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Indicators that determine the financial position of the enterprise. Critical financial situation

Questions:

1. Goals, objectives and methods of financial analysis

2. Analysis of property and sources of its financing

3. Analysis of liquidity and solvency

4. Financial stability analysis

5. Analysis of the financial results of the enterprise

6. Cash flow analysis

7. Analysis of business activity of the enterprise

8. Assessing the probability of bankruptcy

1. Goals, objectives and methods of financial analysis

Financial situation is most important characteristic business activity and reliability of the enterprise. The results of economic analysis answer the question of what are the most important ways to improve the financial condition of an enterprise in a specific period of its activity. The purpose of the analysis is not only to establish and evaluate the state of the enterprise, but also to constantly carry out work aimed at improving it.

The main objectives of financial analysis of an enterprise are:

The share of own funds in current assets is more than 10%,

No uncovered losses, overdue debts, etc.

Indicators of structure and dynamics balance sheets are important for understanding the overall picture of financial condition. By comparing structural changes in assets and liabilities, we can draw a conclusion about through what sources there was an influx of new funds and in what assets these funds were invested. The deterioration of the financial situation can be judged by the unfavorable relationship between the amount of current assets and short-term liabilities. The difference between them will show the presence (+) or lack (-) of own working capital.

When analyzing assets, you should find out due to what types of assets the total value of the property has changed. In this case, it is preferable to increase specific gravity current assets as the most liquid part of the property and their faster growth compared to non-current assets.

More detailed assessment the composition, structure and dynamics of working capital will allow us to draw informed conclusions about the mobility of current assets, possibly unjustified diversion of funds into accounts receivable or illiquid inventories.

By comparing the rate of change in inventories on the balance sheet and sales revenue, one can conclude that the turnover of current assets is accelerating or slowing down. A decrease in the share of mobile funds and a slowdown in the turnover of current assets indicate a deterioration in financial condition.

Analysis of structure and dynamics liabilities allows you to set possible reasons financial stability (instability) of the organization. At the same time, they assess changes in sources of financial resources. Involving a share of equity capital from any of the sources helps to increase the financial stability of the organization, and the presence of retained earnings is considered as a source of replenishment of working capital and a reserve for reducing the level of accounts payable, as a margin of financial strength.

The dynamics and structure should be assessed in detail borrowed money, especially short-term ones, using, if necessary, data on their composition contained in the appendix to the balance sheet. At the same time, attention is paid to the sharp increase in the types of debt that are most dangerous for the financial condition (to the budget and off-budget funds, overdue debt).

It is advisable to compare not only the absolute amounts, but also the growth rates of receivables and payables, since they should balance each other.

The deterioration of the organization’s financial position can be judged by changes in accounts receivable and payable:

A sharp increase and increase in the share of accounts receivable as part of current assets means a deterioration in the state of settlements, a weakening of control over the timeliness of settlements, and a decrease in balance sheet liquidity;

Sharp differences in the dynamics and amounts of receivables and payables may indicate a violation of payment discipline, disproportions between receivables and payables.

Analysis of balance sheet currency dynamics, structure of assets and liabilities allows us to draw conclusions about financial situation organizations. A decrease in the size of the balance sheet currency for the reporting period may indicate a reduction in the turnover of funds, a decrease in property potential under the influence various factors(insolvency of the organization or its partners, sale of part of the assets, etc.). In stable operating conditions, an increase in the balance sheet total is assessed positively, and a decrease - negatively.

3. Analysis of liquidity and solvency

The financial condition of organizations can be assessed on the basis of enlarged balance sheet items, which are combined into four groups:

1) indicators of liquidity and solvency;

2) indicators of financial stability;

3) indicators of business activity;

4) profitability indicators.

The first group includes indicators of liquidity and solvency.

Solvency of the enterprise refers to his willingness to repay debts in the event of simultaneous demands for payments from all creditors. To determine the readiness to repay its debt, indicators of the organization's solvency and balance sheet liquidity are used.

This indicator measures financial risk, that is, the likelihood of bankruptcy. IN general case An organization is considered solvent if its total assets exceed its external liabilities. Therefore, the more total assets exceed external liabilities, the higher the degree of solvency. Here are the liquidity and solvency indicators:

Indicators	Calculation method	A comment
1. Solvency ratio	Current assets Long-term + short-term liabilities	Shows the ability to cover your debts using current assets without resorting to selling off your property. More than 1.
2. Total liquidity ratio	Current assets Short-term liabilities	Shows the extent to which liabilities are covered by current assets. Characterizes the ability to pay off debts. From 2 to 3.
3. Quick ratio	Quick liquid current assets Short-term liabilities	Determines the organization’s ability to fulfill obligations from quick-liquid assets. From 0.7 to 1.
4. Absolute liquidity ratio	Den. means+ briefly urgent financial attachments Short-term liabilities	Characterizes the organization's ability to pay off debt immediately. The higher it is, the more reliable the organization. From 0.2 to 0.3.
5. Equity ratio	Equity - Fixed assets Current assets	Shows how much own working capital accounts for 1 ruble of current assets. Value greater than 0.1.
6. Accounts payable to receivable ratio	Accounts payable debt Accounts receivable debt	Shows how many times accounts payable exceeds accounts receivable. The higher the indicator, the greater the dependence on creditors.

These indicators are of interest not only for the management of the enterprise, but also for external subjects of analysis: the absolute liquidity ratio - for suppliers of raw materials and supplies, the quick liquidity ratio - for banks, the total liquidity ratio - for investors.

Analysis of balance sheet liquidity - comparison of assets, grouped by the degree of decreasing liquidity, with short-term liabilities, which are grouped by the degree of urgency of their repayment.

The first group (A 1) includes absolutely liquid assets, such as cash and short-term financial investments.

The second group (A 2) includes quickly realizable assets: shipped goods, accounts receivable, taxes on purchased assets. Their liquidity depends on the timeliness of shipment of products, forms of payment, demand for products, solvency of buyers, etc.

The third group (A 3) is slowly selling assets (inventories, work in progress, finished products). It will take much longer to convert them into cash.

The fourth group (A 4) is hard-to-sell assets (fixed assets, intangible assets, long-term financial investments, construction in progress, long-term accounts receivable).

Accordingly, obligations are divided into four groups:

P 1 - the most urgent obligations (accounts payable and bank loans, the repayment terms of which have come, overdue payments);

P 2 - short-term bank loans and loans;

P 3 - long-term bank loans and loans;

P 4 - equity at the disposal of the enterprise.

The balance is considered absolutely liquid if:

A x >P 1 ; A 2 >P 2; A 3 >P 3; A 4<П 4 .

