Cutting- edge science

CUTTING- EDGE SCIENCE
August | 2020
3.Structural analysis of cash flows. In the process of this analysis in the composition
of the total cash flow, cash flows from the operating, investment and financial activities
of the enterprise are distinguished; as part of each of these types of cash flow, the
recei pt and expenditure of cash are more deeply structured, the composition of the
balance of monetary assets for its individual elements.
Comparative financial analysis is based on comparing the values of individual groups
of similar indicators with each other. In the process of using this analysis system, the
sizes of the absolute and relative deviations of the compared indicators are calculated. In
the management of the financial security of an enterprise, the following types of
comparative financial analysis are most widely used the comparative analysis of the
financial security indicators that are given joint-stock companies and the industry average
indicators. In the process of this analysis, the degree of deviation of the leading indicators
of financial security. That is given enterprise from the industry average is revealed to
assess its competitive position by the financial results of the business. Also, to identify
reserves for further increasing the efficiency of the systems for protecting its financial
interests.
Analysis of financial ratios (R-analysis) is based on calculating the ratio of various
absolute indicators of the financial activity of the enterprise among themselves. In the
process of using this analysis system, various relative indicators are determined that
characterize individual results of financial activities and the level of the financial condition
of the companies. In the management of the financial security of the joint stock companies,
the following groups of analytical financial coefficients are most widespread: coefficients
for assessing the financial stability of the company; coefficients for assessing the solvency
(liquidity) of the company; ratios for assessing asset turnover; coefficients for assessing
capital turnover; profitability assessment coefficients and others.
The coefficients for assessing the financial stability of an enterprise allow us to
identify the level of financial risk associated with the structure of sources of formation
of the enterprise's capital, and, accordingly, the degree of its financial stability in the
process of future development.
Solvency (liquidity) assessment ratios characterize the ability of an enterprise to
timely settle its current financial obligations at the expense of current assets of various
levels of liquidity.
Assessment coefficients of asset turnover characterize how quickly formed assets turn
over in the course of business activities of an enterprise.
The coefficients for assessing the capital turnover characterize how quickly the
capital used by the enterprise as a whole and its individual elements turn over in the
course of its economic activity.
Profitability assessment coefficients (profitability) characterize the ability of an
enterprise to generate the necessary profit in the course of its economic activities and
determine the overall efficiency of the use of assets and invested capital.
Fifthly, integrated financial analysis allows you to get the most in-depth (multifactorial)
assessment of the conditions for the formation of individual aggregated financial indicators.
In financial management, the following systems of integral financial analysis are most
widely used:
1.The system of integral analysis of the efficiency of using the assets of the enterprise.
This system of financial analysis, developed by DuPont (USA), provides for the
decomposition of the "return on assets ratio" indicator into a number of private financial
coefficients of its formation, interconnected in a single system. This analysis system is
based on the "DuPont Model" (developed by "DuPont", USA), according to which the
profitability ratio of the assets of the enterprise is the product of the profitability ratio of

---

31