Balance sheet analysis


The balance sheet, in fact, is a way of grouping the property of an economic entity. It presents the balance of property values ​​belonging to the enterprise in two aspects: a description of the location and composition (asset) and a description of the sources of origin and purpose (passive).

The main source of information about the business and the financial condition of the enterprise is the balance sheet (Form 1). Balance analysis is the first stage of a comprehensive study of the state of finances of a commercial organization.

The analysis focuses on the following points.

1. Analysis of changes in articles

It should begin with a description of the amount of the entire property of the enterprise in dynamics over the period under consideration. As a result, sources of increase (reduction) of assets are identified, taking into account the items for which they occurred.

2. Analysis of the structure of balance

When studying the balance structure, its currency and the results of each section are taken as 100%. The share of each section is calculated as part of the total amount of funds (all sources of the enterprise), then the share of each element is determined.

The structure analysis is carried out by blocks: first, the share of permanent and temporary assets in the currency in which the document was kept is determined, then their structure is analyzed (analysis of the asset balance). Similarly explore liabilities (analysis of liabilities balance). The study reflects the dynamics of changes in the structure throughout the period under consideration. It is also necessary to identify the causes of these changes.

Particular attention is paid to the elements that have the greatest weight, and to those whose share changes abruptly. Often, they are the problem points of the enterprise.

3. Analysis of the balance of net working capital (PSC)

The PSC helps determine the value of current assets that are funded by invested capital. It shows what part (share) of current assets was financed in a certain period at the expense of the company's own capital.

The value of PSCs characterizes how liquid a company is. The indicator of the PSC is the first indicator of its financial stability. That is why his calculation is especially important. Chalk is defined as the difference between current assets and liabilities. It can also be calculated as the difference between invested funds and fixed assets. Using the latter method, it is possible to analyze the reasons for which changes in liquidity occur.

When calculating the structure also determine the level of the CHALK in assets, which reflects the ratio of the CHALK to the total assets of the enterprise. The growth of PSCs in this case indicates an increase in the financial independence of the enterprise.

The optimal value of the indicator is determined taking into account the liquidity of the property and the conditions under which calculations are made with suppliers. To determine the sufficiency (insufficiency) of the FER, it is necessary to compare its actual value with the optimal calculated value. When it exceeds the optimal calculated value, the actual decrease in its level does not mean a weakening of financial stability.

Analysis of the balance ends with a preliminary conclusion about the presence of certain negative factors in the state of the enterprise (depreciation of funds, problems with sales, availability of debts, etc.). At the same time, the reasons that led to their occurrence are indicated (insufficiently effective work of the marketing department, inconsistency in the work of services, etc.). On the other hand, positive trends are also determined (the repayment of previous debts, capital growth, improvement of the structure of assets, etc.).

The most important positive characteristics that the analysis of the balance reveals are the following: the growth of accumulated capital; lack of serviced loans; satisfactory credit history; the absence of overdue wage arrears, to the budget, etc .; no overstocking warehouses.

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