Coefficient absolute liquidity (English equivalent of Cash Ratio) – the ratio of the most liquid part of assets and current (short-term) liabilities. The most liquid part of assets includes cash and cash equivalents. The indicator shows the share current liabilities company that can be repaid immediately. This indicator belongs to the group of liquidity indicators.

Normative value

The normative value is considered from 0.1 to 0.2. A lower ratio indicates that the company will not be able to repay debts on time if payments are due soon. A value higher than the norm may also indicate problems in the company and indicate an ineffective management strategy financial resources. Cash, unlike other assets, do not take part in the production and sales process, they do not generate income for the company. Therefore, a too high indicator indicates that a significant part of the capital is diverted to the formation of unproductive assets.

Directions for solving the problem of finding an indicator outside the standard limits

If the value of the indicator is below the standard, then the company can raise borrowed funds, realize some of the extra assets to increase the amount most liquid assets. If the value of the indicator is higher than the standard value, then the company can invest part of the money(above the norm) in production and marketing activities, in financial investment etc.

Formula for calculating the coefficient:

Absolute liquidity ratio = Cash and cash equivalents / Current liabilities

Notes and adjustments

Cash is the means by which all participants financial process agree to exchange when making financial transactions. In order for cash to be classified as a current asset, there must be no restrictions on its storage or use. This situation is possible, for example, in the event of a court decision to seize funds. If there are such restrictions, then it is necessary to adjust the indicator of cash and cash equivalents, which is used in calculating the indicator.

Companies often display restricted cash as cash and equivalents on the balance sheet. In this case, information about restrictions can be found in the notes to financial statements. In addition to reducing cash and cash equivalents by the amount of the restricted portion, you must also adjust the value of current liabilities and subtract those associated with the restriction.

An example of calculating the absolute liquidity ratio:

Company OJSC "WebInnovation-plus"

Unit of measurement: thousand rubles.

Absolute liquidity ratio (2016) = 75/242 = 0.31

Absolute liquidity ratio (2015) = 46/236 = 0.2

The data obtained show that in 2015, for every ruble of current liabilities there was about 0.2 ruble of cash and cash equivalents. Thus, the company OJSC “WebInnovation-plus” could be liable for its obligations in 2015. In 2016, the situation changed and the coefficient value was 0.31.

To reduce this value, it is advisable to use part of the funds, for example, to purchase bonds of other enterprises. This will allow you to receive additional interest income and at the same time remain liquid. Optimal size such an investment will amount to 75 – (242*0.2) = 26.6 thousand rubles. Accordingly, (75 - 26.6) = 48.4 thousand rubles. - this is the amount of cash and equivalents at which absolute liquidity will be within standard limits while the value of the amount of current liabilities remains unchanged.

Trade organizations, especially organizations wholesale trade, have their own operating characteristics, which are manifested in the financial and economic analysis of their activities, especially when analyzing liquidity indicators and financial stability. Standard procedures, techniques and recommended coefficients of financial and economic analysis developed for production organizations, work unsatisfactorily for organizations in the service sector, which includes trade. The result of such an application is incorrect conclusions that distort the picture. financial condition organizations.

Among the features of the work of trade organizations the following can be noted:

1. Low value of fixed assets compared to the value of trade turnover (trade revenue). Fixed assets include retail and warehouse premises, transport. At the same time, small companies rent all this, medium-sized companies have their own retail premises, and rent warehouses and transport, large companies- own.
2. Low value of statutory and equity. Trade lives on credit. Products sold are purchased with borrowed funds; funds from the sale of goods are received with some delay (wholesale companies often give the goods “for sale” and receive funds after the sale of the goods).
3. Low value of free cash flow. For getting maximum value proceeds, funds must be constantly in circulation.

