To assess the financial analysis of an enterprise, a system of indicators is used, included in the following groups:
1) liquidity ratios;
2) profitability ratios;
3) coefficients of market activity;
4) financial stability ratios;
5) coefficients of business activity.

Liquidity ratios.
Liquidity - the ability of the company to meet its short-term obligations (up to 12 months). If current assets (working capital) exceed short-term liabilities, then the company is liquid. To measure liquidity, a system of coefficients is used. Consider the most important:
1) Total Liquidity Ratio = (Current Assets)/(Total Liabilities)
The indicator gives an overall assessment of the liquidity of assets, showing how many rubles of current assets account for 1 ruble of current liabilities. The value of the indicator may vary in different industries, its growth in dynamics is considered as a positive trend. Meaning - the company is recommended to have working capital 2 times more than its short-term accounts payable
2) Quick liquidity ratio = (Current stocks - Stocks) / (Current current liabilities)
The indicator should be greater than 1. The meaning of the criterion is that the company should strive to ensure that the amount of credit provided to customers (accounts receivable) does not exceed the amount of accounts payable. The growth of the indicator is a positive trend if it is not associated with an unreasonable increase in receivables. If the growth of this indicator is associated with an unjustified increase in receivables, then this does not characterize the activity of the enterprise on the positive side.
3) absolute liquidity ratio = (current assets)/(short-term liabilities)
The absolute liquidity ratio must be greater than 0.2. The ratio shows what part of short-term liabilities, if necessary, can be repaid immediately.
4) The value of own working capital (SOS) \u003d Current assets - Short-term liabilities
The value of own working capital (SOS) \u003d current assets - short-term liabilities. This indicator shows how much current assets will remain at the disposal of the enterprise after the settlement of short-term obligations. If it's Profit Ratios.
1) Return on Equity = Net Income / Equity
2) Return on Advance Equity = Net Income / Advance Capital
3) Return on Assets = Net Income / Average Annual Asset Value
4) Sales profitability indicator = Net profit / Sales proceeds

Efficiency ratios characterize the efficiency of the use of material and financial resources of the enterprise.
1) Asset turnover = Sales proceeds / Assets
2) Accounts receivable turnover = Sales revenue / Average accounts receivable
3) Loan debt turnover = (Average debt / Cost price) × 360 days
Answer in days.
4) Inventory turnover in turnover = Cost of sales / Average inventory

Indicators of financial stability.
1) Equity concentration ratio (sustainability ratio) = Equity / Total economic assets advanced into the enterprise's activities (assets)
Must be greater than 0.6. The growth of the indicator is a positive trend. It characterizes the share of the property of the owners of the enterprise in the total amount of funds advanced in its activities.
2) Financial stability ratio = Total business assets / Equity capital)
The decrease in the indicator is a positive trend. If the coefficient = 1, then the owners fully finance their enterprise, if it = 0.25, then for every 1 rub. 25 kopecks invested in assets, 25 kopecks - borrowed.
3) Debt capital concentration ratio = Debt capital / Total business assets (assets)
The decline is a positive trend.
4) Equity concentration ratio + Debt concentration ratio = 1
5) Long-term investment structure ratio = Long-term liabilities / Non-current assets
Shows what part of fixed assets and other non-current assets is financed by external investors, that is, it belongs to them, and not to the owners of the enterprise.
6) Long-term leverage ratio = Long-term liabilities / (Long-term liabilities + equity))
It characterizes the capital structure. Growth in dynamics is a negative trend, as it means that the company is increasingly dependent on external investors.
7) The ratio of own and borrowed funds \u003d Equity / Borrowed capital (current liabilities)
Growth in dynamics is a positive trend. An enterprise in the general sense is considered solvent if the value of its total assets exceeds the value of external liabilities.
8) Level of financial leverage = Long-term borrowings / Equity
It characterizes how many rubles of borrowed capital account for 1 ruble. own funds. The higher the value, the higher the risk associated with the company.

Indicators of market activity of the enterprise.
The indicators of this group characterize the results and efficiency of the current main production activity. An assessment of business activity at a qualitative level can be obtained as a result of comparing the activities of this enterprise and enterprises related in the field of capital investment. Such qualitative criteria are: the breadth of product sales markets, the reputation of the enterprise, etc. Quantitative assessment is given in two areas:
- the degree of implementation of the plan for the main indicators, ensuring the specified rates of their growth;
- the level of efficiency in the use of enterprise resources.

1) Earnings per share = (Net income - Preferred dividends) / Total number of ordinary shares outstanding
2) The ratio of the market price of a share and earnings per share = Market value / Earnings per share
3) Book value per share = (Value of equity – Value of preferred shares) / Number of shares outstanding
4) The ratio of the market and book value of the share = Market value / Book value
5) Share current yield = Dividend per share / Market value of 1 share
6) Ultimate share return = (Dividend per share + (Purchase price - Sale price)) / Market price or purchase price
7) Share of dividends paid = Dividend per 1 share / Net profit per 1 share(less than 1)

Before proceeding directly to the topic of the article, it is necessary to understand the essence of the concept of the financial activity of an enterprise.

Financial activity in the enterprise- this is financial planning and budgeting, financial analysis, management of financial relations and monetary funds, determination and implementation of investment policy, organization of relations with budgets, banks, etc.

Financial activity solves such problems as:

• providing the enterprise with the necessary financial resources for funding its production and marketing activities, as well as for the implementation of investment policy;
• use of opportunities to improve efficiency enterprise activities;
• ensure timely repayment current and long-term liabilities;
• determination of optimal credit conditions to expand the volume of sales (deferment, installment plan, etc.), as well as the collection of formed receivables;
• motion control and redistribution financial resources within the enterprise.

Analysis Feature

Financial indicators make it possible to measure the effectiveness of work in the above areas. For example, liquidity ratios measure the ability to repay short-term obligations on time, while financial strength ratios, which are the ratio of equity to debt, measure the ability to meet obligations in the long term. The financial stability ratios of the second group, which show the adequacy of working capital, make it possible to understand the availability of financial resources to finance activities.

Indicators of profitability and business activity (turnover) show how the company uses the available opportunities to improve work efficiency. Analysis of receivables and payables allows you to understand the credit policy. Considering that profit is formed under the influence of all factors, it can be argued that the analysis of financial results and profitability analysis allows us to obtain a cumulative assessment of the quality of the financial activity of an enterprise.

The effectiveness of financial activity can be judged by two aspects:

1. results financial activities;
2. Financial condition enterprises.

The first is expressed by how effectively the company can use the assets it has, and most importantly, whether it is able to generate profit and to what extent. The higher the financial result for each ruble of invested resources, the better the result of financial activity. However, profitability and turnover are not the only indicators of a company's financial performance. The opposite and related category is the level of financial risk.

The current financial condition of the enterprise just means how sustainable is the economic system. If the company is able to meet its obligations in the short and long term, ensure the continuity of the production and marketing process, and also reproduce the resources expended, then it can be assumed that, while maintaining the current market conditions, the enterprise will continue to work. In this case, the financial condition can be considered acceptable.

If the company is able to generate high profits in the short and long term, then we can talk about efficient financial performance.

