The Companies Financial Condition Analysis

Аннотация

In our article, information is provided about the methods of analyzing the financial condition of companies and its importance. Information is also given about the possible outcomes of this analysis for financial management and administration. The implementation of financial analysis based on accounting reports, the utilization of this analysis for various purposes, and the evaluation of information are discussed. Key words: high-level condition, internal analysis, financial managers, financial analysis, financial management, asset management, budget report, market economy, external analysis, external economic environment, classification, debtor, report, growth, currency movement, analysis, accounting balance. 1 INTRODUCTION used in the effective utilization of financial strategies. It plays its role in internal and external diagnosis. The financial condition of enterprises is an The identification of internal factors is used economic indicator, and its importance is very to improve the management of assets, i.e. it is used significant, especially in the conditions of market in the use of valuable papers. economy, knowing the theoretical foundations of - Study the price dynamics of goods. enterprises' independent activities at a time when -tax office (tax collection agency) and bank their activities are growing gains special importance. credit deposits, securities issuance: The financial situation of companies is - Activities of competitors in the financial changing very quickly. This, in its turn, increases the and commodity markets and the like: importance of the companies’ financial situation Financial analysis conducted provides analysis. alternative solutions and the possibility of The financial condition of enterprises can monitoring them. be assessed by expressing the method of evaluating Internal users (employees and managers) in traditional terms, and this also enables forecasting assess their financial performance and identify its the financial condition of enterprises according to growth trends based on the accounting report. The the accounting report. This financial analysis is accounting report is the main database that carried out. determines the company's investment and financial Financial analysis is usually divided into status. two types - internal and external. Internal analysis is It is possible to make the following decisions with carried out by financial managers of companies. the help of financial analysis: External analysis, on the other hand, is conducted by individuals who come from outside, such as auditors. 1. Short-term financial management of companies The companies’ financial situation analysis (filling out balance sheets). serves several purposes, including:[1] Determination of the financial situation; 2. Long-term financial Determination of the changes in the financial condition at the certain time; management (capital investment, profitable Identification of the main factors causing investment securities, and issuance of valuable changes in the economic situation; papers). Analysis of the economic situation using Paying dividends to shareholders. economic and mathematical methods and modern computer programs; 3. Mobilizing economic growth opportunities The purpose of financial analysis, along (increasing sales and profit growth). with cooperation, should not only be limited to determining the financial condition of companies, 4. Financial analysis shows the correlation between but also to constantly improve their financial the implementation of accounting information and situation as much as possible. the financial solution accepted by company leaders. Financial analysis helps to identify weaknesses and provide opportunities to eliminate those weaknesses. Therefore, financial analysis is a management tool in modern conditions. Financial analysis is considered to play the main role in financial management. Financial management is the art of managing the financial conditions of companies. This management art is 1. Report No. 1 – with form (consistency of companies). Analysis of 2. Report No. 2 – with form (financial results economic report). activity 3. Report No. 1-f – with form (report on main financial indicators of companies). Financial Management 4. Report No. 2-f – with form (report on analysis analysis composition of company expenses). 5. Report No. 5 – with form (addition to the consistency of companies). Analysis of the Financial analysis Domestic financial internal production of based on the stable based on the the farm on the basis bugalteria report buggalteria report In addition, the use of the following indicators is of management relevant for analyzing the financial condition of a company: 1.1. Heading. The source of information for - investment activity financial analysis is based on accounting reports. - movement of debt amounts Providing users with complete and accurate - debtor-creditor debts information about the financial condition of - composition of non-c