liquidity and solvency of the company constitute perhaps the most important aspect that must be analyzed in the study of financial condition.In this regard, we consider the basic techniques of how to calculate the liquidity of the company and to make a conclusion about the situation in the organization at this point.
As you probably know, is the liquidity of the general economic category and represents the ability of a property as soon as possible to acquire the form of money as possible without loss of value.However, with respect to our liquidity situation of the company is matching the terms and volumes between its liabilities and assets that can be used to settle the obligations.Liquidity and solvency of the company is determined solely on the balance sheet.This, as well as ease of calculation and substantial economic sense to do an analysis of liquidity one of the major methods for studying the financial condition.
As a rule, to assess the liquidity of the company, first of all, expect a number of liquidity ratios.These ratios represent the ratio in one way or another liquid assets to short-term debts of the enterprise.Under the liquid property in this case refers to fully or partially Assets firm depending on the particular coefficient.If we refer to the full-size short-term obligations of current assets, it is possible to determine the total coverage ratio.It characterizes the sufficiency of the total current assets to cover the most urgent debts.Current assets should be sufficient for this, but they should not exceed these obligations more than doubled.If the sum of the assets exclude stocks (less liquid assets), we define the coefficient of the intermediate cover, which shall not be less than one.It shows the possibility of repayment obligations when collecting all receivables.If we calculate the coefficient solely on the absolute liquid assets, ie money and liquid financial investments, the result is an absolute indicator of liquidity.He characterizes the share of short-term liabilities, which can be returned immediately.This percentage should be at the level of one-fourth of.
Another method that allows you to set the liquidity and solvency of the company is to build a special balance sheet liquidity.The essence of this method is very simple and consists in grouping of assets and liabilities in the same amount of the Group's liquidity and maturity.After the groups are formed, it is necessary to compare them in pairs.The excess of assets over liabilities is the payment surplus, and vice versa - a disadvantage.Absolute liquidity is a situation where there is a surplus for all groups except those that are illiquid assets and liabilities are permanent.As a general rule, in assessing the liquidity of the real economy have resorted to drawing up the four groups on each side.As for financial institutions, particularly banks, in this case, it is more complicated.The fact that the bank's vital match between assets and liabilities in terms and volumes, so the groups in this case is much larger.
If a particular type of analysis has revealed a lack of liquidity of the enterprise, it can lead to an inability to pay its debts on time and in full.This situation may be a harbinger of bankruptcy, so it's extremely important to take management decisions aimed at to increase the liquidity and solvency of the company.
