market economy makes a huge amount of requirements for companies that want to operate in it.The main criteria by which an assessment of firms, it is the efficiency and financial sustainability.The latter in turn is closely related to a term such as liquidity, which can be studied in several ways.Probably the most popular can be called analysis of balance sheet liquidity, and we shall discuss it in more detail.
Before proceeding to the description of the method, it is necessary to dwell on that, what is liquidity.With regard to our situation, it is the extent to which obligations fully and accurately the company provided by its property.Direct analysis of liquidity balance is broken down both sides of the balance sheet on the same number of groups and comparing them with each other.In the process of building a group going on a so-called balance sheet liquidity.Special attention should be to focus on how the same way to form these groups.
analysis of balance sheet liquidity is usually carried out pairwise comparisons of groups of assets, and 4, respectively, of liabilities.Assets are grouped together according to the degree of liquidity and are ranked in order of its decline and liabilities - by maturity, ranging in order to reduce it.
assets of the first group are fully liquid, so here includes only cash and short-term investments.The property is the second group has no cash, but it gets pretty quickly - a short-term "accounts receivable" and other current assets.The third group of assets to monetize more difficult as here include stocks and investments that are made for the long term.Obviously, all the rest of the property is included in the fourth group is the least liquid, unwieldy.
We turn to the group of liabilities, which is even more simple.The most urgent obligations recognized accounts payable and short-term debts listed as miscellaneous.They form the first group of liabilities.The remaining short-term liabilities can be attributed to the second group.Long-term commitment to all its volume is filled with the third group, and permanent liabilities (ie available capital and reserves) - fourth.
After the groups are formed, it is required to make a comparison between them.Rather, it is necessary to compare pairwise combined Sheet, i.e. a first group with first, second, respectively, the second and so on until the end.If the value of the assets more, this is called a payment surplus, and otherwise - payment disadvantage.Absolute liquidity balance can be detected in the presence of excess of the first three couples and a lack of the fourth.This latest flaw is extremely significant economic sense, as evidenced by the fact that the company has its own working capital.
It is clear that not all businesses have absolute liquidity balance.It may also happen that liquid assets will not suffice to meet obligations.In this case it is necessary to take decisions aimed at normalizing the status as less liquid assets only arithmetically compensate more liquidity.
described technique by which we conducted an analysis of liquidity balance is used only for enterprises in the real economy.If the task to analyze the liquidity and solvency of the bank, you need to link more closely with each other on the timing and amount of assets and liabilities, as their compliance is vital for any credit institution.
