For analysis financial condition enterprises use certain methods and tools.
The simplest method is comparison, when the financial indicators of the reporting period are compared either with the planned or with the indicators for the previous period (baseline).
When comparing indicators for different periods it is necessary to achieve their comparability, i.e. the indicators should be recalculated taking into account the homogeneity of the constituent elements, inflationary processes in the economy, assessment methods, etc.
Grouping method. Indicators are grouped and tabulated, which makes it possible to carry out analytical calculations, identify trends in the development of individual phenomena and their relationship, identify factors that affect the change in indicators.
The method of chain substitutions, or elimination, consists in replacing a separate reporting indicator with a basic one, all other indicators remain unchanged. This method makes it possible to determine the influence of individual factors on the aggregate financial indicator.
As a toolkit for financial analysis financial ratios are widely used - the relative indicators of the financial condition of the enterprise, which express the ratio of some absolute financial indicators to others. Financial ratios are used:
To quantitatively characterize the financial condition;
To compare the indicators of the financial condition of a particular enterprise with similar indicators of other enterprises or industry averages;
To identify the dynamics of the development of indicators and trends in the financial condition of the enterprise;
To determine the normal limits and criteria for various aspects of the financial condition.
For example, in accordance with the Decree of the Government of the Russian Federation of May 20, 1994 No.
"On some measures to implement the legislation on insolvency (bankruptcy) of enterprises
yatiy ”№ 498 introduced a system of criteria to determine the unsatisfactory structure of the balance of insolvent enterprises. Such criteria are the current liquidity ratio, the equity ratio working capital, coefficient of recovery (loss) of solvency. Their normal limits are determined - the limiting sizes.
Certain algorithms and formulas are used for the financial analysis of an enterprise. The main information source for such analysis is the accounting banana. For the convenience of work, reducing the space and time for writing formulas used in the analysis, it is advisable to record the balance sheet indicators and other financial indicators using the following conventions: Balance sheet indicators
I. Non-current assets -Ae
II. Current assets-A"Stocks - 3
Accounts receivable, short-term financial investments,
cash and other assets - E Short-term financial investments and cash - V Sh. Capital and reserves - K
V. Long-term liabilities (long-term loans and borrowings) - II "
Vi. Short-term liabilities - Z * Short-term loans and borrowings - M Accounts payable and other liabilities - N Balance sheet currency - B
Estimated financial indicators Amount of own circulating assets - 1
Surplus or shortage of own working capital - Surplus or shortage of the total value of the main sources from
formation of stocks and costs - ± E ° Sources that weaken financial tension - I ".
More on topic 8.2. Financial analysis methods and tools:
- 32. Carrying out financial analysis at the enterprise. Steps and methods
To analyze the financial condition of an enterprise, certain methods and tools are used.
The simplest method is comparison, when the financial indicators of the reporting period are compared either with the planned or with the indicators for the previous period (baseline). When comparing indicators for different periods, it is necessary to achieve their comparability, i.e. the indicators should be recalculated taking into account the homogeneity of the constituent elements, inflationary processes in the economy, assessment methods, etc.
The next method is - groupings. The indicators are grouped and tabulated, which makes it possible to carry out analytical calculations, identify trends in the development of individual phenomena and their interconnection, identify factors that affect the change in indicators.
Method chain substitutions, or elimination, consists in replacing a separate reporting indicator with a basic one, all other indicators remain unchanged. This method makes it possible to determine the influence of individual factors on the aggregate financial indicator.
As a financial analysis toolkit are widely used financial ratios- relative indicators the financial condition of the enterprise, which express the ratio of some absolute financial indicators to others. Financial ratios used to quantitatively characterize the financial condition; comparison of indicators of financial condition specific enterprise with similar indicators of other enterprises or industry average indicators; identifying the dynamics of the development of indicators and trends in the financial condition of the enterprise; determination of normal limits and criteria for various aspects of the financial condition.
For example, in accordance with the Government Decree Russian Federation No. 498 of 20.05.94 "On some measures to implement legislation on insolvency (bankruptcy) of enterprises" introduced a system of criteria to determine the unsatisfactory structure of the balance of insolvent enterprises. These criteria include the ratio of current liquidity, the ratio of the availability of own circulating assets, the coefficient of restoration (loss) of solvency. Their normal limits - limiting values - have been determined.
