Ratio analysis. Assessment of the financial condition of the enterprise

Calculate and analyze the indicators of financial condition. In the process of the coefficient method of analyzing the financial condition, indicators of solvency, financial stability, business activity and profitability are calculated. In addition to the indicated groups of indicators, we will also calculate the indicators provided for by the Rules for conducting a financial analysis by an arbitration manager, approved by Decree of the Government of the Russian Federation of 06.25.03. No. 367.

Solvency indicators characterize the degree of liquidity of current assets and indicate the financial capacity of the enterprise to fully pay off its obligations as the debt matures.

The current liquidity ratio shows the sufficiency of working capital of the enterprise, which can be used by them to pay off their short-term obligations. The value of the coefficient for the analyzed period fluctuated within 0.89 - 0.74 with a standard of 1.0 - 2.0. It follows from this that the level of working capital is insufficient to cover short-term liabilities. Given the illiquidity of bills and the presence of overdue receivables, the level of this indicator would be several times lower.

The low value of the quick liquidity ratio (average value of 0.37 over the entire period), reflecting the predicted payment capabilities of the enterprise, subject to timely settlements with debtors, indicates the need for constant work with debtors in order to ensure the possibility of converting the most liquid part of working capital into cash.

In order to determine what part of the short-term debt the company can repay in the near future, the absolute liquidity ratio is calculated. The coefficient calculated according to the balance sheet data, despite the upward trend (increase from 0.005 to 0.047), has a very low value, which indicates a crisis in the sphere of the company's solvency. The growth of the indicator is associated with the negative aspects occurring at the enterprise - the increase in the numerator when calculating the indicator is associated with the growth of short-term financial investments, which are represented by "empty" promissory notes of JSC Novosibirskenergo, etc.

The ratio of accounts receivable and accounts payable characterizes the ratio of the company's funds that it must receive from its debtors to the funds that the company must pay to its creditors. The value of this indicator should be equal to 1. The data reflects the crisis situation at the enterprise: high accounts payable indicates that the enterprise, using a cheaper source of financing, risks receiving fines and sanctions from the tax authorities and supplier enterprises. When considering the structure of current assets, it should be noted that the high proportion of receivables, firstly, negatively affects the overall solvency of the enterprise and, secondly, in the absence of constant work with receivables, it can lead to its transition to the category of overdue.

Indicators of the financial stability of the enterprise characterize the state of financial resources that ensure the process of production and sale of products.

According to the financial statements, the indicators of financial stability in general have a negative trend, reflecting the unstable position of the enterprise in the environment of counterparties.

The coefficient of financial autonomy, which characterizes the ability to fulfill payment obligations in a timely and complete manner and determines independence from borrowed funds, as well as the role of equity in the formation of enterprise assets at a normal value of 0.5 - 0.7, has values ​​​​in the range from 0.11 to - 0, 27. Such a low level of autonomy coefficient reflects the unstable financial situation, the unfavorable structure of financial sources and the very high level of risk for investors.

Financial stability ratio characterizes the part of the balance sheet asset financed from sustainable sources (own funds, medium- and long-term liabilities), is calculated as a supplement and development of the indicator of financial independence (autonomy). Its values ​​coincide with the values ​​of the coefficient of financial autonomy, since there are no long-term obligations in the structure of the enterprise.

Very high coefficient value financial dependence (for the analyzed period, the growth of the indicator from 0.89 to 1.27), which reflects the share of borrowed funds in the sources of financing, and this value reflects the same negative trend. The value of the indicator is greater than 1, which indicates that the enterprise uses borrowed funds to finance its activities by 100%. Such conduct of business activities is very risky for the enterprise.

Funding ratio, showing which part of the activity is financed by the enterprise’s own funds, and which part is financed by borrowed funds, has low and then negative values ​​(for the analyzed period, a decrease from 0.11 to -0.21) with a recommended value greater than or equal to 1. All this is due to the company's lack of own funds due to large losses.

Permanent asset ratio and agility ratio reflect the structure of the company's assets. The permanent asset ratio shows the share of fixed assets and non-current assets in the sources of own funds (its value varies from 1.89 to -0.24). The flexibility coefficient reflects the ability of the enterprise to maintain the level of its own working capital and replenish working capital from its own sources. The organization does not use long-term loans and borrowings, so the sum of the maneuverability coefficient and the permanent asset index will be equal to 1.

