Criteria for evaluating the effectiveness of investments are divided into three groups: the payback period of investments; return on investment; profitability (yield) of investments.
The payback period of investments (Current) is defined as the ratio of the total investment (Inv) to the amount of profit (P) or the amount of profit growth (AP):

T ok \u003d Inv / R,
or
T ok \u003d Inv / D ^
With a significant unevenness in obtaining profits over time, the payback period of investments can be determined by comparing the total amount of investments with the amount of profit growth. The payback period corresponds to the period in which the amount of profit growth calculated in this way is equal to the amount of investment.
The return on investment can be assessed using indicators of the additional volume of sales of services per 1 rub. investments, discounted income, future value of investments.
Additional volume of sales of services for 1 rub. investment is calculated as the ratio of the increase in the volume of sales of products received as a result of additional investments (AN) to the total amount of investments:
EI = D^Inv,
where EI is the efficiency of investments.
Evaluation of the effectiveness of investments based on the methods of accrual or discounting of cash receipts, taking into account the change in the value of money over time, is scientifically substantiated.
The assessment of profitability (yield) is made by comparing the income received from this type of investment with the amount of investment. As evaluation parameters, one can use an indicator of the overall economic efficiency of investments and a more specific indicator - return on invested capital.
The overall economic efficiency of investments for a separately operating enterprise is defined as the ratio of the increase in profit to the total amount of investments that caused this increase; for a newly created enterprise - as the ratio of planned profit to the total amount of investment:
EIbsht ^N/Inv,
or
EIbsht = P/Inv.

Return on invested capital (ROC) is determined by the ratio of the total profit to the total investment:
DVK = R/Inv.
Accordingly, the profitability of each type of investment can be calculated as an inverse indicator:
P = DVK Inv.
This method allows, in the presence of alternative options for long-term financial investments, to choose the option that is more profitable for the enterprise.
A comprehensive assessment of indicators characterizing the effectiveness of financial investments can be carried out according to the data in Table. 10.4.
Kg = pPRk;
Kg \u003d $, 07-1.78 \u003d ^ 2D5 \u003d 1.69 100 \u003d 169.
Thus, as a result of a comprehensive assessment of financial investment efficiency indicators, it was revealed that in the reporting year, investment efficiency increased by 69% compared to the previous year, which characterizes the investment attractiveness of the enterprise on the positive side.
Table 10.4
Analysis of financial investment efficiency indicators

Types of financial investments. Retrospective evaluation of financial investments. Assessment of the present value, current yield and yield to maturity of various financial instruments.

Financial investment is an active form of effective use of temporarily free funds of an enterprise. It can be carried out in various forms.

1. Capital investment in profitable stock instruments (shares, bonds and other securities freely traded on the money market).

2. Capital investment in profitable types of monetary instruments, such as certificates of deposit.

3. Investment of capital in the authorized capital of joint ventures in order not only to make a profit, but also to expand the sphere of financial influence on other business entities.

The analysis examines the volume and structure of investment in financial assets, determines the rate of its growth, as well as the profitability of financial investments in general and individual financial instruments.

Retrospective assessment of the effectiveness of financialinvestments is made by comparing the amount of income received from financial investments with the average annual amount of this type of assets. Average return ( DVK) can change due to:

structures of securities with different yield levels ( Beat i);

the level of profitability of each type of securities acquired by the enterprise ( DVK i):

DVK about 6sch =∑ (UD i × DVK i).

Table data. 23.6 show that the profitability of financial investments for the reporting year increased by 1.4%, including due to changes in:

structures of financial investments

∆DVK =∑(∆sp i × DVK i 0) = [(+10) × 15 + (-10) × 10] ∕ 100 = +0,5%

the level of profitability of certain types of investments

∆DVK =∑(Beat i 1× ∆DVK i)= (90 × 1 + 10 × 0) ∕ 100 = +0,9%.

