Due to the unstable financial situation. Analysis of the financial condition of the enterprise. Low solvency caused by liquidity shortage

Currently, most of Russian enterprises are experiencing financial difficulties. This is due not only to the general situation in the country, but also to the weakness of financial management at enterprises. The lack of skills to adequately assess their own financial condition, analyze the financial consequences of decisions made, put many organizations on the brink of bankruptcy.

In accordance with the Federal Law "On Insolvency (Bankruptcy)" (Federal Law of the Russian Federation of October 26, 2002 No. 127-FZ), insolvency (bankruptcy) is understood as the inability of the debtor to fully satisfy the creditors' claims for monetary obligations and to fulfill obligations to pay mandatory payments to the budget and extra-budgetary funds.

External signs of insolvency is the suspension of its current payments, if the company does not provide or knowingly is not able to ensure the fulfillment of creditors' claims within three months from the date of their due date.

Bankruptcy arises if there is no constant analytical work aimed at identifying and neutralizing hidden negative tendencies. Bankruptcy Prediction As Shows Foreign experience, possibly 1.5-2 years before obvious signs appear. In its development, bankruptcy goes through several stages: a latent stage, a stage of financial instability, obvious bankruptcy.

At the latent stage, an imperceptible decrease in the "price" of the enterprise begins due to unfavorable trends both inside the enterprise and outside it. Analysis of the latent stage of bankruptcy can be carried out using the so-called "enterprise price" formulas.

A decrease in the price of an enterprise can mean either a decrease in its profitability or an increase in the average cost of liabilities. The decline in profitability occurs under the influence of various reasons - internal and external. A significant part of the internal reasons can be defined as a decrease in the quality of management decisions. Most external causes are a manifestation of a general deterioration in the business environment.

At the stage of financial instability, difficulties with cash begin, and some early signs of bankruptcy appear: abrupt changes in the structure of the balance sheet and the income statement.

At the third stage, the company cannot pay debts on time, and bankruptcy becomes legally obvious. Bankruptcy manifests itself as an imbalance cash flows... An enterprise can go bankrupt both in the context of industry growth, even a boom, and in conditions of industry slowdown and recession. In conditions of a sharp rise, competition increases, and in a recession, growth rates fall.

In all cases, the reason for bankruptcy is an incorrect assessment by the managers of the enterprise of the expected growth rates of their enterprise, for which sources of additional, as a rule, credit financing are found in advance.

Today, the most acute problem is the emergence of financial instability of organizations, therefore, it is at this stage of bankruptcy that we will focus on and consider it in more detail.

At the stage of financial instability, external signs of an impending crisis appear. There are delays in payments, violation of the terms of contracts, difficulties with cash, conflicts at the enterprise, financial indicators do not fit into the norm.

First of all, from the point of view financial analysis this stage makes itself felt through the indicators of liquidity and financial stability. Liquidity indicators allow you to determine the ability of an enterprise to pay its short-term obligations by selling its current assets. Here the analysis of liquidity of the balance sheet structure, determination of liquidity and financial stability ratios is applied.

At this stage, abrupt changes in any stage of the balance in any direction are undesirable. However, of particular concern should be:

Sharp decrease Money on accounts;

An increase in accounts receivable (a sharp decline also indicates difficulties with sales, if accompanied by an increase in stocks of finished goods);

Aging of accounts receivable;

Imbalance of accounts receivable and payable (a sharp decline, in the presence of money in the accounts, also indicates a decrease in the volume of activity);

Decrease in sales volumes.

A sharp increase in sales may also turn out to be unfavorable. in this case, bankruptcy may occur as a result of the subsequent imbalance of debts, if an ill-considered increase in purchases and capital expenditures follows. In addition, an increase in sales may indicate a dumping of products before the liquidation of the enterprise.

When analyzing the work of an enterprise, the following should also cause alarm:

Delays in reporting;

Conflicts at the enterprise, dismissal of someone from the management, a sharp increase in the number of decisions made.

Enterprises experiencing rapid growth in activity require increased attention. They can go bankrupt due to erroneous calculations of efficiency, unbalanced debts.

At the stage of financial instability, management often resorts to cosmetic measures: it continues to pay high dividends, increase debt capital, selling part of the assets in order to allay investors' suspicions. When the financial situation deteriorates, managers often become prone to illegal actions.

