Vertical analysis. Basic methods of economic analysis

Business planning is an important link in the creation of a new business.

Before talking about how to draw up a business plan, let's first determine why it is needed and what its purpose is, and then consider its structure.

In fact, this step by step guide in organizing a new case, which describes how and by what means you are going to achieve your goals. I will describe the structure of this document and immediately give an example (based on a health club).

A well-written business plan should make a good impression on investors, as they should see that you understand how and by what means to achieve the goal, solve all problems, that you are proactive and disciplined.

Decor

The business plan starts on the cover. And you need to take it seriously. A beautifully designed document will immediately attract potential investors to you. A beautifully designed plan, that means: with a cover on branded paper, with your company logo, in a folder with springs and a transparent cover, printed on only one side of the sheet. In the document itself: fonts Times New Roman or Arial 12-14 size, all headings highlighted.

On title page indicate information about the enterprise: name, legal address, telephones, e-mail, contact person.

Structure

I want to make a reservation right away that there is no clearly regulated structure of this document. It is determined by the nature of the business. Therefore, here we will consider the general structure, on the basis of which it will be possible to draw up a business plan, taking into account your specifics.

1. Business resume

A very important section. It is usually read first and already here you can decide how interesting your plan is for the investor. A summary is a concise business plan. It describes very briefly the goals and objectives of your project, forecasts of sales volumes, future profits, the amount of necessary investments, payback periods.

Therefore, although it is located at the beginning, you need to write this section after writing the business plan itself, when you already clearly imagine all the key points of your business project and have calculated the entire economic component of the business.

Once again, a competent investor reads this section first and very carefully.

The health club was established on xxx.xxxx. registration certificate number xxxxx.
The main activity of the company is the provision of health services and the maintenance of physical fitness. The main advantages are the high quality of services provided, the consumption of high-tech equipment.

Uniqueness is the effective and efficient use of those technologies that are provided in comparison with conventional and familiar simulators. You can also note the opportunity to play sports without grueling workouts.

2. Market analysis

At the very beginning, describe the market in which you are going to work. An investor may not know your business niche and he needs to understand what are the prospects and trends in this niche, assess the opportunities for business growth, and understand the economic trends in the industry.

For example, like this: geographic location, demographic data, by type consumer behavior, by user behavior, by income level, and so on. All this should be reflected in this section. Describe projected changes in these markets, trends and factors affecting business processes.

Market segmentation can be carried out according to the principle of profitability, that is, this service will be in demand among people with different income levels.

The most advantageous position in the eyes of the consumer is for organizations that have a swimming pool in their structure, because most in demand swimming is used among visitors (45.6%). only in 27.2% of cases consumers are ready to receive the whole range of fitness clubs.

Almost 11% potential clients fitness clubs want to engage in gym. The shares of other services in the total demand do not exceed 5%. The main consumers of fitness services are women - 71%. Men - 40%.

Market segmentation can be carried out according to the criterion of profitability: most of the population is employed.
This service, firstly, is aimed at a private client, an average buyer.
the planned volume in the pessimistic scenario will be 10 people on weekdays and 20 people on weekends. In the optimistic scenario - on weekdays 30 people, on weekends - 40 people.

Competition and competitive advantage.

Considering the competitive environment of the company, it should be noted that in the city there are enough a large number of companies providing this service.

Our company will be based:

1. at an affordable price.
2. on unique equipment.
3. on discounts and promotions.
4. the presence of a shower and a place to rest.
5. individual approach to the client.
6. friendliness and friendliness among the staff.
7. effective recovery.

3. Description of products or services

In this section, you need to describe your product or service, how it can meet market needs, what unique advantages it has, and the life cycle.
If there are patents, copyrights, then reflect in this section.

Description of the company and industry

Date of registration xxxx, registration certificate number, organizational legal form- IP (state of emergency, LLC, etc.).
Actual address and legal address: city N, st. Nth, etc.

Company location analysis.

Advantages:

1. Proximity to the city center.
2. Possibility of unhindered entry and exit.
3. Location in a populated area.
4. Proximity to bus stop, trolleybus, taxi.

Flaws:

1. High rent (if the property is not owned).
2. Distance from the center and so on.

The main goal of the service is to attract the majority of customers (women) due to the optimal price, quality work, and the rarity of the provision of services.

This industry is based on attracting women, the uniqueness of the simulators lies in the fact that it allows you to spend less time and effort on restoring health and physical fitness than conventional simulators.

SWOT-analysis.

1. High quality service.
2. Favorable location.
3. Providing jobs.
4. Optimal price.

Weaknesses:

1. Narrow range of services.
2. Lack of own space.
3. Based only on female attraction.

Possibilities:

1. Expansion of the range of services.
2. Differentiation of the company - the opening of a healthy nutrition center.

1. High competition.

Service characteristics

Nowadays, this industry is developing at a fast pace. Main structural units this industry - health centers, camp sites, institutions, shaping, aerobics, fitness, etc.
This club is an opportunity to restore, improve the appearance and well-being of women.
Equipment includes toning tables, vibration platform, climbing machine, massage bed.

