Horizontal reporting analysis. Systems and methods of financial analysis Comparative analysis of the financial condition of the enterprise

It is a research process financial condition and main results financial activities enterprise in order to identify reserves to increase its market value and ensure further effective development.

The results of financial analysis are the basis for the adoption management decisions, development of a strategy for the further development of the enterprise. So the financial analysis is an integral part, its most important component.

Basic methods and types of financial analysis

There are six main methods of financial analysis:

horizontal(temporal) analysis— comparison of each reporting position with the previous period;
vertical(structural) analysis- identification of the specific weight of individual articles in the final indicator, taken as 100%;
trend analysis- comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual features individual periods. With the help of the trend, possible values of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;
analysis of relative indicators(coefficients) - calculation of ratios between separate reporting positions, determination of interrelations of indicators;
comparative(spatial) analysis- on the one hand, this is an analysis of the reporting indicators of subsidiaries, structural divisions, on the other hand, a comparative analysis with the indicators of competitors, industry averages, etc.;
factor analysis– analysis of the influence of individual factors (reasons) on the resulting indicator. Moreover, factor analysis can be both direct (analysis itself), when the resulting indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a common indicator.

The main methods of financial analysis carried out at the enterprise:

Vertical (structural) analysis— determination of the structure of the final financial indicators(the amounts for individual items are taken as a percentage of the balance sheet currency) and identifying the impact of each of them on the overall result economic activity. 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 also smoothes Negative influence inflationary processes that distort absolute indicators.

Horizontal (dynamic) analysis is based on the study of the dynamics of individual financial indicators over time.

Dynamic analysis is the next step after the analysis of financial indicators (vertical analysis). At this stage, it is determined which sections and items of the balance sheet have undergone changes.

The analysis of financial ratios is based on the calculation of the ratio of various absolute indicators of financial activity among themselves. The source of information is the financial statements of the enterprise.

Most important groups financial indicators:

Turnover indicators (business activity).
Market Activity Indicators

When analyzing financial ratios, the following points should be kept in mind:

the value of financial ratios is greatly influenced by the accounting policy of the enterprise;
diversification of activities makes it difficult to compare coefficients by industry, since the standard values can vary significantly for different industries;
normative coefficients chosen as a basis for comparison may not be optimal and may not correspond to the short-term objectives of the period under review.

Comparative financial analysis is based on comparing the values of individual groups of similar indicators with each other:

indicators of this enterprise and average industry indicators;
financial indicators of the given enterprise and indicators of the enterprises-competitors;
financial indicators of individual structural units and divisions of the enterprise;
comparative analysis of reporting and planned indicators.

Integral () financial analysis allows you to get the most in-depth assessment of the financial condition of the enterprise.

There are six main methods of financial analysis:

horizontal(temporal) analysis— comparison of each reporting position with the previous period;
vertical(structural) analysis- identification of the specific weight of individual articles in the final indicator, taken as 100%;
trend analysis- comparison of each reporting position with a number of previous periods and determination of the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible values of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;
analysis of relative indicators(coefficients) - calculation of ratios between separate reporting positions, determination of interrelations of indicators;
comparative(spatial) analysis- on the one hand, this is an analysis of the reporting indicators of subsidiaries, structural divisions, on the other hand, a comparative analysis with the indicators of competitors, industry averages, etc.;
factor analysis– analysis of the influence of individual factors (reasons) on the resulting indicator. Moreover, factor analysis can be both direct (analysis itself), when the resulting indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a common indicator.

The main methods of financial analysis carried out at the enterprise:

Vertical (structural) analysis- determination of the structure of the final financial indicators (the amounts for individual items are taken as a percentage of the balance sheet currency) and identifying the impact of each of them on the overall result of economic activity. 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 also smoothes out the negative impact of inflationary processes that distort the absolute indicators of financial statements.

Horizontal (dynamic) analysis is based on the study of the dynamics of individual financial indicators over time.

Dynamic analysis is the next step after the analysis of financial indicators (vertical analysis). At this stage, it is determined which sections and items of the balance sheet have undergone changes.