Consider the financial problems of organizations in Russia in 1997-2007 (see table 5).

Table - 5 Assessment of factors limiting the business activity of organizations (as a percentage of the total number of basic organizations)


Lack of funds
Insufficient demand for the organization's products within the country
Uncertainty in the economic environment
Lack of proper equipment
High competition from foreign manufacturers
Insufficient demand for the organization's products abroad

Consider also the statistics on the debts of organizations in Russia in 2007 (see table 6).

Table - 6 Structure of accounts payable and receivable of organizations by type economic activity in 2007 (at the end of the year; as a percentage of the total)

Sector name	Accounts payable	Receivables
	Overdue		Overdue

Including by type of activity:
agriculture, hunting and forestry
fishing, fish farming
mining
manufacturing industries
construction
wholesale and retail; repair of vehicles, motorcycles, household goods and personal items
hotels and restaurants
transport and communication
financial activities
real estate transactions, rental and service provision
research and development
public administration and military security; compulsory social security
education
health care and social services
provision of other communal, social and personal services

Emergence financial problems enterprises, namely financial instability due to a number of reasons. These reasons can be divided into two main groups: external (not dependent on the activities of the enterprise) and internal (depending on the activities of the enterprise).

External causes of financial instability include:

1) Socio-economic reasons:

Rising inflation;

Instability of the tax system;

Instability of regulatory legislation;

Decrease in the level of real incomes of the population;

Rising unemployment.

2) Market reasons:

Decrease in the capacity of the domestic market;

Strengthening of monopoly in the market;

Instability of the foreign exchange market;

Increase in the supply of substitute goods.

3) Other external reasons:

Political instability;

Natural disasters;

Deterioration of the crime situation.

TO internal reasons the occurrence of financial instability of enterprises include:

1) Management reasons:

Ineffective financial management;

Poor management of production costs;

Lack of flexibility in management;

High level of commercial risk;

Insufficient knowledge of market conditions.

Insufficient quality system accounting and reporting

Production reasons:

Lack of unity of the enterprise as a property complex;

Outdated and worn out fixed assets;

Low labor productivity;

High energy consumption;

Congestion with social facilities.

Market reasons:

Low competitiveness of products;

Dependence on a limited range of suppliers and buyers.

Of course, all of the above reasons may underlie the financial instability of an enterprise, but managerial reasons have a greater impact on the financial condition. In other words, if the financial management of an enterprise is poorly organized, diagnostics of the condition is not carried out in a timely manner, and if any financial difficulties arise, appropriate measures are not taken, financial instability arises and, as a result, bankruptcy.

Therefore, in order to prevent the emergence of financial instability, it is necessary to constantly assess the financial condition of the enterprise, and, on the basis of the data obtained, develop directions for its improvement.

Maintaining the required level of financial stability is important at any time, but it becomes especially significant during a period of economic instability - when there are fewer ways to retreat, and the future is difficult to predict, even a minor violation of solvency can have fatal consequences.

In financial theory, there are 4 levels of financial stability.

1. Absolute financial stability

The sum of stocks and costs< Собственные working capital

In this case, the company is completely independent from creditors, and all its needs are covered by its working capital. Despite the fact that at first glance this situation may seem extremely successful, it has quite obvious drawbacks: a complete rejection of long-term borrowed funds means that you are missing out on significant profits. Accordingly, this option is extremely rare in real practice.

2. Normal financial stability

Own working capital< Сумма запасов и затрат < Собственные оборотные средства + Долгосрочные пассивы

The company uses equity capital on a par with long-term loans. This option is considered optimal for sustainability - the company does not run the risk of being faced with the inability to pay off debts, but does not miss the potential profit.

However, it is important to remember that the formally normal level of financial stability also includes borderline situations, which in fact cannot be called normal. If the size of the loan is insignificant against the background of its own funds, the company is close to absolute stability and, probably, does not operate efficiently.

3. Unstable financial situation

Own working capital + Long-term liabilities< Сумма запасов и затрат < Собственные оборотные средства + Долгосрочные пассивы + Краткосрочные кредиты и займы

At this level, the organization has some difficulties with solvency and for its further functioning it has to resort to short-term loans. However, the situation cannot yet be called critical - a timely and competent reaction to what is happening may well return it to a normal level of stability.

An unstable situation is usually accompanied by interruptions in payments and cash flow to accounts, periodic changes in the level of profitability and failure to fulfill the financial plan.