Let's briefly describe the equipment.

Toning tables are a great alternative to traditional fitness, a set of motion simulators with electronic control. Toning tables are 7 times more effective than traditional aerobics, shaping, etc.

Toning tables avoid unnecessary stress on the spine and cardiovascular system.

The vibration platform is a device that strengthens the body without undue effort and with minimal wear. The effectiveness of the vibration platform lies in synchronized and dependent on each other movements down, up, back, at a speed of 30-50 times per second.

Climb simulator is a fundamentally new simulator, outwardly resembling a mini-escalator, on which they move up.

Attractive factors:

1. optimal prices.
2. security of service provision, the presence of a medical worker.
3. service exclusivity.
4. high quality of service delivery.
5. cozy and pleasant environment (design).
6. provision of an oxygen cocktail.

4. Promotion of goods on the market

Describe how you will promote your products or services to the consumer. Conditions and organization of sale of the product. What promotion channels will you use?

In this section, describe pricing issues.

The health club is developing several market segments:

• consumers (individuals),
• corporate groups.

Commodity policy.

The firm focuses on:

1. Direction to quality
2. design direction.
3. Branding.

• high quality service,
• best prices,
• discounts,
• club cards (subscription).

Service calculation for 1 client:

1. Energy - x rubles,
2. Salary - x rubles,
3. Social Security contributions.
4. Depreciation.
5. Room rental.
6. General production expenses.
7. Total.
8. markup.
9. Service cost.

Sales policy.

The work will be carried out on the basis of marketing - attracting customers (calls, negotiations, conclusion of contracts with organizations). Width and length marketing policy initially will be narrow.

Communication policy.

The goal is to conquer a certain niche in the sales market, to form a permanent circle of customers.
For a successful solution, we will use advertising ( printed editions and television).

5. Production

Everything related to production is described here: premises, equipment, needs for resources and working capital.

Describe technologies, schemes of production flows.

Schedule: what work, in what time frame and who should do it.

For the implementation of activities, it is necessary to use appropriate equipment and premises.

Tables of equipment and premises are compiled.
Provided a brief description of equipment, specifications.

A table of the direction of spending the loan is also compiled:

1. Loan amount, total:
2. Equipment acquisition costs.
3. General running costs.
4. Rent.
5. Wage.
6. Room renovation.
7. Delivery of equipment.

6. Structure of the enterprise. Control. Staff

Describe the organizational and legal form of the enterprise. organizational structure enterprises, that is, who is responsible for what, how services interact. You can draw a diagram of the structure.

The second thing to write about is management. Who will manage, their work experience, rights, duties, functions, management methods. Sometimes they write autobiographies.

The third section, personnel.

Staff, their rights, duties, qualification requirements, wage level.

Organizational structure of management.

In total, it is planned to attract 5 employees.

Table staffing workers.

Recruitment will be done through recruitment agency and an interview, through recommendations from the College of Medicine and the Ministry of Sports.

7. Risk assessment and insurance

It describes what risks may arise for your enterprise, as well as what you will do to reduce negative consequence risks or prevent them altogether.

If you insure risks, write down the amounts you will insure and the types of insurance policies.

We calculate the monetary expression of the risks associated with the activities of the enterprise:

1. External risks:

1.1. increase in electricity tariffs (14% of revenue).
1.2. Legislative risk (30% of net profit).
1.3. Risk of emergencies (5% of net profit).
1.4 Rent increase (4% of revenue).
1.5 Increased competition (7% of net profit).

2. Internal risks.

2.1 Lack of quality service (20% of revenue).
2.2 Low-skilled personnel (10% of revenue).
2.3 Equipment failure (2% of revenue).

Measures to minimize risks:

1. Insurance.
2. Reservation.
3. Avoid.
4. Preventive measures.

8. Financial forecast of your future actions

I'll just list what should be in this section:

• balance
• Profits and Losses Report
• traffic report Money
• terms of reaching the break-even point and payback of the project;
• amount of required investment
• profit and profitability calculations

Lending is carried out for a certain period - for 2 years, 4 years, etc. A debt repayment schedule is drawn up.
A plan of expenses and incomes is drawn up - the first year by months, the rest by years.
A forecast balance is drawn up and the payback period is calculated.

1. Investment size.
2. Net profit.
3. Depreciation deductions.
4. Clean cash flow(item 2 + item 3)
5. Payback period (clause 1 / clause 4)

We calculate the return on investment and discount income.

