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

The main way to determine the solvency and liquidity of a company is ratio analysis. First, let's define the concept of "financial ratio".

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

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

Coefficients characterizing the solvency of the enterprise

Table 1. Main financial ratios characterizing the solvency of an enterprise

Coefficients characterizing the liquidity of the enterprise

The main indicators characterizing the liquidity of a commercial organization are presented in the following table.

Table 2. Key financial ratios characterizing liquidity

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

Coefficients characterizing the property status of the enterprise

Table 3. Main financial ratios characterizing the financial position of the enterprise

Indicators of the financial stability of the enterprise

The main financial ratios used in the process of assessing the financial stability of an enterprise are based on equity capital (SC), short-term liabilities (CO), borrowed capital (LC) and working capital (SOC) taken into account for the purposes of analysis, which can be determined with using formulas compiled on the basis of the codes of the balance sheet lines:

SK = Kiri + DBP = p. 1300 + p. 1530

KO = line 1500 - line 1530

ZK \u003d TO + KO \u003d line 1400 + line 1500 - line 1530

SOK \u003d SK - VA \u003d p. 1300 + p. 1530 - p. 1100

where KiR - capital and reserves (p. 1300); DBP - deferred income (line 1530); DO - long-term liabilities (line 1400); VA - non-current assets (line 1100).

When evaluating indicators of the financial condition of the enterprise it should be taken into account that the normal or recommended values ​​were determined on the basis of an analysis of the activities of Western companies and were not adapted to Russian conditions.

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

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

Financial ratios are relative indicators of the financial condition of the enterprise. They are calculated as ratios of absolute indicators of financial condition or their linear combinations. The analysis of financial ratios consists in comparing their values ​​with base values, as well as in studying their dynamics for the reporting period and for a number of years. As basic values, the values ​​of indicators of the given enterprise, averaged over the time series, relating to past favorable periods from the point of view of financial condition, are used. In addition, theoretically substantiated or expertly obtained values ​​can be used as a basis for comparison. Such values ​​actually play the role of standards for financial ratios, although the methodology for calculating them depending on the industry has not been created, since at present the set of relative indicators used to assess the financial condition of an enterprise has not been established. For an accurate and complete characterization of the financial condition, a fairly small number of indicators is required. It is only important that each of these indicators reflect the most significant aspects of the financial condition.

The system of relative coefficients can be divided into a number of characteristic groups:

Indicators for assessing the profitability of the enterprise.

Indicators for assessing the effectiveness of management or profitability.

Indicators for assessing market stability.

Indicators for assessing the liquidity of balance sheet assets as the basis of solvency.

1.Indicators of profitability of the enterprise.

2. Product profitability indicators. Evaluation of management efficiency.

return rate = net profit
share capital

net profit X volume of sales X assets
sales volume assets share capital

coefficient = marginal X turnover X financial
return on assets profit leverage

3. Evaluation of business activity (turnover ratios).

4. Assessment of the liquidity of the company's assets.

To assess solvency, 3 relative liquidity indicators are used, which differ in the set of liquid funds considered as covering obligations. The normal limits of liquidity indicators given below are obtained on the basis of empirical data, expert assessments and mathematical modeling. They can serve as guidelines in the analysis of the financial condition of domestic enterprises.

financial leverage

Use of borrowed funds with a fixed interest to increase the profits of ordinary shareholders.

Market price.

In preparing this work, materials from the site http://www.studentu.ru were used.

Financial ratios reflect the relationship between various reporting items (revenue and total assets, cost and amount of accounts payable, etc.).

The analysis procedure using financial ratios involves two stages: the actual calculation of financial ratios and their comparison with the base values. As the base values ​​of the coefficients, the average industry values ​​of the coefficients, their values ​​for previous years, the values ​​of these coefficients for the main competitors, etc. can be chosen.

The advantage of this method lies in its high "standardization". All over the world, the main financial ratios are calculated using the same formulas, and if there are differences in the calculation, then such ratios can easily be brought to generally accepted values ​​using simple transformations. In addition, this method makes it possible to exclude the effect of inflation, since almost all coefficients are the result of dividing one reporting item into another, i.e., not the absolute values ​​appearing in the reporting, but their ratios are studied.

