Analysis of receivables and payables

A big impact on the turnover of capital invested in current assets, and therefore on the financial condition of the company has an increase or decrease in receivables .

The state of settlements, the size and quality of debt, on the one hand, have a direct impact on the financial position of the organization, and on the other hand, are a consequence (manifestation) of this provision.

Analysis of the state of calculations is carried out according to the balance sheet (form No. 1), annexes to the balance sheet (form No. 5) with the use of additional sources of information: references and transcripts of accounting, synthetic and analytical accounting registers. In the analysis should take into account the provisions of the accounting policies of the organization on the creation of reserves for doubtful debts, as well as data on the amount of the created reserve, by which the balances of receivables in the balance sheet are reduced.

In the process of analysis, it is necessary to study the dynamics, composition and structure, causes and limitation of the formation of receivables, to establish whether there are any amounts unrealistic for collection, or those for which the statute of limitations expires.

When assessing the quality of debt, it is important to have information about the following types:

- normal (current) debt arising as a result of the applied forms, methods, and also the timing of settlements in accordance with the concluded agreements;

- overdue debt;

- doubtful receivables;

- bad receivables;

- debt written off in the analyzed period to the financial result; economic sanctions against the company for improper performance of obligations (penalties for failure to comply with business contracts, penalties and fines for violation of tax laws).

Analysis and control of receivables and payables involves the study of their structure by the timing of occurrence (and / or possible repayment). The most common classification of terms provides for the following grouping (in days): up to 30; 31-60; 61-90; 91-120; over 120. Other grouping options are possible, for example, up to 1 month, 1-3 months, 3-6 months, 6-12 months, more than 12 months, etc.

Normal (current) is considered debt with a maturity of up to 30 days. Debt with a period of 1 to 3 months is usually overdue and alarming when approaching the upper limit; a period of more than 3 months is critical, as in this case there are signs of bankruptcy established by the Federal Law “On Insolvency (Bankruptcy)”.

Analysis of receivables and payables by the timing of its occurrence allows us to assess the probability of bad debts and the real amount of debt.


The turnover of receivables and payables characterizes the business activity of the enterprise, the effectiveness of the settlement management policy, identifies the reasons for the increase or decrease in the amount of debt and the level of solvency of the organization. To assess the turnover of receivables, indicators are used that are compared in dynamics with the level of previous years:

1. The turnover ratio of receivables:

An increase in accounts receivable turnover ratio means a decrease in credit sales (a decrease in commercial credit provided to customers), and a decrease indicates either expansion of spontaneous commercial lending to customers or problems with buyers repaying their debts.

2. The period of repayment of receivables Tdz, often called the period of collection of debts of debtors:

Shows the average period for the settlement of buyers with the company. Its decrease is positively evaluated and vice versa. The longer the repayment period, the higher the risk of non-repayment of receivables.

3. The share of receivables in total current assets:

The higher this indicator, the less mobile the structure of current assets.

4. The share of receivables in revenue from the sale of goods, products, works, services:

5. The ratio of receivables and payables :

, the optimal value is 0.9-1

If the ratio is greater than 1, then the receivable exceeds the accounts payable, if less than 0.9 - this means a decrease in the solvency of the company.

6. The amount of funds conditionally attracted or diverted from circulation as a result of an increase or decrease in the turnover of receivables is calculated by the formula:


where m 1 is the one-day amount of turnover, thousand rubles (revenue from the sale of products, works, services for the period / number of days in the period);

Tdz - the period of repayment of receivables, days.

Criteria :

ΔRa <0 means an additional attraction of funds into circulation by accelerating the terms of settlements with debtors (faster release of funds from receivables);

ΔRa> 0 indicates an additional diversion of funds from the turnover due to the slowdown of settlement periods, i.e. actual immobilization of funds in receivables.

The quality of receivables is characterized by the following indicators :

7. The share of doubtful debts in the receivables:

8. The share of bad debt in the receivables:

9. The share of the allowance for doubtful debts in the total amount of receivables :

An increase in the level of this coefficient indicates a decrease in the quality of receivables.

The calculation of the influence of factors on the change in the period of turnover of receivables is carried out using methods of determinate factor analysis according to the factor model:


The analysis should compare the turnover of receivables and payables, as well as the amount of borrowed and abstracted funds (sources) by changing the timing of settlements.

Accounts payable are funds temporarily attracted into the turnover of an enterprise.

