The most liquid assets are cash businesses and short-term investments, such as high-priced securities. In other words, these are assets that, at any time and without loss of real value, are sold into cash to ensure payment settlements for current short-term obligations. The main feature of highly liquid assets is the presence of a free circulation market.
Liquid assets on balance sheet
The most liquid assets A1 are all amounts of funds at the disposal of the enterprise, immediately used for mutual settlements and repayment of debts to partners, the state in terms of taxes/duties, and other counterparties. The degree of liquidity of an asset is characterized by a transformation period: the shorter the duration in days, the more liquid the asset. Absolutely liquid assets are cash and non-cash ready-made means of payment; the least liquid are goods and materials, work in progress.
Liquid assets are:
- Cash– cash in cash desks and non-cash money in accounts for various purposes (highly liquid assets in the balance sheet, line 1250), short-term deposits, precious metals and stones.
- Short term financial investments up to 30 days of repayment– government securities, quick quotation bonds, shares and bills of the first tier.
Liquid assets on the balance sheet – line
The structure of the Russian balance sheet is built on the principle of increasing liquidity. The rows of assets with the least liquidity (non-current, long-term investments); then the stocks are grouped and accounts receivable; finally, the most liquid assets in the balance sheet: line 1240 + line 1250.
A1 (Highly liquid assets) = line 1240 of Form 1 + line 1250 of Form 1
Analysis of financial stability and solvency
Assessing the degree of liquidity is used in analyzing the level of solvency, financial stability and planning strategic development enterprises. The ratio of liquid assets to short-term liabilities helps calculate the absolute liquidity ratio (Cash ratio). This indicator most accurately characterizes the amount of short-term debts an organization is able to repay immediately and in full if the need for payments arises.
K = A1 / (P1 + P2),
where P1 is the group of the most urgent liabilities (line 1520 in the balance sheet), P2 is short-term liabilities (in the balance sheet these include lines 1510 + 1540 + 1550).
A coefficient value above 0.2 and up to 0.5 is considered normal. A lower value indicates the company’s inability to pay its accumulated obligations on time (low solvency). Too high indicates that cash flows free funds are distributed unreasonably, and it is necessary to reconsider investments in order to successfully develop the business.
The financial success and potential of an enterprise is characterized by various indicators, among which liquidity is one of the key ones. Its level is used to judge not only the solvency of the company, but also its market stability.
Let's consider what degrees of liquidity of assets there are and how to analyze the level of liquidity of a company based on its reflection in the balance sheet.
The economic meaning of asset liquidity
All funds owned by an organization have a certain value. Any property of the company - material, intellectual, other - can be represented in monetary terms.
However, a large amount of all cash equivalents owned by a company does not always indicate its “wealth.” In this respect, firms differ primarily in their financial obligations.
A company that is potentially capable of deadlines be responsible for all its obligations, including current costs, loans, payments and other expenses and debts.
It's not just about cash, but also the ability to receive it at the right time. Naturally, obtaining finance for an organization is possible through the sale of its assets. The parameter, how timely this can be done, characterizes liquidity.
Can be determined liquidity How economic indicator so: the ability of an organization to convert its assets into cash with minimal costs in an amount that ensures adequate security for basic (usually short-term) financial obligations.
High liquidity indicates a greater speed of turning assets into money.
Main tasks of liquidity analysis
Liquidity research has priority in determining the financial condition of the organization. Most often this needs to be assessed to determine creditworthiness (solvency) firms - the degree of potential financial liability.
A preliminary calculation can be made by considering the extent to which asset liquidity conditions are met.
If a more detailed analysis is necessary, an exact calculation is used, including the calculation of liquidity ratios. It involves comparing the organization's assets with its liabilities, ranked by degree of liquidity.
Liquidity levels
Degree of liquidity of assets firms - the speed of converting them into money. The period required for this transformation is usually counted in days. The shorter it is, the more liquid this or that asset is.
The balance sheet of the Russian Federation is built on the principle of liquidity growth. It lists first the assets whose liquidity is the lowest, and then this degree gradually increases.
