The ratio of stocks with own funds standard. General conclusions
The working capital ratio may indicate the proportion of inventories and production costs that are financed from general organizational sources. This indicator in the vast majority of cases is used to determine the financial stability of the company.
The coefficient under consideration is the ratio of the level of own funds that cover costs and inventories to the cost of these very costs. Each person interested in the calculation can carry out this operation by formula or by using a specialized computer program.
To understand the key features of the coefficient, it is necessary to familiarize yourself with the essence of guarantees, with financial values, with an established formula, with optimal parameters, with the main concepts, as well as with procedural aspects of the analysis of indicators.
The essence of guarantees
The ratio of own working capital is a special indicator for determining financial features enterprise stability. It can also be a kind of indicator of the state of working capital. A special formula is used to calculate the corresponding indicator.
It should be noted that the organizational ratio may be considered unsatisfactory, and the company itself insolvent in cases where the ratio under consideration at the end of the next reporting period is less than 10%. Such a standard is fully regulated by the order of the Federal Bankruptcy Administration No. 56-r.
Those organizations that, after the calculation, received an unsatisfactory indicator, can use special methods to correct the situation. For example, you can carry out an additional assessment of own funds. It is important to remember that the results of the corresponding operation can only be displayed in the next reporting period after the decision is made.
economic sense
The coefficient in question can be obtained by dividing equity by the cost of inventories and costs.
The classical formula is as follows:
Koss = working capital owned by the organization / available stocks
It is worth noting that the indicator in the numerator can be called working capital. Such a value can fully reflect the value of current assets in relation to non-long-term liabilities. Working capital may indicate the company's ability to pay off certain liabilities after the sale of assets.
In other words, working capital is a specific indicator of solvency. The calculation of the indicator under consideration can be carried out in accordance with the information contained in the accounting documentation balance sheet.
Financial Features
Value Schema
The coefficient under consideration characterizes a certain proportion current assets organizations funded by their own funds. The standard value is 0.1.
The indicator can either increase or decrease. In the first case, the equity capital of the organization will grow, taking into account the reduction of debt obligations to creditors. Also, the indicator of the company's financial stability and the number of solvent counterparties are undergoing significant growth.
If the ratio decreases, then the equity with an increase in risks directly related to the emergence of accounts payable. In addition, it can greatly increase the risk of loss of financial stability.
If after each calculation the coefficient becomes higher, then this fact indicates the strengthening of the stable position of the enterprise. In this case, changes in structural components activities are not required. To ensure stable funding flows for a company, it is important to keep a certain amount of equity in the capital.
Formula explanation
The formula for the security ratio using the working capital of the organization is as follows:
K2 \u003d (cap + zd - adh) / akh
| Scape | This is an indicator of the level of equity capital of the organization and the value of the entire set of property objects that are directly owned by the enterprise. |
| Zd | The amount of debt that has a specified maturity of more than one year or before the end of a specified operating cycle. |
| Adh | Long-term assets, which are fixed assets, including buildings, equipment and other structures that are used for several years and generate a certain amount of income. |
| akh | Current assets - amount Money and inventories of already manufactured products that can be quickly used or sold. |
It should be noted that the normative indicators for the coefficient may vary in direct proportion to the industry in which the organization carries out its activities. professional activity. The acceptable coefficient is 0.1, however, for any industry, the normative value of the coefficient is determined within the limits of 0.3 or 30 percent.
As for foreign enterprises, they do not apply this coefficient. This is due to the fact that the production sphere and the right to own property are clearly separated from each other, and the presence of certain financial obligations for the company to creditors cannot in any way affect its efficiency.
Optimal parameters
The current federal legislation establishes the fact that the optimal value of the coefficient is an indicator exceeding 0.1. Experts argue that other values \u200b\u200bmay indicate the unsatisfactory condition of the organization and the possibility of it being declared bankrupt.
An indicator less than 0 may indicate that the company uses only funds provided by creditors to organize its own activities, which, in turn, confirms an unstable financial condition.
Meanings and examples
The normative indicator of the coefficient should not be less than 0.1 for the stable functioning of the company.
A negative value indicates the following factors:
- the company does not have equity capital;
- the entire working budget is formed exclusively with the help of borrowed funds, which indicates the presence of significant debt obligations to creditors;
- for the obligations of the enterprise, additional categories of debt may appear;
- the probability of the company losing financial stability is increased
It is worth noting the fact that the vast majority of companies cannot achieve an acceptable indicator throughout the entire cycle of their existence.
To understand the features of calculating the coefficient, consider the following example.
As part of the calculation, you need to find out the current value of the SOS security indicator at the beginning and end of a particular reporting period.
The following initial information is proposed for the solution:
- the total amount of capital and reserve fund - 250 million rubles at the beginning and 270 million at the end of the period;
- the level of non-current assets - 140 and 160 million;
- the amount of current assets - 240 and 265 million.
The current value at the beginning of the period is fully consistent with the standard indicator. This is confirmed by calculation using the established formula. As for the final segment of the reporting period, the coefficient will be within 0.4, which also meets the standards.
The results obtained indicate that the financial condition of the enterprise is at a stable level, and the possibility of changing the situation in the near future is unlikely.
The main concepts about the ratio of own working capital
As part of the production and sales activities of the organization, liquidity indicators and the coefficient of provision with own working resources should be calculated. This is done to analyze the current state of the enterprise and to make a forecast for the next reporting periods.
The result can be presented as a percentage for a more visual representation of the situation. To do this, the resulting coefficient is multiplied by 100. If the result is negative, then this directly indicates that the company's balance sheet structure is not effective.
In any case, own sources of finance should prevail in such quantity that they can be used to cover non-current assets in full. This is also done to ensure stable operations. That is why the negative value should be eliminated as soon as possible.
As for the standards for Russian organizations, they are fully regulated by the provisions of the current federal legislation. Therefore, in order to monitor the performance of the company, this indicator should be determined in without fail. Its value in the normal state is always greater than 0.1.
