Introduction

Financial analysis is a method of studying the financial condition of an enterprise, the processes of formation and use of financial resources for its operational and investment activities. The purpose of financial analysis is to identify the “pain points” of the financial mechanism of an enterprise, to predict possible developments of events based on observed trends, to make the necessary management decisions to reduce, prevent or eliminate the negative impact of the relationship between the economic results of production and economic activities and the costs of its implementation. The result of financial analysis is an assessment of the financial well-being of the enterprise, the state of its property, assets and liabilities of the balance sheet, the rate of turnover of all capital and its active parts, and the profitability of the funds used.

Analysis of the financial condition allows an enterprise to survive in conditions of fierce competition, as well as organize profitable financial and economic activities and, as a result, increase its market value. The information obtained as a result of the analysis is necessary for the manager to develop adequate management decisions to reduce risk and increase the profitability of the financial and economic activities of the enterprise, for the investor to decide on the feasibility of investing, for banks to determine lending conditions.

The purpose of this work is to study methods of financial analysis as tools for making management decisions and developing practical recommendations on this basis.

The objectives of the work are to determine:

property potential of the enterprise;

optimal structure of the enterprise's assets;

structure of the enterprise's sources of funds;

solvency;

turnover indicators;

financial stability;

profitability and financial results of the enterprise.

The object of the study is the closed joint-stock company "Stroykomplekt". The subject of the study is various methods for analyzing the financial activities of enterprises. The study period covers one calendar year.

In the process of preparing this work, materials from the annual financial statements of JSC "Stroykomplekt" were used: balance sheet - form No. 1 (Appendix 1), profit and loss statement - form No. 2 (Appendix 2), as well as additional data (Appendix 3).

When performing this work, legislative and regulatory documents, literary and reference sources were used.

Theory of financial analysis

The essence, purpose and objectives of financial analysis

Financial analysis is a part of economic analysis, which is a system of certain knowledge associated with the study of the financial position of an organization and its financial results, which are formed under the influence of objective and subjective factors, based on financial (accounting) reporting data. Financial analysis is the process of studying the financial condition and main results of the financial activities of an organization in order to identify reserves for increasing its market value and ensuring effective development. Dontsova L.V., Nikiforova N.A. Analysis of financial statements: textbook. - 3rd ed., revised. and additional - M.: Publishing house "Delo and Service", 2005. - 6 p.

Financial analysis is the process of understanding the essence of the financial mechanism of functioning of business entities in order to evaluate and justify decisions of an investment and financial nature. Savitskaya G.V. Analysis of the economic activities of an enterprise: Textbook. - 5th ed., revised. and additional - M.: INFRA-M, 2009. - 14 p.

Financial analysis is an analysis of financial indicators that reflect the financial performance and financial condition of the organization. Financial indicators are largely contained in the financial (accounting) statements of organizations, therefore, financial analysis is usually understood as “external” financial analysis based on public financial statements, which narrows its scope, since not all financial information of an organization is reflected in the statements. The so-called “internal” financial analysis, which uses as an information database not only public reporting, but also internal reporting, as well as accounting, has a much greater opportunity to penetrate into the secrets of the economic activity of an organization. Such financial analysis for the financial manager and chief accountant of the organization acts as part of management analysis, the purpose of which is to make informed management decisions on problems of economic activity, and for the auditor - as an information base broader than reporting, which allows making an informed conclusion about the degree of reliability financial (accounting) statements and the correctness of reflection of real economic activities in the financial statements. Sheremet A.D., Negashev E.V. Methodology for financial analysis of the activities of commercial organizations. - 2nd ed., revised. and additional - M.: INFRA-M, 2008. - 5 p.

The purpose of financial analysis is to assess the financial condition and identify opportunities to improve the efficiency of a business entity using rational financial policies.

The financial condition of an enterprise is characterized by the structure of funds (assets) and the nature of the sources of their formation (equity and borrowed capital, i.e. liabilities). This information is provided in the balance sheet (Form No. 1) and other forms of financial reporting.

