Without a doubt, any financial manager must be able to analyze the figures contained in the financial statements of the company for the benefit of which he is working.The benefit of this analysis is difficult to overestimate, because it is based on it is built all the work of the financial division.
Western economists and analysts recognize as the most significant forms of reporting the profit and loss account, as nothing more than profit is the most important performance results.In Russia, the primacy given to the balance sheet, which also makes sense.Analyzing the performance of its components, it can be concluded on the financial stability of the company, as well as the level of its liquidity.Next, it will be considered the specifics of how to assess the liquidity of the company's balance sheet.
and domestic and foreign practice offer a variety of options for this analysis, but the most widely compilation and study of the so-called balance sheet liquidity.When using this method, balance sheet liquidity is determined by combining in the same number of groups of indicators of assets and liabilities, followed by a comparison of the values obtained.
These groups are formed in order of decreasing liquidity (for an asset) or in decreasing order of urgency (for liabilities).Each financial manager can choose the number of groups on your own, but we consider the most traditional version, in which the liquidity of the balance sheet examined pairwise comparison of the four "baskets" of assets and liabilities.
Before considering the composition of the individual groups should be little to explain the meaning of "liquidity".This category describes the ability of a property with the least possible losses and the least time to take the form of money.Thus, the most liquid assets, which are obviously money.And, for example, the liquidity of the shares is determined by the demand for them: the more willing to buy them, the easier you will be able to sell them at the normal market price.
As already mentioned, the money liquidity of any other asset, so they are included in the first group.Also, it is possible to include short-term investments, doubt that lack of liquidity.The second group consists of quick assets (other current assets and short-term receivables).The third - of all stocks and long-term investments (including the amount to be excluded equity Other organizations).Accordingly, all other assets and form the fourth group of recognized slow-moving.
The liabilities also formed a number of groups.Accounts payable and other current value of the debt included in the first group, the remaining short-term liabilities - in the second, and the long-term - in the third.Liabilities that are not debt, go on the formation of the fourth group.
To determine the liquidity balance sheet, compares the size of the groups created.The first three groups of assets exceed liabilities, the corresponding group.The relationship between the fourth group is governing.If these conditions are met, the financial condition of the company is at an acceptable level.If there is a deviation, it is necessary to adopt measures to harmonize the structure of assets and liabilities.
During the implementation process, financial management is very important to evaluate the liquidity of the balance sheet.Businesses that do not follow these indices, risk being stranded when it is not able to pay off its debtors.