Financial management. Why study financial management? General and financial management

1. Calculation of the financial cycle.

2. Coefficients of autonomy and bankruptcy forecast..

3. Analysis of the movement and forecasting of cash flow.

4.Indicators of profitability of the enterprise.

5a. Analysis and management of inventories.

5b. Types of financial stability of the enterprise.

6. Analysis and management of receivables.

7.Coefficients of current, urgent and absolute liquidity.

8. Basic theories of capital structure (traditional and Modigliani-Miller theory).

9.Coefficients of accounts receivable and accounts payable at the enterprise.

10.Evaluation of ordinary and preferred shares.

11.Formirovanie cash management policy of the enterprise.

12.Methods for evaluating investment projects.

13. Problems of intra-company financial planning.

14. Classification of financial instruments and markets.

15. Indicators of the property status of the organization.

16. The basic concept of the price of capital.

17. The structure of the balance sheet and its characteristics.

18. Valuation of bonds.

19. Problems of formation and renewal of fixed capital in the organization

20.Method of calculating the critical volume of sales.

21.Tax policy of the enterprise.

22. Interest rates and methods of their calculation.

23.Sources of the formation of own working capital.

24. Methods for predicting the possible bankruptcy of an enterprise.

25.Financial reporting and analysis financial condition enterprises.

26.Leveridzh and its role in financial management.

27. System of indicators of enterprise profitability.

28. Information support of financial management.

29. Estimation of balance liquidity.

30.Financial planning at the enterprise.

31. Stocks of the enterprise and their structure.

32. Essence of planning cash flows.

33. Coefficients of security with own working capital, bankruptcy forecast.

34.Goals and objectives of financial management.

35. profit and its types.

36. The essence of working capital management. The importance of cash management.

37. Types of financial stability of enterprises.

38. Choice of working capital management policy.

39.Coefficients of autonomy, the ratio of own and borrowed funds, maneuverability

40. Place and role of finance in social production.

41. Break-even point.

42.Working capital: basic concepts.

43 Liquidity ratios: current, urgent and absolute

44. Forecasting solvency indicators.

45. Own and borrowed resources of the enterprise.

46. ​​Calculation of the creditworthiness index.

47. Essence of rationing working capital.

Calculation of the financial cycle.

Working capital in the process of its use can be in different forms. Each enterprise buys raw materials, processes them, manufactures finished products and sells them on credit. We can say that the funds go through a full operating cycle.

The cash flow during the operating cycle goes through the following main stages, consistently changing its forms:

– funds are used to purchase raw materials and materials;

- stocks of raw materials, materials as a result of direct production activities are converted into a stock of finished products;

- stocks of finished products are sold to customers and before they are paid are converted into receivables;

- Collected (paid) receivables are again converted into cash, some of which can be stored in the form of highly liquid short-term financial investments until their production demand.

The production cycle begins with the receipt of raw materials and materials at the warehouse of the enterprise and ends with the shipment of finished products to the buyer.

The duration of the production cycle of a commercial organization is determined by the following formula:

Ppc \u003d Osm + Onzp + Ogp, where Ppc is the duration of the production cycle in days;

Osm - the duration of the turnover of the average stock of raw materials, materials and semi-finished products in days; Onzp - the duration of the turnover of the average volume of work in progress in days;

Ogp - the duration of the turnover of the average stock of finished products in days.

The financial cycle begins from the moment the supplier pays for the purchased raw materials and materials (payment of accounts payable) and ends at the moment of receipt of money from buyers for shipped products (payment of accounts receivable).

The duration of the financial cycle is determined as follows:

Ofc \u003d Ppc - Okz \u003d Omz + Odz - Okz, where Okz - average balances of accounts payable / production costs; Omz - average inventory balances / production costs;

Oz - average balances of subsidiaries / sales proceeds.

The operating cycle characterizes the total time during which financial resources are in stocks and receivables.

The duration of the operating cycle is calculated by the formula

Pots \u003d Ppc + Odz.

Calculation of the financial cycle is the basis of planning and cash management. The enterprise must constantly strive to reduce the production and financial cycle. To do this, they can use various measures: rationing of working capital; reducing the cost of production; optimization of production stocks; optimization of the delivery of raw materials and materials; optimization of delivery and storage of finished products; receivables management; cash management; reduction of the production cycle; reduced need for inventory; effective pricing policy; application of a logical approach, etc.

The choice of an option for reducing the production and financial cycles is made on the basis of a comparison of the effectiveness of each option. Reducing the duration of these cycles reduces the need for working capital.

Autonomy coefficients and bankruptcy forecast.

autonomy coefficient.

The autonomy coefficient shows the share of own capital in the liability of the company's balance sheet, i.e. the degree of independence of the enterprise from borrowed funds. A high autonomy ratio reflects minimal financial risk and good opportunities to attract additional funds from outside. The growth of this coefficient indicates an increase in the independence of the enterprise. Theoretically, the normative value of the coefficient should be equal to or greater than 0.5 (50%). This means that all obligations of the enterprise can be covered by its own funds. The growth of the coefficient in the general case indicates an increase in the independence of the enterprise.

Bankruptcy forecast coefficient (Kpb) is calculated by the formula: Kpb = (Znds + NLA - P5) / WB, where Znds - stocks and VAT; NLA - the most liquid assets; P5 - short-term liabilities; VB - balance currency.

The ratio shows the ability of the enterprise to pay off its short-term obligations, subject to a favorable sale of reserves. The higher the value of the indicator, the lower the risk of bankruptcy.

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Short Course in Financial Management

1. The concept, goals and objectives of financial management

1. The concept of management (eng. management– management-1) means the process of organization management, planning and control and is used in almost all areas of the organization. To fulfill its tasks, the head of the organization must use technical and financial means, as well as human potential. The manager must carry out key species management activities: planning, building organizational relationships, motivation and control, in general, representing the practice of management.

All management goals are reduced to the survival of the organization and the preservation of its place in the market for a long time. The general goals of management imply the development of the organization as a whole and are focused on the long term. Specific management objectives are developed within the framework of the general objectives for the main activities of the organization.