In the process of analyzing the financial activities of an enterprise, both in the analysis of financial results and in the process of assessing the state, the following methods should be used:

• horizontal analysis - analysis speakers financial result, as well as assets and sources of their financing, will determine the general trends in the development of the enterprise. As a result, one can understand the medium and long term of his work;
• vertical analysis - assessment of the formed structures assets, liabilities and financial results will reveal imbalances or make sure the current performance of the company is stable;
• comparison method - comparison data with competitors and industry averages will allow you to determine the effectiveness of the company's financial activities. If the enterprise demonstrates higher profitability, then we can talk about high-quality work in this direction;
• coefficient method - in the case of studying the financial activities of an enterprise, this method is important, since its use will allow you to get a set indicators, which characterize both the ability to demonstrate high results and the ability to maintain stability.
• factor analysis - allows you to determine the main factors that influenced the current financial position and financial performance of the company.

Analysis of the financial results of the enterprise

Investors are interested in profitability, as it allows you to evaluate the effectiveness of management activities and the use of capital that was provided by the latter for the purpose of making a profit. Other participants in financial relationships, such as creditors, employees, suppliers and customers are also interested in understanding the profitability of the company, as this allows you to estimate how smoothly the company will operate in the market.

Therefore, the analysis of profitability allows you to understand how effectively the management implements the company's strategy for the formation of financial results. Given the large number of tools that are in the hands of an analyst when evaluating profitability, it is important to use a combination of different methods and approaches in the process.

Although firms report net income, the overall financial result is considered more important, as a measure that better shows the profitability of a company's shares. There are two main alternative approaches to assessing profitability.

First approach provides for consideration of various transformations of the financial result. Second approach– indicators of profitability and profitability. In the case of the first approach, such indicators as the profitability of the company's shares, horizontal and vertical analysis, assessment of the growth of indicators, consideration of various financial results (gross profit, profit before tax, and others) are used. In the case of the second approach, the return on assets and return on equity indicators are used, which provide for obtaining information from the balance sheet and the income statement.

These two metrics can be broken down into profit margin, leverage, and turnover to better understand how a company generates wealth for its shareholders. In addition, margin, turnover and leverage ratios can be analyzed in more detail and broken down into different lines of financial statements.

Analysis of financial performance of the enterprise

It is worth noting that the most important method is the method of indicators, it is also the method of relative indicators. Table 1 presents groups of financial ratios that are best suited for performance analysis.

Table 1 - The main groups of indicators that are used in the process of assessing the financial result of the company

It is worth considering each of the groups in more detail.

Turnover indicators (indicators of business activity)

Table 2 presents the most commonly used business activity ratios. It shows the numerator and denominator of each coefficient.

Table 2 - Turnover indicators

Indicator of business activity (turnover)	Numerator	Denominator
	Cost price	Average inventory value
	Number of days in the period (for example, 365 days if using yearly data)	inventory turnover
		Average value of accounts receivable
	Number of days in the period	Accounts receivable turnover
	Cost price	Average value of accounts payable
	Number of days in the period	Accounts payable turnover
Working capital turnover		Average cost of working capital
		Average cost of fixed assets
		Average asset value

Interpretation of turnover indicators

Inventory turnover and one turnover period . Inventory turnover is the backbone of operations for many organizations. The indicator indicates resources (money) that are in the form of reserves. Therefore, such a ratio can be used to indicate the effectiveness of inventory management. The higher the inventory turnover ratio, the shorter the period of inventory in the warehouse and in production. In general, the inventory turnover and the period of one inventory turnover should be estimated according to industry standards.

Tall Inventory turnover ratios compared to industry norms can indicate high inventory management efficiency. However, it is also possible that this turnover ratio (and a low one-period turnover rate) could indicate that the company is not building up adequate inventory, which could hurt earnings.

To assess which explanation is more likely, an analyst can compare a company's earnings growth with industry growth. Slower growth combined with higher inventory turnover may indicate insufficient inventory levels. Revenue growth at or above industry growth supports the interpretation that high turnover reflects greater efficiency in inventory management.

Short an inventory turnover ratio (and therefore a high turnover period) relative to the industry as a whole can be an indicator of slow inventory movement in the operating process, perhaps due to technological obsolescence or a change in fashion. Again, by comparing a company's sales growth with the industry, one can get the gist of current trends.

The turnover of receivables and the period of one turnover of receivables . The receivables turnover period represents the time elapsed between sale and collection, which reflects how quickly the company collects cash from customers to whom it offers credit.

Although it is more correct to use credit sales as the numerator, information on credit sales is not always available to analysts. Therefore, revenue reported in the income statement is generally used as the numerator.

A relatively high receivables turnover ratio may indicate a high efficiency of commodity lending to clients and collection of money by them. On the other hand, a high receivables turnover ratio may indicate that credit or debt collection terms are too tight, indicating a possible loss of sales to competitors who offer softer terms.

Relatively low receivables turnover tends to raise questions about the effectiveness of credit and collection procedures. As with inventory management, comparing company and industry sales growth can help an analyst assess whether sales are lost due to a strict credit policy.

In addition, by comparing uncollectible receivables and actual loan losses with past experience and peers, it can be assessed whether low turnover reflects a problem in managing commercial lending to clients. Companies sometimes provide information about the line of receivables. This data can be used in conjunction with turnover rates to draw more accurate conclusions.

Accounts payable turnover and accounts payable turnover period . The accounts payable turnover period reflects the average number of days a company spends paying its suppliers. The accounts payable turnover ratio indicates how many times a year a company conditionally covers debts to its creditors.

For the purposes of calculating these indicators, it is assumed that the company makes all its purchases with the help of a commodity (commercial) loan. If the volume of goods purchased is not available to the analyst, then the cost of goods sold indicator can be used in the calculation process.

Tall the accounts payable turnover ratio (low period of one turnover) in relation to the industry may indicate that the company does not fully use the available credit funds. On the other hand, this may mean that the company uses a system of discounts for earlier payments.

Too low the turnover ratio may indicate problems with the timely payment of debts to suppliers or the active use of soft credit conditions for the supplier. This is another example of when other metrics should be looked at to form weighted conclusions.

If the liquidity indicators indicate that the company has sufficient cash and other short-term assets to pay liabilities, and yet the accounts payable turnover period is high, then this will indicate the supplier's lenient credit conditions.

Working capital turnover . Working capital is defined as current assets minus current liabilities. Working capital turnover indicates how efficiently a company generates income from working capital. For example, a working capital ratio of 4 indicates that the company generates $4 of revenue for every $1 of working capital.

A high value of the indicator indicates greater efficiency (i.e., the company generates a high level of income relative to a smaller amount of working capital raised). For some companies, the amount of working capital may be close to zero or negative, which makes this indicator difficult to interpret. The next two coefficients will be useful in these circumstances.

Turnover of fixed assets (capital productivity) . This metric measures how efficiently a company generates returns on its fixed investment. As a rule, more tall the turnover ratio of fixed assets shows a more efficient use of fixed assets in the process of generating income.

Low a value may indicate inefficiency, capital intensity of the business, or that the business is not operating at full capacity. In addition, the turnover of fixed assets may be formed under the influence of other factors not related to business efficiency.

The rate of return on assets will be lower for companies whose assets are newer (and therefore less depreciated, which is reflected in the financial statements by a higher carrying value) compared to companies with older assets (which are more depreciated and therefore are reflected at a lower book value (subject to the use of the revaluation mechanism).

The rate of return on assets can be unstable, since incomes can have steady growth rates, and the increase in fixed assets is jerky; therefore, each annual change in the indicator does not necessarily indicate important changes in the company's performance.

