1 Theoretical and Methodological Review of Concepts of a Financial Condition of the Enterprise and its Analysis

1.1 Concept of financial statement of the enterprise

In modern domestic economic literature financial condition of the enterprise is treated with different positions, there is no single methodological approach to its definition, which complicates the creation of universal practical methodologies.

Financial condition is understood as a point feature of the process of circulation of capital on the time axis, reflecting the company's ability to further development. Financial condition of the enterprise is an economic category, reflecting the state capital in the process of circulation and the ability of the entity to self-development at a fixed moment in time [1, p. 67] , Century Savitskaya "Analysis of economic activity of the enterprise" 4th edition, revised and supplemented Minsk LLC "New knowledge" 2000

Financial condition of the enterprise is characterized by composition and placement of funds, the structure of their sources, the rate of capital turnover, the company's ability to pay its obligations in time and in full volume and other factors.

Financial condition is treated as a characteristic of placing funds of the company, its investment activity; the planning and control aspect of this category is especially emphasized. The financial condition of enterprises characterizes the distribution and use of funds of the enterprise. It is determined by the degree of implementation of the financial plan and measures to Supplement its own funds for the account of profits and other sources, if they are stipulated by the plan, as well as the speed of turnover of assets and especially current assets [2 c. 109] Bakanov M.I., Melnik M.V., Sheremet A.D. 5-e Izd., Rev. and extra - M: Finance and statistics, 2005.

Financial condition can be interpreted as the solvency of the enterprise. Financial condition of the enterprise is the security or insecurity of the enterprise funds to ensure its economic activity [3, p. 67]. Shevchuk D.A. Rostov n/D: 2007

Financial condition of the enterprise is characterized by a set of indicators that reflect the process of formation and use of its funds [41, S. 475]. Financial condition manifests itself in the solvency of enterprises, the ability to meet payment requirements suppliers of equipment and materials in accordance with commercial contracts, return the loans, to pay wages to workers and employees, to make payments to the budget. Financial condition is also important characteristic of the business activity and the company's reliability. It defines competitiveness of the enterprise and its opportunities in business cooperation, acts as the guarantor of realization of economic interests of all participants of economic activity.

In the process of procurement, production, marketing and financial activities is a continuous process of circulation of capital, change in the structure of funds and sources of their formation, existence and need for financial resources., change of the financial condition of the enterprise.

Financial activity covers processes of formation, movement and ensuring safety of property of the enterprise, and also control of its use.

Under the financial condition relates to the ability of enterprises to Finance their activities [38, S. 354]. It is characterized by the availability of financial resources, which are necessary for normal functioning of the enterprise, reasonable accommodation of these resources and efficient use of, financial relationship with other legal entities and individuals, solvency and financial stability.

However, financial condition is the most important characteristic of economic enterprises in the external environment.

The level of the financial condition of the enterprise is of great interest for different user groups [4, S. 475]:

- owners and shareholders, interested in the profitability of the enterprise, the level of economic development in the future and the associated dividends, as well as the degree of risk and the likelihood of losing their capital;

- managers of enterprises, which are based on the analysis and evaluation of financial condition of the company taking decisions on the further increase of efficiency of its work;

- suppliers of various inventory items and contractors for whom timely payment of the delivered resources and the performed works on capital construction is important;

- investors interested in the most profitable investment capital and risk of loss of investment. At that, the more stable financial condition of the enterprise, the lower the risk and higher return on investment.

- the creditors which purpose is return of the given-out credits and receiving percent due on them. At delivery of the short-term credits the greatest interest represents the current financial position of the enterprise. At long-term crediting, the main criterion is the assessment of long-term profitability of the enterprise and its ability to extinguish the main amount of debt and percent on it;

- workers of the enterprise for which stability and financial stability of the enterprise are the guarantee of timely payment of wages and preservation of work.

Financial condition is a complex concept which depends on many factors and is characterized by a system of indicators reflecting existence and investment of funds, real and potential financial opportunities on it; [5, S. 355].

Financial condition of the enterprise may be:

- absolutely stable - when inventory and costs are less than the sum of own working capital and Bank loans, the company is not dependent on external creditors;

- normal stable - reserves and costs equal to the sum of own working capital and Bank loans, i.e. guaranteed solvency, the company uses a "normal" sources of funds - own and borrowed;

- unstable (pre-crisis), is disturbed the balance of payments, but you can still restore the balance of payment instruments and payment obligations, the company has to attract additional sources of covering;

- crisis (the enterprise is on the verge of bankruptcy) - stocks and expenses more than a sum of own working capital and the bank credits, except additional sources of a covering, the enterprise has the credits and the loans which haven't been extinguished in time, and also overdue creditor and receivables.

Financial condition of the enterprise is considered sustainable if it is able to make timely payments to Finance their activities on an extended basis [6, S. 475].

For ensuring financial stability the enterprise has to possess flexible structure of the capital, be able to organize its movement so that to provide continuous excess of the income over expenses for the purpose of preservation of solvency and creation of conditions for the production.

Consequently, the company's financial stability is the ability of the entity to operate and develop, to balance their assets and liabilities in the changing internal and external environment to ensure its continued solvency and investment appeal within the boundaries of the acceptable risk level [7, S. 354].

Financial condition of the enterprise, its sustainability and stability depend on the results of its industrial, commercial and financial activities. If the production and financial plans are successfully implemented, it has a positive effect on the financial position of the company. And, conversely, as a result of a shortfall of the plan for the production and sales of products is increasing its cost, reduction in revenue and profit and as a consequence of the deterioration of the financial condition of the company and its solvency.

Stable financial position, in turn, has a positive impact on the implementation of production plans and ensuring the needs of the production of the necessary resources. Therefore, the financial activities as an integral part of economic activity should be aimed at ensuring the planned receipts and expenditure of monetary resources, the achievement of rational proportions of own and borrowed capital and most effective use.

The stability of the financial condition may be restored at the expense of [8, 60 C.]:

Accelerate the capital turnover in current assets (this will result in a relative decline in capital on the ruble turnover);

- informed reduce inventory and expenses (to the standard);

- replenishment of turnover capital from internal and external sources.