Analysis of the dynamics and structure of assets and sources of funding
According to the PBO assets 2 - a resource controlled by the enterprise, resulting from past events and whose use will lead to obtain benefits in the future.
Asset give some idea of the resources or capacity owned enterprise. They are placed in the growth of liquidity resources.
In passive balance displays its own sources of financing assets and liabilities of the enterprise for loans, loans payable. Thus, passive contains information on funds raised now in circulation from various sources. Liabilities are placed with increasing urgency obligations.
Commitment - a current debt of the company to other businesses and individuals that arose as a result of past business transactions the settlement of which in the future will reduce enterprise resources embodying economic benefits.
Commitment to the owners make a permanent part of the balance of liabilities, which is not repayable until the company operates.
Depending on the maturity, liabilities to third parties are long-term and short-term.
Analyzing the balance must take into account the following factors:
- Information on the balance sheet is shown at the beginning and end of the period, so it is impossible to assess the changes that take place during this period;
- Asset and liability are constantly changing under the influence of business operations. Each group of functionally related liabilities to the relevant part of balance sheet assets. These relationships between them must be taken into consideration.
The analysis should identify:
1) share of each group of assets and liabilities in total of balance;
2) the dynamics of the year and the main trends in terms of strengthening or weakening of the financial situation of the company;
3) mobility assets of the company;
4) the existence and dynamics of equity;
5) The financial autonomy of the enterprise;
6) the state of fixed assets;
7) Working capital structure.
Analysis of the dynamics and structure of assets, you can set the size of the absolute and relative increase or decrease in total assets and its individual species.
Indicators of structural dynamics reflect the proportion of each type of property for a total change of total assets. This allows you to draw conclusions about the assets invested in long-term financial resources involved and the assets, in contrast, decreased as a result of the outflow of financial resources.
The growth of working capital should take place against the background of the rising cost of fixed assets. If the condition is long undermined production base for increasing the volume of production in the future. In our example, the main means of construction.
Therefore, definitive conclusions regarding the justification of such structural changes should be thoroughly familiar with the plan. If it is connected with technical refitting and commissioning of new facilities, the company will increase future production.
On the credit balance shown on the one hand, production capacity, which provides opportunities for productive activities, and the second - the potential for investment and financial activities. Therefore, a more detailed assessment of the dynamics and structure of assets requires an analysis for each property separately: fixed assets, inventories, accounts receivable, cash.
Analysis of the structure of property companies should be supplemented with analysis of the dynamics and structure of financial resources.
In conditions of recession and high cost of credit decline in borrowing promotes financial condition.