Analysis of the effectiveness of financial investments and investment policy of companies. Analysis of the effectiveness of financial investments Analysis of the effectiveness of investment of funds in shares

It is necessary to study the dynamics of these indicators, the implementation of the plan, conduct an inter-farm comparative analysis, determine the influence of factors and develop measures to increase their level.

Retrospective assessment of the effectiveness of real investments

The following indicators are used to assess the effectiveness of investments:

additional output per ruble of investment:

E = (VP 1 - VP 0): I,

where E is the efficiency of investments;

VP 0, VP 1 - gross volume of production, respectively, with initial and additional investments;

And - the amount of additional investment;

reduction in production costs per ruble of investment:

E = Q 1 (C 0 - C 1): And,

where C 0, C 1 - the cost of a unit of production, respectively, with the initial and additional capital investments;

Q 1 - the annual volume of production in kind after additional investment;

reduction of labor costs for production per ruble of investment:

E = Q 1 (TE 0 - TE 1): And,

where TE 0 and TE 1 are, respectively, labor costs for the production of a unit of output before and after additional investments.

If the numerator Q 1 (TE o - TE 1) is divided by the annual fund of working time per worker, then we get a relative reduction in the number of workers as a result of additional investment;

increase in profit per ruble of investment:

E = Q 1 (P ’1 - P’ 0): And,

where P ’0 - P’ 1 - respectively, profit per unit of production before and after additional investment;

return on investment:

t = I / Q 1 (P '1 - P' 0) or t = I / Q 1 (C 0 - C 1).

All of the above indicators are used for a comprehensive assessment of investment efficiency both as a whole and for individual objects.

The main direction of increasing the efficiency of investments is the complexity of their use. This means that with the help of additional investments, enterprises must achieve optimal ratios between fixed and circulating assets, active and passive parts, power and working machines, etc.

Important conditions for increasing the efficiency of investment activity are the reduction of the construction in progress and the reduction in the cost of commissioned facilities, as well as their correct operation (full use of design capacities, prevention of downtime of machinery, equipment, etc.).

Financial investment is an active form of effective use of temporarily free funds of an enterprise. This is an investment of capital in:

Profitable stock instruments (stocks, bonds and other securities freely traded on the money market);

Income types of monetary instruments, such as certificates of deposit;

Statutory funds of joint ventures with the aim of not only making a profit, but also expanding the sphere of financial influence on other business entities, etc.

In the process of analysis, the volume and structure of investment in financial assets are studied, the rate of its growth, as well as the profitability of financial investments in general and individual financial instruments, are determined.

Retrospective assessment of the effectiveness of financial investments is made by comparing the amount of income received from financial investments with the average annual amount of this type of assets. The average level of profitability (DCR) may change due to: structure of securities (UD i) with different levels of profitability; the level of profitability of each type of securities acquired by the enterprise (DCK i)

DVK total = ∑ (Ud i * DVK i).

Table 4 - Analysis of the effectiveness of the use of long-term financial investments

The data in Table 4 show that the profitability of financial investments for the reporting year increased by 2.16%, including due to changes in:

structure of financial investments

ΔDVK = ∑ (ΔUD i * DVK i 0) = [(-3.33) * 35 + (+3.33) * 30] / 100 = -0.17%;

the level of profitability of certain types of investments

ΔDVK = ∑ (UD i * ΔDVK i) = (46.67 * 5 + 53.33 * 0) / 100 = + 2.33%.

The yield on securities must also be compared with the so-called alternative (guaranteed) income, which is taken as the refinancing rate or interest received on government bonds or treasury bonds.

Forecasting the economic efficiency of individual financial instruments can be done using both absolute and relative indicators. In the first case, the current market price of the financial instrument, at which it can be purchased, and its intrinsic value are determined based on the subjective assessment of each investor. In the second case, its relative profitability is calculated.

The difference between the price and the value of a financial asset is that price - this is an objective declared indicator, and intrinsic value - calculated indicator, the result of the investor's own subjective approach.

The current intrinsic value of any security in general form can be calculated by the formula:

where РV phi is the real current value of the financial instrument;

CF n - expected returnable cash flow in the n-th period;

d is the expected or required rate of return on a financial instrument;

n is the number of periods of income.

Substituting in this formula the values of the estimated cash receipts, profitability and the duration of the forecasting period, you can calculate the present value of any financial instrument.

If the actual amount of the invested costs (market value) for a financial instrument exceeds its current value, then it makes no sense for an investor to purchase it on the market, since he will receive less than expected profit. On the contrary, it is profitable for the holder of this security to sell it under these conditions.

As can be seen from the above formula, The present value of a financial instrument depends on three main factors: expected cash flows, the length of the forecast period of income and the required rate of return. The forecasting horizon depends on the type of securities. For bonds and preferred stocks, it is usually limited, and for common stocks it is infinite.

The required rate of return, laid down by the investor in the calculation algorithm as a discount, reflects, as a rule, the profitability of alternative capital investment options for the given investor. This can be the size of the interest rate on bank deposits, the level of interest on government bonds, etc.

The peculiarities of the formation of returnable cash flow for certain types of securities determine the variety of models for determining their current value.

Basic model for assessing the present value of bonds with periodic interest payments as follows:

where PV o bl - the current value of bonds with periodic interest payments;

CF n - the amount of interest received in each period (product of the bond face value by the declared interest rate (N o bl * k));

N o bl - the face value of the bond redeemed at the end of its circulation period (t);

k - annual coupon interest rate.

Example.

It is required to determine the present value of a three-year bond, the face value of which is 1000 rubles, with a coupon rate of 8% per annum, paid once a year if the discount rate (market rate) is 12% per annum.

Consequently, the rate of return of 12% will be ensured when the bond is purchased at a price approximately equal to RUB 900.

If the required rate of return is 6%, then the present value of the bond will be:

From this it is clear that the present value of the bond depends on the market interest rate and the maturity date. If d> k, then the current value of the bond will be less than the face value, i.e. the bond will be sold at a discount If d< k, то текущая стоимость облигации будет больше номинала, т.е. облигация продается c премией. Если d = k, то текущая стоимость облигации равна ее номиналу.

If the yield of a bond does not change during its circulation, then as the term to maturity decreases, the value of the discount or premium will fall. Moreover, these changes are more significant as the maturity date approaches (Figure 2).

Bond rate

with a premium

Nominal

price

Bond rate

at a discount

Today Maturity Date

Figure 2 - Change in the bond rate during its circulation

The yield on coupon bonds consists of periodic interest payments (coupons) and the exchange rate difference between the market and par price of the bond. Therefore, to characterize the yield of coupon bonds, several indicators are used:

a) coupon yield, the rate of which is announced when bonds are issued;

b) current profitability, which is the ratio of interest income to the bond purchase price:

where N obl is the par value of the bond;

k - coupon interest rate;

P is the purchase price of the bond.

v) yield to maturity:

where F is the redemption price;

Р - purchase price;

GF - the sum of the bond's annual coupon yield;

n is the number of years to maturity.

