Information technologies used in the process of managing the financial activities of an enterprise

What it is

Long-term are those liabilities of a company that are subject to full repayment within more than one year.
It follows that the period during which short-term liabilities are repaid is less than 12 months. Long-term debt consists of several types:

• from borrowed capital, which includes the total credit and loan amount of the company, interest, as well as certain additional costs associated with lending;
• from deferred tax liabilities, that is, from the amount of deferred tax imposed on the company's profits (it usually leads to a subsequent increase in this tax in other reporting periods);
• from some estimated liabilities that are obligatory according to the plan for more than one year;
• from other obligations falling under this category.

Short-term debt, in turn, also consists of different types of funds:

1. From borrowed capital, which represents loans and credits for a relatively short period, as well as interest and additional costs for their implementation and security.
2. From accounts payable, reflecting the total amount that the company must pay to its servicing bank within twelve months.
3. From income in future periods, that is, the profit that was received during the reporting period, but relates to the next one. This includes capital expenses, operating expenses, and leasing payments.
4. From estimated debts, which reflect the amounts, the application and distribution of which is planned for no more than one year.
5. Among other obligations falling under this category, for example, financing received for a specific purpose, the amount of VAT that is deducted at the time of transfer of the advance.

A decrease in short-term financial investments indicates

The question of what amount of working capital is optimal for a company is, without a doubt, relevant for every business entity in the production sector. In order to control the ratio, standardization methods are successfully used in practice. In this article, we will look at what an increase or decrease in the amount of an organization’s working capital over time may indicate. The content of the article

• 1 Current assets and their importance for the company
• 2 Reduction of current assets
• 3 How to increase your own working capital

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Current assets and their importance for the company Current assets are the most mobile category of an organization's property.

Zoom in and out

A situation may arise when the number of short-term or long-term liabilities increases or, conversely, decreases. What could this indicate?

In most cases, this does not indicate or indicate that the ratio of the organization’s own and attracted sources of financing and capital has changed. This situation may arise due to the fact that company managers have begun to actively attract sources of funds that issue loans for a period of more than a year.

Taking into account other equal circumstances, we can say that this trend will have a positive impact on the financial condition of the company, since an increase in the volume of personal sources of capital indicates the reinvestment of raised funds.

When the volume of long-term liabilities grows, we can talk about the trust placed in the organization by investors who consider this company to be reliable, stable and profitable.

If the number of short-term liabilities decreases, the financial risks associated with investing in unstable activities also decrease. In addition, it is important to understand that the volume of short-term lending is directly related to the formation of a certain dependence on them. Therefore, the smaller the given volume, the lower, accordingly, the high risks that always arise when using constantly changing sources to attract capital.

Analysis of changes in the composition and structure of assets and liabilities of the enterprise’s balance sheet

The balance sheet asset contains information about the allocation of capital available to the enterprise. The main feature of the grouping of balance sheet asset items is the degree of their liquidity. On this basis, all assets are divided into long-term (fixed capital) and current (current) assets. The allocation of enterprise funds is of great importance. The results of production and financial activities, and therefore the financial condition of the enterprise, largely depend on what funds are invested in fixed and working capital, how many of them are in the sphere of production and the sphere of circulation, in monetary and material form. Therefore, in the process of analyzing the assets of an enterprise, first of all, one should study changes in their composition, structure and evaluate them.

To analyze asset items, we will use development table 1. From the data in table 1 it follows that during the analyzed period, the enterprise’s assets increased significantly, the growth rate was 159.8%. This was mainly due to the growth of immobilized assets, which increased by 91.8%.

The company's current assets also increased, the increase amounted to 29.5%. The largest increase occurred in the item “Accounts receivable”, the growth rate was 80.2%. During the analyzed period, the company's funds increased by 39.4%. As for the inventory item, there is a decrease of 33.8%.

Analytical grouping and analysis of balance sheet asset items

For a more detailed analysis of the asset structure, we will use Table 2. According to Table 2, it can be seen that during the reporting period, the asset structure of the analyzed enterprise changed significantly: the share of fixed capital increased, and the share of working capital decreased accordingly by 9.7 percentage points. Among non-current assets, the largest share belongs to fixed assets.

The state of inventory has a great influence on the financial condition of the enterprise. Having smaller but more mobile inventories means that less financial resources are frozen in inventories. The presence of large inventories indicates a decline in the activity of the enterprise. The share of inventories decreased by 12 percentage points. This was largely due to a decrease in the share of finished products by 8.2 points, which indicates an acceleration of capital turnover.

