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 Performance analysis of commercial enterprise - Economic-mathematical modeling

TABLE OF CONTENTS

Introduction ... 2

I. Brief description of the company ... 3 ...

II. Turnover ... ... 3

O Dynamics of turnover of working capital ... ... 6

O Assessment of turnover of inventories ... ... 8

O Summary tables Asset Turnover Ratios ... 14Vyvody under the section "Turnover" ... ... 16

III. Profitability ... ... 17

3.1. Return on equity ... 17

3.2. Profitability ratios sales ... 19

3.3. Evaluating the effectiveness of production ... 19

O Summary tables margins ... 21

Conclusions under the heading "Indicators of profitability" ... 24

Appendix [1] ... ... ... 25

Bibliography ... ... 40

Introduction

When a society has gone from a planned economy and came into the market, then from that point conditions for the functioning of enterprises have completely changed, ie, to survive, the company must take the initiative, enterprise and thrift in order to improve the efficiency of production, so as not to be on the verge of bankruptcy.

The market economy requires a different way of thinking and a behavior of all its members. She would not tolerate that in factory warehouses and open areas of rot and rusted huge reserves of raw materials, as it was in the national conditions ("no man") property. The market economy will set in motion all these huge resources that each ruble invested in production profitable.

The habit of working for a plan of care in the past, because the plan of the guide to action turned into a "domoklov sword" hanging over any enterprise. Tried to implement the plan at any cost, without thinking about the costs and effectiveness of production. This explains the old method of analysis of economic activity - to identify deviations from the plan. This was the main figure.

In the transition to a market economy, the most important indicator of production and economic activity is the production cost, as this figure needs:

· To determine the profitability of production and certain types of products;

· To determine the wholesale prices of the products;

· For the calculation of national income at the national level;

· To calculate the cost-effectiveness of introducing new equipment and production technology;

· To inform decisions about the production of new products and the discontinuation of the legacy.

And in the end, this figure has a direct impact on the turnover and profitability of production, ie, the efficiency of the whole production.

Therefore, in this paper I want to examine turnover ratios and profitability of production.

Before you get started, you need to give the concept of basic terms and definitions.

Gross sales (gross income) - is the value of products shipped and the work performed, including taxes and other payments.

Revenues from sales - a gross volume of sales, net of indirect taxes and duties included in the sale price of goods (Form ¹2, line 010) [2]. Net from the sale proceeds referred to otherwise implement or net income.

Gross (book) profit - the difference between the sales proceeds and the cost of sales, including administrative and selling expenses (ie F2.050)

Net income - the difference between gross profit and income tax (ie F2.050 - F2.150).

I. Brief description of the company

Trading company "Cherry" [3] was established as a closed joint stock company in 1995. This firm has a certificate and is listed in the State Register of the Russian Federation. The authorized capital at the time of education was 1,045 thousand. Rubles.

The main activity of JSC "Cherry" is to trade and intermediary services to the public. In addition, the "Cherry" has regular customers who buy products in bulk.

The average number of employees of the firm for the last three years ranged between 60 - 70 people.

II. Turnover

Turnover ratios indicate the number of times per year (or during the study period), "turn those or other assets [4] of the enterprise. The inverse value multiplied by 360 days (number of days or in the analyzed period) indicates the length of one turn of the assets.

Turnover ratios are of great importance to assess the financial situation of the company, since the rate of turning them into money, has a direct impact on the solvency of the company. As well as an increase in the rate of turnover means there is increasing production and technical potential of the company (ceteris paribus).

In practice, it is interesting answer to the question, how often the entire amount of capital advanced in the company, compared with a total turnover of sales.

Turnover of current assets, except for relative performance, characteristic and appropriation of natural values. They can measure speed over a certain period of time or duration of one revolution.

The most common is the asset turnover ratio.

 K asset turnover =

 Revenue from the sale;

 The average annual value of assets

where: Proceeds from sale = F2.010

The average annual value of assets = (end + Aktivyna Aktivyna beginning) / 2Aktivy = Current assets Non-current assets + =

= (F1.290 - F1.217 - F1.230) + (F1.190 + F1.230)

The ratio of revenue from sales of the average annual value of assets characterizes the efficiency of enterprise resources, regardless of their source.

When comparing the asset turnover ratio of different organizations for different years should check the uniformity of grade average total assets. As it is necessary to correct for the method of estimating depreciation, since ceteris paribus asset turnover ratio is higher in accelerated depreciation on fixed assets.

Similarly, a turnover ratio of equity capital.

 K turnover

 own

 capital = Proceeds from sale;

 The average annual cost of equity

where:

Shareholders' equity =

= (F1.699 - F1.217 - (F1.590 + F1.690 - F1.630 - F1.640 - F1.650 - F1.660)

Turnover ratio of equity capital from a financial point of view determines the rate of turnover of equity capital, the economic - activity funds, where the risk of the shareholder.

If the ratio is too high, which means a significant excess of sales over the invested capital, this entails an increase in credit. In this case, it may be a situation where lenders are more involved in business than owners.

In contrast, a low coefficient means the omission of the own funds. In this case, the coefficient indicates the need for an equity investment in other sources of income.

You should also pay attention to the fact that an increase in turnover increases the possibility of exceeding the critical value of the ratio of debt and equity with no significant change in the financial autonomy of enterprises.

The next indicator - turnover ratio of invested capital.