1. Net profit for 4 years.
2. Depreciation for 4 years.
3. Net cash flow for 4 years.
4. Investment size.
5. Return on investment, %. (p.1-p.4/p.4*100%)
6. Discount rate,% ((15-8.25)+8.25).
7. Discount factor at the end of the year, (1/(1+0.15)4).
8. discounted income.

We calculate the break-even analysis.

1. Revenue.
2. variable costs.
3. Fixed costs.
4. Marginal income.
5. Share of marginal income.
6. Threshold of profitability.
7. Stock of financial strength.

Let's calculate the budget effect.

1. Income tax for the year
2. Deductions for social needs.

9. Applications

This can include: diagrams, graphs, photographs, copies of contracts and agreements, clippings from information sources, biographies, reports, and more.

This is what the general structure looks like when drawing up a business plan.

Everyone knows that a business plan is one of the most effective tools for the successful implementation of a new project. Despite this, many aspiring entrepreneurs do not understand how to properly write a business plan. For some, simple calculations from the “bought and sold” category are enough, others build a complex strategy instead of clear goals and objectives. So does an entrepreneur need a business plan and how to develop it?

Why is a plan needed?

In business practice, there are great amount force majeure circumstances that may affect the course of affairs. Their list is so huge that it is unlikely to fit into the format of this material. Moreover, it is practically impossible to take into account all the factors in one document and develop a mechanism for responding to them. So does it make sense to have a strategy, or is it enough to limit yourself to basic techniques and apply them as needed? As practice shows, having a business plan is still worth it.

It is needed for two tasks:

1. Business plan for "internal use":

— As the saying goes folk wisdom 10 minutes spent planning saves an hour of hard work. Having a well-designed business plan for small businesses allows you to establish management processes. This is especially important when working in a team. detailed plan eliminates discrepancies and stipulates the steps that each member of the team takes in a given situation.

- Tracking performance. A well-designed business plan has a number of key milestones that your business must achieve at certain intervals. By how clearly you pass these “marks”, you can draw conclusions about the effectiveness of business processes and “tighten the screws” if necessary. In addition, you can be sure that your team will be focused on the right goals in the event of a temporary lack of leadership.

A well-designed business plan has a number of key milestones that your business must achieve at certain intervals. By how clearly you pass these "marks", you can draw conclusions about the effectiveness of business processes.

— Risk reduction. We have already written that it is impossible to foresee all force majeure circumstances, but the general pattern of actions in a crisis situation is a very useful thing. As a rule, such steps are quite universal and reduce risks. A clause on who, when and under what circumstances will perform them should be present in the business plan.

2. Business plan for investors.

The master plan for business development, however, is needed and not only for internal use. In some cases, it may be presented to third parties. Very often, potential investors study a business plan for evaluation. The decision to invest in your business depends on how well all the nuances are worked out in it. In this case, the document has the status of a conditional "promissory note" and is binding. This may be a business plan for an employment center, receiving grants or subsidies. In order to receive a subsidy to open their own business, the applicant must submit a number of documents to the Employment Center (CZN). Including - a business plan prepared in accordance with the structure that is set by the EPC. Deviations from it are not allowed.

Where can I get a plan?

A business plan can appear in two ways:

1. The first option is to contact specialized company which will do the job. As a rule, such a service is provided by various marketing agencies. Specialists will assess the market situation, conduct the necessary research and calculations, formulate the most acceptable concept development and key key indicators. Naturally, ordering the development of a business plan will require certain expenses. The cost of the service depends on the region, the qualifications of the agency and the amount of work. As a rule, individual wishes of the client are also taken into account in the final document.
2. You can write a business plan from scratch on your own. It's free, but the process requires effort and certain knowledge. As a first step along this path, we can recommend downloading a sample with calculations or ready-made examples, adapting them to your own business.

Independent business planning

We offer you a universal step by step instructions to develop your own business plan.

1. Determine the type of document

Business practitioners and theorists in Russia argue that business plans can be divided into four main types:

• Company business plan. This is the most common type. Document "for internal use", which was written above;

• An investment business plan is developed for investors, describes the characteristics of your business and contains market research data;

• A credit business plan is required to get a loan from a bank. Shows the real need for a loan, the possibility of using credit funds and their repayment;

• Business plan for obtaining a grant or or non-state structures. In such a business plan, it is necessary to focus on the benefits of your business for the region or country as a whole, or its social component (for example, environmental projects).

