3. Unstable financial condition.

Determined by the conditions:

Three-dimensional indicator =(0; 0; l).

The unstable financial situation is characterized by a violation of solvency: the company is forced to attract additional sources to cover reserves and costs, there is a decrease in the profitability of production. However, there is still room for improvement.

Table 2.6

Types of financial stability

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

4. Crisis (critical) financial condition.

Determined by the conditions:

Three-dimensional indicator =(0; 0; 0).

A financial crisis is the brink of bankruptcy: the presence of overdue accounts payable and receivables and the inability to repay them on time. In a market economy, with repeated repetition of such a situation, the enterprise is threatened with declaring bankruptcy.

Table 2.7

Analysis of the financial stability of the enterprise

	Index	At the beginning of the period	At the end of the period	Absolute deviation	Growth rate, %
1	Sources of own funds	16704	16828	124	100,74
2	Non-current assets (F)	13595	13965	370	102,72
3	Own working capital (E C)	3109	2863	-246	92,09
4	Long-term loans and borrowings (K T)	-	-	-	-
5	Availability of own working capital and long-term borrowed sources for the formation of reserves and costs (E T)	3109	2863	-246	92,09
6	Short-term credits and loans	5493	5296	-197	96,41
7	The total value of the main sources of formation of reserves and costs (E Σ)	8602	8159	-443	94,85
8	Inventory and Cost Value (Z)	5398	4246	-1152	78,66
9	Surplus (shortage) of own working capital for the formation of stocks and costs (± Е С)	3109	2863			-246			92,09
Coefficient			Back to top	At the end of the period		Absolute deviation	Growth rate
10. Autonomy (To a)	>0,5		0,75	0,76		0,01	101,07
11. Ratio of borrowed and own funds (K C / C)	<0,7		0,33	0,31		-0,02	95,70
12. Security with own funds (TO)			0,42	0,41		-0,01	97,98
13. Maneuverability (K M)			0,19	0,17		-0,02	91,41
14. Ratios of mobile immobilized means (K M/I)	-		0,54	0,50		-0,04	91,49
15. Industrial property (To P.IM) [(6+8):1]			0,86	0,82		-0,04	96,20
16. Forecast of bankruptcy (K PB)	-		0,08	0,07		-0,01	87,13

Assessment of liquidity and solvency of the enterprise. In conditions of mass insolvency and the application of bankruptcy procedures (declaration of insolvency) to many enterprises, an objective and accurate assessment of the financial and economic state is of paramount importance. The main criterion for such an assessment is the indicators of solvency and the degree of liquidity of the enterprise.

The solvency of an enterprise is determined by its ability and ability to timely and fully fulfill payment obligations arising from trade, credit and other transactions of a monetary nature. Solvency affects the forms and conditions of commercial transactions, including the possibility of obtaining a loan.

The liquidity of an enterprise is determined by the presence of liquid assets, which include cash, cash in bank accounts and easily realizable elements of working capital. Liquidity reflects the ability of the enterprise to make the necessary expenses at any time.

Liquidity and solvency as economic categories are not identical, but in practice they are closely interconnected.

The liquidity of the company reflects the solvency of debt obligations. The inability of the enterprise to repay its debt obligations to creditors and the budget leads it to bankruptcy. The grounds for declaring an enterprise bankrupt are not only its failure to fulfill its obligations to the budget for several months, but also the failure to fulfill the requirements of legal entities and individuals that have financial or property claims against it.

Improving the solvency of the enterprise is inextricably linked with the policy of working capital management, which is aimed at minimizing financial obligations. Profit is a long-term goal, but in the short term, even a profitable business can fail due to lack of cash.

The following basic techniques can be used to assess solvency and liquidity (Fig. 6):

Rice. 6. Methods for assessing solvency

and liquidity of the enterprise

When analyzing the liquidity of the balance sheet, a comparison is made of assets, grouped by their degree of liquidity, with liabilities for liabilities, grouped by their maturity. The calculation and analysis of liquidity ratios makes it possible to identify the degree of provision of current liabilities with liquid funds.

Estimation of balance liquidity. The main task of assessing the liquidity of the balance sheet is to determine the amount of coverage of the company's obligations by its assets, the period of transformation of which into cash (liquidity) corresponds to the maturity of the obligations (urgency of return).

For analysis, the assets and liabilities of the balance sheet are grouped (Fig. 6) according to the following criteria:

By the degree of decreasing liquidity (asset);

By the degree of urgency of payment (repayment) (passive).

Assets, depending on the rate of conversion into cash (liquidity), are divided into the following groups:

Al - the most liquid assets. These include corporate cash and short-term financial investments (p. 260 + p. 250).

A2 - fast-moving assets. Accounts receivable and other assets (line 240 + line 270).

A3 - slow-moving assets. These include articles from II balance "Current assets" (p. 210 + p. 220 - p. 217) and the article "Long-term financial investments" from section. I balance sheet "Non-current assets" (p. 140).

A4 - hard-to-sell assets. These are the articles. I balance sheet "Non-current assets" (p. 110 + p. 120 - p. 140).