Table 23.6

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

Indicator	Last year	Reporting year	Change
The amount of long-term financial investments, thousand rubles.			+500
Including:
in shares			+700
in bonds			-200
Specific weight, %:
shares	80,0		+ 10
bonds	20,0		-10
Income, thousand rubles:
from shares			+132
from bonds			-20
Profitability of long-term financial investments, %		15,4	+ 1,4
Including:
shares			+ 1
bonds			-

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

Evaluation and forecasting of the economic efficiency of individual financial instruments can be carried out using both absolute and relative indicators. In the first case, the current market price of a 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 value of a financial asset is that price - 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 can be calculated by the formula

PV f.i= ,

where РV f.u - the real present value of the financial instrument;

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

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

P- the number of periods of receipt of income.

By substituting the values ​​of expected cash receipts, profitability and the duration of the forecasting period into this formula, it is possible to calculate the current value of any financial instrument.

If the actual amount of investment costs (market value) on 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 the given conditions.

As you can see from the above formula, The fair value of a financial instrument depends on three main factors: expected cash receipts, the length of the projected period of receipt of income and the required rate of return. The forecasting horizon depends on the type of securities. For bonds and preferred shares, it is usually limited, and for ordinary shares it is equal to infinity.

The required rate of return, which the investor puts into the calculation algorithm as a discount, usually reflects the profitability of investment options alternative to this investor. This may be the interest rate on bank deposits, the level of interest on government bonds, etc.

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

Basic Model for Estimating the Present Value of Bonds with Periodic Interest Payments as follows:

,

where РV region - the current value of bonds with periodic interest payments;

CF n - the amount of interest received in each period (the product of the bond's face value times the advertised interest rate ( N oδl × k);

N region - the face value of the bond redeemed at the end of its maturity ( t);

k- annual coupon rate.

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

Therefore, a rate of return of 12% will be provided when buying a bond at a price approximately equal to 900 rubles.

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

This shows that the current value of the bond depends on the value of the market interest rate and maturity. If a 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 a d< k, then the current value of the bond will be greater than the face value, i.e. the bond is sold at a premium. If a d=k the current value of the bond is equal to its face value.

Income on coupon bonds consists, firstly, of periodic interest payments (coupons), and secondly, of the exchange rate difference between the market and nominal price of the bond.

Therefore, several indicators are used to characterize the yield of coupon bonds:

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

annotation

Within the framework of this work, the main principles for evaluating the effectiveness of financial investments are given. The methodology for assessing investments is presented. The main indicators of the effectiveness of investment projects and methods for their evaluation are listed.

Introduction.. 3

1. Basic principles for evaluating the effectiveness and financial feasibility of investment projects.. 4

1.1. Definition, types and principles of efficiency of investment projects. 4

1.2. Cash flows of the investment project. Financial feasibility of the project 7

2. Methodology for assessing investments.. 11

2.1. General provisions for the economic evaluation of investment projects. eleven

2.2. The future value of the annuity. thirteen

2.3. Discount coefficient. Discount rate. fourteen

3. Key performance indicators of investment projects and methods for their evaluation.. 22

3.1. Classification of investment project efficiency indicators. 22

3.2. Indicators that do not involve the use of the concept of discounting. 22

3.3. Indicators of the effectiveness of investment projects, determined on the basis of the use of the concept of discounting. 27

Conclusion.. 33

References... 34

Introduction

The term "investment" comes from the Latin word "invest", which means to invest. In a broader interpretation, it expresses the investment of capital with the aim of its further increase. The capital gain resulting from the investment should be sufficient to compensate the investor for not consuming the available funds in the current period, reward him for the risk and compensate for the losses from inflation in the future period.

Investments express all types of property and intellectual values ​​that are directed to the objects of entrepreneurial activity, as a result of which profit (income) is formed or another useful effect is achieved.

Capital investments are inextricably linked with the implementation of real investment projects.

An investment project is a justification for the economic feasibility, volumes and timing of capital investments, including the necessary documentation developed in accordance with the standards adopted in Russia (norms and rules), as well as a description of practical actions for the implementation of investments (business plan).

The purpose of this work is to evaluate the effectiveness of financial investments, i.e. investment projects.

Realization of the goal involves the solution of the following tasks:

To reveal the basic principles for evaluating the effectiveness and financial feasibility of investment projects;

Describe the methodology for assessing investments;

List the main performance indicators of investment projects and describe methods for their evaluation.