These features are reflected in the financial and economic indicators of trading organizations, primarily in their balance sheets. In assets: low value of fixed assets and non-current assets in general, high value of accounts receivable with a collection period of less than 12 months, low value of funds. A significant share of accounts receivable is occupied by the debt of buyers and customers. In the passive: low quantity value authorized capital and capital and reserves in general, high value of short-term loans and credits, high value accounts payable. A significant share of accounts payable is debt to suppliers and contractors.

Let us consider the features of financial and economic analysis in trade using the example of a trading wholesale organization (Table 1). The analysis uses the balance sheet form for 2010.

Table 1. Fragment of the balance sheet of a trading wholesale organization.

Analysis of overall balance sheet liquidity

By comparing assets by the degree of their liquidity, and liabilities by their maturity dates, we will form an aggregated liquidity balance, which allows us to more clearly assess the values ​​of balance sheet items.

Let's analyze the liquidity of the balance sheet of a trading organization for reporting period by applying standard methods (Table 2).

Table 2. Aggregated liquidity balance.

Standard analysis scheme

According to the table, one can conclude: of the four mandatory conditions for absolute liquidity, only two are met, therefore, the balance sheet of a trading organization is not absolutely liquid.

Failure to comply with the condition A 1 ≥ P 1 (927 < 24,066 at the beginning, 2,884 < 44,091 at the end of the period) indicates the insufficiency of the most liquid assets to pay urgent accounts payable.

Failure to comply with the condition A 2 ≥ P 2 (57 841 > 69,333 at the beginning of the period, 49,414 > 54,047 at the end of the period) indicates the insufficiency of quickly realizable assets to repay short-term loans and borrowings.

Compliance with the condition A 3 ≥ P 3(0 = 0 at the beginning of the period, 0 = 0 at the end of the period) indicates the sufficiency of slowly selling assets to cover long-term liabilities.

Compliance with the condition A 4 ≤ P 4 (991 < 6,950 at the beginning of the period, 168 < 13,537 at the end of the period) indicates the sufficiency of equity capital and other permanent liabilities to meet the need for current assets.

Proposed analysis scheme

For a trading organization, the normal state is the absence large quantity free cash and a significant amount of loans. Therefore, the inconsistency of the condition A 1 ≥ P 1 (927 < 24 066 на начало периода, 2 884 < 44 091 на конец периода) не свидетельствует о недостаточности наиболее ликвидных активов для оплаты срочной кредиторской задолженности. Остальные неравенства применимы для анализа.

Conclusion: ratio A 1 ≥ P 1 not applicable for financial analysis trade organization. For these enterprises, the liquidity of the balance sheet can be judged by the fulfillment of three conditions:

A 2 ≥ P 2

A 3 ≥ P 3

A 4 ≤ P 4

For the analyzed enterprise, two out of three conditions are met. Conclusion: the balance can be considered partially liquid.

Let us continue the analysis of the liquidity of a trading organization based on the coefficients presented in Table 3. The calculations were performed according to the accepted methodology.

Table 3. Financial ratios liquidity.

Standard analysis

An analysis of Table 4 shows that none of the three liquidity ratios meets the established standards.

Conclusions:

1. The absolute liquidity ratio is not normal and is very low. This indicates a clear lack of funds in the trading organization to cover short-term obligations (absolute illiquidity).
2. The critical liquidity ratio is not normal. This indicates the inability of the trading organization to pay off its obligations in full, subject to timely settlements with creditors and a favorable sale finished products.
3. The current ratio is not normal. This indicates the inability of a trading organization to pay off its obligations, subject to not only timely settlements with debtors and favorable sales of finished products, but also the sale, if necessary, of other material elements working capital.

The organization is illiquid by all liquidity indicators.