Studying the ratios of groups of assets and liabilities for a number of periods will allow us to establish trends in changes in the structure of the balance sheet and its liquidity.

4. Financial stability analysis

The financial condition of an organization must be assessed not only in the short term, as shown by solvency indicators, but also in the long term by calculating financial stability indicators. Here are the indicators of financial stability:

Indicators

Calculation method

An enterprise is an independent economic entity created to conduct business activities, which are carried out in order to make a profit and meet public needs.

The financial condition of an enterprise refers to the ability of an enterprise to finance its activities. It is characterized by the availability of financial resources necessary for the normal functioning of the enterprise, the feasibility of their placement and efficiency of use, financial relationships with other legal entities and individuals, solvency and financial stability.

The financial condition of an enterprise can be stable, unstable and in crisis. The ability of an enterprise to make payments on time and to finance its activities on an expanded basis indicates its good financial condition. The financial condition of an enterprise depends on the results of its production, commercial and financial activities. If production and financial plans are successfully implemented, then this has a positive effect on the financial condition of the enterprise, and, conversely, as a result of failure to fulfill the plan for the production and sale of products, its cost increases, revenue and the amount of profit decrease, therefore, the financial condition of the enterprise and its solvency deteriorate .

A stable financial position, in turn, has a positive impact on the implementation of production plans and provision of production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the systematic receipt and expenditure of monetary resources, implementing accounting discipline, achieving rational proportions of equity and borrowed capital and its most efficient use. The main goal of financial activity is to decide where, when and how to use financial resources for the effective development of production and maximum profit.

To survive in a market economy and prevent an enterprise from going bankrupt, you need to know well how to manage finances, what the capital structure should be in terms of composition and sources of education, what share should be taken by own and borrowed funds. You should also know such concepts of a market economy as business activity, liquidity, solvency, creditworthiness of an enterprise, profitability threshold, margin of financial stability (safety zone), degree of risk, the effect of financial leverage and others, as well as the methodology for their analysis.

Therefore, financial analysis is an essential element of financial management and auditing. Almost all users of financial statements of enterprises use financial analysis methods to make decisions to optimize their interests.

Owners analyze financial statements to improve the return on capital and ensure the stability of the company's growth. Lenders and investors analyze financial statements to minimize their risks for loans and deposits. We can firmly say that the quality of decisions made depends entirely on the quality of the analytical basis for the decision.

The purpose of the analysis is not only to establish and evaluate the financial condition of the enterprise, but also to constantly carry out work aimed at improving it. Analysis of the financial condition of the enterprise shows in which areas this work should be carried out, makes it possible to identify the most important aspects and the weakest positions in the financial condition of the enterprise. In accordance with this, the results of the analysis answer the question of what are the most important ways to improve the financial condition of an enterprise in a specific period of its activity. But the main goal of the analysis is to promptly identify and eliminate shortcomings in financial activities and find reserves for improving the financial condition of the enterprise and its solvency. To assess the stability of the financial condition of an enterprise, a whole system of indicators characterizing changes is used:

capital structure of the enterprise according to its allocation to sources of education;

efficiency and intensity of its use;

solvency and creditworthiness of the enterprise;

reserve of its financial stability.

The indicators must be such that all those who are associated with the enterprise through economic relations can answer the question of how reliable the enterprise is as a partner and, therefore, make a decision about the economic profitability of continuing relations with it. Analysis of the financial condition of an enterprise is based mainly on relative indicators, since absolute balance sheet indicators in conditions of inflation are almost impossible to bring into a comparable form. Relative indicators can be compared with:

generally accepted “norms” for assessing the degree of risk and predicting the possibility of bankruptcy;

similar data from other enterprises, which allows us to identify the strengths and weaknesses of the enterprise and its capabilities;

similar data for previous years to study trends in improvement or deterioration of the financial condition of the enterprise.

Main tasks of the analysis:

timely identification and elimination of deficiencies in financial activities, and the search for reserves for improving the financial condition of the enterprise and its solvency;

forecasting possible financial results, economic profitability, based on the actual conditions of economic activity and the availability of own and borrowed resources, developing models of financial condition for various options for using resources;

development of specific activities aimed at more efficient use financial resources and strengthening the financial condition of the enterprise.

The analysis of the financial condition of the enterprise is carried out not only by the managers and relevant services of the enterprise, but also by its founders, investors in order to study the efficiency of the use of resources, banks to assess lending conditions and determine the degree of risk, suppliers to receive payments on time, tax inspectorates to fulfill the plan for the receipt of funds in budget, etc.

The main goal of financial analysis is to obtain a small number of key (the most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, and in settlements with debtors and creditors. At the same time, the analyst and manager (manager) may be interested in both the current financial state of the enterprise and its projection for the near or longer term, i.e. expected parameters of financial condition.

But it is not only time boundaries that determine the alternativeness of the goals of financial analysis. They also depend on the goals of the subjects of financial analysis, i.e. specific users of financial information.

The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. The main factor, ultimately, is the volume and quality of the source information. It should be borne in mind that the periodic accounting or financial statements of an enterprise are only “raw information” prepared during the implementation of accounting procedures at the enterprise.

In order to make management decisions in the field of production, sales, finance, investment and innovation, management needs constant business awareness on relevant issues, which is the result of the selection, analysis, evaluation and concentration of initial raw information, an analytical reading of the initial data is necessary based on the goals of analysis and management .

The basic principle of analytical reading of financial statements is the deductive method, i.e. from general to specific, but it must be applied repeatedly. In the course of such an analysis, the historical and logical sequence of economic facts and events, the direction and strength of their influence on the results of activity are reproduced.

The introduction of a new chart of accounts and bringing the forms of financial statements into greater compliance with the requirements of international standards necessitates the use of a new methodology for financial analysis that meets the conditions of a market economy. This technique is needed to make an informed choice of a business partner, determine the degree of financial stability of the enterprise, evaluate business activity and the effectiveness of business activities.

The main (and in some cases the only) source of information about the financial activities of an enterprise is financial statements, which became public. The reporting of an enterprise in a market economy is based on a generalization of financial accounting data and is an information link connecting the enterprise with society and business partners who are users of information about the activities of the enterprise.

In certain cases, to achieve the goals of financial analysis, it is not enough to use only financial statements. Certain user groups, such as management and auditors, have the opportunity to attract additional sources (production and financial accounting data). However, most often annual and quarterly reports are the only source of external financial analysis.

The financial analysis methodology consists of three interconnected blocks:

1) analysis of the financial results of the enterprise;
2) analysis of financial condition;
3) analysis of the effectiveness of financial and economic activities.

