Financial results of the enterprise: criteria and assessment methodology
The activity of any organization is determined, first of all, by indicators that characterize the final financial result, which is profit (or loss) that meets the needs of both the enterprise in particular and the state as a whole. The analysis of the financial results of the enterprise is based on the analysis of profit. It is this indicator that characterizes the absolute efficiency of production and financial activities. The system of indicators of financial results includes not only absolute, but also relative indicators (profitability), which are calculated by the ratio of the effect to the factor (or a set of factors). The level of profitability characterizes the return on costs and the higher this indicator, the more efficient production. Profit growth characterizes the presence of potential opportunities in the enterprise, increases the degree of its business activity. It is important in the analysis to identify factors that have a positive or negative impact on the formation of financial results. The positive dynamics of profit makes it possible to form a financial basis for the implementation of expanded reproduction of the company and the satisfaction of the social and material needs of both founders and employees. In addition, with the help of profit, the company's obligations to the budget, credit and other organizations are fulfilled.