InBridge Consulting"s financial diagnostics of the Company is an effective tool for making management decisions.
The result of financial diagnostics is a Report containing business analysis and draft management decisions to obtain competitive advantages.
An example of the structure of the Report on financial diagnostics and analysis of some indicators is given below.
A full Report provides for the analysis and provision of draft management decisions on more than 100 indicators with graphs, charts and other forms of displaying trends, conditions, etc.
Report on financial diagnostics and analysis of part of the characteristics (extraction)
Content
Introduction
Diagnostics
Liquidity diagnostics
Calculation and factor analysis of indicators
the amount of working capital (working capital)
total coverage ratio (liquidity)
quick ratio (interim liquidity ratio)
absolute liquidity ratio
fundraising liquidity ratio
Conclusions and draft management decisions
Balance sheet liquidity
liquidity sections of the balance sheet
current balance sheet liquidity
prospective balance sheet liquidity
balance sheet liquidity ratio with weight ratios
Conclusions and draft management decisions
Diagnosing Bankruptcy Probability
two-factor bankruptcy probability calculation model
five-factor model of calculating the probability of bankruptcy E. Altman
calculation of the probability of bankruptcy according to the Springate model
a modified version of the five-factor model for calculating the probability of bankruptcy E. Altman
calculation of the probability of bankruptcy according to the R. Lys model
calculation of the probability of bankruptcy by the universal discriminant function
calculation of the probability of bankruptcy according to the Tuffler model
model for calculating the probability of bankruptcy of V. Paren and I. Dolgalov
model for calculating the probability of bankruptcy by a rating number (P. Saifulin and G. Kadykov)
Conclusions and draft management decisions
Diagnostics of business activity
Calculation and factor analysis of indicators
return on assets
total assets turnover
the duration of one turnover of total assets
current assets turnover
the duration of one turnover of current assets
inventory turnover
the duration of one turnover of stocks
inventory turnover
the duration of one turnover of inventories
the effect of accelerating or decelerating the turnover of current assets
effect of accelerating or decelerating inventory turnover
the effect of accelerating or decelerating inventory turnover
receivables turnover
receivable repayment period
effect of acceleration or deceleration of receivables turnover
accounts payable turnover
average payable maturity
effect of accelerating or slowing accounts payable turnover
the value of the difference between the duration of the turnover of accounts payable and receivables equity turnover
the duration of one turnover of equity
effect of acceleration or deceleration of equity turnover
operational cycle
financial cycle
Conclusions and draft management decisions
Financial stability analysis
Calculation and factor analysis of indicators
coefficient of financial autonomy (independence)
concentration ratio of borrowed funds
financial risk ratio
equity maneuverability ratio
current debt ratio
long-term financial independence ratio
long-term investment coverage ratio
long-term borrowing ratio
coefficient of financial independence of capitalized sources
Conclusions and draft management decisions
Performance Diagnostics
Calculation and factor analysis of indicators
return on assets
profitability ratio of non-current assets
return on current assets
return on equity ratio
coefficient of gross margin of sales
profitability ratio of product sales
two factor model DuPont
three-factor DuPont model
five factor model DuPont
Conclusions and draft management decisions
Results and suggestions
Applications
Terminological dictionary
Diagnosing the probability of bankruptcy (example)
Two-factor bankruptcy probability calculation model
Financial diagnostics of the probability of the bankruptcy of the Company using a two-factor model
Five-factor model of calculating the probability of bankruptcy E. Altman (example)
Financial diagnostics of the probability of bankruptcy of the Company according to a five-factor model for calculating the probability of bankruptcy of E. Altman
Calculation of the probability of bankruptcy according to the Springate model (example)
Financial diagnosis of the probability of bankruptcy of the Company according to the Springate model
Conclusions and draft management decisions
The company in all probability models of bankruptcy is at risk
In all models of bankruptcy probability, there is a steady negative trend of deterioration in financial condition.
The company will go into bankruptcy, according to:
- a two-factor model for calculating the probability of bankruptcy - after one quarter;
- a five-factor model for calculating the probability of bankruptcy of E. Altman - in two quarters;
- calculating the probability of bankruptcy using the Springate model - after one quarter.
The main factors that influenced the negative trend in:
- two-factor model for calculating the probability of bankruptcy - reducing the coverage ratio, increasing the leverage ratio
- five-factor model for calculating the probability of bankruptcy of E. Altman - reducing the coverage ratio and transformation ratio
- calculating the probability of bankruptcy by the Springate model - reducing the share of working capital in the total value, reducing the share of pre-tax profit in the total value of assets.
Proposals for the prevention of bankruptcy and the negative trend of the solvency index:
increase the share of working capital in total assets by 17 percent
due date: within two quarters
reduce short-term liabilities by 44 percent
due date: within one quarter
maintain gross margin to short-term liabilities 2: 1
due date: within two quarters
Appendix: Procedure for the provision of Financial Diagnostics services