Grouping of balance sheet liabilities according to the degree of urgency of their payment. Balance sheet of assets and liabilities

The concepts of asset and liability are the main components of the balance sheet of an organization, which summarizes materials about the activities and economic situation of the enterprise. Let us consider in more detail what the sections and items of the balance sheet show, as well as what is reflected in the assets and liabilities of the balance sheet.

The sections of the enterprise's balance sheet are shown in tabular form: the left side is Asset, the right side is Liability.

To submit Form 1 of the financial statements to the Federal Tax Service, according to Order of the Ministry of Finance dated July 2, 2016 N 66n, the balance sheet of the enterprise is detailed by item. Detailing by item allows you to highlight the main types of property and liabilities of the enterprise.

In essence, balance sheet items are indicators of assets and liabilities of the balance sheet, which characterize economic assets and sources of formation by individual types. Using the list of balance sheet items, you can always obtain summary indicators for the statements for analyzing the financial activities of the enterprise.

To fill out data on balance sheet items, enterprises use the balances in their accounting accounts as of the reporting date, in accordance with PBU 4/99.

An important rule when drawing up a balance sheet for an enterprise is that the amount of an asset should always be equal to the amount of a liability.

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The assets of the enterprise's balance sheet reflect the following economic assets:

• fixed assets on account 01;
• intangible assets on account 04;
• investments in non-current assets on accounts 07 and 08;
• accounts receivable on accounts 62; 76; 73, etc.;
• financial investments on account 08;
• inventories on accounts 10; 26; 41; 43, etc.;
• cash in accounts 50; 51; 52; 55, etc.

The liability side of the enterprise’s balance sheet shows the sources of formation of economic assets:

• profit on accounts 84 and 99;
• authorized capital on account 80;
• reserve capital on account 82;
• additional capital on account 83;
• long-term loans and borrowings on account 67;
• short-term loans on account 66;
• accounts payable on accounts 60; 76; 70; 68 and 69.

It is important to note that the assets and liabilities of the balance sheet reflect different aspects of accounting for economic assets; they are interrelated. That is, when an asset increases by a certain amount, it is necessary to increase the liability by the same amount. This principle of increasing amounts also applies to liabilities.

How are the assets and liabilities of the balance sheet formed?

Let's look at it in more detail using an example.

Example 1. Let's say an enterprise purchased a fixed asset worth 500,000 rubles. for the production of semi-finished products.

Fixed assets are reflected in the asset, that is, the amount of the enterprise’s asset increased by 500,000 rubles. The other side is that you need to pay the supplier 500,000 rubles for the fixed asset. The debt to the supplier is reflected in the liability, that is, the company's liability also increased by 500,000 rubles. Therefore, the main condition is met: Active = Passive

Example 2. Let’s say an enterprise has taken out a loan from a bank in the amount of 750,000 rubles.

The enterprise's debt to the bank is reflected in the liability, that is, the enterprise's liability increased by 750,000 rubles. The other side is that after transferring the received loan, the amount in the current account increased by 750,000 rubles. Cash in the company's current account is reflected in the asset, that is, the company's asset increased by 750,000 rubles. Therefore, the main condition is met: Active = Passive

Conclusion: Assets participate in the economic activities of the enterprise to generate profit, and liabilities are sources of increasing assets, and must always be equal.

In we provided a definition of the liquidity of an enterprise's assets. We will talk about the grouping of assets according to the degree of liquidity in the balance sheet in this material.

Liquidity groups

When they talk about balance sheet liquidity, they mean the liquidity of assets and liabilities. However, when applied to liabilities, the term “liquidity” is not entirely appropriate. When talking about liquidity and the liability balance, we mean the urgency of paying obligations.

Asset and liability items on the balance sheet, based on their liquidity and urgency, are combined into 4 groups:

Asset liquidity ratio

The distribution of balance sheet asset and liability items into groups is important for analyzing the liquidity of the enterprise’s balance sheet. Thus, by correlating groups of assets and groups of liabilities on the balance sheet, asset liquidity ratios are determined.

So, for example, the absolute liquidity ratio (KAL) characterizes the organization’s ability to pay off its current liabilities using the most liquid assets:

K AL = A1 / (P1 + P2)

Standard value KAL ≥ 0.2.

The ability of an organization to pay off its current liabilities through the sale of liquid assets is called the quick liquidity ratio (KLR) and is determined as follows:

K BL = (A1 + A2) / (P1 + P2)

Financial condition of the organization represents the provision of its financial resources, the feasibility of their placement and the efficiency of use, i.e. the organization's ability to finance its activities.

The financial condition of the organization is influenced by the results of production, commercial and financial activities. In this regard, the implementation of the production program in these areas determines the degree of sustainability of the organization's financial condition. Thus, the main purpose of the analysis is to identify shortcomings in financial activities and search for reserves for improving the financial condition to ensure the solvency of the organization.

The main objectives of the analysis the financial condition of the organization are:

1) assessment of the implementation of the production program based on the receipt of financial resources and their use;

2) forecasting possible financial results and developing models of the financial condition of the organization;

3) development of measures aimed at more complete formation and efficient use of financial resources, and improvement of the financial condition of the organization;

Information about the financial condition of an organization is of interest to both managers and owners of the organization, as well as potential investors, suppliers, tax inspectors, etc. In accordance with this, the analysis of the financial condition of the organization is usually divided into:

– internal, which is carried out by the economic services of the organization to develop current and strategic financial policies aimed at ensuring the normal functioning of the organization and preventing bankruptcy;

– external, carried out by regulatory authorities, investors and other interested organizations in order to determine the profitability of investing, ensuring profit maximization and risk reduction.

Analysis of the financial condition of the organization is carried out on the basis of information sources of accounting and management accounting.

Analysis of the financial condition of an organization begins with an analysis of the balance sheet, which is a system of interrelated indicators that reflect in monetary terms the state of the organization’s funds, both in terms of their composition and sources, intended purpose and repayment terms. The balance sheet consists of two parts: an asset and a liability, and the asset reflects the funds of the organization, and the liability reflects the sources of formation of these funds.

Analysis of the organization's assets begins with an analysis of the composition and dynamics of assets, the ratio of fixed and working capital, as well as an analysis of individual items of assets.

The composition of a balance sheet asset can be represented by the following diagram (Table 2.2.29):

Composition of balance sheet asset items						Table 2.2.29
Fixed assets	Intangible assets
	Fixed assets
	Construction in progress
						Immobilized
	Long-term financial investments
						bathroom assets
Negotiable
	Accounts receivable
	Short-term financial investments
	Cash

The main criteria for grouping balance sheet asset items is the degree of their liquidity, expressed by the speed and minimization of losses in the process of conversion into cash; as a result, all balance sheet assets are divided into long-term (non-current) and current (current).

In the process of analyzing assets, organizations, first of all, study the changes that have occurred in the composition and structure of assets (Table 2.2.30).

Table 2.2.30

Analysis of the organization's assets

		For the beginning of the year		At the end of the year		Deviations, +/-
	Indicators
I. Non-current assets, total:
	Intangible assets
	Fixed assets
	Construction in progress
	Profitable investments in mothers
al values
	Long-term financial investments
II. Current assets, total:
	Accounts receivable
	Short-term financial investments
	Cash
Total assets

The table shows that during the analyzed year, the organization’s total assets increased by 8,478 thousand rubles, including non-current assets by 6,662 thousand rubles, current assets by 1,816 thousand rubles. As a result of this, the structure of assets changed, the share of fixed and cash assets increased, while at the same time, in other items there was a decrease in the share of both non-current and current assets.

The main share in non-current assets is made up of fixed assets, therefore, when studying the composition of fixed assets, the ratio of their assets is determined.

active and passive parts, power and working machines, analyze the physical and moral wear and tear of assets, as well as the efficiency of their use.

Inventory analysis is carried out with the aim of optimizing it to ensure a normal production process. The accumulation of large inventories characterizes a slowdown in business activity, which leads to a deterioration in the financial condition of the organization. At the same time, a lack of inventory leads to idle capacity, reduced production and reduced profits. Providing the organization with the necessary quantities of inventory is carried out through their rationing, i.e. calculating the minimum amount of inventory in monetary terms to ensure operational efficiency.

The analysis of accounts receivable is carried out from the perspective of changes in production volumes, i.e. as the scale of sales increases, the volume of receivables invariably increases, but it is important to establish the parameters of the relationship between these indicators, as well as to identify overdue receivables. The presence of the latter creates financial difficulties and worsens the financial condition of the organization.

The presence of funds indicates the solvency of the organization, however, the presence of large balances of money in accounts for a long time may be the result of inefficient use of working capital.

Analysis of the organization's liabilities involves determining the changes that have occurred in the structure of equity and debt capital, as well as the volume of funds raised on a short-term and long-term basis. According to the degree of ownership, the capital used is divided into equity and borrowed capital, and according to the duration of use, long-term (permanent) and short-term capital are distinguished (Fig. 2.2.16).

				Organizational means
Equity							Borrowed capital
						Long-term				Short term
	and reserves					obligations				obligations

Rice. 2.2.16. Classification of organization funds

The financial condition of an organization is largely determined by the ratio in the structure of the use of financial sources. Own capital is necessary to ensure the principle of self-financing and is the basis for the financial independence of the organization. At the same time, carrying out production and commercial activities only at the expense of one’s own funds is not always profitable, therefore most organizations use borrowed funds, which, under certain conditions, provide a higher return on equity capital (Table 2.2.31).