The main factors determining the financial condition are, firstly, the implementation of the financial plan and, if necessary, an increase in own working capital at the expense of profits and, secondly, the turnover of working capital (assets). The criterion indicator in which the financial condition is manifested is the solvency of the organization. Since the implementation of the financial plan primarily depends on the results of production and economic activities as a whole, we can say that the financial condition is determined by the entire set of economic factors. Therefore, along with the balance sheet, the profit and loss statement and other forms of reporting are also used to analyze the financial condition.

The main tasks of analyzing the financial condition are to determine its well-being, study the reasons for improvement or deterioration over the period, and prepare recommendations for increasing the financial stability and solvency of the enterprise. These problems are solved by studying the dynamics of absolute and relative financial indicators.

The objectives of financial analysis are:

assessment of the current and future financial condition of the enterprise;

assessment of possible and appropriate rates of development of the enterprise from the standpoint of their financial support;

identifying available sources of funds and assessing the possibilities and feasibility of their mobilization;

objective assessment of the use of financial resources at the enterprise;

identification of intra-economic reserves for strengthening the financial position;

improving relations between enterprises and external financial, credit, and control authorities;

forecast of the enterprise's position on the capital market.

The financial condition of an enterprise is characterized by a set of indicators that reflect the process of formation and use of its financial resources. The financial condition is determined by the degree of implementation of the financial plan and the extent of replenishment of own funds from profits and other sources.

The objectives of the study are achieved by solving a number of analytical problems:

preliminary review of financial statements;

characteristics of the enterprise's property: non-current and current assets;

assessment of financial stability;

characteristics of sources of funds: own and borrowed;

profit and profitability analysis;

development of measures to improve the financial and economic activities of the enterprise.

These tasks express the specific goals of the analysis, taking into account the organizational, technical and methodological capabilities of its implementation. The main factors, ultimately, are the volume and quality of analytical information.

The financial analysis of the enterprise must meet certain requirements and be:

reliable and objective - based on accurate verified information and indicators;

complex and systemic, i.e. any phenomenon must be studied in conjunction with other interrelated or similar phenomena;

promising - all phenomena must be assessed for the future so that it is possible to predict what impact the implementation of advanced achievements in the field of technology, technology, production organization and the use of accumulated experience, including competitors, will have on them;

prompt and timely, which requires constant and daily monitoring of the enterprise’s operation, rapid data processing and implementation of necessary measures;

concrete - the results of the analysis must be transformed into specific and real ones for the implementation of measures to improve all aspects of the enterprise's activities.

Internal analysis is carried out by enterprise services, and its results are used for planning, monitoring and forecasting the financial condition of the enterprise. Its goal is to establish a systematic flow of funds and allocate own and borrowed funds in such a way as to ensure the normal functioning of the enterprise and obtain maximum profit.

External analysis is carried out by investors, suppliers of material and financial resources, and regulatory authorities based on published reports. Its goal is to establish the opportunity to invest funds profitably in order to ensure maximum profit and eliminate the risk of loss.

Analysis of financial condition includes the following stages:

1. Gathering the necessary information.

2. Assessing the reliability of information.

3. Information processing (compilation of analytical tables and aggregated reporting forms).

4. Calculation of indicators of the structure of financial statements (vertical analysis).

5. Calculation of indicators of changes in items of financial statements (horizontal analysis).

6. Calculation of financial ratios for the main aspects of financial activity or intermediate financial aspects (financial stability, solvency, business activity, profitability).

7. Comparative analysis of the values ​​of financial ratios with standards (generally accepted and industry average).

8. Analysis of changes in financial ratios (identifying trends of deterioration or improvement).

9. Calculation and evaluation of integral financial ratios.

10. Preparation of an opinion on the financial condition of the company based on the interpretation of the processed data.

In our country, two main approaches have now emerged. According to the first, financial analysis is understood in a broad aspect and covers all sections of analytical work included in the financial management system, i.e. related to financial management of an economic entity in the context of the environment, including the capital market (see, for example, [Kovalev, 1997]). The second approach limits its scope to the analysis of financial statements [Sheremet, Negashev]. Kovalev V.V., Kovalev Vit.V. Balance analysis, or how to understand balance: educational and practical guide. - 2nd ed., revised. And additional - Moscow: Prospekt, 2011. - 306 p. Let us immediately note that reducing financial analysis to reporting analysis is hardly legal; in this sense, the Western approach seems quite logical, justified and promising - reporting analysis is only one of the sections of financial management. In addition, financial data is generated not only in the accounting system.

