Topic 1 “Fundamentals of the financial policy of an enterprise”
1. The financial policy of the enterprise is:
a) Science that analyzes financial relations enterprises;
b) Science that studies the distribution relations of an enterprise carried out in monetary form;
c) A set of measures for the purposeful formation, organization and use of finances to achieve the goals of the enterprise; +
d) The science of financial management of a business entity. Correct answer
2. The main goal of the financial activity of an enterprise is: a) To organize financial work at the enterprise;
b) Correct calculation and timely payment of taxes;
c) Accurate implementation of all indicators of financial plans;
d) In maximizing the welfare of owners in the current and future periods; +
f) In maximizing profits;
f) To ensure the financial stability of the enterprise. Correct answer:.
3. The main purpose of the financial activity of the enterprise is:
a) Maximizing the market price of the enterprise. +
b) Profit maximization
c) Providing the enterprise with sources of financing
d) All of the above Correct answer:
4. The strategic financial goals of a commercial organization are:
a) Profit maximization; +
b) Ensuring the liquidity of the enterprise’s assets;
c) Organization of a financial planning and regulation system;
d) Ensuring financial sustainability +
f) Synchronization and alignment of positive and negative cash flows of the enterprise;
f) Increase in the market value of the organization; g) Providing dividend payments. Correct answer:
5. The strategic direction of development of the enterprise is influenced by the following factors:
a) New products in production technology in this market segment;
b) Enterprise scale; +
c) Stage of development of the enterprise; +
d) State of the financial market; +
f) Tax system; +
f) The amount of public debt. Correct answer:
6. The tactical financial goals of a commercial organization include:
a) Profit maximization;
b) Reducing production costs; +
c) Ensuring the financial stability of the enterprise;
d) Maximizing the welfare of owners in the current and future periods;
f) Increase in sales volume;
f) Increasing selling prices for manufactured products. Correct answer:
7. Long-term financial policy includes:
a) Capital structure management; +
b) Accounts payable management; c) Calculation of standards working capital;
d) Accounts receivable management.
I
Correct answer:
8. Long-term financial policy of the enterprise:
a) Determined by short-term financial policy;
b) Exists alongside it; +
c) Influences short-term financial policy. Correct answer: +
9. The horizontal method of financial analysis is:
a) Comparison of each reporting item with the previous period+
b) Determination of the structure of the final financial indicators
c) Determination of the main trend of changes in the dynamics of indicators Correct answer:
10. Assessment of the dynamics of financial indicators is carried out using:
a) vertical analysis
b) horizontal analysis +
c) financial ratios Correct answer:
11. Academic disciplines with which financial policy is associated:
a) Financial management; +
b) Statistics; +
c) Finance; +
d) Accounting; +
f) History of economic doctrines; f) World economy. Correct answer:
12. The objects of management of an enterprise’s financial policy include:
a) Financial market;
b) Capital; +
c) Cash flows; +
d) Innovation processes. Correct answer:
Tests on topic 2 “Long-term financial policy”
1. Capitalization is:
a) The sum of the products of stock prices and the number of shares outstanding. +
b) The total volume of issues of securities traded on the market.
c) The total share capital of the issuing companies at par value. d) The total market value of the assets of the issuing companies. Correct answer:
2. Indicate the most likely consequences of a significant excess equity companies in relation to To debt capital due to the fact that the company prefers issuing shares to issuing bonds:
1. Acceleration of earnings per share growth.
2. Slowdown in earnings per share growth. 3. Increase in the market value of the company's shares, 4. Decrease in the market value of the company's shares
Correct answer:
3. The current yield of bonds with a coupon rate of 10% per annum and a market value of 75% is equal to:
Correct answer:
4. Two corporate bonds with the same par value are simultaneously circulating on the market. The bond of JSC “A” has a coupon rate of 5%, the bond of JSC “B” has a coupon rate of 5.5%. If the market value of the bond of JSC “A” is equal to the par value, then, without taking into account other factors affecting the price of the bond, indicate the correct statement regarding the bond of JSC ((B”:
a) the market value of the bond of JSC “B” is higher than the face value.+
b) the market value of the bond of JSC “B” is below par. c) the market value of the bond of JSC “B” is equal to the par value.
d) the yield on the bond of JSC "B" is higher than the yield on the bond of JSC "A". Correct answer:
5. Indicate the sources of payment of dividends on ordinary shares:
A) Retained earnings of the current year.+
b) Retained earnings from previous years. c) Reserve fund.
d) Retained earnings of the current year and previous years. +
Correct answer:
b. The advantages of the joint stock form of business organization include: A) Subsidiary liability of shareholders.
b) Wide opportunities for access to financial markets. +
c) All of the above. Correct answer:
7. If the company has no profit, then the owner of preferred shares: A) May require payment of dividends on all shares. b) May require partial payment of dividends.
c) Cannot demand payment of dividends at all+
D) Unity 1 and 2. Correct answer:
8. Specify the financial instrument used to attract equity capital: a) Additional share contribution. +
b) Issue of bonds.
c) Increase in additional capital.+
d) Leasing.
Correct answer:
9. What types of liabilities do not belong to the company’s equity capital: A) Authorized capital.
b) Retained earnings.
With) Bills of exchange To payment . +
d) Long-term loans. +
e) Accounts payable +
Correct answer:
10. The autonomy coefficient is defined as the ratio:
A) Own capital to balance sheet currency. +
b) Own capital to short-term loans and borrowings. c) Net profit to equity. d) Own capital To revenue. Correct answer:
11. Own capital of the enterprise: A) The sum of all assets.
b) Retained earnings.
c) Revenue from the sale of goods (work, services).
d) The difference between a company's assets and liabilities. +
Correct answer:
12. Leasing is more profitable than a loan: A) Yes.
b) No.
c) Depending on the conditions of their provision+
D) Depending on the terms of provision. Correct answer:
13. Financial leasing is:
A) Long-term agreement providing for full depreciation of leased equipment. +
b) Short-term rental of premises, equipment, etc.
c) Long-term lease, involving partial redemption of equipment. - Correct answer:
14. The share of preferred shares in the authorized capital of a JSC should not exceed:
b) 25%. +
d) The standard establishes general meeting shareholders. Correct answer:
15. Which item is not included in section III of the balance sheet “Capital and reserves”? a) Authorized capital.
b) Additional and reserve capital.
c) Current liabilities. +
d) Retained earnings. Correct answer:
16. Indicate the financial source for the formation of additional capital:
a) Share premium+
b) Profit.
c) Founders' funds. Correct answer:
17. For enterprises of what organizational and legal form is the formation of reserve capital mandatory in accordance with Russian legislation:
A) State unitary enterprises.
b) Joint stock companies.+
c) Partnerships of faith. Correct answer:
18. Name the source of financing for the enterprise:
A) Depreciation charges +
b) Cash
c) Working capital d) Fixed assets Correct answer:
19. The value (price) of attracted capital is determined as:
a) The ratio of expenses associated with attracting financial resources to the amount of attracted resources. +
b) The amount of interest paid on loans.
c) The amount of interest on loans and dividends paid. Correct answer:
20. The effect of financial leverage determines:
A) Rationality of raising borrowed capital; +
b) The ratio of current assets to short-term liabilities; c) The structure of the financial result. Correct answer
Tests on topic 3
1. What is the purpose of the financial planning process at an enterprise:
A. For more efficient use of profits and other income. +
B. For the rational use of labor resources. B. to improve the consumer properties of the product. Correct answer:
2. What is not a source of financing for an enterprise:
A. Forfaiting.
B. Depreciation charges.
B. Volume of R&D expenditures. +
G. Mortgage.
Correct answer:
3. From the listed sources, select a source of financing for long-term investments:
A. Additional capital.
B. Sinking fund. +
B. Reserve fund. Correct answer:
4. What is meant by the sources of financing available to the enterprise for the planning period:
A. Own funds.
B. Authorized capital of the enterprise.
B. Own, borrowed and attracted funds. +
Correct answer:
5. What period does the current financial plan of the enterprise cover:
A. Year.+
B. Quarter. Per month.
Correct answer:
6. What is the main task of financial planning of an enterprise:
A. Maximizing company value.+
B, Accounting for volumes of products produced.