2. We collect and analyze information

• A description of the product or service you intend to sell. Emphasis should be placed on the competitive advantages of the product. If it is cheap, technologically advanced, or has no analogues at all, be sure to mark it;

• Sales market analysis. It is important to carefully study the potential market for your product or service. This can be done using various tools. For example, analyze sales of similar products or launch a trial batch of your product on the market. At the same time, in practice, one can understand how the product will be distributed, its current price, opportunities to stimulate consumers and promotion channels (advertising);

• Assessment of competitors. You need to study your competitors thoroughly. This will help highlight the advantages of your product, as well as predict the actions of other market players;

• Production analysis. Here it is important to evaluate your own production capabilities (know how much product you can supply to the market), their flexibility (the possibility of modernization, expansion, re-profiling, etc.). It is not bad to evaluate the maximum possibilities of uninterrupted supplies of raw materials and Supplies. If the business plan is drawn up for a company or enterprise Agriculture, then you need to make a certain adjustment for the risks of a natural nature, and all calculations should be carried out based on a pessimistic scenario for the development of the situation;

• organizational moments. Recruiting a team of professionals and organizing work also requires resources. Analyze these points carefully;

• Supposed financial plan. In this part of the study, you need to calculate the costs of the above items and current activities, as well as evaluate revenue, profit, and payback periods.

Recruiting a team of professionals and organizing work also requires resources. Consider these points carefully.

3. We draw up a business plan

So, all the data is collected, systematized and double-checked. The last point is especially important, since mistakes in a business plan can be fraught with serious problems in the future. The time has come to bring all the data and conclusions into a single document and issue it:

• The title page of the document is drawn up according to certain standards. It should contain information about the address and contact details of the enterprise, to whom the document is intended and whether it is confidential. Be sure to indicate the full and short name of the project, the head of the enterprise and this project, the date of commencement of implementation and its duration. Specify the time period during which the data in the document will be relevant;

• Brief summary. On 2-3 pages, describe the essence of the project and its prospects;

• Main part. To prepare this chapter of the business plan, we use pre-collected and structured information, which we already wrote about above. The main part should include the following:

– a detailed description of the type of activity and services of the company;

– market assessment indicating the competitive advantages of the company;

– marketing strategy;

- promotion of goods on the market.

- the cost of providing services;

- a plan for the technical equipment and activities of the company and production capabilities;

– management structure, personnel search;

– assessment of potential risks;

- financial forecast.

• Application. This part of the business plan should include Additional materials substantiating the thesis of the document.

To draw up a business plan, you can use special programs. This will somewhat simplify and automate the process, but the essence of the document will not change from this.

A short algorithm for self-development of a business plan

1. Document type selection: enterprise business plan, investment, loan or grant document.
2. Collection, analysis, verification and systematization of information: description of the goods with identified competitive advantages; study and analysis of the market, competitors, production and organizational measures; investments, revenue, profit and payback periods.
3. Making a business plan. Inclusion in the final document of all data and conclusions drawn on their basis. Let's not forget about the application.

1. Check and recheck the data you use when writing your business plan. Incorrect or out of date information can lead to fatal errors. Use data from official and independent sources for comparison. Use research: surveys, focus groups, launching trial batches of goods.
2. Include in the business plan options for the development of negative scenarios and your actions in this case. This approach allows minimizing risks in the implementation of the project.
3. Take Special attention design. Errors in the final document are not allowed.
4. The business plan in your company must have the status of law. Retreats from actions and key indicators possible only if you or your investors decide so.

Remember that any, even the most well-developed business plan, is just one, albeit a very likely, scenario. Be prepared to adjust it if necessary.

From the desires of wealth does not come. They come from a clear plan of action based on equally clear aspirations. Napoleon Hill, philosopher, bestselling author of Think and Grow Rich

“Greetings, visitor of the blog “Marketer's Diary”. Today we will talk about one of the main tasks of a marketer of any company with a large and diverse assortment. This task is to analyze the product group.

In my work, it is often necessary to analyze a particular group of goods in order to identify its shortcomings and possible ways profit increase. Undoubtedly, all groups are different and it is necessary to analyze them from different angles, depending on the task. I personally developed a general algorithm for analyzing a product group, which I actually try to adhere to. In this article I will reveal the main points with a detailed description.

Algorithm for analyzing a product group

Sales dynamics is integral part analysis of any product group. The dynamics is analyzed according to several main indicators: revenue, quantity of goods sold, profit. Data for the dynamics are taken taking into account the data of past years (from 1 to 3, depending on the global nature of the task). Those. if it is necessary to analyze sales for the last quarter, then the data for the same quarter of the previous year are taken in aggregate. Firstly, this will allow you to see the current dynamics, and secondly, to identify an increase or decrease in comparison with the previous year.

Check analysis, also one of the necessary components of the analysis of a group of goods. I have already mentioned this analysis before, but here I will only add that a comparison with last year is also highly desirable.

ABC - analysis. Article about ABC analysis already published, you can read it by clicking on the link. I will only note that when analyzing a product group, it is more logical to carry out ABC analysis according to two parameters, but this depends on the task. I usually use a combination of revenue and number of units sold, but in very rare cases I combine quantity and profit. And I often deviate from the generally accepted standards of 80/15/5 to my own crushing of 50/35/15.

