How to estimate a financial condition of the enterprise

How to estimate a financial condition of the enterprise

The assessment of a financial condition of the company is necessary for drawing up further planned indicators and consists of calculation of fundamental coefficients of formation of current assets.

The sponsor of placement P&G Articles on the subject "How to Estimate a Financial Condition of the Enterprise" How to carry out a financial assessment of firm How to find the average size of assets How to calculate capitalization coefficient

Instruction

1
Make calculation of data which characterize the different aspects of activity of the organization connected with emergence and use of its cash flows.

2
Calculate the liquidity coefficient size which reflects possibility of the company to satisfy short-term debt obligations. To define the indicator of absolute liquidity determining the size of a cover amount of short-term debt obligations not in a cash money equivalent, and by means of securities or deposits, it is necessary to correlate the sum of money and value of short-term investments to the available sum of the current obligations.

3
Define an indicator of urgent liquidity. He can be found in the form of the relation of the most liquid sum of current assets (short-term investments, the size of receivables and the sum of money) to value of short-term obligations.

4
Define coefficient of the current liquidity. Can calculate it as private from a ratio of size of current assets and short-term obligations. You will see, how many for firm is available means which it is possible to transfer the amounts of short-term obligations on repayment.

5
Count profitability coefficients. These indicators will help you to estimate, production of the company is how profitable. In turn, value of coefficient of profitability of sales will show a part of profit which was received from the volume of all made sales. Can define its value from a ratio of size of net profit and number of sales increased by 100%.

6
Determine the sum of an indicator of profitability of own means. This coefficient reflects efficiency of use of financial means of own capital. Can find him by means of the following formula: divide net profit into the sum of own monetary investments, further increase the received value by 100%.

7
Write conclusions by the made calculations. After that can specify planned values the next year, comparing data with the received indicators.