home Warm floor Analysis of financial results on the balance sheet. Methodology for analyzing the balance sheet of an enterprise

Analysis of financial results on the balance sheet. Methodology for analyzing the balance sheet of an enterprise

Analysis of the balance sheet (financial statements) of an enterprise is a rather labor-intensive process, during which, first of all, during a preliminary assessment of the accounting (financial) statements, we identify and evaluate the dynamics of “sick” reporting items of two types:

Evidence of the extremely unsatisfactory performance of a commercial organization in the reporting period and the resulting poor financial position (uncovered losses, overdue loans and borrowings and accounts payable and so on.);
Evidence of certain shortcomings in the organization’s work, which, if they are regularly repeated in the reporting of several adjacent periods, can significantly affect the financial position of the organization (overdue accounts receivable, debt written off to financial results, fines, penalties, penalties collected from the organization, negative net cash flow, etc.).

Balance sheet analysis can be carried out directly using the balance sheet or using an aggregated analytical balance sheet, which we discussed in other articles; you can see an example of compiling an aggregated balance sheet.

So, let's consider the stages of analyzing the balance sheet of an enterprise.

Stage 1: analysis of the dynamics and structure of the balance sheet

During the analysis, it is advisable to determine the growth rate of the most significant items (groups) of the balance sheet and compare the results obtained with the growth rate of sales revenue. An important area of analysis is during which the specific gravity and the structural dynamics of individual groups and items of assets and liabilities of the balance sheet.

A “good” balance satisfies the following conditions:

the balance sheet currency at the end of the reporting period increases compared to the beginning of the period, and its growth rate is higher than the inflation rate, but not higher than the revenue growth rate;
other things being equal, the growth rate of current assets is higher than the growth rate of non-current assets and short-term liabilities;
the size and growth rate of long-term sources of financing (equity and long-term debt capital) exceed the corresponding indicators for non-current assets;
the share of equity in the balance sheet currency is not lower than 50%;
the size, share and growth rate of receivables and payables are approximately the same;
There are no uncovered losses on the balance sheet.

When analyzing the balance sheet, you should take into account changes in accounting methodology and tax legislation, as well as provisions accounting policy organizations.

Stage 2: analysis of the financial stability of the organization

We calculate absolute indicators of financial stability: the presence of real equity capital (net assets); availability of own working capital and clean working capital.

Relative indicators of financial stability are financial stability coefficients ( financial structure capital). System of main indicators for analyzing financial stability:

Own working capital (own working capital): SOS = SK - VA + DO

Net working capital: NSC = SK + DZK - VA or NSC = OA - KZK

Net assets: NAV (calculation procedure established by letter of the Ministry of Finance of Russia and the Federal Securities Commission)

Autonomy coefficient (financial independence, concentration of equity capital): Kavt = SC / A

Financial dependence coefficient (debt capital concentration): Kfz = ZK / A, where ZK = KO + DO

Debt to equity ratio (financial leverage ratio): Kzs = ZK / SK

Preservation ratio of equity capital: Ksks = SKk.p. / SKn.p.

Coefficient of maneuverability (mobility) of equity capital: Kskm = SOS / SK

Provision ratio of own working capital (net working capital): Koss = SOS / OA

Where SK is equity capital; VA - non-current assets; DO - accounts receivable; DZK - the amount of long-term borrowed capital used by the enterprise (the amount of its long-term financial liabilities); OA - the total amount of current assets of the enterprise; KZK - the amount of short-term borrowed capital used by the enterprise; A - assets; ZK - borrowed capital (liabilities); KO - short-term liabilities; DO - long-term liabilities; SKk.p., SKn.p - the amount of equity capital at the end and beginning of the period.

The calculation of relative coefficients is discussed in more detail, with examples of calculations in Excel.

Stage 3: analysis of balance sheet liquidity and solvency of the enterprise

Balance sheet liquidity means the presence of working capital in an amount potentially sufficient to pay off short-term obligations. Balance sheet liquidity is the basis of the organization's solvency. Balance sheet liquidity can be assessed various methods, including based on the calculation of the main ones.

The calculation of each of the coefficients includes certain groups of current assets that differ in the degree of liquidity (i.e., the ability to transform into cash during the production and commercial cycle).

Stage 4: analysis of the state of assets

As part of the analysis of the balance sheet, it is necessary to analyze the composition, structure and efficiency of use of non-current and current assets. To assess the effectiveness of current assets, profitability and turnover indicators are used.

To assess working capital turnover in general, the following indicators can be recommended:

Working capital turnover ratio: Cob = N / OA avg
Period of turnover of working capital: Po = OA avg * D / N
Where N is sales revenue; OA av - average value of current assets; D - number of days in the analyzed period.

The analysis of the dynamics, composition and structure of non-current assets on the balance sheet should be supplemented.

Stage 5: business activity analysis

Business activity assessment can be carried out in the following areas:

by the level of efficiency of resource use (the level and dynamics of capital productivity, labor productivity, profitability and other indicators). The most important in this group are asset and capital turnover indicators;
by the ratio of growth rates of profit, turnover and advanced capital.

Business activity is characterized positively if the following ratio is observed:

TRPDN > TR N > TRSVK > 100%

Where TRPDN is the growth rate of profit before tax (or before taxes and interest); TP N - turnover growth rate (sales revenue); TRSVK is the growth rate of advanced capital (balance sheet currency).

Dependence means: the economic potential of the enterprise is growing (the scale of activity is increasing); sales volume increases at a faster rate compared to the growth of advanced capital, i.e. enterprise resources are used more efficiently; profits are growing at a faster pace, which indicates a relative reduction in costs. This ratio is called the “golden rule of enterprise economics.”

3. according to special indicators characterizing business activity (coefficients of sustainability of economic growth, self-financing ability, investment activity).

Stage 6: diagnostics of the financial condition of the enterprise

The most common approaches to diagnosing financial condition are: assessment of the possibility of restoration (loss) of solvency and the use of discriminant mathematical models probability of bankruptcy:

To assess the possibility of restoration (loss) of solvency, two basic indicators are calculated: current liquidity ratio (normative value 2.0); coefficient of provision with own working capital (normative value 0.1).

Discriminant mathematics. Modern literature on financial analysis offers a number of Western and Russian models. The article presents a modified version for manufacturing enterprises whose shares are not listed on the stock exchange. The practice of using this model in the analysis of Russian enterprises has shown the possibility of its use and the greatest reality of the obtained values in comparison with other Western models.

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FEDERAL AGENCY FOR EDUCATION

RUSSIAN FEDERATION STATE EDUCATIONAL INSTITUTION

HIGHER PROFESSIONAL EDUCATION

"ALTAI STATE UNIVERSITY"

FACULTY OF ECONOMICS

DEPARTMENT OF ACCOUNTING, ANALYSIS AND AUDIT

CONTROL WORK ON DISCIPLINE:

ANALYSIS OF FINANCIAL STATEMENTS

Completed by a student

Course 5, groups 15

Neskoromnaya E.A.

Checked:

KEN teacher

Ergardt O.I.

Slavgorod 2006

Analysis of financial statements for the enterprise JSC Rodinsky Cheese Factory

The object on the basis of which the research took place is JSC Rodinsky Cheese Plant of the Rodinsky District of the Altai Territory.

