This work was carried out at the Minaz Automotive Transport Company. Its objective was to analyze and evaluate the financial situation of this entity in the first quarters of 2009 and 2010. The financial statements were taken as a source of information.
analysis-and-evaluation-of-the-financial-situation-of-a-company-1It is structured in three chapters, the first is the Conceptual Framework, in which the fundamental and most important concepts in the study of economic sciences are exposed. In the second chapter the characterization of the company is carried out, where it includes the corporate purpose, the structure and the mission of the company.
In the third chapter an analysis of the economic situation of the company is made, analyzing the Financial Statements through the application of financial ratios, in addition to the economic analysis of the main indicators of the entity, the analysis and evaluation of the information is carried out financial of the periods analyzed.
At the end, the conclusions reached are proposed and a series of recommendations are proposed to the company, with the aim of contributing to the solution of the problems detected. The bibliography used and the annexes that have supported the work development.
If we take into account the current conditions in which the Cuban economy operates, where market relations occupy a primary place in the commercial relations of our country, it is increasingly necessary for the economy to function properly and to increase efficiency in its use. of the resources that a company possesses constitutes the central objective of the economic policy of the Party and the Socialist State.
The Cuban economy has had to transform and its way of functioning has changed, but even without changing its socialist essence, and in a few years and unfavorable conditions, a recovery process has begun with irreversible tendencies that places the country in conditions, albeit modestly, of being a participant. world trade asset.
For companies in our country, economic efficiency is of great importance for the development of the economy, which is why the economic concept must be perfected in the way of acting, controlling and demanding.
Taking into account all the aforementioned, it was decided to do this work at the MINAZ Automotive Transport Company, our fundamental objective is the analysis and interpretation of the financial reasons, as well as evaluating alternatives that facilitate decision-making methods that allow In addition, the application of procedures to improve the recording of accounting events, the correct and more precise calculation of the Financial Statements, with the support of their analysis in order to have a well-detailed idea of the current situation at all times that would allow said entity provide the maximum to achieve efficiency and effectiveness in its activities.
CHAPTER I
Conceptual framework
- The accounting records, classifies and summarizes, in monetary terms, the economic operations that take place in an entity and through it the results obtained are interpreted, representing an effective means for the management of the same. It constitutes a service of exceptional importance for, among other aspects, facilitate:
- Management decision-making, as it is an effective management tool. Planning and control of operations. Control by areas of responsibility. Coordination of activities. Information to external stakeholders, the board of directors and the collective of workers..The demand by the administration and the analysis of efficiency. The formulation, complementation and appreciation of administrative rules. Accounting is not an end in itself, but represents a means to obtain the information required for the The entity's management.The Cuban Financial Information Standards that come into force are the result of the process of perfecting the exercise of the accounting profession carried out by the country.The existence of general accounting standards for business activity, which define generally accepted accounting principles, valuation and disclosure standards, and the national accounts nomenclature, has obtained a significant place. The Cuban financial reporting standards presented are harmonized with international financial reporting standards, taking into account the characteristics of the Cuban economy. The process carried out by the Cuban accounting standards committee allows that: a) The prepared financial statements comply with the aforementioned standards in all substantial aspects also revealing this compliance. b) Ensures a coherent harmonization of the content of financial statements issued in the country with international standards,Financial information in force at the time of harmonization referred to by each Cuban financial information standard. c) Ensures that auditors verify that financial statements comply with all relevant elements, with Cuban financial reporting standards harmonized with current international standards..d) It is earned in the quality of the financial statements and in the degree of comparability. The term "Financial Statements" covers all of these prepared according to the Cuban accounting standards on the presentation of financial statements, either for business activity. or of the financial administration of the Cuban State.The rules are applicable to all public and private entities, international economic associations and the cooperative and peasant sector based in the country,as well as the operations derived from the financial administration of the Cuban State. The management of the entities can prepare internal financial statements, using the criteria that it deems most convenient in relation to the decision-making process, however, when these are presented for the Information to other people must be drawn up in accordance with Cuban financial reporting standards. Responsibility, in relation to the preparation and presentation of financial statements, rests with the entity's top manager.When these are presented for information to other persons, they must be drafted in accordance with Cuban financial reporting standards. The responsibility, in relation to the preparation and presentation of the financial statements, corresponds to the entity's top manager.When these are presented for information to other persons, they must be drafted in accordance with Cuban financial reporting standards. The responsibility, in relation to the preparation and presentation of the financial statements, corresponds to the entity's top manager.