 K turnover

 invested

 capital = Proceeds from sale;

 The average annual cost +

 equity

 The average annual cost

 long-term liabilities

where: Long-term liabilities = F1.590

This indicator shows the rate of turnover of all long-term (invested) capital of the enterprise.

This unit also includes a performance index of turnover means of production.

 K turnover

 real

 production = Proceeds from sale;

 The average annual cost of real assets

Where: Real Assets = F1.120 + F1.130 + F1.211 + F1.213 + F1.214

Combines these figures that in their denominators involved as current and non-current assets and fixed assets. Since fixed assets during the reporting period is not completely converted into cash (often involved in the cycle of product sales), then these indicators rely unduly duration of one turnover in days. When calculating the turnover rates should be kept in mind that we are talking about the degree of the load or the amount of money received as a result of falling on one ruble of capital employed.

 K turnover

 = fixed assets Proceeds from sale;

 The average annual cost of non-current assets

where: Non-current assets (real estate) = F1.190 + F1.230

Fixed assets turnover ratio characterizes turnover immobilized funds. Its value depends on the industry and its capital intensity. However, the general laws are such that the higher the ratio, the lower the costs of the reporting year.

Turnover ratio of current assets is calculated as follows:

 K turnover

 = current assets Proceeds from sale;

 The average annual cost of current assets

where:

Current assets = F1.290 - F1.217 - F1.230

The duration of one turnover in days will be calculated as follows:

 The duration of P

 turnover = 360;

 By asset turnover

Dynamics of indicators of turnover of working capital

Table 2.1. "The dynamics of the turnover for 1996 - 1997 years."

 Number p / n Indicator

 Base year

 Fiscal year

 Deviation (+;-)

 1.

 Revenue from sale of goods

 F2.010 in th. Rubles. 4854459 8349357 +3494898

 2. The average annual value of current assets, in thousands. Rub. 102686 270520 167834

 3. Turnover of current assets (1 / line 2), times 47.2748 30.8641 -16.4107

 4. Duration of turnover of current assets (360 / page 3) days 7.6 11.7 4.1

Table 2.2. "The dynamics of the turnover for 1997 - 1998 years." [5]

 Number p / n Indicator

 Base year

 Fiscal year

 Deviation (+;-)

 1.

 Revenue from sale of goods

 F2.010 in rubles. 8349357 9856494 +1507137

 2. The average annual value of current assets in rubles. 270520 335805 65285

 3. Turnover of current assets (1 / line 2), times 30.8641 29.3518 -1.5123

 4. Duration of turnover of current assets (360 / page 3) 11.7 12.3 0.6 days

Table 2.3. "The dynamics of the turnover for 1996 - 1998 years. (General) "[6]

 Number p / n Indicator

 Base year

 Fiscal year

 Deviation (+;-)

 1.

 Revenue from sale of goods

 F2.010 in rubles. 4854459 9856494 +5002035

 2. The average annual value of current assets in rubles. 102686 335805 233119

 3. Turnover of current assets (1 / line 2), times 47.2748 29.3518 -17.923

 4. Duration of turnover of current assets (360 / page 3) days 7.6 12.3 4.7

The data in Tables 2.1; 2.2; 2.3 show that the financial condition of the enterprise as a whole deteriorated. Consider Table 2.3 (ie, the dynamics of turnover in three years). Table 2.3 shows that the proceeds from the sale of goods and the average value of current assets in 1998 compared with 1996 increased by 5,002,035 and 233,119 thousand. Rubles, respectively; Despite this turnover of current assets decreased by 17.923 times, ie to decreased ?37,9%, this increased duration of one turnover - 4.7 days, which resulted in a cash outflow. To maintain normal trading activities (at least at the level of 1996), the company was forced to raise additional funds, which are calculated by the following formula:

Attracted by the Revenue Reporting Base

funds from the sale of x = period - the period

360 in turnover turnover turnover

ie the value of additional borrowed funds was as follows:

9,856,494: 360 x 2 x (12,3 - 7,6) = 128,682

Rate of turnover of inventory. In general, the higher the inventory turnover, the less money due to this the least liquid article and more stable financial position of the firm. Especially true increase in turnover and a decrease in stocks in the presence of a large debt in the enterprise.

As inventories are stated at acquisition cost, in order to calculate inventory turnover ratio is not used proceeds from the sale and cost of sales.

 K turnover

 inventory = Cost of goods sold;

 The average annual cost of inventory

Where: Cost of goods sold = F2.020

The cost of inventories = F1.210 - F1.216 - F1.217 + F1.220

This index can be expressed in days. The amount of days, during which pays the bills and implemented inventories, characterizes the cycle during which inventories are converted into cash. Accelerating the turnover achieved by reducing the time of production and circulation, has a positive effect on the performance of the enterprise.

Different industries have different turnover, so it is advisable to compare with the industry average.

Assessment of the state of turnover

inventory

Table 2.4. "Assessment of inventory turnover for 1996 - 1997 years."