The analyzed organization in the processing industry is engaged in the production of dairy products.

Balance adjustment for inflation index Ju = 1.14

Reading Balance Sheets and Financial Statements:

To characterize financial stability, let us analyze the balance sheet of the enterprise for 2203 and 2004 separately for all departments.

1) We compare the share of non-current and current assets.

Table 1

The name of indicators	For the beginning of the year	At the end of the year	Deviation
		in % of total		in % of total	in % of total
1. Non-current assets
2. Current assets

Conclusion: The table shows that the enterprise is not financially stable, because Section 2 of the balance sheet is much larger than section 1 of the balance sheet 71% >29% by 42% for the reporting year and the previous year 76% >24% by 52%.

2) Compare own and borrowed funds.

table 2

The name of indicators	For the beginning of the year	At the end of the year	Deviation
		in % of total		in % of total	in % of total
1. Own funds
2. Borrowed funds

Conclusion: The table shows that the company is not financially stable, since borrowed funds are many times higher than its own. The insufficiency of real equity capital was determined. In the reporting year, own funds amounted to 33.7%, while borrowed funds amounted to 133.7%, and in the previous period - 4.16% and 104.16%. At the end of the reporting period, the amount of uncovered losses that had accumulated over several years increased. The organization does not have its own funds for financing, the loans are very high, and the organization is insolvent.

3) Compare section 1 of the balance sheet “Non-current assets”

Table 3

The name of indicators	For the beginning of the year	At the end of the year	Deviation
		in % of total		In % of total	In % of total
I. Non-current assets
1.1. Intangible assets
1.2. Fixed assets

1.4. Long-term financial investments
Total for Section I

Conclusion: From the analysis of the structure of non-current assets, we see that in the reporting period there was a disposal and reduction of fixed assets by 866 thousand rubles. Or 1.89%, construction in progress remained unchanged, but the share at the end of the period increased by 0.47%, long-term financial investments decreased by 8 thousand rubles, again their share in non-current assets increased by 1.42%.

4) Compare section 2 of the balance sheet “Current assets”

Table 4

The name of indicators	For the beginning of the year	At the end of the year	Deviation
		in % of total		in % of total	in % of total
I. Current assets
1.1.Reserves
including:
1.1.1. Raw materials
1.1.2. Costs in work in progress
1.1.3. Finished products and goods for resale
1.1.4. Goods shipped
1.1.5. Future expenses

1.3.Receivables expected within 12 months
including: 1.3.1. buyers and customers
1.3.2. other debtors
1.4.Cash
Total for the section

Conclusion: The table shows that the company’s balance sheet is illiquid, i.e. compared to the previous year in the reporting year - inventories increased by 1,829 thousand rubles. or 40.62%, this was influenced by the increase in costs in work in progress at the end of the reporting period, which were not there at the beginning, but at the end they amounted to 4,582 thousand rubles, while raw materials and supplies decreased significantly by 1,713 thousand rubles. or 9.25%. Finished products decreased by the end of the period because In 2004, the plant does not have its own products; the plant sells commission products, which it receives monthly from the consignor. VAT on purchased valuables decreased by 493 thousand rubles. or 1.18%, accounts receivable decreased by 6,818 thousand rubles. or 42.59%, cash increased slightly at the end of the reporting period by 0.79% or 18 thousand rubles.

4) Ratio of accounts receivable and accounts payable:

Previous year 8419< 12574

Reporting year 1601< 11990

Turnover of receivables and payables:

Previous year Dt = ___ 44240___ = 6.35 > Kt = ___44518_____ = 5,71

(5522+8419)/2 (3006+12574)/2

Reporting year Dr = ___5473____ = 1,09 < Кт = ____8207_____ = 1,13

(8419+1601)/2 (12574+11990)/2

Conclusion: At the enterprise, the turnover of accounts receivable in the reporting year is less than the turnover of accounts payable; in the previous year, the turnover of accounts receivable is greater than accounts payable, this indicates that in the reporting year the enterprise is financially unstable, uncreditworthy, does not pay off creditors and lives off borrowed funds. funds.

5) Let's calculate net assets and compare them with the authorized capital:

Reporting year 11,220 - (13 + 14,990) = - 3,783< 115

Previous year 17 55 8 - (13 + 18 274) = - 731< 115

6) Let's calculate net current assets:

Previous year 3,259 - (13 + 14,990) = - 11,744

Reporting year 4,133 - (15 + 18,274) = - 14,156

Conclusion: The company is insolvent, there are not enough funds to pay off its debts, the company operates using borrowed funds.

Balance Analysis

1) Analysis of the composition, structure and dynamics of the balance sheet asset using the method of structural dynamics (based on the adjusted balance sheet).

Table 5

The name of indicators	For the beginning of the year	At the end of the year	Deviation
		in % of total		in % of total	in % of total

I. Non-current assets
1.1. Intangible assets
1.2. Fixed assets
1.3. Construction in progress
1.4. Profitable investments in material assets
1.5. Long-term financial investments
1.6. Postponed tax assets
1.7. Other noncurrent assets
Total for Section I
2. Current assets
2.1.Reserves
including:
2.1.1. Raw materials
2.1.2. Costs in work in progress
2.1.3. Finished products
2.1.4. Goods shipped
2.1.5. Future expenses

2.3.Receivables expected within 12 months
including: 2.3.1.buyers and customers
2.3.2. other debtors
2.4. Short-term financial investments
2.5. Cash
2.6.Other current assets
Total for Section II

2) Analysis of the composition, structure, dynamics of the enterprise’s sources of funds using the method of structural dynamics (according to the adjusted balance sheet).

Table 6

The name of indicators	For the beginning of the year	At the end of the year	Deviation
		in % of total		in % of total	in % of total

III. Capital and reserves
3.1. Authorized capital
3.2. Extra capital
3.3. Reserve capital
including: reserves formed in in accordance with the law
Reserves formed in accordance with the constituent documents
3.4. Retained earnings (uncovered loss)
Total for section III.
IV. long term duties
4.1.Loans and credits
4.2. Postponed tax obligations
4.3. Other long-term liabilities
Total for section IV.
V. Current liabilities
5.1.Loans and credits
5.2. Accounts payable
including
5.2.1. suppliers and contractors
5.2.2. debt to the organization's personnel
5.2.3. debt to state extra-budgetary funds
5.2.4. debt on taxes and fees
5.2.5 other creditors
Total for section V.

Conclusion: The balance sheet currency in the reporting period decreased by 6,338 thousand rubles compared to the previous period. The amount of non-current assets decreased by 874 thousand rubles. The residual value of fixed assets decreased, but this did not negatively affect the balance sheet asset. For 8 thousand rubles. long-term financial investments have decreased, this line indicates shares minus the created reserve for impairment valuable papers. Most current assets, in the previous period, accounts receivable accounted for 47.95% of assets; in the reporting period, most of them were inventories 47.22%, i.e. costs in work in progress 40.98%. In the reporting period, accounts receivable decreased by 6,818 thousand rubles. or by 33.63%, debt to buyers and customers by 17.40%, other receivables by 16.23%.