The most important groups of financial indicators:

liquidity indicators.
Indicators financial stability and solvency.
Profitability indicators.
Turnover indicators (business activity).
Market Activity Indicators

When analyzing financial ratios, the following points should be kept in mind:

the value of financial ratios is greatly influenced by the accounting policy of the enterprise;
diversification of activities makes it difficult to compare coefficients by industry, since the standard values can vary significantly for different industries;
normative coefficients chosen as a basis for comparison may not be optimal and may not correspond to the short-term objectives of the period under review.

Comparative financial analysis is based on comparing the values of individual groups of similar indicators with each other:

indicators of this enterprise and average industry indicators;
financial indicators of the given enterprise and indicators of the enterprises-competitors;
financial indicators of individual structural units and divisions of the enterprise;
comparative analysis of reporting and planned indicators.

Integral (factorial) financial analysis allows you to get the most in-depth assessment of the financial condition of the enterprise.

Methods for conducting financial analysis of the enterprise: graphical, tabular, coefficient. Features of the application, indicators used, advantages and limitations of the application.

Literature : 6: 5-8; 7: 14-16.

Guidelines

Analysis of the financial condition of the enterprise can be carried out in three ways:

graphic - the assessment of the financial condition of the enterprise is carried out according to the balance chart (graphic display of indicators of the financial condition of the enterprise for the analyzed period of time) based on the results of the analysis of the state and changes in financial indicators. The method is clear to the analyst, based on the analysis of the structure and dynamics of the structure, the ratio of the shares of various indicators allows you to assess the current financial condition, including the assessment of property, capital, financial results, solvency, solvency, probability of bankruptcy and give a forecast for the future;

tabular - an assessment of the financial condition of the enterprise is given on the basis of an analysis of the balance sheet, assets, liabilities, reserves, financial results, solvency and creditworthiness. With the tabular method, preliminary calculations for the analysis of absolute and relative indicators ( specific gravity), their changes, the scale and structure of changes, are summarized in tabular forms;

coefficient - assessment of individual, most significant characteristics of the financial condition of the enterprise based on the results of the analysis of relative financial indicators. The method allows you to accurately and quickly assess the dynamics of the financial performance of the analyzed enterprise or compare financial characteristics several enterprises, including in dynamics.

1. Give examples of using the tabular method in the work of internal analysts.

2. Give examples of the use of the graphical method in the work of internal analysts.

3. Give examples of the application of the coefficient method in the work of internal analysts.

4. Give examples of the use of the tabular method in the work of external analysts.

5. Give examples of the use of the graphical method in the work of external analysts.

6. Give examples of the application of the coefficient method in the work of external analysts.

7. Give a comparative description of the graphical and coefficient methods.

8. Give a comparative description of the tabular and coefficient methods.

Topic 4. Graphic method. Analysis of property, capital, solvency, creditworthiness, performance efficiency

Appointment, order of conduct. Indicators used for preliminary calculations, rules for constructing balance charts. Analysis of property, capital, financial results, solvency, creditworthiness, forecast of bankruptcy of the enterprise according to balance charts for the date of interest to the analyst or in dynamics. Forecasting the financial condition of the enterprise by balance charts.

Literature : 1: 309-312, 319-325; 5: 258-271; 6: 3-50; 7: 36-48.

Guidelines

Carrying out the work in a graphical way consists of several stages. The first stage is preparatory, before the construction of balance charts. The second stage is the construction of balance charts. The third stage is financial analysis. The fourth is an assessment of the financial condition of the enterprise.

At the first stage, the selection and calculation of the analyzed indicators is carried out. The results of selection and calculation are summarized in a table, the data of which are used to build balance charts. Accounting statements are taken as the information base: the balance sheet of the enterprise (form 1), the profit and loss statement (form 2).

At the second stage, balance diagrams are built. There must be at least two of them: at the beginning and at the end of the analyzed period. Each of the balance charts is a chart consisting of six columns (representing parts of the financial statements), in which the share of the indicator in the balance sheet currency is entered in the sequence determined at the first stage, along the vertical of the chart there is a percentage scale in ascending order from top to bottom. Absolute values can also be applied to the balance charts, in this case the monetary scale is used. Absolute values can be reduced to a single point in time, in which case discount factors are used.