Despite the convenience and relative ease of use of this method, financial ratios do not always make it possible to unambiguously determine the state of affairs of the company. As a rule, a strong difference of a certain coefficient from the industry average or from the value of this coefficient for a competitor indicates that there is an issue that needs more detailed analysis, but does not indicate that the enterprise definitely has a problem. A more detailed analysis using other methods may reveal the presence of a problem, but may also explain the deviation of the coefficient by the features of the economic activity of the enterprise, which do not lead to financial difficulties.

For Internet companies, regular calculation of financial ratios is a convenient tool for tracking the current state of the enterprise. In the context of a rapidly growing network market, their relative nature makes it possible to exclude the influence of many factors that distort the absolute values ​​of reporting indicators.

Various financial ratios reflect certain aspects of the activity and financial condition of the enterprise. They are usually divided into groups:

liquidity ratios. Liquidity refers to the ability of a company to repay its obligations on time. These ratios operate on the ratio of the values ​​of the company's assets and the values ​​of short-term and long-term liabilities;

· coefficients reflecting the effectiveness of asset management. These coefficients are used to assess the compliance of the size of certain assets of the company with the tasks performed. They operate with such values ​​as the size of inventories, current and non-current assets, receivables, etc.;

· coefficients reflecting the capital structure of the company. This group includes coefficients that operate on the ratio of own and borrowed funds. They show from what sources the company's assets are formed, and how much the company is financially dependent on creditors;

profitability ratios. These ratios show how much income a company derives from its assets. Profitability ratios allow for a versatile assessment of the company's activities as a whole, according to the final result;

market activity ratios. The coefficients of this group operate with the ratio of market prices for the company's shares, their nominal prices and earnings per share. They allow you to assess the position of the company in the securities market.

Let us consider these groups of coefficients in more detail. The main liquidity ratios are:

current (total) liquidity ratio (Current ratio). It is defined as the quotient of the size of the company's working capital divided by the size of current liabilities. Current assets include cash, accounts receivable (net of doubtful debts), inventories and other quickly realizable assets. Current liabilities consist of accounts payable, short-term accounts payable, payroll and tax charges, and other short-term liabilities. This ratio shows whether the company has enough funds to pay off current liabilities. If the value of this ratio is less than 2, then the company may have problems with the repayment of short-term obligations, expressed in delayed payments;

· Quick ratio. At its core, it is similar to the current ratio, but instead of the full amount of working capital, it uses only the amount of working capital that can be quickly turned into money. The least liquid part of working capital is inventory. Therefore, when calculating the quick liquidity ratio, they are excluded from working capital. The ratio shows the company's ability to pay off its short-term obligations in a relatively short time. It is believed that for a normally functioning company, its value should be in the range from 0.7 to 1;

absolute liquidity ratio. This ratio shows how much of a company's short-term liabilities can be repaid almost instantly. It is calculated as the quotient of dividing the amount of cash in the company's accounts by the amount of short-term liabilities. Its value in the range from 0.05 to 0.025 is considered normal. If the value is below 0.025, then the company may have problems paying off current liabilities. If it is more than 0.05, then, perhaps, the company is irrationally using free cash.

The following coefficients are used to assess the effectiveness of asset management:

Inventory turnover ratio. It is defined as the quotient of dividing the proceeds from sales for the reporting period (year, quarter, month) by the average value of stocks for the period. It shows how many times during the reporting period the stocks were transformed into finished products, which, in turn, were sold, and the stocks were reacquired with the proceeds from the sale (how many “turns” of stocks were made during the period). This is the standard approach to calculating the inventory turnover ratio. There is also an alternative approach, based on the fact that the sale of products occurs at market prices, which leads to an overestimation of the inventory turnover ratio when using sales proceeds in its numerator. To eliminate this distortion, instead of revenue, you can take the cost of goods sold for the period or, which will give an even more accurate result, the total cost of the enterprise for the period for the purchase of inventory. The inventory turnover ratio is highly dependent on the industry in which the company operates. For Internet companies, it is usually higher than for ordinary enterprises, since most Internet companies operate in the field of online trading or in the service sector, where turnover is usually higher than in production;