XYZ analysis assortment. An article has also been published on this type of analysis. Here I will only note that .xyz analysis ideally distributes the assortment into categories of demand predictability.

Share of missing items- in the analysis of the product group, it is also a necessary item, since the goods, for various reasons, simply could not be in stock (buyer's mistake, large delivery lag, interruptions at the supplier) and, as a result, no sales. At the same time, it is worth considering not only how many and which positions were missing, but also which of them belong to category “A” of the previous analysis. I deal with such positions separately - why, who is to blame, how to avoid failures.

Assortment change. This takes into account new items added to the assortment, or items excluded from sale. For excluded items, it is highly desirable to view sales statistics in the previous period and understand the reason for the withdrawal from the range. This point can be easily clarified by talking with the category manager responsible for these positions.

Representation of positions in various price segments and, accordingly, the share of sales in these segments. Here, as a rule, I analyze the breakdown of the assortment by brand (if the brand in this group of goods has some meaning, for example, power tools). I usually cross these two parameters in one table (header - price segment; column - brand) - this is both clear and understandable in what steppe the failures.

Price and assortment analysis of competitors. I choose 3-5 main competitors and analyze the corresponding product group, by price and representation in the competitor's assortment. It is so established that we want to sell better than competitors, and who does not want more money, and as a result, prices should preferably be lower and the assortment should be appropriate, although here it depends on the positioning of the company. Here we also take into account the deviation from the average and minimum prices of competitors.

The last point in the analysis of the product group is the identification of customer preferences. Since the sales data third party companies- this is a toolkit that is difficult to access, you have to dig through the Internet in search of surveys of customer preferences and opinions on forums. You can also conduct a survey of buyers, but this is with a strong need. Yes, not just, but how else. But this is one of the most interesting moments in the duties of a marketer.

Features of the analysis of the product group

Speaking about the analysis of a product group, it is worth mentioning a number of features that, one way or another, affect the state of the group and the general understanding of its development:

• Display of the product group in the hall of the retail point of sale;
• The work of sales consultants in the sale of this product group;
• Awareness of customers about the presence of this product group in the assortment of the company;

Despite the fact that these may be secondary points for the analysis of the product group as a whole, you need to know and understand this, perhaps these are the parameters that are fundamental for this group of products. For example, the sales of the group fell, and why, yes, because they were transferred to the lower shelf a month ago or the consultants forgot about them, but these are, of course, extremes.

Report on the analysis of the product group

In the end, when the product group has undergone a thorough analysis from all points of view, a single document of 7-10 pages is formed. Graphs, diagrams, tables, conclusions and suggestions are added - and that's it, for the judgment of the authorities. If the product group is characterized by a falling trend and its significance for the company is justified, an action plan is proposed for the "resuscitation" of the group, which is subsequently implemented. If the product group does not represent any value for the company, the option and possibility of withdrawing the group's positions from the assortment is calculated.

Colleague, in this article I tried to display as fully as possible how to analyze the product group. If you have any questions, I will be happy to answer them in the comments, so write. That's all.

Method characteristic

Vertical analysis means the expression of financial data in relation to a particular element financial reporting. This means that all elements of the reporting form for certain period divided by this element.

A simpler definition is the division of all numbers in a column by one of those numbers.

The elements that are most commonly used as the base value by which other elements are divided are assets and revenue. Essentially, vertical analysis creates a ratio between each financial statement item and the underlying element.

Vertical analysis allows you to determine the structure of the main elements of assets and liabilities organizations, the influence of individual factors on the financial result, liquidity indicators.

Methodology for vertical analysis of reporting

The calculation of the structure of assets occurs through the division of a certain element of the asset by the total amount of assets. For example, determining the share of inventories in the total asset structure is as follows:

Share of inventories =

cost of inventories

amount of assets

As shown in Figure 1, vertical analysis can be carried out in relation to the three main elements of financial statements: balance sheet, income statement financial results and cash flow statement.

Explanation of the results of vertical reporting analysis

When substantiating conclusions on the identified structure of assets and liabilities, it is necessary to pay attention to the scope of the enterprise, the history of its operation, the state of the market and the influence of its participants, the capital structure. In industrial enterprises, the majority of assets under normal conditions are non-current assets, and in commercial enterprise- stocks of goods.

The same applies to the sources of financing of the enterprise - high share equity indicates low financial risks but also about the incomplete use by the enterprise of its potential. Under conditions of stable market functioning, such a capital structure may turn out to be optimal, however, if it is possible to increase the presence on it, it is important to attract additional borrowed funds to intensify their activities.

Vertical balance analysis

The balance when applying vertical analysis is calculated by dividing each element in balance on the volume of total assets for the same period and expresses the result as a percentage.

