accounting statements of the enterprise - this is an extremely important document, not only for external but also for internal users.The fact is that, based on these reports can be quite deeply analyze the financial situation of the company, identify problems, and even suggest solutions.In the Russian practice in the first place to put this form of statements like balance sheet.Of course, it is impossible to draw a conclusion about the effectiveness of the enterprise, but to analyze the financial condition can be quite simple.For more details I would like to dwell on how to evaluate the liquidity of a company's statements.
Before proceeding to a description of methods of analysis, it is necessary to identify the purpose of such studies.Liquidity balance reflects the extent linked together in terms of timing and the liabilities and assets of the company.In other words, the term debts of the enterprise must be covered by liquid assets.
The simplest method, which allows an assessment of the least time consuming way is the construction of the balance of liquidity.This requires further grouped articles balance so that the number of groups equal to the number of assets groups liabilities.Moreover, the assets need to be grouped, since most liquid and liabilities - with the most urgent.Most often resort to the formation of the four groups on each side of the balance.
grouping of assets from the start of the second section, towards the end of which contains the most liquid assets.It is obvious that the first group consists of cash and financial investments that are made in the short term.Thus illiquid assets should be excluded from this group.
second group consists of assets that can be quickly transformed into money.This requirement better meet other current assets and current liabilities of debtors.
then need to sum up assets that are so fast you can not turn into money, but to use them to provide not the most urgent obligations can be.In this group include reserves, as well as more long-term investments.
All other assets are included in the last - fourth - group.This property is most difficult to convert into cash, and this testifies to its low liquidity.
Sort liabilities of urgency, perhaps even easier.Other short-term liabilities and payables are recognized as the most urgent obligations and, therefore, form the first group.
second group created by all of the remaining short-term debts that have not been addressed previously.
third and fourth groups are formed, respectively fourth and third sections of the balance sheet, even here there is no need for additional terms.
After group created, they must be compared with each other - the first group with the first, second - the second and so on.The absolute liquidity balance is characterized by the fact that the assets of the first three groups, respectively, must exceed the largest liabilities.In the fourth group must be respected otherwise the ratio, because it shows that the company has its own working capital.
Failure to comply with these conditions need to carry out some activities in order to normalize the balance sheet structure.It is clear that the balance, in any case, will converge, but less liquid assets will offset more liquid solely in terms of arithmetic, but to actually use them for the repayment of debt will not be.Liquidity balance is a very important criterion for judging the current state of the enterprise, as well as its future prospects.