B. Effective use of labor resources. Correct answer:
7. Which of the following methods relates to forecasting:
A. Normative.
B. Delphi.+
B. Balance sheet.
D. Cash flows. Correct answer:
8. Which of the following methods relates to financial planning:
A. Normative+
B. Trend analysis.
B. Time series analysis. D. Econometric. Correct answer:
9. Is it true that the method of economic-mathematical modeling makes it possible to find a quantitative expression of the relationships between financial indicators and the factors that determine them:
Correct answer:
10. Arrange financial plans by validity period in order of decreasing validity period:
A. Strategic plan, long-term financial plan, operational financial plan, current financial plan (budget).
B. Strategic plan, long-term financial plan, current financial plan (budget), operational financial plan. +
B. Long-term financial plan, strategic plan, operational financial plan, current financial plan (budget).
Correct answer:
11. The following data is available for the enterprise: balance sheet assets, which change depending on sales volume - 3000 rubles, balance sheet liabilities, which change depending on the sales volume
depending on sales volume - 300 rubles, projected sales volume - 1250 rubles,
actual sales volume is 1000 rubles, income tax rate is 24%, dividend payout ratio is 0.25. What is the need for additional external financing:
B. 532.5 rub.+
V. 623.5 rub.
12. The sales volume of the enterprise is 1000 thousand rubles, equipment utilization is 70%. What is the maximum sales volume when the equipment is fully loaded:
A. 1000 rub. B. 1700 rub.
V. 1429 rub. +
D. None of the answers are correct. Correct answer:
13. The sales volume of the enterprise is 1000 thousand rubles, equipment utilization is 90%. What is the maximum sales volume when the equipment is fully loaded:
A. 1900 rub.
B.1111 rub.+
V. 1090 rub.
D. None of the answers are correct. Correct answer:
14. The sales volume of the enterprise is 1000 thousand rubles, equipment utilization is -.. 90%, fixed assets - 1SOO thousand rubles. What is the capital intensity ratio at full: ": equipment loading:
D. None of the answers are correct. I Correct answer:
15. Is there a relationship between financial policy and growth:
A. Exists in the form of a direct relationship. +
B. Exists in the form of an inverse relationship.
B. There is no relationship. Correct answer:
l6. The maximum growth rate that a company can achieve without external financing is called:
A. Sustainable growth rate
B. Internal growth rate +
B. Reinvestment ratio.
D. Dividend payout ratio. Correct answer:
17. The maximum growth rate that an enterprise can maintain without increasing financial leverage is called:
A. Sustainable growth rate +
B. Internal growth rate C. Reinvestment rate.
D. Dividend payout ratio. Correct answer:
18. The net profit of the enterprise was 76 thousand rubles, the total amount of assets was 500 thousand rubles. Of 76 thousand rubles. net profit 51 thousand rubles were reinvested. The internal growth rate will be:
A. 10%.
19. The enterprise has a net profit of 76 thousand rubles, equity capital of 250 thousand rubles. The capitalization ratio is 2/3. The sustainable growth rate is:
A. 12.4%.
B. 10.3%.
IN. 25,4%. +
D. None of the answers are correct. Correct answer:
20. An enterprise has a financial leverage of 0.5, a net return on sales of 4%, a dividend payment rate of 30% and a capital intensity ratio of 1. The sustainable growth ratio is:
D. None of the answers are correct. Correct answer:
21. With an increase in net return on sales, the sustainable growth rate is:
A. Will increase.+
B. Will decrease.
B. It won’t change.
Correct answer:
22. When the percentage of net profit paid as dividends decreases, the sustainable growth coefficient:
A. Will increase.+
B. Will decrease.
B. It won’t change.
Correct answer:
23. When the financial leverage of an enterprise decreases (the ratio of borrowed funds to equity), the sustainable growth ratio:
A. Will increase.
B. Will decrease.+
B. It won’t change.
Correct answer:
24. When the turnover of an enterprise’s assets decreases, the coefficient of sustainable growth:
A. Will increase.
B. Will decrease. +
B. It won’t change.
Correct answer:
25. If the received value The Z-score in Altman's five-factor bankruptcy forecasting model is more than 3, which means that the probability of bankruptcy is:
A. Very high.
B. High.
B. Low
D. Very low +
Correct answer:
DCFP T4 tests
1. The operating budget includes:
A. Budget for direct labor costs.
B. Investment budget.+
B. Cash flow budget. Correct answer:
2. Which indicator included in the cash flow budget creates a source of direct investment? A. Redemption of bonds.
B. Purchase of tangible non-current assets. +
B. Depreciation.
Correct answer:
3. What operating budget should be prepared so that the quantities of materials that need to be purchased can be estimated: A. Business expenses budget. B. Sales budget.
B. Production budget
D. Materials procurement budget. +
Correct answer:
4. Is it true that the initial element of the direct cash flow budgeting method is profit?
Correct answer:
5. Are business expenses reflected in the budget of income and expenses included in the operating expenses of the enterprise? A. Yes.
Correct answer:
6. Detailed diagram of estimated production costs other than direct ones material costs and direct labor costs that must occur to fulfill the production plan are:
A. Production overhead budget.+
B. Investment budget.
B. Management budget. D. Basic budget.
Correct answer:
7. Which of the following items of the cash flow plan are included in the section “Receipts from current activities”?
A. Obtaining new loans and credits.
B. Revenue from sales of products.+
B. Issue of new shares. Correct answer:
8. Is it true that an increase in long-term financial investments creates an influx of cash in the enterprise? A. Yes.
B. No. I +
Correct answer:
9. Which of the listed cash flow budget items are included in the section “Expenses for investment activities”? A. Short-term financial investments.
B. Payment of interest on a long-term loan.
B. Long-term financial investments.+
Correct answer:
10. Specify two methods for drawing up a cash flow plan:
A. Direct.+
B. Control.
B. Analytical.
D. Indirect. +
Correct answer:
11. Is it true that an increase in accounts receivable creates an influx of cash in the enterprise? A. Yes.
Correct answer:
12. In what cases is it advisable to allocate income (expenses) for investment activities in the cash flow budget?
A. In any case.+
B. With a significant volume of investment activity.
B. when separating depreciation and repair funds. Correct answer:
13. What budget is the starting point in the process of developing a master budget?
A. Business expenses budget.
B. Sales budget. +
B. Production budget.
D. Materials procurement budget. Correct answer:
14. What financial indicator is reflected in the expenditure side of the cash flow budget?
A. Means of targeted financing.
B. Investments in fixed assets and intangible assets +
B. Issue of bills.
Correct answer:
15. A budget based on adding one month to the budget period as soon as the current one expires is called: A. Continuous.
B. Flexible.+
B. Operational. G. Forecasting.
Correct answer:
16. Which of the following items is included in the expenditure side of the cash flow budget?
A. Advances received.
B. Long-term loans.
B. Income from non-operating operations...
D. Advances issued. Correct answer: +
17. What financial indicators are not included in the liabilities of the enterprise’s planned balance sheet?
A. Targeted funding and revenues. B. Long-term loans and borrowings.
B. Short-term financial investments. +
Correct answer:
18. It follows from the company’s sales budget that they expect to sell 12,500 units in November. product A and 33100 pcs. product B. The selling price of product A is 22.4 rub., and product B - 32 rub. The sales department receives 6% commission on the sale of product A and 8% on the sale of product B. How much commission is budgeted to receive from sales per month:
A. 106276 rub.
B. 101536 rub.+
V. 84736 rub.
G. 92436 rub.
Correct answer:
19. What is the best basis for evaluating monthly performance:
A. Expected completion for the month (budget). +
B. Actual completion for the same month in the previous year. B. Actual performance for the previous month. Correct answer:
20. The company sold goods for the amount is 13,400 rubles. in August; in the amount of 22,600 rubles. in September and in the amount of 18,800 rubles. in October. From the experience of receiving money for goods sold, it is known that 60% of funds from credit sales are received the next month after the sale; 36% - in the second month, 4% - will not be received at all. How much money was received from sales on credit in October:
A. 18384 rub. +
B. 19416 rub.
V. 22600 rub.
G. 18800 rub.
Correct answer:
21. In the process of preparing an operating budget, the last step is usually the preparation of:
A. Budget of income and expenses. +
B. Balance forecast
I
B. Cash flow budget.
D. None of the above mentioned budgets. Correct answer:
22. The amount of materials that need to be purchased will be equal to the budgeted amount of materials used:
A. Plus planned ending inventories of materials and minus their initial inventories.+
B. Plus the beginning inventories of materials and minus the planned ending inventories. B. Both of the above statements are true. G. None of them are correct. Correct answer:
23. An enterprise has an initial inventory of a certain product of 20,000 pcs. At the end of the budget period, it plans ending inventory to be 14,500 units. of this product and produce 59,000 pcs. The planned sales volume is:
B. 64500 pcs.+
D. None of the quantities listed. Correct answer:
24. During the budget period, a manufacturing company expects to sell products on credit in the amount of 219,000 rubles. and receive 143,500 rubles. It is assumed that no other cash receipts are expected, the total amount of payments in the budget period will be 179,000 rubles, and the balance in the “cash” account should be at least 10,000 rubles. What additional amount needs to be raised in the budget period:
A. 45,500 rub. +
B. 44500 rub.
V. 24500 rub.
D. None of the listed answers are correct. The correct answer is:
Tests on topic 5. Management of current costs and pricing policy of the enterprise
1, Fixed costs per unit of production with an increase in the level of business activity of the enterprise:
a) increase;
b) decrease; +
c) remain unchanged;
d) do not depend on the level of business activity. Correct answer:
Opportunity costs:
a) Not documented;
b) Typically not included in financial statements; c) May not represent actual cash costs;
d) All of the above are true. Correct answer: +
2. Alternative costs are taken into account when making management decisions: a) When there is an excess of resources;
b) In conditions of limited resources; +
c) Regardless of the degree of resource provision. Correct answer:
3. The threshold for product profitability (the point of critical production volume) is determined by the ratio:
a) fixed costs to variable costs
b) fixed costs to marginal income per unit of production +
c) fixed costs to revenue from product sales Correct answer:
4. What impact will have on the margin of financial strength of non-fixed expenses:
a) the margin of financial strength will increase
b) the financial safety margin will decrease +
c) the financial safety margin will remain unchanged Correct answer:
6. Determine the threshold for profitability of sales of new products. The estimated price per unit of production is 1000 rubles. Variable costs per unit of production - 60%. The annual amount of fixed costs is 1600 thousand rubles.
a) 4000 thousand rubles. +
b) 2667 thousand rubles.
c) 1600 thousand rubles.