Asset turnover . The total asset turnover ratio measures the overall ability of a company to generate income with a given level of assets. A ratio of 1.20 would mean that the company generates 1.2 rubles of income for every 1 ruble of attracted assets. A higher ratio indicates a greater efficiency of the company.

Since this ratio includes both fixed assets and working capital, poor management of working capital can distort the overall interpretation. Therefore, it is useful to analyze working capital and return on assets separately.

Short the asset turnover ratio may indicate unsatisfactory performance or a relatively high level of capital intensity of the business. The indicator also reflects strategic management decisions: for example, the decision to take a more labor-intensive (and less capital-intensive) approach to your business (and vice versa).

The second important group of indicators are profitability and profitability ratios. These include the following ratios:

Table 3 - Indicators of profitability and profitability

Indicator of profitability and profitability	Numerator	Denominator
	Net profit	Average asset value
	Net profit
Gross margin	Gross profit
	Revenue from sales
	Net profit
	Average asset value	Net profit
	Average cost of equity	Net profit

Profitability indicator assets shows how much profit or loss the company receives for each ruble of invested assets. A high value of the indicator indicates the effective financial activity of the enterprise.

Return on equity is a more important indicator for the owners of the enterprise, since this ratio is used when evaluating investment alternatives. If the value of the indicator is higher than in alternative investment instruments, then we can talk about the quality of the financial activity of the enterprise.

Margin metrics provide insight into sales performance. Gross margin shows how much more resources the company has left for management and sales expenses, interest expenses, etc. Operating margin demonstrates the effectiveness of the organization's operational process. This indicator allows you to understand how much operating profit will increase with an increase in sales by one ruble. net margin takes into account the influence of all factors.

Return on assets and equity allows you to determine how much time it takes for the company to pay off the funds raised.

Analysis of the financial condition of the enterprise

The financial condition, as mentioned above, means the stability of the current financial and economic system of the enterprise. To study this aspect, the following groups of indicators can be used.

Table 4 - Groups of indicators that are used in the process of assessing the state

Liquidity ratios (liquidity ratios)

Liquidity analysis, which focuses on cash flow, measures a company's ability to meet its short-term obligations. The main indicators of this group are a measure of how quickly assets turn into cash. In day-to-day operations, liquidity management is usually achieved through the efficient use of assets.

The level of liquidity must be considered depending on the industry in which the company operates. The liquidity position of a particular company may also vary depending on the anticipated need for funds at any given time.

The assessment of liquidity adequacy requires an analysis of the company's historical funding needs, current liquidity position, expected future funding needs, and options to reduce funding requirements or raise additional funds (including actual and potential sources of such funding).

Large companies tend to have better control over the level and composition of their liabilities than smaller companies. Thus, they may have more potential sources of funding, including owner equity and credit market funds. Access to capital markets also reduces the required liquidity buffer compared to companies without such access.

Contingent liabilities such as letters of credit or financial guarantees may also be relevant in assessing liquidity. The importance of contingent liabilities varies for the non-banking and banking sectors. In the non-banking sector, contingent liabilities (usually disclosed in a company's financial statements) represent a potential cash outflow and should be included in an assessment of a company's liquidity.

Calculation of liquidity ratios

The main liquidity ratios are presented in table 5. These liquidity ratios reflect the position of the company at a certain point in time and, therefore, use data at the end of the balance sheet date, and not average balance sheet values. Indicators of current, quick and absolute liquidity reflect the company's ability to pay current obligations. Each of them uses a progressively stricter definition of liquid assets.

Measures how long a company can pay its daily cash costs using only existing liquid assets, without additional cash flows. The numerator of this ratio includes the same liquid assets used in quick liquidity, and the denominator is an estimate of daily cash costs.

To obtain daily cash costs, the total cash costs for the period are divided by the number of days in the period. Therefore, in order to obtain cash expenses for the period, it is necessary to summarize all expenses in the income statement, including such as: cost; marketing and administrative expenses; other expenses. However, the amount of expenses should not include non-cash expenses, for example, the amount of depreciation.

Table 5 - Liquidity ratios

Liquidity indicators	Numerator	Denominator
	current assets	Current responsibility
	Current assets - stocks	Current responsibility
	Short-term investments and cash and cash equivalents	Current responsibility
Guard interval indicator	Current assets - stocks	Daily expenses
	Inventory turnover period + Accounts receivable turnover period – Accounts payable turnover period

The financial cycle is a metric that is not calculated in the form of a ratio. It measures the length of time it takes for an enterprise to go from investing money (invested in activities) to receiving cash (as a result of activities). During this time period, the company must fund its investment operations from other sources (ie, debt or equity).

Interpretation of liquidity ratios

Current liquidity . This measure reflects current assets (assets that are expected to be consumed or converted into cash within one year) per ruble of current liabilities (obligations due within one year).

More tall the ratio indicates a higher level of liquidity (i.e., a higher ability to meet short-term obligations). A current ratio of 1.0 would mean that the carrying amount of current assets is exactly equal to the carrying amount of all current liabilities.

More low the value of the indicator indicates less liquidity, which implies a greater dependence on operating cash flow and external financing to meet short-term liabilities. Liquidity affects a company's ability to borrow money. The current ratio is based on the assumption that inventories and receivables are liquid (if inventories and receivables are low, this is not the case).

Quick liquidity ratio . The quick ratio is more conservative than the current ratio as it only includes the most liquid current assets (sometimes called "quick assets"). Like the current ratio, a higher quick ratio indicates the ability to meet debts.

This indicator also reflects the fact that inventories cannot be easily and quickly converted into cash, and, in addition, the company will not be able to sell its entire inventory of raw materials, materials, goods, etc. for an amount equal to its book value, especially if that inventory needs to be sold quickly. In situations where inventories are illiquid (for example, if inventory turnover ratios are low), quick liquidity may be a better indicator of liquidity than current ratio.

Absolute liquidity . The ratio of cash to current liabilities is usually a reliable measure of the liquidity of an individual enterprise in a crisis. Only highly liquid short-term investments and cash are included in this indicator. However, it should be taken into account that during a crisis, the fair value of liquid securities can significantly decrease as a result of market factors, and in this case it is advisable to use only cash and cash equivalents in the process of calculating absolute liquidity.

Guard interval indicator . This ratio measures how long a company can continue to pay its expenses from existing liquid assets without receiving any additional cash inflows.

A guard margin of 50 would mean that the company could continue to pay its operating expenses for 50 days from fast assets without any additional cash inflows.

The higher the guard interval, the higher the liquidity. If a company's guard interval score is very low compared to peers or compared to the company's own history, the analyst needs to clarify whether there is sufficient cash inflow for the company to meet its obligations.

financial cycle . This indicator indicates the amount of time that elapses from the moment a company invests money in other forms of assets to the moment it collects money from customers. A typical operating process is to receive inventories on a deferred basis, which creates accounts payable. The company then also sells these inventories on credit, which results in an increase in receivables. After that, the company pays its bills for the delivered goods and services, and also receives payment from customers.

The time between spending money and collecting money is called the financial cycle. More short cycle indicates greater liquidity. It means that the company only has to fund its inventory and receivables for a short period of time.

More long cycle indicates lower liquidity; this means that the company must finance its inventory and receivables over a longer period of time, which may result in the need to raise additional funds to build working capital.

Indicators of financial stability and solvency

Solvency ratios are basically of two types. Debt ratios (the first type) focus on the balance sheet, and measure the amount of debt capital in relation to equity or the total amount of a company's funding sources.