The main goal of management– achievement and maintenance of harmony in the development and functioning of the organization.

2. There are production, financial, personnel, innovative types management.

Financial management is a system economic management production, the functioning of which is aimed at achieving common goals of management.

The subject of financial management- economic, organizational, legal and social issues arising in the process of managing financial relations at enterprises (in organizations, commercial structures).

There are two subsystems of financial management: managed (object) and control subsystem (subject). Control object in financial management - a set of conditions for the existence of money circulation, the circulation of value, the movement of financial resources.

Subjects of management include organs government controlled, financial and tax authorities, banks, insurance authorities, etc. The main subject of management- owner.

There are the following main functions of the financial management object: organization of money circulation; supply of financial resources and investment instruments; provision of fixed and working capital; organization of financial work.

It is customary to single out the following main functions of the subject of financial management: analysis of the financial position on the financial statements to adjust existing business models; determination of the necessary volumes and schemes for financing the needs of the enterprise (organization, commercial structure); ensuring sufficient solvency for timely payments; identifying opportunities to improve performance.

3. Financial management includes strategy and tactics. Under strategy refers to the general direction and method of using funds to achieve long-term goals, under tactics- specific methods and techniques to achieve the goal in a short period of time under certain conditions.

4. There are the following main sections of financial management:

☝ diagnostics of the financial condition;

☝ management of short-term financial resources;

☝ managing the investment of long-term financial resources;

☝ analysis of possible risks.

To the necessary conditions for the functioning of financial management relate entrepreneurial activity; self-financing; market pricing; labor market; capital market; state regulation of enterprises, based on the system of market legislation.

4. The following main goals of financial management: profit maximization; increase in income of your own enterprise (organization, commercial structure); growth in the market value of shares; achieving stable liquidity of assets.

The main goal of financial management– ensuring maximization market value enterprise, which corresponds to the ultimate financial interests of its owners.

In the main financial management tasks includes: the formation of the required amount of financial resources; effective use of the formed volume of financial resources; optimization of the cash flow of the enterprise (organization); profit maximization; minimization of the level of financial risk and constant financial balance of the enterprise.

5. The ratio of own and borrowed capital in the structure of the sources of the enterprise (organization, commercial structure) determines the final financial results of its activities (the optimal ratio in turnover is 50: 50%). Many organizations prefer to use only their own resources. However, it has been economically proven that it is advisable to attract borrowed sources provided that they pay off, when the use will increase the profitability of own funds.

For the effective use of the formed volume of financial resources, it is necessary to establish proportionality in their use for the purposes of production, economic and social development organization, payment of the required level of income on invested capital to the owners of the enterprise (organization, commercial structure).

Optimization of the cash flow of the enterprise is solved by effective management cash flows of the organization in the process of cash turnover in order to minimize the average balance of free cash assets.

Profit may be one of the goals of the enterprise, while its size must be adequate to the level of financial risk. main goal activities modern enterprise must be its value.

Minimizing the level of financial risk is one of the main goals of an enterprise (organization, commercial structure). The connection between risk and profit makes it necessary to constantly consider them as interrelated concepts.

The constant financial balance of the enterprise, i.e. balance, should be achieved by maintaining a high level of financial stability and solvency, the formation of an optimal capital and asset structure, and a sufficient level of self-financing of the investment needs of the enterprise.

2. Basic concepts and principles of financial management

1. Financial management is based on a number of interrelated fundamental concepts developed within the framework of the theory of finance. concept (lat. conceptio- understanding, system) is a certain way of understanding and interpreting a phenomenon.

With the help of a concept or a system of concepts, the main point of view on a given phenomenon is expressed, some constructivist frameworks are set that determine the essence and directions of development of this phenomenon.

There are the following main financial management concepts: cash flows; trade-off between risk and return; current value; time value; asymmetric information; opportunity cost; temporary unlimited functioning of an economic entity.

2. Main content cash flow concepts make up the issues of attracting cash flows, identification of cash flow, its duration and type; assessment of the factors that determine the magnitude of its elements; choice of discount factor; assessment of the risk associated with this flow.

The concept of trade-off between risk and return is based on the fact that earning any income in business always involves risk. The relationship between these interrelated characteristics is directly proportional: the higher the required or expected return, the higher the degree of risk associated with the possible non-receipt of this return.

Present value concept describes the patterns of business activity of the enterprise and explains the mechanism of capital increment. Every day, an entrepreneur is forced to manage many transactions for the sale of goods (products), services, investment funds. In this regard, the manager needs to determine how expedient it is to perform these operations, whether they will be effective.

The concept of time value argues that the currency available today is not equivalent to the currency available some time later. This is due to the effect of inflation, the risk of not receiving the expected amount and turnover.

The concept of asymmetric information is based on the fact that certain categories of persons may have information that is inaccessible to all market participants equally. In this case, one speaks of the presence of asymmetric information.

Opportunity cost concept proceeds from the fact that the adoption of any decision of a financial nature in the vast majority of cases is associated with the rejection of some alternative option. The concept of opportunity costs is especially pronounced in the organization of management control systems. Any control system costs certain costs, while the lack of systematic control can lead to much more serious financial losses.

The concept of temporary unlimited functioning of an economic entity claims that a company, once established, will last forever. This concept is, in a certain sense, conditional and is applicable not to a specific enterprise, but to the mechanism of economic development through the creation of independent, competing firms.

3. In modern management practice, the following main principles of financial management:

☝ priority of the strategic goals of the development of the enterprise (organization, commercial structure);

☝ connection with the general enterprise management system;

☝ obligatory selection in financial management financial and investment decisions;

☝ building and maintaining the financial structure of the enterprise;

☝ separate cash flow and profit management;

☝ harmonious combination of profitability of the enterprise and increase in liquidity;

☝ variability and complex nature of the formation of management decisions;

☝ High control dynamism.

4. Based on principle of priority of strategic goals of enterprise development even projects of managerial decisions in the field of financial management of the current period that are highly effective from an economic point of view should be rejected if they conflict with the strategic directions of the enterprise's development and destroy the economic basis for the formation of its own financial resources.