1. Basic principles for assessing the effectiveness and financial feasibility of investment projects

1.1. Definition, types and principles of efficiency of investment projects

The implementation of effective projects increases the gross domestic product (GDP) at the disposal of the society, which is then divided among the entities participating in the project (firms, shareholders and employees, banks, budgets of different levels, etc.). The income and expenses of these entities determine various types of investment project efficiency.

The effectiveness of the project as a whole;

The effectiveness of participation in the project.

The effectiveness of the project as a whole is evaluated in order to determine the potential attractiveness of the project for possible participants and search for sources of funding. It includes:

Public (social - economic) efficiency of the project;

The commercial viability of the project.

Social performance indicators take into account the socio-economic consequences of the investment project for society as a whole.

The indicators of the commercial efficiency of the project take into account the financial consequences of its implementation for the sole participant implementing the investment project, assuming that he incurs all the costs necessary for the implementation of the project and uses all its results.

The following basic principles are used as the basis for assessing the effectiveness of investment projects (IP):

Consideration of the project throughout its entire life cycle (billing period);

Modeling of cash flows, including all inflows and outflows of funds related to the implementation of the project for the billing period;

Comparability of the conditions for comparing various projects (project options);

The principle of positivity and maximum effect. In order for the IP to be recognized as effective from the point of view of the investor, it is necessary that the effect of the project implementation be positive; when comparing alternative IPs, preference should be given to the project with the highest effect value;

Accounting for the time factor. When evaluating the effectiveness of the project, various aspects of the time factor should be taken into account, including the dynamism of the parameters of the project and its economic environment; gaps in time (lags) between the production of products or the receipt of resources and their payment; disparity in costs and/or results at different times;

Accounting for future expenses and receipts only. When calculating performance indicators, only future costs and revenues during the implementation of the project should be taken into account, including costs associated with attracting previously created production assets, as well as future losses directly caused by the implementation of the project (for example, from the termination of existing production in connection with the organization in its place new). Previously created resources used in a project are not valued at the cost of their creation, but at an opportunity cost, which reflects the maximum value of lost profit associated with their best possible alternative use. Past, already incurred costs that do not provide the possibility of obtaining alternative (i.e., obtained outside of this project) income in the future (sunk cost, sunk cost) are not taken into account in cash flows and do not affect the value of performance indicators;

Accounting for the most significant consequences of the project. When determining the effectiveness of an IP, all the consequences of its implementation, both directly economic and non-economic, should be taken into account;

Accounting for the presence of different project participants, the discrepancy between their interests and various estimates of the cost of capital, expressed in individual values ​​of the discount rate;

Multi-stage evaluation. At various stages of development and implementation of the project, its effectiveness is determined anew, with different depths of study;

Accounting for the impact of inflation (taking into account changes in prices for various types of products and resources during the project implementation period);

Accounting for the influence of uncertainty and risks accompanying the implementation of the project.

Evaluation of the effectiveness of investment projects is carried out in two stages.

At the first stage, the performance indicators of the project as a whole are calculated. The purpose of this stage is an aggregated economic assessment of design solutions and the creation of the necessary conditions for the search for investors. For local projects, only their commercial effectiveness is evaluated, and if it turns out to be acceptable, then you can proceed to the second stage of the evaluation.

If the source and terms of financing are already known, the evaluation of the commercial effectiveness of the project can be omitted.

The second stage is carried out after the development of the financing scheme. At this stage, the composition of the participants is specified and the financial feasibility and effectiveness of participation in the project of each of them is determined.

For local projects, at this stage, the effectiveness of participation in the project of individual enterprises-participants, the effectiveness of investing in shares of such joint-stock enterprises is determined.

1.2. Cash flows of the investment project. Financial feasibility of the project

The effectiveness of the investment project is evaluated during the calculation period covering the time interval from the beginning of the project to its termination.

The calculation period is divided into steps - segments within which the data used to evaluate financial and economic indicators are aggregated. The calculation steps are defined by their numbers (0, 1,…). The time in the calculation period is measured in years or fractions of a year and is measured from a fixed moment t0 = 0, taken as the base one (usually, the start or end of the zero step is taken as the base moment; when comparing several projects, it is recommended to choose the same base moment for them) . In those cases when the start of the zero step is the base one, the moment of the start of the step with the number m is denoted by tm; if the base moment is the end of the zero step, then tm denotes the end of the step with the number m. The duration of different steps can be different.

