Solvency of the enterprise - the main characteristic of which is responsible for cooperation with investors, banking institutions, lenders.After all, this indicator suggests the possibility of the organization to pay its debts.
solvency ratio (formula which has several variants), depending on the nature of the organization, calculated in several ways.Thus, for the calculation of this ratio in a manufacturing enterprise, there is one approach, and in the shopping - another.
solvency ratio (the formula for the production company)
This calculation can be done by having the entity's financial statements (balance sheet).The formula is quite simple and is calculated as the ratio of equity to liabilities on the balance sheet liability.
Equity in turn - a clean their own funds, which are involved in the business, net of accounts payable, short-term and long-term loans.
solvency ratio of the enterprise, the formula of which is shown above, also takes to the calculation of current and current assets.The main focus lies on current assets, because it is through them if necessary, you can pay off debt or pay for anything.
Example of calculation of this ratio
Having the balance sheet, we can immediately calculate the solvency ratio.The formula used is that shown in the article.These have the following:
The assets based on the following figures: the enterprise cash - 1 000, the current account balance - 10 000, items of stock in the amount of 10 000, production equipment - 100 000 rubles.Placing shops - 100 000 rubles.As a result, we have assets worth 221,000 rubles.
in passive balance: authorized capital - 100 000 rubles, term liabilities (such as calculation of the budget for salaries) - 40 000 rubles, short-term liabilities (loans up to one year) - 60 000 rubles, long-term liabilities - 21000.Balance sheet total - 221 000 rubles.
proceed to calculations: from balance sheet liabilities shows that the net worth of 100 000 rubles, all the rest - is the obligation of the enterprise.In this case, the calculation would be: 100 000/40 000 + 60 000 + 21 000 = 0.82.This suggests that his own money, we can only cover 82 percent of our commitments.
In practice, the approach to this factor more serious.Analysts focused primarily asset structure, because working capital is much easier to implement than the non-negotiable.
There is also the factor of loss of solvency, the formula of which is calculated by the dynamic changes in the solvency of several periods.This makes it possible to talk about the development of this indicator in the company during the reporting period.
Normative coefficients
brief look at the standard values which gives the solvency ratio.The formula calculates the standard value as a percentage.The rate for manufacturing companies is 0.5-0.8.If it is less dangerous to lend such an enterprise, there is a risk of non-payment of the loan.
for trading companies and organizations with high liquidity (travel agencies, companies that provide services, construction companies) in connection with the peculiarities of business this factor may be the norm within 0.1-0.5.