The principle of communication with the overall enterprise management system means that financial management covers issues of all levels of management and is directly related to operational, innovative, strategic, investment, anti-crisis management, personnel management and some other types of functional management.

The principle of mandatory allocation in financial management of financial and investment decisions states that financial solutions work to find financial resources. Investment decisions answer the question of where and how much money should be invested.

The principle of building and observing the financial structure implies that in the activities of the enterprise it is possible to distinguish structures of a different nature and purpose, but financial structure The enterprise is formed by its main activity.

According to the principle of separate management of cash flow and profit cash flow is not equal to profit.

Cash flow is the movement of funds in real time.

Profitability and liquidity are interrelated concepts, but the relationship between them can be inversely proportional: this is how the principle of a harmonious combination of profitability and increasing the liquidity of the enterprise(organization, commercial structure).

5. All activities of the enterprise are the result of making decisions that are different in nature and goals, but interconnected in content, in the field of the formation, distribution and use of financial resources and the organization of the enterprise's cash flow. These decisions are closely interrelated and have a direct or indirect impact on the results of its financial activities. This is the action the principle of variability and the complex nature of the formation of managerial decisions.

management, according to principle of dynamism should be appropriate and efficient. Management decisions must be taken in a short time, since the external and internal environment of the enterprise is constantly changing.

3. Basic functions and methods of financial management

1. The functions of financial management determine the formation of the structure control system. As the main types of financial management functions, the functions of the object and subject of management are distinguished.

To functions of the control object include: organization of money circulation, supply of financial resources and investment instruments, organization of financial work, etc.

Functions of the subject of management sequentially consist of collecting, systematizing, transmitting, storing information, developing and making a decision, transforming it into a team.

These include planning, forecasting or foresight, organization, regulation, coordination, stimulation, control.

2. financial planning as a management function, it covers the entire range of measures for the development and implementation of planned targets in practice.

Forecasting in financial management - development for the long term of changes in the financial condition of the object as a whole and its various parts. Forecasting, unlike planning, does not set the task of directly implementing the developed forecasts in practice. These forecasts represent a prediction of the corresponding changes.

Organization function- creation of management bodies, building the structure of the management apparatus, establishing the relationship between management departments, developing norms, standards, methods, etc.

Regulation in financial management - the impact on the management object, through which the state of stability of the financial system is achieved in the event of a deviation from the specified parameters.

Coordination– coordination of work of all parts of the management system, management apparatus and specialists. Coordination ensures the unity of relations between the object of management, the subject of management, the management apparatus and the individual employee.

Stimulation in financial management is expressed in the motivation of employees financial service interest in the results of their work. Through stimulation, the distribution of material and spiritual values ​​is managed depending on the quantity and quality of labor expended.

The control in financial management is reduced to checking the organization of financial work and the implementation of financial plans. Monitoring collects usage information financial resources and the financial condition of the object, changes are made to financial programs, additional reserves and opportunities are revealed.

3. K basic methods of financial management include forecasting, planning, insurance, self-financing and lending.

The practice of modern financial management includes non-formalized methods of expert assessments, scenarios, comparisons, building systems of indicators and analytical tables, morphological.

These methods are based on the description of analytical procedures and do not suggest the use of strict analytical dependencies.

The formalized methods of financial management are based on strict formalized analytical dependencies.

4. In the practice of financial management, the following main groups of formalized methods are distinguished:

☝ elementary methods of factor analysis used to assess and predict the financial condition of an enterprise (organization, commercial structure), identify the main factors for its improvement (methods of chain substitutions, arithmetic differences, balance, highlighting the isolated influence of factors, percentage numbers, differential, logarithmic, integral, simple and compound interest);

☝ traditional methods of economic statistics (methods of average and relative values, grouping, graphical, index, elementary methods of processing time series);

☝ mathematical and statistical methods for studying relationships used in calculating various stock market indicators, predicting possible bankruptcy (correlation analysis, regression analysis, analysis of variance, principal component analysis, covariance analysis, cluster analysis, etc.);

☝ methods of economic cybernetics and optimal programming (methods system analysis, machine simulation; linear, non-linear, dynamic, convex programming, etc.); econometric methods based on the postulates of econometrics (matrix methods, harmonic analysis, spectral analysis, methods of the theory production functions, methods of the theory of input-output balance).

5. When conducting financial analysis, the following are used main methods of researching financial reports:

☝ Horizontal (temporal) analysis, meaning comparison of each reporting position with the previous period;

☝ vertical (structural), i.e. revealing the impact of each reporting position on the result as a whole;

☝ comparative (spatial) - comparison of summary indicators of the reporting of an enterprise (organization, commercial structure) with similar indicators of competitors, on-farm analysis structural divisions enterprises (organizations, commercial structures);

☝ factorial - analysis of the influence of individual factors (reasons) on the performance indicator using deterministic or stochastic methods of research;

☝ relative indicators (ratios) is based on the calculation of the relationship between the individual positions of financial statements in order to determine the relationship of indicators.

4. Primary and derivative financial instruments

1. Carrying out operations on financial market, the company chooses the appropriate financial instruments for their implementation. Financial instruments are a variety of circulating financial documents that have a monetary value, with the help of which operations are carried out in the financial market.

financial instrument- a contract under which there is a simultaneous increase in the financial assets of one enterprise (organization, commercial structure) and financial liabilities of a debt or equity nature of another enterprise (organization, commercial structure).

There are derivative and primary financial instruments represented by varieties valuable papers.

2. It is customary to single out the following main financial management tools: budgeting; the financial analysis; attraction of borrowed funds; placement of free funds; leverage; investments; issue of capital management; trust operations; factoring; leasing; insurance.

