Any entrepreneur would agree that to create a company is not as difficult as to organize production, giving a constant and considerable income.To be sure that the business is growing and profitable, periodically assess the financial condition of the company.This concept includes the whole system of interacting elements, which control all the funds of the enterprise.
rank factors such as profitability, financial stability and liquidity of banks and other necessities that determine the solvency of the company in order to identify the most appropriate way of lending and the interest rate.
in the financial condition of the enterprise affect all of its areas of activity.The key to getting a good and stable income for any organization is the regular production of quality and competitive products demanded by the market today.There are two ways to assess the financial condition: external and internal analyzes.For example, the external analysis required for reporting to regulatory bodies, partners and others, includes the following types of analysis:
- profit analysis,
- defined financial stability and liquidity, solvency and stability,
- profitability analysis,
- Analysisthe effectiveness of the borrowed funds and others.
One of the main types of external review are considered to be the definition of liquidity, solvency and related fields.The liquidity of the company is determined by the speed at which you can sell its assets and to gain funding.It is determined by the value of highly liquid assets in relation to short-term debt.When analyzing liquidity evaluate both current and future changes in the aforementioned ratio.
Liquidity is considered to be low if the company lacks the funds received.Profit from business activities, as well as finance the remaining amount after payment of liabilities and dividends, are the decisive factors in determining the financial capacity of the enterprise.That is why the liquidity and solvency of interrelated: the first defines the possibility of timely repayment of debt with your terms of payment.Obviously, for any bank, organizations and partners, dealing with it now advisable to know the forecasts of solvency not only for now but also for the near future.
If current assets are of greater value than short-term commitments - it indicates the liquidity of the company.Solvency of the company includes a comparison with short-term assets and long-term commitments.
Determine liquidity means likvidnoi analyze the balance, that is, the degree of exceeding the value of assets over liabilities.In this case, and take into account the assets and liabilities, and share the concepts implemented quickly and slowly realized assets.
High liquidity means that the company can not only pay off the necessary commitment, but also much faster to pay off debts to third parties.
addition liquidity is very important to find out, and the financial stability of the company, which is responsible for the solvency for the future.The assessment of financial stability is carried out to determine the stability and financial independence of the company, as well as the determination of the efficiency of capital in accordance with the initial declaration of economic activity.
Obviously, any enterprise wishing to optimize their work will not give up of the above analysis.After all, they can be used to conduct a review of economic activity to preserve the value of existing assets and prevent them from falling.