· Total asset turnover ratio. It is calculated as the quotient of the division of the sales proceeds for the period by the total assets of the enterprise (average for the period). This ratio shows the turnover of all assets of the company;

turnover of receivables. It is calculated as the quotient of dividing the proceeds from sales for the reporting period by the average value of accounts receivable for the period. The coefficient shows how many times during the period the receivables were formed and repaid by buyers (how many "turns" of receivables were made). A more illustrative version of this ratio is the average receivables receivable by customers (in days) or the average collection period (ACP). To calculate it, the average receivables for the period are divided by the average sales revenue for one day of the period (calculated as the revenue for the period divided by the length of the period in days). The ACP shows how many days, on average, it takes from the date of shipment of products to the date of receipt of payment. The practice of Internet companies that has developed in Russia, as a rule, does not provide for a deferred payment to customers. For the most part, Internet companies operate on a pre-paid or pay-at-delivery basis. Thus, for the majority of Russian network enterprises, the ACP indicator is close to zero. As the Internet business develops, this figure will increase;

Accounts payable turnover ratio. It is calculated as the quotient of the cost of goods sold for the period divided by the average value of accounts payable for the period. The coefficient shows how many times during the period accounts payable arose and was repaid;

· capital productivity ratio or fixed assets turnover (Fixed asset turnover ratio). It is calculated as the ratio of sales revenue for the period to the cost of fixed assets. The coefficient shows how much revenue for the reporting period was brought by each ruble invested in the company's fixed assets;

· equity turnover ratio. Equity refers to the total assets of a company less liabilities to third parties. Equity capital consists of the capital invested by the owners and all profits earned by the company, less taxes paid out of profits and dividends. The coefficient is calculated as the quotient of the division of the proceeds from sales for the analyzed period by the average value of equity capital for the period. It shows how much revenue each ruble of the company's equity brought in for the period.

The capital structure of the company is analyzed using the following ratios:

· the share of borrowed funds in the structure of assets. The ratio is calculated as the quotient of the amount of borrowed funds divided by the total assets of the company. Borrowed funds include short-term and long-term liabilities of the company to third parties. The ratio shows how dependent on creditors the company is. The normal value of this coefficient is about 0.5. In addition to this ratio, the financial dependence ratio is sometimes calculated, which is defined as the quotient of dividing the amount of borrowed funds by the amount of own funds. A level of this coefficient exceeding one is considered dangerous;

· security of interest payable, TIE (Time-Interest-Earned). The ratio is calculated as the quotient of profit before interest and taxes divided by the amount of interest payable for the analyzed period. The ratio shows the company's ability to pay interest on borrowed funds.

Profitability ratios are very informative. Of these, the most important are the following:

Profit margin of sales. Calculated as a quotient of net income divided by sales revenue. The coefficient shows how many rubles of net profit each ruble of revenue brought;

return on assets, ROA (Return of Assets). Calculated as a quotient of net profit divided by the amount of assets of the enterprise. This is the most common coefficient that characterizes the efficiency of the company's use of the assets at its disposal;

· return on equity, ROE (Return of Equity). Calculated as the quotient of net income divided by the amount of ordinary share capital. Shows profit for each ruble invested by investors;

income generation ratio, BEP (Basic Earning Power). It is calculated as the quotient of earnings before interest and taxes divided by the company's total assets. This coefficient shows how much profit for each ruble of assets the company would earn in a hypothetical tax-free and interest-free situation. The coefficient is convenient for comparing the performance of enterprises that are under different tax conditions and have a different capital structure (the ratio of own and borrowed funds).

The company's market activity ratios allow assessing the company's position in the securities market and the attitude of shareholders to the company's activities:

· share quotation ratio, М/В (Market/Book). It is calculated as the ratio of the market price of a share to its book value;

Earnings per ordinary share. It is calculated as the ratio of the dividend per ordinary share to the market price of the share.

Let's analyze the 12 main coefficients of the financial analysis of the enterprise. Due to their great diversity, it is often impossible to understand which of them are the main ones and which are not. Therefore, I tried to highlight the main indicators that fully describe the financial and economic activities of the enterprise.