Correct answer:
7. At what minimum price can an enterprise sell products (to ensure break-even sales), if variable costs per unit of product are 500 rubles, the estimated volume of output is 2000 units, the annual amount of fixed costs is 1200 thousand rubles.
b) 1000 rub.
c) 1100 rub. +
Correct answer:
8. The margin of financial strength is defined as:
a) the difference between revenue and variable costs
b) the difference between revenue and fixed costs
c) the difference between revenue and the profitability threshold Correct answer: +
9. Using the data below, determine the margin of financial strength: revenue - 2000 thousand rubles, fixed costs - 800 thousand rubles, variable costs- 1000 thousand rubles.
a) 400 thousand rubles. +
b) 1600 thousand rubles. c) 1000 thousand rubles.
Correct answer:
10. How will reducing fixed costs affect the critical sales volume?
a) the critical volume will increase
b) the critical volume will decrease +
c) the critical volume will not change Correct answer:
11. Using the data below, determine the effect of operating leverage: sales volume 11,000 thousand rubles, fixed costs - 1,500 thousand rubles, variable costs - 9,300 thousand rubles:
Correct answer:
12. Calculate the expected amount of profit from sales with a planned increase in sales revenue by 10%, if in the reporting period sales revenue is 150 thousand rubles, the amount of fixed costs is 60 thousand rubles, the amount of variable costs is 80 thousand rubles .
a) 11 thousand rubles.
b) 17 thousand. rub.+
c) 25 thousand rubles.
Correct answer:
13. Determine the amount of financial safety margin (in monetary terms): sales revenue - 500 thousand rubles, variable costs - 250 thousand. rub., fixed costs - 100 thousand rubles.
a) 50 thousand rubles.
b) 150 thousand rubles.
c) 300 thousand rubles. +
Correct answer:
14. Determine by what percentage profit will increase if the company increases sales revenue by 10%. The following data is available: sales revenue - 500 thousand rubles, marginal income - 250 thousand rubles, fixed costs - 100 thousand rubles.
Correct answer:
15. Using the data below, determine the point of critical sales volume: sales - 2,000 thousand rubles; fixed costs - 800 thousand rubles; variable expenses - 1,000 thousand rubles.
a) 1,000 thousand rubles.
b) 1,600 thousand rubles. +
c) 2,000 thousand rubles.
Correct answer:
16. The effect of operating leverage is determined by the ratio:
A) marginal income to profit +
B) fixed costs to variable costs
C) fixed costs to marginal income per unit of production The correct answer is:
17. Determine the amount of financial strength margin (in% of sales revenue): sales revenue - 2000 thousand rubles, variable costs - 1100 thousand rubles, fixed costs - 860 thousand rubles.
Correct answer:
18. How will the increase in fixed costs affect the critical sales volume?
A) the critical volume will increase +
B) the critical volume will decrease
C) the critical volume will not change The correct answer is:
19. The area of safe or sustainable operation of an organization is characterized by:
A) the difference between the actual and critical volume of sales +
C) the difference between marginal income and profit from product sales
C) the difference between marginal income and fixed costs The correct answer is:
20. Determine the amount of marginal income based on the following data: sales of products - 1000 thousand rubles; fixed costs - 200 thousand rubles; variable costs - 600 thousand rubles.
A) 400 thousand rubles. +
B) 800 thousand rubles. C) 200 thousand rubles. Correct answer:
21. Determine the amount of marginal income based on the following data: sales of products - 1000 thousand rubles, fixed costs - 200 thousand rubles, variable costs - 400 thousand rubles.
a) 600 thousand rubles. +
b) 800 thousand rubles. c) 400 thousand rubles.
Correct answer:
22. Total fixed costs - 240,000 million rubles. with a production volume of 60,000 units. Calculate fixed costs for a production volume of 40,000 units.
a) 6 million rubles. per unit +
b) 160,000 million rubles. in the amount c) 4 million rubles. per unit Correct answer:
23. Production leverage (leverage) is:
a) the potential opportunity to influence profits by changing the structure of product production and sales volumes +
b) the difference between the total and production cost of production c) the ratio of profit from sales of products to costs d) the ratio of borrowed capital to equity Correct answer:
24. The following data on the enterprise are available: sales price of products is 15 rubles; variable costs per unit of production 10 rub. It is desirable for an enterprise to increase profits from product sales by 10,000 rubles. How much do you need to increase production?
c) 50000 pcs. d) 15000 pcs.
Correct answer:
25. The strength of the production lever of firm A is higher than that of firm B. Which of the two firms will suffer less with the same decrease in relative sales volume:
a) Company B.+
b) Company A.
c) Same.
Correct answer:
Tests on topic 6. “Management of current assets”
1. Absolutely liquid assets include:
a) Cash;+
b) Short-term receivables;
c) Short-term financial investments..+
d) Stocks of raw materials and semi-finished products; f) Finished goods inventories. Correct answer-
2. Gross current assets are current assets formed from: a) Own capital;
b) Own and long-term debt capital;
c) Own and borrowed capital; +
d) Own and short-term borrowed capital. Correct answer-
3. If the company does not use long-term borrowed capital, then
a) Gross current assets are equal to own current assets;
b) Own current assets are equal to net current assets, +
c) Gross current assets are equal to net current assets; Correct answer-
4. The sources of formation of the organization’s current assets are:
a) Short-term bank loans, accounts payable, equity +
b) Authorized capital, additional capital, short-term bank loans, accounts payable
c) Own capital, long-term loans, short-term loans, accounts payable
Correct answer-
5. The operating cycle is the sum of:
a) Production cycle and receivables circulation period; +
b) Financial cycle and accounts payable turnover period; +
c) Production cycle and accounts payable turnover period; d) Financial cycle and receivables circulation period. Correct answer-
b. The duration of the financial cycle is determined as:
a) Operating cycle - the period of turnover of accounts payable; +
b) Operating cycle - the period of turnover of receivables; c) Operational cycle - production cycle;
d) The period of turnover of raw materials + the period of turnover of work in progress; the period of turnover of finished goods inventories,
f) Production cycle period + accounts receivable turnover period - accounts payable turnover period. +
Correct answer-
7. The reduction in the operating cycle can occur due to:
a) saving time in the production process; +
b) reduction of delivery times for materials,
c) accelerating the turnover of accounts receivable; +
d) increasing the turnover of accounts payable. Correct answer-
8 . What model of financing current assets is called conservative?
A) the constant part of current assets and approximately half of the varying part of current assets are financed from long-term sources; +
b) the permanent part of current assets is financed from long-term sources;
c) all assets are financed from long-term sources; +
6) half of permanent current assets are financed from long-term sources of capital.
Correct answer-
9. Equity ratio of current assets, this ratio:
a) profit to current assets;
b) revenues for negotiable items;+
c) current assets to revenue;
d) equity capital to current assets, The correct answer is
10. By undertaking an increase in working capital, the following contributes:
a) increase in turnover of working capital,
b) increasing the production cycle; +
c) increase in profits;
d) increasing the terms for providing loans to buyers; +
f) reduction of finished goods inventories. Correct answer-
11. The model of economically justified needs (KOQ) allows you to calculate for the finished pre-production:
a) optimal batch size of manufactured products +
b) the optimal average size of finished goods inventory; +
c) maximum production volume;
d) the minimum amount of total costs; +
Correct answer-
12. The optimal amount of inventory will be the following:
a) total costs for the formation, maintenance, renewal of reserves will be minimal+
b) the amount for storage will be minimal;
c) uninterrupted operational activities for production and
sale of IIpO~H.