It is necessary to analyze the impact on the financial condition of the enterprise of changes in accounts receivable. If a company expands its activities, the number of customers and receivables increase. Consequently, the growth of accounts receivable is not always assessed negatively. It is necessary to distinguish between normal and overdue debt. The presence of the latter leads to a slowdown in capital turnover. In our example, the share of receivables increased by 3.1 percentage points, and in the article “Buyers and customers” there was a significant increase in the share (by 9.6 points), and in the article “Advances issued” there was a decrease of 4.4 points.

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Detailed analysis of balance sheet asset items

An increase in funds in accounts usually indicates a strengthening of the financial condition of the enterprise. Their amount must be sufficient to cover the priority payments. However, holding large cash balances over a long period of time may be a result of improper use of working capital. According to our example, at the end of the reporting period there was a slight decrease in the share of cash – by 0.8 percentage points.

If the assets of the balance sheet reflect the funds of the enterprise, then the liabilities indicate the sources of their formation. The financial condition of an enterprise largely depends on what funds it has at its disposal and where they are invested. According to the degree of ownership, the capital used is divided into equity and borrowed capital. Based on the duration of use, a distinction is made between long-term (constant, permanent) and short-term capital.

We begin the analysis of balance sheet liability items by examining Table 3. During the analyzed period, the growth rate of the enterprise’s sources of property was 159.8%. This was largely due to an increase in equity capital by 61.3%. This fact positively characterizes the financial stability of the enterprise.

Long-term liabilities decreased by 9.4%. An increase in long-term liabilities could be seen as a positive factor since they equate to equity. A decrease in long-term liabilities along with an increase in short-term ones can lead to a deterioration in the financial stability of the enterprise.

Analytical grouping and analysis of balance sheet liability items

Managing the attraction of borrowed capital of an enterprise

Page 13

The value of long-term liabilities increased during the study period by 196,915 thousand rubles, or by 67.11%, and amounted to 490,329 thousand rubles in 2007. This happened due to an increase in the cost of long-term loans and credits from 282,434 thousand rubles. in 2005 to 484,215 thousand rubles. in 2007, this indicates that the company began to use long-term loans more. Their share in the overall balance sheet structure decreased by 11.6% in 2007 compared to 2005.

Short-term liabilities also tend to increase, and in 2007 they amounted to 510,826 thousand rubles, which is 333,280 thousand rubles. more than in 2005. This happened mainly due to an increase in accounts payable to suppliers and contractors - by 238.32%. The share of short-term loans and borrowings increased from 23.20% in 2005 to 33.94% in 2007. The debt to personnel increased significantly - by 15,335 thousand rubles. in 2007 compared to 2005. The debt to state extra-budgetary bodies has almost doubled.

Thus, in general, borrowed capital in 2007 increased by 530,195 thousand rubles. or 112.57%.

Along with balance sheet indicators and their derivatives, it is also necessary to calculate and analyze over time the efficiency indicators of capital and its constituent elements. Characteristic for assessing efficiency are the return (turnover) coefficients of the organization’s total sources of funds, as well as their individual types: short-term loans and borrowings, accounts payable.

Each such ratio reflects the ratio of sales revenue to the average balance sheet value of indicators of sources of funds. The economic content of return on capital ratios lies in the fact that their value shows how much revenue the organization received for each ruble of a financial source of one type or another. The higher these indicators, the higher the return on capital (Table 11).

The efficiency of capital use can also be assessed using the average duration of one turnover period, measured in days.

The turnover period shows how long it takes to complete the full turnover of a particular source of funds for an organization. In other words, over what period of time does a ruble of capital generate a ruble of revenue. For each organization, the duration of the average period of capital turnover is influenced by many objective and subjective factors characteristic of its industry, scale of activity, and established features of business turnover. This indicator is assessed primarily in dynamics. Of course, the shorter this period, the faster the financial resources pay off. A slowdown in the turnover period indicates a decrease in the efficiency of using capital and financial resources. Algorithms for calculating turnover indicators (ratios and turnover periods) are presented in Table 10.

Table 10 — Indicators of turnover (return) of obligations

Table 11 presents the results of calculations of the turnover indicators of liabilities of OJSC Pavlovskgranit for 2005-2007.

Table 11 - Results of turnover (return) indicators of obligations

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Information technologies used in the process of managing the financial activities of an enterprise

The reduction in the enterprise's short-term liabilities is associated with a decrease in accounts payable by 2,490 thousand rubles. to the level of 2008. Such a reduction indicates the competent work of the accounting department and timely payment of debts to suppliers.

An increase in the balance sheet currency indicates an increase in the production capabilities of the enterprise and deserves a positive assessment.

At the same time, despite the positive aspects, the enterprise has significant problems in its financial and economic activities.

In the structure of the organization's assets, the largest share is accounts receivable. An increase in accounts receivable indicates an increase in late payments from customers for delivered products, which is a negative point.

The availability of funds on the balance sheet of the enterprise at the end of 2010 decreased by 50 thousand rubles compared to the corresponding period in 2008.