Liabilities are grouped according to the degree of urgency of their return:

P1 - the most short-term liabilities. These include the items “Accounts payable” and “Other short-term liabilities” (line 620 + line 670).

P2 - short-term liabilities. Articles "Borrowed funds" and other articles of Sec. VI balance "Short-term liabilities" (line 610 + line 630 + line 640 + line 650 + line 660).

PZ - long-term liabilities. Long-term loans and borrowings (line 510 + line 520).

P4 - permanent liabilities. Articles sec. I balance sheet "Capital and reserves" (p. 490 - p. 217).

When determining the liquidity of the balance sheet, the asset and liability groups are compared with each other (Fig. 7).

Absolute balance liquidity conditions:

A necessary condition for the absolute liquidity of the balance sheet is the fulfillment of the first three inequalities. The fourth inequality is of the so-called balancing nature: its implementation indicates that the enterprise has its own working capital (EC = AND C - F). If any of the inequalities has a sign opposite to that fixed in the optimal variant, then the liquidity of the balance differs from the absolute one.

Comparison

high high

Degree Degree

Liquidity urgency

Low Low

Rice. 7. Grouping of asset and liability items for liquidity analysis

Theoretically, the lack of funds in one group of assets is compensated by the surplus in another, but in practice, less liquid funds cannot replace more liquid ones.

Comparison of A1-P1 and A2-P2 allows you to identify the current liquidity of the enterprise, which indicates solvency (insolvency) in the near future. The A3-PZ comparison reflects prospective liquidity. Based on it, a long-term estimated solvency is predicted.

Analysis of the liquidity of the balance sheet is carried out using the analytical table. 10, according to which it can be concluded that the balance sheet of the enterprise does not meet all the criteria for absolute liquidity. At the beginning and end of the year, the enterprise fully covers its obligations only for short-term and long-term liabilities, t.to. they are equal to zero. The most urgent and permanent liabilities are not covered either at the beginning of the year or at the end.

When studying the balance, one should pay attention to one very important indicator - net working capital, or net working capital. This is an absolute indicator, which can also be used to assess the liquidity of the enterprise.

Net working capital is equal to the difference between the results of Sec. II balance "Current assets" and section. VI balance "Short-term liabilities".

Table 2.10

Balance liquidity analysis

Assets	For the beginning of the year	At the end of the year	Passive	At the beginning of the year	At the end of the year	Payment surplus (+) / deficiency (-)		Liabilities coverage percentage
						For the beginning of the year	At the end of the year	For the beginning of the year	At the end of the year
Most liquid assets, А1	318	148	The most urgent liabilities, P1	5493	5296	-5175	-5148	5,79	2,79
Marketable assets, A2	1647	2526	Short-term liabilities, P2	-	-	+1647	+2526	-	-
Slow-moving assets, A3	7231	5485	Long-term liabilities, P3	-	-	+7231	+5485	-	-
Hard-to-realize assets, А4	13001	13965	Permanent liabilities, P4	16704	16828	-3703	-2863	5,79	82,99
Balance	22197	22124	Balance	22197	22124	-	-	-	-

The change in the level of liquidity is determined by the change (dynamics) of the absolute indicator of net working capital. It is the amount remaining after the repayment of all short-term liabilities. Therefore, the growth of this indicator is an increase in the level of liquidity of the enterprise.

At the analyzed enterprise, short-term liabilities are fully covered by working capital (Table 2.11). But during the reporting period, the value of net working capital decreased by 13.16%, therefore, the level of liquidity and solvency of the enterprise decreased.

Table 2.11

Calculation of net working capital thousand rubles.

Indicators	For the beginning of the year	At the end of the year
1. Current assets	7363	6920
2. Short-term liabilities	5493	5296
3. Net working capital	+1870	+1624

Assessment of relative indicators of liquidity and solvency. For a qualitative assessment of the solvency and liquidity of an enterprise, in addition to analyzing the liquidity of the balance sheet, it is necessary to calculate liquidity ratios (Table 2.12).

The purpose of the calculation is to evaluate the ratio of existing assets, both intended for direct sale and those involved in the technological process, with a view to their subsequent sale and reimbursement of invested funds and existing liabilities that must be repaid by the enterprise in the coming period.

The calculation is based on the fact that the types of working capital have different degrees of liquidity: cash is absolutely liquid, then, in descending order of liquidity, short-term financial investments, receivables, stocks and costs follow. Therefore, to assess the solvency and liquidity of the enterprise, indicators are used that differ depending on the order in which they are included in the calculation of liquid funds considered as covering short-term liabilities.

The main advantage of indicators - simplicity and clarity - can turn into a significant drawback - inaccuracy of conclusions. Therefore, one should carefully approach the assessment of the solvency of the enterprise by this method.

Thus, the analysis of liquidity ratios shows (Table 13) that the company is in an unstable financial position. The coefficients characterize low solvency and liquidity, only the current liquidity ratio corresponds to the optimal value - working capital is enough to cover its short-term obligations.

Attention should be paid to the low ratios of urgent and absolute liquidity. This indicates a large receivables and a decrease in the solvency of the enterprise.