In activity, an enterprise always faces its two properties: its solvency and its efficiency. If the solvency of the enterprise increases, then the efficiency decreases. An inverse relationship can be observed between them. Both solvency and performance can be described by coefficients. You can dwell on these two groups of coefficients, however, it is better to split them in half. So the Solvency group is divided into Liquidity and Financial stability, and the Enterprise Efficiency group is divided into Profitability and Business activity.

We divide all coefficients of financial analysis into four large groups of indicators.

1. Liquidity ( short-term solvency),
2. Financial stability ( long-term solvency),
3. Profitability ( financial efficiency),
4. Business activity ( non-financial efficiency).

The table below shows the division into groups.

In each of the groups, we will select only the top 3 coefficients, as a result, we will have only 12 coefficients. These will be the most important and main coefficients, because, in my experience, they most fully describe the activities of the enterprise. The rest of the coefficients that are not included in the top, as a rule, are a consequence of these. Let's get down to business!

Top 3 Liquidity Ratios

Let's start with the golden trio of liquidity ratios. These three ratios give a complete understanding of the company's liquidity. This includes three ratios:

1. current liquidity ratio,
2. absolute liquidity ratio,
3. Quick liquidity ratio.

Who uses liquidity ratios?

The most popular among all coefficients - it is used mainly by investors in assessing the liquidity of an enterprise.

interesting for suppliers. It shows the ability of the enterprise to pay off contractors-suppliers.

Calculated by lenders to assess the quick solvency of the enterprise when issuing loans.

The table below shows the formula for calculating the three most important liquidity ratios and their normative values.

Top 3 Financial Strength Ratios

Let's pass to consideration of three basic factors of financial stability. The key difference between liquidity ratios and financial stability ratios is that the first group (liquidity) reflects short-term solvency, and the last (financial stability) - long-term. But in fact, both liquidity ratios and financial stability ratios reflect the solvency of the enterprise and how it can pay off its debts.

1. autonomy coefficient,
2. Capitalization ratio,
3. The coefficient of security with own working capital.

Autonomy coefficient(financial independence) is used by financial analysts for their own diagnostics of their enterprise for financial stability, as well as arbitration managers (according to the Decree of the Government of the Russian Federation of June 25, 2003 No. 367 “On approval of the rules for financial analysis by arbitration managers”).

Capitalization ratio important for investors who analyze it to evaluate investments in a particular company. A company with a large capitalization ratio will be more preferable for investment. Too high values ​​of the coefficient are not very good for the investor, as the profitability of the enterprise and thus the income of the investor decreases. In addition, the coefficient is calculated by lenders, the lower the value, the more preferable is the provision of a loan.

recommendatory(according to Decree of the Government of the Russian Federation of May 20, 1994 No. 498 “On certain measures to implement the legislation on insolvency (bankruptcy) of an enterprise”, which became invalid in accordance with Decree 218 of April 15, 2003) is used by arbitration managers. This ratio can also be attributed to the Liquidity group, but here we will attribute it to the Financial Stability group.

The table below shows the formula for calculating the three most important financial stability ratios and their standard values.

Top 3 profitability ratios

Let's move on to the three most important profitability ratios. These ratios show the effectiveness of cash management in the enterprise.

This group of indicators includes three coefficients:

1. Return on assets (ROA),
2. Return on equity (ROE),
3. Return on sales (ROS).

Who uses financial stability ratios?

Return on assets ratio(ROA) is used by financial analysts to diagnose the performance of an enterprise in terms of profitability. The coefficient shows the financial return on the use of the company's assets.

Return on equity ratio(ROE) is of interest to business owners and investors. It shows how effectively the money invested (invested) in the enterprise was used.

Return on sales ratio(ROS) is used by the head of the sales department, investors and the owner of the enterprise. The coefficient shows the effectiveness of the sale of the main products of the enterprise, plus it allows you to determine the share of the cost in sales. It should be noted that what is important is not how many products the company sold, but how much net profit it earned net money from these sales.

The table below shows the formula for calculating the three most important profitability ratios and their standard values.

Top 3 business activity ratios

We turn to the consideration of the three most important coefficients of business activity (turnover). The difference between this group of coefficients and the group of profitability coefficients lies in the fact that they show the non-financial efficiency of the enterprise.

