Express analysis of an enterprise example. Express analysis of enterprise reporting. Indicators and purpose of analyzing the financial condition of an enterprise

The purpose of analyzing the financial statements of a third-party company is to assess its creditworthiness, solvency and investment attractiveness. This data is needed to make important management decisions. But everyone has their own method of analysis. Read about the methodology for express analysis of financial statements in this article.

The method of express analysis of financial statements is used in conditions of limited primary information and limited time frames. This is his specialty. Although all financial statements have certain limitations, often only the information contained in Form 1 (balance sheet) and Form 2 (income statement) of financial statements is available.

Let's look at the analysis methodology financial condition organizations using a concrete example. We have at our disposal the annual balance sheet (Table No. 1) and the profit and loss statement (Table No. 2) of the Delta company.

The purpose of analyzing financial reporting indicators is to determine how great the risks of cooperation with a given company are when including it in the group, how useful the financial reporting data can be and what conclusions about the company can be drawn based on the data available in these two forms.

Express analysis of financial statements

Before starting any calculations, let's just look at the reporting items, and visually compare the data of the current period with the past and identify problematic items.

Table. Analysis of financial statements

Section/article	Conclusions
	Increase in numerical indicator	Decrease in number
Non-current assets	Most likely this indicates the acquisition of property or investment in construction. If there has been a significant increase in any of the articles of this section, it is necessary to pay attention to the articles of liabilities in order to establish at what expense (own/borrowed (long-term or short-term)) these capital investments were made.	A decrease can mean both the sale of fixed assets and the accrual of depreciation, that is, physical obsolescence of fixed assets.
If as part of non-current assets There is unfinished construction, it must be taken into account that these assets can only have value if investment in construction continues. If investments are frozen due to the crisis, the real the value of these assets will be significantly lower than the balance sheet.
Let us turn to our example, as we see the section of non-current assets is represented by the item “fixed assets”, over the year the value of the item decreased slightly, based on this we can conclude that most likely the company did not buy new and did not sell old fixed assets, and the decrease occurred in as a result of depreciation on existing fixed assets.
Current assets. Reserves	A large number of inventories and their annual growth may indicate overstocking.	A regular decrease in inventories may indicate both a decrease in business activity, that is, curtailment of activities, and a shortage working capital to purchase the required amount of supplies.
In the second section of the balance sheet, you need to pay attention to such an item as VAT on acquired values. If the amount of tax reflected under this item is large enough and continues to increase, then there is a high probability that the company has some reasons for reducing tax payments (failure to submit VAT for reimbursement from the budget). These reasons may be: unsatisfactory organization of document flow in the company, poor quality tax accounting, purchasing goods (products) at inflated prices or from unreliable suppliers. The tax risks of such a company should be considered high.
Accounts receivable. This balance sheet item is best considered in conjunction with the revenue indicator from Form 2.	If the increase in accounts receivable is associated with an increase in sales, then we can conclude that the growth in the company's revenue was ensured by a change in the company's credit policy - an increase in the period for providing trade credit. If the increase occurs against the backdrop of a decrease in revenue, then we can conclude that despite changes in the credit policy for the better for customers, the company was unable to retain its customers. This indicates an increase in the company's operational risks.	If a decrease in this item occurs against the background of an increase in revenue, then we can conclude that the company’s customers began to pay their bills earlier, that is, there was a reduction in deferment days or part of the goods were paid in advance (and the customers accepted this change in credit policy). If the company's revenue decreased, then the debt of customers decreased accordingly.
Included accounts receivable there may also be advances paid related to the construction or acquisition of fixed assets, that is, such “receivables” in the future will turn into either fixed assets or construction in progress, but not into cash.
Cash.	Both the increase and decrease in the numerical indicator for this article does not allow us to draw any significant conclusions.
Let's look at the second section of our balance sheet. The most significant amount is made up of inventories, their value has increased. Since we cannot say whether this is good or bad, it is necessary to continue further analysis on this article, that is, conduct a vertical analysis and calculate turnover ratio . The value added tax not deducted at the end of the year amounted to more than 17 million rubles, and compared to the previous period, this amount increased, based on this we can conclude that the company has tax risks. Accounts receivable increased amid a decrease in revenue. Further analysis on this article is needed.
Capital and reserves. Authorized capital.	As a rule, a change under this article occurs only if there has been a re-registration of the company associated with an increase/decrease in the authorized capital for any reason (including a change of owner).
Retained earnings (uncovered loss).	At this stage of the analysis, we look at the availability of the amount for this item; if a loss is reflected, then we classify this item as problematic. For a more detailed analysis, the data presented in the balance sheet is not enough.
The company we are analyzing has not changed its authorized capital; The amount of retained earnings has increased, which means that the company's equity capital has also increased.
Credits and loans.	Based on the balance sheet, we can state whether the company has short-term or long-term loans, whether their amount has increased or decreased. There is not enough information at this stage to make any conclusions about the validity of attracting credit resources and their effectiveness.
The short-term borrowings of the company we analyzed increased.
Accounts payable. We analyze by type of debt.	An increase in debt to suppliers may indicate both a delay in payments, that is, a violation by the company of its payment obligations, and the existence of agreements to increase the deferment period as a result of maintaining the volume of purchases, paying on time, and the presence of good relationships. An increase in debt to tax authorities may indicate an increase in the company's tax risk.	A decrease in the creditor's balance may indicate both a more stringent credit policy of suppliers and the company's early fulfillment of its payment obligations. A decrease in tax arrears shows both the timeliness of fulfillment of tax obligations and a lower tax accrual as a result of a decrease in business activity.
Accounts payable The analyzed company grew, mainly due to an increase in debt to suppliers, as well as an increase in tax liabilities. The increase in accounts payable occurred against the backdrop of an increase in the company's reserves. Based on this, we can make a preliminary conclusion that most likely the purchased inventories were purchased with deferred payment and the payment deadline had not arrived at the time of reporting. For a more complete analysis, it is necessary to look at the change in the structure of obligations, that is, to calculate the creditor’s share and analyze turnover. That is, for more substantiated conclusions on the financial condition of the company, we need vertical analysis and ratio analysis.

