FINANCIAL ANALYSIS IN ACTIVITIES OF THE JOINT-STOCK COMPANIES

Анотація

The article considers the essence and role of financial analysis for assessing the activities of a jointstock company. The information base for conducting such an analysis is the financial statement, which is drawn up according to the National Provisions (Standards) of accounting and International Financial Reporting Standards. It is emphasized that the financial relations of a joint-stock company directly affect its development and financial policy. Financial analysis, in this case, is considered as a set of analytical procedures that are based, as a rule, on publicly available financial information and intended to assess the state and the efficiency in an economic potential usage of the organization, as well as the managerial decision-making on optimizing its activities or participation in it. The choice of the necessary analytical tool and the indicators framework that will ensure the comprehensive research and the enterprise’s presentation is fundamental to managerial decision-making. To analyze the company’s level of sustainable development it is proposed to use an analytical basis, which combines financial analysis with strategic management. Such an association is needed to explain the most important relations between variables in the strategic planning and financial variables, as well as to verify the compliance of objectives in the corporate growth and financial policy. The financial analysis allows us to determine the affordability of the company's existing opportunities for financial growth, establish how the company's financial policy will affect the future, and analyze the strengths and weaknesses of the company's competitive strategies. The results of financial analysis can be used to predict future situations, substantiate the projected plans, develop the company's strategy and development tactics, assess investment projects, etc. The financial analysis allows concluding the efficiency of resource use, evaluating the profitability and financial stability of the entity, establishing its competitive positions in the market, as well as quantifying the level of risk of activity and competitiveness.

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