At the third stage, using balance charts, an analysis of the objects of the enterprise's financial analysis is performed:

property, according to the reporting data of the balance sheet asset entered into the balance charts (columns A, B, C of the balance charts);

capital according to the accounting reporting data of the balance sheet liability entered into the balance charts (columns D, E of the balance charts);

financial results according to the reporting data of the income statement entered into the balance charts (column D of the balance charts);

solvency according to the reporting data of the asset and liability of the balance sheet entered into the balance sheets (columns A, B, C, D, E of the balance sheets);

creditworthiness according to the reporting data of the asset and liability of the balance sheet entered into the balance sheets (columns B, D, E of the balance sheets);

the probability of bankruptcy according to the reporting data of the asset and liability of the balance sheet entered into the balance charts (columns B and E of the balance charts).

The analysis of the objects of financial analysis is carried out on the basis of studying their state at the beginning of the analyzed period, at the end of the analyzed period and their dynamics in the analyzed period.

Studied and analyzed:

* the structure, dynamics and efficiency of the use of property, the shares of non-current (immobilized) and current (mobile) assets, the cost of tangible working capital(an unreasonable overstatement of which leads to overstocking, and a lack of which leads to the impossibility of the normal functioning of production), the amount of receivables (payments for which are expected more than 12 months after the reporting date and within 12 months), the amount of free cash of the enterprise in cash (cash ) and non-cash (settlement, currency accounts) forms and the amount of short-term financial investments;

* structure, dynamics and efficiency of capital use. When analyzing the structure of the balance sheet liability (obligations of the enterprise), the ratio between borrowed and own sources of funds of the enterprise is determined (significant specific gravity borrowed sources, more than 50%, indicates the risky activities of the enterprise, which can cause insolvency), the dynamics and structure of accounts payable, its share in the liabilities of the enterprise;

* structure, dynamics and efficiency of using the financial results of the enterprise. In the course of the analysis, an assessment of the dynamics of revenue and profit indicators is given, various factors that affect the dynamics of revenue and profit indicators are identified and measured;

* sufficiency of sources of formation to ensure fixed and circulating production assets in assessing the solvency of the enterprise;

* sufficiency of assets to repay liabilities, the term of their transformation into money, corresponds to the term of the obligations in assessing the creditworthiness of the enterprise;

* sufficiency of cash and tangible current assets to repay short-term liabilities when assessing the probability of bankruptcy.

After summarizing the results of the analysis of the objects of financial analysis of the enterprise, a general assessment of the financial condition of the enterprise is given, directions for improving the financial condition of the enterprise are determined, and possible changes in the financial condition of the enterprise are predicted.

Questions for independent work and control

1. Which column of the balance sheet reflects the value of intangible assets.

2. What columns of the balance chart are used in property valuation.

3. What columns of the balance chart are used in the assessment of capital.

4. What columns of the balance chart are used in assessing financial results.

5. What balance chart columns are used in assessing creditworthiness.

6. What balance chart columns are used in assessing solvency.

7. What columns of the balance chart are used in assessing the probability of bankruptcy.

8. What columns of the balance chart are used in determining the type of financial stability.

Financial analysis Bocharov Vladimir Vladimirovich

1.4. Methods of financial analysis

The key goal of financial analysis is to obtain a certain number of basic (most informative) indicators that give an objective picture of the financial condition of the enterprise:

? changes in the structure of assets and liabilities;

? dynamics of settlements with debtors and creditors;

? the value of profits and losses and the level of profitability of assets and sales.

At the same time, the analyst and the manager (manager) may be interested in both the current financial position of the enterprise and its forecast for the near future.

The initial basis for financial analysis is the data accounting and reporting, the study of which helps to restore all key aspects of commercial activity and completed transactions in a generalized form, i.e. with the degree of aggregation necessary for the analyst.

Practice has developed the main methods of financial analysis, among which are the following:

? horizontal analysis;

? vertical analysis;

? trend analysis;

? comparative (spatial) analysis;

? factor analysis;

? method of financial ratios.

Horizontal (temporal) analysis consists in comparing the financial statements with those of previous periods. The most common horizontal analysis techniques are:

? simple comparison of reporting items and the study of their abrupt changes;

? analysis of changes in reporting items in comparison with fluctuations in other items.

At the same time, special attention is paid to cases where a change in one indicator by economic nature does not correspond to a change in another indicator.