In cases where, in the course of the activities included in the analysis, it is determined that the indicator has negative meaning, then this can only indicate negative trends, including partial or complete absence own funds in capital.
Details of calculations and standards
In the process of professional organizational activities a fairly significant role is played by the current assessment of the company's dependence on external sources financing.
Within this framework, the debt coverage ratio is used as a valuation tool, the calculation of which is carried out according to the following formula:
Kpdss = SK / ZK
The corresponding coefficient can reflect the real state of affairs after applying all organizational indicators. It also helps to determine whether the company has enough own funds to form inventories.
Practice shows that business leaders quite often face certain difficulties when it is necessary to separately find both equity and borrowed capital.
To form the final conclusion about the financial stability and solvency of the company, it is necessary to consider the security indicator own funds along with the current liquidity ratio.
Analysis of indicators
In accordance with the provisions of a special ruling of the Federal Office of Procedural Affairs, normal value coefficient in each case should be greater than 0.1 or 10%. If such an indicator is not achieved, then we can speak with full confidence about the recognition organizational structure insolvent within a certain financial period.
Sustainability will be minimal in cases where the organization actively uses the opportunity to attract credit funds from outside. This, in turn, leads to the formation of an impressive amount of debt obligations to creditors.
To analyze the indicators of the economic sustainability of an organization, it is important to pay attention to the need to study the considered coefficient in dynamics. In other words, each organization is recommended to make settlements at the beginning and end of the financial period.
In cases where the value increases at the end of the reporting period, but remains below 10%, this may also indicate factors for improving the financial condition of the enterprise. It should be noted that the coefficient is practically not used in arbitration practice, but is used by arbitration managers to assess structural characteristics balance.
Ko \u003d (sources of own funds. - non-current assets) / (stocks and costs + cash "other assets)
This ratio shows what part of current assets is financed from own sources. The calculation of this indicator seems illogical, because there is a lack of working capital.
Analysis of liquidity and solvency of the enterprise. Liquidity and solvency of the enterprise, i.e. the ability to timely and in full make calculations for short-term obligations - the criteria for assessing the financial condition of the enterprise.
Under liquidity of any asset is understood as its ability to be transformed into cash, and the degree of liquidity is determined by the length of the time period during which this transformation can be carried out. The shorter the period, the higher the degree of liquidity of this asset.
Speaking about the liquidity of an enterprise, they mean that it has working capital in an amount theoretically sufficient to repay short-term obligations, even with violations of contractual maturities. Solvency means that the enterprise has cash and cash equivalents sufficient to pay for accounts payable requiring immediate repayment. Thus, the main signs of solvency are:
Availability of sufficient funds in the current account;
No overdue accounts payable.
Obviously, solvency and liquidity are not identical to each other. Thus, liquidity ratios can characterize the financial position as satisfactory, however, in essence, this can be erroneous if a significant proportion of current assets falls on illiquid assets and overdue receivables.
The assessment of liquidity and solvency can be performed with a certain degree of accuracy. In particular, as part of an in-depth analysis of solvency, attention is paid to articles characterizing the availability of funds of the enterprise. This is understandable: they express the totality of cash, i.e. property that has an absolute value, as opposed to any other property that has only a relative value. These resources are the most mobile, they can be included in financial and economic activities at any time, while other types of assets can be included only after a certain period of time. The art of financial management is precisely to keep only the minimum necessary amount of funds in the accounts, and the rest, which may be needed for current operational activities, in fast-moving assets.
Thus, for express analysis, the more significant the amount of funds in the current account, the more likely it can be argued that the company has sufficient funds for current settlements and payments. At the same time, the presence of insignificant balances on the current account does not mean at all that the enterprise is insolvent - funds can be received on the current account within the next few days, some types of assets, if necessary, are easily converted into cash.
Insolvency is evidenced, as a rule, by the presence of "sick" articles in the reporting ("Losses", "Credits and loans not repaid on time", "Overdue accounts payable and receivables", "Promissory notes issued overdue").
Balance liquidity analysis. For the convenience of calculations and calculations, we introduce the following generally accepted notation:
Subdivision of asset items by their degree of liquidity
А1 – the most liquid assets (line 250+line 260);
A2 - fast-moving assets (line 230 + line 240 + line 270);
AZ - slow-moving assets (line 210 + line 140);
A4 - hard-to-sell assets (p. 190);
Subdivision of liability items according to the degree of urgency
P1 - the most urgent obligations (line 620);
P2 - short-term liabilities (line 610);
PZ - long-term liabilities (line 590);
P4 - permanent liabilities (line 490 + line 640 + 650 + 660 + 670);
Table 6.10
| Assets | Passive | Payments Surplus or deficiency | |||||
| For the beginning of the year | At the end of the year | For the beginning of the year | At the end of the year | For the beginning of the year | At the end of the year | ||
| A1 | 13.806 | 10.056 | P1 | 89.542 | 126 909 | – 75.736 | –116.853 |
| A2 | 13.3196 | 207.022 | P2 | +133.196 | +.207.022 | ||
| AZ | 32.8773 | 342.063 | PZ | 411.023 | 461 240 | – 82.250 | –119.177 |
| A4 | 74.324 | 141.544 | P4 | 49.533 | 112 533 | + 24.791 | +29.011 |
To determine the liquidity of the balance, it is necessary to compare the results of the selected groups for liabilities and assets. The balance is considered to be absolutely liquid if the following ratio is fulfilled:
A1>P1 A2>P2 AZ>PZ A4<П4.
In the analyzed enterprise, the asset and liability groups are correlated in the following way:
At the beginning of the year: A1<П1 На конец года: А1<П1
A2>P2 A2>P2
AZ<ПЗ АЗ<ПЗ
A4>P4 A4>P4
Comparison of the results of the first group by asset and liability, i.e. A1 and P1 (terms up to 3 months) reflect the illiquid ratio of current payments and receipts.