Proposed analysis scheme

1. For a trading organization, the normal state is the absence of a large amount of free cash and a significant amount of loans. Therefore, the low value of the absolute liquidity ratio ( Kal= 0.01 at the beginning of the period, Kal= 0.03 at the end of the period) does not indicate the insufficiency of the most liquid assets to pay urgent accounts payable.
   Conclusion: The absolute liquidity ratio is not applicable for the financial analysis of a trading organization.
2. A trading organization is characterized by the presence of a large amount of inventory. Therefore, the recommended value of the critical liquidity ratio should not be K class ≥1 , A K class ≥0,5 (expert review). For our organization, this inequality is respected, therefore trade Organization is liquid, which indicates the organization’s ability to pay off its obligations in full, subject to timely settlements with creditors and favorable sales of finished products.
3. A trading organization is characterized by a low value of fixed assets and equity capital. Therefore, the recommended value of the current ratio should not be K t≥ 2 , A K t≥ 1 . For our organization, this inequality is respected, so the trading organization is liquid. This indicates the ability of a trading organization to pay off its obligations, subject to not only timely settlements with debtors and favorable sales of finished products, but also the sale, if necessary, of other elements of material current assets.

The organization is liquid according to all liquidity indicators.

Analysis of the organization's solvency

To determine the solvency of a trading organization, the ratio of means of payment and liabilities should be determined using the values ​​of the absolute indicators presented in Table 4.

Table 4. Correlation of means of payment and obligations.

Table 4 gives a visual representation of the ratio of means of payment and payment obligations. The excess of means of payment over payment obligations at the beginning of the year amounted to 5,959 thousand rubles; during the reporting period, this figure increased slightly more than 2 times and amounted to 13,369 thousand rubles at the end of the year. In general, the organization is able to pay off its debts in full. This means that the trading organization, based on the generalized total of its balance sheet indicators, is solvent.

Conclusion: the standard methodology for analyzing solvency is applicable to trading organizations.

The next stage of financial analysis is the assessment of financial stability, which characterizes the degree of independence of the company from borrowed sources.

Financial stability analysis

A general indicator of financial stability is the surplus or lack of sources of funds for the formation of reserves and costs.

To characterize the sources of inventory formation, we will define 3 main indicators of the availability of sources of inventory formation and costs. These indicators correspond to 3 indicators of the provision of reserves and costs with sources of their formation (Table 5).

Table 5. Absolute indicators for assessing financial stability.

Standard analysis scheme

The trade organization is on this moment financially unstable. At the same time, it has its own working capital, which more than doubled during the reporting period - from 5,959 thousand rubles. up to 13,369 thousand rubles. In general, the total value of the main sources of formation of reserves and costs amounted to 75,292 thousand rubles at the beginning of the year, and 67,416 thousand rubles at the end of the year.

In terms of the provision of reserves with sources of their formation, the organization experiences a lack of its own working capital for the formation of reserves, and the negative value for the reporting period increases from 34,631 thousand rubles. up to 45,840 thousand rubles. However, the total value of the main sources of formation is characterized with a certain surplus. The value of this surplus during the study period decreased from 34,702 thousand rubles. up to 8,207 thousand rubles.

Analysis of table 5 showed that the organization is not able to provide its reserves only through own funds and covers their movement through the use of short-term borrowed money, which contributes to its profitable operation.

Determining the type of financial stability also confirms that the company is financially unstable, since the possibility of profitable operation is ensured only by covering inventories with short-term loans and borrowings, but not with its own funds.

In general, the given ratio 3< СОС + ЗД + ЗС неустойчивого финансового состояния соответствует положению, когда организация для покрытия запасов успешно использует и комбинирует различные источники средств — как собственные, так и привлеченные.

Proposed analysis scheme

To a first approximation, it is obvious that the standard scheme for analyzing financial stability according to absolute indicators not applicable for a trade organization. For such an organization, inventory is unsold goods. In this case, two boundary points arise:

1. Not used commodity credit to consumers. In this case, the value of the reserve (Z) can range from zero to the sum of SOS + ZS. According to the standard methodology, the type of financial condition will be absolutely stable or normally stable.
2. Commodity (non-cash) credit to consumers is used. In this case, the amount of the stock can range from zero to the sum of SOS + LC + TC (commodity credit). According to the standard methodology, the type of financial condition can be any: absolutely stable, normally stable, unstable, crisis (depending on the size of transactions and trade credit).