This group of indicators includes three coefficients:

1. Accounts receivable turnover ratio,
2. Accounts payable turnover ratio,
3. Inventory turnover ratio.

Who uses business activity ratios?

Used by the CEO, Commercial Director, Head of Sales, Sales Managers, CFO and Finance Managers. The coefficient shows how effectively the interaction between our company and our counterparties is built.

It is used primarily to determine ways to increase the liquidity of the enterprise and is of interest to the owners and creditors of the enterprise. It shows how many times in the reporting period (usually a year, but maybe a month, quarter) the company repaid its debts to creditors.

Can be used by commercial director, sales manager and sales managers. It determines the effectiveness of inventory management in the enterprise.

The table below shows the formula for calculating the three most important business activity ratios and their standard values. There is a small point in the calculation formula. The data in the denominator, as a rule, are taken as averages, i.e. the value of the indicator at the beginning of the reporting period is added to the end and divided by 2. Therefore, in the formulas, everywhere in the denominator is 0.5.

Summary

Let's sum up the top 12 coefficients for the financial analysis of the enterprise. Conventionally, we have identified 4 groups of performance indicators of the enterprise: Liquidity, Financial stability, Profitability, Business activity. In each group, we have identified the top 3 most important financial ratios. The obtained 12 indicators fully reflect the entire financial and economic activity of the enterprise. It is with the calculation of them that it is worth starting a financial analysis. For each coefficient, a calculation formula is given, so it will not be difficult for you to calculate it for your enterprise.

It is a process of studying the financial condition and the main results of the financial activity of an enterprise in order to identify reserves to increase its market value and ensure further effective development.

The results of financial analysis are the basis for making managerial decisions, developing a strategy for the further development of the enterprise. Therefore, financial analysis is an integral part, its most important component.

Basic methods and types of financial analysis

There are six main methods of financial analysis:

• horizontal(temporal) analysis— comparison of each reporting position with the previous period;
• vertical(structural) analysis- identification of the specific weight of individual articles in the final indicator, taken as 100%;
• trend analysis- comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible values ​​of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;
• analysis of relative indicators(coefficients) - calculation of ratios between individual reporting positions, determination of interrelations of indicators;
• comparative(spatial) analysis- on the one hand, this is an analysis of the reporting indicators of subsidiaries, structural divisions, on the other hand, a comparative analysis with the indicators of competitors, industry averages, etc.;
• factor analysis– analysis of the influence of individual factors (reasons) on the resulting indicator. Moreover, factor analysis can be both direct (analysis itself), when the resulting indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a common indicator.

The main methods of financial analysis carried out at the enterprise:

Vertical (structural) analysis- determination of the structure of the final financial indicators (the amounts for individual items are taken as a percentage of the balance sheet currency) and identifying the impact of each of them on the overall result of economic activity. The transition to relative indicators allows for inter-farm comparisons of the economic potential and performance of enterprises that differ in the amount of resources used, and also smoothes out the negative impact of inflationary processes that distort absolute indicators.

Horizontal (dynamic) analysis is based on the study of the dynamics of individual financial indicators over time.

Dynamic analysis is the next step after the analysis of financial indicators (vertical analysis). At this stage, it is determined which sections and items of the balance sheet have undergone changes.

The analysis of financial ratios is based on the calculation of the ratio of various absolute indicators of financial activity among themselves. The source of information is the financial statements of the enterprise.

1. Turnover indicators (business activity).
2. Market Activity Indicators

When analyzing financial ratios, the following points should be kept in mind:

• the value of financial ratios is greatly influenced by the accounting policy of the enterprise;
• diversification of activities makes it difficult to compare coefficients by industry, since the standard values ​​can vary significantly for different industries;
• normative coefficients chosen as a basis for comparison may not be optimal and may not correspond to the short-term objectives of the period under review.

Comparative financial analysis is based on comparing the values ​​of individual groups of similar indicators with each other:

• indicators of this enterprise and average industry indicators;
• financial indicators of the given enterprise and indicators of the enterprises-competitors;
• financial indicators of individual structural units and divisions of the enterprise;
• comparative analysis of reporting and planned indicators.

Integral () financial analysis allows you to get the most in-depth assessment of the financial condition of the enterprise.