The main source of information for analyzing the financial condition is the enterprise’s balance sheet (form N1 of annual and quarterly reporting). Its importance is so great that financial analysis is often called balance sheet analysis. The source of data for the analysis of financial results is the report on financial results and their use (Form No. 2 of annual and quarterly reporting). The source of additional information for each of the blocks of financial analysis is the balance sheet (Form No. 5 of the annual reporting).

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INTRODUCTION

The national economy is made up of the economies of individual firms. No company operates in isolation. In the process of its production and financial activities, an extensive system of relationships arises with other organizations: suppliers and contractors, buyers, banks, tax authorities, insurance organizations, etc. All elements of the national economy are interconnected and interdependent. Therefore, the financial condition of organizations predetermines the condition of the economy as a whole. By improving the fortunes of individual firms, we can eliminate many economic problems at the macro level, i.e. at the country level, and ultimately at the global level.

Ensuring the effective functioning of organizations requires economically competent management of their activities, which is largely determined by the ability to analyze it. With the help of analysis, development trends are studied, factors of changes in performance results are deeply and systematically studied, plans and management decisions are substantiated, their implementation is monitored, reserves for increasing production efficiency are identified, the results of the organization’s activities are assessed, and an economic strategy for its development is developed.

The transition to a market economy requires increasing business efficiency. Of particular importance to achieve this goal is the substantiation of the factors for the formation of performance indicators of each business entity using the analysis of economic activity.

This topic is interesting and relevant. The economy of the Republic of Belarus has a number of complex problems: inflation, unemployment, budget deficit, etc., which need to be solved. Any macroeconomic problem arises at the micro level. It is simply necessary to identify it in time and prevent its expansion and spread. In this case, the analysis of economic activity is of particular importance. It is necessary to constantly monitor the state of affairs of the company, promptly identify shortcomings in its production and financial activities and promptly eliminate them.

Any organization must analyze its financial condition in order to determine its ability to timely make settlements with counterparties, make all mandatory payments, while ensuring a normal rate of profit that allows it to function successfully in the market.

Any organization is assessed by external entities in terms of its investment attractiveness, i.e. the feasibility of investing free funds in it.

In connection with all of the above, the purpose of the work is to analyze the liquidity and solvency of Experiment ODO.

In this regard, it is possible to determine the need to solve a number of problems:

Research theoretical basis liquidity and solvency management,

Conduct an analysis of the liquidity and solvency of the organization

Identify areas for increasing the liquidity and solvency of the organization.

Thus, the object of the study is ALC "Experiment", the subject of the study is the features of liquidity and solvency management at the enterprise ALC "Experiment"

1. THEORETICAL FOUNDATIONS OF LIQUIDITY AND SOLVENTITY MANAGEMENT

One of the most important criteria for the financial condition of an organization is its solvency. Solvency refers to the ability of an organization to timely repay payments on its short-term obligations while carrying out uninterrupted production activities.

Solvency analysis is necessary for:

· The organization itself when assessing and forecasting financial activities;

· Banks for the purpose of verifying the borrower’s creditworthiness;

· Partners in order to determine the financial capabilities of the organization when providing a commercial loan or deferred payment.

When analyzing the financial condition of an organization, a distinction is made between long-term and short-term solvency. Long-term solvency refers to the ability of an organization to pay off its long-term obligations.

Determination of short-term (current) solvency is carried out according to balance sheet data. To assess the level of solvency, it is necessary to compare the amount of means of payment with short-term liabilities. Payment means include:

· Cash in bank accounts and in cash;

· Financial investments;

· Accounts receivable to the extent that there is no doubt about repayment.

Current liabilities include:

· Short-term loans and borrowings;

· Accounts payable.

The excess of means of payment over external obligations indicates the solvency of the organization. The insolvency of an organization may be indirectly indicated by:

· Lack of funds in accounts and in the cash register;

· Availability of overdue debt on loans and borrowings;

· Availability of debt to financial authorities;

· Violation of deadlines for payment of wages and other reasons.

The reasons for insolvency may be:

· Failure to fulfill the production and sales plan;

· Increase in production costs;

· Failure to fulfill the profit plan;

· Insufficiency of own sources of self-financing;

· High percentage of taxation;

· Irrational use of working capital;

· Diversion of funds into accounts receivable, etc.

The ability of an organization to pay its short-term obligations is usually called liquidity (current solvency). In other words, an organization is considered liquid when it is able to meet its short-term obligations.

Any external partners of the organization (creditors, investors, owners, fiscal services), first of all, are interested in its ability to pay current obligations in a timely manner and in full. Therefore, analysis of the liquidity of the organization’s balance sheet becomes important. There are 2 concepts of liquidity in financial analysis:

1. Short-term liquidity (up to 1 year) refers to the organization’s ability to pay its short-term obligations. In this case, liquidity is close in content to solvency;

2. Liquidity refers to the ability to convert assets into cash and pay off your payment obligations.

When analyzing the liquidity of an organization, it should be taken into account that non-current assets (fixed capital) in most cases cannot be a source of repayment of current debt due to their functional purpose in the production process and the difficulty of their urgent sale. Therefore, they are not included in assets when calculating liquidity ratios.

Within the first approach, liquidity is understood as the ability of an organization to cover its short-term obligations in the short term. An organization is considered illiquid if there is a risk of non-payment of current financial obligations. This may be temporary or indicate serious and permanent problems in the organization's activities. The reasons for this situation may be:

· Tying up the organization's funds in the form of illiquid assets that cannot be quickly converted into cash;

· Irrational financing of its main production activities, which is characterized by a discrepancy between the timing of debt repayment and the timing of cash generation and a discrepancy between the size of the debt and the ability to receive cash.

Depending on the degree of liquidity, i.e. ability and speed of conversion into cash, the assets of the enterprise are divided into the following groups:

1. The most liquid assets (A1), representing amounts for all items of cash and short-term financial investments (securities). The most liquid assets can be used to pay off current liabilities immediately.

2. Quickly realizable assets (A2), representing short-term receivables and other assets. It takes some time for these assets to turn into cash.

3. Slowly realizable assets (A3) represent inventories, long-term accounts receivable, VAT on acquired assets. Finished goods inventories can only be sold after a buyer has been found. Inventory may require additional processing prior to sale. It is advisable to exclude reimbursement amounts from the organization’s profit from the VAT amount. Deferred expenses are not included in this group.

4. Hard-to-sell assets (A4) are non-current assets (1 asset section of the balance sheet). They are intended for use in the business activities of an organization over an extended period. Their conversion into cash encounters serious difficulties.

