Analysis of financial statements
The main task of the head of the company is to control how the attractiveness of the company changes in the eyes of the owner, potential investor, creditor. Control of investment attractiveness is carried out on the basis of analysis of the company's financial statements, detailed analysis of financial and economic activities. Financial reporting is the main source of information for assessing the company's financial condition.
A systematic approach to the analysis of economic activity requires measuring the effectiveness that characterizes the effectiveness of the organization's work with respect to any resources. Detailed analysis of financial statements can be divided into two main blocks.
1. Analysis of the financial condition of the Group of Companies:
o evaluation of the property potential;
o liquidity assessment;
o financial sustainability assessment;
o solvency assessment.
2. Business activity analysis:
o performance evaluation;
o evaluation of return on investment;
o evaluation of the effectiveness of resource management;
o evaluation of market activity;
o Risk assessment.
In practice, financial reporting indicators may not provide information about the actual situation for objective reasons or malicious intent. Therefore, the quality of the financial information provided should be checked at the preparatory stage.
Each report form has its own analytical value. On the basis of the balance sheet, the company's property structure, its liquidity and financial stability are assessed. The income statement provides information on the dynamics of performance and costs. Based on the data on the cash flow statement, the company's solvency is assessed.
Preparatory stage of the analysis
At the preparatory stage, the following are examined: the report of the auditors, notes to the financial statements, an explanatory note
or annual reports for the company; the accounting policy, information on the financial condition, the factors influencing the financial results of the reporting period, the basic operations influencing the financial position of the company, risks, etc. are examined
CCs are large, public companies. The organizational and legal form of wholesale generating companies (WGCs) and TGCs is exclusively OAO.
In accordance with the order of the Federal Financial Markets Service (FFMS), "On approval of the Regulation on disclosure of information by issuers of equity securities"; from 16.03.2005 No. 05-5/pz-n (with amendments) The CCs are required to disclose annually the basic information on the financial and economic state. It contains:
o indicators of financial and economic activity of the issuer in dynamics;
o market capitalization of the issuer - the product of the number of shares of the corresponding category by the market price of one share;
o issuer's obligations - short-term (total, long-term, short-term, its structure), issuer's credit history, other liabilities;
o risks associated with the acquisition of securities (industry, financial, legal, country);
o branches and representative offices;
o indicators of the issuer's main economic activity - revenues, the structure of the cost of goods, suppliers, sales markets, these indicators can be indicated both in the HA and in the context of each station included in the Civil Code;
o composition and structure of fixed assets.
Also in the annual report are given such technical and economic indicators of the company's activity (usually with post-detailed details), like:
o used fuel and fuel balance;
o installed and working power;
o the utilization factor of the installed capacity (CIUM);
o efficiency of installations, etc.
This information is useful in the preparatory phase; along with a preliminary review of the balance, an analysis of technical and economic indicators allows you to assess the property and financial situation of the enterprise, identify the presence of bottlenecks in the activities of the company, to give an overall assessment of the property and financial situation of the Civil Code.
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