In turn, the authors put forward various methods for analyzing financial condition. So, V.V. Kovalev offers a methodology for in-depth analysis Kovalev V.V. Financial analysis: methods and procedures. - M.: Finance and Statistics, 2002. - 290 p. :

1. Preliminary review of the economic and financial situation of the business entity:

1.1 Characteristics of the general direction of financial and economic activities.

1.2 Identification of “sick” reporting items.

2. Assessment and analysis of the economic potential of a business entity:

2.1 Assessment of property status:

2.1.1 Construction of an analytical balance;

2.1.2 Vertical balance sheet analysis;

2.1.3 Horizontal balance sheet analysis;

2.1.4 Analysis of qualitative changes in property status.

2.2 Assessment of financial potential:

2.2.1 Assessment of liquidity and solvency;

2.2.2 Assessment of financial stability.

3. Assessment and analysis of the effectiveness of the financial and economic activities of an economic entity:

3.1 Assessing the effectiveness of current activities (business activity);

3.2 Profit and profitability analysis;

3.3 Assessment of the situation on the securities market.

Sheremet A.D. and Negashev E.V. divide the analysis into the following blocks Sheremet A.D., Negashev E.V. Methodology for financial analysis of the activities of commercial organizations. - 2nd ed., revised. and additional - M.: INFRA-M, 2008. - 120 p. :

1. Structural analysis of assets and liabilities;

2. Analysis of financial stability, characterized by a satisfactory and unsatisfactory balance sheet structure and reflecting the financial results of economic activity;

3. Analysis of the liquidity of an enterprise, which is understood as the degree to which the obligations of the enterprise are covered by its assets, the period of transformation of which into cash (liquidity of assets) corresponds to the period of repayment of obligations;

4. Analysis of solvency, i.e. the ability of the enterprise to timely satisfy the payment requirements of suppliers, repay loans and borrowings (creditworthiness) and other payments.

V.V. Bocharov formulates the following methodology for in-depth financial analysis. Bocharov V.V. The financial analysis. Short course. 2nd ed. - St. Petersburg: Peter, 2009. - 4 p. :

1. General assessment of the financial condition of the enterprise.

2. Assessment of financial stability.

3. Cash flow analysis.

4. Analysis of business and market activity of the enterprise.

5. Analysis of financial results and profitability of the enterprise.

6. Financial analysis of the effectiveness of investment projects.

In modern economic conditions, the activities of each economic entity are 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 the help of which you can objectively assess the internal and external relations of the analyzed object, and then make informed decisions based on its results.

“Financial analysis,” writes B.S. Utibaev, - as a special area of ​​scientific knowledge based on a system of indicators, comprehensively studies the availability, placement and use of financial resources of an enterprise, its solvency, creditworthiness, i.e. financial competitiveness, the ability to fulfill its 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 emerging financial problems, and the value of knowledge of its methodological foundations allows you to systematically study, evaluate 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 accumulating, transforming and using information of a financial nature, with the purpose of:

• - assess the current and future 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 and feasibility of their mobilization;
• - predict the position of the enterprise in the capital market.

Financial analysis based on financial statements is called the classical 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, obtaining an answer to the question of what its effectiveness is, what are the most important ways to improve and strengthen the financial stability of the enterprise, and increase its 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 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 of equity capital and liabilities, their condition 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 indicators of enterprise profitability;
• - short-term forecasting of the market stability of the enterprise and development of its financial strategy.

From these tasks it is clear 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 business financial statements use it to make decisions to optimize their interests.

It is important for owners to establish the efficiency of using assets, equity and debt capital of the enterprise, their ability to generate the maximum amount of income (profit). Personnel are interested in information about the profitability and stability of the enterprise, as an employer, in order to have guaranteed payment for their labor and a workplace.

Lending banks are interested in information that allows them to determine the feasibility of providing loans, the conditions for their issuance, and assess the risk of repayment of loans and payment of interest.

Investors (including potential owners) are interested in assessing profitability and risk, ongoing and projected investments, and the ability of the enterprise to generate profits and pay dividends.

Suppliers and contractors are interested in the company paying its obligations on time for goods supplied, services rendered and work performed for it, i.e. financial stability as a factor of partner stability.

