Any commercial firm wants to continue its work as long as possible.This means that the financial situation of the enterprise should be to a certain extent stable.And to draw a conclusion on the financial situation, it is necessary to carry out some analytical procedures.One of the most important among them, but it is very simple, is the evaluation of balance sheet liquidity.
aim of every enterprise - absolute liquidity.Determine whether the balance sheet with this requirement can be achieved by the balance sheet liquidity.This is the most common method of analysis, both in Russia and in other countries.Its meaning is to compare the assets, grouped by liquidity and liabilities grouped by maturity.Every finance manager may form groups based on research objectives or characteristics of the company, but we consider the most traditional version, implying the division of assets and liabilities into 4 groups.
absolute liquidity is the criterion for the asset is attributed to the first group.Cash has absolute liquidity, and equated them short-term investments.It is desirable to identify only those KPH, doubt that there is no liquidity.
second group to form quick-assets.They traditionally include short-term receivables, assuming that it fairly quickly transformed into cash.In addition to her here also include other current assets.
less liquid assets referred to as slow-moving, they form the third group.It is obvious that here is required to carry inventory of the enterprise, as well as long-term investments (excluding the contributions to the capital of other organizations).
And, finally, the least liquid assets comprise fixed assets, other non-current assets and long-term receivables.
Similarly, group the liabilities of the company, the group ranking in decreasing order of urgency.Thus, the first group will contain the most urgent obligations, which consist of accounts payable and other short-term debts.
second group consists of all other short-term liabilities that were not assigned to the first group.
Long-term obligations in full form the third group of liabilities, that is, here you can just burn up 4 of the balance sheet.
The fourth group decided to attribute the so-called permanent liabilities, that is, those who do not need to be repaid.They are presented in the third section of the balance sheet and are composed of capital and reserves.As you can see, it is very easy to group liabilities, almost not even necessary to recalculate the results sections of the balance sheet.
To determine the absolute liquidity balance of the company or not, you need to compare the groups in pairs.Because the value of the assets of each group must be subtracted the value of the corresponding group of liabilities.Terms of absolute liquidity balance - the existence of payments surplus (assets over liabilities) for the first three pairs of groups and a lack of payments (liabilities over assets) of the latter.Compliance with the latter condition is especially important due to the fact that it suggests that the disposal of the company's own current assets are present.This, in turn, is a prerequisite for financial stability.
It should be noted that the absolute liquidity can be achieved is hard enough, but to seek it definitely worth it.The fact that a lack of liquid assets is offset by less liquid only arithmetically, but in practice, use them to repay term liabilities will be impossible.