CUBAN STANDARDS FOR FINANCIAL INFORMATION
- The presentation of financial statements is subject to regulation by the Ministry of Finance and Prices, with the assistance of the Cuban Accounting Standards Committee. General accounting standards are formulated as a result of the harmonization of international ones. Specific accounting standards are formulated to respond to economic events not regulated in the general accounting accounting interpretations will be technical documents issued by the Cuban accounting standards committee, to address issues of discussion and set a position to have the conceptual framework for the presentation of the financial statements.
SCOPE OF THE STANDARDS
- Any type of limitation, if any, regarding its application will be clearly expressed in each Cuban financial reporting standard. The rules that will not be applicable to relatively minor items, will be in force from the date indicated therein, lacking retroactive effect unless otherwise indicated.
PURPOSE OF THE FINANCIAL STATEMENTS
The financial statements constitute a structured representation of the entity's financial situation and financial management.
Their purpose for general information purposes is to provide information about the financial situation that is useful to the wide variety of users when making their economic decisions. The financial statements also show the results of the management performed by the administrators with the resources entrusted to them.
In our country, the preparation by all entities located in the country, as of January 1997, of the financial statements are established as mandatory:
- Situation Statement, Income Statement, Production Cost or Merchandise Status, Investment Movement Statement, State of Origin and Application of Funds.
Many entities present, apart from the financial statements, a financial analysis prepared by Management that describes and explains the characteristics of the company's financial situation, as well as the most important uncertainties they face. This report may include an examination of:
- The main factors and influences that have determined the financial situation, including changes in the environment in which the entity operates, the response that the entity has given to such changes and their effect, as well as the investment policy that it follows to maintain and improve the same, including its investment performance policy The entity's resources whose value is not reflected in the balance that has been prepared according to Cuban financial reporting standards.
IDENTIFICATION OF THE FINANCIAL STATEMENTS
The financial statements are clearly identified and must be separated from any other information published in the same document. Each of the financial statements is clearly identified. In addition, the following information shows the prominent place, and is repeated as many times as necessary for a correct understanding of the information presented:
- The name or other type of identification of the reporting entity, as well as any changes to that information since the date of the preceding financial statements If the financial statements belong to the individual entity or a group of entities. the period covered by these, as appropriate to the component thereof The presentation currency, as defined in the Cuban accounting standards on operations with convertible pesos The level of aggregation and rounding used when presenting the figures of the States Financial.
STATUS OF SITUATION OR BALANCE SHEET
Concept:
It is a document that shows the financial situation of an entity of the Public or Private Sector, on a certain date. It can also be considered a financial statement by showing the economic situation and ability to pay of an entity on a given date.
Characteristics:
- It shows the assets, liabilities and equity of an entity. The information it provides corresponds to a specific date and therefore is a static financial statement. It is made based on the balances of the actual accounts. Its use and issuance are both character internal as external.
STATEMENT OF INCOME
Concept:
This document presents the result of a fiscal year or of a determined period of an entity of the Public or Private Sector, as well as the method by which this is determined.
Characteristics:
- The information it provides corresponds to a given financial year or period and is therefore a dynamic financial statement. It is prepared based on the balances of the nominal accounts. Its use and issuance are both internal and external.
REASONS:
One of the most widely used and disseminated techniques in the Economic-Financial Analysis of any entity is precisely through the use of Financial Ratios.
