Descriptive models are used to assess the financial condition of the firm.

Descriptive models are used to assess the financial condition of the firm.

For the purchase of overalls and other items that remain in personal use - based on the planned price of their purchase, the established service life and the number of relevant categories of personnel.

Other payments - based on their size

For in-depth calculations, additional wages can be planned based on the existing or target ratio between the basic and additional wages.

Other incentive and compensation payments

The need for funds for incentive and compensation payments is carried out in the following main ways:

Premium payments under special systems - based on the developed provision and taking into account their frequency, mass payment and the average size of premiums.

One-time incentives and financial assistance - based on the appropriate size, taking into account the average size and the number of required payments.

Bonuses based on the results of work for the year, years of service and length of service in accordance with the developed provisions, based on the planned amount of basic and additional wages, the planned amount of profit and the established share of its use for this purpose.

Labor and social benefits for workers - based on the size, frequency and frequency of their provision separately for each type.

Compensation payments (due to downtime through no fault of the workers, leave at the initiative of the administration and in other cases provided by law) - based on the length of the period during which wages are retained, the number of staff who will receive compensation and benefits already formed (planned) average salary to the relevant categories of staff.

Other payments - based on the appropriate amount of their implementation

For in-depth calculations, the amount of incentive and compensation payments is planned based on the share of net profit in its total amount and the planned amount of net profit.

Carrying out planned calculations in each direction and type of material incentives for personnel allows to determine the total planned size of the payroll of the enterprise and the planned average income per employee of the enterprise as a whole and by categories of personnel.

The planned average amount of income (wages) of certain categories of personnel of the enterprise is compared with the average market level of wages (labor costs), which corresponds to the qualifications and professional skills.

If the level of wages in this trading company corresponds to the average market level, or above it, it provides staffing and to some extent helps to increase productivity and efficiency of their work.

If the salary at the enterprise is lower than the average level in the national economy, it causes staff turnover, dissatisfaction with work and, accordingly, negatively affects the performance of staff. If such a situation is identified, the amount of wages and other incentive payments used at the enterprise should be reviewed and adjusted.

At the same time, it is necessary to study the financial capabilities of the enterprise to generate income (profits) sufficient to create a payroll and make planned payments.

Creating financial prerequisites for timely and full payment and incentives for staff is as follows:

When planning the minimum and target turnover of the enterprise (break-even point and target profit) - by including labor costs in the conditional fixed (in the amount of the fixed part of the basic and additional wages), conditionally variable current costs (in the amount of individual payments and variable part of the auxiliary salary) and net profit of the enterprise (in the amount of other planned incentive and compensation costs).

When planning the required amount of income (level of trade margin) - by taking into account the necessary labor costs as part of the current costs of the enterprise.

When planning the distribution of net income - by including the amount of incentive social costs provided for in the labor plan in the overall estimate of the use of profits.


Evaluation of the firm: financial condition and financial results. Abstract

Goals, objectives and models of financial analysis. Liquidity, liquidity ratios. Profitability indicators. Calculation of net profit of the enterprise

Goals, objectives and models of financial analysis

Financial analysis is a way of accumulating, converting and using information of a financial nature.

Financial analysis has several purposes:

determination of the financial condition and financial results of the firm; detection of changes in financial condition and results in terms of space and time; identification of the main factors that caused changes in financial condition and results; forecast of the main tendencies in a financial condition and results of activity of firm.

Financial analysis can be considered as an integral part of project analysis and financial management, so the actions of the analyst depend on the goal. Project analysis requires justification of investments with the best results. Financial management requires constant work of the manager in search of financial resources.

From the standpoint of project analysis, the purpose of financial analysis is to determine the profitability and efficiency of the project from the point of view of investors and the organization implementing the project, as well as assess the current and projected financial condition of the enterprise.

Financial analysis involves solving the following tasks:

to assess the financial condition and financial results of the enterprise "without project" and "with project"; evaluate the financial project and ensure coordination of the use of financial resources over time; assess the need for project financing and ensure coordination of the use of financial resources over time; determine the adequacy of economic incentives for potential investors; evaluate, optimize and compare the costs and benefits of the project in quantitative terms.

Financial analysis uses a variety of methods that allow you to structure and identify relationships between key indicators. There are three main types of models used in financial analysis: descriptive, normative and predicative.

Descriptive models are used to assess the financial condition of the firm. These include: building a system of balance sheets, presentation of financial statements in various analytical sections, reporting analysis, a system of analytical ratios and more. All these models are based on the use of accounting information.

Normative models make it possible to compare the actual results of firms with the expected, calculated by the budget. These models are mostly used in financial management.

Project analysis, which deals not so much with the present as with the predicted future, uses predictive models that are predictable, predictive in nature and allow you to predict future cash flows, financial condition and results.

Financial design is based on these models - the logical conclusion of the project analysis.

Methods of financial analysis in the application to the securities market and financial investments differ significantly from the methods of financial analysis as part of the project analysis. For example, financial analysis as a part of financial management, which deals with the analysis of financial investments, is divided into fundamental and technical. Since project analysis is applied to real investments, the methods of fundamental and technical financial analysis of investments are not considered in this paper.

Liquidity, liquidity ratios

There are several basic schemes for analyzing the financial condition and results of the enterprise. This manual provides the most common scheme of analysis in world practice, which is called the scheme of financial ratios.

Liquidity ratios

Liquidity is the ability of an enterprise to settle its debt obligations on time by converting all assets into cash.

Working capital is part of the initial cost of the project and must be maintained at a certain level throughout the project cycle.

Net current assets are calculated by the formula:

Net current assets = Current assets - Current liabilities

Liquidity characterizes the company's ability to pay its current liabilities.

Its equivalent is:

Current ratio = Current coverage assets

Current liabilities

It is best when the current coverage ratio is higher than 2, but it should not be lower than 1. The value of the coefficient is more than 1.5.

Liquid assets = Current assets - Inventories

The ratio shows what part of current assets can be immediately converted into cash and used to repay short-term liabilities.

Its equivalent is the "acid test".

Quick ratio = Liquid assets

This ratio must not be lower than 1, otherwise the financial condition of the enterprise is assessed as unsatisfactory.

The nominal value of equity is also used to assess liquidity. If we subtract intangible assets and borrowed funds (debt obligations) from the asset (liability), we will receive such a value.

Nominal value of equity = Asset - Intangible assets - Long-term liabilities - Current liabilities

This ratio shows what the company will actually own at the time and in the event of liquidation.

If intangible assets are zero, the nominal value of equity will be equal to the net nominal value of assets.

Net face value = Equity +

Budget financing + Deferred income +

Undivided profit

The nominal value of equity is sometimes used in the calculation of profitability instead of the equity. It reflects the potential value of equity.

It is also used to assess liquidity

Equity ratio of net nominal value of assets


Nominal value of equity Net nominal value of assets


This figure cannot be greater than 1 and depends on the share of intangible assets in the assets of the enterprise.

Liquidity ratios for the planning period are calculated based on the available at the beginning of the project indicators of financial condition, ie the impact on their change of project changes is analyzed.