Certain algorithms and formulas are used for the financial analysis of an enterprise. Basic information source for this analysis - the balance sheet. For the convenience of work, reducing the space and time for writing formulas used in the analysis, it is advisable to record the balance sheet indicators and other financial indicators using the following legend.
Balance sheet indicators:
I. Non-current assets - Av;
II. Current assets - JSC;
Stocks - 3;
Accounts receivable, short-term financial investments, cash and other assets - D;
Short-term financial investments and funds - B;
III. Capital and reserves - K;
V. Long-term liabilities (long-term loans and borrowings) -
Vi. Short-term liabilities - Pk;
Short-term loans and borrowings - M;
Accounts payable and other liabilities - N;
Balance currency - B;
Estimated financial indicators
Own working capital - EU;
The total value of the main sources of formation of costs and stocks - Eo;
Surplus or shortage of own circulating assets - ± Ес;
Surplus or shortage of the total value of the main sources of formation of reserves and costs ± Eo;
Sources of Easing Financial Tensions - I °.
To analyze the financial condition of an enterprise, certain methods and tools are used.
o The simplest method is comparison, when the financial indicators of the reporting period are compared either with the planned or with the indicators for the previous period (baseline). When comparing indicators for different periods, it is necessary to achieve their comparability, i.e. indicators should be recalculated taking into account the homogeneity of the constituent elements, inflationary processes in the economy, assessment methods, etc.
- The next method is grouping. Indicators are grouped and tabulated, which makes it possible to carry out analytical calculations, identify trends in the development of individual phenomena and their relationship, identify factors that affect the change in indicators.
- The method of chain substitutions, or elimination, consists in replacing a separate reporting indicator with a basic one, all other indicators remain unchanged. This method makes it possible to determine the influence of individual factors on the aggregate financial indicator.
- As a tool for financial analysis, financial ratios are widely used - the relative indicators of the financial condition of the enterprise, which express the ratio of some absolute financial indicators to others. Financial ratios are used: to quantify the financial condition; to compare the indicators of the financial condition of a particular enterprise with similar indicators of other enterprises or industry average indicators; to identify the dynamics of the development of indicators and trends in the financial condition of the enterprise; to determine the normal limits and criteria for various aspects of the financial condition. For example, in accordance with the Decree of the Government of the Russian Federation "On some measures to implement legislation on insolvency (bankruptcy) of enterprises" No. 498 of May 20, 1994, a system of criteria was introduced to determine the unsatisfactory structure of the balance of insolvent enterprises. These criteria are the ratio of current liquidity, the ratio of the availability of own circulating assets, the coefficient of restoration (loss) of solvency. Their normal limits are determined - the limiting sizes.
Certain algorithms and formulas are used for the financial analysis of an enterprise. The main information source for this analysis is the balance sheet.
More on the topic Methods and tools of financial analysis:
- The essence of strategic financial analysis and methods of its implementation
- Methodological tools for taking into account the risk factor in the preparation of strategic financial decisions
- Methodological tools for assessing the value of the generated financial resources
- Technical analysis tools: types of charts, market movements
- 15.2. Fundamentals of the methodology of financial analysis of balance sheet items Analysis of the financial condition of the organization
- Methods for implementing a financial strategy in the context of current changes in the external financial environment
- Analysis of the economic activity of a motor transport company is the basis for planning. Method and basic techniques of analysis
Course work
By discipline " Organization finances»
Theme: « Assessment of the borrower's creditworthiness»
Performed:
student gr. 13315
Babina Anastasia Vladimirovna
Supervisor:
candidate ek. D., associate professor
Sukhodoev Dmitry Viktorovich
Introduction. 3
Chapter I. Theoretical aspects of assessing the creditworthiness of the borrower. 5
1.1 The essence and purpose of financial analysis. Methods and tools for financial analysis. 5
1.2 Methods for assessing creditworthiness. eight
1.3 Methods for assessing creditworthiness. ten
1.4 Analysis of balance sheet liquidity. 12
1.5Analysis of the solvency of the enterprise and the financial stability of the enterprise. fourteen
1.6 Analysis of efficiency of use current assets... Analysis financial results enterprises. 17
1.7 Improvement of methods for assessing the creditworthiness of the borrower. 21
Chapter II. The practical aspect of assessing the creditworthiness of an enterprise on the example of LLC "Yantar" 24
2.1 Calculations of indicators and ratios of balance sheet liquidity. 24
2.2 Calculation of indicators of solvency and financial stability of the enterprise. 25
2.3 Calculation of efficiency indicators for the use of current assets. 27
2.4 Calculation of creditworthiness and bankruptcy according to the methods of Aldman, Chesser and Beaver. 29
Conclusion. 34
References: 36
Introduction
In a market economy important source borrowed funds of the enterprise is Bank loan, thanks to which enterprises have the opportunity to modernize and expand their production. But before the bank will issue a loan, it is necessary to assess the level of creditworthiness of a potential borrower.
