Financial stability of an enterprise is an assessment of the risks associated with financing its work, thanks to attracted sources of funds. Any enterprise has two sources of financing activities: own and attracted. An own source of financing activities is a loan that is provided to the enterprise by its owner for the period during which its activities will be carried out. Accordingly, own source of financing is the amount that the company does not give to the creditor.
In addition, the financial stability of an enterprise is defined as a measure of providing the enterprise with the necessary financial resources to carry out economic activities and timely fulfillment of its obligations. An attracted source of funds, on the contrary, is characterized by precisely defined periods of existence - until the period when accounts payable should be repaid , in the sense of , existing loans are repaid. A loan is provided by the counterparty of the enterprise, given (counterparties) in general, this is He wonders if the counterparty will lend to your company. Hence, the financial stability of the enterprise (when there is such a source of financing activities as accounts payable) is associated with constant risks that the lender will stop lending to the company, and it will remain without sources of financing.
Analysis of the profitability of the enterprise makes it possible to assess its ability to bring profitability on invested funds. The financial stability of the enterprise, or rather, its indicators evaluate these risks. Analysis of the profitability of the enterprise, given this report, is associated with a certain difficulty arising from the rule how the balance sheet is built on the basis of property rights. The property that belongs to the company is taken into account especially from the property of another legal entity held by this company. Given this requirement, the assets of the balance sheet can only reflect property that is owned by the company as property. The property owned by the organization is shown on the off-balance sheet account. In the situation where the asset of the balance shows only the tangible property owned by the enterprise on the basis of ownership, the liability of the payable debt shows the volumes of one of the external financing of only that transaction by which the company can receive this property or money. A box office finance company are things that are owned by a company. The funds in the bank account of the organization are the obligations of the bank, its receivables to the company.
In addition, if the subject of the enterprise’s activity is property that does not belong to it on the basis of property rights, this means that the company’s counterparty in this transaction finances its activities, invests in the corresponding asset. In fact, for example, in order to carry out a lease transaction, it is required that landlords buy or manufacture certain property, that is, invest money in it. It should also be noted that the lease agreement (economic point of view) is a loan that lessors provide to tenants, and the rental fee is a percentage of these loans. Accordingly, for example, when a commission agreement is concluded, the committee finances the activities of commissioning companies and so on.
But, since the rule of constructing balance sheet assets according to the signs of property rights is in force, the amount of financing becomes invisible, given the data of the accounting report.