For example, Table 1 is a vertical balance sheet analysis for a hypothetical company over two equal time periods. In this example, accounts receivable increased from 35 percent to 57 percent of total assets. What are possible reasons such growth? The increase may mean that the company is making more sales on a credit basis, rather than receiving money for goods and services at the time of sale. Perhaps such actions are a response to the activity of competitors.

Alternatively, an increase in accounts receivable as a percentage of assets could be due to a change in the amount of another asset element, such as a decrease in inventory levels; the analyst will need to figure out why this category of assets has changed.

Another possible reason for an increase in accounts receivable as a percentage of asset value is that the company has lowered its credit standards, relaxed its debt collection procedures, or adopted a more aggressive revenue recognition policy. The analyst may refer to other comparisons and ratios (for example, comparing the growth rate of accounts receivable with the growth rate of sales to determine which explanation is most likely).

Table 1 - Vertical balance sheet analysis for a hypothetical company

Vertical analysis of income statement

Vertical analysis of the income statement implies the division of each reporting element to the proceeds, and sometimes on the size of total assets (for example, in the case of studying the activities financial institutions). If there are several sources of income, you should decompose the income into several elements and display the resulting number as a percentage.

For example, Table 2 provides a vertical analysis of a hypothetical company's income statement for two different time periods. Revenue is broken down into four company services, each shown as a percentage of total revenue. In this example, service A's revenues grew more significantly compared to the company's other services (up 45 percent in period 2).

What are the possible causes and consequences of this change in business structure? Was it a strategic decision for the company to focus on selling category A services because of their higher profitability? Apparently not, because the company's earnings before interest and taxes (EBIT) dropped from 49 percent of sales to 41 percent, so other possible explanations must be considered. In addition, we note that the main reason for the decline in profitability is that the cost increased from 15 percent to 25 percent of total revenue. Is service A using more company resources? If an analyst wants to predict the future performance of a company, then he needs to understand the reasons for the current trend.

In addition, Table 2 shows that corporate income tax as a percentage of sales has been significantly reduced (from 15 percent to 8 percent). At the same time, the share of profit before tax (EBT) (generally a more appropriate comparison) fell from 36 percent to 23 percent. Does the company move its activities to a jurisdiction with lower tax rates? If not, what explains it?

Table 2 - Vertical analysis of the statement of financial results of a hypothetical company

Vertical analysis of companies across industries

As noted earlier, the coefficients and results of vertical analysis are comparable to some reference or standard values. Cross analysis (sometimes called comparative analysis) compares a specific metric for one company with the same metric for another company or group of companies, allowing data to be compared even though companies may be of different sizes and/or operate in different environments.

Table 3 is a vertical balance sheet analysis for two hypothetical companies at the same point in time. Company 1 is clearly more liquid (liquidity is a measure of how quickly assets can be converted into cash) than Company 2, which has only 12 percent of assets in cash, compared to highly liquid Company 1, where cash is 38 percent assets.

Given that cash is generally a relatively low-yield asset and thus not a the best direction use of cash, the question arises, why does company 1 have such a large percentage of its total assets in cash? The company may be preparing for an acquisition or maintaining a large cash position as a hedge against a particularly volatile operating environment.

The second question is, does the relatively high share of accounts receivable in Company 2 indicate a high share of credit sales, a general change in asset composition, a lower credit or collection standard, or is it the result of an aggressive accounting policy?

Table 3 - Vertical balance sheet analysis for two hypothetical companies

In general, vertical analysis is effective method definitions actual changes in the financial condition of the company. It should be used together with horizontal analysis, which will allow you to better understand the real state of affairs. Vertical analysis can be applied to all forms of financial statements of an enterprise.

List of used literature

Buzyrev V.V., Nuzhina I.P. Analysis and diagnostics of financial economic activity construction company/ Textbook. - M.: KnoRus, 2016. - 332 p.

Kogdenko V.G., Economic analysis / Tutorial. - 2nd ed., revised. and additional - M.: Unity-Dana, 2011. - 399 p.

Thomas R. Robinson, International financial statement analysis / Wiley, 2008, 188 pp.

The long-term development of any enterprise depends on the ability of management to identify emerging problems in a timely manner and competently neutralize them. To achieve this goal, financial analytics is used, the purpose of which is to identify all the problematic elements in the company's management tools.

What is the financial analysis of the enterprise

Financial analysis means complex use certain procedures and methods for an objective assessment of the state of the enterprise and its economic activity. The basis for the assessment is quantitative and qualitative accounting information. It is after its analysis that concrete decisions are made. managerial nature.

Financial analysis is focused on studying the economic, technical and organizational level of the enterprise, as well as the departments related to it. The goals of financial analysis include the assessment of the financial and industrial economic activity of the company, including the diagnosis of bankruptcy.