Therefore, the relevance of the topic of the work is determined by the fact that the assessment of potential and actual borrowers, their financial condition in terms of the return of the principal amount and interest on it was and remains the most significant both for banks and for organizations receiving funds. Scientific novelty term paper lies in the fact that for the first time information on this topic was systematized in such a sequence, ratios, indicators were calculated, various methods of assessing the borrower's creditworthiness (LLC Yantar) were presented, and the corresponding conclusions were drawn.
The level of the client's creditworthiness indicates the degree of individual (private) risk of the bank associated with the issuance of a specific loan to a specific borrower, which is why, when carrying out credit operations, banks always try to obtain the most accurate assessment of credit risk, that is, to objectively assess the creditworthiness of the borrower. It is the problem of assessing the borrower's creditworthiness that is posed in my term paper.
In order for the topic to be disclosed as fully as possible, I used the latest editions of textbooks, periodicals and normative legal acts... Based on the listed sources, the course work contains two chapters: theoretical, which discusses the main aspects of this problem and ways to improve it, and practical, the object of analysis of which is LLC "Yantar".
The first chapter consists of several points, each of which reveals important provisions of the topic of the work. So, it considers such issues that are components of the topic, such as balance sheet liquidity, methods for assessing creditworthiness, solvency and financial stability of an enterprise, assessing the level of bankruptcy. Each of this question has been studied in detail: the analysis values, indicators and coefficients, and calculation features are described.
The second chapter is devoted exclusively to the practical aspects of the topic of the course work, which are based on the income statement and on the balance sheet of the organization "Yantar". The points in the second chapter are almost the same as the points in the first chapter. In addition, using different techniques the analysis of potential bankruptcy and solvency was carried out.
Thus, in general, when writing a term paper, I set myself the goal of in-depth analysis of the assessment of the borrower's creditworthiness. Achieving this goal is possible when performing the following tasks:
· Studying information from various sources and its systematization;
· Analysis of coefficients, indicators and methods related to the topic of the course and the choice of those that will most fully help to reveal the topic of work;
· Calculation of the selected indicators, coefficients and methods and analysis of the obtained values;
· Development of conclusions by chapters and by work as a whole.
· Comparison of the tasks and goals with the results obtained.
Chapter I. Theoretical aspects of assessing the creditworthiness of the borrower.
The essence and purpose of financial analysis. Methods and tools for financial analysis.
One of essential conditions successful financial management of an enterprise is the analysis of its financial condition. The financial condition of the enterprise is characterized by a set of indicators reflecting the process of formation and use of its financial resources... In a market economy, the financial condition of an enterprise essentially reflects the final results of its activities. It is the final results of the enterprise that are of interest to the owners (shareholders) of the enterprise, its business partners, tax authorities... This predetermines the importance of analyzing the financial condition of an economic entity and increases the role of such analysis in the economic process.
Analysis of the financial condition is an indispensable element of both the financial at the enterprise and its economic relations with partners, the financial and credit system.
Financial analysis objectives:
1. Identification of changes in financial indicators.
2. Determination of factors affecting the financial condition of the enterprise.
3. Assessment of quantitative and qualitative changes in financial condition.
4. Assessment of the financial position of the company at a specific date.
5. Determination of trends in the financial condition of the enterprise.
When conducting analytical work the financial manager can use software tools, which is much more efficient, and do the work manually. The algorithm underlying the analysis of the financial situation of the enterprise, both in that and in the other case, is based on relationships inherent in the balance sheet and other forms of reporting.