Model for assessing the present value of bonds with payment of the entire amount of interest at its redemption:

where N * k * n is the sum of the interest on the bond paid at the end of its circulation period.

Model for assessing the current value of bonds sold at a discount without interest payment:

Discount bond yield model:

a) at the effective interest rate

b) at the simple interest rate

where P k - bond rate (the ratio of the purchase price to the bond par value);

T is the number of calendar days in a year;

t - number of days until bond maturity.

Suppose you want to determine the level of bond yield to maturity, if the purchase price is RUB 850, the redemption price (par) is RUB 1000, and the bond circulation period is 90 days:

a) at the effective interest rate

b) at the rate of simple interest

To estimate the present value of a share when it is used for an indefinite period the following model is usually used:

where PV share is the current value of a share used for an indefinite period of time;

D t - the amount of dividends expected to be received in the t-th period;

d - alternative rate of return in the form of a decimal fraction;

t is the number of periods included in the calculation.

The current value of shares with a stable dividend level is defined as the ratio of the amount of the annual dividend to the market rate of return:

PV a kts = D i / d = 200 / 0.15 = 1333 rubles.

To determine the present value of shares used for a specific period, apply the following model:

where KS is the market value of the share at the end of the period of its sale;

n - the number of periods of use of the stock.

Example.

The nominal value of a share is 1,000 rubles, the level of dividends is 20%, the expected market value of a share at the end of the period of its sale is 1,100 rubles, the market rate of return is 15%, the period of use of the share is 3 years, the frequency of payment of dividends is once a year ...

Income from shares consists of the amount of dividends received and income from the growth in their value. The current profitability is determined by the ratio of the amount of dividends per share for the last year to the market value of the share:

Y t e k = D / P a * 100%.

The market value of a share is calculated in comparison with the bank deposit rate (r d):

P a = D / r d * 100%.

The final return on the share (Y) is the ratio of the total income to its original cost:

where D 1 - income in the form of received dividends;

P 1 - the market price of the share at the current moment, at which it can be sold;

Р 0 - the purchase price of the stock;

Y d - dividend yield of the share;

Y c - capitalized stock return.

Suppose an enterprise acquired a block of shares two years ago at a price of 10 thousand rubles. for each. The current market price of a share is 15 thousand rubles, and the amount of dividends received per share for this period is 3 thousand rubles. Hence, the total income from one share is 8 thousand rubles. , and its total yield is 80% (8/10 * 100), including dividend yield - 30% (3/10 * 100), capitalized yield - 50% [(15 -10): 10 * 100].

Using the above models, you can compare the profitability of investments in various financial instruments and choose the most optimal option for investment projects.

The level of return on investments in specific securities depends on:

Changes in the level of interest rates in the money market of loan capital and the exchange rate;

Liquidity of securities, determined by the time it takes to convert financial investments into cash;

the level of taxation of profits and capital gains for different types of securities;

The amount of transaction costs associated with the purchase and sale of securities;

Frequency and timing of receipt of interest income;

Inflation rate, supply and demand and other factors.

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Introduction

Conclusion

Practical part

List of sources

Applications

Introduction

The topic of the course work is "Analysis of the effectiveness of capital and financial investments."

The relevance of the topic chosen for research in modern conditions is high, since a reasonable and purposeful investment strategy is important for any organization. Investments in the implementation of various projects carry the task of achieving certain goals, depending on the policy pursued by the enterprise. The goals can be different: increasing the efficiency of the organization, replacing outdated equipment, increasing market share, etc.

In addition, the relevance of the topic can be justified by the fact that in the world of active competition one cannot go with the flow: offer identical services and products that are in demand at the moment. Improving operations and developing innovative products requires funds that can be obtained through capital and financial investments.

Capital investments are the costs of labor, material and financial resources for the creation, expansion, reconstruction and technical re-equipment of fixed assets, as well as changes in working capital, which has a direct impact on increasing the company's ability to achieve its strategic or operational goals.

Financial investments are investments in securities, authorized capital of other organizations, deposits in credit institutions, accounts receivable acquired on the basis of assignment of the right of claim, as well as in the form of loans granted to other organizations.

The purpose of the course work is to consider the theoretical aspects of the analysis of the effectiveness of capital and financial investments.

The objectives of the course work include:

Definition of the concept of capital investment;

Determination of the essence of financial investments;

Identification of the stages of analysis of the effectiveness of capital and financial investments;

Study of methods for analyzing the effectiveness of capital and financial investments;

Analysis of the property and financial results of the enterprise;

Development of measures to improve the activities of the enterprise.

In the course of writing the term paper, the following methods were used:

General scientific: description, comparison;

Special methods of economic analysis:

horizontal approach;

vertical approach;

method of financial ratios.

The theoretical basis of the research is the materials of monographs, articles and research papers of professors, doctors of sciences, economists, such as: Orlovoy E.R., Zakharova A.V., Khlebnikova V.V., Tapman L., Sharp U. and others.

The regulatory framework for the study is federal laws and regulations of the Russian Federation.

1. The concept of capital and financial investments

1.1 The essence of capital investments

Today, in economic publications, capital investment is often defined as an integral part of capital investment.

Capital-forming investments are investments in new construction, expansion, reconstruction, technical re-equipment and maintenance of existing production, as well as investments in the creation of inventories, an increase in working capital and intangible assets.

As an integral part of capital investment, capital investment is the cost allocated to the creation and reproduction of fixed assets.

Thus, the concept of capital investments in the economic literature has something in common with the definition of capital investments given in the Federal Law of the Russian Federation "On investment activities in the Russian Federation carried out in the form of capital investments" dated February 25, 1999, according to which "capital investments are investments in fixed assets (fixed assets), incl. costs for new construction, expansion, reconstruction and technical re-equipment of existing enterprises, the purchase of machinery, equipment, tools, inventory, design and survey work and other costs. "

Capital investments for production purposes are:

Acquisition of objects of fixed assets intended for use in entrepreneurial activity and objects of unfinished capital construction intended for use in entrepreneurial activity;

Capital construction in the form of new construction and (or) the creation of fixed assets;

Reconstruction, modernization of fixed assets and (or) objects of construction in progress belonging to the payer.

There are many definitions of investment, but in general they all share several characteristics:

1. Capital investments usually involve significant financial costs.

2. The return on capital investment can be obtained over a number of years in the future.

3. There are elements of risk and uncertainty in predicting the results of capital investments.

4. Those investments, which are usually considered as capital investments, involve the purchase of equipment, expansion of production capabilities or any other costs that are directly related to increasing the ability of the enterprise to achieve its strategic or operational (tactical) goals.

Based on economic theory, we can say that the concept of capital investment is, in essence, a kind of real investment. Also, real investments include contributions to fixed assets, intangible and tangible production assets. In this light, the essence of capital investment is part of investment in fixed assets.

It turns out that any investment of technical and financial resources in the formation and regeneration of fixed assets is in essence a capital investment.

