vast majority of enterprises in the course of its business is faced with the fact that they have formed certain debts to credit institutions, suppliers, government and other stakeholders.Part of the debt is long-term, usually long-term loans.However, much more short-term debt is formed, which the company must pay off in the near future.It is obvious that the organization must be a means for this, and should be sufficient.To assess the situation, that is, the availability and adequacy of certain assets to cover urgent debts, estimated liquidity of the company.Most often, for the analysis of a number of coefficients is calculated.A closer we look at the absolute liquidity ratio, while the remaining indicators will stop in less detail.
absolute liquidity ratio characterizes the extent to which special debts of the enterprise covered by the most liquid assets.In other words, this indicator indicates how much the firm commitment to repay immediately.In general, the liquidity ratio is determined by the quotient of liquid assets to current liabilities.If the calculation of the liquidity ratio to exclude the property as long as there will be only completely liquid assets, as a result we obtain the absolute liquidity ratio.
Standard value at this index can be called very conditional.The fact that businesses operating in developed economies, should cover about a quarter of its debt by available cash and liquid investments in the short term.However, domestic firms do not reach this figure is almost never being at about 0.1.
It should focus on what property is included in the ratio calculation.With money everything is clear, in any case they will be absolutely liquid.As for investments, it is not so obvious.For several reasons, certain investments may not be completely liquid, meaning that they can not be included in the calculation of the coefficient, since the company will not be able to return to their help-term debt.
This factor is extremely important practical significance.The fact that it links the short-term liabilities and that the property, due to which these obligations and will be covered.In other words, the lack of money the most direct evidence of the company's solvency problems.In addition, many banks allow for the absolute liquidity ratio when deciding on a loan, which can be important for the organization.
If the enterprise there is a lack of liquidity, it would have to raise funds.This means the implementation of a mobilization of the reserves formed.Of course, this is quite an extreme measure, but if they have to resort to it, it is advisable to calculate the liquidity ratio in mobilizing to estimate the proportion of debt that will be repaid at a given operation.
Note also the fact that the analysis of liquidity indicators are still counting the total and intermediate coating.The first describes the security term liabilities current assets, and the second - the same assets, but excluding inventory.
not enough just to calculate some of the liquidity ratios.It is necessary to define all of these indicators, and possible a few years, and then analyze the dynamics.Even if the rates are at a normal level, but have a negative trend, it is an occasion to reflect on the stabilization of the financial situation.