Coverage ratios (the second type of metric) focus on the income statement and measure a company's ability to meet its debt payments. All of these indicators can be used in assessing a company's creditworthiness and therefore in assessing the quality of a company's bonds and other debt obligations.

Table 6 - Indicators of financial stability

Indicators	Numerator	Denominator
	Total liabilities (long-term + short-term liabilities)	Total liabilities
	Equity	Total liabilities
Debt to Equity	Total liabilities	Equity
financial leverage		Equity
Interest coverage ratio	Profit before taxes and interest	Percentage to be paid
Fixed payment coverage ratio	Profit before taxes and interest + lease payments + rent	Interest payable + lease payments + rent

In general, most often these indicators are calculated in the manner shown in Table 6.

Solvency Ratios Interpretation

Indicator of financial dependence . This ratio measures the percentage of total assets financed by debt. For example, a debt-to-asset ratio of 0.40 or 40 percent indicates that 40 percent of a company's assets are funded by debt. Generally, a higher share of debt means higher financial risk and thus weaker solvency.

Indicator of financial autonomy . The indicator measures the percentage of a company's equity (debt and equity) represented by equity. Unlike the previous ratio, a higher value usually means lower financial risk and thus indicates strong solvency.

Debt to equity ratio . The debt-to-equity ratio measures the amount of debt capital in relation to equity. The interpretation is similar to the first indicator (i.e., a higher ratio indicates poor solvency). A ratio of 1.0 would indicate equal amounts of debt and equity, which is equivalent to a debt-to-liability ratio of 50 percent. Alternative definitions of this ratio use the market value of shareholders' equity rather than its book value.

financial leverage . This ratio (often referred to simply as the leverage ratio) measures the amount of total assets supported by each currency unit of equity. For example, a value of 3 for this indicator means that every 1 ruble of capital supports 3 rubles of total assets.

The higher the leverage ratio, the more borrowed funds a company has to use debt and other liabilities to fund assets. This ratio is often defined in terms of average total assets and average total equity and plays an important role in the expansion of return on equity in the DuPont methodology.

Interest coverage ratio . This metric measures how many times a company can cover its interest payments from pre-tax earnings and interest payments. A higher interest coverage ratio indicates stronger solvency and solvency, providing creditors with high confidence that the company can service its debt (i.e., banking sector debt, bonds, bills, debt of other enterprises) from operating income.

Fixed payment coverage ratio . This metric takes into account fixed expenses or liabilities that result in a stable cash outflow for the company. It measures the number of times a company's earnings (before interest, taxes, rent, and leases) can cover interest and lease payments.

Like the interest coverage ratio, a higher fixed payment ratio implies strong solvency, meaning that the business can service its debt through core business. The indicator is sometimes used to determine the quality and probability of receiving dividends on preferred shares. If the value of the indicator is higher, then this indicates a high probability of receiving dividends.

Analysis of the financial activity of the enterprise on the example of PJSC "Aeroflot"

The process of analyzing financial activity can be demonstrated using the well-known company PJSC Aeroflot as an example.

Table 6 – Dynamics of assets of PJSC Aeroflot in 2013-2015, million rubles

Indicators				Absolute deviation, +,-		Relative deviation, %
Intangible assets
Research and development results
fixed assets
Long-term financial investments
Deferred tax assets
Other noncurrent assets
NON-CURRENT ASSETS TOTAL
Value added tax on acquired valuables
Receivables
Short-term financial investments
Cash and cash equivalents
Other current assets
CURRENT ASSETS TOTAL

As can be judged from the data in Table 6, during 2013-2015 there is an increase in the value of assets - by 69.19% due to the growth of current and non-current assets (Table 6). In general, the company is able to effectively manage working resources, because in the conditions of sales growth by 77.58%, the amount of current assets increased by only 60.65%. The credit policy of the enterprise is of high quality: in the context of a significant increase in revenue, the amount of receivables, the basis of which was the debt of buyers and customers, increased only by 45.29%.

The amount of cash and cash equivalents is growing from year to year and amounted to about 29 billion rubles. Given the value of the absolute liquidity ratio, it can be argued that this indicator is too high - if the absolute liquidity of the largest competitor UTair is only 19.99, then in PJSC Aeroflot this indicator was 24.95%. Money is the least productive part of the assets, so if there are free funds, they should be directed, for example, to short-term investment instruments. This will provide additional financial income.

Due to the depreciation of the ruble, the cost of inventories increased significantly due to an increase in the cost of components, spare parts, materials, as well as due to an increase in the cost of jet fuel despite the decline in oil prices. Therefore, stocks grow faster than sales volume.

The main factor in the growth of non-current assets is the increase in accounts receivable, payments on which are expected more than 12 months after the date of the report. The basis of this indicator is advance payments for the supply of A-320/321 aircraft, which will be received by the company in 2017-2018. In general, this trend is positive, as it allows the company to ensure the development and increase of competitiveness.

The enterprise financing policy is as follows:

Table 7 - Dynamics of the sources of financial resources of Aeroflot PJSC in 2013-2015, million rubles

Indicators				Absolute deviation, +,-		Relative deviation, %
Authorized capital (share capital, authorized fund, contributions of comrades)
Own shares repurchased into shareholders
Revaluation of non-current assets
Reserve capital
Retained earnings (uncovered loss)
OWN CAPITAL AND RESERVES
Long-term borrowings
Deferred tax liabilities
Provisions for contingent liabilities
LONG-TERM LIABILITIES TOTAL
Short-term borrowings
Accounts payable
revenue of the future periods
Reserves for future expenses and payments
SHORT-TERM LIABILITIES TOTAL

A clearly negative trend is the reduction in the amount of equity capital by 13.4 for the study period due to a significant net loss in 2015 (Table 7). This means that the wealth of investors has significantly decreased, and the level of financial risks has increased due to the need to raise additional funds to finance the growing volume of assets.

As a result, the amount of long-term liabilities increased by 46%, and the amount of current liabilities - by 199.31%, which led to a catastrophic decline in solvency and liquidity indicators. A significant increase in borrowed funds leads to an increase in financial costs for debt servicing.

Table 8 - Dynamics of PJSC Aeroflot's financial results in 2013-2015, million rubles

Indicators				Absolute deviation, +,-		Relative deviation, %
Cost of sales
Gross profit (loss)
Selling expenses
Management expenses
Profit (loss) from sales
Income from participation in other organizations
Interest receivable
Percentage to be paid
Other income
other expenses
Profit (loss) before tax
Current income tax
Change in deferred tax liabilities
Change in deferred tax assets
Net income (loss)

In general, the process of forming the financial result was inefficient due to an increase in interest payable and other expenses by 270.85%, as well as due to an increase in other expenses by 416.08% (Table 8). The write-off of PJSC Aeroflot's share in the authorized capital of Dobrolet LLC resulted in a significant increase in the latter indicator due to the termination of operations. Although this is a significant loss of funds, it is not a permanent expense, so it does not say anything bad about the ability to carry out uninterrupted operations. However, other reasons for the growth of other expenses may threaten the stable operation of the company. In addition to the write-off of part of the shares, other expenses also increased due to leasing expenses, expenses from hedging transactions, as well as due to the formation of significant reserves. All this indicates ineffective risk management in the framework of financial activities.

Indicators

Absolute deviation, +,-

Current liquidity ratio

Quick liquidity ratio

Absolute liquidity ratio

The ratio of short-term receivables and payables

Liquidity indicators indicate serious solvency problems already in the short term (Table 9). As mentioned earlier, absolute liquidity is excessive, which leads to incomplete use of the financial potential of the enterprise.