The cash flow (Cash Flow, CF) of an investment project is the dependence on the time of cash receipts (inflows) and payments (outflows) during the implementation of the project, determined for the entire billing period.

The cash flow value is denoted by Æ(t),(CFt) if it refers to time t, or by Æ(m) (CFm) if it refers to step m.

In cases where we are talking about several flows or about some component of the cash flow, these designations are supplemented with the necessary indices.

At each step, the cash flow value is characterized by:

An inflow equal to the amount of cash receipts (or results in value terms) at this step (Pm);

Outflow equal to payments at this step (Оm);

Balance (active balance, effect) equal to the difference between inflow and outflow (Pm - Om).

To select the most effective areas of financial investments, it is necessary to analyze them in detail. One of the common methods for analyzing the securities market and its segments is the so-called fundamental analysis.

A complete fundamental analysis is carried out at three levels. Initially, it considers the state of the economy of the stock market as a whole. This allows you to find out how the general situation is favorable for investment and makes it possible to determine the main factors that determine this situation.

After studying the situation as a whole, an analysis of individual areas of the securities market is carried out in order to identify those that, in the current general economic conditions, are most favorable for making financial investments. At the same time, the state of industries and sub-sectors of the economy represented on the stock market is considered. Identification of the most preferable directions for the placement of funds creates the basis for choosing within their framework specific types of securities, investments in which would ensure the most complete fulfillment of investment tasks.

Therefore, at the third level of analysis, the state of individual firms and companies whose equity or debt stock instruments are traded on the market is covered in detail. This makes it possible to decide which securities are attractive and which of those that have already been purchased should be sold.

The study of the general economic situation at the first stage of the analysis is based on the consideration of indicators characterizing the dynamics of production, the level of economic activity, consumption and accumulation, the development of inflationary processes, and the financial condition of the state.

For the sectoral stage of fundamental analysis, it is of great importance to have a clear classification of industries and sub-sectors accepted by a fairly wide range of subjects, reflecting their technical features.

In the course of sectoral analysis, indicators are compared that reflect the dynamics of production, sales volumes, the value of commodity and raw material reserves, the level of prices and wages, profits, savings, both in the context of industries and in comparison with similar indicators for the whole national economy. At the same time, in countries with developed economies, analysts rely on standard indices that characterize the state of affairs in various industries.

A 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 return (ARI) may change due to the structure of securities with different levels of return (Ag i) and the level of profitability of each type of securities acquired by the enterprise (ARI i):

DVK total =? (Udi-DVKi)(1)

Change in DVK due to:

1. Structures of financial investments:

DDVK=?(DUdi-DVKi0)(2)

2. The level of profitability of certain types of investments:

DDVK=?(Udil-DVKi)(3)

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 a financial instrument is determined; in the second case, its relative yield is calculated.

The current value of any security in general terms can be calculated using the formula:

PV f.i =()(4)

Where: PV f.i. - the real current value of the financial instrument;

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

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

n is the number of income generation periods.

By substituting the values ​​of expected cash receipts, profitability and the duration of the forecasting period into this formula, it is possible to calculate the current value of any financial instrument.

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

As you can see from the above formula, the present value of a financial instrument depends on three main factors: the expected cash flows, the length of the projected period of earnings and the required rate of return. The forecasting horizon depends on the type of securities. For bonds and preferred shares, it is usually limited, and for ordinary shares it is equal to infinity.

The basic model for estimating the fair value of bonds with periodic interest payments is as follows:

Pvol=()+(5)

where: PV obl - the current value of bonds with periodic interest payments;

CF n - the amount of interest received in each period (the product of the face value of the bond by the declared interest rate;

N region - the face value of the bond, redeemed at the end of its circulation period (n).

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

• - coupon yield, the rate of which is announced when issuing bonds;
• - current yield, representing the ratio of interest income to the purchase price of a bond:

where: N reg - bond face value; k - coupon interest rate;

P is the purchase price of the bond.