Comparison of the results of the second group, i.e. A2 and P2 (terms from 3 to 6 months), shows a trend of increasing current liquidity. The analysis of the third and fourth groups reflects the unsatisfactory ratio of receipts and payments.
For a comprehensive assessment of the liquidity of the balance sheet as a whole, one should use the general liquidity indicator ( l), calculated by the formula:
l = (а1 ´ А1+а2 ´ А2+ а3 ´ AZ) /(а1 ´ П1+ а2 ´ П2 + а3 ´ ПЗ),
where Aj,Пj- the results of the respective groups by asset and liability,
aj- weight coefficients.
From the point of view of the timing of receipt of funds and repayment of obligations, we assume that a1 = 1, a2 = 0.5, a3 = 0.3, then
l beginning of the year = 13.806 + 0.5 ´ 133196 + 0.3 ´ 328773 / 89542 + 0.3 ´ 411023 = 0.84
l end of the year =10056+ 0.5 ´ 207022 + 0.3 ´ 342063 / 126909+ 0.3 ´ 461240 = 0.81
This indicator reflects the decrease in liquidity during the year by 0.03. The general indicator of liquidity of the balance considered above expresses the ability of the enterprise to carry out settlements for all types of obligations - both for the nearest and for the remote in time. However, this indicator does not give an idea of the company's capabilities in terms of repayment of short-term liabilities. Therefore, to assess solvency, three relative liquidity indicators are used, which differ in the set of liquid funds considered as coverage for short-term obligations.
1. Absolute liquidity ratio(K a.l.)
This coefficient is equal to the ratio the value of the most liquid assets to the sum of the most urgent liabilities and short-term liabilities
K a.l. beginning of the year = 13.806 / 89.542 = 0.15
K a.l. end of the year = 10.056 / 126.909 = 0.08
The absolute liquidity ratio shows what part of the short-term debt the company can repay in the near future. The normal limit of this indicator is as follows: K a.l. = 0.2 - 0.5. Thus, the solvency of LLC NTC "Kaunsel" at the time of the preparation of the annual report was very low.
2. Critical liquidity ratio(K k.l .)
To calculate this ratio, accounts receivable and other assets are included in the numerator of the relative indicator in the composition of liquid funds.
To k.l. beginning of the year = 147.002 / 89.542 = 1.64
To k.l. end of the year = 217.078 / 126.909 = 1.71
The critical liquidity ratio reflects the projected payment capabilities of the enterprise, subject to timely settlements with debtors. An estimate of the lower normal bound of the coefficient looks like this:
To k.l. > 1. The critical liquidity ratio characterizes the expected solvency of the enterprise for a period equal to the average duration of one turnover of receivables.
Debt turnover. debt \u003d Revenue - net from sales / Average annual deb. debt (1 618.901 / 65.723) = 24.6
Maturity of receivables = 365 / 24,6 = 14,8.
To improve solvency, you can give the following recommendations for managing settlements:
Monitor the status of payments to customers
Establish strict conditions for commodity lending,
Calculate the share of risk of interaction with counterparties (know the financial condition of your customers).
3. Current liquidity ratio (K t.l.)
This coefficient is equal to the ratio of the value of all current assets of the enterprise to the sum of short-term liabilities of the enterprise.
K t.l. beginning of the year = 328773 / 89542 = 3.67
K t.l. end of the year = 342,063 / 126,909 = 2.9
The current liquidity ratio shows the payment capabilities of the enterprise, assessed on the condition of not only timely settlements with debtors and favorable sales of goods and finished products, but also sale in case of need of other elements of material current assets. The normal limit for this coefficient is K t.l > 2. The current liquidity ratio characterizes the expected solvency of the enterprise for a period equal to the average duration of one turnover of all working capital.
Miscellaneous indicators liquidity not only provide a versatile characterization of the stability of the financial condition of the enterprise, but also meet the interests of various external users of analytical information. So, for suppliers of raw materials and materials, the absolute liquidity ratio is most interesting. The bank lending to this enterprise pays more attention to the critical liquidity ratio. Buyers and holders of stocks and bonds in more evaluate the financial stability of the enterprise by the current liquidity ratio.
The conducted express analysis of the financial condition of LLC STC "Kaunsel" has this moment relative value, since it does not respond to main question: "How can the current financial condition affect the further course of affairs?"
An analysis of the property status, financial stability, solvency and liquidity of the balance sheet makes it possible to outline general trends in the development of the financial condition of a given enterprise.
Changes have taken place in the property status of STC "Kaunsel" LLC, which may positively affect the future financial condition. The share of non-current assets in the total value of property increased from 13% to 20%. The increase was due to the increase in the amount of intangible assets. In the knowledge-intensive sphere of communication services, it is the share of intangible assets that determines the high level of customer service through the provision of new services.
Thus, we can conclude that the growth of intangible assets will cause an increase in revenue from the provision of additional services, attracting new customers.
A negative point that may affect the competitiveness of an enterprise is an increase in accrued depreciation on fixed assets, if this is due to the obsolescence of fixed assets. For a more complete assessment of the impact of the composition and structure of fixed assets on the future financial condition of the enterprise, it is necessary to conduct a detailed analysis of fixed assets.
In the structure of current assets, namely stocks and costs, the unjustified, from my point of view, ratio of production stocks and goods for resale is of concern. An increase in the share of inventories from 52% to 67% of total inventories and costs against the backdrop of a decrease in the share of goods for resale (from 46% to 29%) may lead to more greater loss liquidity and, consequently, loss of solvency.
In the structure of liabilities balance sheet items positive moment there is an increase in the share of own funds from 9% to 16% in the total amount of sources of funds. If the company maintains the trend of increasing its own capital at the expense of profit, this will positively affect financial stability.
The downward trend in the share of long-term liabilities in the total amount of borrowed funds is negative, because This will lead to an increase in the urgency of borrowed funds, which will jeopardize the solvency of the enterprise.