Thus, the term "capital investments" can be defined as follows: capital investments are the costs of labor, material and financial resources for the creation, expansion, reconstruction and technical re-equipment of fixed assets, as well as changes in working capital, which has a direct effect on increasing the capacity enterprises to achieve their strategic or operational goals.

The need for capital investments is due to long-term sales forecasts, which determine the capacity and form of production processes, in some cases for many years.

Fixed assets are created through capital investments. Their size, structure and placement create a base that significantly affects the volume of products, their quality and assortment, as well as the possibilities for further development of production.

The mastered capital investments, as a rule, are used for a long time: buildings serve 20-100 years, machinery and equipment - 3-10 and more years. Thus, fixed assets to a large extent characterize the state of technology and technology at the time of capital investments. Ill-considered capital investments can adversely affect technical development and technology improvement, since in the future significant funds may be required for the reconstruction and modernization of fixed assets.

When making capital investments, economic criteria are important, but not the only ones. For example, capital investments aimed at improving the environment serve to preserve certain production factors, etc. In such cases, capital investments should be evaluated in accordance with non-economic criteria.

The purpose of using capital investments is to achieve a fuller satisfaction of the needs of society after their development. This is the main requirement from which one should proceed when deciding the feasibility of additional capital investments.

The main sources from which capital investments are made:

Equity capital of enterprises (depreciation, net profit, issue and sale of shares of a joint-stock company, contributions to the authorized capital of business entities);

Debt capital in the form of loans, issuance of securities (except for shares), foreign borrowing, appropriations from federal, regional and local budgets, various funds for supporting entrepreneurship, provided on preferential terms and at no cost.

According to the sources of financing, there are centralized and decentralized capital investments.

In addition, a distinction is made between direct, conjugate and total (gross) capital investments.

Direct capital investments - capital investments in the growth of fixed assets directly involved in the manufacture of products or the performance of a certain work.

Associated capital investments - additional capital investments for the growth of fixed assets in related industries directly related to the development of basic production.

Total (gross) capital investments - total capital investments, investments in fixed assets during a certain period, for example, a year; includes investment in renovation and net investment.

According to the direction of use, capital investments are classified into production and non-production. Production capital investments are directed to the development of the enterprise, non-production - to the development of the social sphere.

In the economic literature, there are other classifications of capital investments, reflecting, as a rule, the detailing of their main forms. In particular, capital investments are subdivided into the following types:

Defensive, aimed at reducing the risk of purchasing raw materials, components, maintaining the price level, protecting from competitors, etc .;

Offensive, due to the search for new technologies and developments, in order to maintain a high scientific and technical level of manufactured products;

Social, the purpose of which is to improve the working conditions of personnel;

Mandatory, the need for which is associated with the satisfaction of state requirements in terms of environmental standards, product safety, other conditions of activity, which cannot be ensured by only improving management;

Representative, aimed at maintaining the prestige of the enterprise.

1.2 The essence of financial investments

Financial investments are investments of an organization in assets with the aim of obtaining additional income in the form of interest, dividends or capital appreciation.

Assets are accepted for accounting as financial investments if the following conditions are met at the same time:

The presence of duly executed documents confirming the existence of the organization's right to financial investments and the receipt of income arising from this right;

Transition to the organization of financial risks associated with financial investments;

Ability to bring economic benefits in the future in the form of interest, dividends or their value added.

An organization's financial investments are investments in financial assets: government securities, bonds and other securities of other organizations, in the authorized (joint-stock) capital of other organizations; financial investments also include loans provided to other organizations in order to generate income.

Income from financial investments made are the received dividends, interest, as well as the difference received from the sale of securities at a cost exceeding the purchase price.

In accounting, the terms "financial assets" and "financial investments" are used almost interchangeably. The term "financial investments" emphasizes the fact of making investments, and the term "financial assets" indicates the results of these investments: securities purchased and stored in the organization or in special vaults and other assets of the organization.

Financial investments are classified according to the following criteria:

1) in connection with the authorized capital;

2) by forms of ownership;

3) the terms for which they were made, etc.

Depending on the connection with the authorized capital, there are:

1) financial investments for the purpose of forming the authorized capital (shares, contributions to the authorized capital of other organizations);

2) debt securities (bonds, mortgages, certificates of deposit and savings certificates, treasury bonds, bills of exchange

By forms of ownership, there are:

1) state;

2) non-government securities.

Depending on the period for which the financial investments were made, they are subdivided:

1) for long-term (when the established maturity period exceeds one year);

2) short-term (when the established maturity date does not exceed 12 months).

Let's consider the main functions of financial investments.

1) Control.

With the help of financial investments, the organization can increase the degree of corporate control over the activities of the invested organization and business structures (for example, holding companies).

2) Distribution.

Financial investments contribute to the redistribution of funds between various areas of business.

3) Insurance.

Effectively formed financial investments protect funds from the inflationary component of the economy, lead to diversification and hedging of the risk of the organization's activities. Financial investments can form a safety stock of highly liquid assets of the organization.

4) Settlement (investments as a means of payment).

It is possible to use objects of financial investments (for example, a financial bill) in settlements with counterparties.

5) Investment.

Investment of temporarily free cash and other funds in securities, the market value of which is able to grow and generate income in the form of interest, dividends, profits from resale, etc. working capital

Summing up the results of this chapter of the work, we can conclude that in a difficult economic situation, when most enterprises are literally placed in conditions of survival, the problem of enhancing the activities of economic entities has become very urgent. Therefore, the allocation of investment activities among other types carried out by an enterprise in the course of its "life" is a prerequisite for achieving effective results of functioning. The use of capital investments in an enterprise is always aimed at increasing the efficiency of its work and, ultimately, increasing profits.

2. Analysis of the effectiveness of capital and financial investments

2.1 Stages of assessing the effectiveness of capital and financial investments

The effectiveness of capital and financial investments as a whole is assessed in order to determine the potential attractiveness of the project for potential participants and the search for sources of funding.

The effectiveness of participation in a project for the implementation of capital and financial investments is determined in order to check the feasibility of the project and the interest in it of all its participants and includes:

Effectiveness of participation of enterprises and organizations in the project;

Investment efficiency;

Effectiveness of participation of higher-level structures in the project, including:

a) regional and national economic;

b) industry;

c) budget efficiency.

Among the most important basic principles for assessing the effectiveness of investments are the following:

Consideration of an investment project throughout its entire life cycle (assessment of the project's effectiveness should be carried out when developing an investment proposal, when developing an investment feasibility study, when developing a technical assignment and during the implementation of a project in the form of economic monitoring as part of project cost management);

Cash flow modeling;

Comparability of conditions for comparing different projects (or project options);

The principle of positivity and maximum effect;

Time factor accounting;

Accounting only for upcoming costs and receipts;

Consideration of the most significant consequences of the project;

Accounting for the presence of different project participants;

Multi-stage assessment;

Accounting for the impact on the efficiency of the project, the need for working capital;

Accounting for the impact of inflation and the possibility of use

Accounting (in quantitative form) the impact of uncertainty and risk accompanying the implementation of the project.

