Vertical balance analysis - example, features of vertical analysis, vertical balance analysis and difficulties in compiling it, conclusions from the balance sheet

Vertical balance analysis is an important way to diagnose the profitability of an enterprise. Ideal for comparing the work of one organization with another, even if they differ in their specificity. However, not everyone can write it correctly. Readers will be able to understand how this is done, by analogy. The vertical analysis of the balance, the example of which we propose in this article, is simple in understanding and sufficiently correct in order to imitate it. Just watch what we do, and substitute your numbers.

Vertical balance analysis is performed in two tables. First, draw one and draw out her hat. So, in 1 table there will be 4 columns: 1 - wide - the names of the articles will be concentrated in it, and the remaining 3 - less - only the figures in them. The rows in the table should be 39. The 1st row of the 1 column is the balance of the enterprise, the second is called the "Current assets", the third is "Assets", the fourth is "Cash". In the fifth there are securities - the value of shares, etc. The sixth contains receivables. In the seventh write down - "Bills receivable". The eighth line is the product (cost), 9 - the prepayment costs, in the tenth line you insert - "Turnaround funds, total" - and later in these rows of each column you will beat the general balance of working capital. Then line 10 - in it the basic means goes. In line 11 - Buildings, equipment - initial cost "and other property of the enterprise, 12 line is called" Amortization ", 13 -" Buildings and equipment - the cost at the moment. "14 line -" Investments ", 15 line is called" Trademarks " In 16 you write "Goodwill", and in 17 place "Total: fixed assets." Here, again, you will be punching in the interim results for fixed assets.Convert to line 18: we mark it again with the result on assets write: "Assets - Total".

Now we deal with liabilities - line 19. In 20 we write - "Short-term debt", in 21 we place debts on loans, and in 22 - bills of exchange receivable. The twenty third line is the accrued liabilities. 24 line - bank loan. In the 25th line we can find the "Current part of the long-term debt", and in 26 we write "Debts on taxes". Then we sum up the result in line 27 - "Short-term debt of everything". In line 28 we write "Long-term debt", and in 29 - "Bonds for payment". We pass to line 30, we write in it - "Long-term loan of the bank". And in 31 we mark - "Profits tax with a delay". Then in line 32, only "Total: long-term debt" remains to be recorded. And in 33 we fill it out: "Personal capital", in the 34th line we tick: "Shares in 12%", and the 35th line we call "Shares of lower denomination". 36 line - "Additional company funds", 37 - "Profit without distribution", 38 - "Total: own capital", and in line 39 - "Result on liabilities". Vertical analysis, an example of which we are presenting, is formalized according to the following points: columns 2, 3 and 4 are called periods of time, on which the data that you have found falls. It is possible so 01.01. 2005, then the second - 01.01.2006, and the third - 01.01.2007. And now in each column write down the data for each year. After that, perform calculations in the summary lines for the asset, liability and equity. So you can easily do a vertical balance analysis. True, there will be a lot of time left for this, but it's worth it: correctly drawn conclusions from the analysis contribute to eliminating the problems of the enterprise and increasing profits.

In the second table - a vertical analysis of the revenue balance, only 21 rows and 4 columns. Names of lines - revenue, cost, costs, labor costs, costs, depreciation, gross income , etc. Check out this table easier than the first, because most of the data you just rewrite from it. So with just 2 tables and a day of work on the calculations, you can provide your company with years of productive and profitable work. This is the value of the vertical balance analysis.