 Number p / p

 Indicator

 Value of the index

 Deviation (+;-)

 For the base year

 During the reporting year

 1. Average annual inventories, in rubles. 67688 91031 23343

 of them:

 - Inventories 9964 4889 -5075

 - Finished Products 57724 86142 28418

 2. Cost of sales (F2.020) in rubles. 4218794 7387928 +3169134

 3. The turnover of inventories (p.2 / p.1) 62.3271 81.1584 18.8313

 of them:

 - Inventories 423.4037 1511.1327 1087.729

 - Finished Products 73.0856 85.7645 12.6789

 4. Shelf life reserves, days (360 / page 3) 5.8 4.4 -1.4

 of them:

 - Inventories 0.9 0.2 -0.7

 - Finished products 4.9 4.2 -0.7

Table 2.5. "Assessment of inventory turnover for 1997 - 1998 years." [7]

 Number p / p

 Indicator

 Value of the index

 Deviation (+;-)

 For the base year

 During the reporting year

 1. Average annual inventories, in rubles. 91031 141874 50843

 of them:

 - Inventories 4889 31648 26759

 - Finished Products 86142 110226 24084

 2. Cost of sales (F2.020) in rubles. 7387928 8667062 +1279134

 3. The turnover of inventories (p.2 / p.1) 81.1584 61.0899 -20.0685

 Among them:

 - Inventories 1511.1327 273.8581 -1,237.2746

 - Finished Products 85.7645 78.6299 -7.1346

 4. Shelf life reserves, days (360 / p.3) 4.4 5.9 1.5

 Among them:

 - Inventories 0.2 1.3 1.1

 - Finished Products 4.2 4.6 0.4

Table 2.6. "Assessment of inventory turnover for 1996 - 1998 years. (General) "[8]

 Number p / p

 Indicator

 Value of the index

 Deviation (+;-)

 For the base year

 During the reporting year

 1. Average annual inventories, in rubles. 67688 141874 74186

 Among them:

 - Inventories 9964 31648 21684

 - Finished Products 57724 110226 52502

 2. Cost of sales (F2.020) in rubles. 4218794 8667062 +4448268

 3. The turnover of inventories (p.2 / p.1) 62.3271 61.0899 -1.2372

 Among them:

 - Inventories 423.4037 273.8581 -149.5456

 - Finished Products 73.0856 78.6299 5.5443

 4. Shelf life reserves, days (360 / p.3) 5.8 5.9 0.1

 Among them:

 - Inventories 0.9 1.3 0.4

 - Finished products 4.9 4.6 -0.3

Thus, analyzing the data tables 2.4; 2.5; 2.6, we can see an increase in financial stability of the company in 1997 as compared to 1996. This is due to the growth of turnover of inventories from 62.327 to 81.158 (30.2%), as well as decrease the shelf life of reserves (from 5.8 to 4.4 days). Especially strongly increased turnover of inventory (257%), indicating that the most effective use of these funds in the company's main activity. The growth of turnover of finished products (17%), which indicates a good job marketing business units, resulting in a good implementation.

Less stable position of the company there in 1998, which was caused by a slowdown in inventory turnover by 24.7% compared to 1997 and increase the shelf life of 1.5 days. As a result, 1998 figures have become worse than similar indicators for 1996 should be noted that this situation is caused by the financial crisis that erupted in the summer - autumn 1998, followed by inflation and instability of the economy.

The fall of the purchasing power of money has forced the company to temporarily invest surplus funds in stocks of materials, which are then, if necessary, can be easily implemented. Therefore, the "freezing" of a certain part of the funds in stocks although reduced the effectiveness of the use of property, but to some extent saved the organization from inflation.

The final stage of the analysis of current assets turnover is to assess compliance with the conditions for obtaining and submitting loan. The activities of any company associated with the acquisition of materials, products, consumption of various kinds of services. In the event that payment for goods or services effected on the subsequent payment, we can talk now about getting a loan from its suppliers and contractors. At the same time, the enterprise itself is a creditor of its buyers and customers, in terms of advances granted to them under the upcoming delivery of products. Therefore, how the respective term of the loan provided by the company to the general conditions of its financial and operating performance depends on the financial health of the company.

It is of interest and accounts receivable turnover ratio.

 K receivables turnover

 debt

 on accounts receivable = Proceeds from sale;

 The average annual greatness of balances of accounts receivable

where:

Velichinasaldo on accounts receivable = F1.231 + F1.232 + F1.233 + F1.234 + F1.235 +

+ F1.241 + F1.242 + F1.243 + F1.245 + F1.246

In this way:

The average annual velichinasaldo on accounts receivable (1996) = (20069 + 17914) / 2 =

= 18991.5 (RUB).

The average annual velichinasaldo on accounts receivable (1997) = (17914 + 276 150) / 2 =

= 147,032 (rubles).

The average annual velichinasaldo on accounts receivable (1998) = (276,150 + 123,399) / 2 =

= 199774.5 (rubles).

 K (1996) accounts receivable turnover on accounts receivable = 4854459 = 255.61 times

 18991.5

 K (1997) accounts receivable turnover on accounts receivable = 8,349,357 = 56.79 times

 147032

 K (1998) accounts receivable turnover on accounts receivable = 9,856,494 = 49.34 times

 199774.5

The duration of the period required for the enterprise debts for goods sold (this figure is called term trade credit [9]), is determined by: 360 days divided into turnover ratio of accounts receivable to accounts receivable:

 Term trade credit = 360

 K turnover accounts receivable accounts receivable

And So,

Sroktovarnogo credit (1996) = 360 / 255.61 = 1.4 days

Sroktovarnogo credit (1997) = 360 / 56.79 = 6.3 days

Sroktovarnogo credit (1998) = 360 / 49.34 = 7.3 days

The analysis should pay attention to the amount of doubtful receivables. The growth of this index shows a decline in liquidity.