Buyers and clients are interested in information that confirms the reliability of existing 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 to declare a debtor bankrupt due to failure to fulfill monetary obligations to budgets of all levels.

We can firmly say that the quality of decisions made depends entirely on the quality of the analytical basis for the decision. Depending on the task at hand, financial analysis can be used in different ways.

This is how the famous American expert in the field of financial analysis, L.A., writes about it. Bernstein: “It can be used as a screening tool when choosing an investment direction or potential merger options. It can also act as a forecasting tool for future financial conditions and results. Financial analysis is also applicable to identify problems in managing production activities. It can serve to evaluate the performance of company management. And most importantly, financial analysis allows you to rely less on guesswork, premonitions and intuition, and reduce the inevitable uncertainty that is present in any decision-making process. Financial analysis does not eliminate the need for business sense, but it does provide a sound 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 an 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 business risk, in particular the possibility of repaying obligations to third parties
• 3) capital adequacy for current activities and long-term investments
• 4) the need for additional sources of financing
• 5) ability to increase capital
• 6) rationality of raising borrowed funds
• 7) validity of the policy for the distribution and use of profits
• 8) the feasibility of choosing an investment and others.

In a broad sense, financial analysis can be used as a tool for justifying short-term and long-term economic decisions, the feasibility of investments, as a means of assessing the skill and quality of management, and 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 operating conditions of enterprises. In particular, its target orientation changes; the control function recedes into the background and the main emphasis is placed on the transition to justifying 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 auditing. Almost all users of an enterprise's financial statements use financial analysis methods to make decisions.

It is based on the calculation of absolute and relative indicators characterizing various aspects of the enterprise’s activities 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 obtained.

Thus, the main goal of financial analysis is to obtain a small number of key (the 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, and in settlements with debtors and creditors. At the same time, the analyst and manager (manager) may be interested in both the current financial condition of the enterprise and the forecast for the near or distant future, that is, the expected parameters of the financial condition. .

The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of carrying out this analysis. The main factors are the volume and quality of the source information. 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.

The ultimate goal of any business 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; the implementation of which in practice would ensure the achievement of this goal.

All decisions made can be reduced to three main areas:

• - decision on investment of resources;
• - operations carried out using these resources;
• - determination of the structure of the financial business.

"Timely and... high-quality support for these areas of financial decisions, writes 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 (equity capital and obligations, i.e. liabilities).”

A.I. Kovalev and V.P. Privalov interprets it as follows: “Financial condition is a set of indicators that reflect the availability, placement and use of financial resources.”

Professor Balabanov I.T. writes: “Financial condition is a comprehensive assessment of its health and vitality, characterized by a number of indicators.”

Ultimately, the financial position of an enterprise should indicate the reliability, stability and prospects of the enterprise in a competitive market economy that does not spare the weak and unviable.

In order to make management decisions in the field of production, sales, 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 initial raw information.

Financial analysis is the prerogative of the highest level of management structures of an enterprise, capable of influencing the formation of financial resources and cash flows. The effectiveness or ineffectiveness of private management decisions related to determining the price of a product, the size of a batch of purchases of raw materials or supplies of products, the replacement of equipment or technology must be assessed from the point of view of the overall success of the company, the nature of its economic growth and the growth of overall financial efficiency.

Note that failures in using financial ratios for the purposes of making economic decisions are explained to a large extent by the fact that novice analysts use data that is incomparable from the point of view of accounting methodology for analysis and then make inadequate conclusions based on them.

The second condition, which follows from the first, is knowledge of financial analysis methods. At the same time, qualitative judgments when resolving 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 at hand, which 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 goals of the analysis. To ensure quality judgments, it is necessary to assess the reliability of available information, as well as the degree of uncertainty and risk.

The third condition is the presence of an action program related to the definition of specific goals for performing analytical work. For example, a final analysis of liquidity ratios based on reporting data, carried out for the purpose of drawing up an explanatory note, will differ from an in-depth analysis of solvency aimed at forecasting future cash flows.

The fourth condition is determined by understanding the limitations inherent in the analytical tools used and their impact on the reliability of the results of financial analysis. Thus, a key point in the decision-making process about the feasibility of new investments is determining the cost of capital.