Financial Analysis Priorities

The financial and economic analysis of the state of the enterprise sets specific tasks, the fulfillment of which determines the accuracy of the analytics result. It's about about the opening of reserves and production opportunities that were not used, about assessing the quality, establishing the impact of specific activities on the overall results of management and identifying the factors that caused deviations from the standards. In the process of analysis, a forecast of the expected results of the enterprise's activities and the preparation of information necessary for making a management decision are also carried out.

It can be argued that the financial analysis enterprises play a role financial management both in the company itself and in the process of cooperation with partners, tax authorities, financial and credit system. This takes into account business activity, financial stability, profitability and profitability. The analysis itself can also be defined as a tool for managing, planning, as well as monitoring the company's activities and its diagnostics.

At the same time, it should be noted that the analysis of specific aspects of the enterprise's activity is based on the analysis of the system of indicators, moreover, in a dynamic state. This is explained by the fact that the financial and production and economic activities of the company, as well as its divisions, have interrelated indicators. For this reason, changes in specific indicators can affect the final financial technical and economic indicators of the enterprise.

Financial and economic analysis of the enterprise: goals

Speaking about this form of analysis of the company's activities, it is worth noting that it involves a combination of deduction and induction methods. In other words, during the study of single indicators, the analyst should also take into account the general ones.

Another important principle is that when analyzing an enterprise, all types of business processes are studied taking into account their interdependence, interdependence and interconnection. As for the analysis of factors and causes, in this case, the analytics is based on the understanding of the following principle: each factor and cause must receive an objective assessment. Therefore, both causes and factors are initially studied, after which their classification into groups follows: secondary, main, insignificant, essential, little determining and determining.

The next step is to study the impact on business processes defining, basic and essential factors. On the other hand, little-determining and insignificant factors are studied only if necessary and only after the completion of the main part of the analysis. It is worth considering the fact that financial analysis does not always involve the study of all factors, since this is relevant only in some cases.

At the same time, if we talk about the exact goals of the financial analysis of the enterprise, it makes sense to define the following components of the assessment process:

• analysis of the ability to repay loans;
• tracking the state of the enterprise at the time of assessment;
• bankruptcy prevention;
• assessment of the value of the company in case of its merger or sale;
• dynamics tracking financial condition;
• analysis of the enterprise's ability to finance investment projects;
• forecasting financial activities enterprises.

It should be noted that in the process of studying the financial condition of an enterprise, the help of a financial analyst can be used by those economic entities that are focused on obtaining extremely accurate and objective information about the activities of the enterprise.

These entities can be divided into two categories:

• External: creditors, auditors, government agencies, investors.
• Internal: shareholders, audit and liquidation commission, management and founders.

Another purpose for which financial analysis can be carried out, but not at the initiative of the enterprise, is to assess the investment potential and creditworthiness of the company. Such analytics, as a rule, is of interest to banks, for which it is important to ensure the solvency and profitability of the enterprise. This is logical, since any potential investor is interested in obtaining information regarding the liquidity of the company and the degree of risk regarding the loss of the deposit.

Features of internal and external analysis

Internal financial accounting and analysis is necessary in order to meet the needs of the enterprise itself. It can be focused both on identifying the degree of liquidity of the company, and on a thorough assessment of its results within the last reporting period. Such valuation methods are relevant when a financial analyst or firm's management intends to determine how realistic and relevant the allocation of funds for the expansion of production that was planned, and what effect additional costs can have on it.

With regard to external financial analysis, it is carried out by analysts who are not related to the enterprise. Access to inside information They also don't have a company.

If an internal analysis is carried out, then there will be no problems with attracting information of any category, including one that is not available. In case of external analysis Initially, some limitations of assessment methods due to the lack of information in full are taken into account.

Types of financial analysis

Analytics, with the help of which the state of the enterprise is assessed, can be divided into several key types according to the content of the management process:

• retrospective, or current analysis;
• perspective (preliminary, predictive);
• operational financial and economic analysis;
• analysis that takes into account the results of a particular period of time.

Each of the types is used depending on the key task.

Methods of financial analysis

The current methods of financial analytics include the following areas:

• Vertical analysis. This is one of the types of assessment of the financial statements of an enterprise, in which the share of balance sheet items and various types of liabilities and assets is analyzed. With this technique, the distribution of resources is shown in shares.