When analyzing financial stability, a lack of own working capital was revealed due to the low share of sources of own funds. If the company does not change the current situation by increasing the sources of its own funds, then, as a result, solvency will constantly decrease and dependence on borrowed funds will increase. The only way out of this situation may be to increase the share of own working capital.
When analyzing the liquidity of the balance sheet, low current liquidity was revealed, which can lead to a permanent payment deficit. Of course, it is not advisable to keep a large amount of money on the account all the time, however, it can be recommended to convert part of the company's funds into marketable assets.
In the analysis of production and economic activity any enterprise important role plays the calculation of coefficients that affect its financial stability, the ability to quickly respond to changes in the industry, the creditworthiness and liquidity of the company. The equity ratio also belongs to this category.
What it means, how it is calculated and how its changes affect the financial life of the company, we will learn from this article.
Equity ratio: definition
The production of each enterprise necessarily involves its own working capital, i.e. capital, which is the property of the company. Their presence in sufficient volume is one of the main conditions for financial freedom and stability of the company in the industry. And, on the contrary, the absence of such capital is evidence that the current assets of the enterprise (and sometimes part of the production fixed assets) are formed at the expense of borrowed funds and, if the creditor (bank) suddenly wants to withdraw them, the organization will face financial collapse if timely measures are not taken. measures.
How to calculate?
This indicator, which characterizes the availability and sufficiency of own funds, determines the ratio of the share of these assets in the total volume of the company's working capital. At the end of each reporting period, to analyze the situation, the equity ratio is calculated. The formula is:
K cos \u003d C os /A, where C os - working capital, A - the corresponding assets of the company.
The size of С os is calculated by reducing the amount of equity capital by the value of non-current assets (fixed assets and intangible assets) according to the formula:
C os \u003d K - A vn
In relation to the current edition of the balance sheet form, the formula for calculating the coefficient looks like this:
K cos \u003d (balance line (BO-1) 1300 - line BO-1 1100) / line BO-1 1200
standard
The normal value set for the coefficient at the legislative level is > 0.1, i.e. 10% of the total assets of the company and is considered one of the criteria for assessing the unfavorable balance sheet structure, along with other calculated indicators. 10% is the minimum, already critical value, acceptable for the amount of own funds in the property of the organization. It shows the presence or occurrence of problems - a critical level of sufficiency of own funds, low solvency and general destabilization of the enterprise.
Meaning and conclusions based on the results of calculations
The equity ratio assesses the state of the organization in terms of its solvency.
If the value of the coefficient at the end of the reporting period is below 0.1, then the structure of the company's balance sheet is unsatisfactory, and its condition is close to critical. In this case, the company needs a serious revision of the adopted strategy, urgent development of urgent measures to increase financial stability, identification negative factors affecting the state of the organization. Sometimes radical measures are needed, for example, a change in management or production profile, the introduction of external management (if the company is a branch of a higher organization), etc. In a word, the calculation of the coefficient entails an in-depth analysis of the actual state of the enterprise's finances, its solvency and effective measures to improve the situation .
Example #1
Calculate the equity ratio on the balance sheet using the following data:
Non-current assets (1st section of the balance sheet - line 1100) - 104,600 thousand rubles.
Working capital (2nd section of the balance sheet - line 1200) - 46,650 thousand rubles.
Capital / reserves (3rd section of the balance sheet - line 1300) - 129,950 thousand rubles.
K cos \u003d (129,950 - 104,600) / 46,650 \u003d 0.54
Based on the result of the calculations, we can draw the following conclusions:
The value of the coefficient is 5 times higher than the established standard (0.54 - 0.1 = 0.44);
The equity ratio of 0.54 indicates that the equity capital of the organization is 54%, i.e., it exceeds half the value of the property in the company;
Such provision with own funds is typical for sufficient financial stability of the company.
Example #2
Let's calculate the equity ratio of assets based on other data.
Non-current assets (1st section BO-1 - line 1100) - 98,600 thousand rubles.
Revolving funds (2nd section BO-1 - line 1200) - 15,800 thousand rubles.
Capital / reserves (3rd section of BO-1 - line 1300) - 100,000 thousand rubles.
K cos \u003d (100 00 - 98 600) / 15 800 \u003d 0.09
After analyzing the obtained value, the company's economist informs the management and provides the appropriate conclusions:
The value of the coefficient is below the critical mark by 0.01 (0.09 - .01 = - 0.01);
The ratio of reserves with own funds of 0.09 shows a negligible amount of equity in the composition of the assets of the organization - 9%;
Such provision with own funds speaks of a critical situation in the company - an unsatisfactory balance sheet structure, financial instability, insolvency to partners and creditors.
In conclusion, we note that it is necessary to analyze the financial condition of an enterprise on the basis of the values calculated for such an indicator as the equity ratio. The calculation formula is simple, but the correct interpretation of the obtained values will help to take timely measures to eliminate the crisis situation.
7. The coefficient of provision of reserves and costs with sources of funds (calculated to determine the type of financial stability)
Koz \u003d (Cob + ∑KiZ) / ISS,
Koz - the ratio of stocks;
Sob - own working capital (Table 6, page 1);
∑KiZ - the amount of credits and loans (Table 5, p. 9);
ISS - sources of own funds (Table 9, page 2).
Koz 08 \u003d (17802 thousand rubles + 5618 thousand rubles) / 23668 thousand rubles = 0.99 = 99%
Koz 09 \u003d (11866 thousand rubles + 5474 thousand rubles) / 23482 thousand rubles = 0.74 = 74%
Goats 10 \u003d (8944 thousand rubles + 23630 thousand rubles) / 26616 thousand rubles = 1.22 = 122%
The calculation results allow us to draw the following conclusions:
1. At the beginning of the period, the financial condition of Askona LLC can be defined as stable, since the ratio of reserves and costs to sources of funds is almost equal to one (0.99), and reserves and costs are slightly more than the amount of own working capital, loans for goods and materials and temporarily free funds.
