Commercial reliability margin formula. Calculation of financial safety margin

Tax Code of the Russian Federation Definition of stock.

financial strength

financial strength

financial strength

Solution. Break-even point at in kind

and in value terms. Example. Magnitude fixed costs for the production and sale of products is 1.2 million rubles, the price of a unit of production is 135 rubles. Planned size variable costs

per unit of production is equal to 50 rubles.

Define:

Let's substitute the data into the formula above:

OPmin = 1,200,000 / (135 - 50) = 14,118 units.

Revenue min = OP min × Price = 14,118 × 135 = 1,905,930 rub.

2) the minimum volume of product sales in physical terms to obtain a profit of 100,000 rubles.

OP = (PrP + Planned Profit) / (Price - PrP per unit)

OP = (1,200,000 + 100,000) / (135 - 50) = 15,294 units.

3) the minimum volume of product sales in physical terms to obtain a profitability of sales of 20%.

In this case, the basic formula used to calculate the break-even point is slightly transformed:

OP = PZ / (Price - Return on Sales × Price - PZ per unit)

OP = 1200,000 / (135 - 20% × 135 - 50) = 1200,000 / 58 = 20690 units. For trading enterprises

The break-even point is calculated using the following formula:

OP min = PtZ / Margin (in % of the selling price),

where OPmin is the break-even point in value terms;

PtZ - fixed costs necessary for the activities of the enterprise.

The margin of financial strength is a value that shows how much an enterprise can afford to reduce the volume of product sales without incurring losses.

Margin of financial strength = (OPplan - OPmin) / OPplan,

where OPmin is the break-even point;

OPplan - planned sales volume.

The greater the margin of financial strength, the stronger the financial position of the organization and the lower the risk of losses for it. Determine the margin of financial strength if the planned sales volume is 1200 thousand rubles, fixed costs are 100 thousand rubles, the average margin (as a percentage of selling prices) is 10%. Selling price per unit of production - 1100 rubles.

Let's calculate the break-even point:

OP min = 100 thousand rubles. / 0.1 = 1,000 thousand rubles.

Margin of financial strength = (1200 thousand rubles - 1000 thousand rubles) / 1200 thousand rubles. = 0.167 or 16.7%

Thus, the company will not incur losses if revenue falls by a maximum of 16.7%.

1. Assessment of the financial condition of the enterprise

Analysis of the financial condition of the enterprise according to data financial statements can be carried out with varying degrees of detail. There are two types of analysis: express analysis and in-depth analysis.

1. In express analysis, the analyst expects to obtain only the most general idea of ​​the enterprise. The purpose of such an analysis is to obtain a simple assessment of the financial well-being and dynamics of the development of the enterprise. , includes viewing reports based on formal characteristics - correct completion of reporting forms, consistency of results, checking control relationships between reporting items, familiarization with auditor's report. Identification of “sick” items - the presence of losses, overdue loans and borrowings, overdue accounts payable and receivables.

2. An in-depth analysis allows you to get an idea of ​​the following aspects of the enterprise:

· Property status;

· Liquidity and solvency;

· Financial stability;

· Business activity;

· Profit and profitability;

Liquidity of enterprise assets- the ability of assets to transform into cash, and the degree of liquidity is determined by the length of the time period during which the transformation can be carried out.

The less time it takes to this type assets acquired monetary form, the higher its liquidity.

Liquidity of the enterprise- this is the ability to pay off your obligations on time and in full.

The concept of solvency is close to liquidity, however, it is not always correct to talk about the identity of these definitions.

Solvency of the enterprise- the ability to make timely payments on its urgent obligations.

Calculation of relative indicators to assess the liquidity and solvency of an enterprise

The activity must bring positive profits, this is understandable. But there are situations (the reasons may be different) when things start to go badly for a company, and it is necessary to reduce the volume of products produced and sold. The company no longer expects large incomes, but at least zero profits when expenses do not exceed income. But where is this threshold, when crossed, the activity becomes unprofitable? How much can a company cut back on its work? What is the margin of financial stability?