• Horizontal analysis. This is about financial analytics a company in which a dynamic assessment of balance sheet items is made. Both the nature and the direction of the trend are assessed.
• Ratio analysis. With this type, financial, economic and production indicators are calculated based on financial statements. Such financial and accounting analysis also examines reports on losses, profits and other regulatory documentation. The calculation of the coefficients makes it possible to evaluate the effectiveness and efficiency various resources, activities and capital of the company including.
• Trend analysis. With such an assessment, each reporting position is compared with specific previous periods, as a result, the trend of the enterprise's movement is determined. With the help of the established trend, the possible values ​​of future indicators are formed. In other words, a prospective analysis is carried out.
• Factor analysis. In this case, an assessment of the impact of specific factors on the final results of the company's activities is used. Stochastic and deterministic methods are used for research.
• Comparative analysis. We are talking about on-farm analytics of the summary indicators of shops, divisions, subsidiaries, etc. An inter-farm financial analysis of the organization is also carried out in relation to the indicators of competing enterprises.

Ratio analysis as the main tool of financial analytics

As a key method of financial analysis, you can define the coefficient. This is explained by the fact that a quantitative assessment of the state of the company and the adoption of various managerial decisions aimed at changing specific indicators are made on the basis of financial and economic ratios. In this case, one can observe a direct relationship between those resources of the company that were taken into account and the efficiency of their operation, expressed through the values ​​of financial and economic ratios and data in the balance sheet items.

This method of financial analysis involves the evaluation of four relevant groups of economic indicators:

• Profitability (profitability) ratios. Such data serves to reflect the profitability of the company's capital when generating income through the use of assets of various types.
• Coefficients of financial reliability (stability). In this case, the level of own and borrowed capital of the company is demonstrated, and the capital structure of the company is also displayed.
• Solvency (liquidity) ratios. Reflect the ability and ability of the organization to timely short-term and long-term debt obligations.

• Turnover ratios (business activity). Using this information, you can determine the number of company assets for a particular reporting period and the intensity of their turnover, among other things.

The method of financial analysis, in which the coefficients of the enterprise are taken as the basis for calculations, is considered important because it makes it possible to identify crisis phenomena in the company in a timely manner and take relevant measures to stabilize the situation.

This type analysis is part of the strategic management of the organization.

Examples of financial analytics

In order to understand the essence of assessing the state of the organization, it is necessary to study the example of financial analysis. For example, for the entire period of the period under study, the margin was stable, but there was a certain decrease.

During the study period, an increase in the turnover rate of goods by 35 days was revealed. This indicates the presence of illiquid stocks and an increase in the number of stocks of goods. At the same time, the optimal value of turnover for hardware stores is 80-90 days.

As for accounts receivable, the enterprise does not have it - all retail of the company is made on the terms of payment upon delivery. Accounts receivable turns over within 4-7 days, which can be defined as a positive indicator.

At the same time, the operating cycle also increased by 35 days within the period covered by the analysis. It is obvious that it (the cycle) corresponds to an increase in the duration of the turnover. Due to the increase in the term of trade turnover, the term of the financial cycle has also increased.

An example of this kind defines the financial analysis of an enterprise as sufficient stable activity, at which overstocking of the warehouse is possible. To optimize the process as much as possible, it is necessary to revise the procurement policy in order to reduce the turnover period.

How to analyze bank activity

The financial analysis of the bank is focused on ensuring quality management through the development of key parameters of its activities. We are talking about such indicators as the profitability of operations, capital and payment turnover, the structure of assets and liabilities, the efficiency of the bank's divisions, portfolio risks financial resources and intrabank pricing.

In order for the study of the state of the bank to be successful, certain conditions must be met: the information used for the analysis must be reliable, accurate, timely and complete. If the provided data does not correspond to reality, the applied methods of financial analysis will not be able to lead to objective conclusions. This means that the impact of some problems will be underestimated, which may worsen the situation.

The reliability of information is assessed in the process of inspection checks and during documentary supervision.

Methods for researching the state of the bank

Various aspects of the bank's activities are evaluated through the use of scientific and methodological tools. It is with their help that you can develop the optimal solution to specific problems of a managerial nature.

There are popular methods of bank financial analysis:

• Dynamic balance sheet equation. This technique involves accounting for profits and losses. Through such control, factorial financial assessment the state of the bank and the fact how profitable its activities are.
• Modified balance sheet management (liabilities are equal to assets). In this case, financial analysis involves quick assessment efficiency of bank liabilities management.
• Basic balance sheet management (assets are equal to the sum of equity and paid liabilities). The key principle of this valuation technique is the effective disposal and ownership of all bank assets.
• The capital balance equation (the bank's capital is equal to assets minus paid liabilities). This type of equation is relevant when it is necessary to obtain a final assessment of how effective the management of available capital was within the increment own capital. This methodology is also used to identify and exploit higher yield reserves.

Thus, we can conclude that the financial analysis of the enterprise, an example of which was given above, is a necessary measure for determining the state and profitability of the company. Without such analytics, the efficiency of the enterprise can be significantly reduced, and at the same time, rehabilitation measures may not be relevant if the assessment is not timely.

Analysis of the financial condition of the enterprise: