Topic 6. Financial planning and forecasting

Question 1. Strategic, long-term and short-term financial planning

Kreinina M.N. Financial management: Textbook. village – M.: Business and Service, 1998. – 304 pp., pp. 195-212.

9.1. Planning of enterprise income and expenses

Financial planning covers the most important aspects of the enterprise's activities; it provides the necessary preliminary control over the formation and use of material, labor and monetary resources, creates the necessary conditions for improvement financial condition enterprises.

Financial planning in an enterprise is interconnected with planning economic activity and is built on the basis of other indicators of the plan (volume of production and sales, production cost estimates, capital investment plan, etc.). However, drawing up a financial plan is not a simple arithmetic conversion of production indicators into financial indicators.

In the process of drawing up a draft financial plan, a critical approach is taken to the indicators of the production plan, on-farm reserves not taken into account are identified and used, methods are found for more efficient use of the enterprise’s production potential, more rational use of material and monetary resources, increasing the consumer properties of manufactured products, etc. .

In the process of developing a financial plan, the following are determined: costs of products sold, proceeds from sales, cash savings, depreciation, volume and sources of financing planned for the planned period, the need for working capital ah and sources of its coverage, distribution and use of profits, relationships with the budget, extra-budgetary funds, banks.

Financial planning at an enterprise has the following target orientation:

1. Providing financial resources and funds for the activities of the enterprise.

2. Increase in profits from core activities and other activities, if any.

3. Organization of financial relationships with the budget by extra-budgetary funds, banks, creditors and debtors.

4. Ensuring a real balance between planned income and expenses.

5. Ensuring the solvency and financial stability of the enterprise.

The traditional form of a financial plan is a balance of income and expenses. Work on drawing up a financial plan is carried out in several stages:

the first stage is an assessment of the implementation of the financial plan for the previous period;

the second stage is the consideration of projected production indicators, on the basis of which a financial plan will be drawn up;

the third stage is the development of a draft financial plan.

For greater efficiency and taking into account inflation, it is advisable to draw up a balance of income and expenses by quarter of the planned year.

To draw up a balance of income and expenses, it is necessary to have calculations as a basis: revenue from sales; profit and directions for its expenditure; needs for own working capital; the amount and use of depreciation; sizes and directions of use of the repair fund, etc.

The balance of income and expenses can be compiled in the context of the following items.

I. Income and receipts of funds.

1. Revenue from sales of products (works, services)

including: 1.1. Profit from sales.

2. Income from non-operating operations.

3. Other operating income.

4. Depreciation.

5. Repair fund.

6. Funds deducted from the cost of production:

6.1. For the payment of taxes and other obligatory payments attributed to the cost price.

6.2. To pay interest on loans.

7. Increase in stable liabilities.

8. Excess working capital at the beginning of the planning period.

9. Income from the initial issue of shares.

10. Other income.

Total income and receipts.

11. Expenses and deductions.

1. Costs of sold products and services at the full planned cost, including losses from sales.

2. Value added tax paid to suppliers.

3. Capital investments.

4. Costs of repairing fixed assets.

5. Deductions from profits for accumulation and consumption.

6. Rent.

7. Contributions to reserve and other special funds.

8. Other operating expenses.

9. Other non-operating expenses.

Total expenses and deductions.

III. Relations with the budget, extra-budgetary funds and banks.

1. Income tax.

2. Value added tax.

3. Property tax.

4. Other taxes included in the cost price and paid at the expense of financial results.

5. Payments to extra-budgetary funds.

6. Repayment of long-term bank loans.

7. Payment of interest on loans.

Total payments.

1. Income and receipts of funds.

2. Expenses, deductions and payments.

The balance of income and expenses is formed on the basis of an analytical synthesis of the results obtained in the process of calculations for each of its articles. Therefore, the work of drawing up a balance of income and expenses is not simply filling out its articles with the relevant digital data obtained as a result of calculations and summing up for each section. With such work, it is impossible to achieve a balance between income and expenses and ensure targeted and efficient use financial resources.

In the process of forming the balance of income and expenses, the following tasks must be solved:

• identifying the enterprise’s reserves and mobilizing on-farm resources to increase profitability, solvency, accelerate the turnover of assets and capital and resolve other issues related to improving the financial condition of the enterprise;
• more efficient use of profits and other income;
• increasing the efficiency of investments and the investment attractiveness of the enterprise.

Work should begin with the compilation of the section “Income and receipts of funds”, with the determination of their total size, analysis of the composition, structure and rate of change in comparison with similar data for the corresponding period preceding the planned one. In the event of a decrease in any types of income and receipts, it is necessary to analyze the reasons for this, as well as check the calculations to avoid errors.