Asset liquidity groups
According to the rate of transformation of assets into financial resources assets are divided into several groups.
Group 1: absolutely liquid (highly liquid) assets
This is the group of assets that does not need transformation, since it itself represents the financial assets available in the company:
- at the register;
- on current bank accounts;
- on short-term deposits, etc.
This group also includes financial investments that were made for a short period of time.
The defining factor for this group of assets is that they can be used to satisfy financial obligations almost immediately. They are usually denoted by the index A 1.
Group 2: quickly realizable assets
This includes funds that can be quickly, but not instantly, converted into cash. For quickly realized assets, transformation into money is not a problem, it just takes some time. These include:
- current assets;
- accounts receivable for this year, that is, the period for which expires no later than 12 months after the reporting day.
Quickly realizable assets are designated A 2 .
Group 3: slowly selling assets
This group of assets turns into cash the slowest, although without relative obstacles, but over a longer period of time. These assets include:
- stocks;
- receivables with a payment term of more than one year;
- VAT on purchased assets;
- long-term financial investments (except for shares in the authorized capital of other organizations).
This group of assets is assigned the index A 3.
Group 4: hard-to-sell assets
This includes funds that are most difficult to transform into cash. Initially, these assets were intended for long-term management economic activity. On the balance sheet they are reflected in section 1 “ Outside current assets", they are designated as A 4.
ATTENTION! Assets of groups A 1, A 2 and A 3, even during the same reporting period, can change with each other in content, forming current assets that are more liquid than all others.
Degrees of urgency of liabilities
To analyze the liquidity of an enterprise, it will be necessary to compare assets with liabilities, which means that liabilities must be distributed according to the degree of urgency. This comparison will characterize the possibility of repaying obligations using the assets being sold.
Group 1: liabilities of the greatest urgency
Those obligations that must be repaid as soon as possible, namely:
- loan settlements;
- dividend payment;
- overdue loans;
- other short-term financial arrangements.
Such liabilities, by analogy with absolutely liquid assets, are designated by the index P 1.
Group 2: short-term liabilities
These are expenses that must be incurred within a certain, not too long period (no more than a year from reporting date):
- short-term loans;
- funds borrowed.
This group is assigned the index P 2.
IMPORTANT INFORMATION! For groups P 1 and P 2, it is necessary to know exactly for what specific time these or those are designed financial obligations. This is impossible with external analysis (you have to rely on data previous periods, which reduces accuracy), but is quite feasible for internal liquidity research.
Group 3: long-term liabilities
This includes liabilities with the same designation on the balance sheet:
- long-term loans;
- other liabilities with long term repayment.
This group is designated P 3.
Group 4: permanent liabilities
This includes those liabilities that are included in section 3 “Capital and Reserves” in the balance sheet, as well as some items in section 4 that were not included in deferred income and future reserves.
Determination of balance sheet liquidity
Approximate liquidity assessment
To correctly determine liquidity, you need to compare the assets and liabilities of the corresponding groups:
- A 1 must be greater than P 1;
- A 2 must exceed P 2;
- A 3 should be higher than P 3.
If all 3 conditions are met, then A 4 will certainly be less than P 4. Such a ratio will mean the presence of current assets, that is, the minimum sufficient requirement to state financial stability company is complied with.
REFERENCE! It is convenient to format data for analysis in the form of a so-called “coverage table”, where the difference between assets and liabilities of each degree of liquidity and maturity are considered at the beginning of the year and the final date of the reporting period.
Refined balance sheet liquidity analysis
You can examine the liquidity, and therefore the creditworthiness of the enterprise, in more detail. To do this, you need to consider three financial ratios:
- Absolute liquidity– the ratio of the most liquid assets to ordinary liabilities. Shows what proportion of the debt can be repaid without delay. An indicator of 0.2 is the limit below which the ratio means weakening creditworthiness. This coefficient can be calculated using the formula:
- Quick liquidity– to compare the ratio to liabilities, short-term receivables are added to highly liquid assets, that is:
- Current liquidity– how do current assets relate to current liabilities, that is, does the company have enough money to pay off its liabilities by the end of the reporting year? Short-term liabilities. Formula for calculation:
To absolute liquid = A 1 / (P 1 + P 2).