Table 2.12

financial ratios,

used to assess the liquidity of an enterprise

Coefficient	What shows	How is it calculated	A comment
1. Coefficient of current liquidity (coverage)	The sufficiency of working capital of the enterprise, which can be used by him to pay off his short-term obligations. Characterizes the margin of safety arising from the excess of liquid assets over existing liabilities	The ratio of current assets (current assets) to current liabilities (short-term liabilities)	The lower limit indicates that working capital should be sufficient to cover its short-term liabilities. The excess of current assets over short-term liabilities by more than two times is considered undesirable, since this indicates an irrational investment of one's funds and their inefficient use
2. Coefficient of critical (urgent) liquidity	Forecasted payment capabilities of the enterprise subject to timely settlements with debtors	The ratio of cash and short-term financial investments plus the amount of mobile funds in settlements with debtors to current liabilities	A low value indicates the need for constant work with debtors in order to ensure the possibility of converting the most liquid part of working capital into cash for settlements
3. Coefficient of absolute liquidity	What part of the short-term debt the company can repay in the near future. Characterizes the solvency of the enterprise on the date of the balance sheet	The ratio of cash and short-term financial investments to current liabilities	A low value indicates a decrease in the solvency of the enterprise

Table 2.13

Calculation and analysis of liquidity ratios thousand rubles.

Index	At the beginning of the period		At the end of the period		Change
1. Cash	318		148		-170
2. Short-term financial investments	-		-		-
3. Total cash and short-term investments, (D)	318		148		-170
4. Accounts receivable	1647		2526		879
5. Other current assets	-		-		-
6. Total receivables and other assets, (r a)	1647		2526		879
7. Total cash, financial investments and receivables, (D+r a)	1965		2674		709
8. Inventories and costs (excluding prepaid expenses), (Z)	5398		4246		-1152
9. Total working capital, (R a)	7363		6920		-443
10. Short-term liabilities	5493		5296		-197
Coefficient		Interval of optimal values		Back to top		At the end of the period	Change
11. Coatings (K P)				1,34		1,31	-0,03
12. Critical liquidity (K CL)				0,36		0,50	0,15
13. Absolute liquidity (K AL)				0,06		0,03	-0,03

2.3. Evaluation of analysis and business activity. The business activity of an enterprise can be represented as a system of qualitative and quantitative criteria.

Qualitative criteria are the breadth of sales markets (internal and external), the reputation of the enterprise, competitiveness, the presence of stable suppliers and consumers, etc. Such non-formalized criteria must be compared with the criteria of other enterprises similar in terms of capital investment.

Quantitative criteria for business activity are determined by absolute and relative indicators. Among the absolute indicators, one should single out the volume of sales of manufactured products (works, services), profit, the amount of advanced capital (enterprise assets). It is advisable to take into account the comparative dynamics of these indicators. Optimal ratio

T P > T B > T AK > 100%,

where: T P - the rate of change in profit;

T B - the rate of change in revenue from product sales

(works, services);

T AK - the rate of change of assets (property) of the enterprise.

The above ratio is called the "golden rule of the enterprise's economy": profits should grow at a higher rate than the volume of sales and property of the enterprise. This means the following: the costs of production and distribution should be reduced, and the resources of the enterprise should be used more efficiently. However, in practice, even a consistently profitable enterprise in some cases may deviate from this ratio. The reasons can be different: large investments, development of new technologies, reorganization of the management and production structure (strategic changes, organizational development), modernization and reconstruction, etc. These activities are often caused by the influence of the external environment (external environment) and require significant financial investments that will pay off. and bring benefits in the future.

Relative indicators of business activity characterize the level of efficiency in the use of resources (material, labor and financial). The proposed system of indicators of business activity (Table 2.14) is based on the data of the accounting (financial) statements of enterprises. This circumstance allows, according to the calculation of indicators, to control changes in the financial condition of the enterprise.

For the calculation, absolute total data for the reporting period on revenue, profit, etc. are used. But the balance indicators are calculated at the beginning and end of the period, i.e. are of a one-time nature. This introduces some ambiguity into the interpretation of the calculation data. Therefore, when calculating the coefficients, indicators calculated for the average values ​​of balance sheet items are used. You can also use balance sheet data at the end of the year.

An example of calculating business activity indicators is given in Table. 2.15.

Symbols (Tables 2.14 and 2.15):

F СР - the average cost of non-current assets for the period;

In SR - the average balance total for the period;

The average value of current assets for the period;

Z СР - the average value of stocks and costs for the period;

Average accounts receivable for the period;

Average accounts payable for the period;

Average value of own capital for the period

reserves.

Table 2.14

System of indicators of business activity of the enterprise

Index

Calculation formula

Financial stability is another criterion that determines the degree of success of the company, its solvency and solvency. However, there is a difference between the concepts of sustainability and the already indicated solvency. Sustainability refers to the correspondence of funding sources to the structure of income, and solvency is an analysis of short-term liabilities and current assets. To define Fin. the sustainability of the enterprise, you need to understand where the company receives money from and how income correlates with assets.