The normal value of the maneuverability index ranges from 0.2 to 0.5, for OAO Sibtekhmontazh, according to the balance sheet, it has a value of -0.89 - 1.24. Completely abnormal values ​​of indicators, taking into account their instability, reflect a negative trend, for the most part due to the presence of large losses.

The coefficient of security of current assets with own working capital, showing that the enterprise has its own working capital necessary for its financial stability, also has negative values. The standard value of the indicator is from 0.1 to 0.5, while the actual value is from -0.12 to -0.35 for the analyzed period. The lower the value of this indicator, the worse the financial condition of the enterprise, the less it has the ability to conduct an independent financial policy.

The ratio of mobile and immobilized means reflects how much non-current assets account for 1 ruble of current assets, and the higher the value of the indicator, the more funds the company invests in current assets, which could indicate a positive trend. But in our case, the structure of current assets is such that accounts receivable are predominant in it, which in no way reflects a favorable trend.

The coefficients of the ratio of assets and equity, and current assets and equity, having values ​​in the ranges of 9.16 - -3.72 and 7.27 - -3.48, respectively, also indicate the crisis financial condition of the enterprise.

The ratio of accounts payable to accounts receivable for the analyzed period has an average value of 2 (as of 01.01.04 - 2.86), that is, the excess of accounts payable over accounts receivable is almost 3 times.

The main criteria for assessing the financial condition of the organization are its solvency and liquidity. The concept of solvency is broader than the concept of liquidity. So, solvency is understood as the ability of the company to fully fulfill its payment obligations, as well as the availability of funds necessary and sufficient to fulfill these obligations. The term liquidity means the ease of implementation, sales, the transformation of material assets into cash.

One of the main tasks of analyzing the company's liquidity and solvency indicators is to assess the degree to which the organization is close to bankruptcy. It should be noted that liquidity indicators are not related to the assessment of the company's growth potential and reflect mainly the momentary situation. If the company works for the future, the significance of liquidity indicators drops significantly. Accordingly, it is advisable to start assessing the financial condition of a company with an analysis of its solvency.

The main way to determine the solvency and liquidity of the company is a ratio analysis.

The most common and widely used method for assessing the financial condition of an organization is ratio analysis.

Ratio analysis is the study of the level and dynamics of relative indicators of the financial condition, calculated as the ratio of the values ​​of balance sheet items or other absolute indicators obtained on the basis of financial statements or accounting.

When analyzing financial ratios, their values ​​are compared with base values, and their dynamics for the reporting period and a number of adjacent reporting periods is also studied

First, let's define what financial ratios are. The financial ratio is a relative indicator calculated as the ratio of individual balance sheet items and their combinations. It goes without saying that, for coefficient analysis, the information base is the balance sheet, i.e. it is carried out on the basis of data 1 and 2 of the balance sheet.



In the economic literature, ratio financial analysis, as a rule, refers to the study and analysis of financial statements using a set of financial indicators (ratios). The purpose of ratio analysis is to describe a company in terms of several basic indicators that allow one to judge its financial condition.

When conducting a coefficient analysis, it should be taken into account that the normal or recommended values ​​were determined based on an analysis of the activities of Western companies and were not adapted to Russian conditions.

In addition, it is necessary to be careful about the method of comparing coefficients with industry standards. If in developed countries the main proportions were formed decades ago, there is constant monitoring of all changes, then in Russia the market structure of the assets and liabilities of an enterprise is in its infancy, monitoring is not carried out in full. And if we take into account the distortions in reporting, constant adjustments to the rules for compiling it, then it is clear that it is difficult to develop sufficiently justified new standards for industries.

As has been noted more than once, in theory and practice there are more than two hundred coefficients, and sometimes the same coefficients appear under different names, in general they can be reduced to several groups that characterize certain aspects of the financial situation of the organization. In total, there are four main groups of indicators:

1. Liquidity ratios.

2. Coefficients of the capital structure (stability).

3. Profitability ratios.

4. Turnover ratios (business activity).

In the future, the values ​​of the coefficients are compared with their recommended standard, as a result of which an opinion is formed about the solvency or insolvency of the organization, its financial stability or instability, profitability of activities, and the level of business activity.