4. Crisis financial situation

Own working capital + Long-term liabilities + Short-term loans and borrowings< Сумма запасов и затрат

The company is no longer able to restore its solvency - any attempts to cover costs only lead to an increase in debt. The next step is usually bankruptcy.

Financial sustainability: summing up

So, there are several levels of financial stability:

Absolute - the company lives without loans, only at its own expense
Normal - the amount of available loans is not critical, own funds allow you to pay off loans on time
Unsustainable - own funds do not cover expenses, the workflow is not stable, there are delays, delays in employee payments and tax deductions
Crisis - the company is in a state of bankruptcy.

Two main parameters are involved in the calculation of the financial stability indicator - the amount of own assets and the amount of liabilities to counterparties, creditors.

Financial stability assessment should be carried out at least once a year.

The concepts of solvency and liquidity are very close, but the second is more capacious. Its solvency depends on the degree of liquidity of the balance sheet and the enterprise. At the same time, liquidity characterizes both the current state of settlements and the future. An enterprise may be solvent at the reporting date but have unfavorable future opportunities, and vice versa.

Liquidity Is a way to maintain solvency. But at the same time, if the company has a high image and is constantly solvent, then it is easier for it to maintain its liquidity.

Balance sheet liquidity is the basis (foundation) of the company's solvency and liquidity. The analysis of the liquidity of the organization is an analysis of the liquidity of the balance sheet and consists in comparing funds for an asset, grouped by the degree of liquidity and arranged in descending order with liabilities for liabilities, combined by maturity in ascending order of maturity (Table 2).

An enterprise is considered liquid if its current assets exceed its current liabilities. The real degree of liquidity and its solvency can be determined based on the liquidity of the balance sheet.

Table 2. - Classification of assets and liabilities of the enterprise according to the degree of liquidity

Indicator name	Calculation formula
The most liquid assets (A 1 )	p. 260 + p. 250 balance sheet
Quick-selling assets (A 2 )	page 240 + page 270
Slowly traded assets (A 3 )	page 210 + page 220 + page 230 - page 217
Hard-to-sell assets (A 4 )
Most urgent obligations (P 1 )	page 620 + page 630 + page 660
Short-term liabilities (P 2 )
Long-term liabilities (P 3 )
Permanent liabilities (P 4 )	page 490 + page 640 + page 650 + page 217

The balance sheet is considered liquid subject to the following ratios of groups of assets and liabilities:

A 1 ≥P 1 A 2 ≥P 2 A 3 ≥P 3 A 4 ≤P 4 (1)

Failure to meet one of the first three inequalities indicates a violation of balance sheet liquidity. At the same time, the lack of funds in one group of assets is not compensated by their surplus in another group, since compensation can only be in value; in a real payment situation, less liquid assets cannot replace more liquid ones.

For determining the solvency of the enterprise the following factors are used, given in table 3.

The analysis of these coefficients is carried out by comparing with similar indicators of previous years, with intra-company standards and planned indicators, which makes it possible to assess the company's solvency and make appropriate management decisions, both operational and in the future.

Table 3. - Indicators of the company's solvency

Indicator name	Calculation formula	Standard	Indicator value
Absolute liquidity ratio	page 250 + page 260 / page 610 + page 620 + page 630 + page 660		What part of the current debt can be repaid in the near future
Current liquidity ratio	II section of the balance sheet - line 220 - line 230 / line 610 + line 620 + line 630 + line 660	2 or more	To what extent current assets cover current liabilities
Intermediate Coverage Ratio	Section II of the balance sheet - line 210 - line 220 - line 230 / line 610 + line 620 + line 630 + line 660		Projected payment capacity of the enterprise
Total solvency ratio	page 190 + page 290 / page 460 + page 590 + page 690 - page 640 - page 650	2 or more	The ability to cover all your liabilities with all available assets
Long-term solvency ratio	page 590 / page 490 + page 640 + page 650	as high as possible	The ability to repay long-term loans and the ability to work for a long time
Own working capital ratio	Total for section III of the balance + amount of line 640,650 - total for section I of the balance / total for section III of the balance	as high as possible	Part of own enterprise capital which is the source of coverage for current assets
Maneuverability ratio of functioning capital	p. 260 / own working capital		Part of own circulating assets, which is in the form of cash

It is obvious that the highest form of enterprise stability is its ability not only to pay off its obligations on time, but also to develop in the conditions of the internal and external environment. To do this, it must have a flexible structure of financial resources and, if necessary, be able to both attract borrowed funds and timely repay the borrowed loan with payment of the due interest at the expense of profit or other financial resources, i.e. be creditworthy.