Budgeting– technology of planning, accounting and control of money and financial results. The financial analysis - obtaining a small number of key 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, in settlements with debtors and creditors. Management of borrowing funds – rational management of attraction of borrowed funds. Free Funds Management- the use of direct and portfolio investments, commercial loans in order to obtain additional profit. Leverage- the process of asset management, aimed at increasing profits. Investment management- investment management, carried out through the formation of an investment portfolio. Issue of capital management– capital flow management: cash flow and portfolio management. Trust Operations- trust operations of banks, financial companies, investment funds for managing the client's property and performing other services in the interests and on behalf of the client as a trustee. Factoring- a type of trade and commission transaction related to lending to working capital (collecting the buyer's receivables; providing him with a short-term loan; releasing him from credit risks on operations). Leasing- a form of long-term lease. Insurance- relations to protect the property interests of business entities and citizens in the event of certain events at the expense of monetary funds formed from the insurance premiums they pay.

3. Capital can exist in monetary, productive and commodity forms, securities can also be considered a form of existence of capital.

security paper- a financial document certifying the property right or the ratio of the loan of the owner of the document to the person who issued such a document (issuer).

Stock- equity securities confirming the right of their owner to participate in the management of a business company, the distribution of the latter's profits and the receipt of a share of property proportional to its contribution to authorized capital. Bonds- securities that confirm the obligation of the issuer to reimburse the owners of their nominal value within a certain period of time with the payment of a fixed percentage, unless otherwise provided by the terms of the bond issue. Treasury bills- a type of government securities that are issued by the Ministry of Finance of Russia and are used as a means of payment for the current debt of the federal budget to enterprises and industries. bill of exchange- a monetary obligation of the debtor of a strictly established form, giving its owner the unconditional right to demand from the debtor or the acceptor the payment of the amount specified in it upon the due date. Check- a monetary document drawn up in the form prescribed by law, containing an order from the owner of the personal account who issued the check to pay the owner of the latter the amount of money indicated in it. Deposit certificate- a written certificate of a credit institution (issuing bank) on the deposit of funds, certifying the owner's right to receive the amount of the deposit and interest on it after the expiration of the established period. Unlike deposit savings certificate intended for individuals.

4. Derivative financial assets arose as a result of the development of traditional financial relations, when, as a result of financial transactions, not the asset itself is acquired, but the right to acquire it.

Hedging- a way to compensate for possible losses from the occurrence of certain financial risks by creating counter currency, commercial credit and other claims and obligations.

Based on the derivative financial instrument there is always some underlying asset (security, commodity, etc.). The price of a derivative financial instrument, usually determined based on the price of the underlying asset.

The most common hedging techniques include forward and futures contracts, swaps, options, repos, and warrants.

forward contract– an agreement on the sale and purchase of a commodity or financial instrument with an obligation to deliver and settle in the future.

Option unlike futures and forward contracts, it does not provide for the mandatory sale or purchase of the underlying asset, which, under unfavorable conditions (erroneous forecasts, changes in the general market situation, etc.), can lead to direct or indirect losses of one of the parties.

Futures contract (futures)- a type of securities aimed at gaining from price changes.

Swap- an agreement between two entities regarding the exchange of liabilities or assets in order to improve their structure, reduce risks and costs. A swap simplifies the settlement mechanisms between participants in a business transaction. REPO operations(securities repurchase agreement) - an agreement on borrowing securities under a certain guarantee of cash or funds against securities.

Share warrants- securities that give its owner the right to buy a certain number of shares of a given company within a certain time at a fixed price.

11. Methods of management of the financial stability of the pre-tion.

Financial condition (F.S.) is a complex concept that depends on many factors and is characterized by a system of indicators reflecting the availability and placement of funds, real and potential financial opportunities. The main indicators characterizing the F.S. pred-tiya, yavl. : security with own working capital and their safety; the state of normalized stocks of material assets; the effectiveness of the use of bank credit and its material support; assessment of the stability of the solvency of the enterprise. Factor Analysis that determine the financial condition, helps to identify reserves and increase production efficiency. F.S. depends on all aspects of the activities of enterprises: on the implementation of production plans, reducing the cost of production and increasing profits, increasing production efficiency, as well as on factors operating in the field of circulation and related to the organization of the circulation of commodity and monetary funds - improving relationships with suppliers of raw materials and materials, buyers of products, improving the processes of implementation and calculations In the analysis, it is necessary to identify the causes of the unstable state of the enterprise and outline ways to improve it. The stability of the financial position of the enterprise largely depends on the appropriateness and correctness of investing financial resources in assets. The most general idea of ​​the qualitative changes that have taken place in the structure of funds and their sources, as well as the dynamics of these changes, can be obtained using a vertical and horizontal analysis of reporting. Vertical analysis shows the structure of the enterprise's funds and their sources, the need and expediency of this analysis is: - the transition to relative indicators allows for inter-farm comparisons of the economic potential and performance of enterprises that differ in the amount of resources used; relative indicators smooth out to a certain extent Negative influence inflationary processes that can significantly distort the absolute figures of financial statements. Horizontal analysis of reporting consists in the construction of one or more analytical tables in which absolute indicators are supplemented by relative growth (decrease) rates. The degree of aggregation of indicators is determined by the analyst, as a rule, the basic growth rates for a number of years (adjacent periods) are taken, which makes it possible to analyze not only changes in individual indicators, but also to predict their values. An important group of indicators characterizing the financial condition of the enterprise are liquidity indicators - they characterize the ability of the enterprise to repay its short-term obligations at the expense of its current assets. Among the liquidity indicators, the following indicators are calculated: 1. Absolute liquidity ratio - showing what part of the current debt can be repaid at the expense of cash and marketable securities (norm 20-30%). 2. Coefficient of urgent liquidity - showing what part of the current debt can be repaid not only at the expense of cash and marketable securities, but also the expected proceeds from debtors (norm 70-80%). 3.Coefficient of general liquidity - allows you to establish the extent to which current assets cover short-term liabilities (norm 200-250%). 4. Working capital - indicates the excess of current assets over short-term liabilities, the general liquidity of the enterprise. 5. Coefficient of liquidity of material values ​​- shows to what extent material values ​​(stocks and expenses) cover short-term obligations. 6. Coefficient of liquidity of means in calculations - shows to what extent expected receipts from debtors will be used for repayment of short-term obligations. 7. The coefficient of the ratio of accounts receivable and accounts payable - shows the amount of accounts payable per 1 hryvnia. accounts receivable. 8. Agility coefficient - shows what part of own funds is invested in the most liquid assets (norm >= 0.5). Solvency characterizes the ability of the enterprise to make regular payments and fulfill monetary obligations at the expense of cash, as well as easily mobilized assets. Among the indicators of solvency, the following are calculated: 1. Coefficient of economic independence (autonomy) - characterizes the part of own funds in the total value of property (> 0.5). 2. Funding ratio - shows what part of the enterprise's activities is financed by its own funds (> 1). 3. Debt ratio - shows what part of the enterprise's activities is financed by borrowed funds (<1). 4.Коэффициент обеспеченности запасов и затрат собственными средствами - показывает, какая часть материальных ценностей покрывается за счет собственных средств (>0.8). 5.Security ratio inventory- shows what part of the inventory is covered by own funds (> 0.5). 6. Working capital ratio - shows what part of working capital is covered by own funds (> 0.5). The final conclusion about the financial condition of the enterprise can only be made after calculating the general indicators of the financial stability of the enterprise characterizing the availability of resources from the enterprise, as well as their adequacy for the formation of reserves and costs. When assessing the financial condition, it should be taken into account that: 1. If E1, E2, E3 > 0 then the enterprise has absolute financial solvency; 2.If E1< 0, Е2 >0, E3 > 0, then normal; 3.If E1< 0, Е2 < 0, Е3 >0, then an unstable financial situation; 4.If E1< 0, Е2 < 0, Е3 < 0, то кризисное положение,Е1 излишек (недостаток) собственных оборотных средств для формирования запасов и затрат; Е2 излишек (недостаток) собственных оборотных, долгосрочных заёмных средств для формирования запасов и затрат; Е3 излишек (недостаток) собственных оборотных, долгосрочных и краткосрочных заёмных средств для формирования запасов и затрат.

