liquidity balance - is the availability of current assets to the extent that it is sufficient to repay short-term obligations of the company.Liquidity - is the basis of the solvency of each company, ie its ability and the ability to fully and timely comply with its own payment obligations.An important characteristic affecting the conditions and forms of transactions, includingthe ability to obtain a loan is to pay.
period necessary to convert assets into cash (liquidity assets) should coincide with the maturity of liabilities of the enterprise.Liquidity indicators in most countries regulated by law, ie. E. Set a specific list of indicators and determines their criterial levels.To assess the activity of the enterprises used liquidity ratios, which determine the allowable ratios of the individual active and passive balance sheet items, as well as relations within the structure of assets and liabilities of the bank.
Such a system usually includes the following liquidity ratios: the long-term, current and short-term liquidity.The liquidity indicators reflect the mobility of assets, liabilities, stability, consistency between the active and passive operations, the company's ability to fulfill its obligations.
in Russia as well as in other countries, introduced standards of liquidity balances.To assess the financial stability in addition to absolute indicators of solvency and liquidity are calculated and the relative liquidity of the organization.
basic liquidity indicators used in the Russian analysis:
- overall liquidity.On the basis of an overall assessment factor changing financial situation of the enterprise;
- cash ratio shows what proportion of short-term debt the company can repay the money in the near future;
- factor critical assessment shows what proportion of short-term liabilities, the company can immediately repay the funds placed in short-term securities paper, on various accounts, as well as due to the estimated receipts;
- current ratio reflects the company sufficient funds to pay off the current debts;
- maneuverability functioning capital ratio shows the proportion of a functioning capital immobilized in long-term receivables and inventories;
- interest in the assets of current assets depends on what industry supplies organization;
- a ratio of own funds of the enterprise reflect the presence of its working capital needed for its sustainability.
structure of economic indicators includes absolute and relative liquidity.Absolute figures are expressed in monetary or physical units, such as pieces, weight, volume, dollars, rubles.
Ratios - is the ratio of two different indicators, or of the same dimension.In the second case it is the dimensionless parameters describing ratio, proportion or rate of change of a particular economic value measured as a percentage or share basis.In the first case - the dimensional parameters that characterize the rate of change of a certain value in a specific period of time, the efficiency of use of resources as well as the sensitivity of a particular value relative to a factor that led to its change.
Overall liquidity indicators reflect the solvency of the company on its debt obligations.