The table data shows that with an increase in sources of funds by 8478 thousand rubles. there was a reduction in the share of long-term liabilities and short-term loans and credits.

Then the dynamics and structure of equity and debt capital are analyzed for individual items.

Table 2.2.31

Analysis of the organization's sources of funds

			To the beginning				Deviations, +/-
		Indicators
	Capital and reserves, total:
	Authorized capital
	Own shares, repurchased
shareholders
	Extra capital
	Reserve capital
	Retained earnings (non-
covered loss)
II. Long term duties,
	Loans and credits
	Deferred tax liabilities
government
	Other obligations
III. Short-term liabilities,
		Loans and credits
		Accounts payable
		Other obligations
Total sources of funds

10.4. Financial stability assessment

The assets and liabilities of the balance sheet are interrelated, i.e. Each asset section of the balance sheet has its own sources of financing. Thus, non-current assets are financed mainly from equity capital and long-term borrowed funds, and current assets are formed from short-term borrowed funds and the organization’s own funds. Moreover, the constant part of the working capital is financed from the organization’s funds, and the variable part is financed from short-term borrowed capital (Table 2.2.32).

				Table 2.2.32
The ratio of assets and sources of their financing
	Non-negotiable		Own main
			Long-term debt	Permanent
Negotiable		Permanent part	Own
			working capital
		Variable part	Short-term borrowed capital

Since equity capital is reflected in the balance sheet as a total amount, in order to find the part from which the constant part of working capital is financed, it is necessary to subtract the amount of non-current assets from the total amount of equity capital (the total of the third liability of the balance sheet minus the first section of the asset of the balance sheet).

The amount of own working capital can also be determined by the difference between the amount of current assets and the amount of short-term and long-term financial liabilities (the total of section II of the assets of the balance sheet minus sections IV and V of the liabilities of the balance sheet) (Table 2.2.33).

Table 2.2.33

Calculation of the amount of equity capital of the organization

Options		Indicators	To the beginning
	1. Non-current assets, thousand rubles.
		Capital and reserves, thousand rubles.
		Own working capital, thousand rubles.
	4. Current assets, thousand rubles.
		Short-term liabilities, thousand rubles.
		Long-term liabilities, thousand rubles.
		Own working capital

After calculating the amount of own working capital, the structure of distribution of own capital and the provision of material working capital with own sources of financing are calculated, which is established by comparing the amount of own working capital with the total amount of material working capital.

Excess or lack of sources of funds for the formation of reserves and costs is one of the criteria for assessing the financial stability of an organization.

The following are distinguished: types of financial stability:

a) absolute stability of financial condition , when stocks and for-

spending less than the amount of own working capital and bank loans for inventory items;

b) normal stability, in which the solvency of the organization is guaranteed, and the amount of inventories and costs is equal to the amount of its own working capital and bank loans;

V) unstable financial condition when the amount of inventories and costs is equal to the total amount of own working capital, bank loans and temporarily free sources of funds (reserve fund, consumption and accumulation funds and others);

G) financial crisis, in which the amount of inventories and costs is higher than the amount of own working capital, loans and temporarily free sources of funds; in this case, balance is achieved through overdue payments to the budget, suppliers, employees, etc.

As a result of the analysis, the possibility of restoring a stable financial condition by accelerating the turnover of working capital is explored; reasonable reduction of inventories and costs; replenishment of own working capital and other activities.

The organization's capital is constantly in motion, moving from one stage to another. At the first stage, the organization uses advanced funds to purchase fixed production assets, raw materials and materials. At the second stage, inventories enter production, part of the funds goes to pay for labor and other expenses, and as a result, finished products are produced. At the third stage, products are sold and debt from buyers to suppliers is formed. On fourth stage Debt collection occurs and funds are credited to the organization’s accounts. The faster the advanced capital goes through all stages of the circulation, the more products the organization sells with the same amount of capital, and vice versa, a slowdown in turnover requires the attraction of additional resources and worsens the financial condition of the organization.

At the same time, one of the important points is to increase the efficiency of use of material resources by reducing losses and avoiding overexpenditures.

The efficiency of capital use is characterized by its profitability (return), calculated by the ratio of profit to the average annual cost of fixed and working capital, and the intensity of use - by the turnover ratio, as the ratio of proceeds from the sale of the average annual cost of capital. The relationship between these indicators can be expressed as follows:

			revenue from				revenue from
ER =			implementation				implementation	RP ×K
	capital amount		revenue from		revenue from		capital amount
	(annual average)		implementation		implementation		(annual average)

where ER is economic profitability; RP – return on sales; TO OB – turnover ratio.

Since capital turnover is an important indicator characterizing the business activity of an organization, for analysis purposes the following indicators are calculated:

1. Asset turnover ratio:

= revenues from sales

K about average annual cost of capital

2. Duration of one revolution:

In this case, the average capital balances are calculated according to the chronological average, and the number of days is: for the year - 360, quarter - 90, month - 30 days.

The rate of capital turnover is determined by its organic structure, i.e. ratio of fixed and working capital. The higher the share of working capital, the higher the turnover and, conversely, with an increase in the share of fixed capital, the turnover of the total amount of capital slows down.

As a result of the acceleration of turnover, part of the funds is released from circulation, the amount of which can be calculated as follows:

where P OB is the change in the duration of the turnover.

The efficiency of capital use is determined by calculating the following indicators:

1. Total return on invested capital , determined from-

bearing the amount of profit (profit before taxes and interest on loans) to the amount of invested capital:

ER = SKVP + ZK,

where ER is economic profitability; VP – profit before taxes and interest (gross profit);

SK, ZK – own and borrowed capital, respectively.

2. Rate of return on debt capital , calculated in relation to

We add the amount of funds paid on loans and borrowings to the average annual cost of loans, borrowings and debts of the organization:

R ZK = amount of debt obligations of the organization (average annual) = ZKR.

3. Return on equity, determined by the ratio of net profit to the average annual cost of equity capital:

R SK = PE SK,

where PE is the organization’s net profit, which can be expressed as follows:

PP = VP – N – PR,

where N is the amount of taxes paid; P R – amount of interest paid.

However, VP = ER × (SC + ZK); the taxation coefficient can be expressed

using the formula:

K N =

N = KN × VP = KN × ER (SK + ZK);

PR = RZK × ZK,

R SK =

ER(SK+ ZK) − KN × ER(SK + ZK) − RZK × ZK

ER(SK+ ZK)(1− KN ) − RZK × ZK

ER× SC(1− KN ) +

ER× ZK (1− KN ) − RZK × ZK

ER× SC(1− KN)

ZK [ ER(1− KN ) − RZK ]

ER(1− K

) + [ ER(1− K

) − P

Meanwhile, the difference between return on equity and return on invested capital after taxes forms the effect of financial leverage, i.e.:

EGF = ER(1− K

) + [ ER(1− K

) − P

VP− N

SK + ZK

ER(1− KN. ) + [ ER(1− K

N ) − R ZK ] ×

ER(SK + ZK) − KN × ER(SK + ZK)

SK + ZK

ER(1− K

) + [ ER(1− K

) − P

− ER(1− K

) = [ER(1− K

) − P

Financial leverage effect shows by what percentage the return on equity capital increases due to the use of borrowed funds in the organization’s turnover. Moreover, it arises if the economic profitability is higher than the interest on the loan.

The effect of financial leverage is realized taking into account two factors:

a) the difference between the return on invested capital after payment of tax and the interest rate for the loan, i.e. [ ER (1 − K N ) − R ZK ] ;

b) financial leverage, i.e. ratio of debt and equity

capital of ZK.

SK

Thus, if we have the following relationship:

ER (1− ​​K N ) − R ZK 0 ,

then a positive effect of financial leverage arises, i.e. under these conditions, it is profitable to attract borrowed capital to increase the return on equity.

If there is the following relationship:

ER(1− KN ) − RZK< 0 ,

then a negative effect of financial leverage is created, i.e. equity capital is consumed, which worsens the financial condition of the organization and can lead to bankruptcy.

In the case when interest costs are taken into account when calculating taxes, i.e. due to tax savings, the real interest rate for loans decreases; it can be expressed by the formula: R ZK (1 − K N), then the effect of financial

The total leverage is calculated as follows:

EDF = [ ER(1 − KN ) − RZK (1 − KN ) ] × S ZK K = [ (ER− RZK )(1 − KN ) ] × SK ZK .

Let us consider the essence of the effect of financial leverage in two options, without taking into account interest on a loan when calculating taxes and taking them into account (Table 2.2.34).

									Table 2.2.34
	Calculation of the effect of an organization's financial leverage
			Excluding				Including interest
		percent at
	Indicators						when taxing
		taxation
		organizations						organizations
	1. Own capital
	2. Borrowed capital

capital, %

Continuation of table 2.2.34

Excluding

Including interest

percent at

Indicators

when taxing

taxation

organizations

organizations

Interest rate for loan

Loan interest amount

Income tax rate

Taxable income

Amount of income tax

10. Net profit

11. Return on equity, %

12. Effect of financial leverage

In the first version the second organization received a financial leverage effect of 6.8%, i.e.