The first three groups of assets relate to current assets, because may constantly change during the current business period. They are more liquid than assets included in group 4.

In order to analyze the dependence on increasing maturity of liabilities, liabilities are grouped in relation to the corresponding asset groups as follows:

1. The most urgent liabilities (P1) include accounts payable, dividend payments, other short-term liabilities, loans not repaid on time;

2. Short-term liabilities (P2) represent short-term bank loans and other loans to be repaid within 12 months;

3. Long-term liabilities (P3) - long-term loans and other long-term liabilities (line 720 5 of the liabilities section of the balance sheet);

4. Constant liabilities (P4) - own funds (section 3 of the liabilities side of the balance sheet) and items in section 4 that are not included in the previous groups.

In order for equality between the amounts of assets and liabilities, grouped by degree of liquidity and maturity, to be maintained, the amount of permanent liabilities must be reduced by the amount of deferred expenses and losses.

The sum of an organization's long-term and short-term liabilities represents its external liabilities. To determine the degree of liquidity of the balance sheet, parts of the balance sheet asset that are sold by a certain date are compared with parts of the liability that must be paid by this date. If, upon comparison, it is clear that these amounts are sufficient to pay off obligations, then in this part the balance is considered liquid, and the organization is solvent, and vice versa.

The balance is considered absolutely liquid if the following inequalities are met: A1> P1; A2>P2; A3>P3; A4<П4.

If these inequalities are met, then we can say that the minimum condition for the financial stability of the organization is met. If at least one condition does not match, the balance is not absolutely liquid. A shortage of funds in one group can be compensated by a surplus in another group if it has a higher level of liquidity.

A measure of liquidity and investment attractiveness is working capital (or NWC - net working capital), which represents the excess of current assets over current liabilities. In terms of its economic content, this indicator reflects the availability of its own working capital, which is directed, first of all, to the formation of industrial reserves, i.e. stocks of materials, raw materials, work in progress and finished goods. An insufficient amount of NER for the formation of industrial reserves can lead to dependence on creditors, and ultimately to a stop in production.

Accordingly, the investment attractiveness is very low. Because Liquidity is of great importance for various counterparties of the organization, including investors, during the analysis it is necessary to carefully study the composition of current assets and current liabilities.

Current assets include:

Cash;

Short-term financial investments;

Short-term accounts receivable less provisions for bad debts;

Inventories with the exception of inventories exceeding current needs, justified by standards. Prepaid expenses in inventory are considered current assets not because they can be converted into cash, but because they represent advances for services that require current cash expenditures.

Current liabilities (liabilities) include:

Short-term loans;

Accounts payable;

In some cases, the portion of long-term debt that is due in the current period.

Thus, the solvency, liquidity of the organization and the liquidity of its balance sheet are the main criteria for assessing the financial condition of the organization.

The concepts of solvency and liquidity are very close, but the second is more capacious. Solvency depends on the degree of liquidity of the balance sheet and the enterprise. At the same time, liquidity characterizes both the current state of settlements and the future. An enterprise may be solvent at the reporting date, but at the same time have unfavorable opportunities in the future, and vice versa.

The absolute liquidity ratio (the rate of cash reserves) is determined by the ratio of cash and short-term financial investments to the total amount of short-term debts of the enterprise. It shows what portion of short-term liabilities can be repaid using available cash. The higher its value, the greater the guarantee of debt repayment. However, even with its small value, an enterprise can always be solvent if it is able to balance and synchronize the inflow and outflow of funds in terms of volume and timing. Therefore, there are no general standards or recommendations for the level of this indicator.

Kabs liquid = Kr invested + Money / KO, (1)

where Kr invest - Quick (quick) liquidity ratio - the ratio of the totality of cash, short-term financial investments and short-term receivables, payments for which are expected within 12 months after the reporting date, to the amount of short-term financial liabilities. A ratio of 0.7--1 usually satisfies. However, it may be insufficient if a large share of liquid funds consists of receivables, part of which is difficult to collect in a timely manner. In such cases, a higher ratio is required. If cash and cash equivalents (securities) occupy a significant share of current assets, then this ratio may be smaller.

Kb.l 2013 =KA-Inventories/KO=Money+Kr invested+Deb/KO (2)

(total debt coverage ratio Ktl) - the ratio of the total amount of short-term assets to the total amount of short-term liabilities; it shows the degree of coverage of current liabilities by current assets:

K1 2013 =KA/KO (3)

The excess of current assets over short-term financial liabilities provides a reserve stock to compensate for losses that an enterprise may incur when placing and liquidating all current assets other than cash. The larger this reserve, the greater the confidence of creditors that debts will be repaid. A coefficient > 2 usually satisfies.

In the Republic of Belarus, its minimum level has been established: for industrial enterprises - 1.7, agricultural enterprises - 1.5, construction organizations - 1.2, transport - 1.3, trade - 1.0, etc. If its actual value is below this level, then this is one of the grounds for declaring the enterprise insolvent.

The multiple excess of current assets over short-term liabilities allows us to conclude that the organization has a significant amount of free resources generated from its own sources. From the position of creditors, this option for forming working capital is the most preferable. From the point of view of the company's performance, a significant accumulation of inventories and diversion of funds into accounts receivable may be associated with inept asset management. As the main criteria for assessing the financial structure of the balance sheet and solvency of an enterprise, he proposes to use a limited range of indicators:

Current liquidity ratio, the calculation method for which was given above;

The coefficient of provision of own working capital, which characterizes the availability of the organization's own working capital necessary for its financial stability;

The asset coverage ratio of financial liabilities characterizes the organization’s ability to pay off its financial obligations after the sale of assets. The coefficient of provision with own working capital (Koss) is determined by the formula:

The ratio of the security of financial liabilities with assets is defined as the ratio of all (long-term and short-term) liabilities of the organization, with the exception of reserves for future expenses, to the total value of assets. The ratio of security of financial liabilities with assets (KOA) at the end of the reporting period is calculated using formula (1.3) as the ratio of liabilities for deduction to the balance sheet currency:

Thus, the solvency management system in organizations is part of the state’s financial policy. It specifies the main directions of development, the total volume of financial resources, and their effective use. A regulatory and incentive mechanism is being developed financial methods socio-economic processes. The organization's financial indicators (for example, profit, liquidity, etc.) are finally approved as the main criterion for the effectiveness of financial and economic activities.

2. ANALYSIS OF THE LEVEL OF LIQUIDITY AND SOLVENTITY OF ODO “EXPERIMENT”

The information base for analyzing the solvency and liquidity of the enterprise is the annual financial statements of ODO "Experiment" for 2014. So, having examined the theoretical foundations for analyzing the liquidity of an enterprise in the first chapter of this work, let’s move directly to this analysis using the example of a specific enterprise ODO “Experiment”.