At the analyzed enterprise, the ratio of income to expenses is slightly more than 1. So in 2008 the coefficient was 1.04, in 2009 -1.0, in 2010 - 1.05. This means that the financial and economic activities of NevSur LLC are not efficient enough.

The analysis of solvency on the balance sheet based on the liquidity characteristics of current assets for 2008-2010 showed that the company did not meet the basic conditions for the assets and liabilities of the balance sheet, i.e. the balance sheet is not absolutely liquid. Based on the analysis of the organization’s liquidity, we can conclude that NevSur LLC is in an unstable financial condition.

According to the above calculations of the formation of reserves and costs, it was established that NevSur LLC has a sufficient amount of its own working capital. By the end of 2010, they increased by 10,600 thousand rubles. In the absence of loans and credits, the enterprise is provided with sufficient amounts of its own working capital.

To improve the efficiency of managing the financial stability of NevSur LLC, the following measures can be proposed:

— monitor the ratio of receivables and payables;

— control the status of settlements on overdue debts;

— promptly identify unacceptable types of receivables and payables, which include overdue debts to suppliers, to the budget and others; goods shipped but not paid for on time;

— it is necessary to reduce the turnover period of accounts receivable, that is, more efficient use due to its rapid mobilization;

the company’s competitiveness should be increased by increasing the pace of product sales and market share to combat growing competitive pressure and attract additional investment;

To improve economic activity, it is necessary to modernize and re-equip production equipment.

As an effective measure to improve the quality of activities of NevSur LLC, it is proposed to analyze financial and economic activities on a regular basis. It is necessary to increase the efficiency of sales activities. To do this, you need your own website for the enterprise, where advertising will be placed for clients about the work performed and services provided.

The implementation of these proposals will significantly increase the profit received by the enterprise.

Applications

Analysis of the profit of the enterprise NevSur LLC for 2008-2010.

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3

general characteristics

Since the attracted third-party funds do not belong undividedly to the organization, one of the primary tasks of management is timely release from assumed duties. Use of funds is possible only for the period for which they are provided. Also, from the moment money is credited to the company’s accounts, it does not belong to it on a proprietary basis, being borrowed repayable turnover.

Raising funds from outside imposes certain obligations

The general characteristics of an enterprise’s liabilities include the presence of the following features:

1. The fulfillment of duties is guaranteed by the transfer of assets or the provision of services within the scheduled period.
2. The event giving rise to the debt has been completed.
3. The occurrence of the event itself is probable.
4. The subject making the claim is identifiable.
5. The occurrence of claims is recorded as a line in accounting and should be included in the balance sheet of the enterprise.
6. The accepted creditor is valued in cash or an equivalent.

The monetary encumbrance that has arisen against the enterprise must have signs of liquidity and be canceled on time. If the debtor ignores the criteria for existing obligations, lenders have the right to initiate their implementation through the court. In this case, creditors may demand compensation for damage caused by non-repayment. If even short-term liabilities have increased, this indicates that additional financial costs are possible to resolve relations with creditors. Duties may include the following units:

An example of the optimal ratio in the capital structure 2020:

Attention! To ensure a liquid balance, it is recommended not to exceed the borrowed share above 60%. Equal parity can lead to a “minus” indicator when calculating the final balance.

A decrease in inventories on the balance sheet indicates

Very often, balance sheet data indicates a decrease in the value of non-current assets. It should be remembered that they are formed mainly from depreciable property and the balance sheet shows its residual value (less depreciation). Therefore, for example, a decrease in the value of fixed assets may be due not only to the disposal of obsolete or unnecessary fixed assets, but also to the accrual of depreciation. 13 An increase in fixed assets indicates an expansion of the enterprise’s production base and is assessed positively if it is not related to the results of their revaluation (see Table 7). The presence of intangible assets in the organization’s property indirectly characterizes the strategy chosen by the organization as innovative, since the company invests in patents and other intellectual property.

Specifics of each type

Responsibilities arise as a result of the activities of the institution and have a legal basis for making transfers for goods or services. Their formation is promptly registered in the company's accounting. Then there is an adjustment of the registered debt amounts depending on the actions of the debtor. Depending on the duration of debt repayment, liability is usually classified as short-term or long-term liabilities.

The detailing of debt entries in accounting lies in the synchronization of the main accounting scheme:

The component of synthetic positions must be determined and brought into conformity with the chart of accounts of the Russian Federation. According to PBU, analytical lines are opened by the enterprise at its own discretion and may differ among institutions by fund. Balance sheet lines for public sector institutions are also generated separately.

Signs of short-term aspirations

This type of obligation is distinguished by its annual implementation limitation. The period may be based on the operating cycle indicator, but should not exceed 12 months.