EGF 2 = [30(1− 0.24) − 16] × 250 250 = 6.8%, and the third organization: EGF 3 = [30(1− 0.24) − 16] × 125,375 = 20.4%

In the second option the effect of financial leverage depends on three factors: a) the difference between the total return on invested capital

after taxes and interest rate:

ER (1− ​​K N) − R ZK = 30(1− 0.24) − 16 = + 6.8%;

b) interest rate reduction due to tax savings:

R ZK − R ZK (1− K N) = 16 − 16(1− 0.24) = + 3.84%;

c) level of financial leverage for the second organization:

With ZK K = 250 250 = 1, then EGF = (6.8 + 3.84) × 1 = 10.64%.

For the third organization, the financial leverage is:

With ZK K = 125,375 = 3, then EGF = (6.8 + 3.84) × 3 = 31.92%.

The process of optimizing the structure of an organization's assets and liabilities to increase profits is called leverage, and a distinction is made between production, financial and production-financial leverage.

Production leverage represents the impact on the dynamics of profit by changing the structure due to fixed and variable costs of production costs and the volume of its output and is calculated by the ratio of the growth rate of gross profit (before interest and taxes) to the growth rate of sales in physical terms:

Organizations

Indicators

Unit price, rub.

Variable costs per unit. products, rub.

Amount of fixed costs, thousand rubles.

Break-even sales volume, pcs.

Production volume, pcs.

First option

Second option

Production increase, %

Sales revenue, thousand rubles.

First option

Second option

Amount of costs, thousand rubles.

First option

Second option

Amount of profit, thousand rubles.

First option

Second option

Gross profit growth, %

Production leverage ratio

Based on the above data, each percent increase in product sales will ensure an increase in gross profit for the first organization by

2.17%, the second – 2.64%, the third – 3.24%.

Financial leverage shows the relationship between the ratio of equity and borrowed capital and the amount of profit, determined by the ratio of the growth rate of net profit to the growth rate of gross profit, i.e.

K FL = PE %.

OP%

This ratio shows how many times the growth rate of net profit exceeds the growth rate of gross profit, which is ensured by the effect of financial leverage.

The general indicator is production and financial leverage , determined by the product of the production and financial leverage ratios. So, if the increase in sales volume is 20%, gross profit is 64.8% (for enterprise B), and net profit is 70%, then:

	To submarine				K FL =		1,08 ;	K PFL = 3 × 1.08 = 3.24.

The need to analyze balance sheet liquidity arises in market conditions due to increasing financial restrictions and the need to assess the creditworthiness of an enterprise. Balance sheet liquidity is defined as the degree to which an enterprise's liabilities are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of liabilities. Asset liquidity is the inverse value of balance sheet liquidity in terms of the time of transformation of assets into cash. The less time it takes for this type of asset to acquire a monetary form, the higher its liquidity. Analysis of balance sheet liquidity consists of comparing funds for assets, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liabilities for liabilities, grouped by their maturity dates and arranged in ascending order of maturity.

Grouping balance sheet assets and liabilities for liquidity analysis

Depending on the degree of liquidity, i.e. the rate of conversion into cash, the assets of the enterprise are divided into the following groups:

• A1 - the most liquid assets, enterprise cash and short-term financial investments (securities);
• A2 - quickly realizable assets, accounts receivable and other assets;
• A3 - slowly selling assets, inventories and costs;
• A4 - hard-to-sell assets, fixed and other non-current assets.

Balance sheet liabilities are grouped according to the degree of urgency of their payment:

• P1 - the most urgent obligations (accounts payable, as well as loans not repaid on time);
• P2 - short-term liabilities (short-term loans and borrowed funds);
• P3 - long-term liabilities (long-term loans and borrowed funds);
• P4 - permanent liabilities (sources of own funds minus the amount under the item “Future expenses” and the amount of immobilization of working capital under the items of section III of the asset plus lines 630-660 of the balance sheet liability).

Depending on the industry in which the enterprise operates, the liquidity of assets and the maturity of liabilities, the grouping of assets and liabilities is carried out using different methods.
For example, if short-term financial investments can be converted into money no earlier than six months later, then they should be classified as group A3, not A1. If, in accordance with the accounting policy, long-term loans and borrowings include liabilities that must be repaid in less than a year, then they should be classified as group P2 or P1.

New forms of balance (balance after 2011)

Assets. Method 1
Assets. Method 2
Assets. Method 3 code 12605 “Future expenses”.
Assets. Method 4
Liabilities. Method 1
Liabilities. Method 2
Liabilities. Method 3 code 12605 “Future expenses”.
Liabilities. Method 4

Balance until 2011

Method 1

Assets	Calculation	Liabilities	Calculation
A1 The most liquid assets	code 250 + 260	P1 Most urgent obligations	code 620
A2 Quickly realizable assets	code 240	P2 Current liabilities	code 610 + 630 + 660
A3 Slow-selling assets	code 210 + 220 + 230 + 270	P3 Long-term liabilities	code 590+640+650
A4 Hard to sell assets	code 190	P4 Constant liabilities	code 490

Method 2
Method 3

Assets	Calculation	Liabilities	Calculation
The most liquid assets of A1	code 260 + 250	Most urgent obligations P1	code 620 + 630
Quickly realizable assets A2	code 240 + 270	Short-term liabilities P2	code 610 + 650 + 660
Slowly selling assets A3	code 210 + 220 - 216	Long-term liabilities P3	code 590
Hard to sell assets A4	code 190 + 230	Constant liabilities P4	code 490 + 640 - 216

To determine the liquidity of the balance sheet, you should compare the results of the given groups for assets and liabilities. The balance is considered absolutely liquid if the following relationships exist: A1 ≥ P1, A2 ≥ P2, A3 ≥P3, A4 ≤ P4.
In the case when one or more inequalities have a sign opposite to that fixed in the optimal option, the liquidity of the balance sheet differs to a greater or lesser extent from absolute. In this case, the lack of funds in one group of assets is compensated by their surplus in another group, although compensation in this case takes place only in value, since in a real payment situation less liquid assets cannot replace more liquid ones.
Comparison of the most liquid funds and quick-selling assets with the most urgent obligations and short-term liabilities allows you to find out current liquidity. Comparison of slowly selling assets with long-term and medium-term liabilities reflects promising liquidity. Current liquidity indicates the solvency (or insolvency) of the enterprise for the near future. Prospective liquidity is a forecast of solvency based on a comparison of future receipts and payments (of which only a part is represented in the corresponding groups of assets and liabilities, so the forecast is quite approximate).

Introduction

Chapter I. Theoretical aspects of assessing assets and liabilities of an enterprise

1.1 Balance sheet in assessing the financial condition of an enterprise

1.2 Analysis of assets and liabilities of the balance sheet

Chapter II. Methodology for analyzing assets and liabilities of the balance sheet

2.1 Methodical aspects of analyzing the liability balance

2.1.1 Structure, composition of equity capital and liabilities

2.2 Methodology for analyzing an organization’s assets

2.2.1 Non-current and current assets and the efficiency of their use

Chapter III. Analysis of assets and liabilities of the balance sheet of the trading organization Alan LLC for the period 2006-2008

3.1 General analysis of the balance sheet

3.2 Analysis of balance sheet liabilities of Alan LLC

3.3 Analysis of balance sheet assets of Alan LLC

Conclusion

List of used literature

Introduction

In order to survive in a market economy and prevent the bankruptcy of an enterprise, it is necessary, using financial analysis, to promptly identify and eliminate deficiencies in financial activities and find reserves for improving the condition of the enterprise and its solvency.

The effectiveness of financial analysis largely depends on the organization and perfection of its information base.

The balance sheet is one of the ways to summarize, on the one hand, the composition and placement of economic assets, and on the other, the sources of their formation in value terms, as well as determining the most important indicators that reflect the result of the economic activity of the enterprise, its financial position and settlement relationships with partners .

Analysis of the assets and liabilities of the balance sheet is part of the analysis of the property position when considering the financial and economic condition of the enterprise. When analyzing the assets and liabilities of the balance sheet, the structure and dynamics of the state of the enterprise's assets in the analyzed period are traced.

This paper reveals the essence of the balance sheet and its use as a source of information for assessing the financial condition of an enterprise.

The balance sheet plays an important role in assessing the financial condition of an enterprise, since from the balance sheet it is important to understand what the enterprise is at the moment and as a result of which this situation has arisen, which determines the relevance of the topic I have chosen.

The object of the course work is the organization Alan LLC.

The purpose of the course work is to analyze the assets and liabilities of the balance sheet to assess the financial condition of the enterprise using the example of Alan LLC.

Chapter I. Theoretical aspects of assessing assets and liabilities of an enterprise

1.1 Balance sheet in assessing the financial condition of an enterprise

The balance sheet is a rich source of information on the basis of which the financial and economic activities of an economic entity are revealed.

The balance sheet is one of the ways to summarize, on the one hand, the composition and placement of economic assets, and on the other, the sources of their formation in value terms, as well as determining the most important indicators that reflect the result of the economic activity of the enterprise, its financial position and settlement relationships with partners at the beginning and end of the period. At the same time, at the beginning of the period, these data make it possible to judge the starting capabilities of the enterprise for the coming period, and at the end - about the results obtained during the implementation of economic processes, which, in turn, serve as the basis for predicting the nature and characteristics of their development in the subsequent period.

However, the general characteristics of the balance allow us to establish only its role and significance in the activities of the economy. Along with this, there is a need to become more familiar with each section of the balance sheet, which will provide a more in-depth approach to its analysis. In this regard, let us briefly consider the structure of the balance sheet.