Currently, a number of firms are involved in the development of special analytical programs. Analysis of the financial condition of the enterprise includes the following stages:
1. Preliminary (general) assessment of the financial condition of the enterprise and changes in its financial indicators for the reporting period.
2. Analysis of the solvency and financial stability of the enterprise.
3. Analysis of the creditworthiness of the enterprise and the liquidity of its balance sheet.
4. Analysis of the turnover of current assets.
5. Analysis of the financial results of the enterprise.
6. Analysis of the potential bankruptcy of the enterprise.
To analyze the financial condition of an enterprise, certain methods and tools are used.
· The simplest method is comparison, when the financial indicators of the reporting period are compared either with the planned or with the indicators for the previous period (baseline). When comparing indicators for different periods, it is necessary to achieve their comparability, i.e. indicators should be recalculated taking into account the homogeneity of the constituent elements, inflationary processes in the economy, assessment methods, etc.
· The next method is groupings. Indicators are grouped and tabulated, which makes it possible to carry out analytical calculations, identify trends in the development of individual phenomena and their relationship, identify factors that affect the change in indicators.
· The method of chain substitutions, or elimination, consists in replacing a separate reporting indicator with a basic one, all other indicators remain unchanged. This method makes it possible to determine the influence of individual factors on the aggregate financial indicator.
· As a tool for financial analysis, financial ratios are widely used - the relative indicators of the financial condition of the enterprise, which express the ratio of some absolute financial indicators to others. Financial ratios are used: to quantify the financial condition; to compare the indicators of the financial condition of a particular enterprise with similar indicators of other enterprises or industry average indicators; to identify the dynamics of the development of indicators and trends in the financial condition of the enterprise; to determine the normal limits and criteria for various aspects of the financial condition.
Creditworthiness, solvency, liquidity are concepts that are close and interconnected. Before considering the issue of assessing the creditworthiness of a bank client or the creditworthiness of an enterprise (organization). Let's give definitions to all of the above concepts.
Liquidity - the mobility, mobility of the assets of an enterprise, an organization, providing the actual ability to uninterruptedly pay on time all their obligations and the monetary requirements imposed on them.
The liquidity of firms is the ability of firms to repay their debt obligations in a timely manner; depends on the amount of debt, as well as on the volume of liquid funds.
Creditworthiness - the presence of prerequisites for obtaining a loan, the ability to repay it. The borrower's creditworthiness is determined by indicators characterizing his accuracy in calculations on previously received loans, his current financial position and the prospects for change, the ability to mobilize funds from various sources as needed.
Liquidity is a narrower concept than creditworthiness, and it refers, as a rule, to the assessment of the balance sheet, the ratio of assets and liabilities of firms. Creditworthiness is a broad category, which, in addition to assessing the financial condition, includes the assessment of other components of the firm, thus, creditworthiness includes the concept of liquidity.
Solvency - the ability of the state, legal entity or individual to timely and fully fulfill its payment obligations arising from trade, credit or other transactions of a monetary nature.
It should be noted that the concepts of creditworthiness and solvency can characterize various events... If we proceed from the fact that solvency refers not only to the legal, but to the state and to an individual, and creditworthiness is used only by a credit institution when issuing a loan, then these two concepts can be regarded as identical, equal, but related to different financial situations.
Further, the concept of creditworthiness will be used as the most capacious characteristic of the borrower in the analysis of loan issuance. When analyzing creditworthiness, it is also necessary to estimate the value financial risk internal and external investors of the organization, determined by the maturity of the debt. Financial ratios for raising funds show the potential level of asset coverage of existing debt in the event of liquidation of the enterprise.
We have noted the differences between the concepts of creditworthiness and solvency, however, the level of solvency is directly dependent on the level of solvency and financial stability. But the attraction of paid borrowed sources of financing is advisable only if the purpose of such attraction is to improve financial performance, including providing conditions for repayment of the loan and the payment of interest on it. In this regard, the result of attracting a loan should be an increase in the value of assets, leading to an increase in revenue and profits. Thus, the creditworthiness should be assessed by a wider range of indicators in comparison with the solvency and financial stability.