Yield to maturity:

where: F - redemption price;

P - purchase price;

CF - the amount of the annual coupon yield on the bond;

N is the number of years to maturity.

The model for estimating the current value of bonds with the payment of the entire amount of interest upon its redemption:

where: N*k*n - the amount of interest on the bond, paid at the end of its circulation period.

Model for estimating the current value of bonds sold at a discount without paying interest:

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

The level of return on investment in specific securities depends on the following factors:

• - change in the level of interest rates in the money market of loan capital and exchange rates;
• - liquidity of securities, determined by the time required 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 procedure for the purchase and sale of securities;
• - frequency and time of receipt of interest income;
• - the level of inflation, supply and demand, etc.

Financial investments - expenses (investments) of an enterprise for the purchase of securities (stocks and bonds, including government ones), 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, of all types of securities, shares are analyzed first of all.

Net income per ordinary share is calculated as follows:

where Pch is net profit.

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

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 manufacturing sector, it characterizes the level of real production capital
	2. Depreciation rate of fixed assets	Kizn \u003d Accrued depreciation of fixed assets / Initial (replacement) cost of fixed assets	Characterizes the state of real production capital
	3. The coefficient of renewal of fixed assets	K„ \u003d Cost 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 the composition of all funds at the end of the year
1.2. Assessment of financial position	1. The indicator of financial independence from external sources of financing - the coefficient of autonomy	Kavt = Equity / Balance sheet	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 working capital that can be used to repay short-term liabilities
	3. Provision of reserves with own funds of financing (share of own working capital in covering reserves)	K-„sh \u003d Own working capital / Stocks	Characterizes financial stability
	4. Equity flexibility ratio	K „, \u003d Own working capital / Equity capital	Shows the share of the company's own funds in a mobile form, allowing relatively free maneuvering of these funds
1.3. The presence of problematic items 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, bills payable	Explanations to financial statements
	3. Overdue accounts receivable		Contributes to the deterioration of the financial condition, indicates shortcomings in the marketing 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 operation
	2. Profitability overall	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 activities
	4. Return on sales	Rn = Sales Profit / Sales Revenue			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 Тpr>Т„ > So>Т„nf			Evidence of maintaining financial well-being in the short term
	2. Asset turnover	Cob \u003d Sales Revenue / Average Balance Currency			It characterizes the rate of capital turnover, shows the number of turnovers that capital makes during the analyzed period
	3. The duration of the production (operational) cycle	T pr.c = 360 days x (Average amount of inventories and receivables for the period) / Sales revenue			The reduction of the operating and financial cycles is considered as an acceleration of the turnover of funds and an increase in the business activity of the organization
	4. Duration of the financial cycle	T FIN C \u003d 360 days x (Average amount of inventories and receivables for the period minus accounts payable) / Sales revenue
	5. Growth rates of labor productivity for the period under review	Tt. \u003d PT, / PT0xYuO%, where PT \u003d Sales proceeds / 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 has potential reserves to increase profitability
	return on assets	FO \u003d Sales proceeds / Average cost of fixed assets for the period				Characterizes the amount of proceeds from each ruble invested in 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 sheet minus financial investments	Characterizes the financial efficiency of the use of capital directly employed in the economic process
	2. Return on investment in terms of net profit and taking into account fees for the use of borrowed funds	Kini = (Net profit + Interest receivable)/ (Equity and reserves + + Long-term liabilities) x 100%	It is used in practice to assess the effectiveness of investment management, the ability of managers to ensure a high return on funds invested in the functioning and development of the company
	3. Cash reinvestment ratio	Kreinv = Net cash receipts from current activities / Working capital		Shows what part of the funds can be directed to 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	Т„а = NА, / NАо x 100%, where NА and NА0 are net assets in the reporting and base periods, respectively		Positive (>100%) growth rates of the NA indicate an increase in the economic and financial potential of the company and the presence of potential reserves for its development and investment
	5. Return on net assets	Rca = Net Profit / NA X 100%		Characterizes the effectiveness of the use of assets financed from own sources
	6. Earnings per ordinary share	Rakt = (Net profit - Dividends on preferred shares) / Number of ordinary shares		Shows the maximum income that could be received by the owner of one share in the event that all retained earnings were directed to the payment of dividends on ordinary shares. Analysis of this indicator in dynamics allows you to understand how the profitability of investing in these shares changes