The company's short-term liability adjusts the amount of assets required to complete a full turnover. An increase in short-term liabilities indicates that less money is needed by the organization to meet current needs.

These duties are expressed as a source of borrowed capital on a free basis. Their total volume depends on the activity of the enterprise. Powerful production translates into high sales, which increases costs. As a result, the total of future expenses and the likelihood of receiving funds increases.

With short-term liabilities, the amount of money borrowed is usually small

The analysis of short-term liabilities for the future is endowed with an evaluative characteristic. This is due to the fact that the amounts that form the basis of these debts are not realistic to calculate, since many parameters of the organization’s future activities cannot be determined in detail. The volume of short-term debts directly depends on the regularity and completeness of payments on them, which makes it possible to determine the level of sources and the possibility of using them in the company’s activities.

Repayment of obligations occurs at the expense of current finances, which are the resources of daily business activities. It is this factor that is decisive in the distribution of responsibility according to deadlines. In addition, such debts can be reissued as a cash equivalent and used before the end of the balance year. But it should be borne in mind that an increase in short-term liabilities indicates that there is a lack of financial stability of the enterprise.

In reporting, short-term service is broken down into items in sections called “Liabilities” and includes:

1. Operating expenses:

• dividends, debts on bills of exchange and returnable deposits (directly related to the structure of banks’ turnover);
• current creditor;
• rental payments;
• mandatory tax transfers;
• unearned assets.

It is important to follow all reporting rules when there are obligations

1. Non-defense asset:

• arrears that can be collected and repaid over a one-year period;
• part of the payable, long-term creditor;
• other expenses.

Attention! There are precedents for repaying liability, with a period of up to a year, at the expense of current revenues. If finances are involved in the planned activities of storage systems, in order to be able to use them to pay off debts, they should be accrued no later than a 12-month period from the date of formation.

A decrease in short-term liabilities indicates timely repayment of debts to creditors and the correct accounting strategy. Often these responsibilities include loans with long-term implementation, but required repayment at the reporting moment.

Signs of long-term obligations

This type of debt is characterized by a period of fulfillment of the taken creditor, lasting more than one year. The growth of the indicator is conventionally considered as a positive thing, since it is identified with equity capital. A decrease in long-term liabilities indicates a decrease in the company's stability, especially against the backdrop of an increase in short-term indicators.

This type of responsibilities may include:

1. Types of non-payments leading to losses in the business of storage systems.
2. Debts incurred during planned work, regardless of the reason for their occurrence:

• deferred tax payments;
• loans and advances;
• rent, paid no more than once a year (more often found in organizations that have state ownership status).

1. Guarantees that appear after the sale of long-term bonds.

One type of long-term liability can be a loan

Each type of responsibility is collected under a specific position number in the institution’s balance sheet, which facilitates a normal analysis of economic activity.

There are certain factors under which debt can be guaranteed to be considered long-term. These include:

• possibilities in which violations of the fulfillment of responsibility occur are excluded for 12 months;
• the creditor agrees not to demand the implementation of the agreements before the specified time, even if their terms are violated.

The coverage ratio for long-term claims is a calculated value and is determined by the formula as the ratio of the net increase in free assets to the amount of transfers on long-term loans. At the same time, the increase in assets is considered to be the organization’s profit without depreciation and tax deductions, and transfers on loans are considered the return of funds received and the payment of interest assigned on them.

For reference! If there is less than a year left before the debt is canceled at the reporting date, then its transfer to the category with a short period is possible. However, for this, the enterprise must have an appropriate accounting policy in place, and a certificate explaining the change in posting in accordance with IFRS must be attached to the balance sheet.

The volume of short-term liabilities of Smolensk Bistro OJSC has decreased many times over 2 years. A decrease in short-term liabilities (by 60%) was observed in 2013, and the increase in 2014 was 32% compared to 2013. Changes in 2014 are mainly due to an increase in accounts payable.

The accounts payable of the analyzed company increased, mainly due to an increase in debt to suppliers, as well as an increase in tax liabilities. The increase in accounts payable occurred against the backdrop of an increase in the company's reserves. Based on this, we can make a preliminary conclusion that most likely the purchased inventories were purchased with deferred payment and the payment deadline had not arrived at the time of reporting. For a more complete analysis, it is necessary to look at the change in the structure of obligations, that is, to calculate the creditor’s share and analyze turnover. That is, for more substantiated conclusions on the financial condition of the company, we need vertical analysis and ratio analysis.

Taking the aggregated balance sheet as a basis, you can calculate coefficients that will display financial indicators with which you can assess the financial stability of Smolensk Bistro OJSC.