The majority of the balance sheet liabilities are made up of short-term liabilities 133.60% in the reporting period and 104.01% in the previous period. Of these, the largest part is accounts payable, it amounts to 106.86% at the end of the reporting period, debt to suppliers and contractors - 84, 38%, the remaining debt to the organization’s personnel, to state extra-budgetary funds, debt for taxes and fees, and other creditors. Loans and credits in the reporting period decreased by 5.69%, but nevertheless their share in the liabilities side of the balance sheet is 1/3, which indicates that there are few own funds and the company pays off with creditors using borrowed funds. The enterprise's equity capital decreased even more in the reporting period due to the existing loss by 5,245 thousand rubles. or 46.74%, which significantly reduces the balance sheet currency at the end of the reporting period. The company has completely lost its financial stability, the balance sheet is absolutely not liquid, the company is insolvent.

Analysis of financial stabilityactivity of the enterprise

Table 7

Indicators	At the beginning of the period	At the end of the period	Deviations

1. Availability of own working capital

3. Provision of reserves with own sources of financing (1-2) (Indicator 1) The company is absolutely financially stable The company is relatively financially stable
4. Own working capital and short-term loans (SOS+KKstr610)
5. Provision of inventories from own sources and short-term loans (4-2) (Indicator 2) The company is relatively financially stable The enterprise is relatively financially unstable (pre-crisis state)
6. Own working capital, short-term loans and accounts payable
7. Supply of reserves with all sources of financing (6-2) (Indicator 3) The enterprise is relatively financially unstable (pre-crisis state) The enterprise is absolutely unstable (crisis state)

Conclusion: Having calculated all three indicators, we see that both at the beginning of the period and at the end the company is relatively financially unstable. This indicates that there are delays in mandatory payments and settlements, the organization is experiencing a chronic shortage of cash, and debts are accruing to creditors. There is a lack of own working capital.

Analysis of financial stability at pthe power of financial ratios

The coefficient of autonomy (independence) is less than the norm, which indicates an increase in the enterprise’s dependence on borrowed sources of financing economic circulation and is assessed negatively. The debt ratio is higher than normal, i.e. the enterprise has a high debt on obligations. The coefficient of self-sufficiency is less than 0.1, i.e. the structure of the enterprise's balance sheet is considered unsatisfactory, and the enterprise itself is considered insolvent. The agility coefficient shows what part of the enterprise’s equity capital is in mobile form, allowing it to freely maneuver capital; its own working capital is in circulation, so there are not enough funds to pay creditors.

Analysis of balance sheet liquidity based on solvencyty and liquidity ratios

A1 - quickly realizable assets (Cash + short-term financial investments)

A2 - easily realizable assets (Accounts receivable expected within 12 months)

A3 - slowly selling assets (Accounts receivable expected for more than 12 months + Inventories - Deferred expenses + VAT + Long-term financial investments)

A4 - hard-to-sell assets (1 section Assets - Long-term financial investments + Deferred expenses)

P1 - urgent obligations (Accounts payable)

P2 - medium-term debt (Short-term loans and borrowings (p. 610))

P3 - short-term debt (Long-term liabilities (p. 590))

P4 - permanent liabilities (Result of section 3 + DBP)

The balance sheet is considered absolutely liquid and the enterprise is solvent if:

A 1 P 1, A 2 P 2, A 3 P 3, A 4 P 4

Table 9

Indicators	At the beginning of the period	At the end of the period	Deviation

Conclusion: From this table it is clear that the balance sheet of the enterprise is not absolutely liquid either at the beginning of the period or at the end of the period, and the enterprise itself is not solvent, since it does not have its own funds. A 1 P 1, A 2 > P 2

Analysis of financial ratiosliquidity clients

Table 10

Indicator name	Methodology for calculating the indicator	Normative value	At the beginning of the period	At the end of the period	Deviation
					Start - normal (3-2)	End-norm (4-2)	End-beginning (4-3)

Absolute liquidity ratio	(DS+KFV) / (5th section of Passive - DBP)
Intermediate coverage ratio (critical liquidity)	(DS + KFV + Debt. debt up to 1 year) / (5th section of Liabilities - DBP)
Current ratio	(DS + KFV + Inventories + Debt.) 2nd section of Assets / (5th section of Liabilities - DBP)
Solvency ratio	According to F-4 (DS at the beginning + DS received for all types of activities (inflow)) / DS sent for all types of activities (outflow)
Prospective liquidity ratio	(A1+A2+A3+A4) / (P1+P2+P3)

Conclusion: Absolute liquidity at both the beginning and end of the period is 0.01, but this is less than the standard value, current liquidity is decreasing. The absolute liquidity ratio is less than normal, i.e. the enterprise cannot cover part of the short-term debt with available cash and short-term financial investments. The current liquidity ratio is also less than normal, i.e. the enterprise cannot cover its current debt in the near future, since there is no uniform, timely and complete repayment of receivables. The intermediate coverage ratio is less than normal, i.e. there was a need to replenish the real equity capital of the enterprise and reasonably restrain the growth of non-current assets and long-term receivables. The solvency ratio is normal; the company has the ability to cover the amount of all long-term and short-term assets with the assets on its balance sheet.

Acashfrom profitability (unprofitability)

Table 11

Indicator name	Methodology for calculating the indicator	Normative value	For the previous period	During the reporting period	Deviation
					Start - normal (3-2)	End-norm (4-2)	End-beginning (4-3)
Profitability (unprofitability) of sales	Profit (loss) from sales (050) / revenue (010)
Profitability (unprofitability) of production assets	Profit (loss) from sales (050) / (Average value of OPF + Average value of inventories (210))
Profitability (unprofitability) of products	Profit (loss) (050) / cost (020)
Profitability (unprofitability) of assets	PE (Loss) / Average year. value of assets
Return on equity (loss ratio)	PE (Loss) / average annual value of the insurance policy (section 3 + DBP)

Conclusion: The analyzed enterprise had a loss for the previous year and the reporting year, so loss ratios were calculated. The table shows that all loss ratios decreased in the reporting period. The loss ratio of equity capital decreased by 0.43. The unprofitability of sales decreased by 0.49, the unprofitability of production assets decreased by 0.27, and the unprofitability of products decreased by 0.32. The loss ratio of all assets decreased by 0.24, i.e. the efficiency of the enterprise's use of assets in the reporting period was reduced. The unprofitability of all production assets decreases faster than the unprofitability of assets. When an enterprise operates at a loss, an increase in turnover only leads to accelerated production of losses and, accordingly, a negative profitability of all assets.

Sales profit growth rate: __2734__ * 100 = 983%

Revenue growth rate: __5473__ * 100 = 12,37%

Cost growth rate: __8207__ * 100 = 18,44%

Balance sheet currency growth rate: __11220__ * 100 = 63,90%

Conclusion: The revenue growth rate is lower than the growth rate of the balance sheet currency; the profit growth rate is equal to 983%, because losses in the reporting period amounted to 2,734 thousand rubles. and in the previous period 278 thousand rubles, the growth rate of revenue is lower than the growth rate of cost. The golden rule is not observed in any of the indicators.