2. At the end of the period, the financial condition of the enterprise has improved, since inventories and costs are greater than the amount of own working capital, loans for goods and materials and temporarily free funds; the coefficient of provision of reserves and costs with sources of funds is greater than one (1.22), the financial condition of the enterprise can be recognized as absolutely financially stable. The results obtained can be presented in the form of a graph (Appendix 9).
Business activity analysis (productivity and return on assets)
Business activity in the conditions market economy It is customary to characterize the effectiveness of financial and economic activities. Such an analysis consists in evaluating the effectiveness of the use of material, financial and labor resources organizations, in determining turnover rates. The results of the analysis show the achieved level of business activity and its impact on the financial stability, competitiveness of the organization, labor efficiency of employees and their quality of life. The most important indicator of the business activity of the organization is labor productivity or output per employee. It characterizes the efficiency of the use of labor resources and is determined by the formula: P \u003d VPT / SCH, where
P - performance;
VPT - revenue (net) of the Profit and Loss Statement;
SCH - average headcount employed during the reporting period.
P 08 \u003d 18,933,600 rubles / 1464 people \u003d 12,932.79 rubles.
P 09 \u003d 29,116,950 rubles / 1531 people \u003d 19,018.26 rubles.
P 10 \u003d 31,300,300 rubles / 1592 people \u003d 19,660.99 rubles.
We can clearly see an increase in labor productivity. As a rule, it is achieved either by increasing the proceeds from the sale of products, works or services, or by reducing the number of personnel of the organization. In our case, the first option takes place, because. The number of employees has been growing year by year.
Another indicator that characterizes the business strategy is the return on assets, which shows the efficiency of using the company's fixed assets. This indicator is calculated based on the balance sheet data (p. 120) and the Profit and Loss Statement (net revenue p. 010) using the formula:
F=st.010/st.120
F 08 \u003d 18933.60 thousand rubles / 46678.00 thousand rubles = 0.40
F 09 \u003d 29116.95 thousand rubles. / 52364.00 thousand rubles = 0.55
F 10 \u003d 31300.30 thousand rubles. / 65350.00 thousand rubles = 0.49
Thus, it can be seen that for each thousand rubles invested in fixed assets in 2008, 2009 and 2010. produced products for 400, 550 and 490 rubles. respectively.
The growth of capital productivity indicates an increase in the efficiency of the use of fixed assets and is regarded as a positive trend. It is achieved through an increase in sales revenue and a decrease in the value of residual value fixed assets. In our case, the return on assets decreased in 2010 compared to 2009, which will undoubtedly be a negative trend.
Profitability analysis
Profit is one of the main sources of formation financial resources enterprises. Profitability, in contrast to profit, showing the result of entrepreneurial activity, characterizes the effectiveness of this activity. The profitability of products can be calculated both for all products sold, and for its individual types:
1) The profitability of all products sold can be defined as:
The percentage of profit from the sale of products to the costs of its production and sale (cost);
Percentage of profit from sales of products to revenue from sales of products;
Percentage of balance sheet profit to revenue from sales of products;
The ratio of net profit to sales revenue.
These indicators give an idea of the effectiveness of the current costs of the enterprise and the degree of profitability of the products sold.
2) The profitability of certain types of products depends on the price and the total cost. It is defined as the percentage of the selling price of a unit of a given product minus its full cost to the full cost of a unit of this product.
3) Profitability of property (assets) of an enterprise is calculated as a percentage of gross (net) profit to the average value of assets (property).
4) The profitability of non-current assets is defined as the percentage of net profit to the average value of non-current assets.
5) Return on current assets is defined as the percentage of net profit to the average annual value of current assets.
6) Return on investment is defined as the percentage of gross profit to the value of the property of the enterprise.
7) Return on equity is defined as the percentage of gross (net) profit to the amount of equity.
Profitability indicators are used in the process of analyzing the financial and economic activities of the enterprise management decisions, decisions of potential investors to participate in financing investment projects.
The main indicator is the profitability of sales. It reflects the return on investment in the main production. It is determined according to the Profit and Loss Statement:
R p \u003d (p.050 / (p.020 + p.030 + 040)) * 100%
It is customary to consider an organization to be highly profitable if P n > 30%, i.e. for every 100 rubles. conditional investments profit exceeds 30 rubles. When P p takes a value from 20 to 30%, the organization is considered highly profitable, in the range from 5 to 20% medium profitable, and in the range from 1 to 5% low profitability.
In our case, the calculation will be as follows:
Rp 08 \u003d (530.1 thousand rubles / (823.2 thousand rubles + 1836.6 thousand rubles + 5178.3 thousand rubles)) * 100% \u003d 6.76%
Rp 09 \u003d (563.3 thousand rubles / (874.65 thousand rubles + 2051.3 thousand rubles + 5601.9 thousand rubles)) * 100% \u003d 6.61%
Rp 10 \u003d (596.4 thousand rubles / (926.1 thousand rubles + 1966.1 thousand rubles + 5625.6 thousand rubles)) * 100% \u003d 7.00%
So, we can observe that our enterprise is averagely profitable, however, by 2010 the profitability indicator has slightly increased, which is a positive trend.
Valuation of capital invested in property
The creation and increment of the property of the enterprise is carried out at the expense of its own and loan capital, the characteristics of which are shown in the liabilities side of the balance sheet. To analyze the capital invested in the property of the enterprise, it is advisable to compile Table 3, from which it can be seen that in the analyzed period there was a general increase in the sources of the enterprise's funds by 49,718 thousand rubles. This was due to an increase in equity capital by 14,874 thousand rubles. and borrowed capital for 34848 thousand rubles.
