Audit and economical analysis

Table 165

Enterprise Indicators and Their Norms

Indicators	Norma	Rating
Current liquidity coefficient	Smaller than 2.0	Dissatisfied
	2.0 and greater Between 2.0 and 2.5	Satisfactory
	2.5 and older, but smaller than 3.0	Good
	3.0 or higher	That's fine
Liquidity ratio	Less than 1.0	Dissatisfied
	1.0 and greater , but less than 1.5	Satisfactory
	1.5 is equal to or more, but less than 2.0	Good
	2,0 or higher	That's fine
Coefficient of supply of own working capital	Less than 0.1	Dissatisfied
	0.1 is equal to or more, but less than 0.15	Satisfactory
	0.15 and equal to or greater but less than 0.3	Good
	0.3 or higher	That's fine
Absolute liquidity coefficient	Less than 1.0	Dissatisfied
	1.0 and greater , but less than 1.5	Satisfactory
	1.5 is equal to or more, but less than 3.0	Good
	3,0 or higher	That's fine
Financial sustainability coefficient	Less than 1.0	Dissatisfied
	1.0 and greater , but less than 1.5	Satisfactory
	1.5 is equal to or more, but less than 3.0	Good
	3,0 or higher	That's fine
Autonomy Coefficient	Depending on the loan rate	Not installed
Private Equity Profitability	Low interest rates on bank deposits	Dissatisfied
	Interest rates on bank deposits are much higher than the inflation rate - 1.25	Satisfactory
	Interest rates on bank deposits are higher than the inflation rate - from 1.25 to 1.5	Good
	Interest rates on bank deposits are relatively high than inflation level 1.5-2.0	That's fine

 

Altman's formula, which is a combination of a set of indicators and their combination, is used to estimate enterprise reliability. This formula is also recognized as an enterprise model of cost-effectiveness assessment.

Z = 6.56 X1 + 3.26X2 + 6.72X3 + 1.05X4

  In this case:

X1 - a scroll funds (current assets / total assets);

X2 - p Profit / Total Assets

X3 - total of profits / balances up to interest and taxes

X4 - total of private equity / liabilities

As additional valuation norms for enterprise trustworthiness, it is important to pay attention to the relative superiority of the charter capital, the innovative activity of the enterprise, the level of attendance at the exhibitions and fairs, and the winning levels.

Enterprise Competitiveness Analysis

he main goal for all countries of the world is to promote economic growth and welfare of the people. Therefore, in all the countries of the world a great importance is attached to creation of competitive farming structures, their modernization and reconstruction, transition to modern, effective forms of organization and management of production.

Enterprise's competitiveness is its superiority over the market opponents and the economic uncertainty. Competitiveness is assessed through a complex set of indicators. The purpose of its evaluation is to determine the position of the enterprise in the sector, region and the international market.

The Enterprise Comparison Algorithm Includes:

- determination of purpose;

- assessment, analyze types of activities;

- contest selection;

- selection and classification of indicators;

- evaluation, analysis of indicators;

- summarizing the results of the assessment;

- preparation of comprehensiveness assessment reports.

 

Table 166