For a more specific calculation of liquidity, the following ratios are used: Kz.


For a more specific calculation of liquidity, the following ratios are used: Kz.

a) 40% of the value of the goods was payable in cash after delivery; b) 60% – on credit for three years with repayment of the loan on the following terms (see Table 1):

Table 1.

Loan shares (K), thousand UAH

Maturity (t)



In one year



In two years



In two years






Quality of export and import goods

The quality of goods must meet the technical conditions of the contracts. Otherwise, foreign buyers may file complaints that damage the credibility of the firm as an exporter of goods, and reduce the amount of revenue for goods by the amount of satisfied complaints. The analysis of this part of the company’s work for the reporting period should be carried out in comparison with this work for previous periods. As a criterion in assessing the work of firms on the quality of goods, you can calculate the percentage of the amount of satisfied complaints to the value of goods supplied.

In addition to the analysis of the dynamics of complaints, individual complaints are also studied. At the same time it becomes clear what measures were taken by firms to improve the quality of goods and how effective these measures were.

Competitiveness of goods

Competitiveness of goods and services means their ability to withstand comparisons with similar goods and services of other manufacturers and to be sold in this connection at prices not lower than the market average. The level of competitiveness of goods and services is determined by a combination of various technical and economic factors: quality and cost, forms and methods of trade, prices, terms and conditions of delivery and transportation, compliance with fashion requirements and local market conditions, types and forms of payments to customers. and the seller (“price” of the company), the prestige of the product (trademark), the effectiveness of advertising and more.

The most difficult is to establish the competitiveness of machinery and equipment. The main factor of their competitiveness is quality, which is determined by many components, the set of which is more complex and diverse than that of goods of other categories. The concept of quality of machines and equipment includes productivity and versatility, standardization and unification of models. At the same time, equipment performance is not always the main factor. Yes, sometimes low-performance equipment is preferred, but cheaper and universal, simple, safe and easy to use (in everyday life, in small workshops).

The most important characteristic of the quality of machines and equipment is their technical novelty and patent frequency – a requirement that is especially necessary in the scientific and technological revolution. Of great importance are the reliability and durability of work and service life before the first overhaul, the level of maintenance and supply of spare parts. The level of competitiveness of machinery and equipment depends on their compliance with the specific requirements of the local market (adaptability to work in tropical and polar climates, on sandy, swampy or stony soils, to work on local raw materials; taking into account traditions, habits and preferences of the local population).


Financial statements of the enterprise: types, procedure and analysis. Abstract

The main means of providing information about the financial condition are financial statements. For the manager the most important are the analysis and an estimation of efficiency of economic operations, the resources which are used thus, and the received results.

Owners and shareholders are primarily interested in the return on their capital and the level of risk of their possible loss.

For creditors, the most important thing is to assess the prospects for return on investment.

For suppliers – the ability of the company to timely pay for services and products supplied.

However, there are certain reasons why accounting data are not able to give a complete picture of the state of affairs in the company:

financial statements reflect only those events that can be presented in monetary terms; only those events that have already taken place are reflected in the financial statements; the balance sheet does not show the market value of most assets; the management of the company, together with its accounting department, has some freedom to choose the method of reflecting events on the accounts (methods – LIFO, FIFO or average cost); many dimensions in accounting are estimated.

In order to assess the effectiveness of the company, you must use one of three methods:

the historical method compares the results of the company’s activities with its results in the past. the external method compares the results of the company with the results of a similar company or with the average results in the industry. the subjective method compares the results of the company’s activities with a subjectively established criterion.

The financial statements and the appendix to the information on the company’s profitability contain information on its liquidity and solvency.

Consider the main of these indicators:

Liquidity ratios – characterizes the ability of the company to meet its short-term obligations from its current assets.

An enterprise is considered liquid if its current assets exceed current liabilities. For a more specific calculation of liquidity, the following ratios are used:

Kz. l. = Pa / Pp, de

Kz. l. – total liquidity ratio (Current ratios)

Pa – Current Assets

PP – current liabilities (Current Liable)

If the ratio is less than 1: 1, it means the presence of high financial risk. Low levels of liquidity may indicate difficulties with sales.

A 2: 1 ratio is theoretically considered optimal, although for some areas of business it can range from 1.2 to 2.5.

Very high liquidity (3: 1) is also not very good. It may mean that the enterprise has more resources under its control than it can use effectively. And this indicates a deterioration in the efficiency of all types of assets.

Book l. = (Pa – Tz) / Po, de

Book l. – immediate ratio

Pa – Current assets

Vehicles – Inventories

Current Liabilities

This indicator characterizes the ability of the company to perform its current duties on liquid assets. Theoretically normal ratio is 1: 1.

Sometimes this ratio is calculated as follows:

K nl = (G + CP) / Po, de

G – money (Cash)

Securities – Marketable Securities

Current Liabilities

The first formula is of greater interest to banks and financial institutions, and the second – to suppliers.

SPd. with. = DZ / (P: 365), where

SPd. with. – the average period of receipt of receivables (Average collection)

DZ – receivables (Receivables)

P – sales

This ratio shows how long it takes on average to receive receivables, ie how many days receivables are converted into cash (the average term of a commercial loan provided by the company to its business partners). Low rates indicate rapid turnover and efficient management of commercial enterprises.

Inventory turnover in days: the ratio of the amount of inventories to the one-day turnover on sales:

Inventories = Inventories

Sales: 360

This indicator makes it possible to calculate the number of days per 1 turnover of inventories. Low indicators indicate good demand for this product of the enterprise. High performance may mean that the company has more inventory than it needs, or has difficulty selling its products.

Maneuverability ratio – the ratio between working capital and equity. It is usually measured as a percentage:

Km = Current assets / Net worth

Solvency analysis

The solvency of an enterprise is the ability to perform its external duties using its own assets. This indicator measures financial risk, ie the probability of bankruptcy. To calculate the level of solvency using a special ratio that shows the share of equity (share) capital of the enterprise in its general responsibilities.

Kp = VK / ZO, where

Kp – solvency ratio

VK – equity (Net Worth)

LC – Total Liabilities

A high solvency ratio means low financial risk and good opportunities to attract additional funds from the outside.

In the analysis of the solvency of the enterprise are also used ratios between equity and long-term liabilities:

Kp = VK / DZ, where

VK – equity (Net Worth)

DZ – long-term liabilities (Fixed Liabilities)

level of return of long-term liabilities:

Kp = PO / BB, where

Software – Operating Profit

BB – interest paid (Interest Expense)

Profitability analysis

Profit ratio, which includes interest and taxes (PvP), to long-term capital.

Efficiency = Pvp / Long-term capital

The indicator “return on long-term capital” characterizes the efficiency of the company’s use of its capital, without taking into account the components of long-term capital, debt capital and equity.

Long-term capital turnover ratio

ODK = PR / KD, where

ODK – turnover of long-term capital

PR – profit from sales

CD – long-term capital.

Long-term capital turnover ratio shows what profit is received from each dollar of long-term capital

A company with a low level of profit is able to provide a satisfactory level of return on invested capital, provided that it will have a high turnover of long-term capital.

Return on total investment:

The types of profits that are reflected in the income statement are the most common indicators of the company’s profitability. When analyzing profitability, it is important to know how effectively all the means of making a profit were used.

For a comprehensive measurement of profitability use the following factor:

K = (Pv. N. + BB)

(DZ + VK), where

Pv. item – profit before tax (Profit before fax)

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