On the other hand, the current ratio is significantly below the norm. If in UTair, the company's direct competitor, the indicator was 2.66, then in Aeroflot PJSC it was only 0.95. This means that the company may experience problems with the timely repayment of current liabilities.

Table 10 – Financial stability indicators of PJSC Aeroflot in 2013-2015

Indicators				Absolute deviation, +,-
Own working capital, million rubles
Coefficient of current assets provision with own funds
Maneuverability of own working capital
Coefficient of provision with own working capital stocks
Financial autonomy ratio
Financial dependency ratio
Financial leverage ratio
Equity maneuverability ratio
Short-term debt ratio
Financial stability ratio (investment coverage)
Asset mobility ratio	Financial autonomy also dropped significantly to 26% in 2015 from 52% in 2013. This indicates a lower level of creditor protection and a high level of financial risks. The indicators of liquidity and financial stability made it possible to understand that the state of the company is unsatisfactory. Consider also the company's ability to generate a positive financial result. Table 11 – Business activity indicators of Aeroflot PJSC (turnover indicators) in 2014-2015 Indicators Absolute deviation, +,- Equity turnover Asset turnover, transformation ratio return on assets Working capital turnover ratio (turnover) Period of one turnover of working capital (days) Inventory turnover ratio (turns) Period of one inventory turnover (days) Accounts receivable turnover ratio (turnover) Receivables repayment period (days) Accounts payable turnover ratio (turnover) Payables repayment period (days) Lead time (days) Operating cycle period (days) Financial cycle period (days) In general, the turnover of the main elements of assets, as well as equity, increased (Table 11). However, it is worth noting that the reason for this trend is the growth of the national currency, which led to a significant increase in ticket prices. It is also worth noting that the asset turnover is significantly higher than that of UTair's direct competitor. Therefore, it can be argued that, in general, the operating process of the company is effective. Table 12 - Profitability (loss ratio) of PJSC Aeroflot Indicators Absolute deviation, +,- Profitability (liabilities) of assets, % Return on equity, % Profitability of production assets, % Profitability of sold products by profit from sales, % Profitability of sold products in terms of net profit, % Reinvestment ratio, % Coefficient of sustainability of economic growth, % Payback period of assets, year Payback period of equity, year The company was unable to generate profit in 2015 (Table 12), which led to a significant deterioration in the financial result. For each attracted ruble of assets, the company received 11.18 kopecks of net loss. In addition, the owners received 32.19 kopecks of net loss for each ruble of invested funds. Therefore, it is obvious that the financial performance of the company is unsatisfactory. 2. Thomas R. Robinson, International financial statement analysis / Wiley, 2008, 188 pp. 3. site - Online program for calculating financial indicators // URL: https://www.site/ru/

The main indicators characterizing the financial condition of the enterprise are solvency and liquidity ratios. The concept of solvency is broader than the concept of liquidity. So, solvency is understood as the ability of the company to fully fulfill its payment obligations, as well as the availability of funds necessary and sufficient to fulfill these obligations. The term liquidity means the ease of implementation, sales, the transformation of material assets into cash.

The main way to determine the solvency and liquidity of a company is ratio analysis. First, let's define the concept of "financial ratio".

The financial ratio is a relative indicator, calculated as the ratio of individual balance sheet items and their combinations. It goes without saying that, for coefficient analysis, the information base is the balance sheet, i.e. it is carried out on the basis of data 1 and 2 of the balance sheet.

In the economic literature, ratio financial analysis, as a rule, refers to the study and analysis of financial statements using a set of financial indicators (ratios) that characterize the financial position of an organization. The purpose of the ratio analysis is to describe the company in terms of several basic indicators that allow one to judge its financial condition.

Coefficients characterizing the solvency of the enterprise

Table 1. Main financial ratios characterizing the solvency of an enterprise

	Recommended value	Calculation formula
		Numerator	Denominator
Financial Independence Ratio	>=0,5	Equity	Balance currency
Financial dependency ratio	<=2,0	Balance currency	Equity
Debt capital concentration ratio	<=0,5	Borrowed capital	Balance currency
Debt ratio	<=1,0	Borrowed capital	Equity
Total solvency ratio	>=1,0	Balance currency	Borrowed capital
Investment ratio (option 1)	>0,25 <1,0	Equity	Fixed assets
Investment ratio (option 2)	>1,0	Equity + Long-term liabilities	Fixed assets

Coefficients characterizing the liquidity of the enterprise

The main indicators characterizing the liquidity of a commercial organization are presented in the following table.

Table 2. Key financial ratios characterizing liquidity

Name of financial ratio	Recommended value	Calculation formula
		Numerator	Denominator
Instant liquidity ratio	> 0,8		short-term obligations
Absolute liquidity ratio	> 0,2	Cash and cash equivalents + Short-term financial investments (excluding cash equivalents)	short-term obligations
Quick liquidity ratio (simplified version)	=> 1,0	Cash and cash equivalents + Short-term financial investments (excluding cash equivalents) + Accounts receivable	short-term obligations
Average liquidity ratio	> 2,0	Cash and cash equivalents + Short-term investments (excluding cash equivalents) + Accounts receivable + Inventories	short-term obligations
Interim liquidity ratio	=> 1,0	Cash and cash equivalents + Short-term financial investments (excluding cash equivalents) + Accounts receivable + Inventories + Value added tax on acquired valuables	short-term obligations
Current liquidity ratio	1,5 - 2,0	current assets	short-term obligations

One of the main tasks of the analysis of liquidity and solvency indicators of the company is to assess the degree of closeness of the organization to bankruptcy. It should be noted that liquidity indicators are not related to the assessment of the company's growth potential and reflect mainly the momentary situation. If the company works for the future, the significance of liquidity indicators drops significantly. Accordingly, it is advisable to start assessing the financial condition of a company with an analysis of its solvency.

Coefficients characterizing the property status of the enterprise

Table 3. Main financial ratios characterizing the financial position of the enterprise

Name of financial ratio	Calculation formula
	Numerator	Denominator
Property dynamics	Balance currency at the end of the period	Balance currency at the beginning of the period
Share of non-current assets in property	Fixed assets	Balance currency
Share of current assets in property	current assets	Balance currency
Share of cash and cash equivalents in current assets	Cash and cash equivalents	current assets
Share of financial investments (excluding cash equivalents) in current assets	Financial investments (excluding cash equivalents)	current assets
Share of stocks in current assets	Stocks	current assets
Share of accounts receivable in current assets	Receivables	current assets
Share of fixed assets in non-current assets	fixed assets	Fixed assets
Share of intangible assets in non-current assets	Intangible assets	Fixed assets
Share of financial investments in non-current assets	Financial investments	Fixed assets
Share of research and development results in non-current assets	Research and development results	Fixed assets
Share of intangible exploration assets in non-current assets	Intangible search assets	Fixed assets
Share of tangible exploration assets in non-current assets	Tangible Exploration Assets	Fixed assets
The share of long-term investments in material assets in non-current assets	Long-term investments in material values	Fixed assets
Share of deferred tax assets in non-current assets	Deferred tax assets	Fixed assets

Indicators of the financial stability of the enterprise

The main financial ratios used in the process of assessing the financial stability of an enterprise are based on equity capital (SC), short-term liabilities (CO), borrowed capital (LC) and working capital (SOC) taken into account for the purposes of analysis, which can be determined with using formulas compiled on the basis of the codes of the balance sheet lines:

SK = Kiri + DBP = p. 1300 + p. 1530

KO = line 1500 - line 1530

ZK \u003d TO + KO \u003d line 1400 + line 1500 - line 1530

SOK \u003d SK - VA \u003d p. 1300 + p. 1530 - p. 1100

where KiR - capital and reserves (p. 1300); DBP - deferred income (line 1530); DO - long-term liabilities (line 1400); VA - non-current assets (line 1100).