In order to manage the process of change in accounts receivable, you must:

- Monitor the status of settlements with buyers deferred debts;

- Focus on the increasing number of customers in order to reduce the risk of non-payment of one or more customers;

- Monitor the ratio of receivables and payables;

- To use a method of providing discounts for early payment.

In terms of inflation every payment delay leads to the fact that the company-producer really gets only a fraction of the cost of goods sold. Therefore there is a need to assess the possibility of discounts for early payment.

The fall of the purchasing power of money is characterized by a coefficient Ki, the reciprocal of the price index.

Ci = 1 / Its

If you installed the contract amount due is the amount of S, and the price dynamics is characterized Its index, the actual amount of money (Sp) with regard to their view of their purchasing power at the time of payment will be Sp = S x 1 / Its.

To assess changes in the purchasing power of money over the period of repayment of receivables are encouraged to use the formula of compound interest:

1n

KU = ---;

1 + TU / 30

where:

KU- ratio falling purchasing power of money;

TU- amplification rate of inflation for the month;

n - number of days in the period of adoption.

Almost formula of compound interest - is the discount factor. The higher the repayment period of receivables, or the growth rate of inflation, the higher the value of the denominator in the proposed formula and the coefficient of loss of purchasing power will be underestimated.

For more accurate results, this formula should be transformed:

January 1

KU = --- x ---;

(Its) k (I + TU / 30) ?t

where:

k - the number is a multiple of 30 (thirty)

?t - time remnant

The essence of this formula is that you first determine the coefficient of loss of purchasing power at the end of a full month, then this value is adjusted for changes in purchasing power over the period of temporary balance.

The settlement begins with the definition of multiplicity index value of the time period and the remainder:

Tn?t

--- = K + ---;

30 30

where:

Tn- duration of

Summary tables of figures

asset turnover

Table 2.7. "Summary Table for 1996 - 1997 years."

 Indicator

 Change the value of the index

 Base year

 fiscal year

 Turnover, times:

 assets (return on capital) 17.746 17.695 -0.051

 equity 31.249 50.815 19.566

 invested capital 31.249 50.815 19.566

 the means of production (real) 27.205 41.443 14.238

 fixed assets (return on assets) 28.411 41.469 13.058

 current assets 47.2748 30.8641 -16.4107

 current assets, in days 7.6 11.7 4.1

 Inventories 62.3271 81.1584 18.8313

 MSY [10], in days 5.8 4.4 -1.4

 receivables 255.61 56.79 -198.82

 receivables in days 1.4 6.3 4.9

Table 2.8. "Summary Table for 1997 - 1998 years." [11]

 Indicator

 Change the value of the index

 Base year

 Fiscal year

 Turnover, times:

 assets (return on capital) 17.695 16.311 -1.384

 equity 50.815 38.303 -12.512

 Invested capital 50.815 38.303 -12.512

 capital goods 41.443 37.663 -3.780

 fixed assets (return on assets) 41.469 39.287 -2.182

 current assets 30.8641 29.3518 -1.5123

 current assets, in days 11.7 12.3 0.6

 Inventories 81.1584 61.0899 -20.0685

 MSY [12], in days 4.4 5.9 1.5

 receivables 56.79 49.34 -7.45

 receivables in days 6.3 7.3 1

Table 2.9. "Summary Table for 1996 - 1998 years." [13]

 Indicator

 Change the value of the index

 Base year

 Fiscal year

 Turnover, times:

 assets (return on capital) 17.746 16.311 -1.435

 equity 31.249 38.303 7.054

 invested capital 31.249 38.303 7.054

 capital goods 27.205 37.663 10.458

 fixed assets (return on assets) 28.411 39.287 10.876

 current assets 47.2748 29.3518 -17.923

 current assets, in days 7.6 12.3 4.7

 Inventories 62.3271 61.0899 -1.2372

 MSY [14], in days 5.8 5.9 0.1

 receivables 255.61 49.34 -206.27

 receivables in days 1.4 7.3 5.9

Histogram 2.1. "Asset Turnover for 1996 - 1998 years."

Section Summary "Turnover"

According to Tables 2.7 - 2.9 can be observed the highest rates of turnover mainly in 1997, for example, this year was the maximum for the period turnover ratios equity and invested capital [15] (50.815 vs. 31.249 in 1996 and 38.303 in 1998), the means of production (41.443 as opposed to 27.205 in 1996 and 37.663 in 1998), fixed assets (41.469, 28.411 - 39.287 and in 1996 - 1998), as well as the turnover of inventories (81.1584, 62.3271 and 61.0899, respectively). Indicating a more effective functioning of the enterprise in 1997

However, the rate of current assets turnover was the most optimal in 1996 it amounted .: 1996 47.2748 times, and by 1998 was down 37.9% to 29.3518 times, and asset turnover in three years almost changed, if only decreased from 1996 to 1998 by 8%, all this suggests a slowing of circulation assets as a whole, as well as current assets.

In 1998, compared to 1996, all indicators of turnover (excluding current assets and inventories) increased due to the success of planned development of the company, which indicates that the economic growth. A similar reduction in performance in 1998 compared to 1997 due to the instability of economic processes in the state and activity of the enterprise is independent.

III. Profitability

Profitability characterizes the effectiveness of the company. The profitability of the enterprise to determine the profits it receives. Profitability indicators reflect how efficiently the company uses its funds in order to make a profit.

Figure 3.1. "A model of the profitability of the company"

In the circuit of Fig. 3.1 shows a model of the profitability of the firm.

There are two groups of profitability ratios: return on equity and return on sales.

3.1. Return on equity.

When calculating the coefficients used balance and net profit. The profitability of all assets on the balance sheet profit shows how much currency gains now obtained from a unit value of assets regardless of funding sources.

 Return on assets on the balance sheet profit = balance sheet profit (net profit);

 The average annual value of assets

where:

Balance profit = F2.050

Net profit = F2.050 - F2.150

The average annual value of assets = (end + Aktivyna Aktivyna start) / 2

Assets = Current assets Non-current assets + =

= (F1.290 - F1.217 - F1.230) + (F1.190 + F1.230)

Similarly, the return on assets is calculated on net profit.

For companies operating on a joint-stock companies, the main indicator of assessing the profitability of invested capital is considered to be a percentage of the net profits of the enterprise to equity. This indicator, called the coefficient of return on equity plays an important role in assessing the level of share prices of public companies on the stock exchange.

 Return on

 Capital = balance sheet profit;

 The average annual cost of equity

where:

Shareholders' equity =

= (F1.699 - F1.217 - (F1.590 + F1.690 - F1.630 - F1.640 - F1.650 - F1.660)

The difference between the return on all assets and equity due to the involvement of external sources of financing now. If the borrowed funds are more profitable than the payment of interest on the borrowed capital, the difference can be used to improve the return on equity. However, if the return on assets is less than the interest paid on borrowed funds, the impact of funds raised on the activities of the company should be evaluated negatively.

Also, it may be calculated ROI:

 Profitability

 Income on investments = TS.B. [16] + Income from equity in the joint venture;

 The average annual cost of long-term and short-term investments

This figure shows how effectively the company conducts investment activities.

3.2. Profitability ratios of sales.

The most common indicator is the overall profitability or rate of return of all activities on the balance sheet profit:

 K balance profit margin = balance sheet profit;

 Revenues Revenues from other

 from product sales + implementation and extra-

 realizable

 operations

where:

Revenue from product sales = F2.010

Other revenues and non-operating =

= F2.060 + F2.080 + F2.090 + F2.120

This figure shows how effectively and profitably, the company operates.

Similarly calculated ratio of net profit margin. "Thanks to" tax the value lower than the previous figure. The difference between them is called the profit tax.

In addition, the calculated rate of return main activity (rate of return):

 K profitability of its operations = Result from sale;

 Proceeds from sales

where:

Result from the sale of balance sheet profit = = F2.050

3.3. Evaluation of efficiency of production.

Evaluating the effectiveness of the production is carried out based on the analysis of several more groups of indicators:

u Performance in trade;

u profit per employee;

u capital-.

Labour productivity is defined as gross income per employee:

 Performance in trade = Proceeds from sale;

 The average headcount

where:

The average number of staff = 65

Profit per employee is defined as the quotient of net income by the number of employees:

 Profit per employee = Net profit;

 The average headcount

where: Average number of staff = 65

Net profit = F2.050 - F2.150

Shows capital-technical equipment, personnel of the enterprise. Is defined as the average value of real estate per one worker:

 = Capital-average value of real estate;

 The average headcount

where: Average number of personnel = 65 real estate value = F1.190 + F1.230

Low capital-lag can mean the company in the use of advanced technologies, based on the introduction of new technology that may eventually lead to loss of competitiveness.

Summary tables of profitability

Table 3.1. "Trends for 1996 - 1997 years."

 Indicator

 Value of the index

 Change

 Growth rate,%

 Base year

 Fiscal year

 Return on assets (cents on the ruble invested [17])

 Assets:

 - On the balance sheet profit 42.73 26.59 62.23 -16.14

 - Net profit 30.92 17.31 55.98 -13.61

 Equity:

 - On the balance sheet profit 75.24 76.37 1.13 101.50

 - Net income 54.51 49.73 -4.78 91.23

 Investments - - - -

 Return on sales

 Total (for all activities):

 - On the balance sheet profit 2.40 1.50 -0.90 62.50

 - Net income 1.74 0.98 -0.76 56.32

 By operating activities:

 - On the balance sheet profit 2.41 1.50 -0.91 62.24

 - Net income 1.74 0.98 -0.76 56.32

 Evaluating the effectiveness of production

 Performance in the trade, thousand. P. 53767.7 74,683.99 128,451.65 171.99

 Profit per employee, thousand. P. 1301.14 1257.14 -44 96.62

 Capital-, th. P. 2628.66 3097.51 468.85 117.84

The data in Table 3.1 suggest the following conclusions:

? In the whole enterprise is evident deterioration in the use of its assets, as current and non-current. With each ruble funds invested in assets in 1997, the company received a profit less than in 1996, ie on the balance sheet profit decline was 16.14 cents, and net profit - 13.61 kopeks (decrease occurred at 37.77% and 44.02%, respectively).

? In equity there is a bit of a different situation, namely, return on equity on the balance sheet profit increased by 1.13 cents (^ 1.5%), and net income decreased by 4.78 cents (v 8.77% ).

? also decreased profitability of sales, but much slower, and the profitability of "general" and "operating activities" have not changed since Other revenues and selling operations are very small.