Vertical analysis is carried out in order to determine the share of individual balance sheet items in the overall final indicator and then compare the result with the data of the previous period.

Trend analysis is based on the calculation of relative deviations of reporting indicators for a number of periods (quarters, years) from the level of the base period. With the help of the trend, possible values of indicators are formed in the future, i.e., a predictive analysis is carried out.

Comparative (spatial) analysis is carried out on the basis of on-farm comparison of both individual indicators of the enterprise and inter-farm indicators of similar competing firms.

Factor analysis- this is the process of studying the influence of individual factors (reasons) on the performance indicator using deterministic or stochastic research methods. In this case, factor analysis can be both direct (analysis itself) and reverse (synthesis). With the direct method of analysis, the performance indicator is divided into its component parts, and with the reverse method, individual elements are combined into a common performance indicator.

An example of factor analysis is the three-factor DuPont model, which allows you to study the reasons that affect the change in net income to equity:

PE SK \u003d PE / SK \u003d (PE / BP) ? (VR/A) ? (A/SK), (1)

where NP SK - net return on equity (percentage or fractions of a unit); PE - net (retained) profit for the billing period; SC - equity as of the last reporting date (section III of the balance sheet); VR - proceeds from the sale of products (excluding indirect taxes); A - assets at the last reporting date.

If, as a result of the analysis of financial statements, it is established that the net profit attributable to equity has decreased, then it turns out due to what factor this happened:

1) decrease in net profit for each ruble of sales proceeds;

2) less effective management assets (deceleration of their turnover), which leads to a decrease in sales proceeds;

3) changes in the structure of the advanced capital (financial leverage).

Let's take a digital example. Data for the first quarter of the reporting year: net profit - 9 million rubles; sales proceeds - 60 million; assets - 120 million; own capital - 30 million rubles. Data for the second quarter of the reporting year: net profit - 9.9 million rubles; sales proceeds - 63.6 million; assets - 126 million; own capital - 30 million rubles.

PE SK1 = (9/60) ? (60/120) ? (120/30) ? 100= 30%

PR SC2 = (9.9 / 63.6)? (63.6/126.0) ? (126.0/30.0) ? 100= 33%

1. As a result of the growth of net profit, an increase in the net return on equity by 1.14% (31.14–30.0) was obtained:

(9,9/63,6) ? (60/120) ? (120/30) ? 100= 31,14 %

2. As a result of the acceleration of asset turnover, an increase in the net return on equity by 0.3% (30.3 - 30.0) was achieved:

(9/120) ? (63,6/126,0) ? (120/30) ? 100= 30,3 %

3. As a result of improving the capital structure, an increase in the net return on equity by 1.5% (31.5 - 30.0) was obtained:

(9/120) ? (60/120) ? (126/30) ? 100= 31,5 %

4. The combined effect of the three factors is: 1.14 + 0.3 + 1.5 = 2.94% or approximately 3% (33-30).

The method of chain substitutions was used for the calculation.

An analysis of the net profit indicator attributable to equity is used to decide how much an enterprise can increase its assets in the future without an increase in the attracted capital of loans and borrowings, i.e.:

1) when choosing a rational capital structure;

2) when deciding the issue of investments in fixed and working capital.

The method of financial ratios is the calculation of the ratios of financial statements data, the determination of the relationship of indicators. The analysis should take into account the following factors: the effectiveness of the applied planning methods, the reliability of financial statements, the use of various accounting methods (accounting policies), the level of diversification of other enterprises, the static nature of the applied coefficients.

In the practice of Western corporations (USA, Canada, Great Britain), the following three coefficients are most widely used: ROA, ROE, [email protected]@C.

Profit attributable to total assets (ROA) = (Net income + Interest? (1 - tax rate)) / Total assets? 100(2)

This indicator reflects how much the company has earned on total assets generated from its own and borrowed sources. The ROA ratio is often used by the company's top management to evaluate the performance of individual business units. The head of the division has significant influence over the assets, but cannot control their financing, because the branch of the company does not take bank loans, does not issue stocks or bonds, and in many cases does not pay its own bills (for current liabilities).

