Methods for assessing the effectiveness of the use of financial resources of the enterprise

It's no secret that for the start of its operations and future success of the market any business entity requires various types of resources: labor, material, financial, etc. In a market economy increases the importance of financial resources to help by forming optimal structure and productive capacity-building enterprises, as well as funding for ongoing business. From what has capital of the entity, as far as its structure is optimal, as appropriate, it is transformed into fixed and circulating capital depends on the financial well-being of the company and its financial performance. The concept of effective use of financial resources, as well as any other types of resources includes a comparison of quantity and quality of resources expended in the qualitative and quantitative expression achieved in the corresponding period of the results. Evaluating the effectiveness of the use of financial resources includes various components. To evaluate the effectiveness of financial resources the company uses a whole system of indicators of the changes: 1. the capital structure of the organization on its location and source of education, 2. efficiency and intensity of use; 3. solvency and creditworthiness of the organization 4. stock of its financial stability. The main purpose of evaluating the effectiveness of the use of financial resources of the enterprise is to improve organizational performance through the introduction of more sophisticated methods of financial resources and management. From the purpose of assessing the effectiveness of financial resources derive its main objectives: to identify the financial situation and to identify factors influencing the formation of financial resources, the definition of "narrow" places, adversely affecting the financial condition of the company, identification of farm reserves to strengthen the financial position. You can identify the main methods for evaluating the effectiveness of financial resources. 1. The method of calculating cost-effectiveness. Profitability shows the profit obtained from each ruble funds invested in the company or other financial transactions. Greatest importance are indicators of profitability, which include: return on sales, return on equity, return on operating assets, return on fixed assets, return on investment. Profitability more fully than profit, reflect the results of the company and are used as instruments of investment, pricing policies. 2. The method of analysis of financial ratios (R-analysis) is based on calculating the correlation of various indicators of financial activity between them. In financial management the most widely used analytical group of the following financial ratios: ratios assess the financial sustainability of the enterprise, and the coefficients assess the solvency (liquidity), the coefficients estimates the turnover of assets, the coefficients estimates of capital turnover, and 3. The method of valuation of financial resources. The cost of business capital is a measure of profitability of operations and describes the portion of the profits to be paid for the use of generated or attracted new capital for the issuance and sale of products. Calculated as follows: cost-functioning equity companies, the cost of debt capital in the form of bank loans, the cost of debt capital, attracted by issuing bonds, the weighted average cost of capital, the marginal efficiency of capital. Assessment of cost-of capital should be completed by the elaboration of the criteria of the efficiency of its additional attraction. So criterial measure is the marginal efficiency of capital. This indicator shows the ratio of growth in profitability and capital employed an additional increase in the weighted average cost of capital. 4. A method of estimating structure and motion of the company's capital. Involves evaluating the effectiveness of the use of financial resources of the enterprise with the help of indicators of capital (assets) of companies, which include rates income, disposal and use, calculated across the combined capital and its components, as well as determining the ratio of debt to equity. In many books on financial analysis, along with the definition of a financial index generally indicate its target specification, for example, the amount of borrowing should not exceed 50% of total funding. That is, only in this case the company will have sufficient financial autonomy and is not facing bankruptcy. However, in evaluating the use of financial resources should be borne in mind that many experts are of the highest estimate of the effectiveness of the company's management believed its ability to successfully work through "other people's money", ie borrowed sources. Suffice it to recall that the activity of one of the largest global companies General Motors in its best periods of up to 90% funded through debt funding. The primary measure of effectiveness of an enterprise is to increase equity. In practice, it is considered that the share of equity is desirable to maintain a sufficiently high level, because this indicates a stable financial structure means that lenders prefer. It is expressed in a low specific weight of debt and a higher level of funds provided by their own means. It is protected from large losses during the downturn and credit guarantee. Determining the cost of capital is the basis for calculating the economic value added EVA. The indicator used to assess the efficiency of the enterprise from the perspective of its owners, who believe that the activities of the company has to have a positive result if the company managed to earn more than the profitability of alternative investments. This explains the fact that the calculation of EVA is deducted the amount of profit not only pay for the use of borrowed funds, and equity. Nearly index EVA is calculated as follows: EVA = (profit on ordinary activities - taxes and other obligatory payments - invested in venture capital, ie the sum of the liability balance) * weighted cost of capital from the formula that an important role in calculation of the EVA framework are sources of financial resources of the enterprise and price sources. EVA allows investors to answer the question: what kind of financing (own or borrowed) and some amount of capital required for a particular value of profits. The essence of the EVA is manifested in the fact that this figure reflects the addition of value to market value of the company and evaluate the effectiveness of the enterprise through the definition of how a company valued by the market. The market value of the company's net assets = (at book value) + EVA in future periods, reduced to this point in time the EVA determines the behavior of the owners of the company in relation to investment in this venture. Evaluating the effectiveness of financial resources needed for decision making, to increase profitability, identifying the causes of loss, as well as ensuring a stable financial condition. Of how well done this estimate depends on the efficiency of decision-making related to the continued use of their own, borrowed and borrowed funds. Frequency of evaluation of the effectiveness of financial resources depends on the requirements of top management, as well as the company's capabilities to collect data for management reporting. Since the majority of Russian companies' managerial accounting data are based on accounting data, it makes sense to conduct financial analysis on a quarterly basis in conjunction with a complete accounting period of summarizing. Companies with well-developed information support businesses have the ability to monitor financial performance monthly, weekly and even daily. Thus, according to the magazine Economist, at the General Electric Company managers can track changes in indicators for which they are responsible for the day. Thus, it becomes clear, the results of evaluating the effectiveness of financial resources are the basis of developing measures to improve management of financial resources, better distribution of income, which ultimately enhances the value of the company.