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 methoddiagnostics of profitability of the enterprise. Ideal for comparing the work of one organization with another, even if they differ in their specificity. However, not everyone succeeds in compiling it competently. 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 twotables. First, we will draw one and arrange 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 first column is the balance of the enterprise, the second one is called "Current assets", the third one contains "Assets", the fourth one - "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 - "Circulating assets, 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, the 12th line is called" Amortization ", 13 -" Buildings and equipment - the value at the moment. "14th line -" Investments ", 15th line is called" Trademarks " "In 16 you write" Goodwill ", and in 17 place" Total: fixed assets. "Here again, you will beat the interim results for fixed assets.We proceed 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 25 line we can find the "Current part of the long-term debt", and in 26 we write "Debts on taxes". After that, 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. 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 a lower denomination". 36 line - "Additional company funds", 37 - "Profit without distribution", 38 - "Total: own capital", and in line 39 - "Result on the passive". 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 balance analysisrevenue, only 21 rows and 4 columns. Names of lines - revenue, cost, costs, labor costs, costs, depreciation, gross income, etc. To make 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 calculations, you can provide your enterprise with years of productive and profitable work. This is what we mean by vertical balance analysis.

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