Analysis of business activity indicatorsty (turnover indicators)

Table 12

Indicator name	Methodology for calculating the indicator	For the previous period	During the reporting period	Deviation
				Start - normal (3-2)	End-norm (4-2)	End-beginning (4-3)

Working capital turnover	Revenue (010)/Avg. value of 2 sections of the Asset
Turnover period in days	360 days/revenue * average working capital
Resource productivity (capital productivity)	Revenue (010) / average value of the entire Asset
Turnover period in days	360 days/revenue * average value of the entire Asset
Inventory turnover	Cost (020) / average value of Inventories (210)
Turnover period in days	360 days/cost * average amount of Inventory
Accounts receivable turnover	Revenue (010) / average amount of accounts receivable
Turnover period in days	360 days/revenue * average amount of accounts receivable
Accounts payable turnover	Cost (020) / average amount of accounts payable
Turnover period in days	360 days / Cost * average amount of accounts payable
Cash turnover	Revenue (010) / average value of DS
Turnover period in days	360 days/revenue * average value of DS
OPF turnover (capital productivity)	Revenue (010) / average value of fixed assets (120)
Turnover period in days	360 days/revenue * average fixed value

Conclusion: If turnover increases, then the turnover period in days decreases and vice versa. The turnover of working capital in the reporting period decreased by 2.61, and the period of turnover of working capital increased by 719 days. Resource efficiency decreased by 2.81. And the turnover period in days increased by 94.9 days. Inventory turnover decreased by 11.35, this indicates ineffective use of inventories, poor intensification of supply, production and sales processes, and the inventory turnover period increased by 204 days. Accounts receivable turnover decreases by 1.85, i.e. The payment discipline of buyers is decreasing or sales with deferred payment are increasing, and the turnover period of receivables has increased by 36 days. The turnover of accounts payable decreased, the period of turnover of accounts payable increased significantly by 420 days. Decline accounts payable turnover debt indicates a decrease in the payment discipline of the enterprise in relations with suppliers, the budget, extra-budgetary funds, and personnel of the enterprise. Cash turnover decreased by 29.40, and the cash turnover period increased by 8 days. A decrease in the turnover of cash and short-term investments and an increase in the turnover period in days indicates an irrational organization of the enterprise’s work, allowing for a slowdown in the use of highly liquid assets, i.e. servicing the production and economic turnover of the enterprise. The turnover of the general fund decreased by 9.77, the turnover period of the general fund increased by 162 days.

Analysisenterprise creditworthiness

Creditworthiness indicators:

To absolute liquidity > 2

K intermediate coating > 0.5

To current liquidity > 2

To the turnover of working capital - 29 times

To return on equity > 25%.

Let's determine the weight value (significance of coefficients)

Kabs.liq. * 0.11 + Kprom.coatings * 0.05 + Ktek.liq. * 0.42 + Operating capital * 0.21 + Ownership capital * 0.21 = K

The most significant one is to current liquidity. K intermediate coverage is not significant. If it ends up being 3? TO? 2.5, then the enterprise is considered creditworthy.

Previous period 0.01*0.11+0.47*0.05+0.63*042+3.3*0.21+1.48*0.21 = 1.3029

Reporting period 0.01*0.11+0.12*0.05+0.47*0.42+0.69*0.21+1.05*0.21 = 0.5798

3 ? 1,3029 < 2,5 - предприятие на начало периода кредитоспособно.

3 ? 0,5798 < 2,5 - предприятие на конец периода кредитоспособно.

Shape AnalysisNo. 2 “Profit and Loss Statement”

1) Analysis of sales profit by factors (according to actual reporting)

Table 13

The name of indicators	For the previous period	Actually in prices of the previous period	During the reporting period
Revenue (010)
Cost of sales (020)
Business expenses
Administrative expenses
Profit (loss) from sales

1. Impact of sales volume (qi)

4 276 - 50 434 = - 46 158

The decrease in sales volume (qi) in the reporting period compared to the previous period led to an increase in loss by 46,158 thousand rubles.

2. The impact of prices on profits

4 801 - 4 276 = + 525

The increase in prices led to a decrease in losses by 525 thousand rubles. other things being equal.

3. Impact of cost

7 199 - 6 099 = + 1 100

Cost growth individual species products led to an increase in loss by 1,100 thousand rubles.

4. The influence of structural changes.

2398 - (-317) = -2715

2715 ± (-46158 + 525 - 1100) = - 7948

The structural shift increased the loss by RUB 7,948 thousand.

2) Analysis of profit before tax using the comparison method

Table 14

Conclusion: Analyzing the profit (loss) before tax, we can say that the resulting loss before tax has increased many times. This increase in the reporting period compared to the previous period was affected by an increase in loss from sales by 2,081 thousand rubles, a decrease in income from operating activities by 543 thousand rubles, an increase in loss from non-operating activities by 427 thousand rubles, non-operating expenses exceed non-operating income.

Based on the analysis of net profit (loss), we can say that the current loss in the reporting period is 3,067 thousand rubles. added to the undistributed (loss) of the reporting period. Income tax is not paid, since a loss has occurred, dividends are not paid on ordinary shares, social and industrial development funds, and a material incentive fund are not created.

Analysis of Form No. 4 “Reportnot about cash flow"

1) Analysis of cash flow by type of activity using the comparison method

Table 15

The name of indicators	For the previous period	During the reporting period	Deviations

1. Cash balance at the beginning of the period
2. Net cash (flow) from current activities
3. Net cash (flow) from investment activities
4. Net cash (flow) from financing activities
5. Net increase (decrease) in cash and cash equivalents
6. Cash balance at the end of the period
7. The magnitude of the impact of changes in the exchange rate of foreign currency against the ruble

Conclusion: The cash balance at the end of the period increased slightly by 32 thousand rubles. Net cash flow from current activities decreased by RUB 55,484 thousand. From the proceeds from current activities it is used to pay wages, to pay for purchased works and services, to pay taxes and deductions to extra-budgetary funds and to pay interest and loans. The company lives off the loans received, although compared to the previous period the share of loans has decreased, but the funds received from customers have also decreased significantly.

2) Analysis of the structure of the organization's net cash flow.

Table 16

Indicator name	Share in total net cash flow (%)	Deviation, %
	For the previous year	For the reporting year
1. Total net cash flow (net decrease (increase) in cash and cash equivalents)
1.1. Net cash (flow) from operating activities
1.2. Net cash (flow) from investing activities
1.3. Net cash (flow) from financing activities

Conclusion: The plant has net cash flows only from current activities, since no investment or financing activities were carried out. In the previous period, the amount of net cash flow from current activities was higher, i.e. We are seeing a decline in plant activity.

3) Analysis of cash flow by type of activity using the dynamic structure method

Table 17

Name	Previous period	reporting period	deviations
		in % of total		in % of total	in % of total
1. Total funds received for all types of activities
1.1. Inflow from current activities
1.1.1. Funds received from buyers, customers
1.1.2. Other income
1.2. Loans

2.1. Outflow from current activities
2.1.1. To pay for purchased goods, works, services, raw materials and other current assets
2.1.2.For wages
2.1.3. To pay interest and loans
2.1.4.For calculations of taxes and fees
2.1.5. For settlements with extra-budgetary funds
2.1.6.Other expenses

Conclusion: At the enterprise, the main and only cash flow from receipts from current activities, in particular from buyers and customers, in the reporting period amounted to 21,194 thousand rubles, which is 41,651 thousand rubles. less than in the previous period. Cash inflow from other income amounted to 1,132 thousand rubles, which is 5,833 thousand rubles. less compared to the previous period. The funds were used to pay wages, pay taxes and fees, settle payments with extra-budgetary funds, and other expenses (disbursement for reporting, transfer to the bank for cash management services), a total of 25,294 thousand rubles for the reporting period. which is 55,560 thousand rubles. less compared to the previous period. The company does not develop financial and investment activities.