As a result of the calculations, we can conclude: OJSC Smolensk Bistro has a fairly high probability of bankruptcy. The financial indicators calculated above correspond to this circumstance. Thus, such indicators of financial stability as: EC, ΔEN, indicate a lack of own funds, which contribute to the formation of inventories and costs in the enterprise. These indicators have a negative trend.

Table 2.3 - Analysis of financial indicators of OJSC "Smolensk Bistro" for 2012 - 2013, rub.

The autonomy coefficient (Ka) indicates the share of own funds in the total volume of all assets. The standard value of this indicator should be commensurate with the value of 0.5. At the enterprise OJSC Smolensk Bistro, the autonomy coefficient shows a lower value, especially for 2014, the value of the indicator is 0.279, which indicates a large amount of borrowed funds from the enterprise, namely, in 2014. accounts payable - 20901 rubles, and other short-term liabilities - 42705 rubles, long-term liabilities 306 rubles.

The ratio of borrowed funds to equity shows that OJSC Smolensk Bistro in 2012 attracted 1,241 rubles of borrowed funds per 1 ruble of its own funds, in 2013 - 1,437 rubles, and in 2014 - 2,576 rubles. The indicators indicate an increase in this ratio, indicating the growing instability of the enterprise over the years.

It is necessary to characterize the stability of the financial condition of OJSC “Smolensk Bistro” by calculating the coefficient of maneuverability of equity capital. The calculation of the agility coefficient showed the low financial stability of the enterprise, that OJSC Smolensk Bistro does not own its own available funds.

The ratio of the provision of inventories and costs with own funds for 2012 was 0.234, in 2013 - (-0.286), in 2014 - (-0.595). This indicates that such low-liquidity assets as inventories and costs are financed at Smolensk Bistro OJSC through borrowed funds. During the period under review, the indicator has a negative trend, increasing financial risk and dependence on creditors every year.

The criterion for assessing the solvency of an enterprise is three liquidity indicators.

The absolute liquidity ratio is of interest to suppliers and contractors, since the indicator determines the share of existing short-term liabilities that the company will be able to repay in the near future. For OJSC "Smolensk Bistro" the absolute liquidity ratio is for 2012 and 2013. - 0.025, and for 2014 - 0.136, which is below the permissible standard value of the indicator (0.2), which indicates the impossibility of short-term debt of the enterprise in the near future.

The current liquidity ratio shows the part of the company's current liabilities that can be repaid using more liquid assets in order to pay debtors on time. For OJSC "Smolensk Bistro" the current liquidity ratio in 2014 is 0.468, which is below the permissible standard value, although during the analyzed years the trend is positive (2012 - 0.323, and in 2013 - 0.333).

The calculated coverage ratio is also below the acceptable norm (2-2.5), in 2014 it was 0.823, which indicates the inability of the enterprise to pay its debt obligations without additional sales, but the figure increased compared to 2012 and 2013, which is a good sign .

Determine the effective use of all resources available at OJSC “Smolensk Bistro”, regardless of the sources of their formation. You can use the calculated coefficient. The indicator shows how many times a year the full cycle of production and circulation occurs, which brings income to the enterprise in the form of revenue. The calculations showed. That this figure for 2014 was 2.060, and for 2012 and 2013 the average was 2.906. Compared to previous years, in 2014 the indicator has decreased and does not reach the permissible norm (2.8-3.0).

The equity turnover ratio shows the rate of turnover of equity capital, and also determines the characteristic activity of funds at risk to the owners of the enterprise. For 2014, the indicator has a fairly high level of 7.825, but has decreased significantly compared to previous years (the average value for 2012 and 2013 is 9.528). The high level of turnover ratio at Smolensk Bistro OJSC indicates the efficient use of equity capital in the enterprise.

The debt capital turnover ratio shows the rate of turnover of capital that the company received in the form of a debt obligation, and also shows how many turnovers will be required to pay off the debt the company has. A positive trend can be seen at Smolensk Bistro OJSC, since in 2014 the figure was 5,910, compared to previous years (2012 - 10,534, and 2013 - 8,577).

You can determine how much profit an enterprise receives from one ruble of an asset, regardless of the sources of its formation, using the return on assets indicator. At Smolensk Bistro OJSC, the return on assets for 2014 is 0.054 and increased by 0.017 compared to 2012, but then decreased by 0.003 compared to 2013.

The high probability of bankruptcy at Smolensk Bistro OJSC can also be traced by studying the data in Form No. 2 of the financial statements, “Profit and Loss Statements” (Appendices B and D), given in Table 2.4.

Table 2.4 – Data from the profit and loss statements of OJSC “Smolensk Bistro” for 2012 – 2014, rubles

It is possible to describe the change in numerical indicators both in the structure and in the growth rate for each article of the presented forms, but this is not part of the tasks of the express analysis, so we will pay attention to the most interesting trends from our point of view.

