Evaluation of the financial condition of the organization is carried out with the use of a system or set of coefficients.These indicators are designed to characterize the financial stability and be responsible for the stable position of the company.
entity's financial position can be considered sustainable when it can be covered by up to 50 percent of the financial resources of their own funds.At the same time, the company must effectively use these resources to comply with payment, credit and financial discipline and be solvent.On the company's financial condition can be said after the analysis of liquidity, assess the financial stability and solvency.
funding ratio shows the economic stability of the economic environment in which the company carried out its main activity.Taken into account the results of functioning, efficient and proactive response to any changes in the external and internal factors.
Financial sustainability of any company should be based on a stable surplus, the efficient use of funds, uninterrupted production process.Funding ratio is calculated on the basis of production and economic activities of the entity, and is one of the main indicators of the sustainability of the enterprise.
how well the company manages its cash flow as of a certain date, allows to characterize the corresponding analysis of financial sustainability.Very important in this case is to match the requirements of the financial market, and must meet the strategic directions of development of a business entity.
To assess the current economic situation and serves as a funding ratio, calculated by the ratio of own sources for borrowing enterprises on the basis of the balance sheet.This indicator should determine what proportion of assets consist of equity.This factor describes a business entity independent from external financial sources.
With favorable economic situation of the enterprise funding ratio must be greater than one.When the value of the index is less than one the risk of insolvency.And enterprises would be extremely difficult to obtain credit in the banking institutions.
Another important parameter for evaluating the effectiveness of life of the enterprise is a factor of sustainable funding.It is determined by the ratio of total long-term liabilities and equity to the balance sheet currency.
This figure shows the portion of the assets of the enterprise, which can be financed by permanent sources.In other words, the share of long-term use in economic activities funding.
Any enterprise of one of the main objectives should be to ensure stability over the long term.The achievement of positive financial performance is possible only at low dependence on investors and creditors.Today there is a tendency that the own funds invested in the production of the minimum size, and the main "infusion" of Finance at the expense of borrowed.It therefore attaches particular importance to indicators of sustainable funding.It is only this ratio shows the dependence of the company on external financial sources.In addition to using this coefficient, analysis of financial stability can be carried out using the "net assets".