As a rule, the assessment of the effectiveness of the investment project is carried out in three stages.

1. The initial step is an expert assessment of the public significance of the project.

Projects that are aimed at improving the country's economy (region, settlement, etc.), innovative projects, environmental projects and some other types are considered socially significant.

2. At the second stage, the performance indicators of the project as a whole are calculated. The purpose of this stage is an integral economic assessment of design solutions. For local projects, only their commercial efficiency is assessed. For socially significant projects, their socio-economic efficiency is assessed first of all. If the assessment is unsatisfactory, such projects are not recommended for implementation and cannot qualify for state support. If their socio-economic efficiency is sufficient, their commercial efficiency is assessed.

3. The third stage of the assessment is carried out after the development of the financing scheme.

At this stage, the composition of the participants is clarified and the financial feasibility and effectiveness of participation in the project of each of them are determined (regional and sectoral efficiency, the effectiveness of participation in the project of individual enterprises and shareholders, budgetary efficiency, etc.).

It should be clarified that the modern assessment of investment efficiency has several problems. Investors assume that investments are assets that have the ability to generate cash flows - both now and in the future. Future cash flows cannot be accurately measured by definition. Long-term sustainability and investment performance cannot be measured either. In addition, it is difficult to assess the factors affecting future cash flows (non-financial indicators), and to give rough estimates of the future cash flows themselves. Also, the assessment of the effectiveness of investments has difficulty in determining the quality of the assessment. If the initiator of the investment is keen on his commercial idea, he makes calculations not in order to give this idea an objective assessment, but in order to confirm his positive opinion about it. As a result, he is selective about information, ignoring the part that contradicts his beliefs.

So, among the principles for evaluating investments, the most important can be distinguished - this is considering them in accordance with the stages of the life cycle, modeling cash flows, taking into account the time factor and inflation, the principle of positive and maximum effect. It was also determined that the assessment of investments is carried out in three stages - the assessment of the significance of the project, the calculation of investment efficiency indicators, and the development of a financing scheme. In addition, the main problems of assessing the effectiveness of investments were identified - this is the impossibility of measuring cash flows in the long term, the impossibility of taking into account all factors in the assessment, errors in forecasting with subjective judgment.

2.2 Methods for assessing the effectiveness of capital and financial investments

All existing methods for assessing the effectiveness of capital and financial investments can be divided into two main groups:

Methods for evaluating the effectiveness of investments, which do not include discounting;

Methods for evaluating the effectiveness of investments, including discounting.

Methods for evaluating performance that do not include discounting are sometimes called statistical methods for evaluating investment performance. When using these methods, in some cases, they resort to such a statistical method as the calculation of average annual data on costs and results (income) for the entire period of the project. This technique is used in cases where costs and benefits are unevenly distributed over the years. As a result of this methodological approach, the time aspect of the value of money, factors associated with inflation and risk are not fully taken into account.

Statistical valuation methods that do not include discounting are most rational to apply in cases where costs and benefits are evenly distributed over the years of project implementation and their payback period covers a short period of time - up to five years.

The entire set of statistical methods for assessing investment efficiency can be conditionally divided into two groups:

1. Methods of absolute efficiency of investments (calculation of the payback period of investments; rate of return on capital).

2. Methods of comparative efficiency of capital investment options (method of accumulated balance of cash flow for the billing period; method of comparative efficiency - method of reduced costs; method of profit comparison).

Often, to assess the effectiveness of financial and capital investments, the method of determining the payback period of investments is used.

This method is one of the simplest and most common in analytical practice. This estimate-based method does not account for changes in value over time and is based on comparing average annual cash inflows and returns with investments. The payback period (PP), if income is evenly distributed over the years, is calculated by dividing the one-time costs by the amount of annual income.

For all its simplicity, this method has a number of disadvantages that must be taken into account when analyzing:

1. Does not take into account the return on invested capital or the profitability (profitability) of the project. With the same payback period, a project that brings a large amount of profit over the entire period of operation is more profitable.

2. Since this method is based on undiscounted estimates, it does not take into account the distribution of cash inflows and outflows over the years. The preferred project is the one that provides higher cash incomes in the first years.

The method of calculating the coefficient of investment efficiency is also popular.

This method does not imply discounting and is characterized by the indicator of net profit PN (balance sheet net of taxes). It is easy to use and widely used in practice. The Investment Performance Ratio (ARR) is calculated by dividing the average annual profit PN by the average investment. The method has the same disadvantages as the previous one: it does not take into account the time component of cash flows, the total amount of profit for the entire period of the project, and also does not distinguish between projects with the same amount of profit, but varying the amount of profit over the years.

Consider methods for assessing the effectiveness of investments, including discounting.

Methods for evaluating the effectiveness of investments based on discounting are used in cases of projects, the implementation of which takes a significant amount of time.

Determination of the effectiveness of investments by methods including discounting is carried out in accordance with the calculations of the following indicators: financial investment capital discounting

Net present value;

Internal rate of return;

Profitability index;

Payback period.

To assess the effectiveness of financial and capital investments, the method of calculating the net present value is often used, which is based on comparing the amount of investment (IC) and the total amount of discounted net cash receipts (PV). Since the cash inflow is distributed over time, it is discounted using the interest rate (h), which is set by the investor himself, based on the percentage of return that he wants or can have on the invested capital. If the calculated value of NPV> 0, then the project should be taken NPV<0, то проект следует отвергнуть? NPV=0, то проект ни прибыльный, ни убыточный.

Also popular is the method of calculating the rate of return on investment.

The rate of return (IRR) is the value of the discount rate at which the NPV of the project is zero, i.e. IRR shows the maximum allowable relative expenditure level, correlated with the project data. The economic meaning of this indicator is that an enterprise can accept those investment projects, the level of profitability of which is not lower than the relative price of advanced capital (CC). If: IRR> CC, then the project should be accepted; IRR< CC , то проект следует отвергнуть; IRR = CC , то проект ни прибыльный, ни убыточный.

The practical application of the listed methods is complicated if the analyst does not have a specialized financial calculator or special statistical tables in which the values of compound interest, discount factors, discounted value of the monetary unit, etc. are tabulated.

It can be concluded that the efficiency of capital and financial investments is characterized by a system of economic indicators reflecting the ratio of costs and benefits associated with investments and allowing to judge the economic attractiveness of the project for its participants, the economic advantages of some projects over others.

Thus, we found out that when assessing the feasibility and effectiveness of investments, an extensive system of indicators is determined, and the choice of a method for assessing efficiency (without discounting or with discounting) depends on the scale of the project and the type of project.

Conclusion

In the course work, the issue of analyzing the effectiveness of capital and financial investments is considered.

Based on the results of the first chapter of the work, it was concluded that in a difficult economic situation, when most enterprises are literally placed in conditions of survival, the problem of enhancing the activities of economic entities has become very urgent. Therefore, the allocation of investment activities among other types carried out by an enterprise in the course of its "life" is a prerequisite for achieving effective results of functioning. The use of capital investments in an enterprise is always aimed at increasing the efficiency of its work and, ultimately, increasing profits.