Balance sheet data also allows a preliminary assessment of the company's solvency at the reporting date. To do this, let’s compare the cost of working capital with the value of short-term liabilities (722426-694696=27730), the resulting result can be called the company’s “margin of safety” in terms of solvency.

Vertical and horizontal analysis of financial statements

When analyzing Form 2, it is better to resort to horizontal and vertical analysis.

Horizontal analysis involves comparing each item with the previous period. Vertical analysis of the financial statements of an enterprise concerns the structure financial indicators identifying the impact of each article on the result.

It is necessary to pay attention to following points: if revenue increased, then the increase cost of goods sold (products) - normal, but if an increase in the cost of goods sold and administrative expenses occurred against the background of a decrease in revenue or its constant - this should alert the analyst, since if this trend continues in the future, the company may have problems with business efficiency.

Calculated data, as well as forms of balance sheet and profit and loss account are presented in tables 1, 2

Current (current) assets in their total exceeded current (short-term) liabilities by 14,390 thousand rubles. (682128-667738) in 2014 and by 27,730 thousand rubles. (722426-694696) in 2015, which clearly indicates the solvency of the company. However, not everything is so simple. As we can see, the company’s property includes such items as deferred expenses and value added tax on acquired assets. Moreover, the balances on these items are increasing. Let's imagine a situation that at a certain period of time a company will urgently need to repay all its obligations to creditors, and it is forced to sell its current assets. Deferred expenses cannot be sold, this is not property, therefore, in my opinion, it seems quite reasonable not to take this article into account when determining the solvency of the company.

