as a primary source of information for financial analysts is the balance sheet, which contains all the information about the assets and liabilities of the Company denominated in valuation.Besides that, for an experienced analyst need only one look at the balance, to get all the necessary information, is still more convenient to use the aggregated balance sheet.Let's understand that it is.
aggregated balance: Example
Economics and Mathematics Dictionary says that under the aggregation should understand the union and consolidation of indicators on specific grounds.The main difference from the usual balance of this is that the group of articles is carried out on the economic content.Aggregated balance - this is the picture as a whole, while the ordinary - a set of parts.
If you analyze liquidity, it is possible to pay attention to the frequency of occurrence in formulas.With other financial ratios can be observed the same thing.
aggregated balance allows for the calculation of ratios, with no need to repeat over and over again the same operation.The result is much faster to analyze, and this balance allows you very quickly calculate many indicators: stability, turnover and liquidity.Aggregated balance is much easier to read, moreover, it is in a form as close to the international accounting standards.But it is worth remembering that the more significant indicators of the union, the less quality and depth analysis allows to produce this data.
Demonstration analysis can be made only after the adjustment of the aggregated balance sheet.The structure of the balance will remain the same, similarly decided to allocate assets (fixed and current) capital (equity and debt), the basic equality of the balance sheet remains unchanged.Inside sections performed grouping of individual articles, as the results of the sections in the balance sheet does not fully meet the economic substance names.For example, the balance sheet total of the second section is called current assets.However, here including accounts receivable, payments for which are expected more than a year.If the aggregate balance is compiled, it is excluded from current assets such receivables.But at the moment there is no uniform rules for its implementation.In the process of aggregating the balance should be based on common sense and understanding of the essence of balance sheet items in the economic sense.
purpose of the analysis of this type of balance is to obtain a preliminary report on the structure and dynamics of the major indicators of the company.To that end balance sheet are combined into eight major groups, with a classification of assets is carried out according to the degree of liquidity, and liability for the urgency of making payments.Groups should be formed taking into account the adjustment of their composition, based on the liquidity of the assets and liabilities of the timing of payments, which are set according to information from the balance sheet.
Aggregated profit and loss statement most correctly represented as a set of indicators:
- Revenues;
- costs associated with the normal activities, which includes the cost of goods, works, services or products, management and commercial costs;
- profits derived through sales;
- Other results that are generated as the difference between operating expenses and revenues;
- profits obtained through taxation;
- deferred taxes and current income tax;
- net profit.
For all these items shall be calculated indicators of structure and growth rates of indicators for special formulas.
