Under the equity ratio (or financial independence) is commonly understood measure of the share of assets of an organization that provides its own means.The higher the score, the more stable the company is sustainable from a financial point of view and is virtually unaffected by the creditors.Consequently, the equity ratio shows the success of the entire organization.
In order to properly calculate the coefficient of autonomy is required to make in the first place the aggregated balance sheet based on an existing balance sheet.It is important to note that this kind of transformation within the balance does not violate the existing structure of assets and liabilities, moreover, they can combine according to the economic content of the article.
course, equity ratio can be calculated without having to compile the aggregated balance sheet form.On the other hand, in this case the need to increase the article "capital and reserves" in the adjacent value "prepaid expenses".
Using available data, the equity ratio is calculated by dividing shareholders' equity in the total assets of the existing organization.
In this case, under the own resources refers to all currently existing financial resources of the organization, which, in turn, usually composed of the founders, as well as directly from the financial activities of the organization.It is important to note that the balance sheet, they are usually included in the section entitled "Capital and reserves".
term "total assets" includes all property of the organization, including tangible and intangible assets.Total assets are the result of the balance sheet.
autonomy ratio is measured solely in shares.In this case, the critical value is normative 0.5-0.7 (but in the world to 0.3).According to experts, quite appropriate to consider this indicator over time.Thus, a constant growth rate over time indicates the stability of the organization, gradually increasing its independence in relation to external creditors.
autonomy ratio primarily plays an important role for potential investors and lenders.The higher the index, the lower the risk of possible losses from investors.
The more specific organization share of so-called non-current assets require more long-term sources of funding for future, therefore, the share of equity capital should be higher, respectively, and the higher the ratio of financial autonomy.
important to note that there are other factors and indicators (coefficient of maneuverability equity ratio of the concentration of capital, the ratio of long-term attraction of financial loans, etc.), thanks to which you can also judge the financial sustainability and independence of any enterprise.