In the process of compiling the “Expenses and Deductions” section, it is necessary to check for a number of its articles the relationship of the planned amounts of expenses and deductions with the sources of covering their corresponding incomes and receipts of funds provided for in the first section of the balance sheet of income and expenses. The costs of products and services sold, provided for in the second section of the balance sheet, must be fully covered by the proceeds from their sale. If the proceeds from the sale of products and services are less than the costs of the products sold, then in the first section there will be no profit from sales, and in the second section, in the amount of the planned costs for the products sold, losses appear as part of these costs in the amount of the excess of costs over revenue.

The costs of repairing fixed assets must be equal to the amount of the repair fund shown in the first section of the balance sheet of income and expenses. In the case of planning expenses for the repair of fixed assets in an amount less than the value of the repair fund, the second section of the balance sheet of income and expenses provides additional article- “Free balance of the repair fund”, which reflects the amount of excess of the repair fund over repair costs.

If capital investments are not provided for the planned period or their planned amount is less than the depreciation contained in the first section of the balance sheet, then the free balance of these funds cannot be used to cover other planned costs and payments. Not used for its intended purpose, this balance of funds is shown in the second section of the balance sheet of income and expenses under the item “Balance of funds intended for investments.”

After filling out all the items in the balance sheet of income and expenses and summing up the results for each section, the degree of balance between them is checked. To do this, you need to compare the results of the first section “Income and receipts” with the sum of the results of the second and third sections. In the absence of equality, it is necessary either to find additional sources of income and receipts of funds, or to revise the expenses and deductions planned for the second and third sections of the balance sheet in the direction of reducing them.

9.2. Drawing up a planned balance sheet of an enterprise

The value of assets and liabilities in the planning period may change compared to the base value under the influence of a number of factors. Each item of assets and liabilities must be calculated taking into account factors affecting its value. In this case, it is important for us to take into account those factors that are associated with changes in sales revenue in general, prices for products sold, physical volume of sales, profit from sales and other activities, prices for raw materials, supplies and services consumed in the course of the enterprise’s activities, terms of settlements with debtors and creditors.

The listed factors have a direct impact on the most dynamic elements of assets and liabilities - inventories, accounts receivable, cash, accounts payable. Non-current assets are less affected by the above factors, but can also change for some other reasons.

Intangible assets and especially long-term and short-term financial investments are not directly affected by the dynamics of sales revenue, prices for the enterprise's products and raw materials, etc. Fixed assets and construction in progress may change, for example, under the influence of changes in production volume, but this should there may be very significant qualitative changes in technology, volume and range of products, etc.

Capital and reserves, long-term liabilities and short-term loans of banks also change for reasons of a different nature; however, it is necessary to keep in mind a possible increase in capital and reserves by directing part of the profit received in the planning period there.

When considering the planning of an enterprise's balance sheet, we will leave aside possible changes in its investment policy, in relationships with banks, etc. We will take into account only those factors that change most often and are directly related to the main activity.

Let us assume that in the planning period it is assumed that there will be a possibility of increasing prices for the enterprise's products and the sale of a natural volume of products equal to the base one. Then sales revenue will increase by 10%, and sales profit will be:

24021 x 1.1 -21599 = 4824 thousand rubles.

This calculation is correct if the prices for raw materials, materials and services consumed by the enterprise in the course of its activities, and the level of remuneration of the enterprise’s employees do not change. But, according to experts, prices for consumed resources will be higher than in the base period by an average of 2.7%, and labor costs for various reasons will increase by 23.6%. Contributions to extra-budgetary funds will also increase to the same extent. The remaining cost elements will not change, since they are not associated with either a change in sales revenue or a change in prices.

Material costs as part of the costs of sold products are planned in the amount of 4950 thousand rubles, i.e. 18.7% of sales revenue; labor costs and contributions to extra-budgetary funds - 10,882 thousand rubles, i.e. 41.2% of sales revenue; depreciation of fixed assets will remain at the basic level, amounting to 2,330 thousand rubles, or 8.8% of sales revenue. Thus, data on the dynamics of sales revenue and its components can be summarized in the following table.

Table 9.1. – Change in sales revenue, costs of products sold and profit from sales in the planning period compared to the base period

1. The state of the enterprise's reserves: is there a surplus or shortage of reserves compared to the required requirement and is it expected in the planning period to eliminate the surplus or deficiency if they occur in the base period.

2. The status of accounts receivable: whether they are overdue or bad and whether the overdue debt is expected to be repaid. In addition, is the composition of debtors or the terms of settlements with them changing, leading to an acceleration or slowdown in the turnover of receivables as a whole.

3. The status of accounts payable: is there any overdue debt and is it expected to be repaid, if any. In addition, is the composition of supplier creditors and the terms of settlements with them changing, leading to an acceleration or slowdown in the turnover of accounts payable to suppliers. Finally, are there any overdue accounts payable to other creditors (budget, extra-budgetary funds, etc.).

Depending on the above circumstances, the planned amounts of inventories of accounts receivable and accounts payable may vary significantly.

Taking into account the foregoing, we will determine the planned size of inventories. If, as in our enterprise, the overwhelming majority of inventories are raw materials and supplies, then the entire basic balance sheet amount of inventories can be calculated without a large error based on the rate of change in material costs and replenishment of inventories. If significant reserves are presented finished products or goods shipped, then they must be planned directly based on the prospects for sales and payment for the enterprise’s products (Table 9.2).

Table 9.2 – Calculation of the planned size of enterprise inventories

Explanations for the calculation.

1. On page 5, the normal inventory turnover is calculated, provided that the shortage of inventories on the balance sheet is eliminated. Without changes in technology and composition of products, such turnover is maintained in the planning period.

2. Necessary reserves for the planning period in page 3 gr. 4 and 5 are determined by dividing material costs by normal inventory turnover (4950: 3.55 = 1394 thousand rubles).

3. If the shortage of inventories is eliminated, the balance sheet value of inventories will be equal to normal (page 1, gr. 5); while the shortage of inventories remains, their balance sheet value should, at a minimum, increase in proportion to the increase in material costs for products sold: 1155 x 4950/4818 = 1187 thousand rubles. (this is due to rising prices for raw materials).

If there were excess inventory on the company's balance sheet, the calculation would be similar, but the minimum result would correspond to the normal one, and the maximum would correspond to the actual state of inventory.

Let us now calculate the planned amount of accounts receivable. Since here we need to take into account both the actual composition and turnover, we will make two calculations.

Table 9.3 – Calculation of the planned amount of receivables, taking into account its condition

Explanations for the calculation.

1. The calculation was made based on unchanged contractual terms with Debtors and the previous composition of debtors.

2. It is assumed that the minimum amount of accounts receivable in the planning period is possible in the absence of overdue and bad debts (the first will be repaid and the second will be written off). Page 1 gr. 3 received: (4500 - 300 - 10) x 26423/24021 = 4510 thousand rubles; page 1 gr. 4: 4500 x 26423/24021 = 4950 thousand rubles.

Let's introduce one more factor into the calculation of the planned amount of receivables: changes in the composition of debtors or the terms of settlements with previous debtors changed the turnover of receivables and eliminated overdue and bad debts. Let's say the turnover is 6.5 times in the planning period instead of 5.9 times in the base period. Comparing the planned turnover with the base one in the absence of overdue and bad debts requires taking into account exactly 5.9 times, and not 5.3 times. Then the minimum planned amount of accounts receivable is: 4510 x 5.9/6.5 = 4094 thousand rubles. instead of 4510 thousand rubles.

Taking into account similar factors, accounts payable to suppliers are planned (Table 9.4).

Table 9.4 - Calculation of the planned amount of accounts payable to suppliers

Explanation of the calculation.

Page 1 gr. 3 and 4, taking into account the same turnover and the absence of overdue accounts payable to suppliers, it is calculated as follows: 281 x 4950/4818 = 289 thousand rubles.

If in the planning period the composition of suppliers or the contractual terms of settlements with them changes, which leads to a change in the turnover of accounts payable, then the calculated value changes inversely in proportion to the use of the number of turnover in the same way as we calculated accounts receivable above.

Accounts payable for wages, social insurance and security, as a rule, depend on the established frequency of settlements with employees of the enterprise and extra-budgetary funds, respectively. Therefore, it can be calculated for the planning period based on the amount at the end of the base period, increased in proportion to the increase in labor costs and contributions to extra-budgetary funds as part of the costs of products sold in the planning period. The basic amount of accounts payable for contributions to extra-budgetary funds and wages in accordance with our balance sheet data and the growth rate of these costs is equal to: (384 + 180) x 123.6/100 = 697.1 thousand rubles.

It is more difficult and time-consuming to determine with a sufficient degree of accuracy the planned amount of accounts payable to the budget. If the enterprise does not have overdue debts to the budget, then the base amount reflects the required amount of debts corresponding to the established frequency of payments to the budget for different types taxes. However, in connection with the change in sales revenue and profit in the planning period compared to the base period and maintaining the size of all other objects of taxation, it is necessary to calculate the increase in income tax, VAT and all Other taxes, the amounts of which depend on sales revenue and wage fund profit. This is done by direct calculation, based on the specific data of each enterprise. In our case, the increase in income tax, VAT, transport tax, maintenance deductions housing stock and objects of the social and cultural sphere will amount to a total of 236.5 thousand rubles. Then, for the Calculation, it is necessary to determine the percentage of accounts payable for these taxes to the total amount of payments due for them in the base period. At our enterprise it is 11.5%. This means that the increase in accounts payable to the budget is equal to 236.5 x 11.5/100 == 27.2 thousand rubles. Of course, this value is calculated with some tolerance. But for drawing up the planned balance, the error can be ignored since debt to the budget, as a rule, is not a quantitatively decisive part of the enterprise’s accounts payable.

Thus, we calculated the planned amounts of assets and liabilities, which change under the influence of changes in sales revenue, prices for purchased raw materials, supplies and services, and the level of wages. These factors operate at every enterprise constantly, so they must be taken into account when drawing up any planned balance sheet.

As noted above, there may be other reasons under the influence of which assets and liabilities change, but they are of a different nature and are associated mainly with changes in the investment and financial policies of the enterprise. If such reasons occur, non-current assets, capital and reserves, long-term liabilities, bank loans, and short-term financial investments may change.

In our calculations, we assume that no such changes occurred in the planning period compared to the base period. If they were, then the calculation of changes in the named elements of assets and liabilities is carried out by direct calculation and is not difficult.

Based on the calculations made, we will draw up a planned balance sheet for the enterprise. At the same time, it must be borne in mind that in the planned balance sheet, compiled based only on changes in assets and liabilities, the total amounts of the cost of property and sources of financing will not necessarily coincide. On the contrary, as a rule, they do not coincide, and either a surplus or a lack of sources of financing is revealed in comparison with the required amount of assets. Only after this can the issue of directing planned profits to replenish funding sources be decided, if it turns out that this is necessary. Therefore, for now, at this stage of planning, we do not consider in more detail the size of the enterprise’s planned profit. When drawing up the balance sheet, we will also take into account that capital and reserves in the base period occupy a very large specific gravity in funding sources. The company uses very few borrowed sources. It is hardly advisable to increase capital and reserves even more, even if such a possibility exists.

When drawing up the planned balance sheet, we will take into account that we calculated inventories and receivables at the minimum and maximum levels. VAT on purchased materials will increase in proportion to the increase in the cost of inventories, i.e. it will be equal to 163 x 1187 / 1155 = 168 thousand rubles, or 163 x 1394/1155 = 197 thousand rubles. Height Money we accept it in proportion to the growth of sales revenue, i.e. 84 x 1.1 = 92 thousand rubles.

Table 9.5 – Estimated planned balance of the enterprise at the end date of the planning period (thousand rubles)

The calculation shows that if all parameters of the planned balance sheet are determined correctly, then the financial situation in the coming period will be favorable for the enterprise: the amount of funding sources exceeds the cost of the necessary assets, and if inventories and receivables have a minimum estimated value, then this excess is significant increases. This means that the enterprise does not need to seek additional sources of financing even in the face of increased sales revenue and prices for purchased material resources.

Obviously, there is no need to direct any part of the profit to increase capital and reserves; profits can be used entirely for other purposes.

With a different balance sheet structure, a different increase or decrease in sales revenue and certain types of costs for products sold, a different structure of the costs themselves, etc., the conclusions could be completely different. It could turn out that the excess of funding sources over assets is even more significant or, conversely, the enterprise requires additional sources. Then it would be necessary to increase equity capital, attract loans and borrowings, or change the contractual terms of settlements with suppliers.

9.3. Changes in financial and cash flows when sales revenue changes

Let's consider the relationship between changes in sales revenue, costs and profits, on the one hand, and changes in the assets and liabilities of the enterprise, on the other, according to the largest factors. Such a discussion will be somewhat schematic in nature, but will allow a clearer understanding of the decisive factors that influence this relationship.

Let us accept the following conditions.

1. Accounts receivable turnover - 45 days;
2. Accounts payable turnover -40 days;
3. Inventory turnover - 30 days;
4. Material costs - 50% of sales revenue;
5. Free profit - 6% of sales revenue.

Under all these conditions, sales revenue is planned to increase by 100 thousand rubles. What will happen to the balance sheet data?

Accounts receivable will naturally increase. If the additional annual cost products sold 100 thousand rubles, then the additional receivables will be:

100 x 45/360 = 12.5 thousand rubles.

Inventories will increase in proportion to the increase in material costs as part of sales revenue, and taking into account their turnover, the increase in inventories is equal to: 50 x 30/360 = 4.2 thousand rubles.

Accounts payable generated primarily upon acquisition material resources, will increase by 50 x 40/360 = 5.5 thousand rubles.

Thus, the increase in assets under the influence of an increase in sales revenue will be 12.5 + 4.2 = 16.7 thousand rubles; increase in sources of financing in the form of accounts payable - only 5.5 thousand rubles. The company needs additional sources of financing in the amount of 16.7 - 5.5 = 11.2 thousand rubles. Even if you use the enterprise’s free profit to increase its own sources, the need for additional borrowed funds will be equal to 11.2 - 6 = 5.2 thousand rubles.

Under the same initial conditions, sales revenue does not increase, but decreases by 100 thousand rubles. in the planning period compared to the base period. Then accounts receivable will correspondingly decrease by 12.5 thousand rubles, inventories - by 4.2 thousand rubles, and accounts payable - only by 5.5 thousand rubles. Available sources of financing in the amount of 11.2 thousand rubles. turn out to be excessive compared to the need for assets, and the profit in full can be used for other purposes.

The given example does not mean that in all cases an increase in sales volume creates the problem of additional sources of financing, and a decrease eliminates this problem. Let's consider other options in which the situation is different (Tables 9.6 and 9.7).

Table 9.6 - Changes in the assets and liabilities of the enterprise when the terms of settlements with customers and suppliers change and the growth of sales revenue

The calculation shows that with the same increase in sales volume and the same annual demand for inventories, the shortage or surplus of sources of financing is determined only by the ratio of the turnover of receivables and payables and inventories. Let us repeat the conclusion that was already made earlier: for the financial condition of an enterprise in the event of the prospect of an increase in its sales volume, it is favorable when the turnover of accounts receivable is faster than the turnover of accounts payable. The lower the share of material costs in sales revenue, the larger the gap in the number of days of turnover of receivables and payables is required to ensure that sources of financing cover assets associated with an increase in sales volume. To illustrate this conclusion, in the following calculation we will take as initial data options II and III of the previous table, where sources of financing exceed assets. Let's change only one condition: the share of material costs in sales revenue is 40% instead of 55%.

Table 9.7 – Change in assets and liabilities of an enterprise when the share of material costs in sales revenue changes

A comparison of the last rows of the two previous tables shows that a decrease in the share of material costs while maintaining all other calculation conditions led to a deterioration in the ratio of assets and sources of financing.

It is clear that in each individual case, an increase in sales revenue will lead to either a shortage or an excess of sources of financing, depending on other indicators of the enterprise. The same conclusion can be drawn for the case of a decrease in sales revenue.

Therefore, when forecasting an increase or decrease in sales revenue, it is necessary to calculate whether the available sources are sufficient to cover the growing assets (or whether the decrease in sources will be greater than the decrease in assets). If this is so, then it is necessary to provide for specific additional sources of financing, or borrowed ones.

When drawing up a planned balance sheet, it is advisable to calculate the planned level of solvency of the enterprise. At our enterprise, as we have seen, the overall coverage ratio and the current liquidity ratio are quite high in the base period. According to the planned balance, the current liquidity ratio is (minimum) 5957: 2489 = 2.393. This level of solvency does not cause concern, and from this point of view, the balance does not need to be adjusted, especially since the company has a small need for inventories.

Calculations of the increase or decrease in assets and liabilities contain information about the increase or decrease in solvency ratios. For example, if current assets increase by 16.7 thousand rubles, and short-term debts by 5.5 thousand rubles, this is a factor in the growth of solvency. Conversely, if short-term debt increases faster than the growth of current assets, it is necessary to check how much the overall coverage ratio or current liquidity ratio decreases.

In general, it should be borne in mind that with any improvement in the terms of settlements with creditors compared to the conditions of settlements with buyers, i.e., with the acceleration of the turnover of receivables or the slowdown of the turnover of accounts payable, the level of solvency of the enterprise decreases. If before this it was on the verge of critical, this is dangerous for the enterprise; in other cases, a faster turnover of receivables compared to accounts payable is favorable from the point of view of its financial condition.

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The object of regulation is the existing financial resources of the enterprise, debt obligations, liquid assets. The task of financial management is to reduce losses and maximize business profitability.

Financial management focuses on strategic goals companies quickly adapt to changing situations. The financial flow management structure is closely integrated with the company’s departments in order to control the amount of profit (loss) for each management decision.

Tasks

From a management perspective, financial management is seen as part of overall business management and a separate department in the company, performing a narrow list of functions.

• Financial management as a management system includes the creation financial strategy, construction of accounting policies, implementation of accounting software products, constant monitoring of the company's performance. For example, the tasks of financial managers include building a budget, a system material motivation personnel.
• Financial management, as a separate department, manages financial assets and risks, monitors cash flows, selects investment projects to participate, monitors information flows in the company. For example, the assessment of acquired fixed assets is carried out after studying the accompanying documentation.

The financial manager determines the company's investment policy (the list of projects in which assets are invested), manages tangible assets (executes purchase and sale transactions of fixed assets), calculates and pays dividends to shareholders. The constant task of financial management is the classification and accounting of the company’s income and expenses, and the preparation of analytical reports for management.

The effectiveness of financial management depends on the quality of external sources of information that are used to collect and analyze indicators. For example, open data from banks and insurance companies, information from competitors, regulatory requirements supervisory authorities and the financial statements of the enterprise must be checked for completeness and accuracy.

Principles

Regardless of the specifics of the company, the current and strategic goals of its development, financial management is a systemic activity aimed at solving specific problems by distributing cash flows. The activities of a financial manager are aimed at solving strategic problems and achieving financial well-being in the long term.

• Trade-off between risk and return. Financial management considers opportunity costs, overall market efficiency, projected returns and associated risks before making a decision. management decisions. For example, investing in startups brings high returns and is accompanied by the risk of losing investments.
• Asymmetry and time value of information. Confidential information about market characteristics obtained from counterparties or regulatory authorities can bring benefits in the short term. For example, a “tax holiday” for companies conducting R&D may last for two years.

Financial management assumes an unlimited period of operation of the company, strives to respect the interests of business owners and employees, and fairly evaluates available sources of financing.

— is the management of a company’s finances, aimed at achieving the strategic and tactical goals of the company’s functioning in the market.

The main issues of financial management are related to the formation of enterprise capital and ensuring its most effective use.

Currently, the concept of “financial management” implies a variety of aspects of financial management of an enterprise. A number of areas of financial management have received in-depth development and emerged as relatively independent scientific and educational disciplines:

• higher financial computing;
• investment analysis;
• risk management;
• crisis management;
• assessment of the company's value.

A Brief History of Financial Management

Financial management as a scientific direction originated at the beginning of the last century in the USA and in the first stages of its formation it mainly considered issues related to the financial aspects of creating new firms and companies, and subsequently - financial investment management and bankruptcy problems.

It is generally accepted that this direction was started by G. Markowitz, who developed in the late 1950s. portfolio theory, on the basis of which W. Sharp, J. Lintner and J. Mossin a few years later created a model for estimating the return on financial assets (CAPM), linking the risk and return of a portfolio of financial instruments. Further development this area led to the development of the concept of an efficient market, the creation of a theory arbitrage pricing, option pricing theory and a number of other models for valuing market instruments. Around this time, intensive research began in the field of capital structure and the price of sources of financing. Main contribution by this section was made by F. Modigliani and M. Miller. The year of publication of their work “Cost of Capital. Corporate finance. Investment Theory" 1958 is considered a milestone when FM emerged as an independent discipline from applied microeconomics. Portfolio theory and capital structure theory can be called the core of financial management, since they allow us to answer two main questions: where to get money from and where to invest it.

The role of financial management in managing an organization

Financial management is carried out through financial mechanism, which can be defined as an action system financial methods, expressed in the organization, planning and stimulation of use.

1. State legal regulation financial activities enterprises.
2. Market mechanism for regulating the financial activities of an enterprise.
3. Internal mechanism for regulating the financial activities of the enterprise (charter, financial strategy, internal standards and requirements).
4. A system of specific techniques and methods used at an enterprise in the process of analysis, planning and control of financial activities.

represent a system economic relations related to the formation, distribution and use of funds in the process of their circulation. The market environment and the expansion of independence of adoption have led to a sharp increase in the importance of financial management in the management of any economic structure.

The concept of “management” can be viewed from three sides:

• as a system of economic management of the company;
• as a governing body;
• as a form of entrepreneurial activity.

The development of market relations in our country, which has given enterprises the opportunity to independently make management decisions and manage the final result of their activities, together with radical change, emergence, introduction of new forms of ownership, improvement of the system accounting, led to an awareness of the importance of financial management as a scientific discipline and the possibility of using its theoretical and practical results in management Russian enterprises and organizations.

Objectives of financial management

• increase in the market value of the company's shares;
• increase in profits;
• consolidating a company in a specific market or expanding an existing market segment;
• avoiding bankruptcy and major financial failures;
• improving the well-being of employees and/or management personnel;
• contribution to the development of science and technology.

1. Achieving high financial stability of the company in the process of its development. This task is achieved through the formation of an effective policy for financing economic and investment activities company, managing the formation of financial resources from various sources, optimizing financial structure company capital.

2. Optimization of the company's cash flows. This task is achieved by effective management solvency and absolute liquidity. At the same time, the free balance of cash assets should be minimized in order to reduce the risk of depreciation of excess cash.

3. Ensuring that the company's profits are maximized. This task is implemented by managing the formation of financial results, optimizing the size and composition of the financial resources of the company’s non-current and current assets, and balancing cash flows.

4. Minimizing financial risks. This goal is achieved by developing effective system risk identification, quality and quantification financial risks, identifying ways to minimize them, developing an insurance policy.

