assess the financial condition of the enterprise is based on the following steps:
- information collection and analytical processing over a specific period of time to be evaluated;
- study and classification of the indicators used for this assessment;
- calculation of the resulting indicator assessment;
- ranking entities rated.
As a result of the implementation of the third stage of qualitative analysis of financial results obtained rating evaluation takes into account the full range of key financial and operating parameters of the entity.In other words - a full analysis of economic activity.
Indicators of financial condition of the company include the following data: the production potential of a business entity, the profitability of its products, the effectiveness of the use of available financial resources.This also can be attributed sources of formation, condition and location of the other assets of the organization.
Justification and a choice of baseline indicators of the company are carried out on the basis of the main provisions of the theory of finance, as well as the needs of management's assessment.After all, a qualitative assessment of the financial condition of the enterprise can not be based on an arbitrary selection of indicators.
So, try to organize common indicators and disband them into four groups.
first group includes such important factors as the profitability of the business entities.Based on the theory, profitability is calculated as the ratio of net profit to the amount of assets of the enterprise (or its own funds).
second group of indicators is responsible for the evaluation of the effectiveness of company management.It is helpful to consider four common earnings: the carrying or gross, net, from sales and, finally, the overall rate - from throughout the implementation.The effectiveness of management of the organization determined by the ratio of earnings to sales of the subject.
assess the financial condition of the enterprise on the basis of the third group of indicators provides for assessment of the subject of business activity.This category coefficients calculated in several ways:
- the return of all types of assets - as a private revenue to the balance sheet;
- return on assets ratio - the ratio of revenue to the value of fixed assets together with intangible assets;
- asset turnover (number of revolutions) - the ratio of the same earnings, but now to the value of current assets.Similarly
estimated inventory turnover, bank assets, receivables, only the formula is used as the denominator value of the stock indices, and the total cash value of receivables, respectively.
Analysis of the financial condition of the organization with the fourth group of indicators is done through:
- assessment of the current liquidity ratio as a calculation of the value of current assets to liabilities that require repayment on an urgent basis;
- calculation of the critical liquidity ratio is the ratio of total current assets, including cash and receivables to fixed-term obligations.
Also in this group may be assigned indices of market stability of the organization: the index of fixed asset;provision of working capital available to the Company for debt reserves and other costs.
full assessment of the financial condition of the enterprise can not be realized without the use of inputs such as production volume and profits in the reporting period.
