Sources of formation of stocks and costs

1. Availability of own working capital (SOS):

SOS u003d SK – VnA

2. Availability of own and long-term borrowed sources of formation of reserves and costs (SD):

SD u003d SOS + DP u003d (SK + DP) – VnA

3. The total value of the main sources of formation of reserves and costs (OI):

OI u003d SD + KP u003d SK + DP + KP – VnA

Indicators of the provision of reserves and costs with the sources of their formation:

1. Surplus (+) or shortage (-) of own working capital (∆SOS):

∆SOS = SOS – Z

where Z – stocks (line 1210 + line 1220 of section II of the asset balance).

2. Surplus (+) or shortage (-) of own and long-term sources of reserves formation (∆SD):

∆SD = SD – W

3. Surplus (+) or deficiency (-) of the total value of the main sources of reserves formation (∆OI):

∆OI u003d OI – Z

When determining the type of financial stability, a three-dimensional (three-component) indicator is used: y u003d f (хi) or f (∆SOS, ∆SD, ∆OI).

Wherein

f (хi) =

Table 3

Types of financial stability of an enterprise

Type of financial stability 3D indicator Sources of cost coverage used a brief description of
1. Absolute financial stability (1, 1, 1) Own working capital High solvency; the company is not dependent on creditors
2.Normal financial stability (0, 1, 1) Own working capital plus long-term loans Normal solvency; efficient use of borrowed funds; high profitability of production activities
4. Unstable financial situation (0, 0, 1) Equity working capital plus long-term and short-term loans and borrowings Violation of solvency; the need to attract borrowed funds; opportunity to improve the situation
4. Crisis financial condition (0, 0, 0) All possible sources of cost coverage The company is insolvent and on the verge of bankruptcy

Table 4

The system of indicators for assessing the financial stability of an enterprise

Name of indicator Calculation formula Interpretation of the indicator Recommended value
Equity concentration ratio Equity / total business assets It characterizes the share of the property of the owners of the enterprise in the total amount of funds advanced in its activities. The higher the value of the coefficient, the more financially stable, stable and independent of external creditors the enterprise is. >0.5
Financial dependency ratio Total business assets/ equity It characterizes the share of debt in the total amount of funds. The growth of the indicator means an increase in the share of borrowed funds in financing n/a
Equity maneuverability ratio SOS/Equity Shows how much equity is used to finance current activities, i.e. invested in working capital, and which is capitalized. 0.2-0.5
Debt capital concentration ratio Borrowed capital/total business assets Characterizes the share of borrowed funds in the total amount of funds advanced in its activities < 0.5
Long-term investment coverage ratio Long-term liabilities/non-current assets Shows what part of fixed assets is financed by external investors
Debt structure ratio Long-term liabilities/borrowed capital Shows the share of long-term liabilities in the total amount of borrowed funds
Ratio of borrowed and own funds (coefficient of debt) Borrowed capital / equity capital Shows how much borrowed funds are attracted for 1r. own funds. Gives an overall assessment of Finn. stability n n. The growth of the indicator in dynamics indicates an increase in the dependence of p n on external creditors and a loss of financial stability.

Table 5

Grouping of asset and liability items for balance sheet liquidity analysis

ASSETS Absolute liquidity conditions LIABILITY
A1 – the most liquid assets (cash of enterprises and short-term financial investments) A1 ≥ P1 P1 – the most short-term liabilities (accounts payable)
A2 – fast-moving assets (accounts receivable up to 12 months and other assets) A2 ≥ P2 P2 – short-term liabilities (short-term loans and borrowings and other short-term liabilities, estimated liabilities)
A3 – slow-moving assets (stocks with VAT, DZ over 12 months) A3 ≥ P3 P3 – long-term liabilities (long-term loans and borrowed funds)
A4 – hard-to-sell assets (items in section I of the balance sheet “Non-current assets”) A4 ≤ P4 P4 – permanent liabilities (items of section III of the liabilities of the balance sheet “Capital and reserves”)

Table 6

Analysis of the liquidity of the company’s balance sheet for … ..