Considering that big deal can take place within one day, then a trade organization can be absolutely stable one quarter, the next - a crisis, and then - again absolutely stable.

Conclusion: standard technique in existing form is not applicable for a trading organization and requires serious correction.

Let us analyze the financial stability of a trade organization based on relative indicators of stability (Table 6).

Table 6. Relative indicators financial stability assessments.

Standard analysis scheme

Analysis of Table 6 showed that:

• The autonomy coefficient characterizes the share of equity capital in the total volume of liabilities. IN in this case it is not up to standard. This suggests that the organization is dependent on attracting credit funds. However, a slight increase during the reporting period still allows us to hope for increased financial independence in the future and to reduce the risk of financial difficulties in the future;
• The debt-to-equity ratio is also not normal. It determines how much the organization has raised borrowed funds per ruble of its own funds invested in turnover. This indicator indicates that the organization has exceeded the norm in the use of borrowed funds, although the trend of a significant decrease in the indicator indicates that the organization is pursuing the correct policy on the use of borrowed capital, which actively contributes to increasing its own capital, reducing its share in the overall total;
• the ratio of availability of own sources of financing is significantly less than the required value. The indicator determines what part of current assets is financed from own funds. It should be concluded that the organization has too few of its own funds necessary for its financial stability;
• the inventory ratio does not meet the required standard, but during the reporting period it increases, approaching the desired condition. Its meaning indicates to what extent inventories covered with own funds and do not need to raise borrowed funds;
• the value of the maneuverability coefficient is higher than the required norm. It shows the ratio of own working capital to the total amount of sources of own funds. He determines in this case that most of the organization’s own funds are in a mobile form, which allows relatively free maneuvering of these funds. In general, a high value of the indicator positively characterizes the state of the company;
• the financing ratio is not within the recommended values ​​and indicates the impossibility of covering borrowed funds with equity capital, although an increase in the indicator over the period can be observed, but the value, however, is significantly less than required.
• Thus, not a single indicator corresponds to the norm, which indicates the significant dependence of the trading organization on external sources of financing. However, profitable activity in an unstable state is still determined by the fact that the organization puts significant funds into circulation, rather than storing them in slowly selling assets, which allows it to function successfully in the market.

Proposed analysis scheme

As noted above, a trading organization makes extensive use of loans, so it usually has a high proportion of short-term accounts payable (and, accordingly, receivables) on its balance sheet. In this case, own funds may be insignificant. However, if there are strong trade links, the organization will be financially stable.

Conclusion: standard analysis techniques are not applicable to analyze the financial stability of a trading organization. Determining the ratio of mobile and immobilized funds does not make sense due to the low value of non-current assets.

The corresponding coefficients are presented in Table 7.

Table 7. Determination of financial insolvency of an organization.

Standard analysis scheme

The current ratio does not meet the recommended values. In addition, a low value of the coefficient of loss of solvency indicates the possibility of an organization losing solvency within the next three months, and the coefficient of restoration of solvency indicates the impossibility of restoring it within the next six months. As a result, the organization must be declared insolvent.

Proposed analysis scheme

As mentioned above, a trade organization is characterized by a low value of fixed assets and equity capital. IN textbook « Economic analysis trading activities» Abryutina M.S. (M.: “Business and Service”, 2000) two pairs of coefficients are recommended:

or K t ≥ 2, K os ≥ 0.5

or K t ≥ 1.11, K os ≥ 0.1

For our organization, the second pair of inequalities is met at the end of the year, so the trading organization is liquid. This indicates the ability of a trading wholesale organization to pay off its obligations, subject to not only timely settlements with debtors and favorable sales of finished products, but also the sale, if necessary, of other elements of material current assets.