The economic sustainability of a particular organization is considered a macro indicator, with the help of which an entrepreneur learns about the current state of affairs in a business project. Indicators of financial stability are determined with a small frequency and allow you to draw up the right strategy for economic development for the future.

If you are interested and want to know how the financial stability indicator is calculated, what it gives and how to use the data correctly, read our analytical material.

Financial stability of the enterprise: what is it?

The financial stability of the organization is an indicator of the stability of the enterprise. How exactly is stability ensured? With the help of a significant (sufficient) share of its capital as a source of financing.

A sustainable enterprise is an economic entity that uses borrowed funds within reasonable limits, that is, it borrows only what it can return. For the simplest understanding, sustainability can be compared to the solvency of an ordinary individual. If a Russian borrows an amount greater than he is able to repay, further bankruptcy is not ruled out. So it is with legal entities. Stability is determined by the stability of a particular enterprise.

The type of financial stability directly depends on how short-term liabilities exceed or do not exceed the value of liquid assets. Liquid assets are understood only as current ones - that is, those that can be quickly turned into money and not feel a loss in value.

Liquid assets are inventories and work in progress. If the entrepreneur decides to turn them into money, then the activity of the enterprise will not suffer. Liquid assets are also understood as receivables, the transformation of which into a cash equivalent is considered a natural process.

The indicator of economic and financial stability makes it possible to reasonably analyze the position of the company and predict how it will develop further.

Briefly recalling what is meant by current assets, let's return to the indicator of the stability of the organization. It was said above that the financial stability ratio is calculated on the basis of the ratio of assets and liabilities. If, after deducting liabilities, zero remains, then the company cannot be called successful, moreover, it is threatened with bankruptcy or partial insolvency. After all, a zero coefficient literally means that after the repayment of short-term liabilities, the company will have no assets.

The financial stability ratio can even be negative. Such indicators indicate that it is time to sound the alarm, otherwise bankruptcy will appear on the horizon. And finally, if the coefficient turned out to be positive, carefully analyze its value. After all, short-term liabilities for that and short-term - change rapidly. If the ratio shows a very small difference between assets and liabilities, it may be necessary to postpone further loans and borrowing so as not to find yourself in a difficult situation.

Types of financial stability

The modern economy provides many opportunities to understand what is happening with the enterprise. Therefore, it is not surprising that such an important tool as the calculation of sustainability includes several parameters (without formulas) indicating the state of affairs in the enterprise. Let's talk about each of them!

Absolute stability

When it comes to the absolute stability of a financial enterprise, one should not even talk about the calculation formula, but about the results of this operation. Absolute financial stability is a situation where all the company's reserves are covered by its own working capital.

In other words, when the company has no loans at all, debts to suppliers, and so on. Such a company does not depend on external funds, it is self-sufficient and independent. It is worth noting that absolute stability, although all businessmen strive for it, is very rare. The era of cheap, profitable loans has affected entrepreneurship in general. Free money is often seen as an opportunity today to expand production, enter a new market, increase productivity, and so on.

Normal financial stability of the enterprise

If an enterprise uses not only working capital, but also long-term borrowed funds, we can talk about normal stability. Nothing threatens such an enterprise, it is stable and has its own capital. And borrowed funds, as we mentioned above, are really used for development, and not for maintaining life and repaying other payments on obligations.

Sound financial stability is what all entrepreneurs should strive for. This is the same balance that allows you to be afloat and use the funds raised. Mathematically normal stability indicators can be shown by the following inequality: the sum of reserves and costs< оборотные средства + долгосрочные пассивы (сумма запасов и затрат меньше оборотных средств и пассивов).

Precarious financial situation

If working capital and liabilities of a long-term nature are smaller than the totality of inventories, costs, working capital, long-term liabilities and short-term loans, then it is worth talking about an unstable situation.

Economists argue that certain markers testify to the unsustainable nature of activity. For example, a violation of solvency (replenishment of sources of own funds, reduction of accounts receivable, acceleration of inventory turnover and some other negative trends).

The stability coefficient, in this case, has a negative value.

Consequences of precarious position

The indicators calculated according to the model indicate the position of the company in the market and how soon it will face trouble. Instability is characterized by consequences. Among them are delays in wages, the use of free funds from reserve funds for other than their intended purpose, interruptions in the flow of money to settlement accounts, unstable profitability, and failure to fulfill the financial plan.

In a word, very soon an unstable enterprise may cease to be a reliable partner for both its own employees and contractors.

Crisis type of economic and financial stability

The financial crisis is a wake-up call for the company. This means that it is literally on the verge of bankruptcy. Securities, receivables and own current assets no longer cover credit debt, moreover, there are overdue courts for which there is already a delay. Mathematically, the crisis state can be reflected as follows: the total of working capital, liabilities and short-term loans of the amount< запасов и затрат.

What to do if the formula showed crisis financial stability?

The type of economic and financial stability of the crisis plan suggests that urgent action must be taken to save the situation. It is necessary to start negotiations with creditors, to attract all possible funds to pay off delays, and possibly decide to increase the authorized capital.

The main thing not to do is to wait for the situation to develop on its own. Financial stability is a sensitive indicator, and this parameter really shows the true state of affairs in the enterprise.