One reason is an index, a coefficient. A ratio is a simple mathematical expression of the relationship of one number to another, which is taken as a unit or one hundred percent. They can be expressed in different measurement units: sometimes, percent, days, value.
A reason by itself says something, but when we are going to qualify the result as good or bad, favorable or unfavorable, we need to establish comparisons against some relevant standard such as:
- A previous figure An external figure A Projected figure
The reasons are very useful for the managers of any company, for the accountant and for all the economic personnel of the same, since they allow to relate elements that by themselves are not capable of reflecting the information that can be obtained once it is they link with other elements either from the accounting statement itself or from other statements that are related to each other, either directly or indirectly, thus showing the development of a certain activity.
These, as an essential part of the Economic-Financial Analysis, constitute a vital tool for decision-making, facilitate analysis, but will never replace good analytical judgment. They are also widely used by banking entities or any credit institution to obtain and analyze economic and financial information in order to know their strength for granting loans.
They are used to obtain a quick diagnosis of the economic and financial management of a company when compared through a historical series, they allow analyzing the evolution of the company over time, allowing analysis of trends as one of the necessary tools for Economic projection- Financial of the company.
There are several ways how to classify or group this set of indicators according to their characteristics or the topics to be analyzed according to the Financial Statements that they take into consideration for their determination, among others.
Basic Financial Ratios
The financial ratios can be divided into several basic groups:
- Liquidity Ratio, Solvency Ratio, Leverage Ratio, Activity Ratio, Collections and Payments Ratio, Profitability Ratio.
LIQUIDITY REASON
These indices can be used interchangeably according to the characteristics of each company, the objective pursued in a certain job or the degree of depth desired in the research or analysis that is being carried out. If its value is 1, it can face its debts but on it depends the speed with which collections are made to customers and the realization or sale of their inventories.
The importance of these liquidity indices lies in the degree of realization of the various elements of the Current Assets taken for its calculation and the degree of enforceability of the Current Liabilities.
Liquidity is the ability of an entity to meet its debts in the short term, that is, the potential ability to pay its obligations in the short term.
NET WORKING CAPITAL
It is defined as the funds or resources with which a company operates in the short term after covering the debts and obligations that expire in that short term, that is, it expresses the financial means that an entity has to pay the short-term obligations (debts).
| WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES |
GENERAL LIQUIDITY
The current ratio is obtained by dividing current assets by current liabilities. Current assets basically include cash accounts, banks, accounts and documents receivable and inventories. This ratio is the main measure of liquidity, expressing the times that current assets cover current liabilities or the amount of pesos of current assets that the company owns for each peso of current liabilities.
| GENERAL LIQUIDITY = CURRENT ASSETS
CURRENT LIABILITIES |
IMMEDIATE LIQUIDITY
It is also known as Acid Test, Severe Ratio or Treasury Index.
It is that indicator that when discarding accounts that are not easily realizable from current assets, provides a more demanding measure of a company's ability to pay in the short term. It is somewhat more severe than the previous one and is calculated by subtracting the inventory from current assets and dividing this difference by current liabilities. Inventories are excluded from the analysis because they are the least liquid assets and the most subject to losses in the event of bankruptcy.
| IMMEDIATE LIQUIDITY = CURRENT ASSETS - INVENTORIES
CURRENT LIABILITIES |
AVAILABILITY
It indicates the ability of an entity to pay using the cash it has express, with how many pesos of cash they have in an entity to face each peso of its short-term debts. It is difficult to estimate an ideal value for this ratio, since the available value tends to fluctuate throughout the year and, therefore, efforts must be made to take an average value.
| AVAILABILITY = AVAILABILITY.
CURRENT LIABILITIES |
SOLVENCY REASON:
Solvency comes from the ability of a company to meet its debts with its resources in the long term.
| SOLVENCY = REAL ASSET.
OUTDOOR FINANCING |
LEVERAGE REASON:
It measures the degree to which the company has been financed through debt (indebtedness) and capital (autonomy).
