used to study the influence of factors on the performance indicator in the case of its direct functional dependence on these factor characteristics. The task of deterministic factor analysis is to determine and quantify the impact of each factor on the performance indicator.
Methods of mathematical statistics and econometrics are used in cases where the change in the analyzed indicators is a random process. The most widespread of the mathematical and statistical methods in financial analysis are the methods of multiple and paired correlation analysis, regression analysis. These methods play an important role in predicting the behavior of economic indicators. If the relationship between the analyzed characteristics is not deterministic, but stochastic, then mathematical and statistical methods are practically the only research tool.
Rating methods are used to study a set of indicators that give a multilateral assessment of the organization's activities. To obtain a generalized comprehensive assessment, these indicators are reduced into a single integral indicator, on the basis of which the rating is determined.
The analysis process can be represented as follows:
1. Preliminary stage:
Definition of the purpose and tasks of the analysis, definition of objects, drawing up a plan of analytical work.
Collection and preparation of information necessary for analysis, verification of its reliability, accuracy, etc.
Selection, structuring and grouping of data.
Development of a system of indicators that most fully characterize the object of analysis, determination of standard values of indicators.
2. Analytical stage:
Analysis of the structure and dynamics of changes in indicators.
Comparison of actual performance with planned indicators, data from previous analytical periods, with performance indicators of other organizations, with industry average indicators, etc.
The study of the degree of influence of factors on the results of the organization.
Determination of reserves for increasing the efficiency of the organization.
3. The final stage:
Overall score results of the organization's activities.
Evaluation of the quality of management work.
Literature
Bakhramov, Yu.M. Financial management: Textbook for bachelors. - 2nd ed. - St. Petersburg: Piter, 2011. - 495 p. (textbook for universities. Standard of the third generation, approved by the UMO for education in the field production management as a textbook for students of economic specialties of universities).
Belolipetsky V.G. Financial management. Tutorial/ V. G. Belolipetsky. - M. : Knorus, 2008. - 448 p. (recommended by the UMO for classical university education as a textbook for university students studying in the direction 080100 "Economics").
Gavrilova A.N., Sysoeva E.F., Barabanova A.I. Financial management. Tutorial. M.: Knorus, 2006.
Send a request with a topic right now to find out about the possibility of receiving a consultation.