When evaluating accounts payable, the following indicators are used:

1. Accounts payable turnover ratio:

The increase in accounts payable turnover ratio means a relative decrease in the commercial loan provided to the organization, and a decrease indicates an increase in credit purchases.

2. Payable repayment period Tkz:

Reflects the average period during which the organization pays its debts with creditors (banks are not taken into account) All other things being equal, a decrease in the indicator is positively evaluated.

The low turnover of accounts payable can indicate both the problems with solvency existing in the organization and the deliberate delay in accounts payable as an additional source of funds in its circulation.

3. The ratio of accounts payable to equity:

Shows how much the company raises funds per unit of equity.

4. The ratio of receivables and payables:

, the optimal value is 0.9-1

5. The calculation of the amount of sources additionally attracted and diverted from circulation by reducing or increasing the turnover of accounts payable is similar to the calculation of receivables. However, the evaluation criteria are directly opposite, and in essence these debts themselves are opposite:

Criteria :

ΔRp> 0 means the additional involvement of sources in the organization’s turnover by increasing the terms of settlements with creditors;

ΔRp <0 indicates an additional diversion of sources from circulation due to a reduction in the settlement terms with creditors, and faster repayment of debts to creditors.

Factor models for calculating the impact of factors on changes in accounts payable turnover are similar to those for receivables.

It is beneficial for the organization that the turnover of receivables is equal to that of accounts payable or be slightly higher than it, and the amount of funds conditionally diverted from circulation by reducing the turnover of receivables should be less than the diversion of sources from turnover due to the growth in the turnover of accounts payable:

Cob. ds ≥ Cob. KZ or TDZ ≤ TKZ;

ΔRa (abstract) ≤ ΔRp (abstract). The dynamics of receivables and payables, the intensity of their increase or decrease, quality and turnover have a big impact on the financial condition of the organization.

Methods of analysis of accounts payable, sources of information are the same as accounts receivable.

Profit and Loss Statement Analysis

The financial results of the organization in the form of profit and loss are determined by comparing its income and expenses within specific reporting periods. The analysis is carried out on the basis of the “Profit and Loss Statement", for in-depth analysis it is necessary to use the data of synthetic and analytical accounting for accounts 90,91,99,84 (journal-orders No. 11,13,15 and decipherments to them).

When conducting the analysis, one should not forget that the division of income and expenses into two main groups depends on the stability of their receipt from period to period. Income and expenses from ordinary activities are stable, while in their main part other income and expenses are random. Therefore, the higher “quality” (from the standpoint of stability of receipt) has that net profit, which was formed to a greater extent due to the positive financial result from ordinary activities (profit from sales).

This situation means that it is highly likely to receive it in no less volumes in the future. Thus, the analysis of income, expenses and financial results allows us not only to assess the actual level of effectiveness of the organization, but also to determine the prospects for the development of the business entity, its level of reliability as a partner and investment attractiveness.

Comparison of certain groups of income and expenses of the organization allows you to calculate the most important indicators of the financial results of its activities:

- profit (loss) from sales of goods, products, works, services - characterizes the financial result from ordinary activities of the organization and represents the difference between the proceeds from the sale (excluding VAT , excise taxes and other obligatory payments) and the total cost of goods, products, works sold services;

- profit (loss) before tax is the amount of profit (loss) from the sale of goods, products, works, services, other income, reduced by the amount of similar expenses. This indicator characterizes the overall financial result obtained from all types of activities and operations;

- net profit (loss) of the reporting period   It is formed on the basis of profit (loss) before tax, taking into account the effect on the result of the current income tax, deferred tax assets, deferred tax liabilities and the consequences of emergency business circumstances. It characterizes the amount of profit remaining at the disposal of the owner of the organization, i.e. final financial result of activity.

Analysis of income and expenses is carried out in the following areas:

1) reveals the dynamics of certain types of income and expenses and their total amount in the reporting period compared to the previous one. At the same time, the growth rate of income must be compared with the growth rate of the corresponding costs (horizontal analysis);

2) the specific weight of individual incomes and expenses in their total value is calculated and the dynamics of the structure of these indicators in the reporting period is compared with the previous one (vertical analysis);

3) if there is information for several periods, a trend analysis of income and expenses is carried out;

4) determines the different ratio of income and expenses of the organization (coefficient analysis):

- the ratio of the total amount of income and expenses,

- the ratio of income and expenses for ordinary activities,

- the ratio of other income and expenses.