Financial stability of the enterprise Is the ability of a business entity to function and develop, to maintain a balance of its assets and liabilities in a changing external and internal environment, which guarantees its constant solvency and investment attractiveness within the acceptable level of risk.

To ensure financial stability, an enterprise must have a flexible capital structure, be able to organize its movement in such a way as to ensure a constant excess of income over expenses in order to maintain solvency and create conditions for self-reproduction. During the production process, the company is constantly replenishing inventories. For these purposes, both its own circulating assets and borrowed sources (short-term credits and loans) are used. Studying the surplus or lack of funds for the formation of reserves, absolute indicators of financial stability are established. For a detailed reflection of different types of sources in the formation of reserves, the system of indicators shown in Table 4 is used.

Table 4. - Absolute indicators of the financial stability of the enterprise

№ p / p	Indicator name	Calculation formula
	Own working capital (SOS)	Equity capital (SC) - non-current assets (VOA)
	Own and long-term borrowed funds(SDI)	Own working capital (SOS) + long-term loans and borrowings (DKZ)
	Main sources of reserves formation (OIZ)	Own and long-term borrowed funds (SDI) + short-term loans and borrowings (KKZ)
	Surplus (shortage) of own working capital	Own working capital (SOS) - reserves (Z)
	Surplus (shortage) of own and long-term borrowed funds (∆SDI)	Own and long-term borrowed funds (SDI) - reserves (Z)
	Surplus (shortage) of the total value of the main sources of coverage of reserves (∆OIS)	Own and long-term borrowed funds (SDI) + short-term loans and borrowings (KKZ) - reserves (Z)
	Three-factor model of financial stability (M)	(∆СОС; ∆СДС; ∆ОИЗ)

In practice, there are four types of financial stability.

The first type of financial stability can be represented as the following formula:

М 1 = (1; 1; 1), i.e. ∆СОС> 0; ∆ SDI> 0; ∆OIS> 0. (2)

The second type of financial stability (normal financial stability) can be expressed by the formula:

М 2 = (0; 1; 1), i.e. ∆СОС<0; ∆СДИ>0; ∆OIS> 0. (3)

Normal financial stability guarantees the fulfillment of the company's financial obligations.

The third type (unstable financial condition) is established by the formula:

М 3 = (0; 0; 1), i.e. ∆СОС<0; ∆СДИ<0; ∆ОИЗ>0. (4)

The fourth type (financial crisis) can be represented as follows:

М 4 = (0; 0; 0), i.e. ∆СОС<0; ∆СДИ<0; ∆ОИЗ<0. (5)

In this situation, the company is completely insolvent and is on the verge of bankruptcy.

Schematically, the types of financial stability, a brief description and sources of funding for reserves are presented in Table 5.

Table 5. - Types of financial stability of the enterprise

Financial strength type	3D model	Funding Sources	Brief description of financial stability
1.Absolute financial stability		Own working capital	High level of solvency. The company does not depend on external investors
2. Normal financial stability		Own working capital and long-term loans and borrowings	Normal solvency. Rational use of borrowed funds, high profitability of current activities
3. Precarious financial condition		Own working capital, long-term and short-term loans and borrowings	Violation of normal solvency. There is a need to attract additional sources of financing, it is possible to restore solvency
4.Crisis (critical) financial condition			The company is completely insolvent and is on the verge of bankruptcy

So, the financial condition can be stable, unstable (pre-crisis) and crisis. An enterprise's ability to make payments on time, finance its operations on an extended basis, withstand unexpected shocks and maintain its solvency in adverse circumstances is indicative of its sound financial health, and vice versa.

Assessment of financial stability is based mainly on relative indicators, since the absolute balance sheet indicators in conditions of inflation are rather difficult to bring into a comparable form.

To assess financial stability, a system of coefficients is used, the calculation of which is shown in Table 6.