4) Analysis of the cash flow statement by the indirect method

Table 18

Name of balance sheet items	Amount, thousand rubles	Impact on cash flow
1. Current activities
1.1. Depreciation (F-5)
2. Inventories

1.4. Accounts receivable up to 1 year
1.5. Accounts receivable more than 1 year
1.6. Other current assets
1.7. Accounts payable
1.8. Other current liabilities
Total for current activities	- 6436
2. Investment activities
2.1. Intangible assets
2.2. Fixed assets (F-5)
2.3. Construction in progress
2.4. Profitable investments in material assets
2.5. Long-term financial investments
2.6. Deferred tax assets
2.7. Other noncurrent assets
Total for investment activities
3. Financial activities
3.1. Short-term financial investments
3.2. Authorized capital
3.3. Own shares purchased from shareholders
3.4. Extra capital
3.5. Reserve capital
3.6. Retained earnings (loss)
3.7. long term duties
3.8. Loans and credits
3.9. Debt to participants
3.10. revenue of the future periods
3.11. Reserves for future expenses
3.12. Other current liabilities
Total financial activities
Total by enterprise activity

Balance is maintained

+ TD + ID + FD = DSk - DSn;

Conclusion: For current activities, cash flow turned out to be negative. Cash flow decreased due to an increase in accounts receivable -6,818 thousand rubles, an increase in accounts payable +584 thousand rubles, an increase in depreciation +132 thousand rubles, an increase in inventories -1,829 thousand rubles. VAT reduction -493 thousand rubles. decreased the flow of current activities. In terms of investment activity, the positive flow was influenced upward by a decrease in fixed assets - 726 thousand rubles. In financial activities, a positive flow developed, i.e., retained earnings were used -3,049 thousand rubles, the cash flow was increased by a decrease in long-term liabilities -2 thousand rubles, and a decrease in loans and credits -2,700 thousand rubles. The analysis shows that there was an outflow of funds.

Analysis of Form No. 5 “Appendix to the Balance Sheet”

Arrival rate = 12/7970 = 0.0015

Attrition rate = 738/8696 = 0.08

Depreciation rate at the beginning of the period = 4893/8696 = 0.56

Depreciation rate at the end of the period = 5031/7970 = 0.63

Shelf life coefficient at the beginning of the period = 1-0.56 = 0.44

Closing ratio = 1 - 0.63 = 0.37

2) Analysis of fixed assets and depreciation of fixed assets using the dynamic structure method

Table 19

The name of indicators	At the beginning of the reporting period	And the end of the reporting period	Deviations
		in % of total		in % of total	in % of total
1. Total fixed assets
1.1. Building
1.2. Facilities and transmission devices
1.3. Machinery and equipment
1.4. Vehicles
1.5. Other types of fixed assets
2. Depreciation of fixed assets - total
2.1. Buildings and structures
2.2. Machines, equipment, vehicles
2.3. Other

Conclusion: Buildings occupy a large share in the total value of fixed assets

44% at the beginning of the reporting period and 48.1% at the end of the reporting period. The second largest share in the total value of fixed assets is machinery and equipment (34.5% in the reporting period). The share of vehicles in the total value of fixed assets is 6.1%, the share of structures and transmission devices is 2.2%. The share of depreciation of machinery, equipment and vehicles in the total depreciation of fixed assets is 51.4%, the rest is depreciation of buildings and structures - 45.5%, in turn, for other fixed assets the share of depreciation was 3.1%.

3) Analysis of the composition and structure of receivables and payables using the dynamic structure method

Table 20

The name of indicators	At the beginning of the reporting period	At the end of the reporting period	deviations
		in % of total		in % of total	in % of total
1. Accounts receivable: including short-term - total:
1.2. Settlements with buyers and customers
1.3. Advances issued
1.4. Other
2. Accounts payable: including short-term - total:
2.1. Settlements with suppliers and contractors
2.2. Payroll settlements with personnel
2.3. Calculations for taxes and fees
2.4. Loans and credits
2.5. Own bills
2.6. Other

Conclusion: The majority of the share in the structure of receivables is made up of settlements with buyers and customers (68.6%), the share of other receivables in the total amount is 31.4%. The total amount of accounts receivable decreased at the end of the reporting period by -5,783 thousand rubles. The total amount of accounts payable decreased at the end of the reporting period by 1,039 thousand rubles, since the activities of the enterprise are financed by borrowed funds. A significant share in the structure of accounts payable is occupied by settlements with suppliers and contractors - 63.2%, then loans and borrowings account for 20%, the share in the total amount of accounts payable for settlements with personnel for wages and settlements with the budget is 9.9% , other debt 6.9%.

4) Analysis of calculations of turnover of accounts receivable and accounts payable using the comparison method

Table 21

The name of indicators	For the previous period	During the reporting period	Deviations

1. Revenue
2. Cost
3. average value DZ
4. Average short circuit value
5. Deposit turnover
6. Short circuit turnover
7. Turnover period in days DZ
8. Turnover period in days KZ
9. One-day revenue
10. One-day remote control
11. One-day short circuit

Conclusion: For accounts receivable, the turnover period in days increased, and the accounts receivable turnover decreased by 6.28. Accounts payable turnover at the end of the reporting period decreased by 5.92, and the turnover period in days increased.

One-day revenue of the reporting period * acceleration days = how much additional revenue was received.

13.92 * 0.57 days = 7.9344 thousand rubles. Revenue was additionally received due to the acceleration of accounts receivable turnover.

Analysis of insolvent enterprises using the methodology for assessing (loss of solvency) the satisfactory and unsatisfactory balance sheet structure (based on the actual balance sheet)

1) Current ratio (Ktl) = =< 2

2) Coefficient of self-sufficiency = => 0.1

Conclusion: The company has, in principle, enough working capital this year to cover short-term liabilities, but they are in circulation. The balance sheet structure is satisfactory .

3) Loss of solvency coefficient. = =< 2

Conclusion: Within two months, this company faces loss of solvency.

4) Solvency restoration coefficient for 6 months =

Conclusion: Restoring the solvency of an enterprise within six months is impossible.

INconclusion

The company is financially unstable because... borrowed funds, i.e. short-term liabilities exceed equity, i.e. real equity capital of the enterprise. Having made the calculation and analyzed the current assets, it is clear that the company is relatively insolvent and the balance sheet is illiquid. The ratio of accounts receivable and accounts payable shows that the turnover of accounts payable is greater than the turnover of accounts receivable. This indicates that the company lives off borrowed funds and does not pay creditors on time and in full.

From the calculation of net assets and comparing them with the authorized capital, as well as the analysis of net current assets, we conclude that this enterprise is insolvent, current assets do not cover short-term liabilities, the enterprise operates at the expense of borrowed funds.