When evaluating indicators of the financial condition of the enterprise it should be taken into account that the normal or recommended values ​​were determined on the basis of an analysis of the activities of Western companies and were not adapted to Russian conditions.

In addition, it is necessary to be careful about the method of comparing coefficients with industry standards. If in developed countries the main proportions were formed decades ago, there is constant monitoring of all changes, then in Russia the market structure of the assets and liabilities of an enterprise is in its infancy, monitoring is not carried out in full. And if we take into account the distortions in reporting, constant adjustments to the rules for its preparation, then it is clear that it is difficult to derive sufficiently justified new standards for industries.

In the future, the values ​​of the coefficients are compared with their recommended standard, as a result of which they form an opinion about the solvency or insolvency of the organization, its financial stability or instability, profitability of activities, and the level of business activity.

It is a process of studying the financial condition and the main results of the financial activity of an enterprise in order to identify reserves to increase its market value and ensure further effective development.

The results of financial analysis are the basis for making managerial decisions, developing a strategy for the further development of the enterprise. Therefore, financial analysis is an integral part, its most important component.

Basic methods and types of financial analysis

There are six main methods of financial analysis:

• horizontal(temporal) analysis— comparison of each reporting position with the previous period;
• vertical(structural) analysis- identification of the specific weight of individual articles in the final indicator, taken as 100%;
• trend analysis- comparison of each reporting position with a number of previous periods and determination of the trend, i.e. the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods. With the help of the trend, possible values ​​of indicators are formed in the future, and therefore, a prospective predictive analysis is carried out;
• analysis of relative indicators(coefficients) - calculation of ratios between individual reporting positions, determination of interrelations of indicators;
• comparative(spatial) analysis- on the one hand, this is an analysis of the reporting indicators of subsidiaries, structural divisions, on the other hand, a comparative analysis with the indicators of competitors, industry averages, etc.;
• factor analysis– analysis of the influence of individual factors (reasons) on the resulting indicator. Moreover, factor analysis can be both direct (analysis itself), when the resulting indicator is divided into its component parts, and reverse (synthesis), when its individual elements are combined into a common indicator.

The main methods of financial analysis carried out at the enterprise:

Vertical (structural) analysis- determination of the structure of the final financial indicators (the amounts for individual items are taken as a percentage of the balance sheet currency) and identifying the impact of each of them on the overall result of economic activity. The transition to relative indicators allows for inter-farm comparisons of the economic potential and performance of enterprises that differ in the amount of resources used, and also smoothes out the negative impact of inflationary processes that distort absolute indicators.

Horizontal (dynamic) analysis is based on the study of the dynamics of individual financial indicators over time.

Dynamic analysis is the next step after the analysis of financial indicators (vertical analysis). At this stage, it is determined which sections and items of the balance sheet have undergone changes.

The analysis of financial ratios is based on the calculation of the ratio of various absolute indicators of financial activity among themselves. The source of information is the financial statements of the enterprise.

The most important groups of financial indicators:

1. Turnover indicators (business activity).
2. Market Activity Indicators

When analyzing financial ratios, the following points should be kept in mind:

• the value of financial ratios is greatly influenced by the accounting policy of the enterprise;
• diversification of activities makes it difficult to compare coefficients by industry, since the standard values ​​can vary significantly for different industries;
• normative coefficients chosen as a basis for comparison may not be optimal and may not correspond to the short-term objectives of the period under review.

Comparative financial analysis is based on comparing the values ​​of individual groups of similar indicators with each other:

• indicators of this enterprise and average industry indicators;
• financial indicators of the given enterprise and indicators of the enterprises-competitors;
• financial indicators of individual structural units and divisions of the enterprise;
• comparative analysis of reporting and planned indicators.

Integral () financial analysis allows you to get the most in-depth assessment of the financial condition of the enterprise.

Analysis of financial ratios

Analysis of financial ratios is an integral part financial analysis, which is an extensive area of ​​research, including the following main areas: analysis of financial statements (including ratio analysis), commercial calculations (financial mathematics), forecasting reporting, assessment of the investment attractiveness of a company using a comparative approach based on financial indicators [ Teplova and Grigorieva, 2006].

First of all, it is about analysis of financial statements, which allows you to evaluate:

• o financial structure (property status) of the enterprise;
• o capital adequacy for current activities and long-term investments;
• o capital structure and the ability to repay long-term liabilities to third parties;
• o trends and comparative effectiveness of the company's development directions;
• o liquidity of the company;
• o the threat of bankruptcy;
• o business activity of the company and other important aspects characterizing its condition.

The analysis of financial statements is very important for financial management, because "it is impossible to manage what cannot be measured."

At the same time, the analysis of financial statements must be considered in the context of the goals that the researcher sets for himself. In this regard, there are six basic motives for conducting a regular review of financial statements:

• 1) investing in company shares;
• 2) provision or extension of a loan;
• 3) assessment of the financial stability of the supplier or buyer;
• 4) assessment of the possibility of obtaining a monopoly profit by the company (which provokes antitrust sanctions from the state);
• 5) predicting the probability of bankruptcy of the company;
• 6) internal analysis of the effectiveness of the company's activities in order to optimize decisions to increase the financial result and strengthen its financial condition.

As a result of the regular conduct of such an analysis, it is possible to obtain a system of basic, most informative parameters that give an objective picture of the financial condition of the organization, characterizing the effectiveness of its functioning as an independent economic entity (Fig. 2.4).

In the process of analysis, the analysis of three types of activity of the enterprise - the main (operational), financial and investment - should be linked.

Rice. 2.4.

Ratio analysis is one of the most popular methods for analyzing financial statements. Financial ratios - these are the ratios of data from different reporting forms of the enterprise. The coefficient system must meet certain requirements:

• o each coefficient must make economic sense;
• o coefficients are considered only in dynamics (otherwise they are difficult to analyze);
• o At the end of the analysis, a clear interpretation of the calculated coefficients is required. Interpreting coefficients means giving correct answers to the following questions for each coefficient:
• How is it calculated and in what units is it measured?
• - what is it intended to measure, and why is it interesting for analysis?
• - what do high or low odds indicate, how misleading can they be? How can this indicator be improved?

In order to correctly analyze the state of a particular enterprise, it is necessary to have a certain standard. For this, normative and industry average indicators are used, i.e. the basis for comparison of the obtained calculations of indicators is selected.

It should be remembered that the ratio analysis should be systematic. "We need to think of ratios as clues in a detective novel. One or even several ratios may not say anything or be misleading, but with the right combination, combined with knowledge about the company's management and the economic situation, in where it is located, the analysis of the coefficients will allow us to see the correct picture.

Financial ratios are traditionally grouped into the following categories (Figure 2.5):

• o short-term solvency (liquidity);
• o long-term solvency (financial stability);
• o asset management (turnover indicators);
• o profitability (profitability);
• o market value.

The liquidity and financial stability ratios together characterize solvency companies. Turnover and profitability ratios indicate the level business activity enterprises. Finally, market value ratios can characterize investment attractiveness companies.