Assets At the beginning of the year, thousand rubles At the end of the year, thousand rubles Passive At the beginning of the year, thousand rubles, At the end of the year, thousand rubles Payment surplus (+) or deficiency (-), thousand rubles Liabilities coverage percentage, %
At the end of the year At the end of the year At the end of the year At the end of the year
7=2-5 8=3-6 9=2/5*100% 10=3/6*100%
A1 P1
A2 P2
A3 P3
A4 P4
Balance Balance

Table 7

The system of indicators for assessing the liquidity of an enterprise

Name of indicator Calculation formula Interpretation of the indicator Recommended value
Current (total) liquidity ratio Current assets/short-term liabilities A1+A2+A3/ P1+P2 Shows the sufficiency of working capital at p / p to cover short-term obligations. The lower limit indicates that working capital should be sufficient to cover its short-term liabilities. Exceeding the upper limit indicates an irrational investment of one’s funds. 1-2
Quick liquidity ratio OA – production reserves / short-term liabilities or (DS + KFV + DZ) / KP A1 + A2 / P1 + P2 Shows the predicted payment possibilities p / p in the conditions of timely settlements with debtors. A low value indicates the need for systematic work with debtors to ensure the conversion of receivables into cash. ³1
Absolute liquidity ratio Cash/short-term liabilities A1 / P1+P2 Shows what part of the short-term debt p / p can repay in the near future. It characterizes the solvency at the date of the balance sheet. 0.2-0.5

Table 8

System of indicators for evaluating business activity

Name of indicator Calculation formula Comment
1) The indicator of the efficiency of the use of labor resources
Labor productivity, thousand rubles / person Sales proceeds/average headcount
2) The indicator of the efficiency of the use of fixed assets
return on assets Sales proceeds / average cost of fixed assets
3) Indicators of turnover of working capital
Accounts receivable turnover ratio (RD), turnover Sales revenue/average receivables Shows the number of turnovers made by receivables for the analyzed period.
DZ turnover duration, days 360 days / receivables turnover, turnover Characterizes the duration of one turnover of receivables in days
Inventory turnover ratio, turnover Cost of sales/average inventory Shows the number of inventory turnovers (raw materials, materials, WIP, GP in stock) for the reporting period
Inventory turnover duration, days 360 days / inventory turnover, turnover Shows the rate of transformation of stocks from material to monetary form.
4) Indicators of accounts payable turnover (KZ)
Short circuit turnover ratio, revolutions Cost of sales / average balance of accounts payable Shows the company’s debt turnover rate.
Duration of accounts payable turnover, days 360 days / accounts payable turnover, turnover Shows the duration of one turnover of short-term debt and characterizes the period of time for which the payment order covers the urgent debt.
5) Indicators of turnover of own capital, total capital
Equity turnover ratio, turnover Sales proceeds / average equity Reflects the activity (return) of own funds. Growth in dynamics means an increase in the efficiency of the use of equity capital.
Total capital turnover ratio, turnover Sales proceeds / average total capital It characterizes the return of all funds, including those raised. The trend towards the growth of the indicator indicates an increase in the efficiency of using the economic potential p / p.
Production cycle Operating cycle Financial cycle

Table 9

The system of indicators of profitability of the enterprise

Name of indicator Calculation formula Comment
Profitability of products (sales) Profit from sales/sales proceeds It characterizes how much profit falls on 1 ruble of sales. Return on sales values for different industries can vary greatly, so you should analyze the dynamics of their changes
Profitability of core business Profit from sales / costs of production and marketing of products Shows the profit from the costs incurred for the production of products. The dynamics may indicate the need to revise prices or strengthen control over the SB of sold products
Return on total capital (assets) Net profit/average balance total Shows the effectiveness of the use of all property of the organization, how many rubles of profit fall on 1 ruble. enterprise assets
Return on equity Net Income/Average Equity Shows how many rubles of profit fall on 1 rub. own capital, i.e. reflects the effectiveness of the use of funds belonging to the owners of the enterprise

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