INDEBTEDNESS
From knowing to what extent the different sources of financing help finance the different assets, it is necessary to also know how the sources of financing of the companies are structured. In other words, what relationship do other people's resources, permanent resources, and the company's own resources have? These indices allow diagnosing about the company's debt.
| DEBT 1 = FINANCING
OWN FINANCING |
AUTONOMY:
This ratio is the counterpart of the procedure shown above to measure debt. As a company can be financed with its own capital and that of others, the increase in one of them causes a decrease in the other and vice versa. The level of autonomy shows us to what extent a company is financially independent from creditors. The expression of this relationship can be both percent and one
| AUTONOMY = OWN FINANCING
TOTAL FINANCING |
DEBT QUALITY:
It expresses the percent that represents the short-term debt of the total debts, that is, how many pesos of short-term debt does the company have for each peso of total debt.
| DEBT QUALITY = CURRENT LIABILITIES
OUTDOOR FINANCING |
REASON OF ACTIVITY:
They are those that measure the efficiency of accounts receivable and payable. The efficiency of the consumption of materials, production, sales and assets, the efficiency of the business investment in the current assets accounts, this investment can be high or low and to qualify it it is necessary to know the number of times they rotate, for example the inventories over a period of time that can be monthly, semi-annual or annual. The current assets accounts will have more liquidity the more they rotate, that is, the faster it becomes money.
ROTATION OF WORKING CAPITAL:
Working capital is the consequence of the trend of cash, loans to customers, existence of inventories, prepayments and other items of current assets, as well as the presence of short-term debts
| WORKING CAPITAL ROTATION = NET SALES
AVERAGE WORKING CAPITAL |
INVENTORY ROTATION:
It indicates the speed of the company in making its sales, the speed of consumption of materials or raw materials and the speed of production. They are expressed in times or weights.
| INVENTORY ROTATION = NET SALES
AVERAGE INVENTORY |
NET FIXED ASSET ROTATION
It allows establishing the frequency of rotation of tangible fixed assets that, on average, the company has used for a certain time. The higher the rotation, the more favorable it is. It can be interpreted sometimes or as much by one.
| NET AFT ROTATION = NET SALES
AVERAGE NET AFT |
TOTAL ACTIVE ROTATION:
It allows knowing the frequency of rotation of the total assets that the company has used on average during a certain time, that is, the average investment. Higher turnover reflects favorable behavior for the entity. It can be interpreted sometimes or as much by one.
| TOTAL ASSETS ROTATION = NET SALES
AVERAGE TOTAL ASSETS |
RECEIPT AND PAYMENT REASON
COLLECTION CYCLE:
Measures the frequency of recovery of accounts receivable. The purpose of this ratio is to measure the average term of credits granted to clients and to evaluate the credit and collection policy. Accounts receivable balance must not exceed sales volume. When this balance is greater than sales, the total immobilization of funds in accounts receivable occurs, reducing the company's payment capacity and loss of purchasing power. It is desirable that the balance of accounts receivable rotate reasonably, so that it does not imply very high financial costs and allows the credit to be used as a sales strategy.
| COLLECTION CYCLE = NUMBER OF DAYS OF THE YEAR
ROTATION ACCOUNTS RECEIVABLE |
PAYMENT CYCLE:
This is another indicator that allows to obtain indications of the behavior of working capital. It specifically measures the number of days that the company takes to pay the credits that the suppliers have granted it.
| COLLECTION CYCLE = NUMBER OF DAYS OF THE YEAR
ROTATION ACCOUNTS RECEIVABLE |
PROFITABILITY REASON:
They cover the set of ratios that compare the earnings of a period with certain items of the Statement of Income and Balance. Its results materialize the efficiency in the management of the company, that is, the way in which the managers have used the resources of the company. For these reasons, the entity's management must watch over the behavior of these indices because the greater their results, the greater the prosperity for the company.
| FINANCIAL PROFITABILITY = UAII
AVERAGE EQUITY |
CHAPTER II
CHARACTERIZATION OF THE STUDY OBJECT
This work was carried out at the Automotive Transport Company of MINAZ de Las Tunas, subordinate to the Ministry of Sugar. It is located in the Circunvalación Sur, Pablo Escobar S / N corner. It was created by Resolution 4/2008.
