Comparative analytical balance. The balance of the enterprise is an example. Analytical balance sheet
The analytical balance is usually used forresearch of the structure and dynamics of changes in the company's financial position. Get it is not difficult. For this, the initial balance is used, in which individual articles are condensed and the indicators of dynamics and structure are supplemented. At the same time, the structure of the original reporting form is usually retained: they emphasize circulating and non-current assets, borrowed and own capital, equality of assets and liabilities. The analytical balance is useful in that it allows you to systematize the calculations made, determine what changes have occurred in the organization's property position, draw conclusions about which sources allowed to open the inflow of new funds and what assets the received finances are invested in.
The role of the analytical balance
Analysis of the comparative analytical balance provides data for the production of an assessment of a number of points:
- determination of the value of current and non-current assets, changes in their ratio, and sources of their financing;
- Articles that grow at a faster pace, and the extent to which they affect the balance sheet structure;
- shares of assets belonging to receivables and inventories;
- distribution of borrowed funds in terms of urgency and other parameters;
- determining the size of the share of own funds and the extent to which the organization depends on them.
Analytic balance analysis pays special attention toattention to the elements, the specific gravity of which is the largest, as well as to those whose proportion changes discontinuously. Horizontal and vertical analysis of the dynamics of the structure and composition of property makes it possible to establish the size of the relative and absolute growth or reduction of the existing property of the company, as well as its individual types.
Diagnosis of the financial condition of a banking organization
Comparative analytical balance is easy to obtainfrom the source by means of its complement indicators of the dynamics, structure and direction of investment of commercial bank funds for the periods being compared. The following are the mandatory parameters of such an analysis:
- absolute values for all balance sheet items at the start and completion of a certain period;
- specific weights of individual items in the balance currency at the start and end of the reporting period;
- absolute magnitudes of changes;
- Absolute indices in the specific gravity;
- percentage changes at the beginning of the period;
- indicators of the dynamics of changes in the structure of the balance;
- the cost of one percent growth of each article and currency balance.
The comparative analytical balance has a predefined formula, which looks like this:
Own means-net = own means-gross-immobilized assets.
If we consider an example of an analytical balance, then its form includes:
- in columns 3-8 there are indicators of the structure;
- Columns 9-17 contain indicators of dynamics;
- Columns 12-20 - indicators of structural balance dynamics.
Columns 3-5 contain information on absolutethe values of the articles and the results of the balance sections at the beginning and end of the period that you want to analyze. Fields 6-8 reflect the specific weights, as well as the values of the items of totals at the beginning and end of the periods. Columns 9-11 contain data on the absolute sizes of sections and articles for the periods analyzed. In fields 12-14 one can see the changes in the relative weights of the values of the articles for the period that needs to be analyzed. Columns 15-17 contain changes in the absolute values of the articles to the parameters of the periods being compared. Fields 18-20 show the percentage changes in absolute values to the balance sheet results.
Comparative-analytical balance: asset
The structure of this part consists of several types of assets: non-income, income-generating, immobilized.
Bank balance liabilities - own (gross) and attracted funds. In a separate line, located behind the balance sheet, there are own funds - net.
The comparative analytical balance is interesting in that,which allows you to bring together and somehow balance the calculations that are usually made by the analyst at the initial acquaintance. Such a table usually covers a huge number of important indicators that characterize the dynamics and statics of the financial position of a commercial bank. The analytical balance, the table of which contains the necessary data, includes indicators that are sufficient for carrying out vertical and horizontal analysis. The first one allows you to determine the specific weight of the net, and the second one is used to determine the relative and absolute changes in the size of individual items for a specific period.
Features of the method
Comparative analytical balance allows:
- separately identify the active and passive types of transactions, give an assessment of the degree of their significance in the overall structure;
- use separate balance accounts to track the movement of balances;
- to reveal the degree of change of scale for certain types of banking operations;
- identify the reasons, as well as the degree of influence of dynamic changes in articles on profitability, stability, liquidity and profitability of banking operations;
- identify which resources of the bank or the enterprise are own and which are attracted;
- to allocate assets by categories: profitable, immobilized and liquid;
- distribute the funds of customers, attracted in the form of a deposit, as required.
When drawing up the structures of changes in liabilities andit is quite possible for the asset to draw conclusions about the influence of certain sources as the main ones for the inflow of cash, and also to know the direction of their investments.
How does it all work?
The external conditions in whichthe activities of the credit organization are constantly changing. This requires the bank's managers to respond appropriately, as well as a detailed, more in-depth analysis of macroeconomic and financial policies, the development of new methods to generate surplus product through the provision of additional services to the institution's clients. The task of banks is a constant striving to meet new market needs, readiness for market adverse impacts, to active competition, especially one that is associated with changes in interest rates.
In modern conditions, all the difficulties of conductingbanking activities need a full revision of the management concept of credit organizations. Now, a direction such as strategic and financial management in banks is very promising. True, he is at the stage of completion and development. These areas have already managed to make themselves known in the sphere of banking, because only with their help can it be possible to effectively manage relations that are associated with strategic objectives and objectives for the formation of monetary resources and their use.
From all the above, we can conclude thatfinancial management in the credit structure is a system of management measures that is taken by the relevant organizational structures to ensure the timeliness and continuity of the flow of credit flows, which are aimed at the stability of the banking institution, the profitability and safety of the resource base of all customers and partners.
Method of forming a comparative analytical balance sheet
The analysis is usually performed by one of the methods proposed below:
- directly on the balance sheet, without changing the pre-composition of balance sheet items;
- by constructing a comparative balance sheet, where some elements of balance items that are homogeneous in composition will be aggregated;
- additional adjustment is madedata on the inflation index with further aggregation of articles in the required economic cuts. The obtaining of a comparative economic balance is allowed from the source by means of the compaction procedure of individual articles, as well as additions to dynamic and structural indicators.
