qualitative carrying out a financial analyst and economic aspects of the functioning of an enterprise helps to make an assessment of the work done and correctly predict the change to achieve the greatest profits.To perform this procedure, as the analysis of the financial condition of the company involved or the financial manager of the enterprise that objective, hired skilled in the relevant company.In order to analyze the financial condition of the company was carried out fully, the financial manager must use all the accounting and statistical reporting of the enterprise in the current time and for previous periods.
The analysis is important to consider the absolute earnings, relative earnings, financial stability and balance sheet liquidity, efficiency of capital raised (if any).In-depth analysis of financial and economic activity of the enterprise takes place in several stages.Initially made available to read statements, and then held a deep professional types of analytical activities, they include the vertical method of analysis method of analysis of the trend and, finally, the calculation of the so-called coefficient of financial analysts.During the reading of statements studied performance of the company, made an analysis of the financial condition of the company, property status, use of long-term and short-term investments, sources of venture capital, communications with customers and suppliers, financial and credit companies, an assessment of income from operations and earnings this year.Horizontal analysis of the financial condition of the company reflects the trend of the changes Stateyny statements compared with the previous quarter, half-year and month.The vertical analysis of the estimate the proportion of individual Stateyny indicators, such as accounts receivable, with a total activity.Conducting trend analysis allows you to identify the main ways of development of the company in terms of reporting.A more detailed analysis of financial condition is obtained by comparing the indicators over several years of activity.
particular importance for financial management are financial ratios, which are the basis for the analysis of the company.The coefficients indicate the proportion of financial and rely on certain data base: common standards, the average in the industry, the performance of the company in previous years, data on the activities of other companies, other indicators of the company.Calculations of the coefficients is not particularly difficult, but make it possible to make more accurate conclusions and make a more feasible and optimal probable forecasts, determine the most weaknesses in the enterprise.Conducted by qualified managers analysis of financial and economic activity of the enterprise - this is not only for the head of the document, which is based on the results of the company will be able to evaluate the work and identify activities to improve it.Such a document can be made for external users - banks, which are based on its performance decide on granting loans, stock market participants, determining the value of shares of the company or investors decide whether investments.
manager conducting the analysis should have skills and experience in this type of activity because it is responsible to the head of the company's proposed recommendations for improvement, the accuracy of the data that make up the "financial image" of the enterprise.