Table 3.2. "Trends for 1997 - 1998 years." [18]

 Indicator

 Value of the index

 Change

 Growth rate,%

 Base year

 Fiscal year

 Return on assets (cents on the invested ruble)

 Assets:

 - On the balance sheet profit 26.59 19.95 75.03 -6.64

 - Net income 17.31 13.55 -3.76 78.28

 Equity:

 - On the balance sheet profit 76.37 48.39 63.36 -27.98

 - Net profit 49.73 32.87 66.10 -16.86

 Investments - - - -

 Return on sales

 Total (for all activities):

 - On the balance sheet profit 1.50 1.26 -0.24 84.00

 - Net income 0.98 0.86 -0.12 87.76

 By operating activities:

 - On the balance sheet profit 1.50 1.26 -0.24 84.00

 - Net income 0.98 0.86 -0.12 87.76

 Evaluating the effectiveness of production

 Performance in the trade, rub. 128451.65 151638.37 +23186.7 118.05

 Profit per employee, rub. 1257.14 1301.46 +44.32 103.53

 Capital-, rub. 3097.51 3859.76 762.25 124.61

What can be said about the period from 1997 - 1998's.?

Also, the whole enterprise has worsened in the use of his property, but the return on assets on the balance sheet profit and net profit has deteriorated less than the return on equity:

· Assets - a decrease of 6.64 and 3.76 cents on ruble invested (v to 24.97% and 21.72%);

· Equity - a decline of 27.98 and 16.86 cents (v to 36.64% and 33.9%)

Decrease in return on sales is also not much like zaproshlye years.

Table 3.3. "Trends for 1996 - 1998 years." [19]

 Indicator

 Value of the index

 Change

 Growth rate,%

 Base year

 Fiscal year

 Return on assets (cents on the invested ruble)

 Assets:

 - On the balance sheet profit 42.73 19.95 46.69 -22.78

 - Net profit 30.92 13.55 43.82 -17.37

 Equity:

 - On the balance sheet profit 75.24 48.39 64.31 -26.85

 - Net profit 54.51 32.87 60.30 -21.64

 Investments - - - -

 Return on sales

 Total (for all activities):

 - On the balance sheet profit 2.40 1.26 -1.14 52.50

 - Net income 1.74 0.86 -0.88 49.43

 By operating activities:

 - On the balance sheet profit 2.41 1.26 -1.15 52.28

 - Net income 1.74 0.86 -0.88 49.43

 Evaluating the effectiveness of trade

 Performance in the trade, rub. 76954.4 74,683.99 151,638.37 203.04

 Profit per employee, rub. 1301.14 1301.46 +0.32 100.02

 Capital-, rub. 2628.66 3859.76 1231.10 146.83

Figure 3.1. "The growth rate of trade efficiency"

Section Summary

"Profitability of production"

From Table 3.3 for the periods from 1996 to 1998 can be seen a significant deterioration in the organization of the use of property JSC "Cherry", is characterized by a decrease in return on assets:

· On the balance sheet profit - a decrease of 22.78 cents (v to 53.31%);

· Net profit - a decrease of 17.32 kopeks (v to 56.18%),

decrease in return on equity:

· On the balance sheet profit - a decrease of 26.85 cents (v to 35.69%);

· Net profit - a decrease of 21.64 kopeks (v 39.7%).

A decrease in the profitability of sales of both general and primary activity, although this reduction is not particularly influential.

Evaluating the effectiveness of trade.

Significantly noticeable performance trade for 1996 - 1998, she rose to 76 954.4 rubles per person (^ to 103.4%).

Profit per employee has increased but not much, just for 32 kopecks (^ 0.02%)

Capital-increased by 1231.10 rubles (^ to 46.83%) - this means that the company is gradually introducing new technology, although they need to enter a little faster pace, as science and technology does not stand still.

Figure 3.1 can be seen on the chart the growth rate of trade efficiency per person.

ANNEX

REFERENCES

1. Adam VE, Ilyenkov D. et al., "Economics and Statistics companies" // Moscow "Finance and Statistics", 1996

2. Belyaevsky IK, Bashina OE "business statistics" // Moscow "Finstatinform" 1996

3. Efimova OV "How to analyze the financial position of the company" // Edition II, Moscow 1994

4. Efimova OV "Financial Analysis" // Moscow "Accounting" 1996

5. Kovalev AI, Privalov, VP "Analysis of the financial condition of the company" // Edition II, Moscow "Center for Economics and Marketing" 1996

Report

I. Brief description of the company

Trading company "Cherry" [20] was established as a closed joint stock company in 1995. This firm has a certificate and is listed in the State Register of the Russian Federation. The authorized capital at the time of education was 1,045 thousand. Rubles.

The main activity of JSC "Cherry" is to trade and intermediary services to the public. In addition, the "Cherry" has regular customers who buy products in bulk.

The average number of employees of the firm for the last three years ranged between 60 - 70 people.

II. Turnover

Dynamics of indicators of turnover of working capital

Table 2.1. "The dynamics of the turnover for 1996 - 1997 years."

 Number p / n Indicator

 Base year

 Fiscal year

 Deviation (+;-)

 1.

 Revenue from sale of goods

 F2.010 in th. Rubles. 4854459 8349357 +3494898

 2. The average annual value of current assets, in thousands. Rub. 102686 270520 167834

 3. Turnover of current assets (1 / line 2), times 47.2748 30.8641 -16.4107

 4. Duration of turnover of current assets (360 / page 3) days 7.6 11.7 4.1

Table 2.2. "The dynamics of the turnover for 1997 - 1998 years." [21]

 Number p / n Indicator

 Base year

 Fiscal year

 Deviation (+;-)

 1.