If you get a negative coefficient, you will run into difficulties very soon. But you can take advantage of the advantage that you have - knowing about the current state of affairs in advance.

Results

Now you know what financial stability is. To calculate it, we need only two main parameters - the value of our own assets and liabilities to counterparties, creditors. Obviously, the indicator will be considered normal if the volume of assets more than covers liabilities. A different situation threatens with significant troubles, for example, bankruptcy. To correctly determine the indicator of stability, entrepreneurs often involve professional economists.

There are several types of stability: absolute (the company does not raise funds at all with the help of loans and borrowings, it fully covers its needs with its own funds), normal (there are loans and credits, but their value is not critical, and own assets allow you to return money in a timely manner), unstable (there is less money than needed, so the company is unstable, delays or delays in wages may occur) and crisis (bankruptcy).

Conduct a sustainability assessment at least once a year to prevent problems and promptly respond to rate declines.

Financial stability is the most important indicator that reflects the degree of financial independence of the company, as well as solvency. There are various types of it, giving an idea of ​​the state of the enterprise: from absolutely stable to crisis.

Basic concepts

When determining financial stability, the following terms are used:

• degree of independence. You can find it by establishing the ratio of different items of asset and liability recorded in the balance sheet.
• The structure of the liability. Its analysis helps to understand the sources of instability of the company. This is extremely important, as it helps to solve the problem of insolvency by eliminating negative factors. For example, these include improper management of equity, a large amount of borrowed funds.
• Own . These are the funds that the company has the right to dispose of. The source of their education is the resources of the organization. For example, operating income.
• Borrowed working capital. These are credits, loans, debts to creditors, various liabilities. Most companies take out loans. However, there should not be too many of them, as this leads to dependence on creditors.
• Long-term solvency. It implies the ability to cover your obligations in the long term.
• Short term solvency. It implies the ability to cover your obligations in the short term. In this case, as a rule, current assets are used.
• Own resources. These include equity capital, retained earnings, and depreciation charges.

Sufficient sustainability is ensured if the company achieves maximum results with minimum spending. Costs are reduced by optimizing the list of sources of asset formation. Pay attention to the structure of working capital. It is the ratio of loans to equity.

Types of sustainability

The indicator under consideration is classified according to the degree of stability. It can be absolute, average, crisis. Depending on the type of sustainability, the company determines ways to improve performance.

Absolute stability

Absolute stability can be established if the size of the inventory exceeds the size of own working capital, as well as bank loans against these values. This takes into account loans for shipped products and accounts payable offset by a banking institution in lending. The costs are covered in this case at the expense of own working capital. The considered level of stability is characterized by increased solvency. The company is independent of creditors.

Absolute stability is a rare phenomenon, especially in the CIS countries. It meets the following condition:

Stocks< собственные оборотные средства

The ratio shows that the stocks are fully covered by SOS. This means that the company is completely independent of third-party creditors.

FOR YOUR INFORMATION! It must be said that the absolute indicator of stability is not always a positive phenomenon. Sometimes it means that the company is unwilling to look for effective external sources of financing.

Normal stability

Normal stability can be established if the indicators of the size of material and production resources and the size of own working capital / loans are identical. This takes into account accounts payable, which is offset by a banking institution when lending. The company's costs are covered by its own working capital and long-term loans. A company with such a stability indicator is characterized by standard solvency, productive production activities. This condition guarantees solvency. Normal stability corresponds to this condition:

Inventory = company funds + borrowed funds

This provision indicates that the company uses different sources of financing to cover its costs. Both own and borrowed funds are used.

precarious position

An unstable position indicates that the company's solvency is broken. At the same time, it is possible to ensure the identity between the available funds and obligations. To do this, you can use sources of funding that will reduce the tense financial condition. For example, you can take a loan to increase the amount of working capital, use accumulation funds. The costs are covered by own working capital, as well as long-term (with a maturity of one year) and short-term (up to one year) loans.

A company with an unstable position is characterized by insufficient solvency, attraction of funds from creditors. However, there is still a chance for improvement. NP meets the following condition:

Reserves = own funds + borrowed funds + sources that allow you to reduce financial tension

Stress relief sources include:

• Temporarily free funds.
• Funds reserves.
• Economic Stimulus Funds.
• Loans.

The presence of volatility is an acceptable parameter in the event that the volume of loans and borrowings does not exceed the total value of inventories.

Crisis position

The crisis situation allows you to establish an increased risk of bankruptcy. In the case under consideration, the amount of MPZ exceeds the amount of SOS and loans. Costs can be covered by a variety of sources. The crisis situation means the insolvency of the company and its proximity to bankruptcy.

The main characteristic of the KP is the inability to cover the company's debts with debtors' debts and securities. Consider the condition of the crisis situation:

Inventory > working capital of the firm + borrowed funds

IMPORTANT! In a crisis situation, it makes sense to optimize the structure of liabilities and reduce costs.