So, let's draw some brief conclusions that are interesting from the point of view of express analysis.

As we can see, the revenue of the analyzed company in 2008 remained virtually unchanged compared to the previous year (98.8%), while the company’s net profit increased by 31.5% (12470/9486) - this is a good indicator, especially during the crisis. How did the company manage to achieve such results? As can be seen from the above calculations, compared to last year, the cost of goods sold (products) decreased by 4.6%, the share of cost in the revenue structure also decreased from 90.7% in 2007 to 87.6% in 2008.

This allowed the company to receive an additional 3.1 kopecks in 2008. (12.4-9.3) operating profit from each ruble of products sold (goods sold). However, not everything is so good. It should be noted that the company’s commercial and administrative expenses increased both in absolute terms (by 31.5%), and their share in the revenue structure increased from 6.3% to 8.8%, that is, every ruble of revenue entailed for an additional 2.5 (8.8-6.3) kopecks of management expenses. If this trend continues in the future, the company faces a sharp decline in efficiency.

Despite the fact that the company almost managed to maintain revenue at the 2007 level, short-term accounts receivable increased by 9.7%. This may indicate that in order to maintain revenue, the company had to change its credit policy towards increasing the number of days of deferment when paying for goods sold.

The stock of goods (finished products) increased by 4.4%, while there was an increase in the company's short-term liabilities. Based on this, we can conclude that the source of the increase in the company’s current assets was the company’s short-term liabilities.

Current (current) assets in their total exceeded current (short-term) liabilities by 14,390 thousand rubles. (682128-667738) in 2007 and by 27,730 thousand rubles. (722426-694696) in 2008, which clearly indicates the solvency of the company. However, not all so simple. As we can see, the company’s property includes such items as deferred expenses and value added tax on acquired assets. Moreover, the balances on these items are increasing.

Let's imagine a situation that at a certain period of time a company will urgently need to repay all its obligations to creditors, and it is forced to sell its current assets. Deferred expenses cannot be sold, this is not property, therefore, in my opinion, it seems quite reasonable not to take this article into account when determining the solvency of the company.

For 2014 net profit was received in the amount of 1294 thousand rubles, which has been growing over the three years under review, including profit from ordinary activities in the amount of 6709 thousand rubles. The increase in cost also remains (compared to 2013, the deviations amount to 2014 year 929 thousand rubles). Also, a small share is allocated to other income and expenses in the amount of 64 thousand rubles for 2014.

So, we can conclude that OJSC Smolensk Bistro. This is due to the insufficient amount of own funds in order to generate the necessary reserves and costs. During the period under review, the enterprise is forced to resort to borrowed funds (short-term accounts payable).

Conditions for the occurrence of each type

An important circumstance for the formation of liabilities of any type is their recognition. Only in this case do debts become part of the contractual terms. In the case of a trade or any industrial “creditor,” the claims are clearly identified and the essence of their recognition is clear. This type may be reflected by current debt with the emergence of a type of short sale.

Sometimes obligations arise without recognition by a party, but on the basis of laws

A considerable part of the responsibilities arises on the basis of concluded contracts, this includes assets purchased by the company, various services received, and responsibility for their provision on an advance payment. Often an organization accepts a duty in the form of guaranteed execution. And the recognition of these guarantees is expressed in the form of the emergence of obligations. This may mean defining the guarantee as a reserve. But when the recognition criteria are not met, they are recognized as conditional claims.

There is a form of emergence of duties imposed by law. The company's recognition of these claims occurs on the basis of notices and demands emanating from government agencies or on the basis of claims made by third parties.

A decrease in long-term liabilities indicates stabilization of the current activities of the enterprise and the ability to manage without the influence of lenders.

A decrease in short-term liabilities indicates that a competent manager is focused on reducing accumulated debts and is implementing it according to regulations. Also, timely payment affects the prestige of the institution and leads to improved business operations. Accounting is required to develop the composition and turnover of liabilities with an analysis of the criteria in dynamics, as this is important for maintaining the stability of the situation and minimizing critical situations.

The types of obligations will be discussed in the video:

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Accounts receivable

Let's figure out what it is, which is indicated by the increase in accounts receivable on the balance sheet in the reporting period.

The money you are owed is usually recorded in one account called accounts receivable . This is the balance of money you have earned that your customers have not yet paid.

Classified into two types:

• long-term;
• short-term.

Long-term debts have a significantly longer maturity than short-term debts, and they are generally accounted for and shown on the balance sheet as long-term assets. While short-term receivables have a very short duration and hence they are usually listed in the current assets of the company

Increase in the company's receivables

What could be the reasons for the increase in accounts receivable? For example, customers do not pay for products you supply on time, or company employees do not return travel advances on time. Everything that an enterprise does not receive on time on promissory notes contributes to its growth .