In the balance sheet, assets and liabilities are shown only in monetary terms. Each asset and liability element of the balance sheet is called a balance sheet item. Any asset item on the balance sheet allows you to obtain the following characteristics of economic resources: what this part of the assets is embodied in, where it is used, their value. Any liability item on the balance sheet allows you to obtain the following characteristics of the sources of formation of economic resources: from what source this part of the assets was created, for what purpose they are intended, their value. All items of assets and liabilities of the balance sheet, based on their economic homogeneity, are summarized in certain sections of the balance sheet.

The balance sheet asset contains two sections:

I. Non-current assets;

II. Current assets.

The balance sheet liability consists of three sections:

III. Capital and reserves;

IV. Long term duties;

V. Short-term liabilities.

The sections in the assets of the balance sheet are arranged according to increasing liquidity, and in the liabilities - according to the degree of consolidation of sources.

Section I of the balance sheet asset “Non-current assets” presents all long-term assets of an economic entity: intangible assets, fixed assets, long-term financial investments, capital investments. Items in the "Intangible assets" group are valued in the balance sheet at their residual value. The residual value of this group of assets is determined as the difference between the original (replacement) cost and the amount of accrued depreciation. The articles of the "Fixed Assets" group are also evaluated, with the exception of the "Land" article. Depreciation is not accrued for this type of asset. In the balance sheet, all fixed assets and intangible assets are presented in one section, regardless of the field of operation.

The items in the “Financial Investments” group reflect investments of funds and other property in other economic bodies for a period of more than one year; under the item "Capital investments" - actual costs in unfinished construction.

Section II of the balance sheet asset “Current assets” reflects non-current assets in several groups. In the "Inventories" group, current assets of the production sector are presented as separate items. Raw materials and supplies are valued in the balance sheet at the actual procurement cost. Costs in work in progress can be assessed at standard cost, at the amount of direct costs, or at actual production cost. This section also reflects items of circulation: finished products and goods shipped, deferred expenses, which should be assessed at actual cost.

The second group of current assets consists of short-term financial investments in other organizations. The "Cash" group is represented by the articles "Cash", "Cash Accounts", "Currency Accounts", "Other Cash".

This same section of the asset also reflects receivables from both other organizations and individuals, as well as employees of a given business entity.

The balance sheet liability consists of three sections (Table 1.2). Section III of the balance sheet is represented by equity capital, and sections IV and V reflect attracted capital.

In Section III of the balance sheet “Capital and Reserves”, independent items reflect the own sources of property formation - authorized capital, additional capital, reserve capital. The same section shows the retained earnings of the enterprise from previous years and the reporting year. Independent items represent uncovered losses. The articles of Section IV of the balance sheet “Long-term liabilities” characterize debt to banks for loans and borrowings received from other organizations for a period of more than one year.

Section V of the balance sheet “Short-term liabilities” combines several groups of short-term debt: borrowed funds, accounts payable, reserves for future expenses, deferred income.

In the "Borrowed Funds" group, independent items reflect debt to banks for short-term loans and borrowings from other enterprises.

The items in the “Accounts Payable” group reflect debts to suppliers and contractors for inventory items received from them, subsidiaries and affiliates, employees of the organization, the budget, and social funds.

The peculiarity of the current structure is that the least liquid sections and items of the balance sheet come first, and as their level of liquidity increases, they are followed by more liquid sections and items.

Vertical analysis shows the structure of the enterprise's funds and their sources. There are two reasons that determine the need and expediency of such an analysis: on the one hand, the transition to relative indicators allows for inter-farm comparisons of the economic potential and performance of enterprises that differ in the amount of resources used and other volumetric indicators; on the other hand, relative indicators to a certain extent smooth out the negative impact of inflationary processes, which can significantly distort the absolute indicators of financial statements and thereby complicate their comparison in dynamics.

Horizontal reporting analysis consists of constructing one or more analytical tables in which absolute indicators are supplemented by relative growth (decrease) rates. As a rule, basic growth rates for adjacent periods (years) are taken, which makes it possible to analyze not only changes in individual indicators, but also to predict their values. The value of the results of horizontal analysis is significantly reduced in conditions of inflation. However, these data can be used for inter-farm comparisons.

Horizontal and vertical analyzes mutually complement each other, together they characterize both the structure and dynamics of individual indicators of the reporting accounting form, and make it possible to compare the statements of enterprises that are completely different in the type of activity and production volumes.

1.2 Analysis of assets and liabilities of the balance sheet

Analysis of the assets and liabilities of the balance sheet is part of the analysis of the property position when considering the financial and economic condition of the enterprise. When analyzing the assets and liabilities of the balance sheet, the dynamics of their condition in the analyzed period is traced. Analysis of the structure and changes in balance sheet items shows:

what is the value of current and permanent assets, how their ratio changes, and how they are financed;

which items are growing at a faster pace, and how this affects the structure of the balance sheet;

what proportion of assets are inventories and accounts receivable;

how large is the share of equity capital, and to what extent the company depends on borrowed resources;

what is the distribution of borrowed funds by maturity;

what share of liabilities is debt to the budget, banks and labor collective.

During the analysis, to characterize various aspects of the financial condition, they use: absolute indicators, and financial ratios, which are relative indicators financial condition. It should be borne in mind that in conditions of inflation, the value of analysis based on absolute indicators is significantly reduced, and in order to neutralize this factor, an analysis is carried out based on relative indicators of the balance sheet structure. The latter are calculated in the form of ratios of absolute indicators of financial condition or their linear combinations.

In addition to analyzing absolute and relative indicators, in this work I will also use other methods of economic analysis. The practice of economic analysis has developed the following rules for reading financial statements:

Horizontal analysis (time) - comparison of each reporting item with the previous period.

Vertical analysis (structural) - determining the structure of the final financial indicators, identifying the impact of each reporting item on the result as a whole.

Trend analysis- comparison of each reporting item with a number of previous periods and determination of the trend, i.e. the main trend of the indicator dynamics.

Chapter II. Methodology for analyzing assets and liabilities of the balance sheet

2.1 Methodical aspects of analyzing the liability balance

The information provided in the liabilities side of the balance sheet makes it possible to determine what changes have occurred in the structure of equity and borrowed capital, how much long-term and short-term borrowed funds have been attracted into circulation by the enterprise, i.e. the liability shows where the funds came from and to whom the enterprise is obliged for them.

The financial condition of an enterprise largely depends on what funds it has at its disposal and where they are invested. According to the degree of ownership, the capital used is divided into own (I section of liability) and borrowed (II and III sections of liability).

The amount of equity capital is of particular importance for organizations when analyzing their financial condition, which characterizes financial independence and economic independence. The presence of an organization's own capital, the value of which has a steady upward trend, means additional guarantees in market conditions for potential creditors, investors, lenders and shareholders. For organizations themselves, equity capital is the main source of carrying out statutory activities, covering possible losses, creating new types of property and expanding the scope of activities.

Objectives of analyzing the state and structure of an organization’s equity capital:

analysis of the dynamics of equity capital;

analysis of the structure of equity capital; analysis of the use of equity capital;

identifying promising opportunities for increasing equity capital.

The equity capital of trade organizations structurally consists of such sources as authorized capital, reserve capital, retained earnings of previous years and the reporting year. The equity capital of trading organizations should also include the amount of depreciation charges on non-current assets that are accumulated by the organization for the purpose of reconstruction, modernization, replacement or acquisition of new non-current assets.

The balance sheet of a trade organization that has the legal form of a joint stock company (closed or open) reflects the amount of the authorized capital in accordance with the constituent documents, which is equal to the par value of the shares acquired by shareholders. Trade organizations created in the form of limited liability companies reflect in the balance sheet the amount of share capital as the totality of contributions of company participants, which is indicated in the constituent documents.

The next component of the organization's own capital is additional capital. Additional capital in trade organizations can be formed as a result of revaluation of fixed assets in the direction of increasing their value, i.e. revaluation.

Trade organizations can also form reserve capital through deductions from net profit. Amounts of reserve capital are formed in two directions: contributions to reserves that are created under current legislation, for example, in joint-stock companies, and contributions to reserves provided for by the organization itself in the constituent documents.

2.1.1 Structure, composition of equity capital and liabilities

The main source of an organization's equity capital is retained earnings. Retained earnings of previous years represent the amount of profit of the organization that remained at its disposal based on the results of work for the previous reporting year, taking into account contributions to funds - accruals, consumption, corporatization, etc. Retained earnings of the reporting year is the difference between the financial result for the reporting year period and the amount of taxes and other obligatory payments due from profits.

Having designated the components of equity capital with symbols (Ku - authorized capital, Kd - additional capital, Kr - reserve capital, NPpr. l. - retained earnings of previous years, NPo. g. - retained earnings of the reporting year), we obtain the value of equity (Kc) , which can be determined by the formula:

Ks = Ku + Kd + Kr + NPpr. l. + NPO. G.

The generally accepted balance generalization formula is as follows:

where A is a balance sheet asset;

K - capital of the organization;

O - obligations of the organization.

Having analyzed the equity capital of a trading organization, you can move on to analyzing the second component of the balance sheet equation - the organization’s liabilities. An organization's liabilities are, in a broad sense, borrowed funds, which can be divided according to their maturity dates into short-term (up to 1 year) and long-term (over 1 year). Within short-term and long-term borrowed funds, such types of borrowings as bank loans and loans should be separated for analysis.

