The economic condition of a bakery enterprise

Abstract

The article examines the economic condition of a bakery enterprise in the context of a financial analysis of the activities of JSC “Yakut Bakery”. During the study period, the research showed that its condition is in a rather unstable position. The situation is characterized by a considerable decrease in the company’s profit and net profit, compared to previous periods, by 37.89%. The main reason for this situation is the excess of non-current assets over current assets, and this is a consequence of the fact that there are current assets that are not involved in economic turnover and have not been used in the production for a long time. The authors found out that it is necessary to extract non-current funds and ensure their liquidity so as to attract their own funds to increase the economic activity of the enterprise. In the process of settlement and economic measures, the authors revealed the ability of the bakery enterprise to meet its obligations in the current time; however, the financial and economic situation of JSC “Yakut Bakery” is not able to attract additional borrowed funds. This result represents the calculations of the liquidity ratio and profitability indicators of the bakery enterprise. The indicators of financial stability and the coefficient of financial stability, the dynamics of which is negative, are also quite weighty evidence. Therefore, the authors formed recommendations for the liquidation of the working capital to ensure the possibility of attracting borrowed funds and strengthen the market and competitive positions of the bakery enterprise