control system at any enterprise must be coherent and cover all phases of the business process from the initial stages of the creation of the enterprise, the original purchase of fixed assets and raw materials, to assess its performance.That consideration of the results of the company for a specific period and allows you to assess the effectiveness of its work.Since all performance of the company have a monetary value, then the procedure for such an assessment is defined as the analysis of financial results.This procedure is performed at each facility, as a rule, at the end of the year, after the financial statements.
What is the analysis of financial results of the company?In fact, it's pretty capacious computer work, for which the source data are taken in the official financial statements, and are calculated on the basis of additional indicators such as the ratio of financial stability, solvency ratio, and many others.Analysis of the financial results of the company may be carried out not only internal users of financial statements (managers and employees of the company), but also external - banks, potential investors, accounting firms and so on.It is from the results of this analysis will depend on their decision to grant the company a credit or investment funds, as well as the content of the audit conclusion.
Through analysis of financial results, is usually calculated in the following indices:
- Indicators of financial stability - the ability to define their own needs of the enterprise to provide funds available;
- Profitability index - shows how profitable the use of assets of varying degrees of liquidity in the company's activity;
- Business activity - relate to the speed of wrapping different kinds of assets.Business activity indicators show the duration of the production cycle of the enterprise, and what he is shorter - the more effective work of the company is based;
- Liquidity indicators - illustrate the relationship between different groups of assets, according to their ability to quickly be turned into money;
- solvency ratio - shows how the company is able to meet its obligations to the counterparty.
Typically, one of these five items and makes the analysis of the financial results of the company.After all the calculations carried out, it is time to describe them - and it comments on the calculations play a crucial role in the preparation of this analysis, the views of users and the adoption of certain decisions.As a rule, for the analysis of the best financial analysts are invited as the correct interpretation of the results of the analysis may depend on the fate of the company.
It is also important to remember that the majority of domestic enterprises Analysis of financial results are not always considered reliable by virtue of conducting so-called "black" accounting.The existence of the invisible in the official statements of the enterprise may be the reason that the actual situation may differ materially from what is described in the statement of income.That is why the CIS potential major investors and lenders rarely make their decisions based solely on the financial statements - such decisions are often based on personal arrangements with the management company of the recipient.Only radical reform of the existing economic system, especially in terms of taxation, can correct the situation.
