Financial analysis is of vital importance since it constitutes a way to identify deficiencies in the entity and becomes an effective tool for decision-making. Most of the banking financial institutions operate with deposits from the public and through the interest resulting from the loans granted. The Ciego de Ávila Storage Company - Cuba, operates with subsidies for price differences of some products that are located by the Ministry of Finance and Price, and sometimes its payment management with suppliers deteriorates. Therefore, in this research the financial procedures used by banking institutions are applied to determine the viability of granting loans to socialist state enterprises.It is important to recognize that the entire set of financial institutions in Cuba have in their essence the social responsibility of the company and the set of organizations that in one way or another pay tribute to it. This experience is not only a Cuban experience, but countries with a historical and economic scope have already used it in known ways and variables. Scientific rigor and economic valuations dictate the essential detail in this work.Scientific rigor and economic valuations dictate the essential detail in this work.Scientific rigor and economic valuations dictate the essential detail in this work.
Methodology
To carry out this research, various methods, means and instruments were used in order to design procedural options for financial activity.
Materialist dialectic: To understand evolution, structure, concepts, regularity, contradictions, cause and effect, necessity and causality, content and form, possibility and reality.
Synthesis analysis: To conduct the events throughout the investigation, carry out evaluations, fundamental in determining the field of action and the object of investigation.
Historical logic: To relate the different stages of the investigation.
Heuristic method: Consultation with specialists linked to the credit areas, it is considered very useful for the development of the work; This query represents a valuable source of information that allows knowing the characteristics of the entity and the object of study.
Some of the most used tools in this research are the update sources, such as: official BANDEC reports and documents, also the use of computers with different programs to be used, which have allowed the preparation of this work.
Result and Discussion
The Acopio Company belonging to the Ministry of Agriculture requests credit in national currency from Branch 5541 Ciego de Ávila. They are dedicated for the corporate purpose to the purchase and distribution of agricultural products in national currency and freely convertible currency to productive units such as State Companies, UBPC; CPA; CCS strengthened or not and individual producers. The products marketed by the company are accepted by the population's market network as well as by prioritized organizations such as Health, Education, Inder, among others.
With this request for an amount of $ 40,000,000.00, with the objective of assuming the expenses related to the purchase and marketing of agricultural products to the UBPC, CCSF, CPA, individual producers and State companies.
In reviewing the minutes of the Credit Committee, it was found that the decision made by this technical body was to approve the request for financing from the Provincial Stockpile Company for $ 40,000,000.00, for working capital; according to the conditions proposed in the business manager's report. As such in the report, no conditions other than those that appear in the Proposal for a Decision to the Credit Committee were found.
Based on the foregoing, the Proposal for a Decision to the Credit Committee, which was presented by the specialist, was:
- Modality: revolving credit line Amount: $ 40,000.0 MP Purpose: credit for commercialization of agricultural products to CPAs; UBPC; CCSF Independent farmers and State Companies Object: working capital Interest rate: 3% Interest for arrears: 2% Terms: 365 days Administration fee: 0.25 of the approved amount equivalent to 100.0 mp.
Deliveries will be made from the loan account to the financing account associated with the loan.
- Guarantees: the Scrow account that receives 100% of the income from the present and future sales of commercialized agricultural products, allocating 75% of them to repay the loan, as well as 100% of the subsidy received for the concept of bean price difference.
RESULTS OF FINANCIAL RATIOS
| INDICATORS | Jan-16 | Jan-17 | Variation |
| Required working capital | -24 969.9 | -42 622.3 | -17 652.4 |
| Solvency | 1.2 | 1.1 | -0.1 |
| Immediate liquidity | 0.5 | 0.4 | -0.1 |
| General indebtedness | 4.5 | 7.4 | 2.9 |
| Debt with the bank | 0.6 | 0.5 | -0.1 |
| Overall profitability | 0.0 | 0.0 | 0.0 |
| Financial profit | 0.0 | 0.0 | 0.0 |
| Turnover of working capital | -0.5 | -0.6 | 0.1 |
| Inventory rotation cycle | 23 days | 14 days | -9 days |
| Collection cycle | 45 days | 41 days | -4 days |
| Pay cycle | 58 days | 56 days | -2 days |
| Cash turnover | Three days | -30 days | -27 days |
| Sales dynamics | 1.1 | 2.2 | 1.1 |
Conclusions
- Financial analysis provides companies and financial institutions to carry out an evaluation of the economic - financial situation. BANDEC, as a benchmark of financial institution in Cuba, values the social responsibility of companies at the time of granting a bank loan. The importance of credits to guarantee the development of companies and thus of the national economy. Apply the Cuban experience to other institutions that present a high level of social commitment.
Bibliography consulted
- Estévez, I. Magazine of the Central Bank of Cuba. Experience in financing Cuban companies. July-September No. 2. October - December 1998. No.3. Page 8.Tamayo, B. Magazine of the Central Bank of Cuba. Guarding honesty like a pearl. July-September 2004. Year 7 No. 2. Page
31.
- Tellez, R. Magazine of the Central Bank of Cuba. From Monterrey to Johannesburg. October-December 2002. Year 5 No. 4. Page 27.Yera, M. Castro, P. González, M. Magazine of the Central Bank of Cuba. Prevention is the most important thing against crime. April-June 2004. Year 7 No. 2. Page 20.
Estévez, I. Magazine of the Central Bank of Cuba. Experience in financing Cuban companies. July-September No. 2. October-December 1998. No.3. Page 8.
Tellez, R. Magazine of the Central Bank of Cuba. From Monterrey to Johannesburg. October-December 2002. Year 5 No. 4. Page 27.
Yera, M. Castro, P. González, M. Magazine of the Central Bank of Cuba. Prevention is the most important thing against crime. April-June 2004. Year 7 No. 2. Page 20.
Tamayo, B. Magazine of the Central Bank of Cuba. Guarding honesty like a pearl. July-September 2004. Year 7 No. 2. Page 31.