Rice. 2.5.

Liquidity ratios characterize the company's ability to pay for its short-term obligations. Current liquidity ratio (current ratio) is defined as the ratio of current assets to short-term liabilities:

where OA - current assets of the enterprise on a certain date; but - its short term liabilities.

For creditors enterprises, especially short-term (suppliers), the growth of the current liquidity ratio means an increase in confidence in the solvency of the enterprise. Therefore, the higher the value of the current ratio, the better. For managers enterprises too high value of the current liquidity ratio may indicate inefficient use of cash and other short-term assets. However, the value of the current liquidity ratio less than one indicates an unfavorable situation: the net working capital of such an enterprise is negative.

Like other indicators, the current liquidity ratio is subject to the influence of various types of transactions.

Example 2.3

Suppose a business has to pay the bills of its suppliers. At the same time, the value of its current assets is 4 million rubles, the total value of short-term liabilities is 2 million rubles, and the amount of invoices presented for payment reaches 1 million rubles. Then the current liquidity ratio will change as follows.

As is obvious from the table, the value of the current liquidity ratio has increased, i.e. the company's liquidity position has improved. However, if the situation before the operation was the opposite (current assets amounted to 2 million rubles, and short-term liabilities - 4 million rubles), it is easy to see that the operation with the payment of suppliers' invoices would worsen the position of the enterprise even more.

This simple reasoning should be kept in mind by business managers: reducing the short-term funding base in a situation where liquidity is unsatisfactory seems like a natural step, but in fact leads to an even worse situation.

Quick (urgent) liquidity ratio (quick ratio) is also called the "litmus paper test" (acid test). Its calculation allows "highlighting" the situation with the structure of current assets. The quick liquidity ratio is calculated as follows:

OA-Inv

"" "CL"

where inv (inventories) - the amount of stocks (industrial, stocks of finished products and goods for resale) in the balance sheet of the enterprise on a certain date.

The logic for calculating such a ratio is that reserves, although they belong to the category of current assets, often cannot be sold quickly if necessary without a significant loss in value, and therefore, they are a rather low-liquid asset. The use of cash to purchase inventory does not change the current ratio, but reduces the quick ratio.

If we exclude the value of inventories from current assets, cash (and highly liquid securities accounted for under the item "Short-term financial investments") and receivables will remain in the structure of current assets. If the share of receivables in the structure of current assets is large, and the repayment period is long (long-term receivables predominate), then an enterprise, even with a good quick liquidity ratio, may find itself in a difficult position if it is necessary to immediately pay its short-term obligations. Therefore, another liquidity ratio is calculated.

Absolute liquidity ratio (cash ratio) is defined as the ratio of the amount of cash and highly liquid securities (short-term financial investments) to short-term liabilities:

_ Cash+MS * "CL"

where cash- the amount of cash (in cash and on current accounts); MS (market securities) - highly liquid securities (short-term financial investments) accounted for in the company's balance sheet on a certain date. In different sectors of the economy, the value of this coefficient may vary; moreover, it is highly susceptible to the peculiarities of the credit policy adopted by the enterprise. However, the value of the absolute liquidity ratio less than 0.1 suggests that the company may experience difficulties in the need for instant payment of creditors' bills.

Indicators of financial stability also called financial leverage ratios (leverage ratios). They are aimed at measuring the ability of an enterprise to meet its long-term financial obligations. In its most general form, these measures compare the book value of a company's liabilities with the book value of its assets or equity.

Equity concentration ratio (equity ratio) characterizes the degree of independence of the enterprise from borrowed sources of financing and is calculated as the ratio of equity to the value of the total assets of the enterprise:

where E (shareholders equity) - the value of own (share) capital; A (assets) - the total value of the company's assets.

Total Debt Ratio (debt-to-assets ratio) is calculated as the ratio of borrowed funds to the value of total assets:

where TL (total liabilities) - the total amount of the company's liabilities; LTD (long-term debt) - the amount of long-term liabilities; CL- the value of short-term liabilities2. In general terms, this ratio shows what proportion of the company's assets are financed by various types of its creditors. It can be modified and refined depending on the goals of the analysis (for example, only net assets can be taken into account in the denominator, and only long-term liabilities can be taken into account in the numerator).

Similar functions are performed by another coefficient, often used to assess financial stability, - coefficient (multiplier) of own capital (assets-to-equity ratio), calculated as the ratio of the company's assets to its own (share) capital:

where D- the total amount of liabilities taken into account for the analysis (may or may not coincide with the total amount of liabilities TL).

Coefficient D/e, obtained by transforming formula (2.1) is called financial leverage ratio (debt-to-cquity ratio), kFV and characterizes the capital structure of the company, i.e. the ratio of borrowed and own funds used by it to finance its activities.

The coefficients indicating the financial stability of the enterprise include interest coverage ratio (times interest earned), which measures how well an enterprise can meet its obligation to pay interest on borrowed funds:

where EBIT- profit before interest and taxes; / - the amount of interest on the loan paid for the analyzed period.

Since interest is a cash payment, and for the calculation EBIT in expenses of the enterprise take into account depreciation, which is not a payment, then to clarify this indicator, they often use cash back ratio, taking into account in the numerator earnings before depreciation, interest and taxes EBITDA. Earnings before depreciation, interest and taxes is a basic measure of a business's ability to generate cash from its operations. It is often used as an indicator of available cash to meet financial obligations.

The interest coverage ratio indicates the level of riskiness of the company's operations. The higher the business risk (the risk of operating activity), the less predictable the company's profits are, as a rule, and, consequently, the less willingly the suppliers of long-term borrowed capital lend to the company. Therefore, the interest coverage ratio of such a company should be higher than that of a company with less operational risk, whose profits are predictable, and access to financial resources of creditors is much easier.

In the context of the financial crisis, the so-called financial security ratio (financial safety ratio), calculated as the ratio of the company's obligations to its profits:

The value of this coefficient is determined by industry specifics, as well as the development strategy of companies. A value less than 3 is considered relatively safe.

Turnover indicators(turnover ratios) characterize the ability of an enterprise to manage assets and working capital. Total asset turnover ratio (assets turnover ratio) reflects the efficiency of the company's use of all available resources, regardless of the sources of their attraction. This coefficient shows how many times during the analyzed period1 a complete cycle of production and circulation is completed. The turnover ratio of total assets is calculated as the ratio of proceeds from the sale of products (performance of work, provision of services) to the average value of the assets of the enterprise for the analyzed period:

where S (sales) - sales volume (sales proceeds) for the analyzed period; L - the average value of total assets for the same period1.

The actin turnover ratio measures the volume of sales generated by each unit of currency invested in assets. So, if the asset turnover ratio is 1, this means that for every ruble invested in assets, the company will receive 1 ruble. proceeds from the sale of products. A low value of the asset turnover ratio is typical for capital-intensive sectors of the economy, a high value for industries whose enterprises are not burdened with a large number of assets. The asset turnover ratio, as a rule, is in inverse proportion to the liquidity ratio: a high value of the current liquidity ratio is usually possible where the company maintains a high level of current assets, which negatively affects the turnover ratio. The choice of priorities here is due to the short-term financial policy of the enterprise.

