Bulletin of
Vitebsk State
Technological
University

Abstract

Considering efficiency as a business card of an organization, as an indicator of its success and stability, in terms of market relations financial efficiency is mentioned. The key factor in conducting a qualitative assessment of the financial performance of a commercial organization is the relevance and reliability of the information used. Its competent application allows to quickly make effective management decisions.

Financial statements, being a publicly available source of information about the functioning of an organization, contain basic data to achieve their goals by various user groups, in particular, when assessing the financial performance of a business. Most authors accept the point of view that financial efficiency should be reflected by a system of indicators (solvency, financial results, financial stability, cash flows, business activity). The allocation of each of the given groups of indicators is due to their differences in terms of target orientation; the role they play for the business in general, as well as information users.

At the same time, the evolution of world economic thought has led to the emergence of alternative approaches to assess financial efficiency. Increasing attention to the value added indicator in the national economy has expanded the boundaries of its application. Many economists see in it not so much a production effect as a financial one, and they propose to use the value added indicator in calculating financial performance indicators.

Evaluation of financial performance based on the EBITDA profit indicator and the analysis of net cash flow by the indirect method have a number of undoubted advantages, but they require the preparation of appropriate information support for their use in financial analysis. 

In our opinion, implementation of the directions for improving the information support of financial analysis developed in the study will significantly increase the efficiency of the analytical process of commercial organizations.

Information Support for Assessment of Financial Efficiency of Business