If you want the most accurate assessment of the state of an enterprise from a financial point of view, then you will have done a considerable amount of work.Financial is quite versatile, and for compiling the closest to the reality of the characteristics required to determine the parameters that characterize the financial stability indicators of how effectively the activities, as well as those factors that describe the liquidity of the company.Special attention should be paid is the last group of coefficients.
Before considering the specific methods of calculation is to say that the liquidity of the company is the ratio and the correspondence between the most urgent debts of enterprises and certain assets that can be directed to repay it.
consideration factors start with the most general one, which is called the index of current liquidity.It reflects the adequacy of current assets of the company for short-term liabilities and is determined by their attitude.As with many other factors, it has a standard value.It is believed that in a pinch-term debts of the company must be 100% covered by current assets ,.Thus, the bottom indicator is limited to 1. Above the limit is 2 and is a requirement of efficiency.In other words, if the amount of current assets of more than twice the current liabilities, it is possible to speak about their excess and inefficient use.These borders are very general and can not meet the characteristics of a particular company or industry.Each company can calculate its normal level of this factor by assigning short-term liabilities and normalized component of current assets to current liabilities.Subject to this level of the coefficient, the company can continue to work, even if the term will return all your debts.
With the exclusion from the numerator of the least liquid part of current assets - inventories - index is converted to an intermediate liquidity ratio.Its meaning in this case has to be made up in the following: how the company will be able to provide all of their most urgent obligations in full recovery of receivables.Purely arithmetically it is clear that this figure can not be more than the previous one.The lower limit of traditionally established at the level of 1. The calculation should take into account that some stocks may be very liquid.For example, products that the organization is shipping prepaid.This value must also be included in the calculation, and illiquid assets should be deducted.
absolute liquidity of the company is characterized by the ratio of the same name.It reflects the share of short-term liabilities, which can pay off completely liquid assets (cash and financial investments, equal to them).For developed economies, traditionally considered an acceptable share of 20-25 percent, but Russian companies for a number of reasons, at best, are content with 10%.
In some cases, resorted to the calculation of the liquidity ratio in the fund-raising.Mobilization in this case refers to the realization of inventories and the direction of the proceeds to return term debt.Accordingly, the coefficient is determined, as the ratio of reserves to the total value of short-term liabilities.It recognizes the importance of the normal level of at least 0.5 but less than 0.7.
If one or more factors beyond standards or have a negative trend, the management should think about how to improve the liquidity of the company.