To b.liq. = (A 1 + A 2) / (P 1 + P 2).
Fine this indicator should fall within the range of 0.7-1.5.
To current liquid = (A 1 + A2 + A 3) / (P 1 + P 2).
Practice allows the value of this indicator to be up to 3, preferably 1-2. A lower value indicates insolvency, and a higher value indicates irrational use of funds.
IMPORTANT INFORMATION! Each coefficient should be considered in dynamics, calculating it at the beginning and at the end of the reporting period.
What is liquidity? This question arises among people who are far from economic realities and among experienced businessmen. Liquidity is the ability to quickly turn assets into their cash equivalent at good prices. There are high- and low-liquid assets, as well as illiquid assets. The concept of liquidity can be applied to any firms, securities, real estate, vehicles and various property owned by a business or individual. Usually, the money that circulates in a given economic system has the highest liquidity.
Liquidity ratio
The liquidity of any organization and company is calculated using several financial indicators, one of which – the liquidity ratio – is calculated using special formulas. Using this ratio, you can compare the value of current assets, which have different degrees of liquidity, with the amount of current liabilities. There are coefficients:
- overall liquidity or coverage, which shows how capable the enterprise is of meeting its short-term obligations;
- current or quick liquidity, which shows what part of the company’s obligations can be repaid using cash and financial investments;
- absolute liquidity, allowing to determine short-term liabilities, the debt on which the company can repay urgently.
Current liquidity
To know how much of a firm's or organization's current liabilities can be paid with existing cash or cash equivalents, investments, and accounts receivable, it is necessary to know what quick or current liquidity is. The quick liquidity ratio is calculated using a special formula. The indicator of this type of liquidity indicates how solvent an organization or firm is, how quickly it can pay off current obligations, paying debtors on time. Typically, a quick ratio of 0.6 is considered acceptable.
Balance sheet liquidity
The financial indicator - balance sheet liquidity - shows the extent to which the company's liabilities are covered by assets that can be converted into money within a time frame corresponding to the maturity of the liabilities. The solvency of any company and enterprise depends on this indicator. To find out how favorable financial position enterprises, it is necessary to know how much the value of current assets exceeds short-term liabilities. The higher this value, the better off the company is in terms of liquidity. Determining balance sheet liquidity is of particular importance during liquidation in case of bankruptcy of an enterprise or company.
Liquidity analysis
To analyze the liquidity of the balance sheet of a company or organization of any form of ownership, assets are grouped by degree of liquidity - from the fastest to assets with slow liquidity. A correct analysis of asset liquidity is carried out in the following order:
- the most liquid assets;
- quickly implemented;
- slow to implement;
- hard to sell assets.
As for liabilities, the most urgent liabilities are analyzed first, then short-term liabilities, long-term liabilities and finally permanent liabilities.
Absolute liquidity
If you need to calculate the reliability of a company or quickly liquidate it, you need to know it financial indicators. One of them, absolute liquidity, is a ratio showing how much of short-term debt can be repaid immediately. The absolute liquidity ratio or Cashratio shows how much a company or enterprise is able to repay short-term debt immediately. This indicator is calculated as the ratio of current assets that can be immediately sold to current obligations debtor.
Liquidity indicators
Liquidity is the most important indicator of the efficiency and reliability of an enterprise. It shows how creditworthy the company is. To know exactly how promising a particular company is, it is necessary to analyze their work. When analyzing the activities of any company, it is necessary to take into account balance sheet liquidity indicators. The main coefficients are:
- absolute liquidity;
- critical evaluation;
- maneuverability of functioning capital;
- current liquidity;
- security of own funds.
Asset liquidity
Company assets that can be quickly and profitably converted into money are called liquid. The most highly liquid asset is the funds that the company has in cash, accounts, and deposits. Good liquidity of assets valuable papers, which can be profitably sold on the stock exchange at any time. The least liquid are considered to be inventories of raw materials, materials, and the value of work in progress. Accounting analysis The liquidity balance of the balance sheet is built on the principle of increasing liquidity; the most important when compiling the balance sheet are three coefficients:
- absolute liquidity;
- quick liquidity;
- current liquidity.