The obligations of the organization should also include raised funds, i.e. accounts payable, the payment terms of which have not arrived. Within the total amount of accounts payable, for the purposes of analysis, it is necessary to highlight: debt to suppliers and contractors, bills of exchange issued (payable), advances received, debt to the founders for payment of income, debt to subsidiaries and dependent companies.

A special group among the funds raised are the so-called sustainable liabilities, the analysis of which is carried out in the following areas: debt to the organization’s personnel for wages, debt to the budget and social insurance and security authorities.

The objectives of analyzing the composition and structure of a trade organization's obligations are: analysis of the dynamics of the amount of borrowed and raised funds; analysis of the structure of borrowed and raised funds; analysis of the efficiency of using borrowed and raised funds.

The sources of formation of the organization's assets are both borrowed funds and equity capital. It is necessary to trace how the increase in borrowed and borrowed funds occurred during the analyzed period, what is the main type of raised funds, the general trend of growth or decline in borrowed funds, the general change in the sources of own and borrowed funds.

To analyze the main directions of spending equity capital, as well as attracted and borrowed funds, it is necessary to consider how the dynamics and structure of the organization’s current and non-current assets have changed over the analyzed period according to the balance sheet.

To find out whether the organization has enough of its own current assets to cover current short-term liabilities, the current liquidity ratio should be calculated using the formula:

Kt. l. = Total of section II of the assets of the balance sheet / Total of section V of the liabilities of the balance sheet.

An enterprise will be declared insolvent if, when analyzing the structure of the enterprise’s balance sheet, one of the following conditions is met: K1< 2. Если коэффициент текущей ликвидности у торговой организации ниже нормативного значения коэффициента ликвидности, то, следовательно, у торговой организации недостаточно ликвидных активов для погашения текущих краткосрочных обязательств. Следовательно, администрация торговой организации должна будет придерживаться политики дальнейшего наращивания оборотных активов при снижении темпов роста кредиторской задолженности.

2.2 Methodology for analyzing an organization’s assets

The balance sheet asset contains information about the allocation of capital available to the enterprise, i.e. about its investment in specific property and material assets, about the enterprise’s expenses for the production and sale of products and about cash balances.

The main feature of the grouping of balance sheet asset items is the degree of their liquidity (the speed of conversion into cash). On this basis, all balance sheet assets are divided into long-term or fixed capital (Section I) and current (current) assets (Section II).

To carry out economic and financial activities, organizations must have certain types of fixed (non-current) and working capital that ensure uninterrupted processes of production and sales of products. The size and composition of these funds depend on the nature, volume and content of the economic activities of a particular organization.

The sources of formation of non-current and current assets are own and borrowed capital. The composition and structure of assets depend on the size and structure of capital. Consequently, the analysis of an organization’s assets is directly related to the analysis of: the sources of their formation and liquidity, i.e. the ability to quickly release funds from economic circulation necessary for normal economic and financial activities, and the ability to fulfill their current and long-term obligations in a timely manner.

The size of assets (property) and their structure are constantly changing, as they are dynamic in nature.

There are different approaches to classifying an organization's assets. Thus, assets can be considered both from the point of view of their material composition and cost-effectiveness.

With the objective-material interpretation of a balance sheet asset, the composition, placement and use of the organization’s funds are studied, and with the cost-effective interpretation, the amount of costs incurred as a result of the organization’s previous business operations.

When analyzing the structure and dynamics of assets, economic assets (property, assets) can be divided: depending on the field of activity; the speed of turnover they make; into non-financial and financial, etc.

Depending on the field of activity, they are divided into: means in the sphere of production (means of labor, intangible assets, long-term investments, objects of labor); funds in the sphere of circulation (finished products, goods, cash, funds in settlements, funds serving circulation), funds in the non-productive sphere.

Depending on the speed of turnover, the organization’s assets are divided into: non-current, the turnover rate of which exceeds one year (fixed assets, intangible assets, long-term investments, long-term financial investments, etc.), and current assets, the turnover rate of which is less than a year (material and monetary).

In addition, assets in the analysis can be distinguished by the degree of liquidity into non-financial (fixed assets, long-term investments, intangible assets, inventories, costs in work in progress, etc.) and financial (cash, funds in settlements, investments in securities ). In the process of analysis, it is necessary to identify the structure of the balance sheet asset by determining the share of current and non-current assets in the total balance sheet currency over time; deviations and changes in the allocation of funds.

Analysis of asset liquidity reflects the cash position of the organization and determines its ability to manage working capital, i.e. at the right time, quickly convert assets into cash in order to pay off short-term current obligations. Therefore, the organization’s funds should be grouped by the degree of liquidity and compared with the sources of formation of these funds, combined by their maturity dates. Such a division into an equal number of detailed groups of assets and liabilities (liabilities) will allow, by comparing them, to determine to what extent the liabilities will be repaid by assets and within what time frame.

The difference between current assets and current liabilities is the amount of own working capital, or net working capital (net assets). This amount is also determined as the difference between the third section of the balance sheet (capital and reserves) and its first section (non-current assets). It must always be greater than zero, because the quotient of current assets divided by short-term liabilities must always exceed one. When analyzing assets, it is necessary to differentiate them according to the degree of liquidity, and liabilities - according to the priority of satisfaction of claims (urgency of payments) for them into eleven groups as follows:

Table 1. Structure of assets and liabilities

1. Cash 2. Investments in short-term securities and cash 3. Advances issued 4. Deferred expenses 5. Funds in settlements (accounts receivable), payments for which are expected within 12 months 6. Funds in settlements (accounts receivable), payments for which are expected more than 12 months after the reporting date 7. Goods and finished products 8. Inventories and costs 9. Other current assets 10. Fixed assets, intangible assets, long-term investments 11. Other non-current assets

1. Arrears of wages and writs of execution 2. Payments to the budget and extra-budgetary funds 3. Advances received 4. Deferred income 5. Accounts payable due within 12 months 6. Accounts payable due more than 12 months after the reporting date 7. Obligations: to suppliers, for loans and borrowings 8. Obligations: to suppliers, for loans and borrowings 9. Other short-term liabilities 10. Own capital and long-term liabilities 11. Own capital and long-term liabilities

Non-current assets in the balance sheet are shown in net valuation. Thus, fixed assets and intangible assets are reflected at their residual value, and all other non-current assets - at actual cost. This assessment does not provide an idea of ​​the amount of cash that can be obtained by selling non-current assets in the event of a sale or liquidation of the organization.

The amount of non-current assets may change as a result of receipts through construction and acquisition, gratuitous accession, contribution to the authorized capital, disposal as a result of liquidation, etc. Thus, in the analysis process, indicators of both initial and residual value, or the actual cost of non-current assets are used; moment and interval quantities; cost and natural indicators. When analyzing non-current assets, it is necessary to assess the structure, dynamics and efficiency of their use (according to the balance sheet data).

To analyze the depreciation rate of fixed assets (Kizn), it is necessary to compare the amount of accrued depreciation (ACD) with the original cost of fixed assets (OCper) using the formula:

Kizn = PPE / OSper.

The renewal coefficient is calculated as the ratio of the cost of received fixed assets (OSP) to the original cost of fixed assets at the end of the year (OSKper):

Kobn = OSB / OSKper.

The retirement rate of fixed assets (Kvyb) can be determined by calculating the ratio of the value of retired fixed assets (OSV) to the original cost of fixed assets at the beginning of the period (OSNper) using the formula:

Kvyb = OSV / OSNper

The liquidation ratio of fixed assets (Click) is calculated using the formula:

Click = OSL / OSNper,

where OSL is the amount of liquidated fixed assets for the period.

The analysis of the suitability of fixed assets is carried out by calculating the suitability coefficient (Kgodn) as the difference between the unit and the depreciation coefficient (Kizn):

Kgodn = OSost / OSper

The efficiency of using fixed assets in trade is characterized by a system of indicators, the main of which are: capital productivity for wholesale and retail trade turnover; ratio of total and retail space; retail turnover per unit of retail space (workplace); release of goods from the warehouse per unit of warehouse space; turnover per unit of warehouse space (or storage capacity), etc.

The capital productivity indicator is found by dividing retail or wholesale turnover by the average cost of fixed assets used. In this way, it is determined how many rubles of turnover (goods sold) correspond to each ruble of fixed assets.

Fo = turnover (sales volume) / average initial (replacement) cost of fixed assets.

An important indicator of the efficiency of using fixed assets is the inverse indicator of capital productivity - capital intensity (Fe), which is determined by the ratio of the average cost of fixed assets (OSper) to the volume of turnover (Nr).

A change in capital intensity shows an increase or decrease in the value of fixed assets by 1 ruble. trade turnover. The capital-labor ratio (FV) is found by dividing the average annual value of the active part of fixed assets by the average number of trade and operational employees.

In addition to the indicator under consideration, the capitalization indicator (Fos) is also calculated, defined as the ratio of the average annual cost of all fixed assets (OSper) to the average number of all sales employees (H):

Phos = OSper/H

2.2.1 Non-current and current assets and the efficiency of their use

Current assets represent the most mobile part of an organization's property, since they make a full turnover or several turns per year. The condition and efficiency of their use is one of the main conditions for its successful operation. The rhythm, coherence and high performance of an organization largely depend on its availability of working capital. A lack of funds advanced for the purchase of current assets can lead to a reduction in production and failure to fulfill the production program. Excessive diversion of funds in them, exceeding the actual need, leads to the deadening of resources and their ineffective use.