Correct answer-
13. What type of accounts receivable management policy can be considered aggressive?
a) increasing the term for providing loans to consumers;
b) reduction of credit limits; +
c) reduction of discounts when paying upon delivery. Correct answer-
14. The cash management policy includes:
a) minimizing current cash balances +
b) ensuring solvency; +
c) ensuring the effective use of temporarily free cash +
Correct answer-
15. The duration of the financial cycle is:
a) the duration of the turnover period of inventories, work in progress and finished goods
products,
b) the duration of the production cycle plus the turnover period of accounts receivable minus the turnover period of accounts payable; +
c) the duration of the production cycle, the period of collection of receivables;
d) the duration of the production cycle plus the period of turnover of accounts payable;
Correct answer-
16. The efficiency of using working capital is characterized by:
a) Working capital turnover +
b) Structure of working capital; c) Capital structure The correct answer is
17. There cannot be the following relationship between own working capital and the amount of current assets:
a) Own working capital - more than current assets; +
b) Own working capital less than current assets; With) . Own working capital is equal to current assets. Correct answer-
18. The working capital of an enterprise does not include:
a) Objects of labor;
b) Finished products in warehouses;
c) Machinery and equipment; +
d) Cash and settlement funds. Correct answer-
19. From the components of current assets given below, select the most liquid:
a) inventories
b) accounts receivable
c) short-term financial investments +
d) deferred expenses =:";.6 The correct answer is
20. A slowdown in the turnover of current assets will lead to:
a) growth of asset balances on the balance sheet +
b) reducing asset balances on the balance sheet
c) reducing the balance sheet currency The correct answer is
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1.1 The essence of financial analysis and its place in the system of economic knowledge
In conditions market economy assessment problem economic development enterprises breaks down into a number of separate issues, the key of which is the financial analysis.
Analysis- this is the decomposition of the object or process being studied into separate component parts, elements internal to this object.
In the traditional sense, analysis is a method of research by breaking down complex phenomena into their component parts. In a broad scientific sense, analysis is a method of scientific research (cognition) and assessment of phenomena and processes, which is based on the study of the components and elements of the system being studied. In economics, an integral element of which is finance, analysis is used to identify the essence, patterns, trends and assess economic and social processes, study financial economic activity at all levels (at the level of an enterprise, organization, association, industry nationwide) and in different areas reproduction (material production, distribution, exchange and consumption).
Financial analysis is part of the analysis of financial and economic activities, which consists of two interrelated sections: financial analysis and management.
In the traditional sense, the essence of financial analysis lies in assessing and forecasting the financial condition of an enterprise based on financial reporting and accounting data.
In market conditions, financial analysis is one of the main tools for financial management of enterprises. It is based on the analysis and assessment of the effectiveness of managing the financial resources of business entities.
In order for an enterprise to have the opportunity to survive in conditions of fierce competition and be profitable, management must master the methodology of financial analysis, have a certain information base for its implementation and qualified analysts to implement this methodology in practice.
Financial analysis acts as a way of accumulating, transforming and using financial information necessary to assess the current and future financial condition of an enterprise, changing under the influence of: the external and internal environment and management decisions in order to assess its financial stability and performance efficiency.
Modern financial analysis covers a fairly wide range of issues that go far beyond the traditional assessment of the financial condition of an enterprise, carried out, as a rule, on the basis of financial reporting data.
The essence, objects and methods of solving problems of financial analysis have their own specifics.
Financial analysis is used by external users of information about the organization’s activities, as well as by the organization’s management personnel, in order to obtain detailed data contained directly in the accounting registers.
Features of financial analysis are as follows:
Multiplicity of subjects of analysis (users of information);
Diversity of goals and interests of the subjects of analysis;
Availability of standard methods, accounting and reporting standards;
Focusing the analysis on public and internal reporting of the enterprise;
Maximum openness of the analysis results for users of information about the enterprise’s activities.
Financial analysis can be performed both by the management personnel of a given enterprise and by any external analyst, since it is mainly based on generally available (public) information about the financial and economic activities of the enterprise.
Financial analysis is important integral part economic and financial sciences that form the theoretical basis economic work In the organisation. It has its own subject, objects of research.
The subject of financial analysis is the set of analyzed financial relations, financial resources and their flows, cause-and-effect relationships and methods of their study. It includes:
Financial relations that arise as a result of the financial and economic activities of the organization;
Knowledge of cause-and-effect relationships in the financial and economic activities of an organization;
Classification, systematization, modeling, measurement of cause-and-effect relationships that develop under the influence of objective and subjective factors and are reflected in the economic information system.
The main objectives of financial analysis are:
Study theoretical foundations financial analysis;
General assessment of the financial condition of the enterprise (assessment of the composition and structure of sources of financial resources, analysis of sources of own and borrowed funds, analysis of accounts payable, assessment of the composition and structure of assets, their condition and movement, analysis of the main and working capital, accounts receivable analysis);
Analysis of the market stability of the enterprise;
Analysis of financial stability (analysis of its absolute and relative indicators, assessment of the margin of financial stability (safety zone));
Solvency and liquidity analysis;
Cash flow analysis;
Analysis of the efficiency of capital use (analysis of profitability, working capital turnover, study of the effect of financial leverage);
Assessment of the enterprise's creditworthiness;
Analysis of the business activity of the enterprise;
Forecasting the financial performance of an enterprise;
Analysis of the financial condition of insolvent enterprises and search for ways to prevent bankruptcy.
Financial analysis for the management personnel of enterprises, organizations, financial and accounting workers and analysts is the most important tool for determining the financial condition, identifying reserves for increasing profitability, and increasing the efficiency of financial and economic activities. It serves as the initial starting point for forecasting, planning and managing economic objects.
The results of a study of existing approaches to financial analysis indicate the presence different types financial analysis based on the following characteristics: role in management and organizational forms of implementation, content and completeness of the study, nature of the object of analysis, frequency of the study.
1. By role in management and organizational forms of implementation distinguish between external and internal financial analysis of the enterprise.
External financial analysis based on data only financial statements, which contains very limited information about the activities of the enterprise and does not make it possible to reveal all the secrets of the company’s success. It is carried out by interested contractors, owners or government bodies who do not have access to the internal information base of the enterprise.
Features of external financial analysis are: multiplicity of subjects of analysis, users of information about the activities of the organization; diversity of goals and interests of the subjects of analysis; availability of standard methods, accounting and reporting standards; orientation of the analysis only to public, external reporting of the enterprise; limitation of the analyst’s tasks as a consequence of the previous factor; maximum openness of the analysis results for users of information about the enterprise’s activities.
Main content external financial analysis carried out according to public financial statements, consists of analyzing absolute profit indicators, relative profitability indicators, financial condition and market stability, solvency of the enterprise and liquidity of its balance sheet, efficiency of use of borrowed capital, working capital turnover, economic diagnostics of the financial condition and rating assessment of the enterprise.
Thus, features of external financial analysis are:
Availability of a wide range of subjects of analysis;
Diversity of goals of information users;
Use of public reporting, which leads to a unified standard analysis methodology;
Solving only a certain range of tasks;
Availability of information about the activities of the enterprise to everyone;
Linking the implementation of reliable analysis based on objective data to the reporting deadlines (year, half-year, quarter).
Internal analysis is carried out by internal services (departments) of the enterprise. The information base of such analysis is much wider than its other types, since it involves the use of a variety of information circulating within the enterprise. The main content of internal financial analysis can be supplemented by other aspects that are important for optimizing management, for example, such as analysis of the efficiency of capital advances, analysis of the relationship between costs, income and profit.
The purpose of internal financial analysis is to ensure the systematic flow of funds and the placement of equity and borrowed capital in such a way as to create conditions for the normal functioning of the enterprise, obtaining maximum profits and eliminating the risk of bankruptcy.
The features of internal financial analysis are:
A narrow circle of subjects of analysis;
Orientation of the analysis results only to the internal user, as a rule, to the management of the enterprise; their maximum closeness;
Using all existing sources of information to conduct meaningful in-depth financial analysis;
Application, along with standard analysis techniques, of unregulated analytical research techniques; lack of regulation of analysis;
Carrying out deeper analytical work and making the right management decisions;
Conduct analyzes as needed based on management needs.
A complete financial analysis is carried out to study all aspects of the financial activities of an enterprise in a comprehensive manner.
Thematic financial analysis is limited to the study of individual aspects of the financial activities of an enterprise. The subject of thematic financial analysis may be: efficiency of use of assets; optimal financing of various: assets from separate sources; state of financial stability and solvency; optimality of the investment portfolio; optimality financial structure capital and a number of other aspects of the financial activity of the enterprise.
3. By the nature of the object of analysis The following types of financial analysis are distinguished.
Analysis of the financial activities of business entities in general. In the process of such analysis, the object of study is the financial activity of the organization (association) as a whole, without identifying its individual structural units and divisions.