Functions of financial management

• organization and management of the enterprise’s relations in the financial sector with other enterprises, banks, insurance companies, budgets of all levels;
• formation of financial resources and their optimization;
• placement of capital and management of the process of its functioning;
• analysis and management of company cash flows.

Financial management includes management strategy and tactics.

Management strategy- the general direction and method of using means to achieve the goal. This method corresponds to a certain set of rules and decision-making constraints. Management tactics- these are specific methods and techniques for achieving a goal within the framework of certain conditions economic activities of the enterprise in question.

Financial management functions:

Planning function:

• development of the company's financial strategy; formation of a system of goals and main indicators of its activities for the long term and short term; carrying out long-term and short-term financial planning; drawing up a company budget;
• formation pricing policy; sales forecast; analysis economic factors and market conditions;

Function of forming the capital structure and calculating its price:

• determining the overall need for financial resources to support the organization’s activities; formation and analysis of alternative sources of financing; formation of an optimal financial capital structure that ensures the value of the company;
• calculation of the price of capital;
• formation effective flow reinvested profits and depreciation charges.
• investment analysis;

Investment policy development function:

• formation of the most important areas for investing the company’s capital; assessment of the investment attractiveness of individual financial instruments, selection of the most effective of them;
• formation of an investment portfolio and its management.

Working capital management function:

• identifying the real need for certain types assets and determining their value based on the company’s expected growth rate;
• formation of an asset structure that meets the company’s liquidity requirements;
• increasing the efficiency of using working capital;
• control and regulation monetary transactions; cash flow analysis;

Financial risk analysis function:

• identification of financial risks inherent in the investment and financial and economic activities of the company;
• analysis and forecasting of financial and business risks;

Evaluation and consultation function:

• formation of a system of measures to prevent and minimize financial risks;
• coordination and control of the execution of management decisions within the framework of financial management;
• organizing a system for monitoring financial activities, implementing individual projects and managing financial results;
• adjustment financial plans, budgets of individual departments;
• holding consultations with heads of company departments and developing recommendations on financial issues.

Information support for financial management

Specific indicators of this system are formed from external and internal sources, which can be divided into the following groups:

1. Indicators characterizing the general economic development of the country (used when making strategic decisions in the field of financial activities).
2. Indicators characterizing the financial market conditions (used when forming a portfolio of financial investments and making short-term investments).
3. Indicators characterizing the activities of competitors and counterparties (used when making operational management decisions).
4. Regulatory indicators.
5. Indicators characterizing the results of the financial activities of the enterprise (balance sheet, profit and loss statement).
6. Regulatory and planned indicators.

