1.3 System of indicators, characterizing financial condition of the enterprise

The indicators used in the financial analysis is a set of discrete analytical information, presented in digital form [11, S. 22].

Each indicator has a numeric expression that characterize a particular dimension of an object or process, and reflecting in digital form their quantitative parameters and economic substance. Each object or a business process is usually defined by a set of interrelated indicators [12, S. 22].

Economic theory allocates the following groups of the indicators used in the financial analysis: quantitative and qualitative.

The indicators reflecting the quantitative characteristic of object or process belong to quantitative indices are: the revenue volume, amount of completed work, size of fixed assets, their share in the total amount of assets, etc. The indicators reflecting essential definiteness of object or process belong to quality indicators are: profitability, labor productivity, a material capacity, etc. The special attention is paid to the analysis of the indicators characterizing quality of work and the end results of activity of the enterprise.

Quantitative and quality indicators are closely interconnected. They are applied in a complex that provides a comprehensive and deep assessment of the reached results [12, S. 22].

Absolute values are expressed in monetary and natural meters (RUB, tonnes, kilograms, meters, liters, PC’s., hours etc), while relative are expressed in percents and indexes. Relative indicators are determined by dividing one indicator to another, for Example, the ratio of the volume of production on the ruble fixed assets (return on assets), per employee (generation) etc; private (informal) - developed by the organization itself and mandatory - approved by the parent bodies in Addition to the demonstration, to be approved centrally, various official and parent bodies, the organization eating independently develop indicators and apply them for analysis [13, S. 22]; private and generalizing (integral).

Generalizing indicators by which provides a summary of the status of the analyzed object or process. Private - indicators of separate components of the object or process; planned and normative. Planned - estimates used in the preparation of different kinds of plans and budgets. Regulatory - approved (policy, indicative) indicators having a design or imperical-defined numeric expression [14, S. 23].

When conducting financial analysis it is advisable to use the totality of ethics indexes, that allows to provide the depth and comprehensiveness of research of economic processes and phenomena.

In addition, the study of each indicator in conjunction with the other allows to identify the factors affecting their change, to determine the dominant one and quantify the dependence between each factor and result indicator, as well as among the factors.

Indicators characterizing financial condition can be divided into groups reflect the financial condition of the company. These include: ratios of liquidity, stability factors (indicators, capital structure, profitability ratios and ratios of business activity.

The degree of solvency of the enterprise is usually estimated using financial LIQUIDITY ratios:

The absolute liquidity ratio calculated as the ratio of cash and quick short-term securities to the current short - term debts [15]:

In the world practice is considered sufficient value of absolute liquidity ratio equal to 0,2 -0,3, i.e. the company may immediately repay 20 -30 % current liabilities.

The liquidity ratio is defined as the ratio of cash, short-term financial investment and receivable to current liabilities [16]:

(1.2)

According to estimates, accepted in international practice, the coefficient should be 0,8-1.

The overall coverage ratio, which is called simply the coverage ratio, gives a General assessment of solvency of the enterprise. The coverage ratio is of interest for the buyers and holders of shares and bonds of the enterprise [16]. It is calculated by the formula

(1.3) the Normal value of this ratio is 2.0 to 2.5. Financial sustainability and autonomy reflects the structure of the balance (the ratio between the individual sections of assets and liabilities), which is characterized by several indicators

Equity ratio characterizes the dependence of the enterprise on external loans, the lower the value of the coefficient, the more loans from the company, the higher the risk of insolvency. the low value of the coefficient reflects also a potential risk of the company scarcity of funds:

(1.4)

It is normal, if the value of the autonomy ratio greater than 0.5, i.e. financing activities the company is not less than 50% from its Own sources,

The share of borrowed funds is determined by the formula:

(1s)

This ratio shows how much of the borrowed funds were attracted by the company's own funds invested in the assets.

The ratio of investment - the ratio of debt and equity. money is another form of presentation of the financial independence ratio [16]:

(1.6) the Recommended values: 0.25 to 1. The profitability ratios. In addition to the already discussed profitability ratios, with analysis of financial condition and expect other modifications describing different aspects of the enterprise activity

The return will sell. Shows the share of net profit in the volume of sales of the enterprise [16]:

(1.7)

The ratio ROE allows determining the efficiency of use of the capital invested by the owners of the company. Usually this rate is compared with the possible alternative investments in other securities [16]. Return on equity shows the number of currency units of net profit earned each unit, invested by the owners of the company:

(1.8)

The return current assets. Demonstrates the capabilities of the enterprise to provide sufficient benefits to the working assets. The higher this ratio, the more effectively use current assets:

(1.9)

The return of non-current assets demonstrates the company's ability to produce a sufficient quantity of profits in relation to fixed assets [16]. The higher the value of this ratio is, the more effectively used fixed assets:

The return of investment indicates the number of currency units required the company to obtain one unit of the profit. This indicator is one of the most important indicators of competitiveness

Factors of business activity allow to analyze how effectively a company uses its funds Among these factors are considered such factors as capital productivity when it comes to non-current assets, working capital turnover and the turnover of the total capital.