Similarly to this indicator, turnover ratios are calculated for specific categories of assets: for non-current assets (the turnover ratio of non-current assets is also called return on assets), on current assets, stocks, receivables, payables. However, we note that, depending on the goals of the analysis, there are different ways to calculate the turnover ratios. reserves And accounts payable. Since, at the expense of accounts payable, the enterprise forms reserves that do not participate in the formation of profit, a more correct approach to calculating these indicators is based on the fact that the numerator of the formula indicates production cost (cost of goods sold, COGS). At the same time, analysts [Grigorieva, 2008] recommend uniformity in calculations when it is required to calculate all turnover rates.

Asset turnover period (assets turnover period) shows the number of days required for one turnover of assets. For the analyzed period of one year1, this indicator will be calculated using the following formula:

The turnover period is also determined by category of assets and liabilities. Turnaround times are the most important. accounts receivable (receivables collection period, RCP) And accounts payable (payables collection period, PCP). The first shows how many days, on average, it takes to turn sales proceeds into real cash receipts. The second characterizes the average duration of the delay, which the company uses for payments to its creditors, and, consequently, the period of short-term debt financing of the company.

Turnover indicators also include the duration of the net operating and financial cycle. Net operating cycle (net operation cycle period) shows the number of days for which, on average, a company needs working capital financing.

It is equal to the sum of the periods of inventory turnover and receivables:

where ITP (inventories turnover period) - inventory turnover period.

The longer the net operating cycle, the longer the company needs funding and the higher the liquidity risks. However, since current assets are partially financed by short-term liabilities, primarily accounts payable, the real need of the enterprise for cash in days is net financial cycle (net financial cycle period) - is calculated by subtracting the accounts payable turnover period from the net operating cycle:

Profitability ratios characterize the effectiveness of company management, measured as profitability.

Profitability of sales (return on sales) is calculated as the ratio of net profit to sales revenue for the analyzed period of time (as a percentage):

where N1 (net income) - net profit.

Profitability of sales in a broad sense characterizes the efficiency of the company's operating activities. It reflects the company's pricing policy, as well as the effectiveness of management actions to control and reduce costs. In order to emphasize the importance of one or another element of operating activities, the return on sales is also calculated in modified ways: in the numerator of the formula, in addition to the net profit indicator, there may be an indicator of profit before interest and taxes (EBIT) or earnings before interest, taxes and depreciation (EBITDA).

Note that there is an inverse relationship between return on sales and asset turnover. Companies with high profit margins tend to have low asset turnover and vice versa. This is due to the fact that companies with a high return on sales usually belong to industries with a high share of value added, i.e. value created directly in the enterprise by processing the product and promoting the product to the market. In such industries, due to the complexity of technological processes, enterprises are forced to have significant reserves and expensive non-current assets, which naturally reduces their turnover ratio. In industries with a low share of value added, enterprises adhere to a low price policy and do not show high profitability of sales, however, the need for assets is low, which increases the asset turnover ratio.

Return on assets (return on assets) reflects the efficiency of using the company's assets. It is calculated as the ratio of net profit to the average value of the company's assets for the period:

Return on assets is a very important indicator that can be used to measure the effectiveness of how a company forms its capital and manages the resources at its disposal. The fact is that assets are formed both by the owners of the company and its creditors (see Table 2.2). Therefore, the return on assets must be sufficient to both satisfy the requirements for the profitability of the company on the part of its owners (profitability of its own captain), and ensure the payment of interest on the loan, as well as the payment of taxes. Therefore, for various management and analytical purposes, this indicator is also modified: in the numerator of the formula, the most correct indicator, in addition to net profit, may be net operating profit after taxes (NOPAT), in the denominator, it is possible to use the indicator "net assets" (net assets, LI), obtained by deducting short-term liabilities from the balance sheet currency. If the net operating profit after tax is attributed to the net assets of the enterprise, we are talking about an indicator called return on invested capital (return on capital employed), ROCE, which is widely used for the purpose of analyzing and managing the value of a company.

Return on equity (return on equity) characterizes the efficiency of investment in the company by its owners. It is calculated using the following formula:

Return on equity refers to the resulting indicators of financial management. In the words of R. Higgins, "it would not be an exaggeration to say that many top managers rose and fell following the return on equity of their companies" . In the next section, we will elaborate on the factors that affect return on equity.

Market value ratios are an extensive group of indicators used by external users of information (investors) and characterizing the investment attractiveness of a company. The calculation of these indicators is not difficult for listed public companies, however, for closed forms of business, market value indicators can be used with reservations.

Most objectively characterizes the attractiveness of the company market price of common stock (price per share) R. An increase in this indicator means an increase in the value of the company for its shareholders, so managers should pay the most serious attention to stock quotes. If managers act in the interests of shareholders, they must make such financial decisions that will be aimed at increasing the market price of shares. The total value of all the company's shares is market capitalization (market value of shareholders" equity, MVE).

Earnings per share (earnings per share) shows the amount of net profit (in monetary units) attributable to one ordinary share. This indicator

is used in the evaluation of shares and the company as a whole and is calculated using the formula

where Qcs- the number of ordinary shares of the company.

Ratio of share price to earnings per share (price-to-earnings ratio) characterizes the company from the point of view of investors. This indicator is widely used in both investment analytics and business valuation:

The value of this ratio is determined, firstly, by how shareholders (investors) assess the company's development prospects, as well as their assessment of the risks associated with the company. This indicator cannot serve as an indicator of the current state of the enterprise, as it reflects the expectations of investors regarding the future development of the company. There are situations when a company showing low profits at the end of the year was characterized by a growing value of the coefficient, as investors believed that the difficulties were temporary, and the company had good growth prospects.

Other indicators characterizing the market value of the company are discussed below.

Analysis of factors affecting the company's performance

The issue of indicators characterizing the effectiveness of both the company's activities and its management remains debatable. In recent years, within the framework of the theory of value-oriented management, new systems and indicators have been developed that characterize efficiency. Although the return on equity (ROE) as an indicator based on profit, has significant drawbacks (listed in Chapter 1), it can be considered as a measure of efficiency, since it characterizes the profitability of investments in a company for its owners.

Consider the difference between return on equity and return on assets (ROA). This difference reflects the financing of the enterprise through the use of borrowed funds (financial leverage). If we multiply the numerator and denominator of formula (2.4), showing the calculation ROE, to a fraction equal to 1 (L / L), we get 1:

Thus, the return on equity is affected by the return on assets (i.e., the efficiency of using the entire capital of the company) and the equity ratio, which contains the financial leverage ratio [see. formula (2.1)], i.e., showing the efforts of management to attract debt financing.

In turn, the rate of return on assets [see. formula (2.2)] can be transformed by multiplying by a fraction equal to one (%):

It follows that a high share of profit in revenue does not always lead to an increase in the return on assets, i.e. it is necessary to qualitatively manage the assets at the disposal of the enterprise.

Then the return on equity can be expressed by the following formula:

Formulas (2.5) and (2.6) characterize the model of the influence of factors on the company's efficiency (the DuPont model). Thus, the management of the company can improve efficiency (return on equity) by paying attention to:

• o the effectiveness of the management of current activities (measured by the profitability of sales);
• o asset utilization efficiency (measured by the asset turnover ratio), which characterizes the amount of resources required to achieve a given sales volume;
• o the effectiveness of attracting borrowed funds (measured by the equity ratio), as well as the share of own funds required for sustainable business financing.

These coefficients, in turn, are determined by more specific indicators that characterize various aspects of the enterprise's activities. Thus, if we take the return on equity as a target indicator that characterizes the efficiency of the enterprise, we can build a tree of financial indicators (Fig. 2.6).