Table 6. - Relative indicators of the financial stability of the enterprise

Indicator name	Calculation formula	Standard	Indicator value
1.The coefficient of autonomy	(Total for section III of the balance sheet + line 640,650) / line 700	As high as possible	The share of the owners of the enterprise in the amount of funds advanced for its activities
2.Funding Ratio	Page 490,640,650 / the sum of sections IV and V of the balance sheet - line 640,650	less than or equal to 1	Borrowed funds attributable to the ruble of own funds invested in assets
3. Equity capital flexibility ratio	(Total for section III of the balance + line 640,650 - total for section I of the balance) / (Total for section III of the balance + line 640,650)		What part of equity capital is invested in working capital, and what part is capitalized
4. Coefficient of financial stability	(Total for section III of the balance + line 640,650 + total for section IV of the balance) / line 700	more than 0.5	Share of long-term funding sources in balance sheet total
5.The coefficient of the structure of long-term investments	Total for section IV of the balance sheet / Total for section I of the balance	As less as possible	What part of fixed assets and other non-current assets is financed from a long-term borrowed source

The relative indicators of the analyzed enterprise can be compared:

With generally accepted "norms" for assessing the degree of risk and predicting the possibility of bankruptcy;

Similar data from other enterprises, which allows you to identify the strengths and weaknesses of the enterprise and its capabilities;

Similar data for previous years to study the trends of improvement or deterioration in the financial condition of the enterprise.

Thus, the main purpose of any type of financial analysis is to assess and identify the internal problems of the enterprise for the preparation, substantiation and adoption of various management decisions, including in the field of development, recovery from the crisis, transition to bankruptcy procedures, purchase and sale of a business or a block of shares, attracting investments (borrowed funds).

The reference financial condition is characterized by the fact that the financial indicators included in the rating model have normative (recommended) values. The reference state corresponds to the rating value equal to R e = 1.

The risk assessment scale takes into account the degree of deviation of the actual value of the rating number from the reference value. The grading of the assessment is an approach characteristic of relative indicators, in particular, the risk ratio.

Current liquidity ratio (standard value K tl ≥2);

Equity ratio (standard value К oss ≥ 0.1);

Working capital turnover ratio (standard value K about = 6);

Return on equity ratio (standard value Кр ≥ 0.2).

Calculated dependencies for the listed indicators are given in table. 7.

Table 7. -Indicators and design models

Index	Design model
TO tl	page 290 . with bldg. (610 + 620 + 630 + 660)
TO oss	pp. (490-190) . with
TO about	p. 010 F2 . with
TO R	p. 050 F2 . with

Weight coefficients (r i) for indicators - factors are determined by the dependence

where L is the number of indicators used;

N i - standard value for the i-ro indicator.

Five-factor model of rating financial analysis has a construction close in content to (4.1). Factors-signs that characterize liquidity, financial stability and independence reflect the current liquidity ratio (K tl) and the equity ratio (K oss).

To characterize business activity and profitability, the following financial ratios were adopted (Table 8):

The turnover ratio (K "about) assets (K" about = 2.5);

Commercial margin (K m) - profitability of product sales (K m = 0.45);

Return on equity (K p) (K p> 0.2).

Table 8. -Indicators and calculatedmodel

Index

Design model

TO tl

page 290 .

with

bldg. (610 + 620 + 630 + 660)

TO oss

pp. (490-190) .

with

TO" about

p. 010 F2 .

with

TO R

p. 010 F2 .

with

TO m

p. 050 F2 .

Calculation of three indicators of the provision of inventories with sources of their formation allows us to classify the financial position of an enterprise according to the degree of its stability into the following four types:

1. Absolute financial stability;
2. Normal financial stability;
3. Unstable financial situation
4. Crisis (critical) financial situation

The absolute stability of the financial situation develops when the situation is characterized by inequality

3<Сок или Сок > 3,

where З - inventories and costs,

Juice - having its own working capital.

This comparison suggests that inventories are covered by their own working capital, i.e. the company does not depend on external loans. This situation is extremely rare. Moreover, it can hardly be regarded as ideal, since it means that the administration is not able, unwilling or unable to use external sources of funds for its main activities.

Normal financial stability is characterized by inequality:

Juice.<3< ОИ,

where OI - surplus (+) or shortage (-) of the total value of the main sources of formation of reserves.

The given ratio corresponds to the situation when a successfully functioning enterprise uses various "normal" sources of funds - its own borrowed funds - to cover inventories.

A precarious financial situation occurs when the current situation is characterized by the following inequality:

3> OI or OI<3.

