analysis of the company is to obtain a certain number of key parameters, with which you can see the most accurate picture of the financial position, profit or loss, any changes in the assets and liabilities, settlements with creditors and debtors.The specialists should be interested and the current state of the organization, and expected operating results.
analysis of the company aims to achieve certain goals, taking into account the information generated, organizational, methodological and technical capabilities of the analytical work on the basis of the accounting and financial reporting.
basic principle of consideration of the relevant material - deductive.However, it should be applied repeatedly.Analysis of the company plays a historical and logical sequence of events and economic factors to the direction and strength of their influence on the results.
Based on practice, economists worked out some rules of reading reports, among which are the basic:
- Horizontal analysis of the company, providing a comparison of specific positions of the previous reporting period;
- vertical analysis is to determine the structure of the resulting financial indicators to determine the degree of influence of each of them on the overall;
- trend analysis presented comparing each reporting positions with the corresponding results of the previous periods and determining the trend of the isolation of his individual characteristics, and random effects of certain periods;
- analysis of the relative performance - we calculate certain relations between certain positions with the definition of their relationships;
- the comparison is versus the same results the company and its competitors, as well as with the average data;
- factor analysis provides a review of the effects of certain circumstances the outcome using stochastic and deterministic methods of investigation.
Among the indicators that assess the effectiveness of the organization - profitability (such as investments), which is calculated by dividing net income for investments, which invested in the company.To assess the effectiveness on the basis of these calculations can only be in the event of the specialists of comparable data for similar businesses.
The same can be said about the profitability of the company, calculated as the ratio of net income to expenses.Cost analysis of the enterprise will be most effective if it is carried out in all areas of economic activity of the enterprise.
should also be noted that the assessment of a financial performance of the enterprise does not give a complete picture of its economic activities and does not allow to diagnose some problematic issues.