Analysis of the financial activities of individual structural units and divisions(centers of economic responsibility). This analysis is based mainly on the results of the organization’s management accounting.
Analysis of individual financial transactions. The subject of such analysis may be individual transactions related to short-term or long-term financial investments, the financing of individual real projects, and others.
4. By period distinguish between preliminary, current and sequential financial analysis.
Preliminary financial analysis is associated with the study of the conditions of financial activity as a whole or the implementation of individual financial transactions of an organization (for example, assessing solvency if it is necessary to obtain a large bank loan).
Current (or operational) financial analysis is carried out in the process of implementing individual financial plans or carrying out individual financial transactions in order to promptly influence the results of financial activities. As a rule, it is limited short period time.
Prospective financial analysis is based on the study of current trends in changes in financial condition to substantiate the value of key indicators that determine the financial condition of the enterprise and its financial stability in the future from the position of their compliance with the development goals of the enterprise in the conditions of a changing external and internal environment and under the influence of decisions made .
1.2 Objects of analysis, assessment of the information content of financial statements from the perspective of the main groups of its users
The basis of financial analysis is its subject, object and research methods. The subject of financial analysis, i.e., what is studied within the framework of this science, is financial relations, financial resources and their flows, cause-and-effect relationships and methods of their research. As noted in section 1.1, the content and main objective function of financial analysis is to assess the financial condition and identify opportunities to improve the efficiency of a business entity through rational financial policy. This goal is achieved using the method inherent in this science.
Financial analysis method is a system of theoretical and cognitive categories, scientific tools and principles for studying the financial activities of business entities. The first two elements give a statistical characteristic of the method, and the last its dynamics.
The main element of the method is the scientific apparatus. The scientific apparatus of financial analysis is a set of general scientific and specific scientific methods for studying the financial and economic activities of the subjects of analysis. The categories of financial analysis are factor, model, interest, discount, option, cash flow, risk and others. They provide for the use of procedures such as comparison of counts, inspections, observations, etc.
The objects of financial analysis are business entities (enterprise, firm, organization, etc.), specific financial and economic indicators of financial condition.
The differentiation of financial and economic processes into their constituent elements allows us to more accurately and in detail identify the nature of their occurrence, features of development and the possibility of influencing the development of a particular phenomenon.
The main task of financial analysis is to construct a consistent set of data and select a system of interrelated indicators that could be most effectively used to assess management decisions and the financial condition of an economic entity.
The process of conducting financial analysis is described depending on the tasks:
As a preliminary screening tool when choosing an investment direction or possible merger options;
To assess the financial condition of the enterprise;
To assess business risk;
As a tool for predicting future financial conditions and results;
To study the problems of production management;
To assess the effectiveness of the organization's financial management;
To evaluate the performance of the company's management.
The choice of forms, methods of financial analysis and system of indicators is determined by specific tasks and needs various groups users (subjects) of information in the field of management decision making (Table 1.1).
Table 1.1 – Interests of subjects of market relations in the results of financial analysis of an economic entity
Continuation of Table 1.1
The range of main users of financial analysis results is very wide. The subjects of analysis are users of information, both directly and indirectly interested in the activities of the organization (Figure 1.1).
Users of financial analysis can be divided into three groups: internal, interested, and external.
Internal users include: managers of all ranks, employees of the accounting department, financial and economic department, and other services of the enterprise. Each of them uses information based on their interests.
Interested users are owner-shareholders, founders, for whom it is important to know the level of efficiency of resources, their investments, determine the amount of dividends and prospects for the development of the enterprise.
Figure 1.1 – Users of financial analysis information
Third party users are:
Potential investors who must accept or reject the decision to invest their funds in the enterprise;
Creditors who must be confident that their debt will be repaid;
Suppliers - with confidence in the solvency of their customers to receive payments on time;
Auditors - to assess the effectiveness of the financial condition;
Tax Inspectorate - to fulfill the budget revenue plan.
The first group includes those who are associated with the organization through participation in capital, debt and other economic relations. The second is those who use economic information for purely professional purposes. This part of the information users is not directly interested in the activities of the organization, but under the terms of the contract must protect the interests of the first group of users.
They distinguish not only the users of information, but also their economic interest (participation) in the economic activities of the company and the goal they achieve in the analysis.
For the owners of an organization, analytical information is necessary to assess the effectiveness of the enterprise and justify its development strategy. The interests of the owners lie in obtaining income on capital and the financial stability of the company. For investors and creditors, the purpose of financial analysis is to determine the liquidity, solvency and ability of the organization to generate a positive net cash flow in order to assess creditworthiness. For company managers – obtaining maximum information about the organization’s economic activities in order to make appropriate management decisions, which determines their interests as users of the results economic analysis. Representatives government agencies management, analytical information is necessary to assess compliance with state interests (timely payment of taxes and fees). Thus, tax inspectorates can use financial analysis tools and methods to verify tax returns and the accuracy of the amounts indicated in them. Other government agencies and authorities may also use the above analysis in the exercise of their authorities and functions.
Business partners (suppliers and buyers of products) and counterparties are interested in the solvency and sustainable competitiveness of the organization, which determines the company’s position in the market. Acquisition and merger decision makers need information to assess value. Financial analysis then serves as a valuable tool for determining the value and assessing the financial compatibility of potential merger candidates.
In the process of financial (external) analysis, the following are assessed:
Changes in absolute indicators of profit, revenue, costs;
Dynamics of relative performance indicators of an economic entity;
Market stability, liquidity and solvency of the organization;
Efficiency of use of equity capital and borrowed funds;
Efficiency of capital advances (investment analysis).
As a result, a financial diagnosis of the organization is carried out and its rating is given. At the same time, the analysis of financial statements serves the interests of various user groups.
1.3 Classification of methods and techniques of financial analysis
To achieve the main goal of analyzing the financial condition of an enterprise - its objective assessment and the impact of opportunities to improve operating efficiency, various methods analysis.
Method- This is the path of research, teaching. In a broad sense, method means ways, means and means of understanding reality, a set of interrelated principles and methods of studying processes, phenomena, objects in nature and society.
Financial analysis method This is a systematic, comprehensive study, interconnected study, processing and use of financial information in order to identify and mobilize reserves for the efficient use of financial resources and establish the optimal structure of their sources to ensure the sustainable development of the enterprise.
There are various classifications of financial analysis methods. The first level of classification identifies informal and formalized methods analysis. The first are based on the description of analytical procedures at a logical level, rather than on strict analytical dependencies. These include: methods of expert assessments, scenarios, psychological, morphological, comparisons, construction of systems of indicators, construction of systems of analytical tables, etc. The use of these methods is characterized by a certain subjectivity, since the intuition, experience and knowledge of the analyst are of great importance.
The second group includes methods that are based on fairly strict formalized analytical dependencies. They constitute the second level of classification and are divided into statistical, accounting and economic-mathematical.
Financial analysis uses qualitative and quantitative methods.
Qualitative methods Based on the analysis, they allow drawing conclusions about the financial condition of the enterprise, the level of liquidity and solvency, investment potential, and the creditworthiness of the organization.
Methods and techniques qualitative analysis include heuristic analysis methods, which include:
Method of expert assessments;
Scenario development, brainstorming;
Business games.
Heuristic methods are used primarily in the process of strategic analysis.
Quantitative methods allow, during the analysis, to assess the degree of influence of factors on the performance indicator, calculate regression coefficients for planning and forecasting purposes, and optimize the decision on the use of financial resources.
Quantitative methods include:
Statistical;
Accounting (double entry method and balance sheet method);
Economic and mathematical.
Statistical methods of financial analysis combine the following methods: comparisons, index, chain substitutions, elimination, graphical, tabular, dynamics series.
Comparison method allows you to evaluate the company’s performance, determine deviations from planned indicators, establish their causes and identify reserves. The main types of comparisons used in the analysis:
Reporting indicators with planned indicators;
Planned indicators with indicators of the previous period;
Reporting indicators with indicators of previous periods;
Performance indicators for each day;
Comparisons with industry average data;
Indicators of the quality of products of a given enterprise with indicators of similar competing enterprises.
The comparison method requires ensuring the comparability of the compared indicators (unity of assessment, comparability of calendar dates, elimination of the influence of differences in volume and assortment, quality, seasonal characteristics and territorial differences, geographical conditions, etc.).
In statistics, planning and analysis of economic activities, the main thing is to assess the quantitative role individual factors is the index method.
An index is a relative indicator that characterizes the change in a set of various quantities over a certain period. Thus, the price index reflects the average change in prices over a period; the index of the physical volume of products or trade turnover shows the change in their volume in comparable prices. There are chain and basic indices. The chain index characterizes the change in the indicator of a given period in comparison with the indicator of the previous period, and the base index reflects the change in the indicator of a given period in comparison with the indicator of the period taken as the basis of comparison. The product of chain indices is equal to the corresponding base index.