This ratio corresponds to the situation when the company is forced to attract additional sources of coverage to cover part of its inventories, which are not, in a sense, "normal", ie. reasonable. A crisis (critical) financial situation is characterized by a situation when, in addition to the previous inequality, the company has loans and borrowings that have not been repaid on time, as well as overdue payables. This situation means that the company cannot pay off its creditors on time, it is on the verge of bankruptcy, i.e. cash, short-term securities and accounts receivable do not even cover his accounts payable and overdue loans.

In a market economy with a chronic repetition of the situation, the company must be declared bankrupt.

Financial stability can be normalized due to the urgent sale of finished products in stock at the end of the year.

Determine the financial position of the analyzed enterprise.

As part of the internal analysis, an in-depth study of the financial stability of the enterprise is carried out on the basis of building an insolvency balance, including the following interrelated groups of indicators:

The total amount of non-payments:

- overdue debts on bank loans;
- overdue debt on the settlement documents of suppliers;
- arrears to the budget;
- other non-payments, including wages.

Reasons for non-payments:

- lack of own working capital;
- excess stocks of inventories;
- goods shipped, not paid on time by buyers;
- goods in custody with buyers in view of refusal of acceptance;
- immobilization of working capital in capital construction, in the debt of employees for the ships they received, as well as expenses not covered by the funds of the intended sources of financing.

Sources of Easing Financial Tensions:

- temporarily free own funds;
- borrowed funds (excess of normal accounts payable over accounts receivable);
- bank loans for temporary replenishment of working capital and other borrowed funds.

With full consideration of the total value of non-payments and sources that weaken financial tension, the total for group 2 should be equal to the sum of the results for groups 1 and 3. To analyze the financial situation, payment discipline and credit relations, it is recommended to consider these indicators in dynamics (for example, quarterly).

Along with the sources of the formation of inventories, the turnover of both the entire working capital and especially the material working capital is important for the financial situation, which is expressed in a relative decrease in inventories.

An in-depth analysis of the state of inventories acts as an integral part of the internal analysis of the financial situation, since it is not contained in the financial statements and, to a certain extent, belongs to the area of commercial secrets.

In conclusion, it should be noted that in the special literature there are also a slightly different classification of enterprises according to the current financial situation. They are divided into four groups, but with the following names:

- an enterprise with a good financial condition;
- an enterprise with an average financial condition;
- an enterprise with a poor financial condition;
- the company is bankrupt.

At the same time, the financial condition of a manufacturing enterprise is considered from the point of view of the following main areas of spending:

1. ensuring normal (uniform) production, economic and reproduction activities;
2. modern calculations for long-term credits and loans;
3. the possibility of financing large-scale projects for the development of the enterprise (mastering new sectors of the markets, expanding the volume of production, mastering new types of products, etc.).

Based on the possibility of providing financial resources for these areas of spending, the authors of this point of view assume their own methodology for assessing the financial position of an enterprise and attributing it to one or another group. So, if the financial resources available at the location of the enterprise allow it to perform all three functions, then its position should be recognized as good. If the first two functions are fulfilled, and the non-fulfillment of the third is not enough, the state is considered average. If the funds are not enough even to perform the first functions, then the financial position of the enterprise is close to bankruptcy (insolvency).

In market conditions, when the economic activity of the enterprise and its development is carried out through self-financing, and in case of insufficient own financial resources - through borrowed funds, an important analytical characteristic is the financial stability of the enterprise.

Financial stability is a certain state of the company's accounts that guarantee its constant solvency. As a result of the implementation of any business transactions, the financial condition of the company may remain unchanged, either improve or deteriorate. The flow of business transactions carried out annually is, as it were, a “disturber” of a certain state of financial stability, the reason for the transition from one type of stability to another. Knowing the marginal boundaries of changes in the sources of funds to cover capital investment in fixed assets or production stocks allows you to generate such flows of business transactions that lead to an improvement in the financial condition of an enterprise, to an increase in its stability.

The task of analyzing financial stability is to assess the size and structure of assets and liabilities. This is necessary in order to answer the questions: to what extent the organization is independent from a financial point of view, whether the level of this independence is growing or decreasing, and whether the state of its assets and liabilities meets the objectives of its financial and economic activities.