Return on Equity (ROE) = Net Income / Shareholder Equity? 100 (3)

This ratio shows how much was earned from the funds invested by the shareholders (either directly or through retained earnings). The ROE ratio is of interest to existing or potential shareholders, as well as to the management of the company, designed to best consider the interests of shareholders. However, this ratio is not of particular interest to branch managers, since they are required to effectively manage assets, regardless of the role of shareholders and creditors in financing these assets.

Invested capital, also called fixed capital, is the sum of long-term liabilities (credits and loans) and equity capital. Therefore, it expresses the monetary resources that are in the circulation of the company for a long time. It is assumed that short-term liabilities tend to fluctuate automatically associated with changes in current assets.

Return on investment capital (RO?C) = (Net income + Interest? (1 - tax rate)) / (Long-term liabilities + Equity) ? 100% (4)

Invested capital is also equal to working (working) capital plus fixed capital. This fact indicates that owners and long-term creditors should finance the firm's property and equipment, other long-term assets, and that part of current assets that is not reimbursed by short-term liabilities.

Individual firms often use RO?C to measure the performance of their affiliates, often referred to as return on capital employed (ROCE) or "net assets" (assets minus current liabilities). This parameter is applicable only in cases where the management of the branch has an important influence on decisions on the acquisition of assets, credit policy (accounts receivable), cash management and the level of its short-term liabilities.

Return on invested capital equals net income divided by investment. RO coefficient? can be seen as the combined result of two factors: return on sales and use of investment.

(Net income / Investment (RO?)) = (Net income / Sales volume) ? (Sales/Investments)

Each of the two terms on the right side of the equation has its own special economic meaning. Net profit divided by sales is the economic return on goods sold (ROS).

The second indicator - the volume of sales divided by investments - characterizes the turnover of the latter.

These two ratios show two main ways to improve this indicator (RO?). First, this can be achieved by raising the rate of profit. Secondly, this indicator can be improved by increasing the investment turnover. In turn, the turnover of the latter can be increased, either by increasing the volume of sales, keeping the amount of investment unchanged, or by reducing the amount of investment required to maintain a given value.

In addition to wanting a satisfactory rate of return, investors would like their capital to be protected from financial risk. Return on equity (ROE) could be increased if additional investment in new projects was achieved solely through debt. Of course, provided that the profit on these additional investments should exceed the interest costs on these obligations.

However, such an investment policy would increase the risk of shareholders losing their investments, since interest and principal payments are fixed and failure to pay them will inevitably lead the company to bankruptcy. The degree of risk in each case can be measured by the relative amounts of liabilities and share capital and funds allocated to pay off liabilities. This analysis also requires the use of financial ratios.

The indicators given in this table can be used by external users of financial statements, such as investors, shareholders and creditors. For a preliminary assessment of the financial condition of the enterprise, it is advisable to divide the above indicators into two groups that have qualitative differences between themselves.

The first group includes indicators for which normative values are determined. These include indicators of liquidity and financial stability. At the same time, both a decrease in the values of parameters below the normative values, and an excess, as well as their movement in one of the above directions, should be interpreted as a deterioration in the financial condition of the enterprise.

The second group includes non-standardized indicators, which are usually compared in dynamics over a number of periods or with the values of the same indicators at similar enterprises. This group includes indicators of profitability and turnover of assets and equity, the structure of property and capital, etc.

For this group of indicators, it is advisable to rely on the study of trends in indicators and establish their improvement or deterioration.

The complexity of the current situation in Russia lies in the fact that in many enterprises, employees of the accounting department do not have enough knowledge of the methods of financial analysis, and specialists who own them do not have time (due to the workload of their main work) to read and analyze documents of analytical and synthetic accounting.

In this regard, it is advisable for enterprises to allocate a service (a group of specialists) involved in the analysis of the financial and economic state. The main tasks of this service can be:

1) development of input and output analytical forms with indicators of liquidity, financial stability, business and market activity. The accounting department completes these forms at intervals that are appropriate to support the work financial services enterprises;

2) periodic (monthly, quarterly, annual) compilation of explanatory notes to the output forms with calculations of the main analytical indicators and deviations from the planned, normative, industry average values.

An exemplary functional diagram of the relationship for the implementation of the financial and economic analysis of the enterprise is shown in fig. 1.3.