An important indicator when analyzing tangible assets is their turnover, which is expressed by the duration of the turnover in days and the number of turnovers during the reporting period. The most common is the turnover rate in days. It is defined as the quotient of dividing the average value of tangible assets (MA) by the average annual turnover of sales of goods (SO) according to the formula:

OMA = MA / SO = MA*D / Nр,

where OMA is the turnover of tangible assets, days; MA - average inventories of tangible assets, rub.; SO - the amount of one-day trade turnover; D - days of the period; Nр - sales volume (turnover).

To calculate the turnover rate of tangible assets (h), the formula is used:

The turnover of tangible assets can be calculated using the formula:

The ratio of sales volume to inventories characterizes the degree to which a given level of sales is maintained by the volume of inventories. A low turnover level indicates the creation of excessive inventories or inventories that are slow to sell, obsolete, as well as a reduction in sales volume.

In the process of carrying out economic and financial transactions for the sale of products, goods, other assets, works and services, accounts receivable arise. Analysis of accounts receivable is carried out by determining its share in current assets. Then the dynamics of changes in its amount over the year are studied: the balances at the end are compared with the amount at the beginning; its condition is assessed - its occurrence and repayment for the year according to balance sheet items and types of debtors.

When analyzing accounts receivable (RA), you should compare its amount with the size of accounts payable (AC), determining the debt ratio ratio (Kd):

Kd = DZ/KZ

The amount of receivables directly depends on sales volume, which is reflected by the ratio of sales volume (Nр) and the average amount of receivables (AR), calculated by the formula:

ODZr = Nr / DZ,

where ODZr is the turnover of receivables, expressed by the number of revolutions.

However, the most convenient expression of turnover is the duration of turnover in days (DT):

ODZd = DZ/SO = DZ*D/Nр

Low accounts receivable turnover may be due to the provision of trade credit, the issuance of long-term bills of exchange, the inability of customers to pay bills, or poor performance in collecting accounts receivable. Subject to settlement and contractual discipline, trading organizations should not have large accounts receivable, as this leads to a diversion of working capital, a delay in their turnover, which ultimately leads to the formation of a need for additional sources of funds and worsens the financial condition of the organization. At the same time, the production cycle of the organization increases. The duration of the operating production cycle period is calculated by summing the turnover period of tangible assets and the turnover period of receivables. The larger the accounts receivable, the less cash the organization has.

The amount of cash in the organization at the moment is rather an insurance reserve in case of imbalance in cash flows as a result of differences in sales and purchase volumes, as well as other unforeseen expenses. However, their excessive presence and lack of them are not positive aspects in the work of the organization. This is explained by the fact that cash by itself, without using it in business activities, does not generate income, and its lack can lead to insolvency.

The cash adequacy ratio (CrAD) is determined by the formula:

Kdds = DS + DZ / EDR,

where DS is the amount of funds;

DZ - accounts receivable (funds in settlements);

EDR - the amount of daily cash expenses.

Of particular importance for the stable operation of an organization is the speed of cash flow, which is determined by the duration of their turnover (CD) according to the formula:

Sod = DS*D / O,

where D - days of the period, O - cash turnover.

Current assets of organizations can be provided at the expense of their own and borrowed (raised) funds. Therefore, during the analysis, it is necessary to determine the size of own working capital (SOC) or net current assets. It is determined by two methods:

1. current liabilities (liabilities) are subtracted from current (current) assets;

2. Non-current assets are subtracted from equity capital.

To establish the feasibility of using own working capital (net current assets - NOA), the following are calculated: agility coefficient (Km), autonomy coefficient (Ka), coefficients of participation of own working capital in inventories (Kz) and in sales volume (Kp):

Km = ORA/TA; Ka = NOA/A; Kz = NOA/MZ; Kp = CHOA/Nр,

where TA - current (current) assets;

A - assets;

MH - inventories;

Nр - sales volume.

When calculating asset turnover ratios, one must keep in mind that the organization must develop their optimal values ​​in order to cover the need for these assets.

Chapter III. Analysis of assets and liabilities of the balance sheet of the trading organization Alan LLC for the period 2006-2008

3.1 General analysis of the balance sheet

The stability of the financial position of an enterprise largely depends on the feasibility and correctness of investing financial resources in assets. During the operation of the enterprise, both the size of assets and their structure undergo constant changes. The most general idea of ​​the qualitative changes that have taken place in the structure of funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting.

Analysis of Table 1 “Vertical analysis of the consolidated balance sheet of Alan LLC as of December 31, 2008, thousand rubles.”

In the process of analyzing the vertical balance sheet of Alan LLC, the following conclusions can be drawn:

During the period under review, there were currency changes in a positive direction in 2006. For 1781 thousand rubles. and in 2008 by 5615 thousand rubles, which indicates an increase in the property potential of the enterprise;

the balance sheet asset structure consists mainly of tangible current assets (for 2006 - 58.63%, for 2007 - 51.49% and for 2008 - 58.63% of the total balance sheet currency) and cash (in 2006 - 17.32%, in 2007 - 23.80% and in 2008 - 17.32%, respectively);

a high share in the liabilities of the balance sheet is occupied by equity capital (for 2006 - 37.66%, for 2007 - 51.49% and for 2008 - 43.42% of the total balance sheet currency) and short-term liabilities (55.17%, 47, 20%, 55.18% respectively);

a significant imbalance in the structure of the company's assets and liabilities poses a danger to the financial position of the organization. So, in assets, an excessively large share is occupied by inventories, and in liabilities - accounts payable, which negatively affects the liquidity and financial stability of the organization. This conclusion is also supported by a negative upward trend in these indicators during the reporting period: inventories increased by 4,068 thousand rubles, or 72.45% of the total increase in the balance sheet asset currency, accounts payable increased by 3,965 thousand rubles, which amounted to 70. 61% of total growth in foreign currency liabilities of the balance sheet.

a significant increase in the share of working capital in property at the end of 2008, amounting to 4,436 thousand rubles. may indicate the formation of a more mobile asset structure, contributing to the acceleration of the turnover of the organization’s funds;

the share of long-term debts of the organization in 2006 increased by 110 thousand rubles, in 2007 there was a significant decrease by 734 thousand rubles compared to 2006, but by the end of 208 there was an increase, albeit insignificant, by 88 thousand. R. (or 1.57% in relation to the total amount of changes)

Table 2. Horizontal analysis of the consolidated balance sheet for the period 2006 - 2008.

Identifier	At the end of 2006 (base period)		At the end of 2007		At the end of 2008
Assets
Passive

Horizontal analysis in our case means a comparison of balance sheet items at the end of several reporting periods; This comparison allows us to determine the general direction of movement of the balance.

The presented analysis shows an increase in the balance sheet in the last reporting period, which can be assessed as a positive indicator.

The gradual and stable increase in the asset balance of cash (in 1 year by 22.28%, and in the subsequent year - 10.41%) and non-current assets (4.76% and 28.41%, respectively) also deserves a positive assessment, and in balance sheet liability - an increase in the total of the first section (at the end of 2006 - 4595 thousand rubles, 2007 - 5592 thousand rubles, 2008 - 127.93 thousand rubles). It should also be noted that the organization's reserve capital increased - at the end of 2008 it amounted to 2,341 thousand rubles.

However, trouble in the company’s finances is indicated by a sharp change in the “Short-term liabilities” section of the balance sheet, i.e. the organization's debts, aging accounts payable (in the last year the growth was 177.35%). This means that either the company is pursuing an unreasonable policy of distributing finances for its payments, or is delaying deliveries. An alarming factor is the increase in the “Inventories” item (in the last year the increase was 172.75%). A change in this article means overstocking, unfavorable concentration of goods in warehouses, a drop in sales, etc. To eliminate the negative aspects of the organization's analysis, it is recommended to establish the optimal level of inventory, eliminate overstocking and shortages of goods, help accelerate the turnover of inventory using an automated management system, and reduce working capital and reduce the need for credit resources. Increasing the accuracy of forecasts will qualitatively improve the process of preparing and making decisions, which will help reduce the labor intensity of data processing and use, as well as reduce costs for illiquid goods, increasing daily revenue in the long term.

3.2 Analysis of balance sheet liabilities of Alan LLC

Table 3. Analysis of the composition and structure of equity capital for the period 2006-2008.

During the analyzed period, the equity capital of Alan LLC increased by a total of 2,559 thousand rubles, which is a positive trend. Own capital amounted to 43.42% in balance sheet currency at the end of 2008 versus 37.65% at the end of 2006.

There have been certain changes in the structure of equity capital. Thus, the authorized capital increased in 2007 by 1,248 thousand rubles. Additional capital was formed in full and did not increase over the entire period under review, reserve capital decreased and increased during the period, and at the end of 2008 its amount amounted to 14.21% of the balance sheet currency.

Table 4. Analysis of the dynamics of borrowed funds for the period 2006-2008

Name of sources of borrowed funds	at the end of 2006 (basic)		at the end of 2007		at the end of 2008		Change
		% to balance currency		% to balance currency		% to balance currency		% to base
Long-term loans and borrowings Short-term loans and credits

Long-term loans account for an insignificant share in the balance sheet currency - 7.18% at the end of 2006, 1.31% at the end of 2007 and 1.40% at the end of 2008. Repayment of long-term loans is stable; in 2007 the organization took out a loan. At the end of 2006, the amount of outstanding loans was equal to 876 thousand rubles, while at the end of 2007 it decreased to 142 thousand rubles. In general, during the analyzed period, the amount of loans and borrowings for the organization as a whole decreased by 73.74%. As follows from the table, the trading organization Alan LLC did not resort to short-term borrowing in the form of credits and loans for a period of less than 1 year. Stable repayment of long-term loans, their small share in the balance sheet currency against the backdrop of an increase in the organization's own capital and in the absence of short-term loans and credits generally reflects a positive trend in the activities of the trading organization Alan LLC.