The theory and practice of financial analysis has a diverse set of methods for calculating this investment evaluation criterion, differing both in methodological approaches to determining the value of individual components of capital and in the information base. The professionalism of an analyst is to, having mastered various methods for 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 compare costs and results determine the fifth condition regarding minimizing labor costs and performing analytical work while achieving satisfactory accuracy of calculation results.

The sixth prerequisite for effective financial analysis is the interest of the enterprise management in its results. The quality of financial analysis depends on the competence of the person making management decisions in the field of financial policy. The task of 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 of mastering the methods of financial analysis themselves (properly trained personnel are required to perform professional analysis), but rather of using the results of the analysis.

In an effort to resolve specific issues and obtain a qualified assessment of the financial situation, business managers are increasingly beginning to resort to 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 about the adequacy 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 allow us to identify vulnerabilities that require special attention. It is often enough to discover these places in order to develop measures to eliminate them.

All this once again indicates that financial analysis in modern conditions is becoming an element of management.

Financial analysis is a way of accumulating, transforming and using financial information with the aim of:

assess the current and future 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 mobilizing them;

predict the position of the enterprise in the capital market.

The main goal of financial analysis is to obtain a small number of key (the 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 both in the current financial state of the enterprise and its projection for the near or longer term, i.e. expected parameters of financial condition.

But it is not only time boundaries that 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, information users interested in the activities of the enterprise.

The first group of users includes owners of enterprise funds, lenders (banks, etc.), suppliers, clients (buyers), tax authorities, enterprise personnel and management. Each subject of analysis studies information based on their interests. Thus, 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 enterprise administration; to 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 an enterprise can deepen the analysis of reporting using production accounting data as part of 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, by agreement, protect the interests of the first group of users of the statements. These are audit firms, consultants, stock exchanges, lawyers, the press, associations, and trade unions.

The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. 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. The main factor ultimately is the volume and quality of the source information. 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 areas of production, sales, finance, investment and innovation, management needs constant business awareness on relevant issues, which is the result of the selection, analysis, evaluation and concentration of raw information. An analytical reading of the source data is also necessary based on the purposes 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, 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 (methodology of analysis) of financial reports. Among them there are 6 main methods:

horizontal (time) analysis- comparison of each reporting item with the previous period;

vertical (structural) analysis- determination of the structure of the final financial indicators, identifying the impact of each reporting item on the result as a whole;

trend analysis- comparison of each reporting item with a number of previous periods and determination of 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 a trend, possible values ​​of indicators in the future are formed, and therefore, a promising forecast analysis is carried out;

analysis of relative indicators (coefficients)- calculating the relationships between individual report items or items of different reporting forms, determining the relationships between indicators;

comparative (spatial) analysis- this is both an intra-farm analysis of summary reporting indicators for individual indicators of the enterprise, branches, divisions, workshops, and an inter-farm analysis of the indicators of a given enterprise in comparison with the indicators of competitors, with industry average and average economic data;

factor analysis- analysis of the influence of individual factors (reasons) on the performance indicator using deterministic or stochastic research techniques. Moreover, factor analysis can be either direct (analysis itself), when the analysis is split into its component parts, or reverse, when a balance of deviations is compiled and, at the generalization stage, all identified deviations are summed up, the actual indicator from the base one due to individual factors.

The financial analysis methodology consists of three interconnected blocks:

• 1. analysis of 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 based on financial statements is called the classical method of analysis.

Financial analysis is part of a general, complete analysis of economic activity, which consists of two closely interrelated sections: financial analysis and production management analysis.

The division of analysis into financial and managerial is due to the established practice of dividing the enterprise-wide accounting system into financial accounting and management accounting. This division of analysis is somewhat arbitrary, because internal analysis can be considered a continuation of external analysis and vice versa. In the interest of business, both types of analysis feed each other with information.

Features of external financial analysis are:

multiplicity of subjects of analysis, users of information about the activities of the enterprise;

diversity of goals and interests of the subjects of analysis;

availability of standard analysis techniques, accounting and reporting standards;

orientation of the analysis only to 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 enterprise’s activities.