The situation is similar with “input” VAT: what is the likelihood of it being presented for reimbursement from the budget if it has not been reimbursed to date? There can be two approaches here, let's call them conservative and loyal. Taking a conservative approach, I recommend not taking into account the amount of input VAT when analyzing the solvency and liquidity of the company. With a more loyal approach, it is possible to reduce the amount of tax payment obligations by the amount of “input” VAT. If the amount of “input” VAT exceeds the amount of tax liabilities (as in our example), I propose not to take into account the remaining amount of VAT in the calculations. There is also a reasonable explanation for this approach: VAT reimbursement from the budget takes quite a long time (90 days are allotted only for a desk audit under the Tax Code) and is associated with the emergence of additional tax risks and, which is not excluded, legal proceedings.

Table 3. Changes in the solvency of the company taking into account the listed comments

Indicators	Conservative approach		Loyal approach
Indicators	2014	2015	2014	2015
Current assets	682128	722426	682128	722426
minus deferred expenses	1415	2600	1415	2600
minus “input” VAT	16580	17044	16580	17044
= Current assets (TA)	664133	702782	664133	702782
Current liabilities	667738	694696	667738	694696
minus tax debt	–	–	2638	5964
= Current liabilities (TO)	667738	694696	665100	688732
Difference between TA and TO	-3605	8086	-967	14050

As we can see, with both the first and second approaches, the company’s solvency in 2015 improved significantly.

Express analysis of financial statements is a financial analysis for which the usual balance sheet and profit and loss account are sufficient.

Despite the apparent limitations of the source data, it is possible to draw conclusions about the structure of the balance sheet of the company’s financial stability and solvency, the presence or absence of free cash, cash flow management policies and thus – about creditworthiness and the stage of the investment cycle.

Analysis of the financial condition of the enterprise includes analysis of the balance sheet and financial statements financial results the work of the company being assessed (express analysis of financial statements) over past periods to identify trends in its activities and determine key financial indicators. The main goal of express analysis, which is one of the types financial analysis is a clear and simple assessment of the property status and development efficiency of an economic entity.

Express analysis of financial statements is the optimal solution for quickly diagnosing the state of affairs at an enterprise in order to decide to what level it makes sense to deepen the analysis and what additional data to look for.

Express analysis of financial statements makes it possible to obtain in one to two days general idea about the financial position of the organization. Its convenience lies in the simplicity of the analysis information base. The two main forms (balance sheet and income statement) are, firstly, standard and, secondly, required to be completed for submission to tax office and statistical authorities.

With proper handling of the numbers in consolidated financial statements and a well-thought-out methodology, express analysis of financial statements can provide a comprehensive snapshot of the state of the enterprise necessary for making serious management decisions.

The main sources of information and express analysis of financial statements are the financial statements of the enterprise. According to the federal law “On Accounting”, the company’s basic reporting documents are the balance sheet (Form No. 1) and the profit and loss statement (Form No. 2). The annual reporting also includes appendices to the balance sheet: statement of changes in capital (form No. 3); cash flow statement (form No. 4); Appendix to the balance sheet (form No. 5); report on the intended use of funds received (form No. 6); an explanatory note containing essential information about the organization and its financial position; auditor's report.

Express analysis of the financial condition of an enterprise involves the following stages:

Stage 1. Analysis of property status.

Stage 2. Analysis of financial results.

Stage 3. Analysis of financial condition.

Stage 1. Analysis of the company's property status

The most general idea of the qualitative changes that have taken place in the structure of the company’s funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting. Vertical analysis reveals the structure of the company's funds and their sources, and horizontal analysis consists of constructing analytical tables in which absolute parameters are supplemented by relative growth (decrease) rates.

Stage 2. Analysis of financial results

Efficiency and economic feasibility(and profit is the main and main thing for us) of the functioning of an enterprise are measured by absolute and relative indicators: profit, level of gross income, profitability, etc. Using the data from the profit and loss statement (Form No. 2) of the balance sheet, we will calculate the main indicators of profitability:

2.1. Return on sales shows how much profit is generated per unit of product sold.

2.2. The profitability of core activities shows how much profit from sales falls on 1 ruble of costs.

2.3. Return on sales (ROS) ratio is the ratio of net profit to gross sales.

2.4. An enterprise's return on assets (ROA) shows how many monetary units of net profit are generated by each unit of assets at the company's disposal.

