Analyzing the financial condition of companies

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 those weaknesses. Therefore, financial analysis is a management tool in modern conditions. Financial analysis is considered the main The financial condition of enterprises is an role of financial management. Financial economic indicator, and its importance is very management is the art of managing the financial significant, especially in the conditions of market conditions of companies. This management art is economy, knowing the theoretical foundations of used in the effective utilization of financial enterprises' independent activities at a time when strategies. It plays its role in internal and external their activities are growing gains special importance. diagnosis. The financial situation of companies is The identification of internal factors is used changing very quickly. This in turn increases the to improve the management of assets, i.e. it is used importance of analyzing the financial situation of in the use of valuable papers. companies. - Study the price dynamics of goods. The financial condition of enterprises can -tax office (tax collection agency) and bank be assessed by expressing the method of evaluating credit deposits, securities issuance: in traditional terms, and this also enables forecasting - Activities of competitors in the financial the financial condition of enterprises according to and commodity markets and the like: the accounting report. This financial analysis is Financial analysis conducted provides carried out. alternative solutions and the possibility of Financial analysis is usually divided into monitoring them. two types - internal and external. Internal analysis is Internal users (employees and managers) carried out by financial managers of companies. assess their financial performance and identify its External analysis, on the other hand, is conducted by growth trends based on the accounting report. The individuals who come from outside, such as auditors. accounting report is the main database that The analysis of the financial situation of determines the company's investment and financial companies serves several purposes, including:[1] status. Determine the financial situation; It is possible to make the following decisions with Determining the change in financial the help of financial analysis: condition at a certain time; Identifying the main factors causing 1. Short-term financial management of companies changes in the economic situation; (filling out balance sheets). Analyze the economic situation using economic-mathematical methods and modern 2. Long-term financial computer programs; The purpose of financial analysis, along management (capital investment, profitable with cooperation, should not only be limited to investment securities, and issuance of valuable determining the financial condition of companies, papers). but also to constantly improve their financial Paying dividends to shareholders. situation as much as possible. Financial analysis helps to identify 3. Mobilizing economic growth opportunities weaknesses and provide opportunities to eliminate (increasing sales and profit growth). 4. Financial analysis shows the correlation between Annual reports allow for a thorough analysis of a the implementation of accounting information and company's financial condition beyond its financial the financial solution accepted by company leaders. performance. Until January 1, 1997, the following reports formed the basis for financial analysis: 1. Report No. 1 - by form (consistency of Analysis of companies). economic activity 2. Report No. 2 - by form (financial results report). 3. Report No. 1-f - by form (report on main financial indicators of companies). Financial Management 4. Report No. 2-f - by form (report on composition analysis analysis of company expenses). 5. Report No. 5 - by form (addition to the Analysis of the consistency of companies). Financial analysis Domestic financial internal production of based on the stable based on the the farm on the basis bugalteria report buggalteria report of management In addition, the use of the following indicators is relevant for analyzing the financial condition of a 1.1. Heading. The source of information for company: financial analysis based on accounting reports. - investment activity Providing