Bank liquidity
Any organization can be considered from a liquidity point of view, including financial ones. Such a concept as a bank's liquidity - its ability to quickly fulfill obligations to depositors, investors, creditors - is very important when choosing a bank. Liabilities financial organization can be real and potential or conditional. Bank liquidity factors are external and internal. Internal factors are:
- bank management and its image;
- quality of funds raised;
- quality of bank assets;
- conjugation of assets and liabilities.
External liquidity factors are;
- the state of the economy in the country;
- development of the securities market;
- effectiveness of Bank of Russia supervision;
- refinancing system.
Liquidity of the enterprise
The liquidity of an enterprise is the ability to pay off its debts quickly and profitably. The degree of liquidity is determined by the ratio of balance sheet assets and liabilities and determines the stability of the enterprise. A company's liquid funds are all those assets that can be converted into money and used to pay off debts. This is money on hand, in accounts and deposits, securities that are quoted on the stock exchange, working capital that can be quickly sold.
There is general (current) and urgent liquidity of the enterprise. Total is the ratio of the sum of current assets and liabilities at the beginning and end of the year. The analysis of an enterprise's liquidity is determined by ratios. If the current liquidity ratio is below 1, this means that the company does not have stability. The normal indicator is over 1.5.
Market liquidity
Liquidity – important indicator any market. To make transactions on stock market or such a popular Forex market, you need to navigate which exchange instruments can be quickly bought and sold just as quickly. Market liquidity is the opportunity to make a profitable deal with stocks, futures, currency pairs, without losing in price and time. In other words, a market participant will receive any asset at the best market price as quickly as possible. Money has the highest liquidity - it can be instantly exchanged for goods. Real estate has low liquidity.
Liquidity of securities
The liquidity of securities is the ability to turn them into money quickly and profitably, and this opportunity is constant. It is this characteristic that is taken as the basis for understanding how effective certain securities are. High liquidity will allow the investor to instantly receive cash for securities.
The main characteristic of the liquidity of securities is the spread - the difference between sale and purchase prices. The smaller the spread, the higher the liquidity. Liquidity is influenced by the attractiveness of securities of a particular issuer in investment plan. It can be calculated if the performance indicators of the enterprise and the assessment of its securities by the market are known.
Liquidity of money
Money has the highest, one might say, perfect liquidity. The liquidity of money means that it can be used to obtain goods or services that are needed at any time. Money is a means of payment in any country in the world. They are most protected from fluctuations in their value. Universality as a means of payment, that is, liquidity, makes money the most sought-after asset. Cash has the greatest liquidity, followed by funds on the current deposit. In last place are securities that still need to be sold on the stock market.
41. Liquidity of assets. Solvency of organizations.
One of the indicators characterizing financial condition of an enterprise is its solvency, i.e. the ability of organizations to repay their payment obligations in a timely manner with monetary resources.
Solvency analysis is necessary not only for an enterprise for the purpose of assessing and forecasting financial activities, but also for external investors (banks). Before issuing a loan, the bank must verify the borrower's creditworthiness. Enterprises that want to enter into economic relations with each other must do the same. You especially need to know about your partner’s financial capabilities if the question arises of providing him with a commercial loan or deferred payment.
The assessment of solvency is carried out on the basis of the liquidity characteristics of current assets. The concepts of solvency and liquidity are very close, but the second is more capacious. Solvency depends on the degree of balance sheet liquidity. At the same time, liquidity characterizes not only Current state calculations, but also the future.
Thus they distinguish:
Asset liquidity is the rate at which assets are converted into cash.
Balance sheet liquidity is the degree to which an enterprise's debt obligations are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of payment obligations.
Liquidity of an enterprise is a more general concept than balance sheet liquidity. Balance sheet liquidity involves raising non-payment funds only from internal sources. But the enterprise can attract borrowed funds from the outside, if it has an appropriate image in the business world and a sufficiently high level of investment attractiveness.