In turn, an increase in accounts receivable indicates that at your enterprise, the contract for the supply of goods and servants to customers was not drawn up in favor of the company. Buyers pay for the supplied goods late, or even do not pay at all. The risk of enterprise insolvency increases.

An increase in accounts receivable leads to the diversion of working capital from the company's turnover and an increase in accounts payable. Which negatively affects the solvency of the enterprise.

The financial condition of your company will deteriorate significantly. This will negatively affect the positive assessment of your business by both lending institutions and investors.

In turn, a decrease in accounts receivable on the balance sheet indicates that the flow of cash to your company is increasing. Lenders will be confident in your solvency, and potential investors will see your company as a solid company to invest money in

How to choose sources of repayment of short-term obligations during a crisis

When choosing sources for repaying current obligations, it is important to take into account all possible risks, including the threat of a drop in the level of financial stability of the company. That is why, in a crisis, it is better to immediately exclude the option of attracting new loans and borrowings from the list. In practice, the choice of this method of financing often becomes the reason for the insolvency (bankruptcy) of the enterprise.

We will have to limit ourselves to the company’s internal resources. To begin with, it is worth conducting a complete inventory of all property (for more details, see How to regulate inventory in a company). From the resulting inventory of assets, select assets that can be sold without the risk of complete cessation or suspension of the main activity. This will free up money to pay off debts and save money at the same time.

In addition, it is necessary to determine the feasibility of using buildings, structures, and land plots on the company’s balance sheet. Real estate objects that are not involved in the main activities of the enterprise (or objects whose disposal will not lead to a stop in production) should be sold or rented out. It is worth noting that cash proceeds from the sale of non-core assets, as well as facilities involved in non-profitable production (closed in accordance with the anti-crisis plan), can be used to pay off short-term obligations only after payment of salary debts.

The issue of selling unfinished construction projects deserves special attention (for more information on when this is justified, see What is more profitable: completing construction or selling an unfinished project). It would also be useful to consider the possibility of prompt collection or sale of receivables, and use the proceeds to pay for loans and credits (for more information, see How to collect overdue receivables without court and How to negotiate the return of receivables). A significant amount can be obtained from the sale of excess inventories identified during the inventory. By the way, if you have short-term financial investments, you should cash them out in a crisis.

What does an increase in current assets show?

What current assets are made up of and what share each type accounts for can be seen in Section II of the enterprise’s balance sheet. It is necessary to analyze the structure of working capital by their groups and in dynamics, comparing the data with the readings of previous reporting periods and taking into account the specifics of the enterprise’s commercial activities.

Let's consider the most likely changes in the amount of each element of working capital.

• 1. The increase in materials and raw materials intended for production can indicate:
• or about increasing production, which is a positive factor;
• or the accumulation of excess inventories, which leads to a decrease in asset turnover and should be considered as a negative phenomenon.

2. A constant increase in the volume of finished products may indicate unsatisfactory performance of the sales department, a decrease in demand for products, and incorrect pricing policies. “Locked” funds in unsaleable inventories of products is a sure way to reduce the solvency of the enterprise and its dependence on attracting money from outside. This indicator is an alarming signal for management and requires timely decisions.

3. An increase in accounts receivable in general may also indicate positive dynamics - for example, an enterprise has developed an effective scheme for selling its goods on credit. For analysis, receivables should be differentiated:

• to “normal” - current, which is determined by the nature of the enterprise’s work; its growth may be associated with an increase in sales volumes, which is a positive trend;
• doubtful - overdue, which indicates an increase in unpaid debts of buyers. In the presence of a growing volume of doubtful debts, it is necessary to review sales and credit policies for buyers and pay attention to working with bad debts. The result of a large number of debts for which there is no payment is the same as when warehouses are overstocked. The company does not receive enough of its own funds to finance its further activities.

4. An increase in the volume of financial investments made by an enterprise can also be interpreted in two ways:

• on the one hand, this fact may indicate that the company has a large amount of free cash that can be invested for growth;
• on the other hand, excessive enthusiasm for financial investments can lead to the diversion of funds from core activities and insufficient activity of the enterprise in these activities.

An increase in current assets and their share in the property of an enterprise is, in general, a positive phenomenon, but it should not become a reason for a decrease in the turnover of funds and the solvency of the organization, as well as a factor in reducing business activity.

Can a gratuitous contribution increase the current assets of an enterprise? The answer to this question is in ConsultantPlus. If you don't have access to the system, get a free trial online.

Read more about current assets in the article: “Current assets of an enterprise and their indicators (analysis).”

How to achieve a review of financing conditions for attracted short-term loans and borrowings

In a crisis, the share of short-term loans can be reduced by replacing them with long-term ones (that is, by transferring from the fifth section of the balance sheet to the fourth). To do this, it is necessary to negotiate debt restructuring, for example, to make changes to existing credit agreements and loan agreements.