By analogy for restoration and loss of solvency:

Kv ≥ 0.56, K y ≥ 0.56

These coefficients are determined in the case when one of the pair of inequalities ( Kt, Kos) is not observed. This is not required for the analyzed organization; however, the table shows that the coefficients K in, K in are also within normal limits.

As a result, the trading organization must be recognized as solvent.

Definition

Absolute (cash) liquidity ratio(cash ratio) shows the ratio of the organization's most liquid assets - cash and short-term financial investments - to short-term liabilities.

The absolute liquidity ratio is a variation of two other more common liquidity ratios: the current ratio and the quick ratio. At the same time, in calculation this indicator use only the fastest-selling (liquid) assets.

Calculation (formula)

The coefficient is calculated as follows:

Absolute liquidity ratio = (Cash + Short-term financial investments) / Current liabilities

All components of the formula are taken from the organization’s balance sheet.

Normal value

The absolute liquidity ratio is not as popular as the current and quick ratios and does not have a firmly established norm. Most often, a value of 0.2 or more is used as a guideline for the normal value of the indicator. However, too high a ratio indicates unreasonably high amounts of free cash that could be used for business development.

About the coefficient cash liquidity in English read the article " Cash Ratio".

Current ratio

Definition

Current (total) liquidity ratio(current ratio) is a measure of the organization’s solvency, the ability to repay the organization’s current (up to a year) obligations. Lenders widely use this ratio in assessing the current financial position of an organization and the danger of issuing short-term loans to it. In Western practice, the ratio is also known as the working capital ratio.

Calculation (formula)

The current liquidity ratio is calculated as the ratio of current assets to short-term liabilities:

Current ratio = Current assets / Current liabilities

The numerator of the formula is taken from the assets of the balance sheet, the denominator - from the liabilities.

Normal value

The higher the current ratio, the higher the liquidity of the company's assets. A coefficient value of 2 or more is considered normal. However, in world practice it is allowed to reduce this indicator for some industries to 1.5.

A low value of the ratio (below 1) indicates probable difficulties in the organization's repayment of its current obligations. However, to complete the picture, you need to look at the cash flow from the operating activities of the organization - often a low ratio is justified by a strong cash flow (for example, in fast food chains, retail trade).

A current ratio that is too high is also undesirable, since it may reflect insufficiently efficient use of current assets or short-term financing. In any case, lenders prefer to see a higher ratio as a sign of a company's sound position.

Read about the current ratio in English in the article " Cash Ratio".

Quick ratio

Definition

Quick ratio(quick ratio, acid-test ratio) characterizes the organization’s ability to pay off its short-term obligations through the sale of liquid assets. Moreover, liquid assets in this case include both cash and short-term financial investments, as well as short-term receivables (according to another version, all current assets, except for their least liquid part - inventories). The quick liquidity ratio has become widespread in Russian and world practice along with the current liquidity ratio.

Calculation (formula)

The quick ratio is calculated by dividing liquid assets by short-term liabilities:

Quick ratio = (Cash + Short-term financial investments + Short-term receivables) / Current liabilities

According to another version:

Quick ratio = (Current assets - Inventories) / Current liabilities

Inventories are considered the least liquid assets, they are considered the most difficult to convert into money (i.e., sell), so they are not included in the calculation in any case.

Normal value

The higher the quick ratio, the better the financial position of the company. A value of 1.0 or higher is considered normal. At the same time, the meaning may differ for different industries. If the ratio is less than 1, liquid assets do not cover Short-term liabilities, which means there is a risk of loss of solvency, which is a negative signal for investors.

The current liquidity ratio shows the company's ability to pay off its short-term obligations using current assets. The higher this coefficient, the more firmly the company “stands on its feet.” Based on this indicator, we can talk about the solvency of the company.

The current liquidity ratio is important:

• For potential investors. When investing money in any enterprise, investors must calculate the possible profit from their investment.
• For banks. If a company takes out a loan from a bank, then the bank, accordingly, calculates all the risks and possible profits.
• For suppliers materials and raw materials.

A normal current ratio is considered to be between 1.5 and 2.5. If this indicator is less than 1, this means that the company is not able to pay its current bills. There is no talk of long-term commitments. If the coefficient is more than 2.5, this indicates an irrational use of capital and a slow turnover of funds.

How to calculate the current ratio

To calculate the current ratio there is a formula:

Ktl = Current assets of the enterprise / Current liabilities

In turn, the current assets of an enterprise can be represented in the form of another formula: ObAk = A1 + A2 + A3. If you look at the balance sheet, ObAk is the result of section II. Current liabilities are: KrOb = P1 + P2. IN balance sheet This is the summary of section V.

Accordingly, the current liquidity ratio can be calculated using the formula:

Ktl = (A1+A2+A3) / (P1+P2)

Ktl = Total for Section II / Total for Section V

Now you need to figure out what A1, A2, A3, P1 and P2 mean.

A1- assets that are the most liquid, that is, have a quick “turnover”. Such assets include:

• cash in hand, funds in the company's current account (line 1250 of the balance sheet);
• investments in securities(short-term) (balance sheet line 1240)

A2- quickly realizable assets. These are assets that are either already in cash or can be converted in the shortest possible time. Such assets include:

• debt of debtors, the maturity of which does not exceed 12 months (line 1230 of the balance sheet);
• funds on deposit in the bank;
• finished products in warehouse, and shipped goods.

A3- assets that require time to be realized. These include:

• Accounts receivable, payments for which are expected within a period exceeding 1 year from the reporting date;
• VAT on purchased assets (line 1220 of the balance sheet);
• The balance sheet item “deferred expenses” is not included in this group.

P1- the most urgent obligations of the company, that is, the obligations of the company, the repayment of which is expected in the very near future. These include:

• Debt to suppliers (balance sheet line 1520);
• Debt on current tax obligations;
• Debt to employees of the enterprise for wages

P2- liabilities of the company for the short-term period. These include:

• Various short-term loans and borrowings (balance sheet line 1510).

If the amount of a company's current assets exceeds the amount of its liabilities, this indicates that the company has a safety stock. Using this reserve, it can compensate for losses that may arise during the company's activities.

If short-term liabilities exceed or are equal to the amount of current assets, then this indicates that the company cannot pay even the current accounts necessary for normal functioning companies.

Ways to increase the coefficient

To increase the current liquidity ratio, there are the following ways:

• Reducing the amount of accounts payable. One of the ways to manage accounts payable is to restructure it. Its amount can be reduced by providing mutual services (that is, offset), or by writing off this debt as unclaimed.
• Increasing current assets.
• Simultaneous reduction of both current assets and creditors. This is the most optimal and realistic way to increase the current liquidity ratio.

The calculation of the current liquidity ratio occurs with a general analysis of the solvency of the enterprise.

Analysis is necessary to calculate other important indicators solvency of the company: restoration of solvency, loss of solvency.

Based on these calculations, we can talk about the solvency of a given company in its industry.

One of the indicators of a company's performance is the level of liquidity. It assesses the organization's creditworthiness, its ability to in full and pay obligations on time. More details about what liquidity ratios exist and formulas for the new balance sheet for calculating each indicator are presented in the article below.

The essence

Liquidity is the extent to which liabilities are covered by the firm's assets. The latter are divided into groups depending on the period of transformation into. This indicator evaluates:

• the firm's ability to respond quickly to financial problems;
• ability to increase assets with increasing sales volumes;
• opportunity to repay debts.

Liquidity levels

Insufficient liquidity is expressed in the inability to pay debts and assumed obligations. We have to sell fixed assets, and in the worst case, liquidate the organization. Deterioration financial situation is expressed in a decrease in profitability, loss capital investments owners, delay in payment of interest and part of the principal debt on the loan.