The calculation of these ratios is carried out for the previous and reporting period, which allows to identify the level and dynamics of profitability of the organization.

Table 1 - indicators of the composition, structure and dynamics of income and expenses of the organization

Indicators Last year Reporting year Deviation, +/- Growth rate, %
thousand roubles. % thousand roubles. % thousand roubles. p.p.
1. Income - total including: x
- revenue (net) from the sale of goods, products, works, services
- interest receivable
- income from participation in other organizations
- Other income
2. Costs - total including: x
- the cost of goods sold, products, works, services
- business expenses
- management expenses
- Percentage to be paid
- other expenses
- Current income tax
3 Net profit (1-2)
4 Ratio of the total amount of income and expenses
5 Ratio of income and expenses for ordinary activities
6 Ratio of other income and expenses

Financial results are characterized by the sum of the profit and the level of profitability (profitability). The analysis uses the method of comparative assessment of financial indicators as the most effective. When presenting profit and loss statement data in the form of relative values, all of its items are presented in relation to sales proceeds, i.e. the calculation of the level of each indicator, expressed as a percentage.

The procedure for the formation and distribution of profits can be represented in the form of scheme 1.

Fig 1. - The order of formation and distribution of profits.

In general, the analysis of income and expenses allows you to establish the degree of their influence on the final financial result - net profit (loss).

The purpose of the analysis of the structure and dynamics of net profit of the organization is to identify trends in this indicator and all the elements (articles) of its formation.

The analysis of net profit includes three stages.

предусматривает расчёт и анализ динамики (абсолютного изменения и темпов роста) чистой прибыли в отчетном году по сравнению с предыдущим и всех статей ее формирования (горизонтальный анализ). Stage 1 provides for the calculation and analysis of the dynamics (absolute change and growth rate) of net profit in the reporting year compared with the previous one and of all the articles of its formation (horizontal analysis). In the process of such an analysis, it is necessary to pay attention to the reduction of income and profits, as well as the increase in expenses and losses incurred from various operations and activities (Table 1).

Включает расчёт и анализ структуры чистой прибыли в отчетном и предыдущем периоде, т.е. Stage 2 includes the calculation and analysis of the structure of net profit in the reporting and previous period, i.e. the proportion of its individual elements in the total profit. At the same time, priority components of income, expenses and, accordingly, financial results are identified in order to conduct an in-depth analysis of them in the future, to identify the reasons for the decrease in income and increase in expenses.

At stage 3   The calculation and assessment of changes in the structure of net profit is carried out, which allows to identify structural changes in the articles of profit formation.

II and III stages mean a vertical analysis.

It should be noted that since the source of net profit is pre-tax profit, which is the total financial result of all operations and activities of the organization, often during the analysis of the structure of financial results the last indicator is taken as 100%, i.e. finds the proportion of the individual elements of the formation of net profit in the total profit before tax.

Profit distribution is shown schematically in fig. 2. One part of it in the form of taxes and fees goes to the state budget and is used for the needs of society. The remaining amount - net profit is used to pay dividends to shareholders of the enterprise, expand production, create reserve capital, etc.

Fig. 2 - Scheme of distribution of net profit of the organization

The amount of net profit depends on factors:

- changes in the total profit before tax;

- determining the share of net profit in the total amount of profit - the share of taxes, economic sanctions, etc.

To determine the change in the amount of net profit due to factors of the first group, it is necessary to multiply the profit before tax due to each factor by the planned (base) share of net profit in the amount of total profit before tax:

Pn = Mon x i x Ud hn0

The increase in net profit due to the second group of factors is calculated by multiplying the increase in the specific weight of the i-th factor (taxes, sanctions, deductions) in the total amount of gross profit by its actual value in the reporting period:

Fr = Mon 1 x (- Ud x i )

Net profit is used in accordance with the charter of the enterprise. At the expense of it, investment in industrial development is carried out, dividends are paid to the shareholders of the enterprise, reserve and insurance funds are created, etc.

; Date Added: 2014-02-02 ; ; views: 46567 ; Does published material infringe copyright? | | Personal Data Protection | ORDER JOB

Did not find what you were looking for? Use the search:

Best sayings: For the student, the most important thing is not to pass the exam, but to remember about it in time. 9887 - | 7437 - or read everything ...

Read also:

2019 @

Page generation in: 0.009 sec.