The business activity of an enterprise in the financial aspect is manifested in the rate of turnover of funds, which affects the amount of the annual revenue of the enterprise, the amount of semi-fixed costs, and the solvency of the enterprise. The following factors influence the duration of the company's funds in circulation:

1. internal (the effectiveness of the asset management strategy, the pricing policy of the enterprise, methods for assessing inventory and stocks of the enterprise);

2. external (industry affiliation of the organization, scope of activities, inflation rate, nature of economic relations with partners).

Indicators of business activity of the enterprise can be divided into two groups.

1. General indicators of asset turnover:

1. total capital turnover ratio (resource return) - reflects the rate of turnover of the total capital of the enterprise:

Resource return \u003d Sales proceeds / Amount of assets;

2. turnover ratio of working capital - characterizes the speed of turnover of all working capital of the enterprise:

Working capital turnover ratio = Sales proceeds / Amount of current assets.

2. Asset management indicators:

1. coefficient of return of intangible assets - reflects the effectiveness of the use of intangible assets:

Return on intangible assets = = Sales proceeds / Amount of intangible assets;

2. return on assets - shows the efficiency of the use of fixed assets in the enterprise:

Return on assets \u003d Sales proceeds / Amount of fixed assets.

In the process of analyzing the business activity of an enterprise, special attention should be paid to the duration of the production cycle and its components.

Along with the absolute indicator of the volume of profit in financial statistics, a relative indicator is widely used - profitability, which in general characterizes the profitability of the enterprise. This indicator is a kind of synthesis of various qualitative and quantitative indicators: growth in production and productivity, cost reduction, etc.

There are three indicators of profitability: total profitability, profitability of sales, return on capital.

Overall profitability Ro is determined by the formula

where Pb- the total balance sheet profit;

F- the average annual cost of fixed production assets, intangible assets and tangible working capital.

The profitability indicator of sold products reflects the efficiency of current costs (in contrast to the overall profitability indicator, which characterizes the effectiveness of advanced capital) and is calculated as the ratio of profit from sales of products to the full cost of sales:

,

where Prp- profit from the sale of products;

FROM- total cost of goods sold.

The profitability of a particular type of product depends on the prices of raw materials, product quality, labor productivity, material and other production costs. The profitability of production assets depends not only on these factors, but also on the efficiency of the use of production potential, the results of non-industrial activities. Therefore, the profitability of products sold details the overall profitability.

Financial statistics of enterprises (organizations) studies the state, dynamics of fixed and circulating capital, the efficiency of its use, as well as the availability of inventories in general, by groups and sources of education.

The business activity of an enterprise (organization) in financial terms is determined using the indicator of the total capital turnover, which is determined by the formula

where B is the proceeds from the sale of products;

K - the capital of the enterprise (organization): fixed capital, tangible working capital, intangible assets, circulation funds.

The total turnover of capital may increase as a result of not only the acceleration of the turnover of the property of the enterprise (organization), but also a relative decrease in capital in the analyzed period, rising prices due to inflation.

Profitability is determined by cost and profit. The absolute amount of profit characterizes the economic effect, but not the efficiency of the enterprise. The generalizing indicators of the enterprise's activity are profitability indicators.

1. Profitability of sales:

Return on sales = (Non-current assets / Sales proceeds) * 100% characterizes how much profit falls on the ruble of sold products.

2. Return on equity:

Return on equity = (Intangible assets / Equity capital) * 100% characterizes the efficiency of using equity.

3. Return on assets:

Return on assets = (Non-current assets / Assets) * 100%.

4. ROI:

Return on investment = (Non-current assets / (Equity + Long-term liabilities)) * 100%. The return on assets depends on the return on sales indicator:

Return on assets = Return on sales * Asset turnover.

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

Essence of analysis

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

The ratio analysis method is performed on the basis of the original financial statements of the company, taking into account, in particular, the economic values ​​included in the balance sheet and financial results. When calculating the ratios, it is important to take into account the significant difference between the balance sheet, which illustrates the financial condition of the organization at the date of preparation, and the statement of financial results, which represents data for the period preceding the balance sheet date. When constructing indicators of coefficient analysis, consisting of the amounts coming from both of these documents, one should take into account the value of profits and losses. The arithmetic mean of the values ​​of balance indicators is also taken into account.