Topic 6. Financial planning and forecasting

Question 1. Strategic, long-term and short-term financial planning

Kreinina M.N. Financial management: Proc. settlement - M .: Delo and Service, 1998. - 304 p., P. 195-212.

9.1. Planning of income and expenses of the enterprise

Financial planning covers the most important aspects of the enterprise; it provides the necessary preliminary control over the formation and use of material, labor and financial resources, creates the necessary conditions for improving the financial condition of the enterprise.

Financial planning at the enterprise is interconnected with planning economic activity and is built on the basis of other indicators of the plan (volume of production and sales, cost estimates for production, capital investment plan, etc.). However, drafting financial plan is not a simple arithmetic conversion of production indicators into financial indicators.

In the process of drafting a financial plan, a critical approach to indicators is carried out production plan, on-farm reserves not taken into account in them are identified and used, methods are found for more efficient use of the production potential of the enterprise, more rational use of material and monetary resources, increasing the consumer properties of products, etc.

In the process of developing a financial plan, the following are determined: the costs of products sold, sales proceeds, cash savings, depreciation, the volume and sources of financing of investments planned for the planned period, the need for working capital and sources of its coverage, the distribution and use of profits, relationships with the budget, extrabudgetary funds, banks.

Financial planning at the enterprise has the following target orientation:

1. Providing financial resources and funds for the activities of the enterprise.

2. Increasing profits from core activities and other activities, if any.

3. Organization of financial relationships with the budget of extra-budgetary funds, banks, creditors and debtors.

4. Ensuring a real balance of planned income and expenses.

5. Ensuring the solvency and financial stability of the enterprise.

The traditional form of a financial plan is the balance of income and expenses. The work on drawing up a financial plan is carried out in several stages:

the first stage is an assessment of the fulfillment of the financial plan for the previous period;

the second stage - consideration of the projected production indicators on the basis of which the financial plan will be drawn up;

the third stage is the development of a draft financial plan.

In order to be more efficient and take into account inflation, it is advisable to draw up a balance of income and expenses by quarters of the planned year.

To draw up a balance of income and expenses, it is necessary to have the following calculations as a base: sales proceeds; profit and directions of its spending; needs for own working capital; the amount and use of depreciation; sizes and directions of use of the repair fund, etc.

The balance of income and expenses can be drawn up in the context of the following items.

I. Income and receipts.

1. Revenue from the sale of products (works, services)

including: 1.1. Profit from sale.

2. Income from non-operating transactions.

3. Other operating income.

4. Depreciation.

5. Repair fund.

6. Funds deducted from the cost of production:

6.1. To pay taxes and other obligatory payments attributable to cost.

6.2. To pay interest on loans.

7. Growth of sustainable liabilities.

8. Surplus working capital at the beginning of the planning period.

9. Income from the initial issue of shares.

10. Other income.

Total income and receipts.

11. Expenses and deductions.

1. Costs for sold products and services at full planned cost, including losses from sales.

2. Value added tax paid to suppliers.

3. Capital investments.

4. The cost of repairing fixed assets.

5. Deductions from profits for accumulation and consumption.

6. Rent.

7. Contributions to the reserve and other special funds.

8. Other operating expenses.

9. Other non-operating expenses.

Total expenses and deductions.

III. Relations with the budget, off-budget funds and banks.

1. Income tax.

2. Value added tax.

3. Property tax.

4. Other taxes included in the cost and paid out of financial results.

5. Payments to off-budget funds.

6. Repayment of long-term bank loans.

7. Payment of interest on loans.

Total payments.

1. Income and receipts of funds.

2. Expenses, deductions and payments.

The balance of income and expenses is formed on the basis of an analytical generalization of the results obtained in the process of calculations for each of its items. Therefore, the work on compiling a balance of income and expenses is not a simple filling of its articles with the corresponding digital data obtained as a result of calculations and summing up for each of the sections. With such work, it is impossible to achieve a balance between income and expenses and ensure the targeted and efficient use of financial resources.

In the process of forming the balance of income and expenses, the following tasks should be solved:

• identification of the enterprise's reserves and mobilization of on-farm resources, which make it possible to increase profitability, solvency, accelerate the turnover of assets and capital and solve other issues related to improving the financial condition of the enterprise;
• more efficient use of profits and other income;
• increasing the efficiency of investments and the investment attractiveness of the enterprise.