MISSION
Transportation of sugar cane and general cargo of MINAZ.
SOCIAL OBJECT
- Provide transportation services of general cargo, separation and maintenance of automotive means of transport and their aggregates and heavy relief equipment to transport equipment, bodywork, painting, labeling and upholstery of heavy equipment, tire repair and rebuilding, batteries and radiators to the system of the Ministry of Sugar in Cuban pesos and to other entities in Cuban pesos and convertible pesos. Produce and wholesale parts and accessories for automotive transportation to the system of the Ministry of Sugar in Cuban pesos and to other entities in Cuban pesos and convertible pesos Provide diagnostic services: lifting and lifting of loads, advice and consultancy in the activity of transport, technical inspection and operation of transport for renting warehouses and parking spaces,personnel transportation, non-tourist accommodation and food associated only with the system of the Ministry of Sugar, all of them in Cuban pesos. Offer food services to their workers in Cuban pesos. Offer training services in the automotive transport activity in Cuban pesos. Produce and commercialize to the surplus workers of agricultural products from self-consumption in Cuban pesos.Produce and market in retail form to surplus workers of agricultural products from self-consumption in Cuban pesos.Produce and market in retail form to surplus workers of agricultural products from self-consumption in Cuban pesos.
Number of workers
| OCCUPATIONAL CATEGORY | QUANTITY | % |
| Leaders | 59 | 7 |
| Technicians | 128 | 16 |
| Service | 82 | 10 |
| Workers | 538 | 67 |
| TOTAL | 797 | 100 |
CHAPTER III
PRACTICAL EXAMPLES OF FINANCIAL REASONS
LIQUIDITY REASONS
GENERAL LIQUIDITY
GENERAL LIQUIDITY = CURRENT ASSETS
CURRENT LIABILITIES
| I Quarter 2009 | I Quarter 2010 |
| 3748060
3535821 = 1.06 |
4019965
4753552 = 0.84 |
Assessment
It means that the entity has 0.84 pesos to meet its short-term obligations, that is, it has 0.84 steps of current assets to pay each peso of obligation. This ratio is considered positive when the ratio is two to one, therefore it is impaired because it is 1.16 pesos below.
IMMEDIATE LIDUIDITY OR ACID TEST
IMMEDIATE LIQUIDITY = CURRENT ASSET-INVENTORY
CURRENT LIABILITIES
| I Quarter 2009 | I Quarter 2010 |
| 3748060-579602
3535821 = 0.89 |
4019965 - 685622
4753552 = 0.70 |
Assessment
The company has 0.70 pesos of rapidly available assets for each peso of short-term obligation. This index must be one or greater than one, therefore it is deficient, as it is 0.30 pesos below.
LIQUIDITY AVAILABLE OR TREASURY REASON
AVAILABILITY = AVAILABILITY
CYCLE LIABILITIES
| I Quarter 2009 | I Quarter 2010 |
| 634520
3535821 = 0.17 |
632736
4753552 = 0.13 |
Assessment
Comparing these quarters, we can see that the company may have problems meeting payments, as its availability is very low.
SOLVENCY REASON
SOLVENCY = REAL ASSET.
OUTDOOR FINANCING
| I Quarter 2009 | I Quarter 2010 |
| 8475771
3827352 = 2.21 |
8173009
5003306 = 1.63 |
Assessment
The situation of the Company with respect to its payment capacity supported by its current assets, behaves unfavorably in relation to the previous year, since it decreased by 0.58 pesos.
