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Balance analysis

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

The main source of information on the economic activities and financial condition of the enterprise is precisely the balance sheet (form 1). Balance analysis is the first stage of an integrated study of the financial state of a commercial organization.

During the analysis, special attention is paid to the following points.

1. Analysis of changes in articles

It should begin with a description of the total amount of the enterprise's assets in the dynamics for the period under review. As a result, sources of increase (reduction) of assets are identified, taking into account the articles on which they occurred.

2. Balance sheet analysis

When studying the structure of the balance sheet, its currency and the results of each section are taken as 100%. The share of each section is calculated as a component of the total amount of funds (of all sources of the enterprise), after which the specific weight of each element is determined.

Analysis of the structure is carried out in blocks: first determine the proportion of permanent and temporary assets in the currency in which the document was conducted, then their structure (balance asset analysis) is considered. Likewise, we study liabilities (balance sheet liability analysis). The research reflects the dynamics of changes in the structure throughout the period under review. It is also necessary to identify the reasons for these changes.

Particular attention is paid to the elements that have the greatest weight, and those whose proportion is changing in discontinuity. Often they are the problem points of the enterprise.

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

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

The value of the PSC characterizes how liquid the enterprise is. The PSC index is the first indicator of its financial stability. That is why his calculation is especially important. The PSC is defined as the difference between current assets and liabilities. It can also be calculated as the difference between the invested funds and the permanent assets. With the help of the latter method, you can analyze the reasons for changing liquidity.

When calculating the structure, the level of PSC in assets is also determined, which reflects the ratio of PSC to total assets of the enterprise. The growth of the PSC in this case indicates the growth of 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 settlements are made with suppliers. To determine the adequacy (insufficiency) of the PSC, it is necessary to compare its actual value with the optimal calculated value. If it exceeds the optimal design value, the actual reduction in its level does not mean a weakening of financial stability.

The 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, sales problems, arrears, etc.). At the same time, the reasons that led to their occurrence (insufficiently effective work of the marketing department, inconsistency of the services, etc.) are indicated. On the other hand, positive trends are also determined (repayment of old debts, growth of capital, improvement of the structure of assets, etc.).

The most important positive characteristics that make it possible to identify the balance sheet analysis are the following: the growth of accumulated capital; Absence of serviced loans; Satisfactory credit history; The absence of exceeding the norms of wage arrears, before the budget, etc .; Absence of warehousing of warehouses.

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