COMPLEX ANALYSIS OF CURRENT ACTIVITIES AS OF FINANCIAL REPORTING...

COMPLEX ANALYSIS OF CURRENT ACTIVITIES AS OF THIS FINANCIAL REPORTING

As a result of studying this section, the student must:

know

• The theoretical and organizational basis for conducting financial analysis;

• Typical economic and mathematical methods and methods of financial analysis for solving specific economic problems, including the methodology of "economic reading" financial statements of the company;

• technical techniques and methods for comprehensive analysis of financial statements;

• methods of systematization, detailing, modeling of various factors of financial activity;

• modern methods of diagnostic research;

• a system of integrated and balanced indicators for assessing the financial condition, performance, efficiency of using financial resources;

• use the conceptual framework, terminology in the practice of financial reporting analysis;

• use various techniques and analytical methods in assessing the positive and negative development trends, in forecasting the financial condition, business situations, risk factors, financial and economic performance;

• Develop tools for ongoing research;

own skills

• application of theoretical knowledge and organizational fundamentals of systemic complex analysis of financial condition, results of financial and economic activity

• Systematization, detailing, construction of factor systems and modeling of various factors of financial and economic activity

• Arguments in support of decisions on effective management of financial resources, financial and operational risks.

ANALYSIS OF THE FINANCIAL CONDITION: EVALUATION OF THE PAYMENT AND FINANCIAL STABILITY OF THE ORGANIZATION

The result of the study of the chapter should be knowledge of the content, the structure of the forms of annual financial statements, the analytical value of each of them, the relationship between the composition and content of reporting of different organizational and legal forms; practical skills of the methodology of "economic reading" financial statements of the company, calculation and assessment of the basic indicators that determine the financial condition of the organization.

Financial Analysis and Financial Condition Assessment: Concept, Value and Analysis Problems

Financial analysis includes a comprehensive study of the financial condition of the organization, performance, efficiency of financial resources.

By financial condition in general terms is understood the ability of the business entity to self-development, its competitiveness, potential in business cooperation. Specifying the concept of the financial state, it is necessary to distinguish such important components as the state of capital (assets) at the time of research and in the process of its circulation and the sources of financing the main activity (liabilities), the solvency of the organization, financial stability. Financial condition as a complex economic category requires a profound scientifically grounded comprehensive study of the process of financing production and economic activities, the movement of financial resources in a single production-sales process, the interdependence of capital structure and financial performance.

The purpose of the financial analysis is to assess the past performance of the enterprise and its position at the time of analysis, and to develop and justify the forecasted development.

The tasks solved within the framework of financial analysis are aimed at ensuring the financial stability of the enterprise in the short, medium and long term and formulate requirements for its sustainable development at various stages of operation:

• timely identification and elimination of deficiencies in financial activities and the search for reserves to improve the financial condition of the enterprise;

• assessment of solvency, liquidity, financial stability at the current moment and prospect;

• assessment of the impact of external and internal factors on financial performance indicators;

• development of events, management decisions aimed at more efficient use of financial resources and strengthening the financial condition of the enterprise;

• evaluation of financial performance of activities, cause-effect relationships and factors that have had the most significant impact;

• forecasting of financial results, economic profitability, development of models of financial condition under different options for using resources.

Financial analysis is carried out in the following areas:

1) valuation of property position and capital structure:

• analysis of sources of capital formation;

• analysis of the allocation of capital;

2) evaluation of the efficiency and intensity of capital use:

• analysis of capital turnover;

• analysis of profitability (profitability) of capital;

3) an estimation of a financial condition of the enterprise:

• Financial Stability Analysis;

• analysis of liquidity and solvency;

4) assessment of creditworthiness and bankruptcy risk.

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