The index method is used in the study of complex phenomena, the individual elements of which are immeasurable. As relative indicators, indices are necessary to assess the implementation of planned tasks, to determine the dynamics of phenomena and processes. The index method makes it possible to decompose the relative and absolute deviations of the general indicator into factors; in the latter case, the number of factors should be equal to two, and the analyzed indicator is presented as their product.
The essence of the chain substitution method is that the reporting value of the first factor under study is substituted into the initial basic formula of the resulting indicator. The obtained result is compared with the base value of the resulting indicator, and this gives an assessment of the influence of the first factor. Next, the reporting value of the next factor under study is substituted into the formula obtained during the calculation. Comparing the obtained result with the previous one gives an assessment of the influence of the second factor. The procedure is repeated until the actual value of the last factor entered into the model is substituted into the original basic formula.
Elimination method makes it possible to isolate the effect of one factor on general indicators of production and economic activity and excludes the effect of other factors.
Graphical method is a means of illustrating economic processes and calculating a number of indicators and formatting the results of analysis. Graphic image Economic indicators are distinguished by purpose (comparison charts, chronological and control charts), as well as by the method of construction (linear, bar, circular, volumetric).
Tabular method used to visually display the procedure for calculating indicators, analysis results, plan implementation, dynamics of indicators, structural changes, identified reserves. Analytical tables are characterized by a relatively simple structure, compactness and clarity and contain not only the main one, but also Additional information for comparison (planned and average indicators, data for previous periods), as well as subtotals, deviations, percentages.
When using analytical tables, by grouping indicator values and arranging them in a certain order, the effect of information perception is significantly increased.
Dynamics series – this is a series of numbers that characterize the change in quantities over time. Analysis of time series makes it possible to determine:
The direction of change in indicators (increase, decrease, constancy or instability);
Presence of trends in changes in indicators;
Average level of indicators;
Rate of growth and increase in indicators.
There are interval time series that characterize results for certain periods (revenue from sales for the first, second, third quarters and for the year as a whole), and moment series that characterize economic phenomenon at a certain point in time (availability of own working capital at the beginning or end of the year).
There are five main techniques for conducting financial analysis (Figure 1.2): horizontal (trend) analysis, vertical analysis, financial ratios method, comparative analysis, factor analysis.
Horizontal (trend) analysis is based on the study of the dynamics of individual financial indicators over time. In the process of carrying out this analysis, the growth rates (gain) of individual indicators are calculated and determined general trends their changes (or trend). In financial analysis, the following forms of horizontal (trend) analysis are most widespread:
1) comparison of financial indicators of the reporting period with indicators of the previous period (for example, with indicators of the previous decade, month, quarter);
2) comparison of financial reporting indicators with indicators for the same period last year (for example, indicators for the second quarter of the reporting year with similar indicators for the second quarter of the previous year). This form is used in enterprises with pronounced seasonal characteristics of economic activity;
3) comparison of financial indicators for a number of previous periods. The purpose of this analysis is to identify trends in changes in individual indicators characterizing the results of the financial activities of the enterprise.
Vertical (structural) analysis– determination of the structure of the final indicators, identifying the impact of each reporting item on the result as a whole. In the process of performing this analysis, they calculate specific gravity individual structural components of financial indicators. In financial analysis, the following forms of vertical (structural) analysis are most widespread:
1) structural analysis assets. In the process of this analysis, the ratios (shares) of current and non-current assets are determined; structure of current assets used; structure of used non-current assets; composition of the enterprise's assets according to the degree of their liquidity; composition of the investment portfolio and others;
2) structural analysis of capital involves studying the structure of equity and debt capital; composition of equity capital used; structure of used borrowed capital by type; composition of the borrowed capital used according to the maturity of the obligations (repayment);
structural analysis of revenue from product sales. To conduct a structural analysis, the financial results statement must be presented in a form convenient for this, since each item is correlated with the volume of sales. With some exceptions, turnover affects each cost item to one degree or another, and therefore information about the ratio of an enterprise's costs to sales volume may be useful;
3) structural analysis of cash flows involves structuring cash flows for current (production), financial and investment activities. Each of these cash flows, in turn, can be more deeply structured into individual constituent elements.
Figure 1.2 – Financial analysis systems based on various methods of its implementation
Comparative (spatial) analysis is based on a comparison of the values of individual groups of similar financial indicators with each other. In the process of carrying out this analysis, the sizes of absolute and relative deviations of the compared indicators are calculated. In financial analysis, the following forms of comparative analysis are most widespread:
1) comparative analysis of the financial indicators of the enterprise and industry average indicators. In the process of this analysis, the degree of deviation of the main results of the financial activities of a given enterprise from the industry average is revealed in order to further improve its efficiency;
2) comparative analysis of the financial indicators of this enterprise and competing enterprises. During this analysis, the weaknesses of the enterprise’s activities are identified in order to develop measures to improve its competitive position;
3) comparative analysis of financial indicators of individual structural units and divisions of a given enterprise. Such an analysis is carried out in the context of the economic responsibility centers formed at the enterprise for the purpose of comparative assessment of the effectiveness of their financial activities;
4) comparative analysis of reported and planned (normative) financial indicators. In the process of this analysis, the degree of deviation of the reporting indicators from the planned (standard) ones is revealed, the reasons for these deviations are determined and appropriate adjustments are made to subsequent financial activities.
Analysis of financial indicators (ratios) is based on calculating the ratio of various absolute indicators to each other. Financial ratios are relative characteristics that make it possible to compare the results of activities of different enterprises, regardless of the quantitative parameters of absolute indicators over time. In the process of carrying out such an analysis, various relative indicators are determined that characterize various aspects of financial activity. In financial analysis, the following aspects of such analysis are most widespread.
1) Analysis of current activities . From the perspective of the circulation of funds, the activity of any enterprise is a process of continuous transformation of one type of asset into another:
… → DS → SS → NP → GP → Sr → DS → …,
where DS is cash; СС – raw materials in warehouse; WP – work in progress; GP – finished products; Wed – funds in settlements.
The effectiveness of current financial and economic activities can be assessed by the length of the operating cycle, which depends on the turnover of funds in various types of assets. Other things being equal, faster turnover indicates increased efficiency. Therefore, the main indicator of this group are indicators of the efficiency of use of material, labor and financial resources: production, capital productivity, turnover ratios in inventories and accounts.
2) Liquidity analysis . The indicators of this group allow you to describe and analyze the ability of the enterprise to meet its current obligations. The algorithm for calculating these indicators is based on the idea of comparing current assets (working capital) with short-term accounts payable. As a result of the calculation, it is established whether the enterprise is sufficiently provided with working capital necessary for settlements with creditors for current operations. Since different types of working capital have varying degrees liquidity (conversion into absolutely liquid funds), several liquidity ratios are calculated.
3) Financial stability analysis . Using these indicators, the composition of funding sources and the dynamics of the relationship between them are assessed. The analysis is based on the fact that sources of funds differ in the level of cost, degree of availability, level of reliability, degree of risk, etc.
4) Cost-benefit analysis . Indicators in this group are intended to assess the overall effectiveness of investing in a given enterprise. Unlike the indicators of the second group, they do not abstract from specific types of assets, but analyze the return on capital as a whole. The main indicators are therefore return on advanced capital and return on equity.
5) Analysis of the situation and activity in the capital market . As part of this analysis, spatio-temporal comparisons are made of indicators characterizing the position of the enterprise on the securities market: dividend yield, earnings per share, share value, etc. This fragment of the analysis is carried out mainly in companies registered on securities exchanges and selling their shares there. Any enterprise that has temporarily available funds and wants to invest it in securities also focuses on the indicators of this group.
It should be said that the procedural part of the methodology for analyzing financial and economic activities is regulated using a number of principles: systematicity, complexity, unity of the information base, materiality, consistency of schemes of analytical procedures, comparability of results , purposefulness.
Carrying out an effective financial analysis of the activities of a business entity involves developing a system of sequentially implemented measures based on uniform principles that subordinate all elements of the system and make it possible to provide a strictly defined circle of users with the most relevant information at the moment.
1.4 Test questions and tests for section 1
Control questions
1) Define the term “analysis”.
2) Define financial analysis, name its subject, objects and list the features of its organization.
3) What place does financial analysis occupy in the enterprise management system?
4) What are the objectives of conducting a financial analysis of an enterprise’s activities?
5) What are the requirements for information used for financial analysis?
6) What is the difference between retrospective financial analysis and prospective financial analysis?
7) Give reasons for carrying out a prospective analysis of the enterprise's activities.
8) What is the main difference between financial analysis and economic analysis?