Let us divide the balance sheet assets of Experiment ODO according to the degree of liquidity.

Table 2.1 - Structure of the balance sheet asset of ODO "Experiment" by degree of liquidity, million rubles.

Balance sheet asset group by degree of liquidity	12/31/2014	In % of total	12/31/2013	In % of total	Deviation
A 1 - the most liquid assets
A 2 - quickly realizable assets
A 3 - slowly selling assets
A 4 - hard-to-sell assets

The table shows that the most liquid assets in 2013 amounted to 22.7 million rubles, which is 78.1 million rubles more than in 2014 and amounted to 100.8 million rubles. Quickly realizable assets in 2013 amounted to 13.8 million rubles, which is 15.7 million rubles more than in 2014 and amounted to 29.5 million rubles. Slow-to-sell assets decreased by 43.2 million rubles in 2014 compared to 2013 and amounted to 15.3 million rubles. Hard-to-sell assets in 2013 amounted to 403.4 million rubles, which is 39.4 million rubles less, than in 2014 and amounted to 364 million rubles. They occupy the bulk of the balance sheet assets for both 2013 and 2014.

Table 2.2 - Structure of the liabilities side of the balance sheet of ODO "Experiment" by the degree of repayment of obligations, million rubles.

Balance sheet liability group by degree of repayment of obligations	12/31/2014	In % of total	12/31/2013	In % of total	Deviation
P 1 - most urgent obligations
P 2 - short-term liabilities
P 3 - long-term liabilities
P 4 - permanent liabilities

The table shows that the most urgent liabilities in 2013 amounted to 62.8 million rubles, which is 142.5 million rubles more than in 2014 and amounted to 205.3 million rubles. They occupy the bulk of the balance sheet liabilities for 2014. Long-term liabilities in 2013 amounted to 380.0 million rubles, and in 2014 they decreased by 192.0 million rubles and amounted to 188.0 million rubles. They occupy the largest volume in the balance sheet liabilities for 2013. Permanent liabilities as of 2013 amounted to 55.6 million rubles, and in 2014 increased by 60.7 million rubles and amounted to 116.3 million rubles.

Table 2.3 - Analysis of liquidity of the balance sheet of ODO "Experiment", million rubles.

Asset condition	Liability state

1. The most liquid assets		1. The most urgent liabilities
2. Quickly marketable assets		2. Short-term liabilities
3. Slow-moving assets		3. Long-term liabilities
4. Hard to sell assets		4. Permanent liabilities

In order to assess the liquidity of an enterprise’s balance sheet, it is necessary to compare each asset group with a corresponding liability group. It is necessary that the following inequalities be satisfied: A1>P1, A2>P2, A3>P3, A4<П4.

Based on the data in the table, let’s create inequalities by year:

2013: A1<П1, A2>P2, A3<П3, A4<П4;

2014: A1<П1, A2>P2, A3<П3, A4>P4.

As we can see, at this enterprise in 2013 some inequalities are not observed, A1<П1, говорит что у предприятия недостаточно наиболее ликвидных активов для покрытия наиболее срочных обязательств. A2><П3данное неравенство говорит о том, что в у предприятия возникли проблемы с получением денежных средств от продажи продукции. A4<П4 можно судить о минимальной финансовой стабильности предприятия, т.е. наличия у него собственных оборотных средств. В 2014 году также не соблюдаются некоторые неравенства. А1<П1, говорит что у предприятия недостаточно наиболее ликвидных активов для покрытия наиболее срочных обязательств. A2>P2 this inequality is satisfied, i.e. The organization's quickly realizable assets are greater than its current liabilities. The company will be able to become solvent when paying creditors and receiving funds from the sale of products. A3<П3 говорит о том, что в у предприятия возникли проблемы с получением денежных средств от продажи продукции. A4>P4 this means that there is no equity capital left to replenish working capital, which will have to be replenished primarily by delaying the repayment of accounts payable in the absence of equity capital. Thus, the enterprise cannot be called liquid, since three of the ratios of groups of assets and liabilities do not meet the conditions of absolute liquidity of the balance sheet (the most liquid assets are less than the most urgent liabilities; slowly realizable assets are less than long-term liabilities and hard-to-realize assets are more than permanent liabilities).

Table 2.4 - Solvency indicators

Index	Calculation formula	Meaning	Optimal value

Current ratio
Provision ratio of own working capital	SK+DO-DA/KA
Asset coverage ratio of financial liabilities
Quick ratio	Money+Kr invest+Deb/KO			K b. l. >=1
Absolute liquidity ratio	Kr invest+Money/KO			K abs>=0.2

Calculation of solvency ratios

Current ratio

K1 2013 =KA/KO=97/62.8=1.54

K1 2014 =KA/KO=147.5/205.3=0.72

Provision ratio of own working capital:

K2 2013 =SC+DO-DA/KA=57.6+380.0-403.4/97.0=0.35

K2 2014 =SC+DO-DA/KA=118.2+188.0-364.0/147.5=-0.39

Asset coverage ratio of financial liabilities:

K3 2013 =KO+DO/IB=62.8+380.0/500.4=0.88

K3 2014 =KO+DO/IB=205.3+188.0/511.5=0.77

Quick ratio:

Kb.l 2013 =KA-Inventories/KO=Money+Kr invested+Deb/KO= 22.7+0+13.8/62.8 =0.58

Kb.l 2014 =KA-Inventories/KO=Money+Kr invested+Deb/KO=100.8+29.5/205.3 =0.63

Absolute liquidity ratio:

Cubs liquidation 2013 = Kr invested + Money / KO = 22.7/62.8 = 0.36

Cubs liquidation 2014 =Kr invested+Money/KO=100.8/205.3=0.49

Based on the data in the table and the above calculations, we can conclude that K1 for 2013 was 1.54 and corresponds to the standard value >= 1.0-1.7, and as of 2014 K1 was 0.72, which does not correspond to the standard meaning. It follows from this that the degree of coverage of current liabilities by current assets is low; the enterprise is unable to cover part of the short-term debt at the expense of available funds and short-term financial investments. K2 for 2013 was 0.35, which corresponds to the standard value >=0.1-0.3, and in 2014 it was -0.39, which does not correspond to the standard value. This reduces the financial stability of the enterprise. K3 for 2013 was 0.88, and for 2014 0.77, which corresponds to the standard value<= 0,85. К быстр ликв на 2013 год составил 0,58,что не соответствует нормативному значению, а по состоянию на 2014 год составил 0,63 и также не соответствует. Кабс ликв по состоянию на 2013 год составил 0,36,что соответствует нормативному значению >0.2, and for 2014 it was 0.49, which also corresponds to the standard value. The organization is insolvent, but not bankrupt. It is necessary to take measures to restore solvency.