2.5. The return on equity ratio (ROE) shows how much income each ruble invested in the company's business by its owners generates.

2.6. The payback period of equity capital shows the number of years during which investments in a given organization will be fully repaid.

Stage 3. Financial analysis

As a rule, the analysis involves:

3.1. Assessing the dynamics and structure of balance sheet items.

3.2. Analysis of liquidity and solvency of the balance sheet.

3.3. Analysis of financial stability and capital structure.

3.1. Assessing the dynamics and structure of balance sheet items. For overall assessment dynamics of financial condition, it is necessary to group balance sheet items into some specific groups based on liquidity and maturity of obligations. (Aggregate balance sheet items). Based on the aggregated balance sheet, the structure of the enterprise's property is analyzed.

Also, you can build an analytical balance, which allows you to perform a dynamic analysis of indicators, establish their absolute increments and growth rates.

3.2. Analysis of liquidity and solvency of the balance sheet. The financial position of an enterprise is characterized by indicators of liquidity and solvency of the enterprise, that is, the ability to timely and in full make payments on short-term liabilities.

It is clear that liquidity and solvency are not equivalent to each other. Thus, liquidity ratios may characterize the financial position as satisfactory, although in essence this assessment may turn out to be erroneous if there is a significant specific gravity accounts for illiquid assets and overdue receivables, which can be seen by analyzing the liquidity of the balance sheet.

3.3. Analysis of financial stability. An assessment of the financial condition of an enterprise will be incomplete without an analysis of financial stability. The task of financial stability analysis is to assess the size and structure of assets and liabilities. Indicators that characterize independence for each element of assets and property as a whole make it possible to measure whether the analyzed organization is financially stable enough. The simplest and most approximate way to assess financial stability is to calculate absolute indicators of financial stability.

Most often, to analyze financial stability, relative coefficients are used, which are accepted in global and domestic accounting and analytical practice.

How to conduct an express analysis of your financial condition

And so, first of all, when conducting an express analysis of the financial condition, it is necessary to identify problematic items on the company’s balance sheet, review reporting items, compare the data of the current period with the past and identify problematic items. It is necessary to identify and evaluate the dynamics of problematic balance sheet items of two types:

1. Talking about the extremely unsatisfactory performance of the company in the reporting period and the resulting poor financial position (uncovered losses, overdue loans and accounts payable, etc.).

2. Evidence of certain shortcomings in the work of the organization, which, if they are regularly repeated in the reporting of several adjacent periods, can significantly affect the financial position of the company (overdue accounts receivable, debt written off to financial results, fines, penalties, penalties collected from the organization, negative net cash flow, etc.).

For example: Accounts receivable. If the increase in the indicator was due to an increase in accounts receivable, this indicates an unsatisfactory customer service policy, but subject to revenue growth, it may mean a change in credit policy aimed at stimulating sales.

Balance sheet data allows a preliminary assessment of the company's solvency, which can be called the company's "margin of safety" in terms of solvency: Solvency = cost of working capital - short-term liabilities.

Now it is necessary to carry out vertical and horizontal analysis. When analyzing the income statement vertically and horizontally, it is necessary to trace the relationship between the dynamics of revenue and cost. Unidirectional growth or decline in indicators should not cause concern to the analyst, but if, along with rising costs, there is a decrease in revenue, this indicates only one thing: in the near future the company may have problems serious problems with business efficiency.

The next step is to analyze the liquidity of the balance sheet. At this stage, it is necessary to answer the question: Does the company have sufficient assets to cover the company's liabilities.