Analysis of Table 5 “Analysis of the structure of raised funds of Alan LLC for the period 2006-2008.” (see appendix) In 2008, the volume of raised funds acquired a growth trend and amounted to 177.35%, despite the decline in 2007, which amounted to 76 .13% in 2006. The growth rate was 142.1%.

The main type of funds raised for the trade organization Alan LLC is debt to suppliers for goods, which is one of the characteristic features of the financial and economic activities of trade organizations that purchase goods from suppliers for resale. The share of debt to suppliers and contractors is the highest - at the beginning of 2006. - 96.7%, at the end of 2006. - 98.16%, at the end of 2007. - 94.77% and at the end of 2008 - 98.03% of the total debt. In general, the debt is of high quality, but the extremely high growth rate of debt to suppliers at the end of 2008, it amounted to 83.45% for the year, indicates the organization’s failure to comply with contractual discipline and untimely settlements with suppliers.

The growth rate of debt to the organization's personnel in the period from 2006-2008. indicates positive dynamics in the organization of remuneration. In 2006 The growth rate of wages owed to personnel was 104.16%, in 2007 - 84%, in 2008. - 61.90%. In addition, by the end of the year there was practically no social insurance debt left; the growth rate for this type was 16.67%. Debt to the budget at the end of 2006 amounted to 4 thousand rubles, 2007 - 10 thousand rubles, 2008 - 21 thousand rubles, growth rates respectively - 50%, 250%, 210%. However, the deadline for paying debts to the budget in 2008. have not yet arrived, therefore, this type of debt can be defined as high-quality. At the end of the analyzed period, debt to other creditors decreased significantly - a growth rate of 63.56%, which is associated with the fulfillment of mutual obligations under additional agreements with various creditors for the rental of equipment and with transport organizations.

Analysis of Table 6 “Analysis of the composition and dynamics of equity capital and liabilities of Alan LLC for the period 2006-2008.” (see appendix)

Characterizing the ratio of the organization's own and borrowed funds, we can draw the following conclusions.

The predominant part of the balance sheet liability, reflecting the organization’s sources of funds, consists of own and borrowed funds, the share of which in the balance sheet currency exceeds 98%.

Based on the above data, you can determine the coefficient of autonomy, or independence, of organizations from external creditors:

To autonomy = Amount of equity / Balance sheet currency

Kavt. 2006 =4595/12204=0.38 or 38%

Kavt. 2007 =5592/10860=0.51 or 51%

Kavt. 2008 =7154/16475=0.43 or 43%

In this case, the standard value of the coefficient should not be lower than 0.6. As we see, with the current increase in the growth rate of raised funds, the organization has no other way to strengthen financial independence than to increase its own capital. The authorized capital can be increased by attracting additional funds from the founders. But the main conditions, subject to which the amount of the organization’s equity capital will grow, are: the stable financial condition of the organization, the formation of the final financial result in the form of profit for the reporting year and maintaining the growth rate of this indicator.

3.3 Analysis of balance sheet assets of Alan LLC

Analysis of Table 7 “ Analysis of the dynamics and structure of current assets of Alan LLC for the period from 2006-2008.” (see application)

From the data presented it is clear that during the analyzed period from 2006-2008. g. current assets changed positively in 2006. For 1101 thousand rubles. Or 12.18% in 2007. Decreased by 887 thousand rubles, those. e 8.74% and by the end of 2008, the current assets of the enterprise increased by 4436 thousand rubles, or 47.94%, but the structure of the balance sheet did not change much: both at the beginning and at the end of the analyzed period, the share of commodity goods was invariably high enterprise reserves (70.44; 60.28; 70.40, respectively).

As follows from the above data, as part of current assets, the organization's reserves grew at the fastest pace in 2008. The total volume of inventories at the end of the year amounted to 9,637 thousand rubles, from which it follows that the increase in inventory of the trading organization for the year amounted to over 4,000 thousand rubles. Under such circumstances, it can be argued that with such a share of growth, the share of hard-to-sell assets has increased, and with a loss in sales volumes of goods (works, services), such an injection of funds will lead to the destruction of funds. A significant bias in the structure of assets towards inventories negatively affects the liquidity and financial stability of the organization; for the trading organization Alan LLC this means overstocking, unfavorable concentration of goods in warehouses, a drop in sales, etc.

The amount of cash in the organization's cash desk and banks increased in 2006 by 12.18% (430 thousand rubles), in 2007 by 22.28% (471 thousand rubles) and by 2008 by 10.41%, or by 269 ​​thousand rubles. Based on previously obtained data - in view of the fact that cash takes up about 20% of the balance sheet asset currency, it can be argued that this is a positive factor, the amount of cash in the organization at the end of the analyzed period, in view of the increased accounts payable, is, most likely, a safety stock in case of cash flow imbalances as a result of differences in sales and purchase volumes, as well as other unforeseen expenses.

The growth rates of receivables and payables do not provide a complete analytical picture. Therefore, to find out whether the organization has enough of its own current assets to cover current short-term liabilities, let’s calculate the current liquidity ratio:

End of 2006:

Kt. l. = Total of section II of the assets of the balance sheet / Total of section V of the liabilities of the balance sheet = 10140/6733 = 1.5

End of 2007:

Kt. l. = Total of section II of the assets of the balance sheet / Total of section V of the liabilities of the balance sheet = 9253/5126 = 1.81

End of 2008:

Kt. l. = Total of section II of the assets of the balance sheet / Total of section V of the liabilities of the balance sheet = 13689/9091 = 1.51.

If we take into account that the standard value of the liquidity ratio with a satisfactory balance sheet structure should be equal to 2.0, then Alan LLC does not have enough liquid assets to pay off current short-term liabilities. Consequently, the administration of a trade organization must adhere to a policy of increasing current assets while reducing the growth of accounts payable.

Financial stability can be increased by:

accelerating the turnover of capital in current assets, which will result in its relative reduction per ruble of turnover;

justified reduction of inventories and costs (to the standard);

replenishment of own working capital from internal and external sources.

An important indicator when analyzing tangible assets is their turnover, which is expressed by the duration of the turnover in days and the number of turnovers during the reporting period.

The most common is the turnover rate in days. It is defined as the quotient of the average value of tangible assets divided by the average annual turnover of sales of goods:

OMA = 11471*360/13750 = 300.33.

The turnover rate of tangible assets = 13750/11471 = 1.20.

To accelerate the turnover of tangible assets of an organization, it is necessary to promote the improvement of their transportation processes, reduce inventories, increase sales volumes, and improve the organization of business activities.

When analyzing accounts receivable, you should compare its amount with the amount of accounts payable, determining the debt ratio:

for the beginning of the year:

Kd = 1076/5126 = 0.21

at the end of the year:

Kd = 1175/9091 = 0.13.

The amount of receivables directly depends on sales volume, which reflects the ratio of sales volume and the average amount of receivables - receivables turnover:

ODZr = 13750/1125.50 = 12.22 times.

However, the most convenient expression of turnover is the duration of turnover in days:

ODZd = 1125.50*360/13750 = 29.47 days.

Thus, the organization should not have large accounts receivable, as this leads to the diversion of working capital, to a delay in their turnover, which ultimately leads to the need for additional sources of funds and worsens the financial condition of the organization.

The amount of cash currently in the organization is most likely an insurance reserve in case of cash flow imbalances as a result of differences in sales and purchase volumes, as well as other unforeseen expenses. However, both their excessive presence and their deficiency are not positive aspects in the work of the organization. This is explained by the fact that cash by itself, without using it in business activities, does not generate income, and its lack can lead to insolvency.

Analysis of Table 8 “Analysis of the dynamics and structure of non-current assets of Alan LLC for the period 2006-2008.”

As can be seen from the table, the increase in non-current assets occurred mainly through an increase in fixed assets. So the increase in the cost of the OS in 2006. Amounted to 674 thousand rubles in 2007. There was a decline in the cost of operating systems by 461 thousand rubles, but by the end of 2008. The increase in fixed assets amounted to 1154 thousand rubles. or 79.97% by the beginning of the year. .

Thus, during the analyzed period in Alan LLC, equity capital and raised funds equally play a decisive role in the composition of the sources of funds, we can conclude that the main component of the sources of funds are precisely these balance sheet items.

The distribution of funds is not yet effective. The organization allocated the bulk of the funds to increase current assets, which is caused by the specifics of trading activities. But even under such conditions, the current liquidity ratio for 2008. amounted to 1.51, which is below the standard; therefore, the trading organization cannot yet cover the large inert mass of attracted funds with liquid assets.

Table. Movement and availability of fixed assets of Alan LLC.

Let's determine the depreciation rate of fixed assets:

for the beginning of the year:

Kizn = 471/1990 = 0.24

at the end of the year:

Kizn = 946/3661 = 0.26.

So the update percentage

OS - 31.52% (Kobn = 1154.0/3661).