To improve solvency and liquidity, the following directions for improving financial and economic activities can be recommended to the enterprise OJSC Ilyinogorskoye:

Take measures to improve the quality, range and competitiveness of its services;

Search for new markets for your services;

Search for legal ways to minimize tax payments: drawing up a payment calendar;

Improving the state of accounting and reporting; formation of optimal accounting policies;

Analysis of concluded contracts for their potential tax consequences;

Carefully monitor the return of receivables and use legal procedures to recover them. If it is impossible to collect the debt, even on the basis of a court decision, the company still has the opportunity to attribute the amount of outstanding debt to reduce taxable profit, which will at least reduce payments to the budget;

Find ways to shorten the production cycle of an enterprise, for example, by reducing raw material balances;

Development of a system for providing discounts and using markups.

The value of liquidity ratios can be improved through a number of management decisions, the most effective of which are:

· Reduction of non-production costs.

· Sale of unused non-current assets.

· Attracting long-term sources of financing.

· Increased sales profitability (due to increased selling prices and reduced production costs).

Note that the value of the current ratio can be increased by paying off short-term liabilities. This method, for example, by postponing the next purchase of raw materials and materials on the eve of drawing up the balance sheet and directing temporarily freed funds to cover accounts payable, can be used to artificially inflate the level of the enterprise’s overall solvency. The immediate consequence of such an operation is a decrease in the absolute liquidity of the enterprise.

The value of the quick ratio can be improved through a number of management decisions. In addition to those already listed when describing the current ratio, you should point out:

Rationing or revision towards reduction of existing standards that determine the amount of production inventories and inventories of finished products. - Sale (even without making a profit) of unused inventory.

The value of the absolute liquidity ratio can be improved through a number of management decisions. In addition to those already listed when describing the current and quick ratio, you should point out:

Using a system of discounts to speed up the turnover of accounts receivable.

Increase in terms of payment of submitted invoices.

Dividing payments to suppliers into several stages.

To improve the financial position of an enterprise, it is necessary to direct the main forces of the enterprise to the reduction and effective management of receivables and payables.

To manage accounts receivable at OJSC Ilyinogorskoye, it is necessary to develop appropriate regulations for managing accounts receivable. Accounts receivable management must include the following mandatory procedures:

Accounting for settlements with debtors;

Analysis and ranking of receivables (by date of occurrence, by amount, by managers responsible for working with this debtor, etc.);

Regular work with current accounts receivable:

Claim work with overdue accounts receivable;

The procedure for collecting overdue receivables through the court. It is advisable to set a limit on receivables at the enterprise, if exceeded, the provision of services to the debtor should cease.

In addition, it is necessary to systematically check the payment discipline and business reputation of the company’s debtors and daily monitor the status of receivables. And as already noted, one of the most effective tools for maximizing cash flow and reducing the risk of overdue receivables is a system of penalties and fines. It is applied in case of violation of the payment terms established by the debt repayment schedule, and must be provided for in the contract. It should also be noted that in order to increase its own creditworthiness, the company must take care of its own image in business circles, namely, try to establish itself as a reliable partner who fulfills all its obligations in a timely manner. A positive credit history, participation in large projects, high quality of goods and services produced, adaptability to new management methods and technologies, influence in business and financial circles - all this will help improve the image of Ilnogorskoye OJSC, and therefore strengthen its creditworthiness.

One of the main and most radical directions for the financial recovery of an enterprise is the search for internal reserves to increase the profitability of trading activities and achieve break-even operation: improving the quality and competitiveness of goods, reducing their cost, rational use of material, labor and financial resources, reducing unproductive expenses and losses.

The main attention should be paid to the study and implementation of best practices in implementing the economy regime, material and moral incentives for workers in the struggle to save resources and reduce unproductive expenses and losses.

In special cases, it is necessary to radically revise the program for the purchase and sale of goods, logistics, labor organization and payroll, selection and placement of personnel, quality management of goods, markets for raw materials and sales markets for goods, investment and pricing policies and other issues.

CONCLUSION

Summarizing the material presented, it can be noted that analysis of the financial condition of an organization plays an important role and is necessary both for the organization itself in order to assess and forecast economic and financial activities, and for its counterparties, i.e. institutions and firms with which it enters into direct relations in the course of its functioning. These are banks, suppliers and contractors, buyers, tax authorities, insurance organizations, etc.

The purpose of analyzing the financial condition is to establish the current state of affairs and try to predict the possibility of changing the situation (if it is unsatisfactory) for the object in the future. Without a clear and reliable statement of the current situation, it is impossible to assess alternatives for the development of the object under study.

The financial condition of the organization is expressed using a system of indicators: solvency and liquidity. The calculation and analysis of these indicators makes it possible to assess the actual state of affairs of the organization, establish its real capabilities, identify deviations in its activities and outline measures to eliminate and prevent negative trends in its functioning in the future.

When writing the course work, the calculation of all considered indicators was made on the basis of digital material from the accounting and statistical reporting of ODO "Experiment". Analysis of the calculated indicators made it possible to assess the financial condition of the organization, identify the strengths and weaknesses of its activities, determine the financial capabilities of the organization and reserves for increasing the efficiency of its functioning, etc.

It should be noted that the analytical function should not occupy the last place in the activities of any business entity. The results of the organization’s economic activities directly depend on timely and high-quality analysis.

LIST OF SOURCES USED

liquidity solvency financial negotiable

1. Instructions on the procedure for calculating solvency ratios and analyzing the financial condition of business entities: resolution of the Ministry of Finance of the Republic. Belarus and the Ministry of Economy of the Republic. Belarus from December 27. 2011, No. 140/206 // National. economic newspaper. - 2012. - No. 14. - P.4-6

2. Instructions for analysis and control over the financial condition and solvency of business entities: resolution of the Ministry of Finance of the Republic. Belarus, Ministry of Economy Rep. Belarus and the Ministry of Statistics and Analysis Rep. Belarus dated May 14, 2004 No. 81/128/65 (as amended on May 5, 2008 No. 79/99/50 // Chief Accountant. - 2008. - No. 22. - P. 22 - 30.

3. Analysis of economic activity in industry: textbook. for universities / V.I. Strazhev [and others]; under general ed. IN AND. Strazheva. - 5th ed., revised. and additional - Mn.: Higher. school, 2007. - 480 p.