Security zone

There is a “turning point” volume of production or sales, at which the costs of creating and marketing products are equal to the revenue received. This is the break-even point, when crossed, the “everything is bad” stage begins. So, the “distance” from the existing sales volume to a given point is a kind of safety zone, that is, a margin of financial strength of the enterprise.

Required indicators

To determine to what extent a company can afford to reduce revenue without incurring losses, the following data will be required:

Fixed and variable costs

Fixed costs do not depend on either production volumes or selling prices. It doesn’t matter how many products are produced, these costs will be incurred: rental, leasing, credit, communal payments, salary, etc.

Variable costs are directly related to the volume of products produced: costs of materials and raw materials, payment of piecework wages, etc. These costs appear either after income is received (for example, interest is paid to a sales manager after he has sold a product) or product production process. In both cases, expenses are completely controlled, money does not disappear into nowhere. Let the same investments in spent materials let unsold products remain with the enterprise in the form inventory. It is the optimization of these costs that the company primarily engages in when the margin of financial strength runs out or is too small, and it is necessary to lower the break-even point.

Break-even point calculation

• Now that we have decided on the revenue parameters and types of costs, let’s calculate the profitability threshold. This is the ratio of fixed costs for production and sales (Zpost) to the difference between revenue (V) and variable costs (Zper), that is, Tb = Zper/(V - Zper).
• The result will show how many units of production must be produced in order for revenue to cover costs. To get the result in in monetary terms the formula will look like this: B*Zpost/(B - Zper).

Calculation of the financial strength coefficient

• Finally, the financial safety margin (FSP) is determined using the following formula: Zfp = (B - Wtb)/B * 100%, where B is the current sales volume, and Wtb is the difference between the sales volume in the current period and the estimated sales volume in break-even point.
• If you want to get the result not in monetary terms, but in physical terms, then you should substitute the sales volume in units of production in this formula instead of revenue (B).

Thus, the margin of financial strength is an indicator of the financial stability of the company, which gives an idea of ​​​​the permissible decrease in production and sales volumes within the profitability threshold.

Financial strength margin- this is an indicator of the financial stability of an enterprise, which determines to what level the enterprise can reduce its production without incurring losses.

There is another definition of this term.

The margin of financial strength of an enterprise is the ratio of the difference between the current volume of sales of a product and the volume of its sales at the break-even point in percentage terms. Thus, the higher this indicator, the more stable the enterprise is, and the less likely it is to risk losses.

In other words, the margin of financial strength shows to what level the amount of sales revenue can be reduced before the amount of critical revenue is reached. With a further decrease in the amount of revenue, the enterprise will begin to make losses, this is determined by subtracting its critical value from the total revenue. It can also be easily calculated using indicators for analyzing the values ​​at the break-even point. The larger this stock, the more stable the situation at the enterprise.

Formula for calculating the margin of financial safety

Margin of financial strength = total revenue - critical revenue

Reducing costs, especially fixed ones, contributes to an increase in the margin of financial strength. There are 3 possible situations that affect this:

• First option- the enterprise is at the break-even point when production volume and sales volume coincide.
• Second option- production volumes are greater than sales volumes.
• Third option - sales volumes are greater than production volumes.

If there is an excess of production, the enterprise receives less profit and, accordingly, the indicator under consideration decreases. In this situation, production volumes should be planned more carefully. How to plan production is a must. But in the opposite situation, when sales volumes exceed production volumes, the financial stability and profit of the enterprise is greater, but the dependence of the enterprise on counterparties increases, for this reason part of the margin of financial strength will be imaginary.

What is the financial strength ratio?

Financial strength ratio- this is the ratio of the volume of the enterprise’s financial strength margin to its total revenue in percentage terms, that is, by how much revenue can be reduced (in percentage terms) before the enterprise finds itself in the loss zone.

This ratio shows that part of the asset that is financed from sustainable sources, or in other words, the share of those financial sources that organization can be used for a long time in its activities.