9) What methods are inherent in others scientific disciplines, are used in the financial analysis process?
10) Describe the main systems of financial analysis. Justify the need for the integrated use of various systems when carrying out financial analysis of an enterprise's activities.
11) What is factor analysis? What methods are used within factor analysis?
12) How to conduct horizontal analysis?
13) How does horizontal analysis of financial statements differ from vertical analysis?
14) Name the main users of financial analysis and determine the specifics of their goals and needs for analytical information.
15) What are financial ratios and what is their role in analysis?
16) What groups of ratios are used in the process of financial analysis?
17) Is it possible to use unreliable but relevant information for the needs of financial analysis?
18) On what principles is the financial analysis of an enterprise based? Describe each of them.
19) Describe statistical methods of financial analysis.
20) Do you think it is necessary to adapt the techniques and methods of financial analysis for certain sectors of the economy? Why?
1. In the traditional sense, financial analysis is:
a) a set of methods, techniques and procedures for assessing the effectiveness and efficiency of the financial and economic activities of an enterprise;
b) a method for assessing liquidity and solvency for making decisions regarding declaring an enterprise bankrupt;
c) a method for assessing and forecasting the financial condition of an enterprise based on its accounting (financial) statements;
d) a system of indicators that give an accurate and truthful picture of the possibility of operating the enterprise in the near future.
2.Financial analysis is an integral part of:
a) analysis of the economic activities of the enterprise;
b) analysis of the financial activities of the enterprise;
c) analysis of the financial and economic activities of the enterprise;
d) analysis of production accounting.
3. What place does financial analysis occupy in the enterprise management system:
a) forms effective system control;
b) allows you to evaluate the effectiveness of activities in the previous period and provides information for making decisions in the future;
c) forms an effective enterprise management system;
d) all answers are correct.
4. Traditional methods of financial analysis include:
a) quantitative and qualitative;
b) measurement, assessment, observation, interview, document verification;
c) horizontal, vertical, comparative, analysis of relative indicators, factorial;
d) organization, planning, control, analysis.
5. The main source of information when conducting external financial analysis is:
a) accounting and financial reporting data;
b) operational production accounting data, standards;
c) data from special surveys;
d) estimates (budgets).
6. Assessing the efficiency of using an enterprise’s financial resources is of particular interest to:
a) employees of the enterprise;
b) managers, owners, creditors of the enterprise;
c) tax authorities;
d) all answers are correct.
7. A feature of external financial analysis is:
a) the object of study is the relationship of the enterprise with external contractors;
b) legislative regulation;
c) analysis by independent analysts;
d) there is no correct answer.
8. Depending on the scope of the study, financial analysis is divided into:
a) industry and internal;
b) complete and thematic;
c) complete, thematic and detailed;
d) external and internal.
9. The subject of financial analysis is:
a) financial resources and their flows;
b) cash flows;
c) commodity flows;
d) investment flows.
10. The method of financial analysis is:
a) construction of systems of indicators and analytical tables;
b) analytical tools to assess the impact of the political situation in the country;
c) financial resources and their flows;
d) a system of theoretical-cognitive categories, scientific tools and regular principles for studying financial activity.
11. The essence of vertical analysis is:
a) studying the dynamics of individual financial indicators over time;
b) determining the structure of the outcome indicators;
c) comparison of individual groups of financial indicators with each other;
d) calculating various ratios of absolute indicators among themselves.
12. The horizontal method of financial analysis is:
a) comparison of each reporting item with the previous period;
b) determining the structure of the final financial indicators;
c) determination of the main trend in the dynamics of indicators;
d) calculation of financial indicators.
13. Assessment of the dynamics of financial indicators over time is carried out using:
a) vertical analysis;
b) horizontal analysis;
c) comparative analysis;
d) financial ratios.
14. Examples of informal methods could be:
a) expert assessments, construction of a system of indicators or analytical tables;
b) construction of dynamics series: absolute growth, relative growth, growth rate, growth rate;
c) accounting of operations, inventory management, methods of technical wear and tear and replacement of equipment, game theory, methods of economic cybernetics;
d) all answers are correct.
15. Which type of financial analysis involves grouping assets depending on the speed of their conversion into cash, and liabilities - depending on the urgency of their repayment:
a) liquidity analysis;
b) business activity analysis;
c) cost-benefit analysis;
d) financial stability analysis.
16. Analysis of what indicators allows us to evaluate the efficiency and profitability of an enterprise:
a) liquidity;
b) profitability;
c) business activity;
d) financial stability.
17. Which type of financial analysis allows us to identify and evaluate the impact of individual quantities on the performance indicator:
a) vertical;
b) horizontal;
c) factorial;
d) coefficient.
18. Methodological basis financial analysis is based on the following principles:
a) complexity, unity of the information base;
b) systematicity, materiality, unity and consistency of schemes of analytical procedures;
c) comparability of results, focus;
d) all answers are correct.
19. The analyst calculated the growth rate of sales revenue for the current year compared to the previous year. In this case, it is necessary to apply the following methods of financial analysis:
a) comparative analysis;
b) vertical analysis;
c) financial ratio method;
d) horizontal analysis,
20. Techniques for assessing the financial condition of an enterprise are:
a) analysis of relative indicators;
b) factor analysis;
c) solvency analysis;
d) credit analysis;
e) comparative analysis.
21. In deterministic modeling of factor systems, the following types are distinguished:
a) additive models;
c) multiple models;
d) combined models.
22. Indicate the methods of stochastic factor analysis:
a) correlation;
b) dispersive;
c) multidimensional factor analysis;
d) cluster analysis;
e) all of the above.
23. External financial analysis has the following features:
a) focus on public reporting of the enterprise and maximum openness of analysis results;
b) diversity of goals and interests of the subjects of analysis and the presence of a large number of user objects;
c) targeting external users;
d) analysis by external analysts;
e) external subject of study.
24. The main content of external financial analysis is:
a) analysis of issues identified by external users;
b) analysis of issues identified by external analysts;
c) analysis of absolute indicators of profit, profitability and financial stability;
d) analysis of liquidity, solvency, efficiency of use of property and capital;
e) economic diagnostics of the financial condition of the enterprise.
Financial analysis at an enterprise is needed for an objective assessment of the economic and financial condition in periods of past, present and projected future activity. To identify weak production areas, areas of problems, and identify strong factors that management can rely on, the main financial indicators are calculated.
An objective assessment of a company’s position in terms of economics and finances is based on financial ratios, which are a manifestation of the relationship between individual accounting data. The purpose of financial analysis is to achieve the solution of a selected set of analytical problems, that is, a specific analysis of all primary sources of accounting, management and economic reporting.
Main goals of economic and financial analysis
If the analysis of the main financial indicators of an enterprise is considered as identifying the true state of affairs in the enterprise, then the results will provide answers to the following questions:
- the company’s ability to invest funds in investing in new projects;
- the current course of affairs in relation to material and other assets and liabilities;
- the state of loans and the company’s ability to repay them;
- the existence of reserves to prevent bankruptcy;
- identifying prospects for further financial activities;
- assessment of the enterprise in terms of value for sale or re-equipment;
- tracking the dynamic growth or decline of economic or financial activities;
- identifying reasons that negatively affect business results and finding ways out of the situation;
- review and comparison of income and expenses, identification of net and total profit from implementation;
- studying the dynamics of income for basic goods and in general from all sales;
- determining the portion of income used to reimburse costs, taxes and interest;
- studying the reasons for the deviation of the amount of balance sheet profit from the amount of sales income;
- study of profitability and reserves to increase it;
- determining the degree of compliance of the enterprise's own funds, assets, liabilities and the amount of borrowed capital.
Stakeholders
An analysis of the company's main financial indicators is carried out with the participation of various economic representatives of departments interested in obtaining the most reliable information about the affairs of the enterprise:
- internal subjects include shareholders, managers, founders, audit or liquidation commissions;
- external ones are represented by creditors, audit firms, investors and government officials.
Financial analysis capabilities
The initiators of the analysis of the enterprise’s work are not only its representatives, but also employees of other organizations interested in determining the actual creditworthiness and the possibility of investing in the development of new projects. For example, bank auditors are interested in the liquidity of a firm's assets or its current ability to pay its bills. Legal and individuals Those wishing to invest in the development fund of a given enterprise try to understand the degree of profitability and risks of the investment. An assessment of key financial indicators using a special technique predicts the bankruptcy of an institution or indicates its stable development.
Internal and external financial analysis
Financial analysis is part of the general economic analysis of the enterprise and, accordingly, part of a complete economic audit. The full analysis is divided into internal management and external financial audits. This division is due to two practically established systems in accounting - management and financial accounting. The division is recognized as conditional, since in practice external and internal analysis complement each other with information and are logically interconnected. There are two main differences between them:
- by accessibility and breadth of the information field used;
- degree of application of analytical methods and procedures.
