Systematization of indicators in assessing the financial condition of companies in the non-financial sector

Abstract

Introduction. In the current economic conditions, companies in the non-financial sector face the challenge of conducting an in-depth analysis of their financial condition in order to form an expert opinion on strategic development and determine their positioning in the transforming economic environment. The variety of financial indicators presents an analyst with the task of selecting the most relevant ones for the purpose of the analysis and forming a representative expert opinion. In this regard, it is advisable to systematize the financial indicators in a way that differs from the existing approaches by selecting coefficients based on the type of cash flow. This approach is based on the need to take into account operational changes that occur especially frequently in non-financial sector companies and affect the intensity of cash flows and their impact on the financial condition of the company. The purpose is to systematize the indicators of assessing the financial condition, in the context of the types of activity of companies in the non-financial sector, and to test the proposed system on the example of a number of corporations, which allows to obtain relevant results for use in practice. Methods. The methodological framework of this study is based on a conceptual and theoretical generalization of the tools for conducting financial analysis of corporations, based on modern research in the field of financial management. Fundamental methods (synthesis, analysis, generalization) in the systematization of financial indicators have made it possible to identify the key ones, taking into account the specifics of the formation of cash flows of companies in the non-financial sector, and a graphical representation of the values of indicators over the past ten years has revealed the dynamics of their changes, which is also an indicator of determining the most variable and including them in the system for analyzing the financial condition. Results. The article proposes a systematization of financial indicators based on the classification of cash flows by type of activity, which will allow for a point-based assessment of a company's condition in terms of its functionality. This research approach provides an opportunity to streamline the toolkit and align it with long-term objectives. Conclusions. In addition to using coefficient analysis based on the calculation of relative values, it is proposed to compare operating cash flow with net profit. Since net income includes non-monetary expenses (depreciation and amortization), it is desirable for a mature company that operating cash flow exceeds net profit. If a company has a high net profit but little operating cash flow, this may be a sign of poor profit quality. This approach to financial analysis is practice-oriented, and its use will enable a reliable interpretation of the analytical results obtained. The conclusions and generalizations of the study can be applied by Russian companies in the non-financial sector to form an analytical basis for developing a strategy for their development in the context of individual types of activities.