4. Analysis of the economic activity of an enterprise: textbook / Ermolovich L.L. [and etc.]; under general ed. L.L. Ermolovich. - Mn.: Interpressservice; Eco-perspective, 2004.-576 p.

5. Baynev, V. Problems of anti-crisis management. Multicriteria model for assessing the possibility of bankruptcy of a company / V. Baynev // Finance, accounting, audit. - 2011. - No. 5. - P.40-44.

6. Efimova, O.V. Financial analysis / O. V. Efimova. - M.: Bukhg. accounting, 2008. - P.208.

7. Kovalev, L. Financial position of the enterprise: express analysis / L. Kovalev // Nat. economic newspaper. - 2012. - No. 21. - P. 21-24.

8. Kreinina, M. N. Financial management: textbook. allowance / M. N. Kreinina. - M.: Publishing house "Business and Service", 2008. - 304 p.

9. Markaryan, E.A. Financial analysis: textbook. for universities / E. A. Markaryan, G.P. Gerasimenko.- M.: ND FBK-PRESS, 2007.- P.215.

10. Enterprise finance: textbook / L.G. Kolpina [and others]; edited by L.G. Kolpina. - Mn.: Higher. school, 2003. - 336 p.

11. Savitskaya, G. V. Analysis of the economic activity of an organization: textbook. manual for universities / G. V. Savitskaya. - 7th ed. - Minsk: New knowledge,

12. Enterprise finance: textbook / ed. Kolchina N.V. -M.: Finance, 2004. - 413 p.

13. Kozharsky, V.V. Analysis of the efficiency of capital use / V.V. Kozharsky // Economics. Finance. Control. - 2010. - No. 12. - P. 15-19.

14. Susha, G.Z. Enterprise development strategy: textbook. allowance / G. Z. Susha. - Mn.: Academy of management. under the President of the Republic Belarus, 2006.- 216 p.

15. Popov, E. M. Finance of organizations: textbook. for universities / E. M. Popov. - Minsk: Vysh.shk., 2009. - 573 p.

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Who might be in financial distress?

Difficult financial situation can occur in different groups of people; let’s consider the main options for its origin.

1. Distressed financial situation of individuals can be caused by a number of circumstances that either depend or do not depend on the individual. When a state of disaster occurs, an individual cannot “make ends meet” and pay his expenses. The poor financial situation of individuals allows them to count on support from the state, since the tasks of the state include supporting low-income citizens. The various social benefits that the state issues today are possible ways to neutralize the financial crisis at the civil level. We all know government contributions: these are unemployment benefits, child benefits, and so on.

2. Distressed financial situation of legal entities caused by economic penalties in enterprises created by the entrepreneur. The reasons for their occurrence may also be different, but unlike the similar situation for individuals, entrepreneurs can only count on state assistance in certain situations. – this is a certain activity for the purpose of making a profit, which is carried out at your own peril and risk. For this reason, the opportunity to receive assistance from the state is minimized. Financial penalties lead to a decrease in the company's solvency. This in turn leads to a decrease in confidence on the part of the banking system. All this together brings us closer to financial collapse.

3. The poor financial situation of the state. Usually the cause is high or military action. Disaster in the state's economy leads to high emigration of the population. Naturally, if there is an outflow of human resources, the state loses stability in almost all spheres of life. The state can only count on the help of other states, so the governments of different countries are actively uniting in unions: the Union of Independent States (CIS, which includes the countries of the former Soviet Union), the Union of European Countries, which is commonly called the European Union, and so on. States in unions provide support to each other, but to enter into an alliance, a state must meet certain criteria, which mostly relate to monetary policy. Today we can notice that Ukraine, which is experiencing a dire financial situation, is turning to the European Union and the United States of America for support.

These are the key possible options for financial distress. Now let's try to consider the reasons that cause such a situation, and it does not matter for what level.

Reasons for the poor financial situation

1. Military actions both within the state and at its borders reduce the economic potential of the country. This leads to an outflow of population. Also, military actions are radically restructuring the country's industry, focusing it not on meeting the needs of the majority of the population, but on ensuring an increase in defense capability. Wars weaken such important aspects of social life as agriculture and industry. To keep the country afloat, the government is taking various ways to motivate citizens. For example, in the Soviet Union the 200 movement actively developed in the revolutionary and post-revolutionary years. The Two Hundreds advocated exceeding the plan by 200 percent; this greatly increased the economic potential. In modern post-industrial society, this technique is unlikely to work effectively, since production requires a high degree of skills and abilities; simple conveyor production is not enough.

2. Rising government debt one state over others. An increase in public debt can lead the country to economic default, which will cause general financial collapse and economic depression. Oddly enough, the United States of America, which has the status of a world power, is constantly facing the threat of default, since it has become the largest debtor in the world. This was largely influenced by the military industry during the Cold War between the US and USSR blocs. Also, the current high debt of the Greek government, according to recent media reports, suggests that revolutionary actions are brewing within the state. The government of the debtor country will look for different ways to get rid of the debt. Some countries are asking for support from creditors, while others (including Greece, which was denied a request for debt forgiveness) are turning to creditor competitors for help. Debt must be paid either with financial or material assets; naturally, neither method is suitable for the government of debtor states.

3. World currency instability actively affects economic well-being when it is not secured by assets that do not change in value. As you know, the American dollar was backed by gold for a long time; as long as it remained, a stable state was observed in the US economy. In 1971, American President Nixon, without the consent of Congress, deprived the dollar of its gold backing. On the one hand, this was the right decision, because the country was under threat of a new Great Depression, on the other hand, the dollar, deprived of gold backing, became more susceptible to inflation. The depreciation of the currency causes the weakening of the state. Why did it start happening? Because the government was able to print in unlimited quantities - the dollar is not backed by gold, therefore, it is worth nothing. Inflation turns into hyperinflation, the latter gives rise to a disastrous financial situation in the state. The stability of the world currency can also be influenced by external economic factors. For example, the value of the ruble on the world foreign exchange market largely depends on the political climate and such indicators as the price of . Depending on changes in quotes of other currencies, the ruble quote will also change.

4. Population outflow. In the first paragraph, we mentioned that the outflow of population will also negatively affect the country’s economy. It is worth highlighting this point separately, because the outflow can be caused not only by military actions, but also by the economic attractiveness of one state over another. We can observe, for example, active migration of Roma from Romania to Europe or Russia. In foreign countries there are more stable economic conditions, opportunities for good earnings, and so on. The fewer people stay in the country, the lower its economic potential will be, since population is the basis of the economy. The population pays taxes, performs work at private and state enterprises, military units are formed from the population, and so on. States are trying to create economic programs that would not only keep the indigenous population in the country, but also attract emigrants from abroad.

