Analysis of interrelation of financial results and financial condition of the company

Abstract

The article deals with the fundamental categories of company analysis in a market economy such as its financial results and financial condition. Special attention is given to the study and justification of the mutual influence and dependencies between them with the help of formalized analytical models, non-formalized logical and empirical studies and conclusions. In particular, the authors of the article justify the mechanism of the influence of profit and profitability on bankruptcy risks. They underline the importance of obtaining the required amount of profit and the correctness of its use. Moreover, the authors propose criteria for evaluating the rational distribution and use of the company's net profit. The influence of the profit capitalization factor is confirmed by the example of a model of sustainable economic growth. The authors emphasize the importance of the issues under consideration in the development of management decisions, including the formation of dividend policy. The article also presents the authors' approach to some methodological aspects of analyzing the use of profits. The research is based on the financial statements of Russian construction companies. However, these models can be applied to commercial companies in other fields of activity.