Having calculated the “golden rule of economics”, it is clear that the growth rate of profit is less than the growth rate of revenue and the growth rate of cost, while the growth rate of revenue is less than the growth rate of the balance sheet currency, the growth rate of revenue is less than the growth rate of cost.

Analyzing the balance sheet using the structural dynamics method, we see that the balance sheet currency in the reporting year decreased compared to the previous year by 11,6338 thousand rubles. Non-current assets decreased by 874 thousand rubles. Current assets have decreased and account for 71% of assets. The majority of current assets are inventories 66.32%, accounts receivable 20.12%, VAT on acquired material assets 11.89%, cash 1.65% and deferred expenses 0.13%. The majority of liabilities are short-term liabilities 133.60%. The majority of short-term liabilities are accounts payable 106.86%, which again indicates the poor condition of the enterprise. Credits and borrowings occupy 26.74%. Accounts payable decreased by 584 thousand rubles compared to the previous year. Equity capital changed in the reporting period due to the loss; it decreased by 3,052 thousand rubles or by 29.56%. In the reporting year, the company operated at a loss of 5,245 thousand rubles. Thus, the company should pay attention to its pricing policy. This company has experienced an outflow of cash this year.

When considering the enterprise's supply of reserves from its own sources, we see that at the beginning of the period the enterprise was financially unstable, and at the end of the period its condition worsened.

Having analyzed the profitability of the enterprise, we saw that during the reporting period there was a decrease in profitability on all points, i.e. we can say that the efficiency of use of all assets is decreasing.

Analyzing profit before tax, we see that in the previous period there was a profit, and in the reporting year there was a loss. This was influenced by a decrease in sales profit in the reporting year compared to the previous year, and a loss from non-operating activities, i.e. expenses exceed income.

Having analyzed Form No. 4 “Cash Flow Statement”, it is clear that the main cash flow comes from receipts from current activities, from buyers and customers. Investment and financial activities are not developed. The funds are used to pay wages, pay taxes and fees, extra-budgetary funds and other expenses.

So, from all of the above we can conclude that the company is in a pre-crisis state and has lost its solvency. This enterprise needs to radically reconsider all its capabilities in order to improve its financial condition, increase financial stability, creditworthiness, competitiveness, and profitability.

The concept of horizontal analysis and its main indicators

Horizontal balance sheet analysis is an assessment of individual indicators (items) in dynamics over a number of equal time periods (quarter, year). It is based on the principle of comparing reporting indicators (B 1) with previous ones (B 0). It allows you to determine the trend of changes in individual items of the financial report, therefore it has the second name “trend”.

In terms of the complexity of calculations, horizontal analysis is the most accessible. Traditionally, the following analytical quantities are calculated:

Absolute deviation (in monetary units): ΔB = B 1 - B 0;
Relative deviation (in percent): ΔB = (B 1 ‒B 0) / B 0 × 100;
Growth index (rate): T B = B 1 / B

The calculation results are interpreted as follows:

if the deviation ΔB has a positive value or the index T B ˃ 1, then the balance sheet item has increased;
if the deviation ΔB turns out to be with the sign “‒” or T B< 1, то статья уменьшилась.

A professional accounting analyst must know when positive variances are good and when they are bad. For example, an increase in cash, profits, property is a positive trend. But if, in parallel with cash, accounts payable also increases, and retained earnings decrease, which increases the company’s financial dependence, then monetary joy is not so clear.

Horizontal analysis and the “golden rule of economics”

The horizontal method evaluates not only the balance sheet of the enterprise, but also the statement of financial results. The data from these reports is used to compare the company's development rates according to various criteria.

The “Golden Rule of Economics” makes it possible to assess the potential of an enterprise. It implies the following principles of success:

Profits, income, equity and assets should grow, indicating growth in economic potential;
Profit should grow faster than revenue, which proves cost reduction;
Income should grow faster than equity capital, which characterizes the attraction of funds from buyers, not founders;
Equity should grow faster than assets because financial independence is very important for a company.

The growth of net profit and equity is a good trend. But if profit grows slower than capital, then the enterprise does not fully take advantage of opportunities to improve the efficiency of business activities.

Formal analysis of indicator deviations does not make it possible to draw correct conclusions. Special knowledge is needed to evaluate changes in the report comprehensively, in the interrelation of different indicators.

Example of calculations for horizontal balance sheet analysis

Let's analyze the balance sheet of a conditional enterprise in its abbreviated form.

Conclusions after calculations:

In general, the enterprise’s property increased insignificantly (by 83 thousand rubles or 1.51%). This indicates the stability of the company during the financial crisis;
The balance sheet assets show an increase in non-current assets (by 4.4%) and a decrease in current assets (by 0.9%). This is an alarming factor because the company is reducing its liquidity;
In liabilities, capital increased most actively (by 99 thousand rubles or 5.23%). Long-term liabilities decreased by 20 thousand rubles. (80%), which may indicate timely repayment of a long-term loan. Short-term liabilities actually remained at the same level (growth of less than 1%).

The enlarged report does not allow deeper conclusions to be drawn. It would be correct to supplement the horizontal financial analysis with a vertical one in order to assess the structure of the balance sheet.

Advice: independently calculate the absolute and relative indicators of changes in balance sheet items (you can use Microsoft Excel), and then prepare their interpretation using your own knowledge and financial advice from reputable experts.

Balance sheet- this is one of the most important financial documents of any enterprise, which, along with the profit and loss statement, can reveal to the investor a lot of important information about the enterprise. More this document may simply be called balance. If the company is foreign or reports on English language, then in foreign reporting this document is called a balance sheet.

Balance sheet analysis is the most important stage financial analysis enterprises. At this stage, the analyst answers the following questions:

What is the financial stability of the enterprise;

Does the company have liquidity problems?

How effectively the company uses debt and equity capital;

What is the structure of the enterprise's assets and others.

In this article we will look at the composition of the enterprise’s balance sheet and describe the most important sections and articles. We will also analyze the key financial analysis ratios that any investor needs to know and understand.

The balance sheet of an enterprise can be found as part of the enterprise's reporting according to RAS (Russian accounting standards) or IFRS (international financial reporting standards). Any public company whose shares are traded on a stock exchange is required to disclose its financial statements publicly on special websites for disclosing such information (for example, disclosure.ru) or on its website.

Typically, such information is located on the company’s website in the “shareholders and investors” section. The example below shows how to find reports on the website of MMC Norilsk Nickel:

We wrote more about what types of reporting there are, when and where they are published in the article “”. For investment purposes, it is preferable to analyze financial statements according to IFRS. The balance sheet in such statements is usually the second document (after the profit and loss statement) and looks like this:

Balance Sheet Structure

The balance sheet has two main sections: “Assets” and “Capital and Liabilities” (in Russian accounting standards this section is also called “Liabilities”). Assets show all the property that belongs to a business, from buildings and equipment to cash in current accounts. And liabilities (capital and liabilities) show the sources of financing assets, i.e. at the expense of which all this property was acquired: at the expense of own funds (capital) or at the expense of borrowed funds (liabilities). Assets should always equal liabilities, hence the name “balance sheet.” In essence, assets and liabilities work as 2 sides of the same coin, assets show certain real, material objects, and liabilities reveal the financial background: how these objects were acquired (at their own expense or through borrowed funds).

