The financial condition of the enterprise is a turnover of cash flows that service the sale and production of its products. The fact is that between the developing rates of production and the economic condition of the organization, there is a system of co-dependencies. The growth in industrial volumes will improve the state of the company, while its reduction, on the contrary, will worsen. But financial well-being, in turn, will affect production: it will slow it down or speed it up. Let us consider this problem in more detail, as well as the features of the analysis and evaluation of organizations.
The financial condition of the enterprise will depend on a number of indicators - indicators of working capital, property, settlements and payments. Difficulties in the organization arise due to lack of funds, unavailability of loans, shortening the terms for their provision, improper investment, their unreasonable use, and so on.
There is a special technique for analyzing the financial condition of an enterprise. Its content consists in predicting and evaluating the organization on this issue in accordance with the accounting and reporting data.
The financial condition of the enterprise in this case should be considered from the following positions:
- it is necessary to evaluate the organization in terms of its economic content;
- It is recommended to determine how the system of factors (external and internal) influences the basic and basic indicators, as well as identify existing deviations from them;
- There should be regular forecasting of the state of the company;
- regular justification, development and preparation for making a system of decisions to improve the situation in the company is recommended.
Analysis and assessment of the financial condition of the enterprise should take place in two directions:
- internal analysis will necessarily be carried out by employees of this organization in accordance with the approved plan;
- audit (external analysis) should be determined by the interests of other users and conducted on the basis of official accounting data.
The financial condition of the enterprise will be successful if it is able to exist, develop, and also maintain equilibrium in its assets and liabilities in a situation of changing external and internal reality.
The fact is that even with high incomes, an organization may experience difficulties if it uses its financial resources irrationally. For example, if it was decided to invest them in excess reserves or to allow for large loan arrears.
Among the positive factors of economic stability, we can distinguish the presence of sources and reserves for the formation of cash reserves, and among the negative ones, their value.
Consequently, in order to find the main ways out of a crisis or unstable state, it will be necessary to take into account a number of conditions. Let's consider them in more detail.
Firstly, regular replenishment of all sources of industrial inventories is recommended.
Secondly, there should be a gradual increase in the share of own funds at the expense of profit.
Thirdly, the most important stage of the analysis of economic stability is the determination of the availability, development and dynamics of working capital, and most importantly, their safety.
Fourth, it is necessary to optimize the structure of own funds, as well as a reasonable decrease in their stock levels.
One of the main criteria for assessing the state of a company is its solvency, long-term (ability of the company to pay off obligations in the long term) and current (ability of the company to pay for existing short-term obligations).