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

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

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

Study of cash flows when using ratios

To conduct a coefficient analysis of an enterprise, the following coefficients for the study of cash flows are used:

  • solvency indicator K1

K1 \u003d (DSn + DSp) / DSi,

where DSN - funds at the beginning;

DSP - funds received;

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

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

  • solvency ratio K2

K2 \u003d DSp / DSi,

where DSP - funds received;

DSi - funds that have been spent.

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

  • self-financing interval

I \u003d (DS + KFV-DZ) / Rds,

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

DZ - the average value of receivables for the period;

DS - cash;

Rds - average daily cash flow.

This coefficient, when conducting a coefficient analysis of cash flows, shows whether the company has the opportunity to carry out its activities without interruption with the help of monetary resources received for the sale of products.

  • Beaver coefficient:

Kb \u003d (PE + Am) / (DO + KO),

where Chp - the amount of net profit;

Am - depreciation amount;

Before - obligations of the long-term period;

KO - obligations of the short-term period.

This ratio characterizes the solvency of the company. It can be calculated by cash flow. The standard is in the range from 0.4 to 0.45.

  • cash adequacy indicator:

Kd \u003d DS / OP,

where DS - cash on the date;

OP- obligations for repayment.

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

  • revenue quality ratio:

Kv \u003d DS / V

It characterizes the share of cash in the company's revenue structure. With a high value of the coefficient, we can say that the company is financially stable.

  • net cash flow sufficiency indicator K1:

K1 \u003d DPTd / (ZK + Z + D),

where DPTd - net cash flow for current activities;

ZK - borrowed capital;

З - stocks;

D - dividends.

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

  • cash flow efficiency ratio K2

K2 \u003d DPTd / DPO,

where DPO is the outflow of cash flows.

  • profitability indicator of cash inflow K3

K3 \u003d CHP / NPV * 100,

where PE - net profit;

NPV - net cash flow for the period

The coefficient method of cash flow analysis allows the company to assess the effectiveness of the use of cash and finances of the company.

Liquidity research using ratios

In the coefficient analysis of liquidity, it is studied in two aspects:

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

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

  • Current liquidity indicator Ktl:

Ktl \u003d OA / KO,

where OA - the amount of current assets, t. R.;

KO - obligations of the short-term period, t.

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

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

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

where Z - reserves;

DZ - receivable;

Ds - cash;

POA - other current assets;

TO - current liabilities

The rational value of this indicator should be within the established range. An index below 1.2 indicates a threat to the company's ability to meet its current obligations, which can directly affect the efficiency of the company's business operations. An index above 2.0 indicates an enterprise surplus, i.e. poor management.

  • Quick liquidity indicator

Kbl \u003d (KDZ + FV + DS) / TO,

where KDZ is a short-term receivable, i.e.

PV - financial investments, t.

DS - cash, t.

TO - current liabilities, t.

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

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

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

Debt Analysis Using Ratios

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

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

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

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

  • Total Debt Ratio Kob:

Kob \u003d O / A,

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

A is the company's assets.

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

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

  • Long-term debt ratio Kdz

Kdz \u003d DO / SK,

where TO - obligations of the long-term period;

SC - equity.

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

  • Equity debt ratio:

Kdss = OO / SK,

where OO - general obligations;

SC - equity.

This indicator informs about the level of indebtedness of the company's equity. And at the same time, about the ratio of borrowed capital to equity as a source of financing for the enterprise. It is assumed that the value of this indicator should not exceed 1.0 for large and medium enterprises and 3.0 for small enterprises.

  • Debt coverage ratio based on net financial result Кп:

Kp \u003d CFR / (KR + P),

KP - capital installments;

P - percentage

This ratio determines how many times the net financial result covers the maintenance of principal payments and interest. In an enterprise with the correct financial situation, this ratio should be greater than 1.0.

  • Debt coverage ratio for servicing EBIT:

Kp \u003d (VFR + P) / (KR + P),

where FVR - gross financial result;

P - interest;

KR - capital installments

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

  • Debt service coverage from cash flow U:

Y \u003d (NFR + A) / (KR + P),

where NFR is the net financial result;

A - depreciation;

KR - capital installments;

P - percentage

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

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

The essence of financial stability

When conducting ratio analysis of financial health, financial soundness is the situation in which the financial system, i.e. financial intermediaries, markets and market infrastructures, is able to withstand economic shocks and sudden adjustments in financial imbalances.

