Aggregated balance sheet

As the primary source of information for financial analysts is the balance sheet, which contains all data on the liabilities and assets of the enterprise, expressed in the valuation. While an experienced analyst only needs one look at the balance sheet in order to obtain all the necessary information, it is still more convenient to use the aggregate balance. Let's figure out what it is.

Aggregated Balance Sheet: Example

Economic and mathematical dictionary suggests that aggregation should be understood as the unification and aggregation of indicators by a certain feature. The main difference between this balance and the usual is that the grouping of articles is carried out according to economic content. The aggregated balance is a picture as a whole, while the usual one is a set of details.

If you analyze the liquidity indicators, you can pay attention to the frequency in the formulas. The same can be observed with other financial ratios.

The aggregated balance provides an opportunity to calculate the coefficients, without having to repeat the same operations over and over again. As a result, it turns out to make analysis much faster, and this balance allows very prompt calculation of very many indicators: stability, turnover, liquidity. The aggregated balance is much easier to read, in addition, in this form it is as close to international reporting standards as possible. But it is worth remembering that the more significant a combination of indicators, the less qualitative and in-depth analysis allows to produce these data.

Indicative analysis can be made only after the adjustment of the aggregate balance. At the same time, the structure of the balance sheet will remain the same, similarly it is customary to allocate assets (fixed and current), capital (own and borrowed), the basic balance sheet balance remains unchanged. Within the sections, the grouping of individual articles is carried out, since the results of the sections in the balance sheet do not fully correspond to the economic essence of the names. For example, in the balance sheet the result of the second section is called turnaround assets. However, this includes accounts receivable, for which payments are expected more than a year from now. If an aggregated balance sheet is drawn, then such receivables are excluded from current assets. But at the moment there is no single rule for its implementation. In the process of aggregating the balance, one should rely on common sense and understanding of the essence of balance articles in the economic sense.

The purpose of analyzing this type of balance is to obtain a preliminary opinion on the structure and dynamics of the company's most important indicators. For this purpose, the balance sheet indicators are grouped into eight main groups, with the assets classified according to the degree of liquidity, and the liabilities by the urgency of making payments. The groups should be formed taking into account the adjustment of their composition, relying on the liquidity of assets and the terms of payments on liabilities, which are established on the basis of information from the balance sheet.

The aggregated income statement is best represented in the form of a set of such indicators:

- revenue;

- costs associated with ordinary activities, which includes the cost of goods sold, works, services or products, management and commercial expenses;

- profit received through sales;

- other results, which are formed as a difference between operating expenses and revenues;

- profit received through taxation;

- deferred taxes and current income tax;

- net profit.

For all these articles, the calculation of the structure indicators and the growth rates of indicators by special formulas is carried out.