 Revenue from sale of goods

 F2.010 in rubles. 8349357 9856494 +1507137

 2. The average annual value of current assets in rubles. 270520 335805 65285

 3. Turnover of current assets (1 / line 2), times 30.8641 29.3518 -1.5123

 4. Duration of turnover of current assets (360 / page 3) 11.7 12.3 0.6 days

Table 2.3. "The dynamics of the turnover for 1996 - 1998 years. (General) "[22]

 Number p / n Indicator

 Base year

 Fiscal year

 Deviation (+;-)

 1.

 Revenue from sale of goods

 F2.010 in rubles. 4854459 9856494 +5002035

 2. The average annual value of current assets in rubles. 102686 335805 233119

 3. Turnover of current assets (1 / line 2), times 47.2748 29.3518 -17.923

 4. Duration of turnover of current assets (360 / page 3) days 7.6 12.3 4.7

The data in Tables 2.1; 2.2; 2.3 show that the financial condition of the enterprise as a whole deteriorated. Consider Table 2.3 (ie, the dynamics of turnover in three years). Table 2.3 shows that the proceeds from the sale of goods and the average value of current assets in 1998 compared with 1996 increased by 5,002,035 and 233,119 thousand. Rubles, respectively; Despite this turnover of current assets decreased by 17.923 times, ie to decreased ?37,9%, this increased duration of one turnover - 4.7 days, which resulted in a cash outflow. To maintain normal trading activities (at least at the level of 1996), the company was forced to raise additional funds, the value of which was as follows:

9856494: 360 x (12,3 - 7,6) = 128,682 rubles

Assessment of the state of turnover

inventory

Table 2.4. "Assessment of inventory turnover for 1996 - 1997 years."

 Number p / p

 Indicator

 Value of the index

 Deviation (+;-)

 For the base year

 During the reporting year

 1. Average annual inventories, in rubles. 67688 91031 23343

 of them:

 - Inventories 9964 4889 -5075

 - Finished Products 57724 86142 28418

 2. Cost of sales (F2.020) in rubles. 4218794 7387928 +3169134

 3. The turnover of inventories (p.2 / p.1) 62.3271 81.1584 18.8313

 of them:

 - Inventories 423.4037 1511.1327 1087.729

 - Finished Products 73.0856 85.7645 12.6789

 4. Shelf life reserves, days (360 / page 3) 5.8 4.4 -1.4

 of them:

 - Inventories 0.9 0.2 -0.7

 - Finished products 4.9 4.2 -0.7

Table 2.5. "Assessment of inventory turnover for 1997 - 1998 years." [23]

 Number p / p

 Indicator

 Value of the index

 Deviation (+;-)

 For the base year

 During the reporting year

 1. Average annual inventories, in rubles. 91031 141874 50843

 of them:

 - Inventories 4889 31648 26759

 - Finished Products 86142 110226 24084

 2. Cost of sales (F2.020) in rubles. 7387928 8667062 +1279134

 3. The turnover of inventories (p.2 / p.1) 81.1584 61.0899 -20.0685

 Among them:

 - Inventories 1511.1327 273.8581 -1,237.2746

 - Finished Products 85.7645 78.6299 -7.1346

 4. Shelf life reserves, days (360 / p.3) 4.4 5.9 1.5

 Among them:

 - Inventories 0.2 1.3 1.1

 - Finished Products 4.2 4.6 0.4

Table 2.6. "Assessment of inventory turnover for 1996 - 1998 years. (General) "[24]

 Number p / p

 Indicator

 Value of the index

 Deviation (+;-)

 For the base year

 During the reporting year

 1. Average annual inventories, in rubles. 67688 141874 74186

 Among them:

 - Inventories 9964 31648 21684

 - Finished Products 57724 110226 52502

 2. Cost of sales (F2.020) in rubles. 4218794 8667062 +4448268

 3. The turnover of inventories (p.2 / p.1) 62.3271 61.0899 -1.2372

 Among them:

 - Inventories 423.4037 273.8581 -149.5456

 - Finished Products 73.0856 78.6299 5.5443

 4. Shelf life reserves, days (360 / p.3) 5.8 5.9 0.1

 Among them:

 - Inventories 0.9 1.3 0.4

 - Finished products 4.9 4.6 -0.3

Thus, analyzing the data tables 2.4; 2.5; 2.6, we can see an increase in the financial sustainability of the enterprise in 1997 compared to 1996. This is due to the growth of turnover of inventories from 62.327 to 81.158 (30.2%), as well as decrease the shelf life of reserves (from 5.8 to 4.4 days). Especially strongly increased turnover of inventory (257%), indicating that the most effective use of these funds in the company's main activity. The growth of turnover of finished products (17%), which indicates a good job marketing business units, resulting in a good implementation.

Less stable position of the company there in 1998, which was caused by a slowdown in inventory turnover by 24.7% compared to 1997 and increase the shelf life of 1.5 days. As a result, 1998 figures have become worse than similar indicators for 1996 should be noted that this situation is caused by the financial crisis that erupted in the summer - autumn 1998, followed by inflation and instability of the economy.

The fall of the purchasing power of money has forced the company to temporarily invest surplus funds in stocks of materials, which are then, if necessary, can be easily implemented. Therefore, the "freezing" of a certain part of the funds in stocks although reduced the effectiveness of the use of property, but to some extent saved the organization from inflation.

Summary table of indicators

asset turnover

Table 2.7. "Summary Table for 1996 - 1997 years."