The convenience of this method is thathe systematizes and brings together the calculations traditionally carried out by analysts during the initial acquaintance with the balance sheet. The analysis of comparative analytical balance allows to cover a huge number of indicators that demonstrate the statics and dynamics of the organization's state in terms of finances. This includes indicators of vertical and horizontal analysis, directly from which you can obtain data and characteristics of the current state of the enterprise in terms of finance. These include:
- the reflected total cost of the organization's property, which is in the final line;
- the value of immobilized assets, which is equal to the result of the first section;
- the cost of mobile assets, visible as a result of the second section;
- the value of stocks, that is, material working capital;
- the size of the company's own funds, presented as a result of the third section of the balance sheet;
- the amount of borrowed funds, which is visible in the sum of the results of the fourth and fifth sections;
- the size of its own working capital, visible in the difference between the results of the third and first sections.
Net working capital is seen as a separatethe position of the aggregate balance sheet and is defined as part of the current assets that receive financing due to the invested capital. This indicator is a characteristic of the degree of liquidity of the enterprise, which gives it special importance. Net working capital is the difference between the current assets and liabilities. The larger the magnitude of this indicator, the more stable is the financial position of the organization.
Analytic balance analysis should be carried out withmandatory attention to changes in the proportion of the size of its working capital in the total value of property, the growth rate of own and borrowed capital and their ratio, as well as receivables and payables.
Stable financial stability of the enterpriseis accompanied by an increase in the share of its own working capital, as well as a large growth rate of its own capital in comparison with the borrowed capital. At the same time, accounts payable and accounts receivable are approximately at the same level.
The essence of horizontal analysis of an enterprise consists ofin the construction of the required number of analytical tables, where the absolute balance indicators should be supplemented by indicators of dynamics. The analyst determines the degree of aggregation of indicators. This is another important way to determine the financial position of the enterprise and its sustainability.
Use of analytical balance
Very often for external analysisit turns out that the standard balance sheet is completely inadequate. In this case, it is allowed to use a compacted one. Its composition presupposes a transformation consisting in consolidation or disaggregation, as well as a thinning of the balance with mandatory observance of a number of important rules:
- the real value of non-current assets must be indicated;
- the value of current assets (inventories,accounts receivable, free cash) and liabilities (loans and payables) should be adjusted for amounts that did not fall into the balance sheet for one reason or another.
The difference between the cost of liabilities andassets can be adjusted by means of a specially created article of the analytical balance, which was called "Accumulated capital". It unites absolutely all types of retained earnings, accumulation funds, reserves formed at the expense of profits, consumption funds, as well as other balance items. So, if we talk about how to check the balance, then it should be noted that this article presents everything that the company has managed to earn during its existence. If it is a question of privatized property, then from the moment of corporatization. You can consider the balance of the enterprise, an example of which is presented below.
The structure can be considered satisfactory if the balance is consistent with a set of certain criteria:
- the total amount of assets or liabilities, that is, the currency of the balance sheet, should increase at the end of the reporting period in comparison with the beginning;
- current assets should grow at a higher rate than non-current assets;
- the organization's own capital should be more than borrowed, and the dynamics of its growth should exceed the growth rates of borrowed capital;
- Accounts payable and receivables should be increased approximately at the same rate;
- own funds in current assets should be invested more than 10%;
- The balance sheet must not contain uncovered losses.
So, if we consider the balance of the enterprise,an example of which is described here, it must be said that by analyzing the causes and components of increasing or decreasing certain parameters of indicators, you can detect vulnerabilities in the financial and economic activities of any company. To do this, you need to pay attention to different parts of the entire set of data.
Considering the balance, an example of which heredescribed, you can notice different points. Let's assume that a decrease in the total for a certain period, which is being considered at the moment, is evidence of a decrease in the company's economic turnover, which is often a consequence of the insolvency of the enterprise. And sometimes it is the decrease in the turnover of the firm that causes its insolvency. This fact can be determined only as a result of a deeper analysis:
- there may be a reduction in effective demand for the work, goods and services of the organization;
- the markets do not receive the necessary materials, raw materials or semi-finished products, depending on the scope of the company;
- branches are gradually involved in the active economic circulation, taking advantage of the "soil" prepared by the "parent" company.
The definition requires a comparativeanalytical balance. Conclusions on it can easily be done by a qualified accountant, who will identify all important aspects of the company's activities. When analyzing the increase in the currency of the balance for the specified period, it is necessary to take into account the effect of changes in the valuation of fixed assets, if the increase in their value is completely independent of the development of production activity. This shows the balance, an example of which is considered here. The most difficult to take into account the extent of the impact of inflationary processes, but without this it will be difficult to draw any definite conclusions about whether the increase in the balance of the currency was due to the rise in the cost of finished goods under inflationary impact, or it demonstrates the expansion of the financial and economic activities of the organization.
If we investigate how the structure has changedassets of the company, it is possible to get quite important information. In particular, the increase in the share of current assets in assets is often evidence of the formation of a more mobile asset structure, which allows to increase the turnover rate of the company's funds. Part of the current assets may be diverted to lending consumers of goods, finished goods, services of the organization and works, subsidiaries and other debtors, which indicates the actual immobilization of this part of the working capital from the main production process. You can also talk about the collapse of the production base. The use of a certain accounting procedure may well distort the real valuation of fixed assets.
So, the comparative analytical balance becamean important and powerful tool for determining the current state of the enterprise. With its help, you can determine not only financial stability, but also other significant for the activity of the moments. At this time, it is not necessary to compile the comparative analytical balance of the enterprise manually, for this already there are ready-made programs intended for accounting. It is more convenient for an analyst to work with such information.</ p>>