The task of analyzing balance sheet liquidity arises in connection with the need to assess the solvency of the organization.
Analysis of balance sheet liquidity consists of comparing funds for assets, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liabilities for liabilities, grouped by their maturity dates and arranged in ascending order of maturity. Depending on the degree of liquidity, i.e. the rate of conversion into cash, the assets of the enterprise are divided into the following groups:
A1. The most liquid assets - these include all items of the enterprise's funds and short-term financial investments.
A2. Quickly realizable assets are short-term receivables.
A3. Slowly selling assets - items in section II of the balance sheet asset, including inventories, value added tax, long-term receivables and other current assets.
A4. Hard-to-sell assets - items in section I of the balance sheet asset - non-current assets.
Balance sheet liabilities are grouped according to the degree of urgency of their payment.
P1. The most urgent obligations include accounts payable.
P2. Short-term liabilities are short-term loans and borrowings, debt to participants for payment of income, and other short-term liabilities.
PZ. Long-term liabilities - long-term loans and borrowings.
P4. Permanent, or stable, liabilities are the result section III, future income, as well as reserves for future expenses and payments.
The balance is considered absolutely liquid if the following relationships exist: A1 ≥ P1, A2 ≥ P2, A3 ≥ P3, A4 ≤ P4.
If the first three inequalities are satisfied in a given system, then this entails the fulfillment of the fourth inequality, so it is important to compare the results of the first three groups for assets and liabilities. The fulfillment of the fourth inequality indicates compliance with one of the conditions for financial stability - the presence of working capital at the enterprise.
In the case when one or more inequalities of the system have a sign opposite to that fixed in the optimal option, the liquidity of the balance sheet differs to a greater or lesser extent from absolute. At the same time, the lack of funds in one group of assets is compensated by their surplus in another group in the valuation; in a real situation, less liquid assets cannot replace more liquid ones.
Comparison of A1 and A2 with P1 and P2 allows one to calculate current liquidity, which indicates the solvency or insolvency of the organization for the period of time closest to the moment under consideration. A comparison of A3 and A4 with P3 and P4 reflects forward-looking liquidity, which is a forecast of solvency based on a comparison of future receipts and payments.
Along with in absolute terms To assess the liquidity and solvency of an enterprise, relative indicators are calculated: absolute liquidity ratio, quick liquidity ratio and current liquidity ratio.
The indicators of this group allow you to describe and analyze the ability of the enterprise to meet its current obligations. The algorithm for calculating these indicators is based on the idea of comparing current assets ( working capital) with short-term accounts payable. As a result of the calculation, it is established whether the enterprise is sufficiently provided with working capital necessary for settlements with creditors for current operations.
Liquidity ratios are calculated, as a rule, in pairs (at the beginning and end of the analyzed period). If the actual value of the coefficient does not correspond to the normal limit, then it can be estimated by its dynamics (increase or decrease in value).
The absolute liquidity ratio shows the potential ability of an organization to cover short-term obligations with instantly realizable assets and is calculated using the formula:
where D is the organization’s funds (form No. 1. Page 260), thousand rubles;
KFV - short-term financial investments (form No. 1. Page 250), thousand rubles;
KO - the amount of short-term liabilities (form No. 1. Page 690 - line 640 - line 650), thousand rubles.
The quick liquidity ratio shows the potential ability of an organization to cover short-term obligations with quickly realizable assets and is calculated using the formula:
where KDZ is short-term receivables (form No. 1. Page 240), thousand rubles.
The current liquidity ratio shows the organization's potential to cover short-term obligations with current assets and is calculated using the formula:
where OA is the amount of the organization’s current assets (form No. 1. Page 290 - line 220 - line 230), thousand rubles.
Standard value 1≤ ≤ 2.
If the values of all three indicators meet the standards, then the solvency of the enterprise is considered secured. If at least one of the first two coefficients does not correspond to the standard value, then solvency is considered weak. If the third coefficient does not meet the standard, then the solvency of the enterprise is assessed as weak, regardless of the values taken by the first two coefficients.