It has been determined that the market approach to understanding the essence of capital investments consists in considering this concept as a unity of resources, investments and return on invested funds, as well as the inclusion in the composition of capital investment objects of any investments that give income (effect), i.e. the unity of the material and financial components in one concept.

Also, financial investments are of no small importance in the development of the enterprise's activities, which are the organization's investment of its monetary funds and other free resources in assets that are not related to the main activity and the creation of durable objects. It was revealed that financial investments can act not only as settlements, control and distribution of funds, but also for the purpose of business insurance, as well as for making investments.

Based on the results of the second chapter of the work, it was determined that among the principles for assessing capital and financial investments, the most important ones can be distinguished - this is their consideration in accordance with the stages of the life cycle, modeling of cash flows, taking into account the time factor and inflation, the principle of positive and maximum effect. It is also indicated that the process of capital and financial investments is assessed in three stages - assessing the significance of the project, calculating investment efficiency indicators, and developing a financing scheme.

The paper identifies the main problems of assessing the effectiveness of capital and financial investments - this is the impossibility of measuring cash flows in the long term, the impossibility of taking into account all factors in the assessment, errors in forecasting with subjective judgment.

It is indicated that in the analysis of the efficiency of capital and financial investments, statistical methods and methods based on discounting are adopted. The choice of the method for evaluating the effectiveness of investments depends on the scale of the project and the type of project.

Practical part

The object of research is the joint-stock company "Dolomit". Abbreviated name: JSC Dolomit. Date of creation October 13, 1992.

Industry: mining and processing of nonmetallic raw materials for ferrous metallurgy.

The main activity is the extraction of other minerals - the extraction of limestone, gypsum stone and chalk.

Additional activities of Dolomit:

Other ratailing;

Canteen activities at enterprises and institutions.

Based on the data from Appendix 1. we will compose the analytical net balance of the enterprise.

Table 1

Analytical balance - net

Assets composition		Composition of liabilities

Cash and cash equivalents, and short-term financial investments (M + I = A1)		Short-term borrowed funds (Kp2)
Accounts receivable (D)		Accounts payable (Kr3)
Stocks (Z)
Total current assets ()		Total short-term liabilities ()
Fixed assets		Long term duties ()
	Equity
Total property (VA)		Total sources (Bp)

table 2

Analysis of the structure and dynamics of assets

	Amount, thousand rubles	Specific gravity,%	Deviations
Index	at the beginning of the period	at the end of the period	at the beginning of the period	at the end of the period	absolute	by specific weight	growth

Fixed assets
Deferred tax assets
Total section 1


Receivables

Total section 2

The balance sheet currency of the enterprise for 3 years remains practically unchanged, we will display this in Fig. 1.

Figure 1. Change in balance sheet currency, thousand rubles.

As you can see, in 2013 there was an increase in assets, but in 2014 compared to 2012, the state of assets is approximately the same. Over the past three years, the value of deferred tax assets has grown significantly - by 30.9%, VAT is increasing rapidly - by more than 507%. In general, current assets have a trend towards growth, but non-current assets are reduced in 2014 compared to 2012 by 18.9%. We will reflect the structure of assets in Fig. 2.

Figure 2. Structure of assets of JSC Dolomit,%

The recommended ratio of non-current and current assets is 60: 40%, respectively. In 2012, the structure of the company's assets was closest to the recommended value, however, the share of non-current assets decreases annually and in 2014 only 43.6% of the balance sheet consists of them. This structure of assets can be called "light".

In addition, a negative aspect is the high share of receivables in assets - 37.4% in 2012 and 42.3% in 2014. In physical terms, the amount of the company's accounts receivable increases by 12%.

Intangible assets have the smallest weight in the structure of current assets; for such a well-known and large organization, such a value is small.

Table 3

Analysis of the structure and dynamics of liabilities

	Amount, thousand rubles	Specific gravity,%	Deviations
Index	at the beginning of the period	at the end of the period	at the beginning of the period	at the end of the period	absolute	by specific weight	growth
Authorized capital

Reserve capital
Undestributed profits
Total section 3
Index	at the beginning of the period	at the end of the period	at the beginning of the period	at the end of the period	absolute	by specific weight	growth
Loans
Total Section 4
Accounts payable
Short-term loans
Total section 5

From the presented data, it can be noted that the company's equity capital for 3 years has decreased by 10.6%, mainly due to a decrease in the amount of retained earnings. The authorized and reserve capital of the enterprise did not change over the period under review. The enterprise has negative values in terms of increasing liabilities: long-term ones increase by 166.6%, and short-term ones - by 75.11%.

The general structure of the company's liabilities is shown in Fig. 3.

Figure 3. Structure of liabilities of JSC Dolomit,%

Most of the company's liabilities were formed at the expense of its own funds - in 2012 by 90%, in 2014 - by almost 81%. The values indicate that the entity is financially independent.

Table 4

Liquidity balance

						comparison of assets with liabilities at the beginning of the period	comparison of assets with liabilities at the end of the period

The balance is considered absolutely liquid if the following system of inequalities takes place:

A prerequisite for absolute liquidity is the fulfillment of the first three inequalities. The first inequality of the system has the opposite sign from that fixed in the optimal version, the liquidity of the balance to a greater or lesser extent differs from the absolute. This means that the organization does not have enough funds to cover the most urgent obligations.

Table 5

Analysis of liquidity ratios

Name	Conditional designation	Calculation algorithm	Optimal value		End value reporting period	Changes

1. Current liquidity ratio
2. Ratio of urgent (fast, intermediate) liquidity
Name	Conditional designation	Calculation algorithm	Optimal value	Value at the beginning of the reporting period	End value reporting period	Changes
3.The ratio of absolute liquidity
4.The ratio of liquidity when raising funds
5. Net working capital or net current assets, rub.
6. Net assets, rub.

The current liquidity ratio shows how many rubles in current assets fall on one ruble of current liabilities and characterizes the expected payment of the organization for a period equal to the average duration of one turnover of all current assets. Values from 1.5 to 2.5 are considered acceptable for international and Russian practice in most industries, which ensures uninterrupted production and sales of products. It can be seen that the current liquidity indicator for the company has high values, which indicates the efficient allocation of funds. Compared to 2012, the value of the coefficient in 2014 decreased by 1.76 points.

Critical liquidity ratio or intermediate coverage ratio. Recommended value of the critical liquidity ratio Ккл.? 1. For JSC Dolomit, the critical liquidity ratio is normal.

The absolute liquidity ratio shows what part of short-term liabilities can be repaid immediately, and is calculated as the ratio of the most liquid current assets to the debtor's current liabilities. The absolute liquidity indicator also has acceptable values.

The liquidity ratio when raising funds is included in the range of recommended values in both periods, as well as the value of net working capital.

As for the value of net assets, it is positive, but their decline is observed.

Table 6. let's analyze the indicators of financial stability.