Of interest when conducting express analysis are the coefficients characterizing the company’s business activity. Analysis of indicators should show the effectiveness of the company’s managers, both with suppliers and clients. The business activity of an enterprise in the financial aspect is manifested, first of all, in the speed of turnover of its funds.

It may not be superfluous to calculate the financial stability coefficient, which characterizes the share of equity in the balance sheet currency. And if you have debt on loans and borrowings, it makes sense to calculate the interest coverage ratio.

Finally, we calculate profitability indicators; it is enough to determine the total and net profitability of the company. However, we should not forget that there are no standard values for this indicator, and for each sector of the economy it is strictly individual. In an economic crisis, if the indicator is positive, this is already good, but if it is higher than the Central Bank refinancing rate, the situation can be described as normal.

In the process of analysis it is very important right choice key indicators. They must be formed in such a way as to practically satisfy the needs of different user groups.

Thus, for enterprise managers, the set includes indicators of gross profit, sales profit, profitability level, operating profit and EBITDA in absolute and relative terms.

Solvency, liquidity ratios and indicators characterizing the business activity of an enterprise - the turnover of receivables and payables.

For shareholders and owners, the return on equity indicator will be very interesting. It is one of the key indicators when assessing the effectiveness of the use of funds invested by owners in the business.

Liquidity ratios (current liquidity and working capital) make it possible to determine the degree of solvency of the company and its ability to pay short-term obligations in a timely manner.

The amount of working capital characterizes the possibility of business expansion and reinvestment. This is especially important when the company pursues an active investment policy.

For partners and counterparties, the key indicators when analyzing reporting are: indicators of the investment attractiveness of the enterprise; indicators of business activity (asset turnover ratios, equity capital: accounts receivable and accounts payable); the amount of net assets.

The investment attractiveness of a company is important for creditors and investors. It is characterized by liquidity indicators, financial stability, and business activity. These include the turnover of assets, capital, receivables and payables.

Carrying out an express analysis of accounting (financial) statements, the user solves mainly the problem of identifying “painful” points of the company’s activities in order to determine the directions for in-depth analysis.

In this sense, express analysis can be carried out with the minimum necessary calculations and the use of various techniques and technologies, which may be different for each user. For express analysis, the following main indicators characterizing the financial condition of the enterprise can be selected:

1. Assessment of property status: Amount household assets organizations; Share of fixed assets in total assets; Depreciation rate of fixed assets.

2. Assessment of financial condition: Current solvency and liquidity ratio; Absolute liquidity ratio; Autonomy coefficient; Provision ratio of own working capital.

3. Assessment of business activity: Turnover of all assets used; Accounts receivable turnover; Capital productivity.

4. Profitability assessment: Profitability of all assets; Sales profitability; Profitability of current costs.

5. Presence of “painful” items in the reporting: Losses; Overdue receivables and payables; Credits and loans not repaid on time; Bills issued (received) are overdue.

Express analysis of financial statements is carried out by the user based on the financial statements without preliminary transformation of its indicators or with preliminary transformation of reporting indicators. The transformation of accounting (financial) reporting indicators can be carried out by regrouping homogeneous indicators, i.e. aggregation of balance sheet items.

Thus, any analysis is carried out for a specific purpose, so we must always clearly remember what questions we want to get answers to as a result of express analysis. There is no strictly defined set of coefficients; the analyst’s task is to determine the set that will fully answer the questions posed before starting calculations. When conducting an express analysis, there is no need to analyze all items; it is enough to pay attention only to problematic balance sheet items.

Introduction

1 Express analysis of the financial condition of the enterprise

1.1 The essence of the analysis of the financial and economic activities of an enterprise

1.2 Sequence of express analysis of financial statements

1.3 Methodology for express analysis of financial reporting indicators

2 Express analysis of the economic activity of an enterprise (using the example of the Mozyrstroy Production Cooperative)

2.1 Economic characteristics of the activities of the Mozyrstroy Production Cooperative

2.2 Express analysis of financial condition Production cooperative "Mozyrstroy" according to annual financial statements

3 Ways to improve the financial condition of PC “Mozyrstroy” based on the given express analysis

Conclusion

List of sources used

INTRODUCTION

During the transition to a market economy, society experiences systemic transformations in all spheres of its life - political, legal, economic, social, etc. Problems of an economic nature include the development and support of small businesses.