The quick liquidity ratio (the balance sheet formula for calculation will be presented below) reflects the ability of a business entity to repay debt using the available funds in its accounts. Current solvency may affect relationships with customers and suppliers. If an enterprise is unable to repay its debt on time, its continued existence is in doubt.

Any liquidity ratio (the balance sheet formula for calculation will be presented below) is determined by the organization’s ratio. These indicators are divided into four groups. In the same way, any liquidity ratio (the balance sheet formula for calculation is needed to analyze activities) can be determined separately for quickly and slowly sold assets and liabilities.

Assets

Liquidity is the ability of an enterprise's assets to generate a certain income. The speed of this process is precisely reflected by the liquidity ratio. The balance formula for calculations will be presented below. The larger it is, the better the enterprise “stands on its feet.”

Let's rank assets according to the speed at which they are converted into cash:

• money in accounts and cash registers;
• bills, treasury securities;
• non-overdue debts to suppliers, loans issued, Central Bank of other enterprises;
• stocks;
• equipment;
• structures;

Now let's distribute assets into groups:

• A1 (the most liquid): funds in cash and in a bank account, shares of other enterprises.

• A2 (quickly sold): short-term debt of counterparties.

• A3 (slowly realized): inventories, work in progress, long-term financial investments.

• A4 (difficult to sell) - non-current assets.

A specific asset belongs to one or another group depending on the degree of use. For example, for a machine-building plant, a lathe will refer to and a unit made specifically for an exhibition will refer to non-current assets with a useful life of several years.

Liabilities

The liquidity ratio, the formula for the balance sheet of which is presented below, is determined by the ratio of assets to liabilities. The latter are also divided into groups:

• P1 - the most popular obligations.
• P2 - loans with a validity period of up to 12 months.
• P3 - other long-term loans.
• P4 - enterprise reserves

The lines of each of the listed groups must coincide with the degree of liquidity of the assets. Therefore, before making calculations, it is advisable to modernize the financial statements.

Balance sheet liquidity

To carry out further calculations, it is necessary to compare the monetary values ​​of the groups. In this case, the following relationships must be satisfied:

• A1 > P1.
• A2 > P2.
• A3 > P3.
• A4< П4.

If the first three of the listed conditions are met, then the fourth will be fulfilled automatically. However, a shortage of funds in one group of assets cannot be compensated by an overabundance in another, since quickly sold funds cannot replace slowly sold assets.

In order to carry out comprehensive assessment the total liquidity ratio is calculated. Balance formula:

L1 = (A1 + (1/2) * A 2 + (1/3) * A3) / (P1 + (1/2) * P2 + (1/3) * P3).

The optimal value is 1 or more.

The information presented in this way is not replete with details. A more detailed calculation of solvency is carried out based on a group of indicators.

Current liquidity

The ability of a business entity to repay using all assets is shown by the current ratio. Balance formula (line numbers):

Ktl = (1200 - 1230 - 1220) / (1500 - 1550 - 1530).

There is also another algorithm by which you can calculate the current ratio. Balance formula:

K = (OA - long-term debt - debt of the founders) / (short-term obligations) = (A1 + A2 + A3) / (Π1 + Π2).

The higher the indicator value, the better the solvency. Its standard values ​​are calculated for each industry, but on average they range from 1.49 to 2.49. A value less than 0.99 indicates the inability of the enterprise to pay on time, and more than 3 indicates high share unused assets.

The coefficient reflects the solvency of the organization not only at the current moment, but also in emergency circumstances. However, it does not always provide the complete picture. For trading enterprises, the value of the indicator is less than the normative one, while for manufacturing enterprises it is most often higher.

Urgent liquidity

The ability of a business entity to repay obligations using quickly salable assets minus inventory reflects the quick liquidity ratio. Balance formula (line numbers):

Ksl = (1230 + 1240 + 1250) / (1500 - 1550 - 1530).

K= (term. DZ + multiple. financial investments + DS) / (term. loans) = (A1 + A2) / (Π1 + Π2).