In practice, they use different methods of analyzing financial stability. Let's analyze the financial stability of the enterprise using absolute indicators. To summarize, the indicator of financial stability is the surplus or lack of sources of funds for the formation of stocks and costs, which is determined as the difference between the amount of stocks and costs.

The total amount of inventories and costs is the amount of the balance sheet asset

To characterize the sources of formation of stocks and costs, several indicators are used that reflect different types of sources:

1. Availability of own circulating assets;
2. Availability of own and long-term borrowed sources of formation of reserves and costs or functioning capital;

One of the most important characteristics of the financial condition of an enterprise is the stability of its activities in the light of a long-term perspective. It is associated with the general financial structure of the enterprise, the degree of its dependence on creditors and investors.

Financial stability in the long term is characterized, therefore, by the ratio of own and borrowed funds. However, this indicator provides only a general assessment of financial stability. Therefore, in the world and domestic accounting and analytical practice, a system of indicators has been developed. Equity capital concentration ratio. It characterizes the share of enterprise owners in the total amount of funds advanced for its activities. The higher the value of this ratio, the more financially stable, stable and independent of external loans the company. An addition to this indicator is the concentration ratio of the attracted (borrowed) capital - their sum is equal to 1 (or 100%).

Financial dependence ratio. It is the inverse of the equity concentration ratio. The growth of this indicator in dynamics means an increase in the share of borrowed funds in the financing of the enterprise. If its value drops to one (or 100%), this means that the owners fully finance their enterprise.

Equity capital flexibility ratio. Shows how much of equity is used to finance current activities, i.e. invested in working capital, and what part is capitalized. The value of this indicator can vary significantly depending on the capital structure and industry sector of the enterprise. Long-term investment structure coefficient. The calculation logic for this indicator is based on the assumption that long-term loans and borrowings are used to finance fixed assets and other capital investments. The coefficient shows what part of fixed assets and other non-current assets is financed by external investors, i.e. (in a sense) belongs to them, not the owners of the enterprise. The ratio of own and borrowed funds. Like some of the above indicators, this ratio gives the most general assessment of the financial stability of the enterprise. It has a rather simple interpretation: its value equal to 0.25 means that for every tenge of own funds invested in the company's assets, there are 0.25 borrowed funds. The growth of the indicator in dynamics testifies to the increased dependence of the enterprise on external investors and creditors, i.e. about a certain decrease in financial stability, and vice versa.

Accounting (business) and economic costs

The firm's financial statements reflect the actual "accounting" ("explicit") costs, which represent the cash costs of materials, raw materials, labor, depreciation, i.e. to pay for the resources used (external). However, the economic approach to determining the amount of costs is somewhat different from the accounting one. The essence of the economic approach is expressed in the concept of opportunity costs (or economic, opportunity costs) - this is the possible cash proceeds from the most profitable of all alternative ways of using one's own resources.

Implicit costs- these are the incomes that could be received on their own resources if they were provided for a payment set by the market to other users (interest on equity, rent for own premises, payment for managerial work of the entrepreneur himself).

Accounting and economic profit.

The difference between them arises from the difference in the definition of accounting costs and economic costs, since income is determined in the same way. The economic profit is less than the accounting profit by the amount of the average profit that can be obtained on the entrepreneur's own capital and labor. Economic profit is equal to accounting profit minus internal costs, see table. 9-2.

Table 9-2

Cost and benefit structure

The elements of accounting for the income and expenses of the enterprise are presented in table. 9-3.

Table 9-3

Enterprise income and expenses

Note that both calculation options are correct. The first result answers the question - is it profitable or not profitable to produce this type of product, and the second - is it profitable or not profitable for an entrepreneur to engage in this particular type of business.

Profit- excess of income (proceeds) from the sale of goods and services over production costs. General approach to increasing profits:

Gross profit- the difference between the total income and costs (expenses) of the enterprise.

Net (or balance sheet) profit - profit after taxes.

The maximum of one type of profit (of the named ones) corresponds to the maximum of another type of profit, so we will simply talk about maximizing profits.

Any company always faces the question - what volume of products to produce and, accordingly, offer on the market?

There are two methods of optimizing a firm's performance in the short run.

First method: comparison of gross income with gross costs: even if the firm has zero production, it has losses (negative profit) equal to its fixed costs. From the graph (see Figure 9-4) it follows that even if there is no level of production with positive profits, the firm can and should produce products if the losses are less FC.