In the balance sheet of the MMC Norilsk Nickel company presented above, assets are equal to 998 billion rubles. At the same time, the division of capital and reserves is equal to only 236.5 billion. This means that assets of only 236.3 billion were financed from own funds, and the remaining part of assets 761.7 billion (998-236.3) was acquired at the expense of borrowed money.

Assets, in turn, are divided into “current assets” and “non-current assets”:

Non-current assets are company assets whose main characteristics are long life and high cost. For example, real estate, equipment, long-term investment investments etc. Depending on the specifics of the accounting policy of a particular enterprise, as well as on the reporting standards used (IFRS or RAS), there may be nuances regarding the amount and timing, but in general the gist is this.

Current assets are assets that are consumed during the production process, hence the name “current”. For example, stocks of raw materials and materials are constantly consumed and replenished again, i.e. are in circulation. As well as, for example, cash balances in the company’s current accounts.

Liabilities are divided into 3 subsections:

Capital and reserves - this section shows the amount of equity capital of the company's shareholders invested in the business.

Long-term liabilities - this block reflects the company's borrowed funds and liabilities with maturities of more than 1 year.

Short-term liabilities are the company’s obligations for a period of up to 1 year.

Balance Sheet Items

IFRS reporting is remarkable in that we can look at a detailed transcript for each article and thus understand what is included there. In the case of Russian reporting under RAS, there are no decodings and you will only have to be guided by the knowledge of what is reflected in which article. This is also recorded and spelled out in the relevant PBU (accounting regulations).

It is worth considering that the balance sheet reflects the value of assets and the amount of liabilities as of a specific date (this is the end of each quarter - December 31, March 31, June 30 and September 30). Those. This is a kind of snapshot of the financial condition of the enterprise, and not cumulative total numbers. Based on this, it is important to understand that you cannot add the figures in the balance sheet as of March 31 and June 30 to obtain data for the six months. The data as of June 30 is the data for the half year.

In this article, using the example of the balance sheet of MMC Norilsk Nickel, we will analyze the essence of the main items and tell you what exactly they reflect.

Let's start with non-current assets:

Fixed assets are buildings, structures, land, equipment, real estate under construction (so-called construction in progress). This item reflects the current value of these assets, which is calculated as the cost of acquisition minus the amount of depreciation.

Depreciation is the gradual write-off of expensive assets as company expenses. For example, a company purchased a machine for 10 million rubles, which will serve it for 10 years. The company has acquired an asset in fixed assets, but the company does not write off these costs as its expenses immediately (since they are very large), but reflects them gradually as the machine wears out over 10 years. As a result, at the end of the first year, the company will write off 1 million as depreciation, and the residual value of the machine on the balance sheet will remain 9 million, and so on every year.

Thus, if we look at this article as analysts and see that it has decreased within 5-10%, this does not mean that the company is selling off its assets, it is most likely just depreciation. The exact amount of depreciation can always be seen in the cash flow statement.

Intangible assets are patents, copyrights, licenses, software and other assets that do not have a physical form, but which are valuable to the enterprise and are used to conduct its activities. The principles of accounting for such assets are similar to accounting for fixed assets, since the concept of depreciation is also present here.

Investment property is property purchased for investment purposes, i.e. for the purpose of subsequent resale at a higher price.

Other financial assets - this section reflects loans issued by the company to other enterprises for a long period (more than 1 year), long-term investments (for example, bonds with long maturities), bills of exchange, deposits with long maturities, etc.

Other taxes to be refunded - this item reflects overpayments of taxes (excessively paid taxes in previous periods), accrued refunds from the tax office, but not yet received in the account in the form of cash, refundable VAT (which is returned to exporting companies), etc.

Deferred tax assets are an item created in connection with the peculiarities of the Russian tax system. It is considered as part of the income tax that is “paid in advance”, but will be credited to the company in subsequent payments to the budget. As a result, the company has a non-cash asset that it can later use, reducing its real taxes and saving real money in the future.

Other non-current assets - reflected in this item Various types assets that do not qualify for other items, but meet the basic criteria of non-current assets for of this business(price and long service life). For example, in the balance sheet of Norilsk Nickel we are considering, this item reflects semi-finished products purchased as reserves for several years in advance for 49.1 billion rubles.

Current assets:

Inventories - this item reflects raw materials and supplies necessary for production, finished products already produced, the cost of products in the production process (the so-called WIP - work in progress).

Trade and other receivables are debts owed by a company's customers. Those. funds that should arrive to the company in the near future in accordance with concluded agreements.

Advances issued and deferred expenses are advances paid to other companies for products and services.

Other financial assets - similar to the same item in non-current assets (loans issued, financial investments, etc.), only with terms of up to 1 year.

Advance payments for income tax - an advance payment by the company to the budget for income tax.

Cash and cash equivalents – cash in current accounts, short-term deposits, demand deposits, cash in cash, cash in transit (in the process of collection or in the process of transferring from account to account), etc.

Other taxes reimbursable - similar to the same item in non-current assets, but with repayment periods of up to 1 year.

Authorized capital is the initial capital of the company, stated in the charter and contributed by the founders with money or property when creating the organization. The authorized capital of a public company is equal to the par value of all shares.

Share premium is income from the sale of additional shares. It is calculated as the difference between the actual selling price at the market price and the par value of the shares. It can be a significant way to increase the company's capital if the company's shares are rising and it is possible to enter into an SPO.

Own shares purchased from shareholders. The repurchase of shares is reflected in the balance sheet with a minus, since in this case the company buys back its own shares, which are listed on its balance sheet at par for a higher market price. From a reporting point of view, the operation seems pointless, since it formally reduces equity capital, but from the point of view of managing the value of the company, such operations can be justified, since they reduce the number of shares in circulation and provoke a further increase in the value of shares.

Reserve for accumulated exchange rate differences - this item is available for organizations that have divisions abroad and serves to reflect exchange rate differences that appear when converting the indicators of a foreign division into rubles.

Retained earnings - retained earnings of an enterprise for previous periods (counted as retained earnings of an enterprise for the previous period + current net profit– dividends payable).

Capital due to shareholders of the parent company and non-controlling interests - these items appear in the balance sheet of a group of companies, which consolidates balance sheet information for subsidiaries. In case in subsidiaries there are shares that do not belong to the parent company; they are shown in general balance in the section “non-controlling interests”, the remaining capital is shown in the article “Capital due to shareholders of the parent company”.

The articles in the sections long-term and short-term liabilities are almost completely duplicated and have only one difference in the terms of the obligations, so we will analyze them all at once:

Loans and borrowings – this item reflects the company’s loans and borrowings that the company has attracted to finance its activities. Depending on the repayment period, they can be long-term (more than 1 year) and short-term (up to 1 year).

Trade and other accounts payable are debts an organization owes to other companies for products and services provided. Just like loans are divided by terms into long-term and short-term.

Reserves are a part of the company’s profit, which is necessarily reserved for various needs, both mandatory and established by the company itself: tax reserves, reserves for social benefits, environmental reserves, reserves for modernization, etc.

Dividends payable are the company's debt to shareholders for the payment of dividends. It arises because there is a time lag between the accrual of dividends and their actual payment - during this time we will see dividend arrears on the balance sheet.