What characteristics determine the type of financial stability

Parameters on the basis of which the stability of the company is determined:

• The status of the organization in the financial market.
• Firm competitiveness.
• Demand for products.
• Rating in the business environment.
• Dependence on creditors and investors.
• Scale of production costs.
• The ratio of costs to profitability of activities.
• The presence of debtors who cannot pay the debt to the company.
• The amount of authorized capital that was paid.
• The effectiveness of ongoing operations.
• property potential.
• Value and current assets.
• The professionalism of the staff.

Almost every indicator is relative. It must be analyzed taking into account the dependence on other values. For example, the production costs are high. However, this by itself means nothing. If the profitability of the activity is large, then high costs are the norm. Also, large debts to creditors do not mean anything. This analysis must be analyzed in conjunction with the size of the company's own funds.

FOR YOUR INFORMATION! The analysis of financial stability values ​​is performed on the basis of information from the financial statements. In particular, forms No. 1 and No. 5 are meant. Other documents may also be used.

The financial stability of an enterprise is the key to the company's survival in the market.

Stable, strong and sustainable enterprises have more advantages in dealing with the weak ones.

How to assess the financial stability of an enterprise, what these or those indicators mean - we will consider in this material.

The key to survival and the basis for the stability of the enterprise is its sustainability. The stability of the enterprise is influenced by various factors:

• position of the enterprise in the commodity market;
• production and release of cheap, in-demand products;
• its potential in business cooperation;
• degree of dependence on external creditors and investors;
• presence of insolvent debtors;
• efficiency of business and financial transactions, etc.

Financial stability is a reflection of a stable excess of income over expenses, provides free maneuvering of the enterprise's funds and, through their effective use, contributes to the uninterrupted production and sale of products. In other words, the financial stability of a company is the state of its financial resources, their distribution and use, which ensure the development of the company based on the growth of profits and capital while maintaining solvency and creditworthiness under conditions of an acceptable level of risk. Therefore, financial stability is formed in the process of all production and economic activities and is the main component of the overall sustainability of the enterprise.

An analysis of the stability of the financial condition on a particular date allows you to answer the question: how correctly the company managed financial resources during the period preceding this date. It is important that the state of financial resources meet the requirements of the market and meet the needs of the development of the enterprise, since insufficient financial stability can lead to the insolvency of the enterprise and the lack of funds for the development of production, and excess - hinder development, burdening the costs of the enterprise with excessive stocks and reserves. Thus, the essence of financial stability is determined by the effective formation, distribution and use of financial resources, and solvency is its external manifestation.

An assessment of the financial condition of an enterprise will be incomplete without an analysis of financial stability. Analyzing the liquidity of the company's balance sheet, compare the state of liabilities with the state of assets; this makes it possible to assess the extent to which the company is ready to pay off its debts. The task of financial stability analysis is to assess the size and structure of assets and liabilities. This is necessary to answer the questions: how independent is the enterprise from a financial point of view, is the level of this independence growing or decreasing, and whether the state of its assets and liabilities meets the objectives of its financial and economic activities. Indicators that characterize independence for each element of assets and for property as a whole make it possible to measure whether the analyzed business organization is financially stable enough.

The financial stability of an enterprise is related to the overall financial structure of the enterprise and the degree of its dependence on creditors and debtors. For example, an enterprise that is financed mainly by borrowed money, in a situation where several creditors simultaneously demand their loans back, may go bankrupt. In this case, the structure of the enterprise "own capital - borrowed capital" has a significant preponderance towards the latter. Thus, we can conclude that the financial stability of an enterprise in the long term is characterized by the ratio of its own and borrowed funds. The provision of reserves and costs with sources of formation is the basis of financial stability.

Financial stability analysis

The analysis of financial stability comes from the main balance formula, which establishes the balance of the asset and liability indicators of the balance sheet, which has the following form:

Av + Ao = Ks + Zd + Zkr

• Av - non-current assets (the result of section I of the asset balance);
• Ao - current assets (the result of section II of the balance sheet asset), which include production inventories (PZ) and cash, non-cash forms and settlements in the form of receivables (DZ);
• Кс - the capital and reserves of the enterprise, i.e. the equity capital of the enterprise (the result of section III of the liability of the enterprise's balance sheet);
• Zd - long-term credits and loans taken by the enterprise (the result of section IV of the liability of the enterprise's balance sheet);
• Zkr - short-term loans and borrowings taken by the enterprise, which, as a rule, are used to cover the lack of working capital of the enterprise (AS), the company's accounts payable, for which it must pay almost immediately (KZ) and other funds in settlements (PS) (total section V of the liability of the balance sheet of the enterprise).

Taking into account all subsections of the balance sheet this formula can be presented in the following form:

Av + (PZ + DZ) \u003d Ks + Zd + (ZS + KZ + PS)

(Av + PZ) + DZ \u003d (Ks + PS) + Zd + ZS + KZ

• Av + PZ - non-current and circulating production assets;
• DZ - current assets in circulation;
• Ks + PS - own and equivalent capital of the enterprise, as a rule, used to cover the lack of working capital of the enterprise.