Table 3. Valuation of capital invested in property
| № | Indicator | Change | ||||||
| Specific weight, % | Specific weight, % | Specific weight, % | ||||||
| 1 | Sources of enterprise funds, total | 80940 | 100 | 89836 | 100 | 130658 | 100 | +49718 |
| 2 | Equity | 64978 | 80,30 | 65638 | 73,06 | 79852 | 61,12 | +14874 |
| 3 | Borrowed capital | 15962 | 19,70 | 24198 | 26,94 | 50806 | 38,88 | +34844 |
| 3.1 | Long term capital | 74 | 42 | 70 | - 4 | |||
| 3.2 | Short term capital | 15888 | 24156 | 50736 | +34848 | |||
| 4 | Funds needed to finance non-current assets | 47176 | 53772 | 70908 | +23732 | |||
| 5 | The amount of own working capital | 17802 | 11866 | 8944 | - 8858 | |||
Looking ahead and analyzing the factors affecting the amount of own working capital (Table 6), it can be noted that the increase in own funds was due to an increase in additional capital by 7046 thousand rubles, reserve capital by 3630 thousand rubles and retained earnings by 4198 thousand roubles. The share of retained earnings in the total volume of own sources for the analyzed period increased by 2099 thousand rubles. This may indicate an increase in the business activity of the enterprise.
The increase in borrowed capital was due to the growth of short-term liabilities (+34844 thousand rubles), which largely covered the decrease in long-term liabilities (-4 thousand rubles). The change in short-term liabilities, in turn, was caused by an increase in accounts payable (+19,600 thousand rubles). It should be noted that during the analyzed period, accounts receivable increased by 6616 thousand rubles. (Table 2), which is 3 times less growth accounts payable.
When analyzing the capital invested in property, it is necessary to evaluate its structure (Table 4).
Table 4. Capital structure of Askona LLC for 2008-2010
| № | Indicator | 2008 | 2009 | 2010 |
| 1 | Current assets, % (Table 1, page 2) | 41,62 | 40,10 | 45,68 |
| 2 | Non-current assets, % (Table 1, page 1) | 58,38 | 59,90 | 54,32 |
| 3 | Own capital, % (Table 3, page 2) | 80,30 | 73,06 | 61,12 |
| 4 | Share of coverage of current assets by own capital and long-term borrowed funds (p.3-2) | 21,92 | 13,16 | 6,80 |
When evaluating the structure of an enterprise, the following rule applies: elements of fixed capital, as well as its most stable part of working capital, must be financed from own and long-term borrowed funds; the rest of the current assets, depending on the value of the commodity flow, should be financed by short-term borrowed funds.
In general, the capital structure of Askona LLC at the beginning of the analyzed period corresponds to the rule of optimal capital structure. But in 2009 and 2010 the situation worsens; if at the beginning of the reporting period, own sources and long-term borrowed funds covered non-current assets and 21.92% of current assets, then in 2009 the share of current assets covered by equity capital and long-term borrowed funds decreased to 13.16%, and in 2010 to 6.80%. This happened due to a decrease in the share of equity capital and long-term borrowed capital in the total amount of the enterprise's funds and due to a change in the structure of the enterprise's property as a whole. A negative trend is an increase in the share of short-term borrowed funds of the organization. The change in the capital structure of Askona LLC can be defined as a negative trend in the activity of the enterprise, as this indicates that, in general, during the analyzed period, there was an increase in the dependence of the enterprise on creditors.
Analysis of the security of the enterprise with its own working capital
Normal sources of coverage for inventories, costs and receivables include:
Own capital (due to which own working capital is formed);
Short-term credits and loans;
Trade accounts payable.
To analyze the security of the enterprise with its own working capital, we will compile Table 5, from which it can be seen that the availability of own working capital at the end of 2008 was insufficient to cover stocks, costs and receivables. The lack of own working capital may indicate an unsustainable financial position our enterprise.
Table 5. Security of the enterprise with its own working capital
| № | Indicator | Change | |||
| 1 | 17802 | 11866 | 8944 | - 8858 | |
| 2 | Stocks | 23016 | 23120 | 23344 | +328 |
| 3 | Accounts receivable of buyers and customers for goods, works, services | 568 | 1566 | 1204 | +636 |
| 4 | Advances issued | - | - | - | - |
| 5 | Total (line 2+3+4) | 23584 | 24686 | 24548 | +964 |
| 6 | Short-term loans and loans against reserves and costs | - | - | - | - |
| 7 | Accounts payable for goods, works, services | 5618 | 5474 | 23630 | 18012 |
| 8 | Advances received from buyers and customers | - | - | - | - |
| 9 | Total (p.6+7+8) | 5618 | 5474 | 23630 | +18012 |
| 10 | Inventories and costs not credited by the bank | 17966 | 19212 | 918 | - 17048 |
| 11 | Surplus (shortage) of own working capital to cover inventories, costs and receivables | - 164 | - 7346 | 8026 | +8190 |
At the end of 2009 there were significant negative changes, which led to a sharp increase in the lack of working capital in the amount of 7346 thousand rubles. The reason for this was the growth in the volume of inventories and costs not credited by the bank, and the decrease in the volume of own working capital at the enterprise. The increase in surplus inventories and costs not credited by the bank is due to the fact that the increase in inventories, costs and receivables exceeded the increase in loans and borrowings.
In 2010 there was an increase in accounts payable (+19,600 thousand rubles). The reason for this growth was a sharp increase in the company's debt to pay dividends to its founders. By the end of the year, the enterprise has an excessive amount of own working capital to cover inventories, costs and receivables, which indicates the normal financial stability of the joint-stock company.
Since at the beginning of the period there is a lack of own working capital to cover inventories, costs and receivables, it is necessary to analyze the influence of various factors on their value (Table 6).