Financial sustainability concerns the study of the indicators of the company's capital and their relationship to each other.

Due to the ratio analysis of financial stability, the likelihood of serious financial distortions in the process of financial intermediation, which can adversely affect the functioning of the real economy, is reduced.

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

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

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

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

Study of financial stability using ratios

Tasks of studying monetary financial stability when conducting a coefficient analysis of the finances of enterprises:

  • assessment of the viability and financial stability of the company, identification of violations and their circumstances;
  • development of tips and ways to increase the financial stability and solvency of the company;
  • efficient deployment of resources and normalization of monetary stability;
  • forecasting possible monetary outcomes and probable monetary sustainability depending on different methods of resource use.

Among the main coefficients are the following.

  • Financial stability coefficient:

Kf \u003d (SK + DK) / P,

where SC is the company's own capital;

DK - obligations of the long-term plan;

P - the company's liabilities.

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

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

Profitability analysis using ratios

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

  • Coverage ratio of losses of previous years by current profit Кп:

KP \u003d TP / U * 100,

where TP - current profit;

Y - loss from previous years.

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

  • In this case, it is also advisable to calculate the accumulated loss coverage ratio with own capital Kn:

Kn \u003d SK / Y * 100,

where SC - equity;

If the ratio does not exceed 100%, the financial position of the enterprise is particularly difficult, since it cannot cover losses from equity.

  • Profitability of sales Rp:

RP - VFR / D * 100,

where VFR - gross financial result;

D - income from sales.

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

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

  • Profitability of sales ROS: ROS = BSF / D * 100,

where NFR is the net financial result;

D - income from sales.

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

Return on assets and equity

  • Return on Assets ROA:

ROA = FR / A * 100,

A - total assets

The coefficient determines what is the amount of profit for each monetary unit involved in the assets of the company. This indicator is considered the best individual indicator of managerial competence in management.

  • Return on equity ROE:

ROE \u003d FR / SK * 100,

where FR - financial result;

SK - equity

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

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

Analysis of business activity using ratios

Ratio analysis of reporting is not presented without an analysis of the company's business activity. Global Asset Turnover Ratio Cob:

Kob \u003d D / A,

where D - income from sales;

A - assets

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

Fixed asset turnover ratio Kos:

Kos \u003d D / OS cf,

where OS cf is the average stock of fixed assets.

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

Working capital turnover ratio Kobob:

Cobob = D / OBS,

where OBs - average current assets

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

Conclusion

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

Ratio financial analysis allows you to determine the financial position of the enterprise by the following ratios:

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

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

№/№ p.p. Coefficient Formula for calculation years 1 2 3 1) Analysis of liquidity indicators 1 Current liquidity Current assets Current liabilities 2.78 1.60 0.75 2 Fixed-term liquidity Current assets - Stocks Current liabilities 1.00 0.82 0.47 3 Absolute liquidity Cash...
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    • Financial sustainability: by what indicators is it assessed? In the process of doing business, it is important to regularly assess the financial condition of the company. Such an analysis makes it possible to understand whether the organization will be able to carry out activities and service its obligations. The analysis procedure is quite complex and multifaceted; it requires the calculation of a large number of .

    Coefficients used for analysis

    To assess the company in terms of its financial stability, various indicators play an important role, which are based on a comparison of the amount of funds owned by the organization with loans. The following coefficients are most often used for such an analysis:

    Calculation of indicators for the new balance sheet 2016

    Indicators that allow you to assess financial stability are calculated on the basis of the data presented in the accounting. Here are formulas that use strings from this form.

    Autonomy coefficient \u003d SC / Total assets \u003d line in accounting.bal. 1300 / line in accounting 1600
    abbreviation SC represents the amount of capital owned by the analyzed organization.

    Financial leverage \u003d ZK / SK \u003d (line in accounting balance 1500 + line in accounting balance 1400) / line in balance. 1300
    in the formula, the abbreviation ZK means funds that need to be returned to various kinds of creditors in the future. These are not only loans, but also debts to suppliers.

