Analysis of profit and determination of the stability of the enterprise

definition of financial stability is one of the most important components of the market economy.Insufficient financial resources of the company often leads to the insolvency of the organization, and as a consequence to bankruptcy, while surplus - prevents the development and leads to excess reserves and stocks, thereby increasing the life of the turnover of capital and reducing profit.Analysis of profit, to some extent makes it possible to determine the parameters of such stability, it is the basis necessary for making the right decisions on the further development of the company, but does not give a clear picture of the situation of the undertaking at the moment.

profit analysis is always needed, regardless of the mode of economic relations, but some aspects of it are directly dependent on social conditions and economic conditions.In a market economy, many entrepreneurs often resort to the financial analysis in order to monitor the operational status of the enterprise, as well as in emergency situati

ons, when it is necessary to accurately assess the financial position of the company at the moment.The profit analysis is required for the transformation of the legal structure, in the process of corporatization and privatization of the company, as well as in raising to a new level of bankrupt enterprises.In any respectable financial institution each quarterly and annual report on the activities of the enterprise is necessarily accompanied by an analysis of profit.

Often, analysis of profit and economic activity associated with the processing of large amounts of information affecting various aspects of economic activity.Typically, this is - of financial reporting documents, historical accounting statements, the information on the balance sheet.Thus, these are the basic accounting basis for the financial analysis, but by themselves they are only speculation about the true state of affairs in the company.At the enterprises of accounting is not only to reflect the status of income, financial transactions and business operations.His data are a necessary aspect for management decisions and planning future tasks.

profit analysis sets the main goal - to provide basic informative parameters that will give an accurate and objective picture of the profits and losses of the enterprise, its financial condition, changes in assets and liabilities of the enterprise, as well as settlements with debtors, creditors of the bank's earnings, the transaction service.This information is the result of a comprehensive analysis of a wide variety of financial instruments on a special science-based methodology.The result is a clear picture of the state of the company, its assets, liabilities, assets, profitability means and speed of working capital.

profit analysis allows you to track trends in the development of the enterprise, to provide an objective assessment of its commercial and economic activity.He also is the link between production and business activities and management decisions.Financial analysis can be external and internal, and they are both very important.

External analysis of profit gives a clear picture of the balance sheet liquidity, earnings, profitability and solvency of the company, as well as the total income of the company.At the same time internal financial analysis is carried out in the interests of the firm, it is also necessary, as well as external.With it to exercise control over all branches of the company, and outlines further ways to improve it.