Various solvency indicators not only characterize the stability of the organization’s financial condition under different methods of accounting for the liquidity of funds, but also meet the interests of various external users of analytical information. For example, for suppliers of raw materials and materials, the absolute liquidity ratio is most interesting. The bank giving a loan to this organization pays more attention to the quick liquidity ratio. Buyers and holders of company shares largely assess financial stability by the current liquidity ratio.
Liquidity (from Latin - liquid, flowing) is an economic term denoting the ability of assets to be quickly sold at a price close to the market price. Liquid - convertible into money.
Balance sheet liquidity is the degree to which the enterprise's liabilities are covered by assets, the period of conversion of which into cash corresponds to the period of repayment of liabilities. The solvency of the enterprise depends on the degree of balance sheet liquidity. The main sign of liquidity is the formal excess of the value of current assets over short-term liabilities. And the greater this excess, the more favorable the financial condition of the enterprise in terms of liquidity.
The relevance of determining balance sheet liquidity acquires particular importance in conditions of economic instability, as well as during the liquidation of an enterprise due to its bankruptcy. Here the question arises: does the enterprise have enough funds to cover its debt. The same problem arises when it is necessary to determine whether the enterprise has enough funds to pay creditors, i.e. the ability to liquidate (repay) debt with available funds. IN in this case When speaking about liquidity, we mean that the enterprise has working capital in an amount theoretically sufficient to pay off short-term obligations.
To analyze the liquidity of an enterprise's balance sheet, asset items are grouped according to the degree of liquidity - from the most quickly converted into money to the least. Liabilities are grouped according to the urgency of payment of obligations.
Group A1. The most liquid assets with minimum period turning into money. These include: cash on hand and funds in current accounts, which can be used to carry out current payments immediately. This group also includes short-term financial investments.
The most liquid assets A1, rubles, are calculated using formula 6.
A1= line 1250+line 1240,
where line 1250 - cash and cash equivalents;
p.1240 - financial investments.
Group A2. Quickly marketable assets that require a certain amount of time to convert into cash. This group includes accounts receivable for which payments are expected within 12 months after the reporting date.
Quickly realizable assets A2, rubles, are calculated using formula 7.
A2=page 1230+page 1260,
where line 1230 is accounts receivable;
line 1260 - other current assets.
Group A3. Slowly selling assets. The least liquid assets are inventories, accounts receivable, payments for which are expected more than 12 months after the reporting date, value added tax on acquired assets, and other current assets.
Slowly realizable assets A3, rubles, are calculated using formula 8.
A3=page 1210+page 1220,
where line 1210 - reserves;
line 1220 - value added tax on acquired assets.
Group A4. Hard to sell assets. Assets that are intended to be used in business activities for an extended period of time. This group includes the articles of section I of the balance sheet asset “Non-current assets”.
Hard-to-sell assets A4, rub., are calculated using formula 9.
A4=page 1100, (9)
where line 1100 is the total for the non-current assets section.
Group P1. The most urgent obligations (liabilities). Accounts payable, dividend payments, other short-term liabilities, as well as loans not repaid on time (according to the appendices to the balance sheet).
The most urgent liabilities P1, rubles, are calculated using formula 10.
P1=line 1520+line 1540+line 1550,
where line 1520 is accounts payable;
line 1540 - estimated liabilities;
line 1550 - other obligations.
Group P2. Short-term liabilities. Short term borrowed loans banks and other loans to be repaid within 12 months after the reporting date. When determining the first and second groups of liabilities, in order to obtain reliable results, it is necessary to know the time of fulfillment of all short-term obligations. In practice, this is only possible for internal analytics. In external analysis, due to limited information, this problem becomes much more complicated and is solved, as a rule, on the basis of the previous experience of the analyst performing the analysis.
Short-term liabilities P2, rub., are calculated using formula 11.
P2=page 1510,
where p.1510 - ( long term duties) borrowed funds.
Group P3. Long-term liabilities. Long-term borrowed loans and other long-term liabilities are items in Section IV of the balance sheet “Long-term liabilities”.