Financial analysis, based only on financial statements, takes on the character of 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 reveal all the secrets of success or failure in the activities of the enterprise.

analysis of absolute profit indicators;

analysis of relative profitability indicators;

analysis of the financial condition, market stability, balance sheet liquidity, solvency of the enterprise;

analysis of the efficiency of use of borrowed capital;

economic diagnostics of the financial condition of the enterprise and rating assessment of issuers.

On-farm financial analysis uses data on 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 using data from management production accounting, in other words, it is possible to conduct a comprehensive economic analysis and evaluate the efficiency of economic activity. Issues of financial and management analysis are interconnected when substantiating business plans, when monitoring their implementation, in the marketing system, i.e. in a market-oriented production and sales management system for products, works and services.

Features of management analysis are:

orientation of the analysis results to your management;

use of all sources of information for analysis;

lack of regulation of external analysis;

comprehensiveness of the analysis, study of all aspects of the enterprise’s activities;

integration of accounting, analysis, planning and decision making;

maximum secrecy of analysis results in order to maintain trade secrets.

The introduction of a new chart of accounts and bringing the forms of financial statements into greater compliance with the requirements of international standards necessitates the use of a new methodology for financial analysis that meets the conditions of a market economy. This technique is needed to make an informed choice of a business partner, determine the degree of financial stability of the enterprise, evaluate business activity and the effectiveness of business activities.

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 reporting of an enterprise in a market economy is based on a 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. Certain user groups, such as management and auditors, have the opportunity to attract 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 enterprise's balance sheet (Form No. 1). Its importance is so great that financial analysis is often called balance sheet analysis. The source of data for analyzing financial results is the profit and loss statement (Form No. 2). The source of additional information for each of the blocks of financial analysis are the explanations to the balance sheet and the profit and loss statement, namely: the report on the flow of funds and other funds (Form No. 3), the cash flow report (Form No. 4), appendix to balance sheet (Form No. 5).

Why are such information sources convenient for enterprises?

First of all, by the fact that without preparing data for analysis based on the balance sheet of the enterprise (Form No. 1) and (Form No. 2), it is possible to make a comparative express analysis of the enterprise’s reporting indicators for previous periods.

Secondly: with the advent of special automated accounting programs for analyzing the financial condition of an enterprise, it is convenient, immediately after drawing up reporting forms, without leaving the program, to carry out a simple express analysis of the enterprise based on ready-made accounting reporting forms using the built-in financial analysis unit.

The detailing of the procedural side of the financial condition analysis methodology 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 financial condition;

detailed analysis of financial condition.

1. Goals and objectives of financial analysis

Financial analysis is part of the general analysis, which consists of two interrelated sections: financial and management analysis. The division of analysis into financial and managerial is due to the division of the accounting system that has developed in practice. However, such a division is conditional.

Financial analysis is divided into external and internal. External financial analysis is based on published reports, and internal analysis is based on the entire system of available information about the activities of the enterprise. From this point of view, external financial analysis is an integral part of internal analysis, the scope and capabilities of which are wider.

The subjects of external analysis are business owners, investors, creditors, administration, government agencies, etc.

The subjects of internal financial analysis are the enterprise administration, owners, auditors, and consultants. The main difference between internal and external financial analysis lies in the variety of goals and objectives solved by various subjects of analysis. The process of conducting financial analysis depends on the goal. It can be used for preliminary verification when choosing an investment direction, when considering options for merging enterprises, when assessing the activities of enterprise management, when forecasting financial results, when justifying and issuing loans, when identifying problems in managing production activities, etc.

The variety of purposes of financial analysis determines the specifics of the tasks solved by the most important users of information.

Financial analysis is carried out, first of all, by the administration of the enterprise, which is engaged in current activities, is responsible for long-term development prospects, production efficiency, profitability of the enterprise for short- and long-term periods, efficiency in the use of capital, labor and other types of resources. The administration's interest in the financial condition affects all areas of the enterprise's activities.

During the analysis, the administration uses all reliable information, all means and methods to monitor the activities of the enterprise. One such method is financial analysis. Financial analysis covers changes in trends in key accounting indicators and key dependencies. It is based on continuous monitoring of significant relationships and timely detection of deficiencies arising as a result of ongoing changes.

When conducting financial analysis, the administration sets the following goals:

Assess the influence of factors on financial performance and the efficiency of use of assets;

Exercises control over the movement of financial flows, compliance with standards for the expenditure of financial and material resources, and the appropriateness of expenses.

