What is the financial analysis and for what it is necessary
financial analysis of the enterprise
The financial analysis is the process which result gives the total and objective characteristic of a financial condition of the organization a method of an assessment of passives and assets, receivables and payables, its stability and liquidity.
Parameters of the financial analysis are divided into the following: look, method, model and task. The following belongs to the main objectives of the financial analysis: analysis of assets, analysis of financial stability, analysis of liquidity and analysis of market cost. Behind a look the financial analysis is classified on internal and external on parameter of the user and on retrospective and perspective on a temporary indicator. According to nature of carrying out the financial analysis can be technical, special, investment and the reporting analysis.
Three key components form a method of carrying out the financial analysis. Two of them, the device and category, characterize a statistical part of the analysis, and dynamic the system of regulatory principles characterizes.
The vertical method analyzes changes of indicators of the reporting. The horizontal method analyzes tendencies of changes of groups of indicators of the reporting. The method of the analysis of a number of factors defines a financial condition of the enterprise.
The model is the chosen scheme of carrying out the financial analysis which gives the chance to structure interrelations between the main indicators of financial activity. It is possible to define a condition of the accounting reporting by descriptive model and through it to receive the main assessment of a financial condition of the enterprise. Predicative model use for calculation of prospects and a forecast of the income. The standard model compares planned and actual financial performance of the enterprise.
The financial analysis reflects results of activity of the enterprise. Without it it is impossible to operate the company effectively. Results of the financial analysis are interesting to owners of the company, partners, and also tax authorities of the state.
Main objective of the financial analysis is identification of key indicators of work of the enterprise, losses, profits and prospects.