Rice. 1.3. Approximate functional diagram of relationships for financial / economic analysis (according to the recommendations of the Ministry of Economy of the Russian Federation)

Based on the results of the financial and economic analysis, we can formulate financial policy enterprises for the coming period (quarter, year). In particular, a decision may be made to restructure the property complex (sale of unused tangible assets, renewal of heavily worn out fixed assets, revaluation of fixed assets taking into account their market value, change in the depreciation accrual mechanism, etc.). The decisions taken by the management of the enterprise should be aimed at increasing its profitability, market value and business activity.

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methods and techniques of analysis that are optimal for achieving the goals and objectives;

information base of analysis;

decision criterion in case of unusual fluctuations

Basic methods of financial analysis

There are the following main methods of financial analysis:

§ preliminary reading of accounting (financial) statements;

§ horizontal (temporal) analysis - comparison of each reporting position with the previous period;

§ vertical (structural) analysis - identification of the share of individual articles in the final indicator, taken as 100%;

§ trend analysis - comparing each reporting position with a number of previous periods and determining the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible values of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;

§ analysis of relative indicators (coefficients) - calculation of ratios between individual reporting positions, determination of interrelations of indicators;

§ comparative (spatial) analysis - on the one hand, this is an analysis of the reporting indicators of subsidiaries, structural divisions, on the other hand, a comparative analysis with the indicators of competitors, industry averages, etc.;

§ factor analysis - analysis of the influence of individual factors (reasons) on the resulting indicator. Moreover, factor analysis can be both direct (analysis itself), when the resulting indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a common indicator.

The main methods of financial analysis carried out at the enterprise:

Preliminary reading of accounting (financial) statements.

Preliminary acquaintance with the reporting of the enterprise allows you to study the absolute values, draw conclusions about the main sources of raising funds, the directions of their investment, the main sources of profit, the accounting methods used and changes in them, organizational structure enterprises, etc. The information obtained during the preliminary reading gives a general idea of the financial condition of the enterprise, however, it is not enough for making managerial decisions.

Vertical (structural) analysis - determining the structure of the final financial indicators (the amounts for individual items are taken as a percentage of the balance sheet currency) and identifying the impact of each of them on the overall result of economic activity. 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 also smoothes out the negative impact of inflationary processes that distort the absolute indicators of financial statements.

Vertical (structural) analysis gives an idea of the structure of the final financial indicators with the identification of the impact of each position on the result. This method financial analysis is used to study the structure of the balance sheet by calculating the proportion of individual balance sheet items in the overall total or in the context of the main groups of items. An important point of vertical analysis is the presentation of the structure of indicators in dynamics, which allows you to track and predict structural changes in the composition of assets and liabilities of the balance sheet. The use of relative indicators smooths out inflationary processes.

The most widespread are the following types of vertical (structural) analysis:

1. Structural analysis of assets. In the process of this analysis, the share of current and non-current assets is determined; elemental composition of current assets; elemental composition of non-current assets; the composition of the company's assets in terms of liquidity; composition of the investment portfolio and others. The results of this analysis are used in the process of optimizing the composition of the company's assets.

2. Structural analysis of capital. In the process of this analysis, the share of equity and borrowed capital used by the enterprise is determined; the composition of borrowed capital used by periods of its provision (short-term and long-term borrowed capital); the composition of the borrowed capital used by its types (bank credit; financial credit of other forms; commodity or commercial credit, etc.). The results of this analysis are used in the process of assessing the effect of financial leverage, determining the weighted average cost of capital, optimizing the structure of sources for the formation of borrowed financial resources, and in other cases.

3. Structural analysis of cash flows. In the process of this analysis, as part of the total cash flow, cash flows from the operating, investment and financial activities of the enterprise are distinguished; as part of each of these types of cash flow, the receipt and expenditure of funds, the composition of the balance of cash assets by its individual elements are more deeply structured.

The results of vertical (structural) financial analysis are usually also presented graphically.

a) pie chart of profit distribution directions

b) bar chart of profit distribution directions

Horizontal (dynamic) analysis is based on the study of the dynamics of individual financial indicators over time.

Dynamic analysis is the next step after the analysis of financial indicators (vertical analysis). At this stage, it is determined which sections and items of the balance sheet have undergone changes.