Of particular interest is the development of small businesses in such a complex and diverse area as repair and construction services. An important role in the implementation of this task is given to the analysis of the financial condition of the enterprise. With its help, a strategy and tactics for the development of an enterprise is developed, plans and management decisions are substantiated, their implementation is monitored, ways to improve the efficiency of commercial activities are identified, and the results of the activities of the enterprise, its divisions and employees are assessed.

It is difficult to underestimate the enormous role of infrastructure, which the service sector represents for the economy in the form of transport services, communications, and health and recreation. As the economy develops, the role of the service sector becomes even stronger and more more people are involved in its various branches.

In modern economic conditions, the activities of each economic entity are the subject of attention of a wide range of market participants interested in the results of its functioning. An express analysis of the financial condition of an organization's enterprise is carried out by managers and relevant services, as well as founders and investors in order to study the effective use of resources. Banks to assess the terms of the loan and determine the degree of risk, suppliers to receive payments on time, etc.

The financial condition of an enterprise is characterized by the placement and use of enterprise funds. This information is presented in the balance sheet of the enterprise. The main factors determining the financial condition of the enterprise are, firstly, the implementation of the financial plan and replenishment as the need arises for its own capital turnover at the expense of profits and, secondly, the turnover rate of working capital (assets). The signal indicator in which the financial condition is manifested is the solvency of the enterprise, which means its ability to meet payment requirements on time, repay loans, pay staff, and make payments to the budget.

To ensure the survival of an enterprise in modern conditions, management personnel must, first of all, be able to realistically assess the financial condition of both their enterprise and existing potential competitors. Financial condition is the most important characteristic of the economic activity of an enterprise. It determines competitiveness, potential in business cooperation, assesses the extent to which the economic interests of the enterprise itself and its partners are guaranteed in financial and production terms. However, the ability to realistically assess the financial condition is not enough for the successful functioning of an enterprise and its achievement of its goal.

The construction business occupies an important place in the industry, the broad nature of which covers elements of related industry sectors, for example, multi-apartment construction, construction of individual housing, etc.

The relevance of the course work is to study and evaluate the enterprise’s provision with its own working capital as a whole, determine the solvency indicators of the enterprise, analyze financial stability, and assess liquidity.

The main goal of this work is to study the financial condition of PC “Mozyrstroy” based on express analysis, the results of its activities, calculation of financial indicators, increasing operational efficiency and making a profit.

The main tasks of the work are:

Studying the methodology of the financial condition of the enterprise;

Analysis of the financial stability of the enterprise;

Analysis of balance sheet liquidity;

Analysis of financial ratios;

Analysis of profitability and business activity;

An express analysis of the financial condition of PC Mozyrstroy will be carried out based on the financial statements for 2009.

1 EXPRESS ANALYSIS OF THE FINANCIAL CONDITION OF THE ENTERPRISE

1. The essence of financial analysis economic activity enterprises

To determine the essence of financial analysis as a type of activity, on the one hand, and as a science, on the other, it is necessary to define its main elements. Such elements are: the finances of the enterprise, the structure of the enterprise's funds, the structure of the enterprise's property, the financial condition of the enterprise, the goals of financial analysis, the subjects of financial analysis, the place of financial analysis as a science, the interaction of financial analysis with other types of activities.

In market conditions, enterprise finance becomes especially important. Bringing to the fore the financial side of enterprise activity has recently been one of the most characteristic features of the economic life of developed capitalist countries. The increasing role of business finance should be seen as a trend occurring throughout the world.

The term “finance” comes from the Latin “financia” - cash payment. Enterprise finance is an economic category, the peculiarity of which lies in the scope of its action and its inherent functions.