    Security with own funds = (Equity funds - Non-current assets) / Current assets = (line in accounting balance 1300 - line in balance 1100) / line in accounting balance. 1200

    Investment coverage = Equity working capital / Equity = (line in accounting balance 1300 - line in accounting balance 1100) / line in balance. 1300

    Mobility of capital \u003d Value of working capital / SC \u003d (line in accounting balance 1300 + line in accounting balance 1400 - line in accounting balance 1100) / line in accounting balance 1100 1300

    Mobility of working capital \u003d (Cash + Financial investments) / Working capital \u003d (line in accounting balance 1240 + line in accounting balance 1250) / line in accounting balance. 1200

    Life on stock = Working capital / Inventory = (line in accounting balance 1300 + line in accounting balance 1400 - line in accounting balance 1100) / line in accounting balance 1100 1210

    Short-term debt ratio \u003d Short-term debt / Total debt \u003d line in accounting balance. 1500 / (line in bal. 1400 + line in accounting bal. 1500)

    Examples of indicator calculations

    Suppose that the balance sheet of Vympel LLC for 2015 looks like this (images are clickable):

    Using the presented data, as well as the above formulas, we calculate the financial stability indicators that allow us to analyze:

    1. Autonomy coefficient = 389 / 2954 = 0.13
    2. Leverage = (2553 + 12) / 389 = 6.59
    3. Endowment with own funds = (389 - 1045) / 1909 = -0.34
    4. Investment coverage = (389 - 1045) / 389 = -1.69
    5. Capital mobility = (389 + 12 - 1045) / 389 = -1.66
    6. Mobility of working capital = (0+1123) / 1909 = 0.59
    7. life on stock = (389 + 12 - 1045) / 293 = -2.20
    8. Short-term debt ratio = 2553 / (12+2553) = 0.995

    It is important to understand that the indicators presented are not usually considered for one year. When calculating them in dynamics (that is, annually), one can judge the effectiveness of the policy being pursued, develop new measures for financial recovery that are relevant at the moment.

    Analysis of the financial condition on the example of OJSC "Avtovaz"

    Using the data contained in the balance sheet, as of 2012 and 2013, financial stability ratios were calculated. The result of calculations is presented in the table.

    CoefficientValue 12/31/2012Value 12/31/2013Coefficient changeStandard value
    Autonomy coefficient0.23 0.17 -0.06 Over 0.4
    financial leverage3.4 4.77 +1.37 Not more than 1.5
    Security with own funds-1.29 -1.73 -0.44 Not less than 0.1
    Investment coverage0.76 0.7 -0.06 Not less than 0.7
    Capital mobility-1.92 -3.02 -1.1 Over 0.15
    Mobility of working capital0.17 0.07 -0.1 -
    lifespan-3.14 -3.16 -0.02 More than 0.5
    Short-term debt ratio0.32 0.37 +0.05 -

    Based on the analysis of the results obtained during the calculations, the following can be noted:

    1. The autonomy coefficient is unsatisfactory, that is, the company is too dependent on its creditors.
    2. Too high value of financial leverage confirms the high degree of dependence of the enterprise.
    3. The negative value of the index of provision with own funds makes it possible to judge that the amount of equity capital is too low.
    4. The deterioration in the value of the investment coverage indicator indicates a decrease in the sustainability of funding sources.
    5. The capital mobility index is below zero. This means that the risk of insolvency is too high. At the same time, the value of the indicator deteriorates.
    6. Too low value of the stocks availability indicator allows to judge unsatisfactory financial stability, which decreases over time.

    A selection of financial analysis reports

    Company nameReport dateAnalysis featuresDownload link
    MTS OJSC06.06.2014 Analysis of the financial condition was performed for the period from 01/01/2011 to 12/31/2013 (3 years).Can be downloaded on this page.
    JSC "Arsenal"01.01.2015 A scoring of financial stability was carried out.
    JSC "Megafon"01.01.2012 Analysis as of 31.12.2011Financial analysis in .pdf format
    JSC "Prom-West"01.05.2014 Analysis for 3 years.

    Thus, the indicators of the company's financial stability are calculated on the basis of the balance sheet data. The analysis of such coefficients allows not only to identify problems in the organization's activities, but also to develop advice on improving the enterprise.

    Video lecture

    A part of the course devoted to business diagnostics and the search for reserves to increase the return on it is given below in a video lecture on the analysis of the state of working capital of an enterprise.