Factor analysis of the organization's profitability in considering the risk of financing

The actual result in evaluating the effectiveness of an organization and one of the basic indicators characterizing the real business turnover is profitability, that is, the ratio between profit and other important cost indicators (revenue, cost, assets, capital, material and production resources). The factorial method of financial analysis allows you to identify the impact of individual causes on the performance indicator using deterministic and statistical research methods. Among the main directions of the financial and economic analysis of the organization’s activities, we have chosen four, including the analysis of the formation of financial results; analysis of the financial condition based on financial ratios; analysis of profitability of sales, products, assets, equity, analysis of profitability of capital employed; analysis of the effectiveness of all activities of the organization. Managers can make the most reliable assessment of the effectiveness of managing an organization only using financial information. Financial indicators, which are necessary in order to assess the performance of an organization, are criteria that allow you to assess the possibilities of the current state of affairs in an organization and serve as a starting point for future financial planning. All changes arising from the financial analysis, to a greater or lesser extent, are under the influence of risk, and as a result, the adverse consequences associated with it, which may have a negative impact on all types of activities organizations.