The modern financial system of the state consists of centralized and decentralized finance.

“Finance is a set of monetary relations that arise in the process of creating funds of funds from business entities and the state and using them for the purpose of reproduction, stimulation and satisfaction of the social needs of society. In the totality of financial relations, three large interconnected areas are distinguished: finances of economic entities (enterprises, organizations, institutions), insurance, public finances.”

Financial relations arise in cases where in one way or another (legislative, contractual, etc.) it is necessary to make cash and non-cash payments, as well as when payments actually occur. Enterprise finance is a system of relationships that are associated with their cash payments and arise in the process of individual circulation of enterprise funds and the sources of these funds. In other words, the financial processes of enterprises involve the formation of their cash income and expenses. Enterprise finance serves the continuous circulation of enterprise funds and the sources of their formation, which consists in supply, production, sales, receipt and distribution of financial results (revenue, profit), attraction and repayment of borrowed funds. In the process of circulation, there is a continuous change in the structure of the enterprise’s funds and their sources, defined as the relationship between the elements of property and the elements of the capital that forms it. The structure of an enterprise's funds develops as a proportion between the cost values of fixed assets and other non-current assets, inventories and costs, cash, settlements and other current assets. The structure of sources of property of an enterprise is the proportion between the cost values of sources of own funds, long-term loans and borrowings, short-term loans and borrowings, settlements with creditors and other short-term liabilities. Each of the listed aggregates accordingly has its own structure, determined by smaller elements.

The ratio of the structure of the enterprise's funds and the structure of the sources of their formation at each fixed point in time determines the financial condition of the enterprise, determining the degree of sustainability of which is one of the most important tasks of financial analysis. Financial condition is a set of indicators that reflect the availability, placement and use of financial resources.

Since the purpose of the analysis is not only to establish and evaluate the financial condition of the enterprise, but also to constantly carry out work aimed at improving it.

Analysis of the financial condition of the enterprise shows in which specific areas this work should be carried out, makes it possible to identify the most important aspects and weakest positions in the financial condition of the enterprise.

An assessment of the financial condition can be performed with varying degrees of detail depending on the purpose of the analysis, available information, software, technical and personnel support. The most appropriate is to separate the procedures for express analysis and in-depth analysis of financial condition. Financial analysis makes it possible to evaluate:

Property status of the enterprise;

Degree of business risk;

Capital adequacy for current activities and long-term investments;

The need for additional sources of financing;

Ability to increase capital;

Rationality of borrowing funds;

The validity of the policy for the distribution and use of profits.

The basis of information support for the analysis of financial condition should be financial statements, which are uniform for the organization of all industries and forms of ownership.

The results of financial analysis allow us to identify vulnerabilities that require special attention, and develop measures to eliminate them.

All this once again indicates that financial analysis in modern conditions is becoming an element of management, a tool for assessing the reliability of a potential partner.

The need to combine formalized and informal procedures in the process of making management decisions leaves its mark both on the procedure for preparing documents and on the sequence of procedures for analyzing financial condition. It is this understanding of the logic of financial analysis that is most consistent with the logic of the functioning of an enterprise in the conditions market economy.

1.2 Sequence of express analysis of financial statements

Express analysis is a method of diagnosing the economic state of business entities based on financial statements and calculations of indicators using algorithms for their relationships using computer information technologies.

The purpose of express analysis is a quick, generalized assessment of the results of economic activity and the financial condition of an object based on the main analytical indicators and methods for their calculation.

The sequence of express analysis is as follows:

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Abstract >> Accounting and Auditing
A visual, convenient and universal tool for express analysis financial state enterprises- series program: " Analysis financial reporting 1.xx".
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Every company strives to operate with maximum economic efficiency.

To achieve success, you need to implement effective methods business management, identify shortcomings in financial and economic activities, problem areas of functioning. To do this, it is necessary to assess the financial condition of the enterprise and timely analyze financial statements. In this case, it is advisable to use the express analysis method.