In the event that the non-current and current production assets of the enterprise are repaid at the expense of equity and equivalent capital with the possible attraction of long-term and short-term loans, and the funds of the enterprise in settlements are sufficient to pay off urgent obligations, then we can talk about one or another the degree of financial stability (solvency) of the enterprise, which is characterized by a system of inequalities:

(Av + PZ)≤ (Ks + PS) + Zd + ZS

DZ ≥ KZ

At the same time, the fulfillment of one of the inequalities automatically entails the fulfillment of the other, therefore, when determining the financial stability of an enterprise, they usually proceed from the first inequality, transforming it based on the fact that, first of all, the enterprise must provide capital for its non-current assets.

In other words, the value of the enterprise's reserves should not exceed the amount of own and borrowed funds and borrowed funds of the enterprise after providing non-current assets with these funds, i.e.

PZ ≤ (Ks + PS + Zd + ZS) - Av

The fulfillment of this inequality is the main condition for the solvency of the enterprise, since in this case, cash, short-term financial investments and active settlements will cover the short-term debt of the enterprise.

Thus, the ratio of the cost of material circulating assets and the values ​​of own and borrowed sources of their formation determines the stability of the financial condition of the enterprise. The most general indicator of financial stability is the surplus or shortage of sources of funds for the formation of reserves and costs, obtained as a difference in the value of sources of funds and the value of reserves and costs.

To assess the state of stocks and costs, the data of the group of articles "Stocks" of section II of the asset balance are used.

To characterize the sources of formation of stocks, three main indicators are determined.

1.Availability of own working capital (SOS) as the difference between capital and reserves (section III of the balance sheet liability) and non-current assets (section I of the balance sheet asset). This indicator characterizes net working capital. Its increase in comparison with the previous period indicates the further development of the enterprise. In a formalized form, the presence of own working capital can be written as follows:

SOS= Ks - Av

2.Availability of own and long-term borrowed sources of reserves and costs (SD), determined by increasing the previous indicator by the amount of long-term liabilities:

SD\u003d (Ks + Zd) - AB \u003d SOS + Kd

3. The total value of the main sources of formation of reserves and costs (OI), determined by increasing the previous indicator by the amount of short-term borrowings:

OI\u003d (Ks + Zd) - Av + ​​Zs

Three indicators of the availability of sources of formation of reserves and costs correspond to three indicators of the availability of reserves and costs with sources of their formation:

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

∆SOS= SOS - Z

where З - stocks (p. 210 + p. 220 of section II of the asset balance).

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

∆SD\u003d SD - Z

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

∆OI= OI - G

Types of financial stability of an enterprise

To characterize the financial situation in the enterprise, there are four types of financial stability.

1 Absolute stability of the enterprise

Absolute financial stability, which is very rare in the current conditions of development of the economies of the CIS countries, is an extreme type of financial stability and is set by the condition:

W< СОС

This ratio shows that all stocks are fully covered by their own working capital, i.e. the company is completely independent of external creditors. However, such a situation cannot be considered ideal, since it means that the management of the enterprise is unable, unwilling or unable to use external sources of financing for its core activities.

2 Normal stability of the enterprise

Normal stability of the financial condition of the enterprise, which guarantees its solvency, meets the following condition:

Z = SOS + ZS

The above ratio corresponds to the situation when an enterprise successfully uses and combines various sources of funds, both its own and attracted, to cover reserves and costs.

3 Unstable financial condition of the enterprise

Unstable state, characterized by a violation of solvency, in which it remains possible to restore balance by replenishing sources of own funds and increasing the SOS:

Z = SOS + ZS + Io

Where Io are sources that ease financial tension (temporarily free own funds (economic incentive funds, financial reserves), borrowed funds (excess of normal accounts payable over receivables), bank loans for temporary replenishment of working capital and other borrowed funds).

Financial instability is considered normal (acceptable) if the amount of short-term loans and borrowed funds attracted for the formation of stocks and costs does not exceed the total cost of inventories and finished products (the most liquid part of stocks and costs).

4 Crisis financial condition of the enterprise

Crisis financial condition in which an entrepreneurial firm is on the verge of bankruptcy, since cash, short-term securities and receivables do not even cover her accounts payable and overdue loans:

Z > SOS + ZS

In the last two cases (unstable and crisis financial situation), stability can be restored by optimizing the structure of liabilities, as well as by a reasonable reduction in the level of reserves and costs.

In economic theory, an important criterion for classifying costs is the time intervals during which certain economic decisions are made. There are short-term and long-term periods.

Short term a period of time is considered insufficient to change the production capacity of the company, i.e. number of machines and equipment. During this period, the company can only change the intensity of their use and decide how best to organize production at the existing fixed production capacities. The short-term period has a different duration in different industries.

In the short run, individual factors of production (production buildings, machines, equipment, land, services of top managers and specialists) do not change due to changes in the volume of production, so they are called permanent factors (FF– fixed factor), and the costs of their acquisition (depreciation, rent payments, insurance premiums, salaries to senior management personnel) - fixed costs (FC – fixed costs). Other factors (raw materials, materials, fuel, energy, transport services, labor resources) change depending on the change in the volume of production, therefore they are called variable factors (VF – variable factor), and the cost of their acquisition - variable costs production ( VC – variable costs). Together constants and variables form total costs production ( TC – total costs).