Table 6

Analysis of financial stability indicators

Name	Conditional designation	Calculation algorithm	Value at the beginning of the reporting period	Value at the end of the reporting period	Changes

1. Own working capital
2. Availability of own and long-term sources of formation of reserves
3. The total value of the main sources of formation of reserves		SIDI + Kr2
4. Surplus (lack) of own sources of formation of stocks
5. Surplus (lack) of own and long-term sources of formation of reserves
6. Surplus (shortage) of the total amount of sources of formation of reserves

In JSC Dolomit, absolute financial stability is observed, which is characterized by the fact that its own sources are sufficient to form reserves without attracting short-term loans and long-term loans.

Table 7. calculate the financial stability ratios.

Table 7

Financial soundness ratios

Indicator name	Symbol	Algorithm	Normative meaning	Indicator value at the beginning of the period	Indicator value at the end of the period	Changes

1.The ratio of the provision of own circulating assets of current assets
2. Coefficient of provision of inventories with own circulating assets
3. Ratio of maneuverability of equity capital

5. Ratio of long-term borrowing
6. Ratio of real property value
7. Coefficient of autonomy
8. Financial activity ratio
9. Funding ratio
10.Financial stability ratio

The ratio of the provision of its own working capital serves as an indicator of the availability of its own funds in circulation, which is necessary for its financial stability. The equity ratio at the end of the period has a value above 0.1, so we can say that the structure of the organization's balance sheet is satisfactory. The value of the ratio of the provision of inventories with its own working capital exceeds the recommended values, which means that the organization is reinsured without using its own funds in a more efficient way. The same is confirmed by the low values of the financial activity ratio - and in both periods.

The coefficient of the real property value is satisfactory, but has a trend towards decline. The financial stability ratio in both periods is included in the range of recommended values. The autonomy ratio falls within the range of standard values, the company has sufficient financial independence.

Table 8. let's analyze the structure and dynamics of financial results based on Appendix 2.

Table 8

Analysis of the structure and dynamics of financial results

	Amount, thousand rubles	Specific gravity,%	Deviations
Index	Actual value	Base value	Actual value	Base value	absolute	by specific weight	growth

Cost of sales
Gross profit
Business expenses
Administrative expenses
Sales profit
Interest receivable
Other income
other expenses
Profit before tax
Net profit

It follows from this table that the condition for building up economic potential is not met, since the growth rate of revenue is higher than the growth rate of net profit. A negative trend is the decrease in other income of the enterprise by 43.85%. A favorable factor can be called an increase in income on the line "interest receivable" by 138.6%, as well as a decrease in other expenses by 38.8%,

Table 9. let's analyze the indicators of the business activity of the enterprise.

Table 9

Indicators of business activity

Name	Conditional designation	Calculation algorithm	Actual value	Base value
1.Asset turnover ratio
2.The ratio of non-current assets turnover
3.The ratio of current assets turnover
4.Inventory turnover ratio
5.Ratio of accounts receivable turnover
6. The ratio of accounts payable turnover
7. Capital productivity (fixed assets turnover ratio)
8. Capital intensity
9.Average period of accounts receivable repayment in days
Name	Conditional designation	Calculation algorithm	Actual value	Base value
10. Average period of repayment of accounts payable
11. The ratio of the turnover of funds
12. Development per employee
13.Net profit per employee

The turnover ratios of all assets of the organization at the end of the period are increasing, this is a favorable factor in the development of production. The same is confirmed by the increase in the rate of return on assets.

The period of turnover of accounts receivable is reduced, which also favorably characterizes the activities of the organization.

The period of turnover of accounts payable characterizes the average number of days between the purchase of goods and their payment. A decrease in the turnover period in our case means an increase in the rate of payment of the company's debt to resource suppliers.

Production per employee increases in the actual period, as does the net profit per employee. All indicators of business activity indicate favorable trends in activity.

Table 10. we will calculate the profitability indicators.

Table 10

Profitability indicators

Name	Conditional designation	Calculation algorithm	Actual value	Base value
1.Return on Sales Calculated by Gross Profit (Gross Profit Margin)
2. Profitability of sales, calculated on the basis of net profit (profit margin after taxes)
Continuation of Table 10
Name	Conditional designation	Calculation algorithm	Actual value	Base value
3. Return on assets (ROA)
4. Return on assets adjusted (RONA)
5. Return on Investment (ROI)
6. Return on equity (ROE)
7. Return on capital used (ROCE)
8. Return on equity		/ (Average cost of long-term borrowed funds + Average cost of short-term borrowed funds)
9.Cost-return ratio

The organization's ROI is high, especially the ROI. Almost all profitability ratios in the actual period compared with the baseline have a trend towards an increase.

Table 11

Investment activity ratios

Name	Conditional designation	Calculation algorithm	Actual value	Base value

1.The coefficient of investment activity		(Research and development results + Intangible prospecting assets + Tangible prospecting assets + + Profitable investments in tangible assets + + Long-term financial investments) / Non-current assets
2.Investment ratio
Name	Conditional designation	Calculation algorithm	Actual value	Base value
3.Ratio of security of long-term investments
4. Ratio of the structure of long-term investments

Unreasonably low or too high values of the investment activity ratio may indicate a wrong strategy for the development of the organization or insufficient control of the owners of the organization over the activities of management. In this case, the coefficient has low values in both periods. As for the provision of non-current assets with own funds, there is a situation in both periods when they are fully formed at the expense of their own funds. Long-term liabilities for investment purposes are attracted in both periods.

Based on the analysis of the economic condition of the enterprise JSC Dolomit, it can be concluded that the balance sheet currency of the enterprise in 2014 is reduced by less than 1% compared to 2012, which indicates the stability of the activity. The enterprise has its own sources for carrying out its activities. The amount of long-term and short-term liabilities for 2014 increased by 166 and 75%, respectively. The amount of the company's accounts payable in 2014 increased at a high rate - by almost 95%. Solvency indicators are stable in both periods. Indicators characterizing liquidity have high values, which indicates an effective asset management policy. Financial stability indicators also favorably characterize the activities of the enterprise. It was determined that JSC Dolomit had a positive financial result at the end of 2013 and 2014. The condition of building up the economic potential of the enterprise is not met. A negative trend is also an increase in selling expenses by 8.8%.

The profitability indicators of JSC Dolomit are high, especially the profitability of sales, the profitability of borrowed capital. In general, JSC Dolomit has satisfactory performance in all respects and can be recognized as successful in its industry. In the future, you can propose measures to increase profitability and reduce costs.

Among them are the following recommendations: improving the product range of the enterprise and eliminating the least attractive positions for customers, creating a cost management department, which will improve work in terms of cost management, work with suppliers. In addition to these events, you can receive financial resources from the conduct of additional activities by the enterprise, for example, consultations on the development of the Internet business, renting out warehouse premises.

Bibliography

Agapov E.V. Assessment of investment projects. - Moscow State University, 2012 .-- 127 p.

Biryukova T.I. The financial analysis. - M .: MGU, 2013 .-- 411 p.