11. Methods for managing the financial stability of a company.

Financial condition (F.S.) is a complex concept that depends on many factors and is characterized by a system of indicators that reflect the availability and allocation of funds, real and potential financial capabilities. The main indicators characterizing the F.S.pred-tiya are: : provision of own working capital and their safety; the state of normalized inventories of material assets; efficiency of using a bank loan and its material support; assessment of the stability of the solvency of the enterprise. Analysis of factors determining financial condition helps to identify reserves and increase production efficiency. F.S. depends on all aspects of enterprise activity: on the implementation production plans, reducing the cost of production and increasing profits, increasing production efficiency, as well as from factors operating in the sphere of circulation and related to the organization of the circulation of commodity and monetary funds - improving relationships with suppliers of raw materials and materials, buyers of products, improving sales processes and settlements When analyzing it is necessary identify the reasons for the unstable state of the enterprise and outline ways to improve it. The stability of the financial position of an enterprise largely depends on the feasibility and correctness of investing financial resources in assets. The most general idea of ​​the qualitative changes that have taken place in the structure of funds and their sources, as well as the dynamics of these changes, can be obtained using vertical and horizontal analysis of reporting. Vertical analysis shows the structure of the enterprise's funds and their sources; the need and feasibility of this analysis lies in: - the transition to relative indicators allows for inter-farm comparisons of the economic potential and performance results of enterprises that differ in the amount of resources used; relative indicators smooth out to a certain extent Negative influence inflation processes that can significantly distort the absolute indicators of financial statements. Horizontal analysis reporting consists of constructing one or more analytical tables in which absolute indicators are supplemented by relative growth (decrease) rates. The degree of aggregation of indicators is determined by the analyst; as a rule, the basic growth rates for a number of years (adjacent periods) are taken, which makes it possible to analyze not only changes in individual indicators, but also to predict their values. An important group of indicators characterizing the financial condition of an enterprise are liquidity indicators - they characterize the ability of the enterprise to pay off its short-term obligations at the expense of its current assets. Among the liquidity indicators, the following indicators are calculated: 1. Absolute liquidity coefficient - showing what part of the current debt can be repaid using cash and quickly realizable valuable papers(standard 20-30%). 2. Quick liquidity ratio - showing what part of the current debt can be repaid not only from cash and marketable securities, but also from expected receipts from debtors (standard 70-80%). 3. Total liquidity coefficient - allows you to determine the extent to which current assets cover short-term liabilities (standard 200-250%). 4. Working capital - indicates the excess of current assets over short-term liabilities, the overall liquidity of the enterprise. 5. Liquidity ratio of material assets - shows to what extent material assets (inventories and costs) cover short-term liabilities. 6. Funds liquidity ratio in calculations - shows to what extent expected receipts from debtors will be used to repay short-term obligations. 7. The ratio of accounts receivable and accounts payable - shows the amount of accounts payable per 1 UAH. accounts receivable 8. Maneuverability coefficient - shows which part own funds invested in the most liquid assets (standard >= 0.5). Solvency characterizes the ability of an enterprise to make regular payments and fulfill monetary obligations using cash, as well as easily mobilized assets. Among the indicators of solvency, the following are calculated: 1. Coefficient of economic independence (autonomy) - characterizes the part of own funds in the total value of the property (>0.5). 2. Financing ratio - shows what part of the enterprise’s activities is financed from its own funds (>1). 3. Debt ratio - shows what part of the enterprise’s activities is financed by borrowed funds (<1). 4.Коэффициент обеспеченности запасов и затрат собственными средствами - показывает, какая часть материальных ценностей покрывается за счет собственных средств (>0.8). 5. Inventory coverage ratio - shows what part of inventory is covered from own funds (>0.5). 6. Working capital coverage ratio - shows what part of working capital is covered from own funds (>0.5). The final conclusion about the financial condition of the enterprise can be made only after calculating the general indicators of the financial stability of the enterprise, which characterize the availability of resources at the enterprise, as well as their sufficiency for the formation of reserves and costs. When assessing the financial condition, it should be taken into account that: 1. If E1, E2, E3 > 0 then the enterprise has absolute financial solvency; 2.If E1< 0, Е2 >0, E3 > 0, then normal; 3.If E1< 0, Е2 < 0, Е3 >0, then unstable financial situation; 4.If E1< 0, Е2 < 0, Е3 < 0, то кризисное положение,Е1 излишек (недостаток) собственных оборотных средств для формирования запасов и затрат; Е2 излишек (недостаток) собственных оборотных, долгосрочных заёмных средств для формирования запасов и затрат; Е3 излишек (недостаток) собственных оборотных, долгосрочных и краткосрочных заёмных средств для формирования запасов и затрат.

20. Intensive factors include:
improving the functioning of the resources used, increasing the time of resource use;
(*answer to test*) improving the process of functioning of the resources used, improving the quality characteristics of the resources used;
increasing the time of resource use, improving the quality characteristics of the resources used;
increasing the time of resource use, increasing the number of resources used.

21. The basic concepts of financial management include:
Capital structure theory
Keynesian theory
Discounted Cash Flow Theory
(*answer to test*) D) Statements A and B are correct.

22. Predicative models are:
descriptive models
factor models
(*answer to test*) predictive models
deterministic models.

23. In theoretical terms, financial management is based on key provisions:
monetarist theory
Marxist theory
(*answer to test*) neoclassical theory of finance
Keynesian theory.

24. As an independent scientific direction, financial management was formed at the junction of:
neoclassical theory of finance and accounting
accounting and general theory management
theory of finance and general theory of management
(*answer to test*) D) neoclassical theory of finance, general theory of management and accounting.

25. Neoclassical finance theory appeared in
(*answer to test*) in the 20th century;
in the 17th century;
during the Roman Empire;
in the 9th century.

26. As an independent scientific direction, financial management was formed in:
(*answer to test*) early 60s. XX century;
late 60s XX century;
early 50s XX century;
early 70s.

27. The essence of cash flow comes down to:
(*answer to test*) presentation of an enterprise as a set of alternating inflows and outflows of funds;
presentation of the state budget as a set of alternating inflows and outflows of funds;
presenting any transaction as a set of alternating inflows and outflows of funds;
all of the above answers are correct.

28. The essence of the concept of time value of money is:
(*answer to test*) the money we have at different points in time has unequal value;
the money we have at different times has the same value;
inequality of monetary units due to inflation and risk;
Answers A and B are correct.

29. The concept of risk-return trade-off states:
earning income in business involves risk, and the relationship between profitability and risk is inversely proportional;
earning income in business does not involve risk, and there is no connection between profitability and risk;
(*answer to test*) earning income in business involves risk, and the relationship between profitability and risk is directly proportional;
There is no correct answer among the above answers.