Employee benefit obligations – wage arrears. The same as with dividends: salaries are calculated, for example, on the 30th day, and paid on the 5th day of the next month, as a result, on the balance sheet we see the amount of temporary salary arrears. If it grows significantly from month to month, this is already an alarming factor.

Deferred tax liabilities - by analogy with the item “deferred tax assets”, this item was created to reflect a number of transactions for settlements with tax authorities. This article shows the company's future tax obligations, from which it was exempt in the current period, but will necessarily have to pay in the future. In this regard, the company incurs a debt to the budget.

Income tax liability is the debt to pay already calculated income tax. This article is formed because there is a time lag between the calculation (calculation) of tax and its actual payment.

Other tax obligations – debt to pay already calculated and accrued taxes (except for income tax).

Other liabilities – other liabilities of the company that do not fall into the previous categories, these may be, incl. debt financial instruments.

So, we have analyzed the composition of the key items of the balance sheet. In the case of IFRS reporting, the composition of items may change from enterprise to enterprise, but the key items will remain. The key ones include: fixed assets, intangible assets, inventories, cash, accounts receivable, authorized capital, retained earnings, loans and borrowings, accounts payable - these are the items that provide basic information for the analyst. It is also worth paying attention to the size of the article - we will only be interested in large articles. Those. if for some item we reflect amounts that are less than 5% of assets, such items are analyzed last.

If you see items with large amounts in the IFRS balance sheet, but not described in the examples above, look at the transcript to the report itself. As a rule, there will be a detailed transcript of the contents of this article, from which it will become clear what type of assets or liabilities they are.

Financial analysis of the balance sheet

Let's look at the key areas of financial analysis of the balance sheet:

Analysis of the company's financial stability.

Analysis of balance sheet liquidity.

Analysis of the dynamics of balance sheet indicators.

Analysis of the structure of balance sheet indicators.

Analysis of the company's financial stability

Financial stability shows us how dependent a company is on debt capital. If the dependence is high, this will indicate lower financial stability; if the dependence is low, then the company has a high level of financial stability. To clearly depict the degree of varying financial stability of a company, you can imagine the organization’s balance sheet in the form of blocks as in the figure below.

In the figure we see how the blocks in the company’s assets and liabilities are compared. Depending on their size, there are several types of financial stability:

Also, to analyze financial stability, there are several more indicators, the essence of which comes down to understanding how capable the company is of paying off its debts. We analyze all indicators in detail.

Analysis of liquidity of the enterprise balance sheet

Liquidity of an enterprise – shows the company’s ability to pay short-term obligations. These indicators also complement the picture of the company's financial stability. But if Finnish sustainability tells us whether the enterprise is stable in principle, then liquidity is a kind of test of the financial condition in the moment - here and now. These indicators allow you to understand what will happen to the company in the event of credit force majeure, for example, tomorrow. There are also several liquidity indicators, but the most popular among financiers are “absolute liquidity” and “quick liquidity”:

The meaning of the indicators is that in the first case we compare the size of our most liquid assets - money, with the total volume of all short-term liabilities and understand how many obligations the company can close instantly in the event of any force majeure. It is believed that if the absolute liquidity indicator is more than 0.2, this is excellent. In the second case, we take into account not only money, but all the most liquid current assets of the balance sheet, except for inventories. The quick liquidity ratio is considered good if it is more than 0.6.

In our case with Norilsk Nickel, absolute liquidity is 0.83 (200.2/241), and quick liquidity is 0.98. These are excellent liquidity indicators, which indicate the high financial stability of the company in the short term.

Analysis of the dynamics and structure of balance sheet indicators

An important type of analysis is also understanding the dynamics of indicators. If we see, for example, that a company’s assets are growing, this is good; this indicates the development and growth of the business. However, it is also important that this growth is accompanied by an increase in revenue and profit (we can already see this from the profit and loss report when conducting).

The dynamics of liability indicators also speaks volumes. For example, an increase in equity capital will indicate an improvement in the financial stability of the company and this is the most positive characteristic.

It is also worth paying attention to the structure of the balance sheet - if we see that the relative share of the company's current assets is growing. This may be a negative signal indicating the build-up of excess inventories and ineffective use of the company's working capital.

In liabilities, the structure is also extremely important - it shows us what is happening with financial stability companies. An increase in the share of equity capital, a decrease in loans, and a decrease in the share of primarily short-term liabilities are positive signals. An increase in debt and a decrease in the share of capital are negative.

We have reviewed key aspects work with the balance sheet of the enterprise. Balance is truly a treasure useful information for an analyst and investor who will help us understand how financially stable the company is, whether it is facing bankruptcy or short-term financial problems. This information can be used to make decisions about bond and stock selection. But it is worth remembering that it is important to always carry out a comprehensive analysis of the enterprise’s reporting and be sure to also study the indicators of the income statement, which reveal to us the efficiency and profitability of the business.

In our courses, we teach you to fully analyze companies and show how to apply this information in practice to select the most promising companies for investment. You can get acquainted with our training materials in more detail and get several ready-made analytical techniques by visiting ours.

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Profitable investments for you.

IP	*KZS*
78,23	0	5,78	15,99
IP	DK	QC	*short circuit*

IP	*KZS*
61,65	0	0	38,35
IP	DK	QC	*short circuit*

*Indicators*	*at the beginning year (thousand rubles)*	*% to total*	*at the end of the year (thousand rubles)*	*% to total*	*Absolute deviation (thousand rubles)*	*Rates of growth (%)*
IP	40600	78,23	66689	61,65	26089	164,26
KZS	11300	21,77	41491	38,35	30191	367,18
DK	0	0	0	0	0	0
QC	3000	5,78	0	0	-3000	100
short circuit	8300	15,99	41491	38,35	33191	499,89

*Indicators*	*at the beginning year (thousand rubles)*	*% to total*	*at the end of the year (thousand rubles)*	*% to total*	*Absolute deviation (thousand rubles)*	*Rates of growth (%)*
VA	32600	62,8	33607	31,07	1007	103,08
OA	19300	37,2	74573	68,93	55273	386,39
Z	10600	20,43	9653	8,92	-947	91,07
DZ	3850	7,43	27920	25,81	24070	725,2
DS	4850	9,34	37000	34,2	32150	762,89

Analysis of financial results on the balance sheet. Methodology for analyzing the balance sheet of an enterprise

Stage 1: analysis of the dynamics and structure of the balance sheet

Stage 2: analysis of the financial stability of the organization

Stage 3: analysis of balance sheet liquidity and solvency of the enterprise

Stage 4: analysis of the state of assets

Stage 5: business activity analysis

Stage 6: diagnostics of the financial condition of the enterprise

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Analysis of the company's financial stability

Analysis of liquidity of the enterprise balance sheet

Analysis of the dynamics and structure of balance sheet indicators

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Analysis of financial results on the balance sheet. Methodology for analyzing the balance sheet of an enterprise

Stage 1: analysis of the dynamics and structure of the balance sheet

Stage 2: analysis of the financial stability of the organization

Stage 3: analysis of balance sheet liquidity and solvency of the enterprise

Stage 4: analysis of the state of assets

Stage 5: business activity analysis

Stage 6: diagnostics of the financial condition of the enterprise

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