2. The role of financial analysis in making management decisions

In a planned economy and state ownership of the means of production, financial analysis was a section of the general analysis of economic activity. Production activity was considered as the main activity, the main attention was paid to production analysis and the search for reserves for increasing the efficiency of use of production resources. The development of financial analysis was not given enough attention, since there was no special need for it. Many enterprises were planned to be unprofitable, and losses were covered from the budget. The external environment had little impact on the activities of enterprises.

Assessing potential bankruptcy.

Thus, financial analysis, as part of economic analysis, represents a system of certain knowledge associated with the study of the financial position of an enterprise and financial results that develop under the influence of objective and subjective factors, based on accounting (financial) reporting data.

3. The relationship between financial and management analysis. Financial analysis methods

Financial analysis, using specific methods and techniques, allows you to determine parameters that make it possible to objectively assess the financial condition of an enterprise. The results of the analysis allow interested parties and enterprises to make management decisions based on an assessment of the current financial situation, the activities of the enterprise in previous years and the projection of the financial condition for the future, i.e. expected parameters of financial position.

Among the main methods of financial analysis are the following:

Preliminary reading of accounting (financial) statements;

Horizontal analysis;

Vertical analysis;

Trend analysis;

Method of financial ratios;

Factor analysis;

Comparative analysis;

Cash flow calculation;

Specific analysis.

Preliminary familiarization with the enterprise’s reporting allows you to study the absolute values, draw conclusions about the main sources of raising funds, the directions of their investment, the main sources of profit received, the accounting methods used and changes in them, the organizational structure of the enterprise, etc. The information obtained during the preliminary reading gives a general idea of ​​the financial condition of the enterprise, but it is not enough for making management decisions. In horizontal (time) analysis, absolute indicators are supplemented by relative, usually rates of growth or decline. Based on horizontal analysis, an assessment is made of changes in the main indicators of accounting (financial) statements.

Most often, horizontal analysis is used in the study of balance. The disadvantage of the method is the incomparability of data in conditions of inflation. This drawback can be eliminated by recalculating the data. Vertical (structural) analysis gives an idea of ​​the structure of the final financial indicators, identifying the impact of each position on the result. This method of financial analysis is used to study the structure of the balance sheet by calculating the share of individual balance sheet items in the overall total or in the context of the main groups of items. An important point of vertical analysis is the presentation of the structure of indicators in dynamics, which allows you to track and predict structural changes in the composition of assets and liabilities of the balance sheet.

The use of relative indicators smooths out inflationary processes. Trend analysis is a type of horizontal analysis; it is used in cases where comparisons of indicators are made over more than three years. However, long-term comparisons are usually made using indices. Each reporting item is compared with a number of previous periods to determine the trend. Trend is the main tendency of the indicator. Calculating a series of index numbers requires choosing a base year for all indicators. Since the base year will be the basis for all comparisons, it is best to select the year that is most normal or typical in terms of business conditions.

When using index numbers, percentage changes can only be interpreted in comparison with the base year. This type of analysis has the nature of a forward-looking forecast analysis and is used in cases where it is necessary to make a forecast for individual financial indicators or for the financial condition of the enterprise as a whole. The method of financial ratios is based on the existence of certain relationships between individual reporting items. The coefficients make it possible to determine the range of information that is important for users of information about the financial condition of the enterprise from the point of view of decision-making. Ratios make it possible to find out the main symptoms of changes in the financial situation and determine trends in its change.

With the correct coefficients, you can identify areas that require further study. The big advantage of the coefficients is that they smooth out the negative impact of inflation, which significantly distorts the absolute indicators of financial statements, thereby making it difficult to compare them over time. Comparative analysis is used to conduct intra- and inter-farm comparisons for individual financial indicators. Its purpose is to identify similarities and differences between homogeneous objects. Using comparison, changes in the level of economic indicators are established, trends and patterns of their development are studied, the influence of individual factors is measured, calculations are made for decision-making, reserves and development prospects are identified.