Long-term liabilities P3, rub., are calculated using formula 12.
P3=p.1410+p.1420+p.1450,
where line 1410 - (short-term liabilities) borrowed funds;
line 1420 - deferred tax liabilities;
line 1450 - (long-term liabilities) other liabilities.
Group P4. Permanent liabilities. Articles of section III of the balance sheet “Capital and reserves” and individual items of section V of the balance sheet that are not included in the previous groups: “Deferred income” and “Reserves” upcoming expenses" To maintain the balance of assets and liabilities, the total of this group should be reduced by the amount under the items “Deferred expenses” and “Losses”.
Fixed liabilities P4, rub., are calculated using formula 13.
P4=p.1310+p.1360+p.1370+p.1530+p.1350+p.1320+p.1340,
where p.1310 - authorized capital(share capital, authorized capital, contributions of partners);
line 1360 - reserve capital;
p.1370 - retained earnings(uncovered loss);
line 1530 - income of future periods;
p.1350 - Extra capital(without revaluation);
line 1320 - own shares purchased from shareholders;
line 1340 - revaluation of non-current assets.
With a good structure of assets and liabilities, the following ratios are satisfied:
A1? P1; A2? P2; A3? P3; A4? P4.
Based on a comparison of groups of assets with the corresponding groups of liabilities, a judgment is made about the liquidity of the enterprise's balance sheet. A comparison of liquid funds and liabilities allows us to calculate the following indicators:
Current liquidity, which indicates the solvency (+) or insolvency (-) of the organization for the period of time closest to the moment under consideration.
Current liquidity ratio, Kt.l., rub., is determined by formula 14.
Prospective liquidity is a forecast of solvency based on a comparison of future receipts and payments.
The prospective liquidity ratio, Kp.l., rub., is determined by formula 15.
Kp.l.=A3-P3
Analysis of balance sheet liquidity is an important process in planning entrepreneurial activity, as well as evaluation of the results already obtained. Analysis of balance sheet liquidity shows how quickly the organization's liabilities can be repaid using existing assets.
The analysis of balance sheet liquidity can be considered using the following example.
Based on the balance sheet of the enterprise, I calculated current and future liquidity and drew conclusions.
Table 3 - Calculation of current and future liquidity
|
Assets (specify balance sheet lines) |
Liabilities (specify balance lines) |
Payment surplus or deficiency |
||||||
|
Most liquid (1250+1240) |
Most urgent liabilities (1520+1540+1550) |
|||||||
|
Quickly sold (1230+1260) |
Short-term liabilities (1550+1510) |
|||||||
|
Slow to implement (1210+1220) |
Long-term liabilities (1410+1420+1450) |
|||||||
|
Hard to sell (1100+1230) |
Constant liabilities (1310+1360+1370+1530+1350+1320+1340) |
|||||||
A1(34) ? P1(21425) does not match
A2(10531) ? P2(17789) does not match
A3(52416) ? P3(4268) matches
A4(27344) ? P4(40843) matches
Calculation of current liquidity using formula 14.
For 2013 -26980 is a negative result.
For 2014 -28649 - negative result.
Calculation of prospective liquidity using formula 15.
For 2013 +36287 is a positive result.
For 2014 +48148 is a positive result.
For the next period of time, the solvency of the enterprise shows a negative result. This can be corrected by increasing lines A1 and A2, which include cash, cash equivalents...
Compared to 2013, the current liquidity of the enterprise increased by 6% (RUB 1,669 thousand), negative point; prospective liquidity increased by 33% (RUB 11,861 thousand), a positive thing.
The company has a payment surplus for 2014 for future liquidity and payment deficiency for current liquidity. IN reporting year the enterprise does not have absolute liquidity. The company aims to increase its activities for the future and future liquidity.
Proposals to improve current and future liquidity: improve the quality of services and products, reduce product prices, increase the number of employees; to ensure the sustainability and profitability of an enterprise in a crisis, it is necessary to ensure an increase in income from the performance of work (services) and create conditions for their growth, to increase the efficiency of the use of labor and material resources, wage systems, optimize business processes.