The work should begin with the compilation of the "Revenues and Receipts of Funds" section, with the determination of their total size, analysis of the composition, structure and rate of change in comparison with similar data for the corresponding period preceding the planned one. In the event of a decrease in any types of income and receipts, it is necessary to analyze the reasons for this, as well as check the calculations in order to avoid errors.

In the process of compiling the "Expenses and deductions" section, it is necessary to check, for a number of its articles, the relationship between the planned amounts of expenses and deductions with the sources of covering them with the corresponding income and receipts of funds provided for in the first section of the balance of income and expenses. The costs of products and services sold, provided for in the second section of the balance sheet, must be fully covered by the proceeds from their sale. If the proceeds from the sale of products and services are less than the costs of the products sold, then in the first section there will be no profit from the sale, and in the second section, in the amount of planned costs for the sold products, losses appear as part of these costs in the amount of excess costs over revenue.

The cost of repairing fixed assets should be equal to the amount of the repair fund shown in the first section of the balance of income and expenses. In the case of planning expenses for the repair of fixed assets in an amount less than the value of the repair fund, an additional item is provided in the second section of the balance of income and expenses - "Free balance of the repair fund", which reflects the amount of excess of the repair fund over repair costs.

If capital investments are not provided for the planned period or their planned amount is less than the depreciation contained in the first section of the balance sheet, then the free balance of these funds cannot be used to cover other planned costs and payments. Not used for its intended purpose, this balance of funds is shown in the second section of the balance of income and expenses under the item "Balance of funds earmarked for investments".

After filling in all the items of the balance of income and expenses and summing up the results for each of the sections, the degree of balance between them is checked. To do this, you need to compare the result of the first section "Incomes and receipts" with the sum of the results of the second and third sections. In the absence of equality, it is necessary either to find additional sources of income and receipts, or to revise the expenses and deductions planned for the second and third sections of the balance sheet in the direction of their reduction.

9.2. Drawing up a planned balance sheet of an enterprise

The value of assets and liabilities in the planned period may change compared to the baseline under the influence of a number of factors. Each article of assets and liabilities should be calculated taking into account the factors affecting precisely its value. AT this case it is important for us to take into account those factors that are associated with changes in sales proceeds in general, prices for products sold, natural volume of sales, profits from sales and other activities, prices for raw materials, materials and services consumed in the course of the enterprise’s activities, terms of settlements with debtors and creditors.

These factors have a direct impact on the most dynamic elements of assets and liabilities - stocks, receivables, cash, accounts payable. Non-current assets are less affected by these factors, but may also change for some other reason.

Intangible assets, and especially long-term and short-term financial investments, are not directly affected by the dynamics of sales proceeds, prices for the Company's products and raw materials, etc. Fixed assets and construction in progress may change, for example, under the influence of changes in production volume, but this should be very significant qualitative shifts in technology, volume and range of products, etc.

Capital and reserves, long-term liabilities and short-term bank loans also change for reasons of a different nature, however, it is necessary to keep in mind the possible increase in capital and reserves due to the direction of a part of the profit received in the planning period.

Considering the planning of the balance sheet of an enterprise, let's leave aside possible changes in its investment policy, in relations with banks, etc. Let's take into account only those factors that change most often and are directly related to the main activity.

Let's assume that in the planning period it is assumed that prices for the company's products will increase and that the natural volume of production equal to the base volume will be sold. Then the sales revenue will increase by 10%, and the profit from sales will be:

24021 x 1.1 -21599 = 4824 thousand rubles.

Such a calculation is correct if the prices for raw materials, materials and services consumed by the enterprise in the course of its activities, and the level of remuneration of employees of the enterprise do not change. But, according to experts, prices for consumed resources will be higher than in the base period by an average of 2.7%, and labor costs for various reasons will increase by 23.6%. Deductions to off-budget funds will also grow to the same extent. The rest of the cost elements will not change, since they are not associated with either a change in sales proceeds or a change in prices.

Material costs as part of the cost of sold products are planned in the amount of 4950 thousand rubles, i.e. 18.7% of sales proceeds; labor costs and deductions to off-budget funds - 10,882 thousand rubles, i.e. 41.2% of sales proceeds; depreciation of fixed assets will remain at the base level, amounting to 2,330 thousand rubles, or 8.8% of sales proceeds. Thus, data on the dynamics of sales proceeds and its components can be summarized in the following table.

Table 9.1. – Change in sales revenue, costs of products sold and profit from sales in the planning period compared to the base

1. The state of stocks of the enterprise: is there a surplus or shortage of stocks compared to the required need, and is it supposed to eliminate the surplus or shortage in the planning period, if they occur in the base period.

2. The state of receivables: are there any overdue or bad debts in it, and is repayment of the overdue expected. In addition, does the composition of debtors or the terms of settlements with them change, leading to an acceleration or slowdown in the turnover of receivables in general.

3. The state of accounts payable: is there any overdue in its composition and is it expected to be repaid, if any. In addition, does the composition of supplier creditors and the terms of settlements with them change, leading to an acceleration or slowdown in the turnover of accounts payable to suppliers. Finally, are there any overdue accounts payable to other creditors (the budget, off-budget funds, etc.).

Depending on the listed circumstances, the planned amounts of stocks of receivables and payables may vary significantly.

In view of the foregoing, we determine the planned size of stocks. If, as in our enterprise, the vast majority of stocks are raw materials, then the entire basic balance sheet value of stocks can be calculated without a large error based on the rate of change in material costs and replenishment of stocks. If significant stocks are represented by finished products or goods shipped, then they must be planned by direct account based on the prospects for sales and payment for the company's products (Table 9.2).

Table 9.2 - Calculation of the planned size of the company's stocks

Explanations for the calculation.

1. In page 5, the normal inventory turnover is calculated, provided that the lack of inventory on the balance sheet is eliminated. Without changes in the technology and composition of products, such a turnover is maintained in the planned period.