This effectively means that the CFO will have to slightly increase the total amount of debt, but also reschedule the loans and lower the monthly payments.

As a result, the amounts of liabilities in the balance sheet liabilities will be redistributed, the share of short-term borrowed liabilities will decrease due to an increase in long-term ones (for more details, see How to evaluate changes in the structure of the balance sheet liabilities).

Formula. Calculation of the share of overdue accounts payable in liabilities

This solution will reduce the current expenses of the enterprise, as well as neutralize the risk that one of the creditor banks will file an application to declare the enterprise bankrupt, especially if the share of overdue accounts payable grows (how to prevent this, see How to conduct a rapid assessment of the likelihood of bankruptcy ).

Prepared based on materials from the FSS “System Financial Director”

Guidelines for company financial management

• The main thing in the work of a CFO in 2020

Financial resources | what does your balance sheet say?

Whatever happens to your company’s property, the reasons for what is happening must be sought in how the structure of financial resources changes. And before you begin a long and detailed analysis of all kinds of statements, you should first look at the liability side of the balance sheet. It reflects the characteristics of all borrowed and own financial resources.

Analysis of liabilities allows us to identify the dynamics of individual sources of financial resources, both in value and in share in the overall structure of liabilities.

Also read Which button should you press to increase profits and 7 groups of main financial indicators.

Data for financial resource analysis should look like this:

To determine changes in the structure of financial resources in absolute values, you need to find the difference between the results at the end and at the beginning of the period.

To calculate percentage changes, find the ratio of the resulting difference to the results at the beginning of the period.

That is, for example, the dynamics of growth of financial resources is calculated as follows: 5940 / 27,370 * 100% = 21.7%.

In addition to directly assessing the structure of financial resources, such an analysis allows you to quickly make some additional calculations:

• Property values ​​increased by 22.1%. This occurred as a result of an increase in the company’s financial resources by 21.7%, and borrowed resources by 23.4%. Due to the fact that the rate of increase in borrowed funds is slightly higher than that of own funds, the share of the latter in the total volume decreased - however, quite insignificantly, by only 0.3%.
• The sources of financial resources this year consist of 73.3% (5940 / 8100 * 100%) from own funds and 26.7% from borrowed funds.
• The volume of borrowed funds increased in all positions. At the same time, the most significant growth occurred in long-term loans, now their share in total liabilities is 21.1% (2400 / 11,390 * 100%) - this is 4.8% more than at the beginning of the year. The share of short-term loans also increased - by 2.7%; now it is 34.1%.

In the above example, the main source of borrowed financial resources is accounts payable, so it would be useful to study its composition separately.

It is also worth paying attention to the fact that accounts payable changed less than own financial resources.

In the case of enterprises engaged in the manufacture or sale of any product, such a ratio may indicate that the increase in equity capital is not associated with an increase in sales or production.

Such changes in the structure of financial resources, however, in themselves do not indicate either a worsening or an improvement in the situation - their significance depends entirely on the goals of the company’s financial activities.

In addition to studying the dynamics, based on the balance sheet liabilities, one can draw conclusions about the sustainability of the enterprise - for this, several coefficients are used that characterize the structure of financial resources.

The capitalization ratio shows the ratio of a company's borrowed and own financial resources. It is calculated as follows:

Capitalization Ratio = Debt / Equity

For the company from the example, it is equal to 11,390 / 33,310 = 0.34, that is, for 1 ruble of own funds there are 0.34 borrowed funds.

This value of the capitalization ratio indicates that the main share of capital consists of own financial resources. On the one hand, this indicates a high degree of stability, and on the other hand, it indicates that the company may miss out on significant profits by refusing to borrow.

However, the value of this indicator in itself does not allow us to assess the financial efficiency of the enterprise; in this case, the standards strongly depend on the industry and the stage of business development.

How to increase your own working capital

How to increase the current assets of an enterprise? Before talking about possible ways to increase the volume of this indicator, it is necessary to carry out a number of analytical activities to assess the financial activity of the company. First of all, it is necessary to determine the indicator of the provision of working capital funds in relation to the organization, and also to form a model for more economical use of inventories and other material resources.

One of the ways to increase current assets is to accelerate the turnover of mobile assets, which comes down to reducing the period of presence of working capital in each production cycle.

To achieve these goals, the constant development and implementation of special analytical measures will be required, which will reduce the time spent by working capital in transit, in warehouses and other storage areas and use available resources with maximum efficiency.

Any change in the volume of working capital, both positive and negative, is an indicator reflecting changes that have occurred in the financial condition of the organization. A more complete assessment will require a wide range of analytical activities.

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