Analysis of the suitability of fixed assets is carried out by calculating the suitability coefficient:

for the beginning of the year:

Kgodn = 1519/1990 = 0.76.

at the end of the year:

Kgodn = 2673/3661 = 0.73.

To determine the efficiency of using fixed assets, we calculate the following indicators:

return on assets:

Fo = 13750/2825.5 = 4.87.

capital intensity:

Fe = 2825.5/13750 = 0.21 (reporting year);

Fe = 1990/10120 = 0.20 (previous year).

impact on the average amount of fixed assets turnover:

(13750-10120) * 0,21 = 762,3

impact on the average amount of fixed assets capital intensity:

(0,21-0, 20) *13750 = 137,50.

capital-labor ratio:

Fv = 2825.5/8 = 353.19.

capital equipment:

Phos = 2825.5/12 = 235.46.

Thus, in the trading organization Alan LLC, for every ruble of fixed assets there are 4.87 rubles of turnover. A change in capital intensity shows an increase in the cost of fixed assets per ruble of turnover. The capital ratio indicator is quite high, as is the capital ratio indicator, defined as the ratio of the average annual cost of all fixed assets to the average number of all sales employees.

All of the above allows us to conclude that the financial condition of the analyzed organization is quite stable and stable.

At the same time, as the results of the analysis show, the organization still has sufficient reserves to significantly improve its financial condition. To do this, he should more fully use the production capacity of the organization, reducing downtime of machines, equipment, labor, material and financial resources; respond more quickly to market conditions, changing the product range and pricing policy in accordance with its requirements. All this will allow you to increase profits, replenish your own working capital and achieve a more optimal financial structure of the balance sheet.

Conclusion

The materials studied in the process of preparing the course work allow us to conclude that at this stage the balance sheet is the main information source for analyzing the financial and economic activities of the enterprise.

Theoretical materials from various authors, the regulatory framework, textbooks in the field of accounting and financial analysis, and financial reporting material were used as the initial information base.

In this work, the theoretical issues of analyzing the assets and liabilities of the balance sheet of an enterprise were described, and on the basis of the presented theoretical material, this analysis of the financial and economic activities of the enterprise was carried out in practice.

As a result of the work done, the following conclusions and suggestions can be made:

1. In the process of analyzing the trading organization Alan LLC, a positive trend can be traced, expressed in an increase in property potential. A particular danger to the financial position of the organization is a significant imbalance in the structure of the company's assets and liabilities. So, in assets, an excessively large share is occupied by inventories, and in liabilities - accounts payable, which negatively affects the liquidity and financial stability of the organization.

2. To eliminate the negative results of the analysis of the organization, it is recommended to establish the optimal level of inventory, eliminate overstocking and shortages of goods, help accelerate the turnover of inventory using an automated management system, and reduce working capital and reduce the need for credit resources. Increasing the accuracy of forecasts will qualitatively improve the process of preparing and making decisions, which will help reduce the labor intensity of data processing and use, as well as reduce costs for illiquid goods, increasing daily revenue in the long term.

3. Own capital plays one of the decisive roles in the composition of sources of funds, the autonomy coefficient is equal to forty-three percent, which, of course, slightly falls short of the standard, but on the basis of it it can be stated.

4. The trading organization Alan LLC did not resort to short-term borrowing in the form of credits and loans for a period of less than 1 year. Long-term loans account for an insignificant share in the balance sheet currency - 7.18% at the end of 2006, 1.31% at the end of 2007 and 1.40% at the end of 2008. Receipt and repayment of loans proceeded steadily.

5. The main types of accounts payable for the trade organization Alan LLC are debt to suppliers and contractors, the proportion of which, according to 2008 data, is the highest - at the beginning of the year 94.77%, at the end of the year - 98.03% of the total debt .

6. The predominant part of the balance sheet liability, reflecting the organization’s sources of funds, consists of own and borrowed funds, the share of which in the balance sheet currency exceeds 98%. This indicates the dependence of the enterprise on external investors, but at the same time a fairly high part of the enterprise’s equity capital, which is a source of covering current assets, and this is a positive indicator.

7. The increase in non-current assets of a trading organization followed the line of increasing fixed assets. Thus, the increase in the cost of fixed assets during the year amounted to 1,154 thousand rubles, or 75.97% compared to the beginning of the year.

The distribution of funds is not yet effective. The organization allocated the bulk of the funds to increase current assets, which is caused by the specifics of trading activities. But even under such conditions, the current liquidity ratio was 1.51, which is below the standard; therefore, the trading organization is not yet able to cover the large inert mass of borrowed funds with liquid assets.

8. Given the current growth rates of short-term borrowings and the increasing growth rates of raised funds, the organization has no other way to strengthen financial independence than to increase its own capital. The authorized capital can be increased by attracting additional funds from the founders, which will increase the autonomy ratio.

9. In order to improve the financial condition, in particular to increase the financial stability of the trading organization Alan LLC, it is necessary to increase the turnover of material working capital, thereby eliminating the imbalance in assets and liabilities.

10. Direction to prevent or eliminate phenomena unfavorable for business by using the full potential of modern management, developing and implementing a special program at the enterprise that is strategic in nature, allowing to eliminate temporary difficulties, maintain and increase market positions under any circumstances, relying mainly on its own resources .

11. At the same time, as the results of the analysis show, the organization still has sufficient reserves to significantly improve its financial condition. To do this, he should more fully use the production capacity of the organization, reducing downtime of machines, equipment, labor, material and financial resources; respond more quickly to market conditions, changing the product range and pricing policy in accordance with its requirements. All this will allow you to increase profits, replenish your own working capital and achieve a more optimal financial balance sheet structure.

12. The dynamics of enterprise development are proposed, taking into account active market research, the creation of an effective system for promoting and selling products.

14. All of the above allows us to conclude that the financial condition of the analyzed organization is quite stable and stable.

List of used literature

1. Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 N 34n “On approval of the regulations on maintaining accounting records and financial statements in the Russian Federation.”
2. Kondrakov N.P. "Accounting: Textbook". M.: "INFRA-M", 2008;
3. Bakanov M.I. "Economic analysis in trade: Textbook." M.: "Finance and Statistics", 2006;
4. Makarieva V.I. "Analysis of an organization's economic activities for accountants and managers." M.: "Tax Bulletin", 2007;
5. Sheremet A.D. Negashev E.V. "Methodology of financial analysis." M.: "INFRA - M", 2007.
6. Vasilenko A.M. “Examples of a comprehensive analysis of a trade organization” // “Accounting” //, No. 8, Moscow, 2007;
7. "Financial newspaper. Regional issue", No. 28, 2007;

Table 2.

Identifier

At the beginning of 2006

At the end of 2006

At the end of 2007

At the end of 2008

Change

Absolute Velich.

Specific weight

Absolute Velich.

Specific weight

Absolute Velich.

Specific Weight (%)

Absolute Velich.

Specific weight

% (according to years)

Assets I. Non-current assets Basic resources (p. 120) Other non-current assets (line 110 + line 130 + line 140 + line 150)

Total for Section I

II. Current assets Inventories and other current assets (line 210 + line 220 + line 250 + line 270) Settlements with debtors (line 230 + line 240) Cash and cash equivalents (p. 260)

Total for Section II

Total assets

Table 3. Analysis of the structure of funds raised by Alan LLC for the period 2006-2008.

Types of funds raised

At the beginning of 2006

At the end of 2006

At the end of 2007

At the end of 2008

Growth rates accordingly, %

Growth rates, respectively, %

Debt to suppliers and contractors Wage arrears Social insurance debt Debt to the budget Debt to other creditors

Total funds raised

Table 4.

Identifier

At the beginning of 2006

At the end of 2006

At the end of 2007

At the end of 2008

Change

Absolute Velich.

Specific weight

Absolute Velich.

Specific weight

Absolute Velich.

Specific Weight (%)

Absolute Velich.

Specific weight

Absolute Velich. (by year, respectively)

% (according to years)

Passive III. Capital and reserves Charter capital (p. 410) Add. capital (p.420) Reserve. capital (p.430)

Total for Section III

IV. Long-term liabilities Long-term liabilities (p. 590)

Total for Section IV

V. Current liabilities Current liabilities (p.690)

Total for Section V

Total liabilities

Table 5. Analysis of the composition and dynamics of equity capital and liabilities of Alan LLC for the period from 2006-2008.

Capital and liabilities

Balance at the beginning of 2006

Balance at the end of 2006

Balance at the end of 2007

Balance at the end of 2008

Growth rates accordingly,%

Growth rates accordingly,%

% to balance currency

% to balance currency

% to balance currency

% to balance currency

Capital and reserves Credits and loans Involved funds Balance currency

Table 6 “ Analysis of the dynamics and structure of current assets of Alan LLC for the period from 2006-2008”

Items of current assets

Balance at the beginning of 2006

Balance at the end of 2006

Balance at the end of 2007

Balance at the end of 2008

Changes (+,-)

Accordingly, by year, thousand rubles.

Accordingly, by year,% compared to the beginning of the year

including goods VAT on purchased assets Short-term accounts receivable Cash

Table 7. Analysis of the dynamics and structure of non-current assets of Alan LLC for the period 2006-2008.

Non-current assets items

At the beginning of 2006

At the end of 2006

At the end of 2007

At the end of 2008

Change (+,-)

Change (+,-)

% to the beginning of the year

Fixed assets Other noncurrent assets