For the analysis of the company's activities, the average and marginal costs of the company are of great importance. Average cost (AC – average costs) represent the cost to the firm of producing a unit of output, and it is these that are used for comparison with the price, which is always quoted per unit of output.

The concept of marginal cost in modern economic theory is of particular importance. Marginal (added) costs (MC – marginal costs) show the increase in the firm's total costs associated with an increase in output by one additional unit. Thus, marginal cost shows the costs that the firm will have to incur in the case of the production of an additional unit of output, and, conversely, the money saved if the firm does not produce this additional unit of output. Based on the analysis of the magnitude of marginal costs, the choice of the optimal volume of production of the firm is carried out.

An idea of ​​the various costs of the firm in the short run gives table 4.2.

If we limit all the factors used for production to capital (a constant factor, the price of 1000 monetary units) and labor (a variable factor, the price of 25 monetary units), then the company's production costs can be represented in the form of table 4.3.

Table 4.2

Costs	Cost Name	Designation of costs	Cost calculation
For the entire production	Common Constants	TFC
General variables	TVC
Are common	TC	TC = TFC + TVC
per unit of production on average	Average constants	A.F.C.	AFC = TFC/Q
Average variables	AVC	AVC=TVC/Q
Average general	ATC	ATC=TC/Q ATC = AFC + AVC
One extra unit	Limit	MS	MS = D TC/D Q

Table 4.3

The firm's production costs in the short run
(in monetary units)

Labor, number of employees	Volume of production, pcs.	General costs	marginal cost	Average cost
TFC	TVC	TC	MC	A.F.C.	AVC	ATC
					16,6 10,0 10,8 19,2 27,8 50,0 250,0	–	–	–
					66,7	16,7	82,3
					25,0	12,5	37,5
					15,9	11,9	27,8
					13,2	13,2	26,3
					11,8	14,7	26,5
					11,1	16,7	27,8
					11,0	19,2	30,2

Using the data in the table, you can graphically depict the company's production costs (Fig. 4.1, 4.2).

Rice. 4.1 Total costs of the firm

63 76

26,3 11,9

Rice. 4.2 Average and marginal costs of the firm

Based on table 4.3 and graphs (Fig. 4.1, 4.2), it is possible to analyze the production costs of the company in the short term, and the following patterns are revealed.

1. Total fixed costs ( TFC) do not change when the volume of production changes, so they are shown in Fig. 4.1 as a horizontal line.

2. General variable costs ( TVC) change with an increase in the volume of production, and therefore the total, gross costs ( TC) firms also increase as output increases. Curves TVC And TC are constantly ascending (Fig. 4.1). Values TFC, TVC, TC determined for each specific production volume.

3. Average fixed costs ( A.F.C.) with the growth of production volume is constantly decreasing, so the curve A.F.C. has a downward character (see Fig. 4.2).

4. Curves MS, AVC And ATS first go down (Fig. 4.2), and then go up. This means that the marginal, average variable and average total costs of the firm, due to the effect of the division of labor and specialization, decrease to a certain value, and then, due to the law of decreasing marginal productivity of the variable resource (labor), with the value of the constant resource (capital) unchanged, they begin to increase. .

5. Curve MS crosses curves AVC And ATC at the points of their smallest value, respectively, at the points A And B(Fig. 4.2).

Of all the cost indicators, average total costs are of particular importance, because in economic analysis, it is important to take into account that the company must necessarily reimburse all its costs, so the price comparison is carried out precisely with these costs ( ATS). Curve ATS(Fig. 4.2) has the form of a concave curve, the lower point of which (point IN) characterizes the minimum value of the average total cost of production. Thus, if we proceed from only one criterion of the firm's activity - minimization of production costs, then the firm optimizes its activities at the bottom of the curve ATS. From here, the optimal production volume will be 76 pieces (see Table 4.3), and the optimal number of workers employed in production is four people.

It should be noted that the analysis of the company's production costs makes it possible to determine the levels of market prices that are favorable and unfavorable for its activities. In this regard, the entire schedule of average and marginal costs (see Fig. 4.2) is divided into three fields.

First field characterized low price level (0 < P < 11,9 – минимального значения AVC at the point A). At these prices, the firm will not even be able to recover its variable costs, so it will be forced to cease operations.

Second field (11,9 < P < 26,3 – минимального значения ATS at the point IN) is called the field of unstable position of the firm where it can recover only its variable costs. Thus, the firm does not recoup all its costs with the price and seeks to find a more efficient alternative direction of its activity. Lowest value AVC(dot A) are called critical low price. It shows the lowest price at which the firm can recover only its variable costs and it does not make sense for it to continue its activity, so the critical low price is actually company closing price.

Third field (P≥ 26.3) is the most favorable for the firm and is called firm's breakeven field. Lowest value ATS(dot IN) are called long-term critical price. It shows the lowest price value at which the firm can break even, i.e. cover all production costs.

If the market price is set above the long-term critical price, then the firm begins to make a profit or, having increased the volume of output (for example, to increase its market share), will operate, recovering its economic costs and receiving a normal profit.

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