REASONS FOR DEBT
REASON FOR DEBT
DEBT 1 = FINANCING
OWN FINANCING
| I Quarter 2009 | I Quarter 2010 |
| 3827352
3535821 = 1.08% |
8173009
5003306 = 1.05% |
Assessment
1.05 expresses the percent that third-party financing represents in relation to the company's own financing through debts ranging between 1 and 2, having a medium risk.
AUTONOMY REASON
AUTONOMY = OWN FINANCING
TOTAL FINANCING
| I Quarter 2009 | I Quarter 2010 |
| 3535821
11059948 = 0.31 |
4753552
5003946 = 0.94 |
Assessment
94% of the company's financing corresponds to its own financing, being at low risk.
DEBT QUALITY
DEBT QUALITY = CURRENT LIABILITIES
OUTDOOR FINANCING
| I Quarter 2009 | I Quarter 2010 |
| 3535821
3827352 = 0.92 |
8173009
5003306 = 0.95 |
Assessment
The quality of the debt is very good, since of the total debts, 95% are long-term debts and these have a longer maturity and there are greater possibilities of payment.
ACTIVITY REASONS
ROTATION OF WORKING CAPITAL
AVERAGE WORKING CAPITAL = ASSETS CIRC - LIABILITIES CIRC.
| I Quarter 2009 | I Quarter 2010 |
| 3748060 - 3535821
= 212239 |
4019965 - 4753552
= -733587 |
CAP ROTATION JOB = NET SALES
AVERAGE WORKING CAPITAL
| I Quarter 2009 | I Quarter 2010 |
| 5004820
212239 = 23.58 |
4083355
-733587 = -5.56 |
Assessment
In this year we realize that working capital has had an involution since it became negative.
When interpreting the rotation of working capital in the 2009 quarter, it is observed that net sales cover 23.58 times the average working capital employed by the company. When evaluating the evolution of the ratio, an abrupt decrease in its value is manifested. They have sold 29.14 less, for each peso of average working capital.
NET AFT ROTATION
NET AFT ROTATION = NET SALES
AVERAGE NET AFT
| I Quarter 2009 | I Quarter 2010 |
| 5004820
4376565.33 = 1.14 |
4083355
4300185.66 = 0.94 |
Assessment
In this indicator, the higher the turnover, the more favorable it is, this year we can see that it has deteriorated with respect to the previous year by 0.20.
COLLECTION AND PAYMENT REASONS
REASON OF ACCOUNTS RECEIVABLE
ROTAC. COUNT PER COB = NET SALES.
SALD MED ACCOUNTS RECEIVABLE
| I Quarter 2009 | I Quarter 2010 |
| 5004820
2470599 = 2 times |
4083355
821067 = 5 times |
COLLECTION CYCLE
COLLECTION CYCLE = NUMBER OF DAYS OF THE YEAR
ROTATION ACCOUNTS RECEIVABLE
| I Quarter 2009 | I Quarter 2010 |
| 90
two = 45 days |
90
5 = 18 days |
Assessment
This entity accounts receivable rotate 5 times every 18 days, in the current year, that is, every 18 days the entity makes its accounts receivable effective.
REASON OF ACCOUNTS PAYABLE
ACCOUNT PAYABLE ROTAC = NET PURCHASES
AVERAGE BALANCE CTAS PAYABLE
| I Quarter 2009 | I Quarter 2010 |
| 1498974
404099.66 = 3 times |
852620
170841.33 = 5 times |
PAYMENT CYCLE
PAYMENT CYCLE = NUMBER OF DAYS OF THE YEAR
ACCOUNTS PER PAYMENT ROTATION
| I Quarter 2009 | I Quarter 2010 |
| 90
3 = 24 |
90
5 = 18 |
Assessment
In the current year, accounts payable rotate 3 times every 18 days, that is, every 18 days the entity makes its accounts payable effective.
PROFITABILITY REASONS
ECONOMIC PROFITABILITY
ECONOMIC PROFIT. = UAII.