Bragin E.V. Financial management. - M .: Eksmo, 2012 .-- 399 p.

Vorobiev L.N. Methods for evaluating financial investments // To help the investor. - 2015. - No. 3. - p.16

Kayat E.A. Fundamentals of accounting: a tutorial. - M .: Yurayt, 2012 .-- 365 p.

Kirkina E.Yu. Assessment of investment projects // Bulletin of TSTU. - 2015. - No. 10. - p.24

Kozlov D.Yu. Assessment of capital investments of the enterprise. - M .: Higher School of Economics, 2013 .-- 87 p.

I. V. Korshunov The basics of business planning. - M .: Higher School of Economics, 2012 .-- 214 p.

S.P. Morozov Investment projects: concept and assessment // Business of the XXI century. - 2014. - No. 8. - p. 29

Orlova E.R. Investments. - M .: Omega-L, 2009 .-- 491 p.

Raeva E.N. Methods for assessing capital and financial investments of an enterprise // Appraiser. - 2014. - No. 1. - p.26.

Ribe K. Investments. - M .: Moscow, 2012 .-- 391 p.

Tapman L.N. Risks in the economy. - M .: Unity-Dana, 2013 .-- 421 p.

Sharpe W. Investments. - M .: Infra-M, 2012 .-- 416 p.

Annex 1

Balance sheet, thousand rubles



Fixed assets
Deferred tax assets
Other noncurrent assets
Total section 1


Receivables
Cash and cash equivalents
Total section 2


Authorized capital
Revaluation of non-current assets
Reserve capital
Undestributed profits
Total section 3
Loans
Total Section 4
Accounts payable
Loans
Total section 5

Appendix 2

Statement of financial results, thousand rubles

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Financial investments - expenses (investments) of an enterprise for the purchase of securities (shares and bonds, including government bonds), share contributions to the authorized capital of other organizations, loans to legal entities and individuals. To analyze the effectiveness of financial investments, the same methods can be used as in the analysis of capital investments. In addition, indicators of the investment attractiveness of a firm can be calculated using information about transactions with its securities. These indicators also characterize the financial stability of the enterprise. Since the majority of enterprises in Russia are joint-stock companies, then of all types of securities, shares are analyzed first.

Net income per ordinary share is calculated as follows:

where Пч is the net profit.

Table 9.1. General indicators of express analysis of the financial solvency of the company

Direction	Name indicator	Designation, source and calculation	Economic
1. Assessment of economic potential
1.1. Assessment of property status	1. Share of fixed assets in property	Dos = Residual value of fixed assets / Total value of assets	For organizations in the production sector, it characterizes the level of real productive capital
	2. Depreciation rate of fixed assets	Kizn = Accrued depreciation of fixed assets / Initial (replacement) cost of fixed assets	Characterizes the state of real productive capital
	3. Ratio of fixed assets renewal	К „= The value of received fixed assets for the year / Initial (replacement) cost of fixed assets at the end of the year	Characterizes the share of new fixed assets in all assets at the end of the year
1.2. Financial position assessment	1. Indicator of financial independence from external sources of financing - autonomy ratio	Cavt = Equity / Balance Currency	Characterizes the financial stability of the enterprise
	2. Current liquidity ratio (full coverage or prospective solvency)	Adjusted current assets / Adjusted debt liabilities	Characterizes the current financial condition and shows the sufficiency of current assets that can be used to pay off short-term liabilities
	3. Provision of stocks with own funds (share of own circulating assets in covering stocks)	К- „w = Own working capital / Inventories	Characterizes financial stability
	4. Coefficient of maneuverability of equity capital	К „, = Own working capital / Equity capital	Shows the share of the company's own funds in mobile form, which allows relatively free maneuvering of these funds
1.3. The presence of problem articles in the reporting		Indicators of uncovered loss in the balance sheet and loss of the reporting period in the income statement	Characterize insolvency
	2. Overdue (not repaid on time) accounts payable, loans and borrowings, promissory notes payable	Explanations to the financial statements
	3. Overdue accounts receivable		Contributes to a deterioration in financial condition, indicates shortcomings in sales policy
2. Evaluation of the effectiveness of financial and economic activities
2.1. Profitability assessment	1. Net profit	Income statement	Net economic result of the company's functioning
	2. Overall profitability	11.6, = Net Income / Asset Value			The overall financial efficiency of the use of all economic resources
	3. Profitability of core business	Poison = Profit from sales / Cost of sales			Economic performance of core business
	4. Return on sales	Rn = Profit from Sales / Revenue from Sales			Economic performance of sales of products, works, services
2.2. Business activity assessment	1. Comparative growth rates of net profit, revenue, invested capital and inflation	Checking the fulfillment of the formula Tpr> T „> So> T„ nf			Evidence of the preservation of financial well-being in the near future
	2. Asset turnover	Cob = Sales revenue / Average value of the balance sheet currency			It characterizes the rate of capital turnover, shows the number of turns that capital makes during the analyzed period
	3. The duration of the production (operating) cycle	T pr.c = 360 days x (Average for the period the amount of inventories and receivables) / Sales revenue			Shortening the operating and financial cycles is seen as an acceleration in the turnover of funds and an increase in the business activity of the organization.
	4. Duration of the financial cycle	T fIN C = 360 days x (Average for the period the sum of inventories and receivables minus payables) / Sales revenue
	5. Growth rates of labor productivity for the period under review	TT. = ПТ, / ПТ0хЮО%, where ПТ = Sales revenue / Average headcount; PT] and PT0 - labor productivity, respectively, in the reporting and base periods				Positive (> 100%) labor productivity growth rates indicate an intensive development path and the company's potential reserves for increasing profitability
	Return on assets	FD = Sales revenue / Period average cost of fixed assets				Characterizes the amount of proceeds from each ruble invested in the fixed assets of the enterprise
3. Evaluation of the efficiency of using the economic potential and investment attractiveness of the company
	1. Return on operating capital	yfk = Net profit / Balance currency minus financial investments	Characterizes the financial efficiency of the use of capital directly involved in the economic process
	2. Return on investment in terms of net profit and taking into account fees for the use of borrowed funds	Keene = (Net Income + Interest receivable) / (Equity and reserves + + Long-term liabilities) x 100%	Used in practice to assess the effectiveness of investment management, the ability of managers to ensure a high return on funds invested in the operation and development of the company
	3. Ratio of reinvestment of funds	Creinv = Net cash receipts from current activities / Own working capital		Shows what part of the funds can be used for self-financing, which may indicate the prospects of the company and its preference in comparison with other commercial organizations for investment
	4. Growth rates of net assets	T „a = CHA, / CHAo x 100%, where CHA, and CHA0 are net assets, respectively, in the reporting and base periods		Positive (> 100%) growth rates of PA indicate an increase in the company's economic and financial potential and that it has potential reserves for development and investment.
	5. Return on net assets	Рcha = Net profit / HR X 100%		Characterizes the efficiency of using assets financed from own sources
	6. Earnings per ordinary share	Rakc = (Net profit - Dividends on preferred shares) / Number of ordinary shares		Shows the maximum income that the owner of one share could receive if all retained earnings were used to pay dividends on ordinary shares. Analysis of this indicator in dynamics allows us to understand how the profitability of investing in these shares changes.