Internal analysis of key financial indicators is carried out to obtain summarized information within the enterprise and determine results last period reporting, identifying free resources for reconstruction or re-equipment, etc. To obtain results, all available indicators are used, which are also applicable when researched by external analysts.
External financial analysis is performed by independent auditors, outside analysts who do not have access to the internal results and indicators of the company. External audit methods assume some limitation of the information field. Regardless of the type of audit, its methods and methods are always the same. What is common in external and internal analysis is the derivation, generalization and detailed study of financial ratios. These basic financial indicators of the enterprise’s activities provide answers to all questions regarding the work and prosperity of the institution.
Four main indicators of financial health
The main requirement for the break-even operation of an enterprise in market conditions is economic and other activities that ensure profitability and profitability. Economic activities are aimed at reimbursing expenses with income received, generating profit to satisfy the economic and social needs of team members and the material interests of the owner. There are many indicators to characterize activities, in particular these include gross income, turnover, profitability, profit, costs, taxes and other characteristics. For all types of enterprises, the main financial indicators of the organization’s activities are highlighted:
- financial stability;
- liquidity;
- profitability;
- business activity.
Financial stability indicator
This indicator characterizes the degree of correlation between the organization’s own funds and borrowed capital, in particular, how much borrowed funds account for 1 ruble of money invested in tangible assets. If such an indicator when calculated is obtained with a value of more than 0.7, then the financial position of the company is unstable, the activity of the enterprise to some extent depends on attracting external borrowed funds.
Liquidity characteristics
This parameter indicates the main financial indicators of the company and characterizes the sufficiency of the organization’s current assets to pay off its own short-term debts. It is calculated as the ratio of the value of current current assets to the value of current passive liabilities. The liquidity indicator indicates the possibility of converting the company's assets and values into cash capital and shows the degree of mobility of such transformation. The liquidity of an enterprise is determined from two perspectives:
- the length of time required to convert current assets into cash;
- the ability to sell assets at a specified price.
To identify the true indicator of liquidity in an enterprise, the dynamics of the indicator are taken into account, which allows not only to determine the financial strength of the company or its insolvency, but also to identify the critical state of the organization’s finances. Sometimes the liquidity ratio is low due to the increased demand for the industry's products. Such an organization is quite liquid and has high degree solvency, since its capital consists of cash and short-term loans. The dynamics of the main financial indicators demonstrate that the situation looks worse if the organization has working capital only in the form of a large number of stored products in the form of current assets. To convert them into capital, a certain amount of time is required for implementation and the presence of a customer base.
The main financial indicators of the enterprise, which include liquidity, show the state of solvency. The company's current assets must be sufficient to repay current short-term loans. In the best situation, these values are approximately at the same level. If an enterprise has much more working capital in value than short-term loans, then this indicates an ineffective investment of money by the enterprise in current assets. If the amount of working capital is lower than the cost of short-term loans, this indicates the imminent bankruptcy of the company.
As a special case, there is an indicator of quick current liquidity. It is expressed in the ability to pay off short-term liabilities using the liquid part of assets, which is calculated as the difference between the entire working capital and short-term liabilities. International standards determine the optimal level of the coefficient in the range of 0.7-0.8. The presence of a sufficient number of liquid assets or net working capital within an enterprise attracts creditors and investors to invest money in the development of the enterprise.
Profitability indicator
The main financial indicators of an organization's effectiveness include the value of profitability, which determines the efficiency of using the funds of the company's owners and generally shows how profitable the operation of the enterprise is. The profitability value is the main criterion for determining the level of stock exchange quotes. To calculate the indicator, the amount of net profit is divided by the amount of average profit from the sale of the company's net assets for the selected period. The indicator reveals how much net profit each unit of goods sold brought.
The generated income ratio is used to compare the income of the desired enterprise in comparison with the same indicator of another company operating under a different taxation system. The calculation of the main financial indicators of this group provides for the ratio of profit received before taxes and due interest to the assets of the enterprise. As a result, information appears about how much profit each monetary unit invested in the company’s assets brought in for work.
Business activity indicator
Characterizes how much finance is obtained from the sale of each monetary unit of a certain type of asset and shows the turnover rate of financial and material resources organizations. For the calculation, the ratio of net profit for the selected period to the average cost of costs in material terms, money and short-term securities is taken.
There is no standard limit for this indicator, but the management forces of the company strive to accelerate turnover. The constant use of loans from outside in economic activity indicates insufficient financial receipts as a result of sales, which do not cover production costs. If the value of current assets on the organization's balance sheet is overstated, this results in the payment of additional taxes and interest on bank loans, which leads to loss of profit. A low number of active funds leads to delays in fulfilling production plans and the loss of profitable commercial projects.
For an objective, visual examination of economic activity indicators, special tables are compiled that show the main financial indicators. The table contains the main characteristics of work for all parameters of financial analysis:
- inventory turnover ratio;
- indicator of the company's receivables turnover over time;
- value of capital productivity;
- resource return indicator.
Inventory turnover ratio
Shows the ratio of revenue from the sale of goods to the amount in monetary terms of inventories at the enterprise. The value characterizes the speed of sale of material and commodity resources classified as a warehouse. An increase in the ratio indicates a strengthening of the organization’s financial position. The positive dynamics of the indicator is especially important in conditions of large accounts payable.
Accounts receivable turnover ratio
This ratio is not considered as the main financial indicators, but is an important characteristic. It shows the average time period in which the company expects payment to be received after the sale of goods. The calculation is based on the ratio of accounts receivable to average daily sales revenue. The average is obtained by dividing the total revenue for the year by 360 days.
The resulting value characterizes the contractual terms of work with customers. If the indicator is high, it means that the partner provides preferential working conditions, but this causes caution among subsequent investors and creditors. Small value indicator leads, in market conditions, to a revision of the contract with this partner. An option for obtaining the indicator is a relative calculation, which is taken as the ratio of sales revenue to the company's receivables. An increase in the ratio indicates an insignificant debt of debtors and high demand for products.
Capital productivity value
The main financial indicators of the enterprise are most fully complemented by the capital productivity indicator, which characterizes the rate of turnover of finance spent on the acquisition of fixed assets. The calculation takes into account the ratio of revenue from goods sold to the annual average cost of fixed assets. An increase in the indicator indicates a low cost of expenses in terms of fixed assets (machines, equipment, buildings) and a high volume of goods sold. Great importance capital productivity indicates insignificant production costs, and low capital productivity indicates inefficient use of assets.
Resource efficiency ratio
For the most complete concept How the main financial indicators of the organization’s activities develop, there is an equally important coefficient of return on resources. It shows the degree of efficiency of the enterprise’s use of all assets on the balance sheet, regardless of the method of acquisition and receipt, namely, how much revenue is received for each monetary unit of fixed and current assets. The indicator depends on the procedure for calculating depreciation adopted at the enterprise and reveals the degree of illiquid assets that are disposed of to increase the ratio.
Main financial indicators of LLC
Income source management ratios show the financial structure and characterize the protection of the interests of investors who have made long-term injections of assets into the development of the organization. They reflect the company's ability to repay long-term loans and credits:
- share of loans in the total amount of financial sources;
- ownership ratio;
- capitalization ratio;
- coverage ratio.
The main financial indicators are characterized by the volume of borrowed capital in the total mass of financial sources. The leverage ratio measures the specific amounts of assets purchased with borrowed money, which includes the firm's long-term and short-term financial liabilities.
The ownership ratio supplements the main financial indicators of the enterprise by characterizing the share of equity capital spent on the acquisition of assets and fixed assets. A guarantee of obtaining loans and investing investor money in a project for the development and re-equipment of an enterprise is the indicator of the share of own funds spent on assets in the amount of 60%. This level is an indicator of the stability of the organization and protects it from losses during a downturn in business activity.
The capitalization ratio determines the proportional relationship between borrowed funds from various sources. To determine the proportion between equity and borrowed finance, the inverse leverage ratio is used.
The interest coverage indicator or coverage indicator characterizes the protection of all types of creditors from non-payment of interest rates. This ratio is calculated as the ratio of the amount of profit before interest to the amount of money intended to pay off interest. The indicator shows how much money the company earned to pay borrowed interest during the selected period.
Market activity indicator
The main financial indicators of an organization in terms of market activity indicate the position of the enterprise in the securities market and allow managers to judge the attitude of creditors to the general activities of the company for the past period and in the future. The indicator is considered as the ratio of the initial book value of the share, the income received on it and the current market price for given time. If all other financial indicators are within the acceptable range, then the market activity indicator will also be normal if the market value of the stock is high.
In conclusion, it should be noted that financial analysis of the economic structure of an organization is important for all stakeholders, shareholders, short-term and long-term creditors, founders and management.
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