Simple indicators of the company's financial stability

It's no secret that many enterprises are quickly closed after their opening, they are declared bankrupt. This is due not only to the lack of demand for the services or goods they provide, but also to the changes in the market situation, but also to management errors, many of which can be corrected (change the location to a more profitable one). But there are those who quickly lead to the closure of the company, and it's too late to fix them.

Experts attribute a high percentage of burned-out enterprises to a lack of work on the company's finances. Namely, with the inability to distribute correctly, manage the means of the enterprise. This error is detected using special formulas - financial stability indicators.

It is these figures that reveal what means, at what stage and how they were used. Let us understand how we should handle our own funds and credit loans. A timely analysis could save an enterprise from death.

Competent approach to expenses

The cost of advertising, renting premises, stationery, staff salaries and other items can be a decent amount every month (which is one stretch over the office ...). The main secret is to cover more than 50 percent of expenses by own profit (absolute indicators of financial stability).

In this case, each item of expenditure should be justified. An employee who receives a salary of 10 thousand rubles must fulfill his duties in full, bring real benefits to the enterprise, participate in the life of the firm as a whole, even if it is not part of its duties. Then you can think about premiums, other incentives. Advertising costs should also be justified. If you do not work across Russia, and your office represents a small corner in a small city in the country, you should not invest about 30 thousand each month in advertising on the Internet on any major portal, whose administration promises to spread information about you "in the right places "Network. While this is not your scale. Better place on this money more ads in the local newspaper, which is read by residents who fall under your target audience (potential customers).

Many managers, being creative and resourceful people (such entertainers), take constant steps to develop their own business, improve services or quality of goods. These actions can be costly, and can be carried out and on a free basis. Before taking a risky step, for example, opening another office that will bring more expenses, it is worthwhile to calculate how much it is justified, and whether there are other, cheaper methods to achieve the same goal.

Thus, the indicators of financial stability are closely related to the concept of liquidity (timely payment of short-term payments) and solvency in general. If, for example, an employer can not pay salaries to employees on the appointed day, this may be an indication of the instability of the enterprise. A final analysis requires a comprehensive analysis, a calculation (to which we will return below).

Competent analysis of the current situation

To make sure that you are doing things right, or to understand what is going wrong is necessary to make the appropriate calculations. Experts recommend conducting them once a quarter or at least a year. The indicators of financial stability are divided into relative and absolute. It is with the help of them that you can find out everything you need about the position of the firm in the market, its prospects and the shortcomings of managing its own and borrowed funds.

Relative indicators of financial sustainability reflect the need for, or even dependence on, creditors and investors. The position of the enterprise is estimated by the ratio of borrowed funds and own funds. The error in calculations is compensated by the coefficients: maneuverability (the ability to cover expenses with own funds and borrowed funds during the reporting year), the autonomy ratio (how independent is the company from creditors and investors). The data obtained are compared with the indicators of the previous period (if they did not already exist, then with the indicators of similar organizations). This is how the situation is forecasted.

Financial stability indicators can be identified on the basis of accounting reports (liabilities and assets) for a certain period, compared with previous data or ideal indicators, which can be taken from official sources: the recommendations of the Ministry of Economic Development of Russia.

A thorough analysis of the situation is required when it comes to a large production enterprise. For calculations, it is better to invite qualified specialists, providing them with all the accounting documentation.