Table 6. Analysis of factors affecting the amount of own working capital
| № | Indicator | Change | |||
| 1 | Availability of own working capital | 17802 | 11866 | 8944 | - 8858 |
| 2 | Influence of factors | ||||
| 2.1 | Authorized capital in terms of the formation of working capital | - 22172 | - 28768 | - 45904 | - 23732 |
| 2.2 | Extra capital | 23562 | 30608 | 30608 | +7046 |
| 2.3 | Reserve capital | 4470 | 6212 | 8100 | +3630 |
| 2.4 | Retained earnings (uncovered loss) | 11942 | 3814 | 16140 | +4198 |
The data presented in Table 6 allow us to draw the following conclusions:
1. In the reporting period, the value of non-current assets increased by 23,732 thousand rubles, therefore, there is a negative trend in the change in the authorized capital in terms of the formation of working capital: in 2008, its shortfall was 22,172 thousand rubles, in 2009 it increased to 28,768 thousand rubles, by the end of 2010 increased by 17136 thousand rubles. and amounted to 45904 thousand rubles.
2. Additional capital in the period under review increased by 7046 thousand rubles. and amounted to 30608 thousand rubles.
3. The amount of reserve capital for the analyzed period increased by 3630 thousand rubles.
4. By the beginning of 2009, retained earnings decreased significantly and amounted to 3814 thousand rubles, against 11942 thousand rubles. In the past year. At the end of 2010, the value of this indicator increased by 12,326 thousand rubles. and amounted to 16140 thousand rubles.
The total influence of the factors amounted to 8858 thousand rubles, which is the amount of the decrease in own working capital (Table 6, page 1).
Evaluation of the effectiveness of the use of working capital in the enterprise
The main characteristic of working capital (in addition to cost and structure) is the efficiency of their use. The following indicators of the efficiency of the use of working capital are distinguished:
Working capital turnover ratio;
Working capital utilization factor;
Duration of one turn in days;
The amount of released or additionally attracted working capital.
The calculated data of these indicators are presented in Table 7.
Table 7. Analysis of the effectiveness of the use of working capital
| № | Indicator | Change | |||
| 1 | Sales volume | 254654 | 337956 | 361554 | +106900 |
| 2 | Number of days in the reporting period | 360 | 360 | 360 | |
| 3 | One-day turnover of product sales (calculation) | 707,37 | 938,77 | 1004,32 | +296,95 |
| 4 | Average value of balances | 33690 | 36022 | 59680 | +25990 |
| 5 | Working capital turnover ratio (calculation) | 7,56 | 9,38 | 6,06 | - 1,5 |
| 6 | Working capital utilization factor (reverse page 5) | 0,13 | 0,11 | 0,17 | +0,04 |
| 7 | Duration of one revolution in days (calculation) | 47,61 | 38,38 | 59,41 | +11,80 |
Calculation for filling the table:
OO - one-day turnover of product sales;
D - duration of the analyzed period.
OO 08 \u003d 254654 thousand rubles. / 360 days = 707.37 thousand rubles
OO 09 \u003d 337956 thousand rubles. / 360 days = 938.77 thousand rubles
OO 10 \u003d 361554 thousand rubles. / 360 days = 1004.32 thousand rubles
K about. =Q p / Q cp ,
K about. - turnover ratio of working capital;
Q p - sales volume;
To ob.08 \u003d 254654 thousand rubles. / 33690 thousand rubles = 7.56
To ob.09 \u003d 337956 thousand rubles. / 36022 thousand rubles = 9.38
To ob.10 = 361554 thousand rubles. / 59680 thousand rubles = 6.06
K s \u003d Q cp / Q p,
K h. - working capital utilization factor;
Q p - sales volume;
Q cp - the average cost of the balances.
To z.08 \u003d 33690 thousand rubles. / 254654 thousand rubles = 0.13
To z.09 = 36022 thousand rubles. / 337956 thousand rubles = 0.11
To z.10 = 59680 thousand rubles. / 361554 thousand rubles = 0.17
ON=D/K about. ,
ON - the duration of one revolution in days;
D - duration of the analyzed period;
K about. - turnover ratio of working capital.
ON 08 = 360 days / 7.56=47.61 days
ON 09 = 360 days / 9.38=38.38 days
PO 10 = 360 days / 6.06=59.41 days
In the analyzed period, there was an increase in the volume of sales by 106,900 thousand rubles. and the average cost of working capital balances by 25,990 thousand rubles. These changes have had the following impact on the efficiency of the use of working capital:
1. There was an increase in the one-day turnover of product sales by 296.95 thousand rubles. This can be defined as a positive trend in the activities of the enterprise.
2. The turnover ratio at the beginning of 2010 decreased by 1.5 compared to 2008. This suggests that if at the beginning of the period under review one ruble of working capital brought 7.56 rubles. of sold products, then at the beginning of 2009 this value amounted to 9.38 rubles, by the end of the reporting period 0.06. In other words, working capital makes 6.06 turnovers, which is 1.5 turnovers less than at the beginning of the study period.
3. The working capital utilization rate for the analyzed period increased by 0.04 and amounted to 0.17, that is, if at the beginning of the year to receive 1 rub. sold products required 0.13 rubles. working capital, then by the end of the year this value increased and amounted to 0.17 rubles. This can be defined as a negative trend in the use of working capital.
4. There were significant fluctuations in the duration of one turnover in days from 47.61 days in 2008 to 38.38 days in 2009 and 59.41 days in 2010, that is, by 11.80 days, which, in in turn, is a negative trend in the use of working capital.
When analyzing working capital, it is necessary to evaluate the influence of factors on the turnover rate of working capital.
Kob \u003d Q p / Q cp,
Cob - turnover ratio of working capital;
Q p - sales volume;
Q cp - the average cost of the balances.
As a result of an increase in the volume of sales by 106,900 thousand rubles. and an increase in the average cost of working capital balances by 25,990 thousand rubles. the turnover ratio in the reporting period decreased by 1.5, which was a negative trend in the use of working capital.
It should be noted that during the analyzed period there were negative changes in most indicators characterizing the efficiency of the use of working capital. Therefore, we can conclude that there is a general trend towards a decrease in the efficiency of the use of working capital.