With a horizontal (temporal) analysis, absolute indicators are supplemented by relative, as a rule, growth or decline rates. Based on a horizontal analysis, an assessment is made of changes in the main indicators of accounting (financial) statements. Most often, horizontal analysis is used in the study of balance. The disadvantage of the method is the incomparability of the data in terms of inflation. This disadvantage can be eliminated by recalculating the data.

Trend analysis.

Trend analysis is a type of horizontal analysis, it is used in cases where the comparison of indicators is made for more than three years. In this case, long-term comparisons are usually carried out using indices. Each reporting position is compared with a number of previous periods to determine the trend. Trend - the main trend of the indicator. The calculation of a series of index numbers requires the selection of a base year for all indicators. Since the base year will be the basis for all comparisons, it is best to choose the year that is the most normal or typical in terms of business conditions. When index numbers are used, percentage changes can only be interpreted in comparison with the base year. This type of analysis is in the nature of a prospective predictive analysis, it is used in cases where it is necessary to make a forecast for individual financial indicators or for the financial condition of the enterprise as a whole.

The method of financial ratios is based on the existence of certain relationships between individual reporting items. Ratios allow you to determine the range of information that is important for users of information about the financial condition of the enterprise in terms of decision-making. The coefficients make it possible to find out the main symptoms of a change in the financial situation and determine the trends in its change. If the coefficients are correct, areas for further investigation can be identified. The big advantage of the ratios is that they smooth out the negative impact of inflation, which significantly distorts the absolute figures of financial statements, thereby making it difficult to compare them in dynamics. The most important groups of financial indicators:

1. Liquidity indicators.

2. Indicators of financial stability and solvency.

3. Indicators of profitability.

4. Indicators of turnover (business activity).

5. Indicators of market activity

Rice. one "Indicators taken into account in the analysis of the financial condition of the company"

When analyzing financial ratios, the following points should be kept in mind:

§ the value of financial ratios is greatly influenced by the accounting policy of the enterprise;

§ diversification of activities makes it difficult to compare coefficients by industry, since standard values can vary significantly for different industries;

§ The normative coefficients chosen as the basis for comparison may not be optimal and may not correspond to the short-term objectives of the period under review.

The most important reporting ratios used in financial management according to E. S. Stoyanova are:

liquidity ratios (current liquidity ratio, urgent liquidity ratio and net working capital);

coefficients of business activity or efficiency of use of resources (turnover of assets, turnover of receivables, turnover of inventories and the duration of the operating cycle);

profitability ratios (profitability of all assets of the enterprise, profitability of sales, return on equity);

market activity ratios (earnings per share, book value of one share, ratio of the market price of a share and its book value, return on a share and share of dividends paid).

Comparative financial analysis is based on comparing the values of individual groups of similar indicators with each other:

§ indicators of the given enterprise and average industry indicators;

§ financial indicators of the given enterprise and indicators of the enterprises-competitors;

§ financial indicators of individual structural units and divisions of the given enterprise;

§ comparative analysis of reporting and planned indicators.

Integral (factorial) financial analysis allows you to get the most in-depth assessment of the financial condition of the enterprise.

Factor analysis is used to study and measure the impact of factors on the value of the effective indicator. Factor analysis can be direct, when the performance indicator is divided into its component parts, and reverse, when individual elements are combined into a common performance indicator.

Factor analysis can be single-stage, when factors of only one level are used for analysis, and multi-stage, when factors are detailed into constituent elements to study their behavior, it can also be retrospective, when the causes of changes in performance indicators for past periods are studied, and prospective, when the behavior of factors and their impact on performance indicators in the future.

Factor analysis can be static, to study the influence of factors on performance indicators for a certain date, and dynamic, when causal relationships are studied in dynamics.

In addition to the listed basic analytical methods for studying financial statements, there are scientifically based methods of financial analysis:

traditional - comparison, comparison, grouping;

economic and mathematical - graphical, matrix methods, linear programming method, correlation and regression analysis method, set theory method, etc.;

heuristic -- methods based on expert opinions specialists, their intuition, past experience.

The auditor chooses a specific method of analysis based on the objectives of the analysis, his experience and professional qualifications, the volume and composition of the information base of financial analysis

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Horizontal reporting analysis. Systems and methods of financial analysis Comparative analysis of the financial condition of the enterprise

Basic methods and types of financial analysis

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