On the image:

TR- gross income (Total Revenue), TR = PQ;

points A and V- points of critical volume.

Output: In the short term, production should be carried out if the firm can receive: or profit;

or a loss that is less than FC.

How much to produce?

Such a volume of production in order to maximize profits (Fig. 9-4), the segment CD- maximum profit with optimal production volume Q 0.

Or minimize losses (see Figure 9-5).

In fig. 9-5 shows the case of minimizing losses when FC> loss AB.

Rice. 9-5. The case of minimizing losses (loss AB< FC)

In fig. 9-6 shows the case of closing a firm.

Rice. 9-6. The case of company closure ( FC< lesion AB)

The second method of optimizing the firm's performance comparing marginal revenue (MR) with marginal cost (MC). MR = ΔTR / ΔQ, with ΔQ = 1.

The optimal state is achieved when MR = MC.

In a particular case, for a competitive firm MR = P, then the optimum is attained at P = MC and production volume Q 1, see fig. 9-7.

Increase MC with an increase Q occurs due to the law of diminishing returns in the short run(the law of decreasing profitability of the factor).

Rub. MC

Rice. 9-7. Optimization of production volumes in the short term

To determine the size of the optimal output, the monopolist uses the same criterion as the perfect competitor, focusing on the equality of marginal income and marginal costs. Providing this equality, the maximum profit is achieved (see Figure 9-8).

Rice. 9-8. Optimal output for monopoly ( MR = MC)

The optimal output for a monopoly is determined by the projection of the intersection point of the marginal revenue and marginal cost curves (point H). Q m- production output that maximizes the profit of the monopoly, P m- the price assigned by the monopolist.

Consider in more detail the following Figure 9-9, which is based on Fig. 9-3.

The firm's offer matches the top of the line MC, from point A the intersection of this line with the line AVC... Indeed, at the point A price P 1 only compensates for variable costs, which corresponds to equality AB = FC(see Figures 9-4 and 9-5), i.e. it is the boundary between closing a firm and minimizing losses.

To analyze the position of the firm, it is important to compare costs ATC and product price P.

The first field is characterized by a low price level ( P< P 1 ). At such prices, the firm will not even be able to recover its variable costs, so it will be forced to cease its activities.

The second field is called the field of unstable position of the firm where it can only recover its variable costs and seeks to find a more efficient alternative direction of its activities.

The third field is the most favorable for the firm. Point B corresponds to the lowest price value at which the firm can break even. If the market price is established above point B (Figure 9.3), then the firm begins to make economic profits.

We examined a way to maximize profits through the optimal choice of production volumes.

Another possibility is cost reduction. Consider the long term - all factors can be viewed as variables. Economies of scale in the long run is represented by the declining part of the long-term average cost curve LAC (Long Average Costs) See Figure 9-10. ATC 1 - ATC 6 average cost lines for different firm sizes.

According to Fig. 9-9 increasing the scale of production (the size of the firm) can reduce average costs and increase profits.

However, one should not think that the cost values LAC will in all cases decrease with an increase in production volumes Q... For different industries, cost curves LAC are presented in Figure 9-11.

By increasing the scale of production, they can save on costs (reduce AC) only firms for which there is economies of scale production ( cm. LAC 3 in fig. 9-11).

Cost savings(reduction AC)- one of the sources of profit, a factor in increasing production efficiency.

For each enterprise in any industry, savings should affect each of the groups (items) of costing, they determine the directions of cost savings:

Increase in labor productivity, equipment;

Reduction of losses;

Improving the use of raw materials and materials, energy, increasing the yield of final products, the use of secondary resources and waste;

Raising the technical level of production;

Improving the organization, changing the volume and structure of production.

The efficiency of the enterprise

The effect is an absolute value - the result of the production process.

The company simultaneously makes short-term production decisions and plans to change factors in the long term in order to maximize profits . This requires the choice of the most effective option for organizing the production process, which allows using fewer factors at the same level of finished product output.

Cost minimization rule- the rule according to which the costs of a given volume of production are minimized when the last ruble spent on each resource gives the same marginal product.

Producer equilibrium condition is achieved when it provides maximum output for a given amount of available capital.

The law of diminishing productivity lies in the fact that the marginal product, with a change in any of the variable factors affecting the volume of production, will decrease as the scale of the involvement of this factor in the short run increases.