We will show how to correctly conduct an express analysis of financial condition using the example of the manufacturing company Alpha LLC, which repairs components for cars.

CONDUCTING AN EXPRESS ANALYSIS OF FINANCIAL STATEMENTS

Analysis of financial condition is usually carried out according to financial statements. The largest amount of information required for analysis contains:

balance sheet— allows you to assess the efficiency of capital placement, its sufficiency for current economic activity and development, as well as the size and structure of borrowed funds, the effectiveness of their attraction;
income statement— contains data on the organization’s income and expenses, its financial results for the reporting year.

The balance sheet and financial performance report of Alpha LLC are presented in table. 1 and 2 respectively.

Express analysis of financial statements consists of several stages:

1. Horizontal and vertical analysis of financial statements.

2. Analysis and assessment of the liquidity and solvency of the enterprise.

3. Analysis and assessment of the financial stability of the enterprise.

4. Analysis and assessment of profitability indicators.

Table 1. Balance sheet of Alpha LLC (2013-2016), thousand rubles.
Indicator	Line code	2013	2014	2015	2016
Assets
I. Non-current assets
Intangible assets
Fixed assets

Financial investments
Others non-current assets
Total for Section I
II. Current assets


Accounts receivable

Total for Section II

Passive
III. Capital and reserves
Authorized capital
Reserve capital

Total by section III

Total for Section IV

Borrowed funds
Accounts payable
Total for Section V

Table 2. Report on financial results of Alpha LLC (2013-2016), thousand rubles.
Indicator	Line code	2013	2014	2015	2016

Cost of sales
Gross profit (loss)
Profit (loss) from sales
Interest payable
Other expenses
Profit (loss) before tax
Current income tax
Net profit (loss)

Vertical and horizontal analysis of financial statements

Vertical analysis involves assessing the structure of an enterprise's funds and their sources by calculating the share of items in the balance sheet currency. Such an analysis helps to study the relationships between balance sheet items. In this case, a table is formed to display the results of the analysis (Table 3), to which changes are made specific gravity in order to make forecasts for changes in the structure in the future.

Table 3. Vertical analysis of the balance sheet for 2015-2016.
Title of articles	Absolute values, thousand rubles			Relative values, %
Title of articles	2015	2016	changes	2015	2016	changes
ASSETS
I. Non-current assets
Intangible assets
Fixed assets
Profitable investments in material assets
Financial investments
Other non-current assets
Total for Section I
II. Current assets

VAT on purchased assets
Accounts receivable
Cash and cash equivalents
Total for Section II

PASSIVE
III. Capital and reserves
Authorized capital
Reserve capital
Retained earnings (uncovered loss)
Total for Section III
IV. Long-term liabilities
Total for Section IV
V. Current liabilities
Borrowed funds
Accounts payable
Total for Section V

Based on vertical analysis data assets Alpha LLC can say that in 2015-2016. the share of current assets exceeds the share of non-current assets due to the larger volume of accounts receivable and inventories. High level accounts receivable indicates the unreliability and insolvency of partners, poor quality work of the enterprise with buyers and customers.

An important place in the composition of current assets in 2016 is occupied by cash enterprises. Their availability determines the solvency, financial stability and ability of the enterprise to pay off its debts and obligations.

Regarding liabilities, then most of the liabilities fall on accounts payable. On the positive side, debt was reduced by 13% in 2016. When analyzing the structure of liabilities, the largest share coming from the company’s own sources is considered ideal. In this case, the share of own sources increased by 8%, which has a positive effect on the financial condition of the enterprise as a whole.

At horizontal analysis balance sheet (Table 4) evaluate changes in items over several periods. In this case, as a rule, only absolute indicators are analyzed. The exception is the calculation of growth/decrease rates for clarity of the picture.

A. N. Dubonosova, Deputy Managing Director for Economics and Finance

The material is published partially. You can read it in full in the magazine