Factor analysis is used to study and measure the impact of factors on the value of the performance indicator. Factor analysis can be direct, when an effective indicator is divided into its component parts, and backward, when individual elements are combined into a common effective indicator. Factor analysis can be single-stage, when factors of only one level are used for analysis, and multi-stage, when factors are detailed into their component elements to study their behavior. Factor analysis can be retrospective, when the reasons for changes in performance indicators for past periods are studied, and prospective, when the behavior of factors and their impact on performance indicators in the future is studied.

Factor analysis can be static, to study the influence of factors on performance indicators on a certain date, and dynamic, when cause-and-effect relationships are studied over time. One of the important tools of financial analysis is cash flow calculation. Presented in the form of an annual financial forecast, it shows how you are expected to receive cash each month and make monthly payments to pay off your debt. This calculation allows us to estimate the peak of the enterprise's need for additional funds and its ability to earn enough cash to pay off short-term debt during the operating cycle. The calculation allows you to determine whether the need for additional funds is long-term or short-term. This is important for seasonal businesses.

Specific methods of analysis include:

Analysis of current investments, which allows you to assess the impact of sales growth on the need for financing and the ability of the enterprise to increase sales;

Sustainable growth analysis, which helps determine the company's ability to expand sales without changing the share of borrowed funds;

Sensitivity analysis, which uses similar scenarios to identify the most vulnerable areas of an enterprise;

An industry factor that takes into account the variability of the cash flows of the borrowing enterprise in comparison with the flow of funds of other enterprises in the same industry.

These methods are of great importance for deepening financial analysis and assessing the growth potential of an enterprise. Specific analysis has become most widespread in foreign accounting and analytical practice of financial analysis. The use of all methods of financial analysis allows you to more accurately assess the financial situation at the enterprise, predict it for the future and make a more informed management decision.

Concept, goals and objectives of financial analysis.

The main stages of financial analysis.

Basic techniques and information support for analyzing the financial condition of an organization.

Analysis of the composition, structure and dynamics of the enterprise's property.

Analysis of the business activity of the enterprise.

Analysis of liquidity and solvency of the enterprise.

Analysis of financial stability.

Goals, objectives and stages of cash flow analysis.

Analysis of the efficiency of using equity and borrowed capital.

1. Concept, goals and objectives of financial analysis.

Financial analysis is a system of methods for studying economic processes about the financial position of an enterprise and the financial results of its activities, which develop under the influence of objective and subjective factors, according to financial statements and some other types of information.

Financial analysis is a set of analytical procedures based on available financial information and intended to assess the state and efficiency of using the economic potential of an enterprise, as well as making management decisions regarding the optimization of its activities.

The main features of financial analysis include:

providing a general description of the property and financial position of the enterprise;

priority of assessments: solvency, financial stability, profitability;

based on publicly available information;

information support for tactical and strategic decisions;

accessibility to analysis results for any user;

the possibility of unifying the composition and content of counting and analytical procedures;

the predominance of the monetary meter in the system of criteria;

high level of reliability of the analysis results.

The purpose of financial analysis is to:

an objective assessment of the financial condition of the enterprise, its solvency, financial stability and business activity;

identifying ways to increase equity, net assets, stock returns and improve the use of borrowed funds;

developing forecasts for growth (decrease) in financial results and reasoned forecasts about the degree of reality of bankruptcy of an enterprise and on this basis - in developing options for informed management decisions in order to improve business efficiency; the content of financial analysis depends on the demand for its results by external and internal users;

requests from users (investors, partners, etc.) for analytical information to assess the real financial condition of the organization;

the expediency of the most complete disclosure of available information about the financial stability of the organization in an effort to make it more “open”;

the need for practice in calculating new indicators for assessing the financial position of business entities;

production and financial necessity in connection with the promotion of goods and services to the domestic and international markets;

the need for additional information about the financial condition of the enterprise to develop optimal management decisions

The objectives of financial analysis are:

justification of operational and strategic plans and programs for strengthening and developing the financial position of the organization;

forecasting the increase in financial flows in the coming future;

optimization of costs for the production and sale of products, works, services;

increase in income, capital, assets and decrease in expenses and overdue liabilities;

identifying ways to improve business efficiency;

searching for untapped opportunities and means to strengthen the financial stability of the organization, its solvency, financial independence and financial viability in order to avoid bankruptcy;

mitigating the impact of associated risks on the return of borrowed capital to investors, banks, and creditors;

using analysis results to develop new business development programs and management decisions