2. Required stocks for the planned period in p. 3 gr. 4 and 5 are determined by dividing material costs by normal inventory turnover (4950: 3.55 = 1394 thousand rubles).

3. If the shortage of reserves is eliminated, the balance sheet value of the reserves will be equal to the normal value (line 1, column 5); while maintaining a shortage of stocks, their balance sheet value should, at a minimum, increase in proportion to the growth of material costs for products sold: 1155 x 4950/4818 = 1187 thousand rubles. (This is due to rising prices for raw materials and materials).

If there were excess stocks on the balance sheet of the enterprise, the calculation would be similar, but the minimum result would correspond to the normal, and the maximum - to the actual state of stocks.

We now calculate the planned amount of receivables. Since here it is necessary to take into account both the actual composition and turnover, we will make two calculations.

Table 9.3 - Calculation of the planned amount of receivables, taking into account its condition

Explanations for the calculation.

1. The calculation is made on the basis of unchanged contractual terms with Debtors and the previous composition of debtors.

2. It is assumed that the minimum amount of receivables in the planning period is possible in the absence of overdue and bad debts (the first will be repaid, the second will be written off). Page 1 gr. 3 received: (4500 - 300 - 10) x 26423/24021 = 4510 thousand rubles; page 1 gr. 4: 4500 x 26423/24021 = 4950 thousand rubles.

Let's introduce another factor into the calculation of the planned value of receivables: a change in the composition of debtors or the terms of settlements with previous debtors changed the turnover of receivables and eliminated overdue and bad debts. Suppose the turnover will be 6.5 times in the planning period instead of 5.9 times in the base period. Comparison of the planned turnover with the base one in the absence of overdue and bad debts requires taking into account precisely 5.9 times, and not 5.3 times. Then the minimum planned value of receivables is equal to: 4510 x 5.9 / 6.5 = 4094 thousand rubles. instead of 4510 thousand rubles.

Taking into account similar factors, accounts payable to suppliers are planned (Table 9.4).

Table 9.4 - Calculation of the planned amount of accounts payable to suppliers

Explanation for the calculation.

Page 1 gr. 3 and 4, taking into account the same turnover and the absence of overdue accounts payable to suppliers, is calculated as follows: 281 x 4950/4818 = 289 thousand rubles.

If in the planning period the composition of suppliers or the contractual terms of settlements with them change, which leads to a change in the turnover of accounts payable, then the calculated value changes inversely with the application of the number of revolutions in the same way as we calculated receivables above.

Accounts payable for wages, social insurance and security, as a rule, depend on the established frequency of settlements, respectively, with employees of the enterprise and extra-budgetary funds. Therefore, it can be calculated for the planning period based on the amount at the end of the base period, increased in proportion to the growth of labor costs and deductions to off-budget funds as part of the costs of products sold in the planning period. The basic value of accounts payable for deductions to off-budget funds and wages in accordance with our balance sheet data and the growth rate of these costs is: (384 + 180) x 123.6 / 100 = 697.1 thousand rubles.

It is more difficult and time-consuming to determine the planned amount of accounts payable to the budget with a sufficient degree of accuracy. If the enterprise does not have overdue debts to the budget, then the basic amount reflects the required amount of debts corresponding to the established frequency of payments to the budget for different types taxes. However, due to the change in sales proceeds and profit in the planning period compared to the base period and the preservation of the size of all other objects of taxation, it is necessary to calculate the increase in income tax, VAT and all Other taxes, the amount of which depends on the proceeds from sales, the profit of the wage fund. This is done by direct account, based on the specific data of each enterprise. In our case, the increase in income tax, VAT, transport tax, deductions for the maintenance of housing stock and social and cultural facilities will total 236.5 thousand rubles. Then, for the Calculation, it is necessary to determine the percentage of accounts payable for these taxes to the total amount of payments due on them in the base period. At our enterprise it is equal to 11.5%. This means that the increase in accounts payable to the budget is 236.5 x 11.5/100 == 27.2 thousand rubles. Of course, this value is calculated with some tolerance. But for drawing up the planned balance, the error can be ignored, since the debt to the budget, as a rule, is not a quantitatively decisive part of the accounts payable of the enterprise.

Thus, we calculated the planned size of assets and liabilities, which change under the influence of changes in sales proceeds, prices for purchased raw materials, materials and services, and the level of wages. These factors operate at each enterprise constantly, therefore, they must be taken into account when drawing up any planned balance.

As noted above, other reasons are possible, under the influence of which assets and liabilities change, but they are of a different nature and are mainly related to changes in the investment and financial policy of the enterprise. If such reasons exist, non-current assets, capital and reserves, long-term liabilities, bank loans, short-term financial investments may change.

In our calculation, we proceed from the fact that there were no such changes in the planning period compared to the base period. If they were, then the calculation of changes in the named elements of assets and liabilities is carried out by direct account and is not difficult.

Based on the calculations made, we will draw up the planned balance sheet of the enterprise. At the same time, it must be borne in mind that in the planned balance sheet, compiled on the basis of only changes in assets and liabilities, the total amounts of the value of property and sources of financing do not necessarily coincide. On the contrary, as a rule, they do not coincide, and either a surplus or a shortage of funding sources is revealed in comparison with the required amount of assets. Only after that it is possible to decide on the direction of the planned profit to replenish the sources of financing, if it turns out that this is necessary. Therefore, for now, at this stage of planning, we do not consider in more detail the size of the planned profit of the enterprise. When compiling the balance sheet, we will also take into account that capital and reserves in the base period occupy a very large specific gravity in funding sources. The company uses very few borrowed sources. It is hardly advisable to increase capital and reserves even more, even if such a possibility exists.

When drawing up the planned balance, we will take into account that we calculated the stocks and receivables at the minimum and maximum levels. VAT on purchased materials will increase in proportion to the increase in the cost of inventories, i.e., it will be equal to 163 x 1187/1155 = 168 thousand rubles, or 163 x 1394/1155 = 197 thousand rubles. We accept the growth of cash in proportion to the growth in sales proceeds, i.e. 84 x 1.1 \u003d 92 thousand rubles.

