Assets and liabilities - a tool for assessing the performance of an enterprise

The balance of the organization is its assets and liabilities. And these two indicators are in close relationship. The sum of all the assets of the enterprise is always equal to the value of its liabilities and this balance balance equals balance. Those. when one of the indicators increases, the second increases by the same amount.

What is the assets and liabilities of the enterprise? Assets are the property and various resources of the organization, which can be expressed in monetary terms. They are used to make a profit. There are several types of them: current, long-term, intangible, and also financial investments.

To current assets it is possible to carry money,located on the current account or in the company cash desk. Long-term production facilities and equipment. Intangible assets are the intellectual property of the enterprise, and financial investments are investments that can not be used for the needs of the company in the near future, but in the future can bring him significant profits.

Liabilities are available to the enterprisecapital, as well as all obligations of the firm. They are composed of all production costs, borrowed funds and other debts of the institution. The liabilities include authorized capital, accounts payable, as well as the profit of the organization.

In order to analyze assets and liabilities forenterprise, after a certain period of time the balance sheet is compiled. On the basis of these indicators, it allows us to assess the current state of the firm and, if necessary, take measures to improve its performance.

Analysis provides the opportunity to manageassets and liabilities of the enterprise to maintain its profitability and reduce possible risks. Such management helps to properly allocate funds within the company, attract loans, and also facilitates timely financial investments in fixed assets.

Analyzing assets and liabilities, you can identifythe amount of current and permanent assets, the number of own and attracted funds, the dependence of the enterprise on borrowed resources, as well as the urgency of their repayment and other liabilities of the organization. That is, with their help you can assess the state of the company at the time of the analysis.

In assessing the financial condition of a firm, assets andThe liabilities are analyzed in absolute and relative terms. And also the temporary (comparison of reporting data with the previous period) and structural (revealing the influence of each indicator on the overall result) are conducted. Based on the results of the work carried out, further activities of the organization are planned.

Analysis of assets and liabilities of balance sheet accountsplays an important role in assessing the financial performance of the enterprise. It allows you to find shortcomings and make adjustments to the company to improve its profitability. He also helps to plan the economic activity of the organization depending on certain economic factors.

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