for a more stable and efficient operation of the enterprise is necessary to analyze the state of its work.Financial ratios obtained as a result of the study, help to find the weak links in the activity of the organization and allow us to determine the benefits of its actions.It is these data provide a comprehensive picture of the state of affairs in the company.
Financial (position) of the enterprise depends primarily on the ratio of debt to equity.In this connection, define:
- ratio (level) Financial autonomy - with the calculated share of equity in the total amount of money the organization;
- ratio (level) of financial dependence - is in question here about what share of the total amount of cash the company takes attracted (borrowed) capital.The index can be calculated in the context of the time frame.That is permissible and possible to determine the index based on the long or short term borrowed funds;
- level (coefficient) of financial risk, also known as the shoulder of financial leverage - here is the ratio of debt to equity.However, there is another name for this index - ratio of financial activity.
Accordingly, the higher the value of the first proportion, the better and more stable financial condition (position) of the enterprise, if we consider it from the point of view of credit debt and equity.In an ideal system the weight of this indicator should strive for unity.
To determine the profitability of raising funds and capital by using another indicator - a leverage effect.This index shows how to grow the return on equity of the enterprise, if they get loans.
Financial ratios, exactly reflecting the situation at the plant - is solvency ratios.To say in simple words, these data show how likely now repay its short-term debts.
solvency assessment conducted on the basis of data on the liquidity of its current assets - repayment capacity for loans and debts with the help of the company's assets.
In this analysis, the following financial ratios:
- current liquidity - also called index covering.It describes the organization's ability to repay short-term credit obligations of their own existing current assets;
- intermediate (quick) liquidity - shows how a possible repayment of its liabilities term assets (cash funds on operational accounts of the stocks in the warehouses, short-term debt receivable);
- absolute liquidity - the total value of this index describes how likely pay for short-term credit loans at the expense of funds placed on the account of the company, and other investments posted a short period.
These financial ratios - the most important in the calculation of the solvency and financial condition (state) enterprises.