5. Political instability. This also includes the political incompetence of the authorities. Constant changes in government will lead to changes in the legislative framework, and this will lead to a constant restructuring of the economy. If communism and economics were regularly changed in Russia, the country simply could not adapt to the changing conditions of economic development, the crisis would enter a protracted phase, and the disastrous economic situation would simply become the cause of default.

These are the main reasons for the poor economic situation. The reasons can be attributed not only to the state, but also to its key components, that is, entrepreneurs and individuals. They will also have a negative impact on them, and if economic instability develops in the “lower classes,” that is, among individuals, entrepreneurs and the government will also find themselves in a situation of economic instability.

Consequences of the disastrous financial situation in the state

We have already examined several possible consequences of the disastrous financial situation in the state; we will touch on this point in a little more detail. The consequences for individuals and legal entities are extremely clear - financial collapse in the absence of proper support measures. Everything in the state is more complex and diverse.

1. Mass outflow of population. Economic instability caused by financial distress will lead to mass exodus. It is impossible to keep people by force; you can only keep the male population by making them liable for military service, if this does not contradict the constitution of the state. In other cases, people will try to leave an economically unstable country and move to more reliable areas.

2. Inflation. Financial distress will definitely weaken the national currency. If the currency is interstate, for example, the dollar or the euro, then the fall does not have to be or be high. But national currencies such as rubles or hryvnia will in any case fall in price during an economic crisis. After authorization by the Russian Federation by the countries of the European Union and the United States of America, the price sharply decreased relative to the dollar: previously, the dollar cost about 30 rubles, but after authorization it sharply rose to 50 rubles. The situation is similar with the euro. Inflation will negatively impact industry as well as interstate trade. If the state focuses the population on self-sufficiency: active development of agriculture and other measures, one can count on some stability and balance in the economy.

3. Depletion of foreign exchange reserves and reduction of economic capital. With the outflow of population, there will also be an outflow of capital to foreign countries, as people will take money with them. The workforce will be smaller, fewer taxes will be received, which will lead to a decrease in funds in the state treasury. To overcome these consequences, the government of the country will try to reduce migration abroad. Since the income of the banking system comes from the loan payments that people make, with the outflow of the population, these incomes will decrease. If banks begin to lose their income, the state will simply suffer: the economy will burst because its expenses will exceed its income.

One can cite a number of other negative consequences of the disastrous economic situation in the state. There are, however, positive aspects: a poor financial situation can be used for good in several ways.

Positive Impact of Financial Distress

The first positive aspect of the disastrous financial situation is the restructuring of industry and the creation of a new economic course. This is due to changes in economic cycles and the development of innovative solutions for activities. During periods of crisis, the competitiveness of various enterprises weakens, as a result of which new enterprises have the opportunity to enter. New businesses introduce new technological developments that help strengthen the economy. Thus, during periods of economic crises, conveyor production was born, the first machines to facilitate the work of workers, and so on. Innovations of this kind will allow the economy to rise in its development even higher than in the pre-crisis period.

This is one positive aspect of financial distress. The other is attracting investment. All investors know that during a disaster, the value of enterprises falls, because entrepreneurs are ready to receive even a minimum of money to continue working. This is a very convenient time to invest money. If an investor has enough financial experience, he will be able to wisely invest money in a cheap one and earn money later when the business rises in price. American entrepreneur Robert Kiyosaki wrote that he was actively purchasing real estate during the years when the US real estate market was falling in price. To date, all the objects he purchased have increased in price, and he has returned the money he spent. Many real estate assets remain unsold and generate income in the form of rent. This is an excellent example of the positive effects of financial distress.

If we consider the example of a state, we can see that the government of a distressed state is ready to attract outside investors. Example: Soros’s visit to Ukraine with the aim of investing capital in Ukrainian industry. You can get by with minimal investments, since the country is going through a period of civil war, and eventually get a sufficient amount of profit. Of course, you need a lot of financial knowledge and experience, otherwise you can easily go broke and lose everything.

How to overcome a difficult financial situation?

What steps need to be taken to return to the economic stability that existed in the pre-crisis period?

1. . Changing this element can change a person’s entire financial life, so you need to pay special attention to it. What is most people's financial plan? The majority simply do not have a plan; their main goal in life is to buy, that is, to buy houses for personal residence, cars, luxury goods, and so on. You have to pay taxes for all purchased liabilities: real estate tax, transport tax, luxury tax, and so on. As a result, expenses exceed income, and this, as we already wrote at the beginning of the text, leads to a disastrous financial situation. What needs to be changed? You need to buy assets instead of liabilities. You shouldn’t think that buying assets necessarily requires a lot of money. Of course, it is profitable to buy something like real estate or something similar, but you can start with smaller investments. For example, on the Internet today you can buy and sell articles, create your own paid courses, and so on. Many people think that it is difficult because people do not try to acquire the necessary knowledge. In fact, everything is simpler than it seems; there are plenty of trainings and instructions on the Internet. By increasing the number of assets, you will increase your income, while expenses, in the absence of an increase in liabilities, will remain the same. This will allow you to once again provide for yourself at a normal level and even reach a level of financial independence. You can also try reducing the number of liabilities to speed up this process.

2. Emigration to another state. You can emigrate from one country to another, with better financial conditions for life. Of course, this will be associated with a number of difficulties, for example, learning the language, getting used to the local culture, and so on. However, by moving to another country, you can open up more new opportunities for yourself financially.

3. Mastering a new profession. Perhaps, having mastered your new professional activity, you will be able to earn more than you earned before. At the moment, you can get used to freelancing without any particular difficulties - remote work on the Internet, which will bring you additional income and a very good one. If you have some free time, why not try something new to not only get out of financial distress, but also prevent it in the future? Of course, simply increasing your working hours is not the most productive way out of the crisis; try to turn your income not into active, but into passive, then achieving financial prosperity will be much easier.

We examined the main issues related to the disastrous financial situation: the causes that cause it, the consequences of the situation that has arisen, the positive and negative aspects of the financial disaster, and ways to overcome it. In general, financial disasters occur periodically in the economy, because economic activity is characterized by cyclicality associated with the obsolescence of some technologies and the birth of others, economic restructuring. You just need to be able to correctly approach the situation that arises, be able to analyze it, find not only the disadvantages, but also the advantages. Any disastrous financial situation can be overcome and economic growth can be achieved again, but this requires financial savvy and cold-blooded economic thinking, which are not inherent in all people.

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Indicators that determine the financial position of the enterprise. Critical financial situation

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