Table 9.5 - Estimated planned balance of the enterprise at the end date of the planning period (thousand rubles)

The calculation shows that if all the parameters of the planned balance are determined correctly, then the financial situation in the coming period will be favorable for the enterprise: the amount of funding sources exceeds the cost of the necessary assets, and if the stocks and receivables have a minimum estimated value, then this excess is significant increases. This means that the enterprise does not need to seek additional sources of financing even in the face of an increase in sales proceeds and prices for acquired material resources.

Obviously, there is no need to direct any part of the profit to increase capital and reserves; profits can be used entirely for other purposes.

With a different balance sheet structure, a different increase or decrease in sales proceeds and certain types costs for products sold, a different structure of the costs themselves, etc. the conclusions could be completely different. It could turn out that the excess of funding sources over assets is even more significant, or, conversely, the company needs additional sources. Then it would be necessary to increase equity capital, attract credits and loans, or change the contractual terms of settlements with suppliers.

9.3. Change in financial and cash flows due to changes in sales proceeds

Consider the relationship between changes in sales proceeds, costs and profits, on the one hand, and changes in the assets and liabilities of the enterprise, on the other, according to the largest factor. Such a discussion will be somewhat sketchy, but will allow a clearer understanding of the decisive factors that influence this dependence.

We accept the following conditions.

1. Accounts receivable turnover - 45 days;
2. Accounts payable turnover -40 days;
3. Inventory turnover - 30 days;
4. Material costs - 50% of sales proceeds;
5. Free profit - 6% of sales proceeds.

Under all these conditions, it is planned to increase the proceeds from sales by 100 thousand rubles. What will happen to balance sheet data?

Accounts receivable will naturally increase. If the additional annual cost products sold 100 thousand rubles, then the additional receivables will be:

100 x 45/360 = 12.5 thousand rubles.

Stocks will increase in proportion to the increase in material costs as part of sales proceeds, and taking into account their turnover, the increase in stocks is equal to: 50 x 30/360 = 4.2 thousand rubles.

Accounts payable, formed mainly during the acquisition of material resources, will increase by 50 x 40/360 = 5.5 thousand rubles.

Thus, the increase in assets under the influence of an increase in sales proceeds will be 12.5 + 4.2 = 16.7 thousand rubles; the increase in sources of financing in the form of accounts payable - only 5.5 thousand rubles. The enterprise needs additional sources of financing in the amount of 16.7 - 5.5 = 11.2 thousand rubles. Even if we use the free profit of the enterprise to increase its own sources, then the need for additional borrowed funds will be equal to 11.2 - 6 = 5.2 thousand rubles.

Under the same initial conditions, sales revenue does not increase, but decreases by 100 thousand rubles. in the planning period compared to the base period. Then accounts receivable will respectively decrease by 12.5 thousand rubles, inventories - by 4.2 thousand rubles, and accounts payable - by only 5.5 thousand rubles. Available sources of financing in the amount of 11.2 thousand rubles. turn out to be redundant in comparison with the need for assets, and the profit in full can be directed to other purposes.

The given example does not mean that in all cases the increase in the volume of sales creates the problem of additional sources of financing, and the decrease eliminates this problem. Consider other options in which the situation is different (Tables 9.6 and 9.7).

Table 9.6 - Change in the assets and liabilities of the enterprise when changing the terms of settlements with buyers and suppliers and the growth of sales proceeds

The calculation shows that with the same increase in the volume of sales and the same annual requirement in stocks, the shortage or surplus of sources of financing is determined only by the ratio of the turnover of receivables and payables and stocks. We repeat the conclusion that has already been made earlier: for the financial condition of the enterprise in the case of a prospect of increasing its sales volume, it is favorable when the turnover of accounts receivable is faster than the turnover of accounts payable. The lower the share of material costs in the composition of sales proceeds, the greater the gap in the number of days of turnover of receivables and payables is required to ensure that funding sources cover assets associated with an increase in sales volume. To illustrate this conclusion, in the next calculation, we will take options II and III of the previous table as initial data, where funding sources exceed assets. Let's change only one condition: the share of material costs in the sales proceeds is 40% instead of 55%.

Table 9.7 - Change in the assets and liabilities of the enterprise with a change in the share of material costs in sales proceeds

Comparison of the last rows of the two previous tables shows that the decrease in the share of material costs, while maintaining all other calculation conditions, led to a deterioration in the ratio of assets and sources of financing.

It is clear that in each individual case, the growth in sales proceeds will lead either to a shortage or to an excess of funding sources, depending on other indicators of the enterprise. The same conclusion can be drawn for the case of a decrease in sales proceeds.

Therefore, when forecasting an increase or decrease in sales proceeds, it is necessary to consider whether the available sources are sufficient to cover the growing assets (or whether the decrease in sources will be greater than the decrease in assets). If this is the case, then it is necessary to provide for specific additional sources of financing, or borrowed.

When compiling the planned balance, it is advisable to calculate the planned level of solvency of the enterprise. In our enterprise, as we have seen, the total coverage ratio and the ratio current liquidity quite high in the base period. According to the planned balance, the current liquidity ratio is (minimum) 5957: 2489 = 2.393. This level of solvency does not cause concern, and from this point of view, the balance can not be adjusted, especially since the enterprise needs inventories small.

Calculations of the increase in assets and liabilities or their decrease contain information on the increase or decrease in solvency ratios. For example, if current assets increase by 16.7 thousand rubles, and short-term debts by 5.5 thousand rubles, this is a factor in the growth of solvency. And vice versa, with a faster increase in short-term debt compared to the growth of current assets, it is necessary to check how much the overall coverage ratio or current liquidity ratio decreases.

In general, it should be borne in mind that with any improvement in the terms of settlements with creditors compared to the terms of settlements with buyers, i.e., with an acceleration in the turnover of receivables or a slowdown in the turnover of accounts payable, the level of solvency of the enterprise decreases. If before that it was on the verge of being critical, it is dangerous for the enterprise; in other cases, a faster turnover of receivables compared to accounts payable is favorable from the point of view of its financial condition.

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