A standard assessment of the financial condition of an enterprise includes several consecutive stages. Let's consider each of them in more detail.
Evaluation of the financial resources of the enterprise
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General assessment of the dynamics and structure of the balance sheet
The required data are presented in form No. 1 (Enterprise Balance Sheet). The aggregate balance sheet is assessed in two ways.
Vertical – includes an analysis of the capital structure of the enterprise, the ratio of each balance sheet item to the total amount, changes in its structure, as well as a description of changes in capital in the period under review.
Horizontal – reflects changes papua new guinea email list in values for each balance sheet item for the past period in numerical and percentage terms.
Next, it is necessary to correlate the asset and liability items that had the greatest impact on the overall change in the enterprise's capital, and determine the most important trends in the enterprise's activities at the end of the reporting year.
Also, during the preliminary assessment, it is necessary to find out how effectively the production capital was used by comparing its growth rate with the same indicator of revenue.
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Calculation and evaluation of financial and operational ratios
Financial and operational ratios are usually divided into the following categories: solvency, liquidity, business activity and profitability. Calculation of analytical ratios allows to evaluate the economic potential of the enterprise and, thus, to obtain reliable and most complete information about the financial condition of the enterprise, as well as to predict its changes.
The assessment consists of studying the dynamics of indicators, characterizing their behavior in the future, and comparing the obtained values with the norm.