Formula for calculating the financial strength coefficient:

Financial strength ratio = ((total revenue) - (critical revenue) / (total revenue)) x 100

The amount of coverage and the financial strength coefficient are related to each other by a linear relationship:

Profit (%) = (coverage amount/total revenue) x (financial strength ratio)

Total

In order to increase the value of the enterprise’s strength coefficient, it is necessary to carry out the following measures:

1. Increase total sales revenue.

1. Increase the number of sales.
2. Increase sales prices.
3. Increase the quantity and sales prices at the same time.

2. Reduce the values ​​at the break-even point.

1. Increase sales prices.
2. Improve the turnover structure through intensive promotion of products that have a large specific coverage amount as a percentage of the price.

3. Reduce costs.

1. Reduce variable costs.
2. Reduce fixed costs.
3. Reduce both fixed and variable costs at the same time.

4. Replace fixed costs with variable ones, for example, when switching to procurement from outside your own production.

Financial strength is one of the main indicators of a company’s promising and dynamic activities. In other words, this is the critical point at which break-even operation of the enterprise is realized at an extremely low production volume.

What is a financial safety margin?

The FP stock is a value that determines the volume of a possible reduction in production, at which the company will not incur losses. That is, this is the relationship between current sales figures and sales figures at the break-even point. The result is expressed as a percentage.

Main purposes of calculations

The FFP is determined with the following objectives:

• If a reduction in revenue from product sales is planned, the company needs to find out to what extent sales can be reduced. The critical point is the state of the company in which it does not incur losses, but sells a minimum volume of products. That is, the organization in this case works “to zero”.
• Finding the financial stability of the company.
• Analysis of the risk of losses when reducing production.

Calculation of the ZPF provides the solution to the following tasks:

• Analysis of the financial stability indicator.
• Assessment of existing bankruptcy risks.
• Determining methods to increase financial strength.
• Establishing safe levels of sales reduction.
• Comparison of different forms of products sold.
• Ensuring a competent pricing policy.

Documents used in determining the margin of financial safety

When calculating stock, information is taken from company documents. The more accurate the initial values ​​are, the more accurate the result will be. Let's consider the documents on the basis of which calculations are made:

1. Balance sheet. It reflects retained earnings and uncovered losses. From the document you can understand the current state of the organization’s property, capital and liabilities. Based on the balance, a third-party user can analyze the company’s creditworthiness and make a decision on cooperation.
2. Gains and losses report. The standard reporting period is one year. Based on the document, you can analyze financial results activities. The balance sheet allows you to analyze the dynamics of profit values ​​and determine the degree of influence of third-party factors.
3. Appendix to the balance sheet. Includes provisions that disclose asset and liability items.

If necessary, other documents may be used.

Formula for calculation

ZPF is determined by this formula:

Total revenue – critical revenue

The FP reserve indicator may change under the influence of the following factors:

• Production volumes and sales indicators are similar.
• Production volume values ​​exceed sales volume values.
• Sales figures exceed production values.

If an enterprise produces too many goods, but cannot sell them, profits are low and the margin of financial strength decreases. Therefore, in order to maintain optimal level indicator, you need to plan the scale of production well. Another unfavorable option is the excess of sales indicators over production indicators. In this case, the organization’s dependence on its counterparties increases.

What is the financial strength ratio?

The FP ratio is the ratio of the FP stock indicator to total revenue, expressed as a percentage. The scale of revenue reduction at which the company will begin to incur losses is determined. The ratio reflects the portion of assets that are formed from stable sources. That is, sources of financing are determined through which the company can continue its activities for a long time.

The CFP is determined by this formula:

Total revenue – critical revenue: total revenue *100

Based on the obtained indicator, one can judge financial condition companies.

Analysis of the obtained coefficient

A ratio of more than 10% is evidence of the high financial strength of the company, as well as increased profitability. The higher this indicator, the greater the financial strength. The closer the value is to the break-even point, the faster the FP stock changes. The inverse relationship is also true. A high value of the FP stock indicates the following processes in the company:

• Small risks of losses.
• Financial stability.
• Small revenue at which the organization does not incur losses.