Table 9.2. A system of express indicators for assessing the creditworthiness and risk tolerance of a company

	Indicators, criteria		Sources, calculation, estimates
Property status
	Share of fixed assets in property (>50%)		Before,. = (Fixed assets at residual value + leased - leased - on conservation) / Balance currency x 100%
	Depreciation rate of fixed assets (<50%)		KShn = Accumulated depreciation of fixed assets / Fixed assets at book value at the end of the period x 100%
	Fixed asset renewal ratio		Ko6n \u003d 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 stocks)		Dirac = (Fixed assets + Stocks for industrial purposes) / Balance currency x 100%
Financial condition and problem points
	The share of retained earnings (uncovered loss) in the equity (CK) of the organization		Dn.p = (Retained earnings / SA) x 100%
	Financial independence (autonomy) ratio (>51%)		Kavt \u003d (SK / Balance currency) x 100%
	Coefficient solvency (current liquidity)(1–2)		KrL = Current assets / Current liabilities
	Checking for problematic items in the financial statements		Uncovered loss, overdue debts
Performance evaluation
	Profitability of sales		Rp \u003d (Profit from sales / Revenue) x 100%
	Profitability overall		P0bsch = (Net profit / Balance currency) x 100%
Business activity
	Duration of the production cycle (period of turnover of current costs)		Gpr c \u003d 360 days x (Average amount of inventories and receivables for the period) / Sales revenue
	Staff productivity		PT = Revenue / average headcount
Investment attractiveness
		Earnings per share for OJSC	Rocky = (Net income-dividends privileged shares)/number of ordinary shares
		Growth rate of net assets	Tca = NA, / NA0 x 100%, where NA, and NAO - net assets, respectively, in the reporting and base periods
Indicators of economic sustainability and risk
		Marginal income in value terms	MD = Revenue - Variable Costs
		- 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
		Margin of financial strength of the organization in value terms	FFP = Revenue - TB
		- in percentages	FFP% = FFP / Revenue x 100%
		Production leverage effect (impact of cost structure on sales profit)	EPL = MD / Profit from sales
		Effect of financial leverage (influence of the capital structure (ratio of SC and SC) and the interest rate on loans on profitability (calculated when justifying the attraction of borrowed sources))	EFL \u003d (Rovshch-S%) x PFR, where Rovshch - overall profitability; Si, is the weighted average interest rate on attracted borrowed funds; PFR is the leverage of financial leverage (Borrowed funds / / Own funds)

The coefficient shows the maximum income that could be received by the owner of one share of the company in the event that all the remaining retained earnings in the company were directed to the payment of dividends on ordinary shares. The analysis of this indicator in dynamics allows you to understand how much the benefit that 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 income per share (i.e. the previous indicator) to the market price of the share ( Earning per share - EPS ) is defined as follows:

Indicator EPS indicates the return on investment in the company 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 is the policy pursued by it. A decrease in this indicator indicates a decrease in the investment reputation of the company.

According to these coefficients, it is possible to analyze the investment attractiveness of the company in the current year. However, 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 accumulated amount; R – fixed capital (principal amount of investments); i - interest rate for the period; P - term.

For example, 100 thousand rubles were put 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 current 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 accrued by half-years, 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 in a year.

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

Then the accumulated amount will be calculated according to the following formula:

Let's find the accumulated amount from the first example, provided that the interest was paid semi-annually:

Based on this, it is possible to determine the intrinsic value of a financial asset 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 return ( r ) reflects the profitability of alternative investment options and can be set by the investor:

• in the amount of the interest rate on a bank deposit ( r in);
• based on the interest paid to the depositor for holding 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 of analysis of the investment portfolio, the most famous is model for assessing the profitability of financial assets Capital 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 is the expected return on the shares of the analyzed enterprise; R f is the yield of risk-free (absolutely reliable, usually government) securities; R m - profitability for the current period on average in 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 premise 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 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 company securities are riskier than the market average. If in the dynamics of β - the coefficient increases, then investments become more risky, but their profitability also increases.