Valuation of financial parameters and performance indicators of the company, including the analysis of the problems are one of the key, since they indicate that the economic health of the company and indicate problems that can lead to significant complications and even insolvency or bankruptcy.
Key performance indicators of the company - it is a long list of parameters, to some extent reflecting the results and efficiency of economic activities.One important indicator is the financial stability.
Generalized performance indicators of the company, as a rule, are formed on the basis of the understanding that for making decisions on managing financial stability need constant business awareness, which is the result of the analysis and evaluation of information.The choice of a technology is determined by the evaluation of the goals and objectives of the study, as well as in a number of cases, and the degree of availability of reliable baseline information.Among other things, each method or procedure has strengths and weaknesses and their impact on the performance indicators of the company.
widely used horizontal, vertical and trend methods allow to give a preliminary assessment of the level of sustainability, stating only absolute changes of an indicator of financial stability, without revealing information about the inner nature of the changes and no effect, in fact, on the other performance indicators.In addition, such a methodology is very poorly reflect the current dynamic changes in the quality of the company.
comparative method in content provides more information than the above, but for today, in some cases impossible to apply it qualitatively as a reliable industry statistics are not available.
analysis of existing technologies and procedures of valuation activity, suggests that the most informative have a valuation method based on factors and factor, so they are widely used in the practice of evaluating the performance of companies in general and financial stability in particular.
However, coefficient method of evaluation has quite a few of their own drawbacks.The most important are:
- coefficient: calculations only reveal but do not explain the dynamics of changes in financial condition.This situation reflects the state of the company is only at the beginning and end of the reporting period.Everything that happens between these dates are not taken into account.
- the calculated ratios are not economic sense, so it is necessary to compare them with indicators of "external" sources, that in modern conditions quite difficult for reasons of technical and material.
most common of the existing analytical techniques, a factor analysis.A strong feature of the factor approach is that in the process of the settlement are the raw data standardization and regulation and lose at the same dimension.This allows you to use the model to analyze the different periods without further correction for inflation.This analysis methodological tools defined by the fact that in the analysis of the main performance is:
- improvement of information security;
- development of techniques for integrated nature, allowing to analyze the state of the company at a reasonable set of operational and financial metrics and ratios.