TOTAL ASSETS
| I Quarter 2009 | I Quarter 2010 |
| 170507
15747593 = 0.01% |
387918
8557290 = 0.04% |
Assessment
For each peso of invested assets, the entity obtains 0.04 of profits, since when evaluating the company, in relation to the previous year, it is observed that it has a better financial balance.
FINANCIAL PROFIT
FINAL PROFITABILITY. = UAII.
AVERAGE EQUITY
| I Quarter 2009 | I Quarter 2010 |
| 170507
1562548 = 0.10 |
387918
1184448 = 0.32 |
Assessment
This index represents the profit obtained for each weight of resources invested. The money that has generated the capital of the company. This has increased in value in the periods analyzed, meaning that the resources they invest are reverted to income.
SUMMARY TABLE OF THE INDICATORS
YEAR 2009-2010
|
INDICATORS |
U / M |
Real
I Trim 2009 |
Real
I trim 2010 |
DIFFERENCE |
| General Liquidity | pesos | 1.06 | 0.84 | -0.22 |
| Immediate Liquidity | pesos | 0.89 | 0.70 | -0.19 |
| Liquidity Available | pesos | 0.17 | 0.13 | -0.04 |
| Solvency | pesos | 2.21 | 1.63 | -0.58 |
| Indebtedness 1 | % | 1.08 | 1.05 | - |
| Autonomy | % | 0.31 | 0.94 | - |
| Debt Quality | % | 0.92 | 0.95 | - |
| Collection Cycle | days | Four. Five | 18 | -27 |
| Payment Cycle | days | 24 | 18 | -6 |
| Rotation Cap Work | times | 23.58 | -5.56 | -29.14 |
| Invent rotation | times | 25.90 | 17.86 | -8.04 |
| Net AFT rotation | times | 1.14 | 0.94 | -0.20 |
| Profitability Econom. | % | 0.01 | 0.04 | - |
| Profitability Financ. | % | 0.10 | 0.32 | - |
As a result of the research carried out, a series of conclusions were reached and although they have been partially and partially exposed to a great extent during the development of the work, they will be presented below, in no order of incidence or importance.
- In the current year the Working Capital decreased with respect to the previous year 945 826 pesos. Being negative at the moment. In 2009 the entity was in a better position from the point of view of liquidity, from 1.06 in 2009, 0.84 in the current year. The collection cycles are within the established terms The profitability indicators that were measured reflected an increase in the period analyzed.
- To have an adequate rotation of the Working Capital, you must use the money of the suppliers, but without going wrong with them, and know that it is only good to borrow as long as you trust to keep the profitability of the company above the interest rate average that is paid for other people's resources. Using more the free external financing of accounts payable (without affecting their good image due to non-compliance with the agreed payment terms) without increasing the cost. The final objective of any entity should be aimed at increasing its financial profitability as a maximum indicator in which materialize the effects of good business management. But for this it is necessary to work from the base, monitoring the behavior of the reasons,in such a way that they allow to strengthen their strengths and achieve the permissible results. This can only be achieved by carrying out management work with a view to increasing the volume of sales or income as a primary element.The collection and payment system has among its fundamental objectives to strengthen the financial discipline of the country's economic entities, and achieve the highest possible speed in the rotation of money and in the transfer of monetary resources. That is why the norms and regulations on the subject must be periodically examined to assess the degree of compliance and their efficiency, and introduce the necessary modifications and complementary provisions, based on the achievement of the above objectives. essential aspect is the expenses,nothing is solved by increasing sales, if there is no savings policy that results in high profitability. Monitor costs so that the end result allows reaching a level of profit that meets the company's objectives.
- Amat Salas Oriol. Financial statement analysis. Fundamentos y Ediciones Gestión 2000.Collectivo de Autores. Analysis and interpretation of financial statements. Economic Preparation Program for Paintings. Benítez Miranda Miguel Ángel. Accounting and Finance for the Economic Training of Tables. Collective of Authors. Intermediate Accounting part 5 and 6. Editorial MINED La HabanaLas Cubanas de Contabilidad.