Let's take a closer look at the coefficient values:

• 0.5-0.8 – relative stability of the enterprise.
• 0,2-0,5 – unstable position companies.
• Less than 0.2 – crisis situation, close to bankruptcy.

The FP reserve is an indicator that is constantly changing. It is recommended to regularly monitor it and analyze changes.

The main stages of determining the margin of financial safety

To determine the FFP, this algorithm is proposed:

1. Calculation of FP reserve.
2. Determining the impact of the difference in the number of sales and production indicators through the correlation of the FP indicator, taking into account the growth of inventories.
3. Determination of the optimal increase in the scale of implementation and the limiter of the FFP.

The obtained result is used in predicting the production rate and ensuring a stable indicator.

How to increase your financial safety margin?

To change the FP stock, the following actions are taken:

1. Increase in total revenue from product sales. This is done by increasing sales volume and increasing the cost of products. It is possible to take both of these measures simultaneously.
2. Increasing the indicator to the break-even point. This is done by increasing the cost of products and investing in product promotion.
3. Reduced costs. This can be done by reducing variable and fixed costs.

Another method of increasing the financial reserve is to replace fixed expenses with variable ones.

The company's goal is to increase the stock of pharmaceutical products. To achieve this, you need to regularly analyze the PPF indicators and formulate strategies to increase the stock. To increase the stock these methods are used:

1. Attracting new customers and increasing sales volume by participating in tenders.
2. Changes in product costs. It must be justified in order to increase the company's income.
3. Increase in production capacity.
4. Reducing variable costs, which include the cost of raw materials, fuel and other resources used in production.
5. Reducing fixed costs, which include salaries for low-skilled employees, automation of personnel activities.
6. Introduction into the company's activities innovative technologies allowing to reduce costs.

Which method should you choose? It all depends on the specifics of the enterprise’s activities. For example, some companies do not want to reduce the cost of products. The price of the product can be as low as possible. It would be wiser to use funds to promote the product.

FOR YOUR INFORMATION! There are no specific ways to increase the financial stability margin. The indicator can be increased by improving the quality of the enterprise. The company's goal is to increase sales figures and make products more attractive.

The margin of financial strength is economic indicator, demonstrating the enterprise’s resistance to production reductions. This value shows by what volume the rate of production of new products can be reduced without incurring losses.

The indicator is expressed as the ratio of the difference between the sales volume existing at a certain point in time and the sales volume that the company will have at the break-even point. The final value of these calculations is presented as a percentage. Naturally, the higher the indicator reflecting financial strength, the more stable the position of the enterprise and the lower the risk of economic losses for it.

The greatest influence on this value is exerted by the size of existing costs. The higher they are, the less this moment time, as well as in the foreseeable future, a margin of financial strength and vice versa. The greatest effect is achieved by reducing existing fixed costs.

In real economic practice, the existence of three situations has been noted that determine the amount of profit and, accordingly, the margin of financial strength:

• The first situation reflects the moment when the enterprise reaches a state called the break-even point, that is, production completely coincides with sales. In this case, there is no adjustment to the existing margin of financial strength and profit, so the indicator remains unchanged.
• The second situation is when a company produces more than it sells. This negatively affects the margin of financial safety, since excess production leads to lost profits. To get out of this state will require careful and long-term planning production volumes, combined with demand analysis.
• The third case is the volume of sales of goods is higher than the volume of production. In such a situation, there is an increase in profits and, in connection with this, financial strength. But the other side of the coin is an increase in dependence on existing counterparties, so the improvement in the situation will be imaginary. It turns out that if the volume of reserves changes sharply, a special form of financial instability, called hidden, will appear.

To make a full assessment of the existing margin of financial strength, you will need not only to make a calculation using the given formula, but also to analyze various aspects economic activity. First of all, you should find out what effect the difference between existing sales and production indicators has, and also take into account the existing indicator of an increase in the amount of inventory. Depending on the results obtained, the financial safety margin will be adjusted.

In practice, if this indicator is above 10%, then the company is considered very stable. Such a company is able to withstand changes in the volume of sales and production of goods without any economic losses.