You will need
- Accounting balance sheet (form №1)
In the capital are:- investments – capital, representing the contributions of the participants;- the accumulated capital created by results of financial-economic activity of the enterprise – retained earnings or accumulated losses;- the additional capital is formed due to the revaluation of assets.
Balance each of the components of the structure of own capital represented by the relevant rows of the section "Capital and reserves". In particular, to determine the amount of the share capital at line 1310, additional paid-in capital – 1350, and undistributed profit (uncovered loss) – 1370.
But by themselves, these figures do not reflect the financial condition of the enterprise. It is more important to consider their share in the balance sheet and impact on the formation of current assets.
Regularly monitor the ratio of own capital in turnover in the organization. Calculate it by the formula: RMSE = (p. 1300-1100 p.) (form No. 1 balance).A positive value, the growth or stability of the index indicate financial stability of the enterprise, while a negative number suggests that the bulk of current assets formed at the expense of borrowed funds. Reducing the share of own capital in currency of balance and working capital over time can lead to impossibility of performance of obligations to partners and eventually to bankruptcy.
In addition, consider the share of own capital in their own working capital, which characterizes the ratio of own and borrowed sources of financing of the company. It represents the ratio of own funds in circulation to the value of current assets and is calculated according to the formula:Xxos = (p. 1300-1100 p.)/ p. 1200).
The availability of private capital also determines the ratio of financial independence or autonomy, that is, the security assets of the organization own sources of formation. The index of financial independence is calculated as private from division of cost of own capital on total assets:FSC = 1300 PG/(PG 1100+p. 1200).
Analyzing their own capital, pay attention to the growth rate - coefficient of safety. For its calculation we use the formula:Kssk = W1/СК0х100%, where W1 – the value of own capital at the end of the reporting period, and SC0 – at the beginning.The growth rate of private capital should be more than 100%, exceeding the growth rate of current assets and inflation over the same period. In this case we can talk about the prosperous financial condition of the enterprise.
Advice 2: How to determine a small business
When starting one's own enterprise's future leaders don't know what criteria you can define a small enterprisethat has a number of advantages in comparison with medium and large.
You will need
- -data on the revenue of the company for the calendar year;
- -information about number of employees.
As the law States, small enterprises are commercial organizations, in which capital the share of participation of religious and charitable organizations, public associations and other bodies of the Russian Federation does not exceed twenty-five percent of the share that belongs to a person who is not a small business entity, also does not exceed twenty-five percent.
To determine whether the company is small, check the data on the earnings of the company from the sale of goods and services for the previous calendar year for small businesses, this indicator should not exceed 400 million rubles.
Also find out the number of employees. A condition limiting the number of workers in the attribution of businesses to a particular class depends on its scope.
So, if the scope of your activities - small business, your company must meet the following criteria (the number of employees is calculated as an average per calendar year):- if the company belongs to the transportation, industrial or construction industry, the staffing shall not exceed one hundred persons; - if the company belongs to scientific, technical, or the agricultural sector – it may not work more than sixty people;- if the enterprise belongs to the field of wholesale trade number of employees should not be more than fifty people;- if the scope of the company includes the retail trade and household service of the population – it should work not more than thirty persons;- if the company specializiruetsya in other areas and conducts other activities – a state shall not exceed fifty people.
Also, if possible, find out the percentage of firm's working capital relative to its main Fund. Small businesses, the ratio is much higher, than big: it usually is about 20:80 to 80, small:20 large.
Also find out whether the inherited enterprise relatives of the owner. If so, most likely, it is a small enterprise, as in the case with medium and large business, this is very rare.
Small businesses is not a legal form, not view, like joint lease, etc., and size. The concept of a small enterprise can be attributed to any kind of enterprises for example small private or small public company.
Is the advice useful?
If the company diversified, that is, carries out several activities. Find out the area that brings the greatest annual income, it is determined by the size of the enterprise.