In the calculation of this coefficient, like the previous one, reserves are not taken into account. From an economic point of view, the sale of this group of assets will bring the most losses to the enterprise.

The optimal value is 1.5, the minimum is 0.8. This indicator reflects the share of liabilities that can be covered by cash receipts from current activities. To increase the value of this indicator, it is necessary to increase the volume of own funds and attract long-term loans.

As in the previous case, an indicator value greater than 3 indicates an irrationally organized capital structure, which is caused by slow inventory turnover and an increase in accounts receivable.

Absolute liquidity

The ability of a business entity to repay debt with cash reflects the absolute liquidity ratio. Balance formula (line numbers):

Cal = (240 + 250) / (500 - 550 - 530).

The optimal value is more than 0.2, the minimum is 0.1. It shows that the organization can pay off 20% of its current liabilities immediately. Despite the purely theoretical probability of the need for urgent repayment of all loans, it is necessary to be able to calculate and analyze the absolute liquidity ratio. Balance formula:

K= (short-term financial investments + DS) / (short-term loans) = A1 / (Π1 + Π2).

The calculations also use the critical liquidity ratio. Balance formula:

Kcl = (A1 + A2) / (P1 + P2).

Other indicators

Maneuverability of capital: A3 / (AO - A4) - (P1 + P2).

Its decrease in dynamics is considered as a positive factor, since part of the funds frozen in production inventories and accounts receivable are released.

Share of assets in the balance sheet: (balance sheet total - A4) / balance sheet total.

Provision of own funds: (P4 - A4) / (JSC - A4).

The organization must have at least 10% own sources financing in the capital structure.

Net working capital

This indicator reflects the difference between current assets and loans, accounts payable. This is that part of the capital that is formed through long-term loans and own funds. The formula for calculation is:

Net capital = OA - short-term loans= page 1200 - page 1500

The excess of working capital over liabilities indicates that the company is able to pay off debts and has reserves for expanding its activities. The standard value is greater than zero. Flaw working capital indicates the organization’s inability to pay off obligations, and a significant excess indicates irrational use of funds.

Example

The company's balance sheet includes:

• Cash (DC) - 60,000 rubles.
• Short-term investments (SFI) - 27,000 rubles.
• (DZ) - 120,000 rub.
• OS - 265 thousand rubles.
• Intangible assets - 34 thousand rubles.
• Inventories (PZ) - 158,000 rub.
• (KZ) - 105,000 rub.
• Short-term loan (CC) - RUB 94,000.
• Long-term loans - 180 thousand rubles.

Cal = (60 + 27) / (105 + 94) = 0.4372.

The optimal value is more than 0.2. The company is able to pay 43% of its obligations using funds in its bank account.

Let's calculate the quick liquidity ratio. Balance formula:

Ksl = (50 + 27 + 120) / (105 + 94) = 1.09.

The minimum value of the indicator is 0.80. If the company uses all available funds, including accounts receivable, then this amount will be 1.09 times more than existing liabilities.

Let's calculate the critical liquidity ratio. Balance formula:

Kcl = (50 + 27 + 120 + 158) / (105 + 94) = 1.628.

Interpretation of results

The coefficients themselves do not carry any meaning, but in terms of time intervals they characterize in detail the activities of the enterprise. Especially if they are supplemented with other calculation indicators and a more detailed consideration of assets that are taken into account in a specific balance sheet line.

Unliquid inventories cannot be used in production. They should not be taken into account when calculating current liquidity.

In an organization that is part of a holding group, when calculating the liquidity ratio, indicators of internal receivables and payables are not taken into account. The level of solvency is best determined by the absolute liquidity ratio.

Overvaluation of assets will cause many problems. Including unlikely debt collection calculations leads to an incorrect (reduced) assessment of solvency, obtaining unreliable data on financial situation organizations.

On the other hand, if assets are excluded from the calculations, the probability of receiving income from which is low, it is difficult to achieve standard values ​​of liquidity indicators.