General conclusions on the assessment of the financial condition of Askona LLC
Based on the analysis of the financial condition of the organization, we can conclude that Askona LLC is in a difficult situation. Namely, by 2010 the critical and current liquidity ratios are below the normative values, which indicates the company's inability to repay its debts to creditors.
Also, a negative point is the decrease in the coefficients of financial stability, equity capital agility and financial independence. This suggests that the largest share in the total amount of funding sources is occupied by borrowed funds.
Also, the growing accounts receivable and accounts payable cannot be called a positive trend, which indicates insufficient work to strengthen the settlement and payment discipline in the organization.
But, despite these changes, for some indicators there has been a trend towards improvement, namely, increased sales revenue (Table 7, page 1), - in 2008 it amounted to 254,654 thousand rubles, in 2009 - 337,956 thousand .rub., in 2010 361,554 thousand rubles, although the cost increased. It is important to note that this is due to an increase in tailoring for third-party organizations, and not an increase in the production of own products.
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The level of the coefficient of provision of inventories with own working capital is estimated, first of all, depending on the state of inventories. If their value is much higher than the reasonable need, then own working capital can cover only a part of inventories, i.e., the indicator will be less than one. On the contrary, if the enterprise does not have enough material reserves for the smooth implementation of activities, the indicator may be higher than one, but this will not be a sign of a good financial condition of the enterprise. In our case, the ratio of the provision of inventories with own working capital at the beginning of the period takes a negative value, which indicates the absence of SOS capable of covering inventories and indicates an unsatisfactory state of working capital, but by the end of the period it becomes positive, so we can say that in the future the state of working capital funds are good.
The coefficient of maneuverability of own capital shows which part of it is used to finance current activities, that is, invested in working capital, and which part is capitalized. The value of this indicator can vary significantly depending on the sectoral affiliation of the enterprise. In capital-intensive industries, its normal level should be lower than in material-intensive industries, since in capital-intensive industries, a significant part of own funds is a source of coverage for fixed production assets. From a financial point of view, the higher the agility ratio, the better the financial condition of the enterprise. In our case, this coefficient takes positive value at the end of the year, which also indicates a satisfactory condition of working capital.
Net mobile funds show what will remain in the turnover of the enterprise if all its short-term debt is repaid at once. The corresponding coefficient characterizes the stability of the working capital structure, that is, the stability of that part of the balance sheet asset that is subject to the most frequent changes in the course of the current activities of the enterprise.
The ratio of net mobile funds at the end of the period takes a positive value, which indicates an unstable structure of working capital.
The next group of indicators characterizes the financial stability of the enterprise in terms of the state of fixed assets. When evaluating the permanent asset index, which reflects the share of equity diverted to fixed assets and non-current assets, it should be borne in mind that the higher it is, the more necessary it is to attract long-term loans and borrowings, or to address the issue of the possibility of reducing fixed assets, but first turn to reduce other non-current assets (construction in progress, long-term financial investments etc.). In all cases, in order to improve the financial condition of the enterprise, it is desirable that the sources of own funds increase to a greater extent than the cost of fixed assets and other non-current assets. The independent value of the permanent asset index is quite limited. It must be considered only together with indicators characterizing the results of production and economic activities.
In our case, there is an increase in the fixed asset index with a decrease in profitability (see Table 3), which negatively characterizes the analyzed enterprise from a financial point of view.
Intensity of use various sources funds for renewal and expansion of production is estimated by the coefficient of long-term attraction of borrowed funds, as well as the depreciation accumulation coefficient. Analyzing the obtained values of the coefficient of long-term borrowing, it should be noted that during the analyzed period, the company practically does not use this type of source of funds. As for the depreciation accumulation coefficient and the intensity of depreciation accumulation, their values were not calculated due to the lack of relevant information on the depreciation of fixed assets of the analyzed enterprise.
The level of the production potential of the enterprise, security production process means of production determines the coefficient of the real value of the property. Based on economic practice data, it is considered normal when the real value of the property is about 0.5 of the total value of assets. In our case, this coefficient at the end of the reporting period takes a value equal to 0.49, which indicates normal level the production potential of the enterprise and the provision of the production process with the means of production.
A generalized characteristic of the financial stability of the company's liabilities can be given using the autonomy coefficient and the ratio of borrowed and own funds. The meaning of both indicators is very close. In practice, one of them can be used to assess financial stability. But more clearly, the degree of dependence of the enterprise on borrowed funds is expressed in the ratio of borrowed and own funds. The larger this ratio, the greater the dependence of the enterprise on borrowed funds, i.e., in this case, it gradually loses financial stability. It is usually considered that if its value exceeds one, then the financial stability and autonomy of the enterprise reaches critical point. However, this is not always so clear cut. The permissible level of dependence on borrowed funds is determined by the operating conditions of each enterprise and, first of all, by the speed of turnover of working capital. Therefore, in addition to the calculation of this coefficient, it is necessary to involve the results of calculations of the turnover rate of material working capital and receivables for the analyzed period. If receivables turn around faster than material working capital, this means a fairly high intensity of cash receipts to the company's accounts, i.e., as a result, an increase in own funds. Therefore, with a high turnover of material working capital and an even higher turnover of receivables, the ratio of borrowed and own funds can significantly exceed one, without loss of financial stability.
Analyzing the obtained values of the ratio of borrowed and own funds, it should be noted that in 2008 this indicator exceeded one. However, if we analyze the results of calculating the speed of turnover of inventories and receivables (see tables 9 and 10), we can see that receivables turn around faster than inventories, which means a fairly high intensity of cash flow to the company's accounts. Therefore, the financial stability of the analyzed enterprise can be considered satisfactory, despite the fact that the ratio of borrowed and own funds significantly exceeds one.
An analysis of the state of fixed assets showed that the analyzed enterprise has a good production potential and is provided with the necessary means of production. Financial stability of the analyzed enterprise can be considered satisfactory, despite the fact that borrowed funds significantly exceed their own.