Table 9.2. System of express indicators for assessing the creditworthiness and risk tolerance of the company

	Indicators, criteria		Sources, calculation, estimates
Property situation
	Share of fixed assets in property (> 50%)		Before,. = (Fixed assets at residual value + leased - leased - for conservation) / Balance currency x 100%
	Fixed assets depreciation rate (<50%)		KShn = Accumulated depreciation of fixed assets / Fixed assets at book value at the end of the period x 100%
	Fixed asset renewal rate		Ko6n = Received fixed assets for the period / Fixed assets at book value at the beginning of the period x 100%
	Share of production assets (fixed assets and inventories)		Dirac = (Fixed assets + Production stocks) / Balance currency x 100%
Financial condition and problem points
	The share of retained earnings (uncovered loss) in the equity capital (IC) of the organization		Дн.п = (Retained earnings / SK) x 100%
	Financial independence (autonomy) ratio (> 51%)		Cavt = (SK / Balance Currency) x 100%
	Coefficient solvency (current liquidity) (1-2)		КрЛ = Current assets / Short-term liabilities
	Checking for problematic articles in financial statements		Uncovered loss, overdue debts
Performance assessment
	Return on sales		Pp = (Profit from sales / Revenue) x 100%
	Overall profitability		P0bsch = (Net profit / Balance currency) x 100%
Business activity
	The duration of the production cycle (period of turnover of current costs)		Гпр ц = 360 days х (Average for the period the sum of inventories and receivables) / Sales revenue
	Personnel labor productivity		PT = Revenue / average headcount
Investment attractiveness
		Earnings per share for OJSC	Rocky = (Net Profit Dividends by privileged shares) / number of ordinary shares
		Growth rate of net assets	Tcha = CHA, / CHA0 x 100%, where CHA, and CHAo - net assets, respectively, in the reporting and base periods
Indicators of economic sustainability and risk
		Income margin in value	MD = Revenue - Variable Cost
		- as a percentage of revenue	MD% = MD / Revenue x 100%
		Break-even point (critical sales volume) in value terms	TB = Fixed costs / [MD / Revenue]
		Sales profit	Sales profit
		The financial strength of the organization in value terms	ZFP = Revenue - TB
		- in percents	FFP% = FFP / Revenue x 100%
		The effect of production leverage (the effect of cost structure on sales profit)	EPL = MD / Profit from sales
		Financial leverage effect (the influence of the capital structure (the ratio of SK and ZK) and the interest rate on loans on profitability (calculated when justifying the attraction of borrowed sources))	EFL = (Rovshch-C%) x PFR, where Rovshch - overall profitability; Si, is the weighted average interest rate on borrowed funds; PFR - leverage of financial leverage (Borrowed funds / / Own funds)

The ratio shows the maximum income that the owner of one share of the company could receive if all retained earnings remaining in the company were used to pay dividends on ordinary shares. The analysis of this indicator in dynamics makes it possible to understand how the profit, which is provided by the ownership of one ordinary share of a given company, increases or decreases,

and, accordingly, how the profitability of investing in these shares changes.

1. The ratio of net profit per share (i.e. the previous indicator) to the market price of a share ( Earning per share - EPS ) is defined as follows:

Index EPS indicates the return on investment in a firm based on its current (market) value.

2. An inverse indicator can be calculated:

This indicator is an indicator of the level of attractiveness of the company in the eyes of investors. The higher this indicator, the better the reputation of the company, the less risky the policy pursued by it is considered. A decrease in this indicator indicates a decrease in the investment reputation of the company.

These coefficients can be used to analyze the investment attractiveness of the company in the current year. However, financial investments can also be long-term. In this case, the analysis uses indicators calculated on the basis of the compound interest formula:

where S is the accrued amount; R - fixed capital (principal amount of investments); i - interest rate for the period; NS - term.

For example, 100 thousand rubles were deposited into a bank account. for a period of three years at a rate of 10% per annum.

In the first year, the percentage will be: 100 × 0.1 = 10 thousand rubles.

Accrued amount: 100 + 10 = 110 thousand rubles.

In the second year, the percentage of this amount will be: 110 × 0.1 = = 11 thousand rubles.

Accrued amount: 110 + 11 = 121 thousand rubles.

For the third year, the percentage will be: 121 × 0.1 = 12.1 thousand rubles.

Accrued amount: 121 + 12.1 = 133.1 thousand rubles.

The same is determined by the previous formula

You can determine the fair value, provided that the final amount, interest rate and term are known:

For example, we want to receive 100 thousand rubles in two years. at an annual rate of 10%. Let's determine how much money you need to have for this now:

If interest is calculated by semester, quarters, months, etc., then the interest rate for one period (quarter, month) is considered equal to the ratio of the nominal (annual) rate to the number of periods in a year:

where i - rate for the period; j - nominal interest rate; T - the number of accrual periods per year.

The total number of periods ( n ) can be defined as n = t × t.

Then the accrued amount will be calculated using the following formula:

Let's find the accrued amount from the first example, provided that the interest was paid in half-yearly periods:

Based on this, the intrinsic value of a financial asset can be determined using the formula proposed in 1938 by J. Williams:

where V t is the intrinsic value of the financial asset; CFi - expected cash flow (interest, dividends); r - acceptable profitability; i - period (usually in years). For bonds and preferred shares, it is most often limited, for ordinary shares it is equal to infinity.

Acceptable yield ( r ) reflects the profitability of alternative investment options and can be set by the investor:

in the amount of the interest rate on the bank deposit ( r v);
based on the interest paid to the depositor for the storage of his funds and the risk premium ( r B + r r);
based on government bond interest and risk premium ( r SB + r r) .

Among the methods for analyzing an investment portfolio, the most famous is Capital financial asset profitability assessment model Asset Pricing Model ( CAMP ), developed by W. Sharp, for which its author received the Nobel Prize in 1990.

This model can be described by the following formula:

where R - the expected return on shares of the analyzed company; R f - the profitability of risk-free (absolutely reliable, usually government) securities; R m is the average yield for the current period on the securities market; β is a coefficient reflecting the level of risk of investments in a given enterprise. Calculated based on statistical data.

This model is based on the assumption that the return on securities is directly related to risk: the higher the return, the higher the risk.

Most β-coefficients are in the range of 0.5 ÷ 2.0. With β = 1, the company's shares have an average degree of risk. If β< 1, то ценные бумаги анализируемого предприятия можно считать менее рискованными, чем в среднем на рынке. При β >1 the company's securities are more risky than the market average. If in the dynamics of β - the coefficient increases, then investments become more risky, but their profitability also increases.

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Analysis of the effectiveness of financial investments and investment policy of companies. Analysis of the effectiveness of financial investments Analysis of the effectiveness of investment of funds in shares