Overall the financial condition of the company
Questions: The concept of financial condition of the company. The main objectives of the analysis of the financial condition of the enterprise financial condition of the company. The main sources of financial analysis company.
The concept of financial condition of the company
Financial condition of the enterprise may be stable, unstable and crisis. The company's ability to successfully operate and develop, maintain balance its assets and liabilities in a changing internal and external environment, constantly maintain its solvency and investment appeal within the boundaries of the acceptable level of risk testifies to its strong financial position, and vice versa.
If solvency - is the outward manifestation of the financial condition of the company, the financial stability - its inner side, reflecting the balance of cash and cash flows, income and expenses, assets and sources of their formation.
To ensure the financial stability of the company should have a flexible capital structure and be able to organize his movement so as to provide a constant excess of income over expenditure in order to maintain the solvency and to create conditions for normal functioning.
Stable financial position showing the result of skillful management of the whole complex of factors that determine the financial results of the company.
The main objectives of the analysis of the financial condition of the company
The main objectives of the analysis of the financial condition of the company:
- Timely and objective diagnosis of the financial condition of the company, the establishment of "pain points" and the study of the causes of their education;
- Search to improve the financial condition of the company, its solvency and financial stability;
- Develop specific measures aimed at more efficient use of financial resources and strengthen the financial condition of the company;
- Forecasting of possible financial results and financial condition of the development of models with a variety of options for the use of resources.
Analysis of Financial Condition includes the following blocks:
- Assessment of property and capital structure;
- Evaluation of the effectiveness and usage of capital;
- Assessment of financial stability and solvency.
Analysis of financial condition based primarily on relative terms. Effectiveness analysis depends on the organization and perfection of information base.
The main sources of financial analysis of the enterprise
The main sources of information for the analysis of the financial condition of the company:
- Balance sheet;
- Statement of income and expenditure;
- Statement of cash flows;
- Statement of changes in shareholders' equity;
- Primary data and analytical accounting, which decrypts and detail the individual balance sheet items.
Questions for self-control
1. The concept of financial condition of the company.
2. What are the main problems of the analysis of the financial condition of the company.
3. What are the main sources of financial analysis of the company?