 Indicator

 Change the value of the index

 Base year

 fiscal year

 Turnover, times:

 assets (return on capital) 17.746 17.695 -0.051

 equity 31.249 50.815 19.566

 invested capital 31.249 50.815 19.566

 the means of production (real) 27.205 41.443 14.238

 fixed assets (return on assets) 28.411 41.469 13.058

 current assets 47.2748 30.8641 -16.4107

 current assets, in days 7.6 11.7 4.1

 Inventories 62.3271 81.1584 18.8313

 MSY [25], in days 5.8 4.4 -1.4

 receivables 255.61 56.79 -198.82

 receivables in days 1.4 6.3 4.9

Table 2.8. "Summary Table for 1997 - 1998 years." [26]

 Indicator

 Change the value of the index

 Base year

 Fiscal year

 Turnover, times:

 assets (return on capital) 17.695 16.311 -1.384

 equity 50.815 38.303 -12.512

 Invested capital 50.815 38.303 -12.512

 capital goods 41.443 37.663 -3.780

 fixed assets (return on assets) 41.469 39.287 -2.182

 current assets 30.8641 29.3518 -1.5123

 current assets, in days 11.7 12.3 0.6

 Inventories 81.1584 61.0899 -20.0685

 MSY [27], in days 4.4 5.9 1.5

 receivables 56.79 49.34 -7.45

 receivables in days 6.3 7.3 1

Table 2.9. "Summary Table for 1996 - 1998 years." [28]

 Indicator

 Change the value of the index

 Base year

 Fiscal year

 Turnover, times:

 assets (return on capital) 17.746 16.311 -1.435

 equity 31.249 38.303 7.054

 invested capital 31.249 38.303 7.054

 capital goods 27.205 37.663 10.458

 fixed assets (return on assets) 28.411 39.287 10.876

 current assets 47.2748 29.3518 -17.923

 current assets, in days 7.6 12.3 4.7

 Inventories 62.3271 61.0899 -1.2372

 MSY [29], in days 5.8 5.9 0.1

 receivables 255.61 49.34 -206.27

 receivables in days 1.4 7.3 5.9

Histogram 2.1. "Asset Turnover for 1996 - 1998 years."

Section Summary "Turnover"

According to Tables 2.7 - 2.9 can be observed the highest rates of turnover mainly in 1997, for example, this year was the maximum for the period turnover ratios equity and invested capital [30] (50.815 vs. 31.249 in 1996 and 38.303 in 1998), the means of production (41.443 as opposed to 27.205 in 1996 and 37.663 in 1998), fixed assets (41.469, 28.411 - 39.287 and in 1996 - 1998), as well as the turnover of inventories (81.1584, 62.3271 and 61.0899, respectively). Indicating a more effective functioning of the enterprise in 1997

However, the rate of current assets turnover was the most optimal in 1996 it amounted .: 1996 47.2748 times, and by 1998 was down 37.9% to 29.3518 times, and asset turnover in three years almost changed, if only decreased from 1996 to 1998 by 8%, all this suggests a slowing of circulation assets as a whole, as well as current assets.

In 1998, compared to 1996, all indicators of turnover (excluding current assets and inventories) increased due to the success of planned development of the company, which indicates that the economic growth. A similar reduction in performance in 1998 compared to 1997 due to the instability of economic processes in the state and activity of the enterprise is independent.

[1] The application includes: "Balance Sheet" (Form ¹1) for 1996 - 1998. and "Profit and Loss" (Form ¹2) for 1996 - 1998.

[2] It will be written in abbreviated form, for example (Form ¹2, line 010 = F2.010).

[3] In connection with the observance of commercial secrets of the company name and attributes have been changed.

[4] Part of the balance sheet reflects the tangible and intangible assets of the enterprise.

[5] The dynamics of the turnover for 1997 - 1998. considered in constant prices (ie denominated)

[6] The dynamics of the turnover for 1996 - 1998. considered in constant prices (ie denominated)

[7] Assessment of inventory turnover for 1997 - 1998. is given in comparable prices

[8] Evaluation of inventory turnover for 1996 - 1998. is given in comparable prices

[9] i.e. repayment period of receivables

[10] inventories - inventories

[11] The summary table for 1997 - 1998 is presented in ruble-denominated

[12] inventories - inventories

[13] The summary table for 1996 - 1998 is presented in ruble-denominated

[14] inventories - inventories

[15] Turnover equity and invested capital are equal, since the company has no long-term commitments.

[16] TS.B. - Securities

[17] The results are multiplied by 100 cents to get "kopecks per ruble invested

[18] The data in Table comparable (ie denominated prices)

[19] The data in Table comparable (ie denominated prices)

[20] In connection with the observance of commercial secrets of the company name and attributes have been changed.

[21] The dynamics of the turnover for 1997 - 1998. considered in constant prices (ie denominated)

[22] The dynamics of the turnover for 1996 - 1998. considered in constant prices (ie denominated)

[23] Assessment of inventory turnover for 1997 - 1998. is given in comparable prices

[24] Assessment of inventory turnover for 1996 - 1998. is given in comparable prices

[25] inventories - inventories

[26] The summary table for 1997 - 1998 is presented in ruble-denominated

[27] inventories - inventories

[28] The summary table for 1996 - 1998 is presented in ruble-denominated

[29] inventories - inventories

[30] Turnover equity and invested capital are equal, since the company has no long-term commitments.

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