Analysis of the financial condition of the enterprise is a necessary procedure to maintain the financial security of the enterprise

Date:

2020-07-03 03:29:06

Views:

652

Rating:

1Like 0Dislike

Share:

Table of contents:

     conducted qualitative analysis of the financial and economic aspects of functioning of an enterprise helps to make assessment of the work done and correctly predict the changes to get the most profit. For this procedure, as the analysis of the financial condition of the company involved in financial management of the enterprise or,more objectively, is hired by a qualified specialist in the relevant company. In order to analyze the financial condition of the company underwent a financial Manager need to use all accounting and statistical reporting of the enterprise in the current and prior periods.

     In the analysis it is important to consider the absolute profit, relative profit performance, financial stability and liquidity of the balance sheet, the efficiency of use of capital raised (if any). Deep analysis of financial and economic activity of the enterprise takes place in several stages. First made reading available reports, and then conducted a deeper professional types   analytical work, they include vertical method  analysis  method of analysis of the trend and, finally, the calculate  the so-called financial ratio dimension. During the reading of the statements we study the performance of the enterprise, is the analysis of the financial condition of the company, financial status, use of long-term and short-term investments, sources of capital of the company, communication with customers and suppliers, financial and credit enterprises is the assessment of income and profits of the current year. Horizontal analysis of the financial condition of the enterprise reflects the trend of changes article part  reporting compared to the previous quarter, a half, a month. The vertical analysis  is the evaluation of specific weight of separate articles of the indicators, for example, receivables in the total activity. Conduct trend analysis allows you to identify the main ways of development of the enterprise in terms of reporting. More accurate financial analysis is obtained by comparing figures for several years.

Recommended

Staff evaluation: system and methods

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

business activities. its essence and basic functions

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

     Special value for the financial Manager are financial ratios, which are the basis for the analysis of activity of the enterprise. Financial ratios show the proportions and rely on a certain data base: common standards, the average performance in a particular industry, the performance of enterprises in previous years, data on the activities of other businesses, other performance indicators of the company. The calculations for the coefficients is not straightforward, but give the opportunity to make more accurate conclusions and make more workable and optimally the likely prognosis, identify the weak points in the enterprise. Conducted by qualified managers analysis of financial and economic activity of the enterprise – is not only a document for the head, which is based on the results to evaluate the performance of the company and to outline measures for its improvement. Such a document could be drawn up for external users – banks, on the basis of his performance make a decision on issuance of credit, stock market participants, determining the value of the shares or investors making the decision on expediency of investments.

     the Manager conducting the analysis must have skills and experience in this kind of activity, as it is responsible to the head of the company for the proposed recommendations for improvement, the accuracy of the data that constitute the “financial image” enterprise.


Article in other languages:

HI: https://www.tostpost.com/hi/business/24617-analysis-of-the-financial-condition-of-the-enterprise-is-a-necessary-p.html

PL: https://www.tostpost.com/pl/biznes/43065-analiza-kondycji-finansowej-przedsi-biorstwa---niezb-dna-procedura-w-c.html

ZH: https://www.tostpost.com/zh/business/34287-analysis-of-the-financial-condition-of-the-enterprise-is-a-necessary-p.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

Comments (0)

This article has no comment, be the first!

Add comment

Related News

Planning as function of management in the modern enterprise

Planning as function of management in the modern enterprise

     the Planning function of management is the determination of the various problems of functioning and development of the enterprise and ways to achieve them. Any organization planning required because we are...

Management as an activity in the structure of the modern enterprise

Management as an activity in the structure of the modern enterprise

     human Activity is a complex and multifaceted is the basis of its existence. The majority of work activities will require involvement in the work effort of individual workers and labor groups. The process o...

Factors of economic growth

Factors of economic growth

In the economy of any enterprise is never downtime. Moreover, it is in his power constantly influences the dynamic changes, however, they can be both positive and negative. To always keep the situation under control, it is necessa...

Coordination as a management function in management

Coordination as a management function in management

the Conventional notion of management suggests that it represents a process for planning and making various Executive decisions and monitoring their implementation. However, there is another side of the management, it not infreque...

The types of business communication

The types of business communication

 networking is a type of communication whose purpose is the interchange of information between existing or potential partners. During business communication solved important questions are set and achieved goals, acquired the ...

Methods of public debt management

Methods of public debt management

 Issues relating to public debt management are among the main economic policy of Russia. And this is due to the fact that in recent years there has been a  increase in public debt and expenses to repay him. Hence, the ma...