Liquidity - one of the indicators of the company's solvency.There are three types of liquidity: current, rapid, instantaneous.Next, consider what they say these figures as they are calculated.
overall liquidity ratio explains how quickly the organization is able to pay off current liabilities.This indicator provides an estimate of approximately how many rubles of assets per ruble of current liabilities.Each company repays short-term payments, primarily current assets.Thus, if the ratio of the total liquidity to be greater than 1, it means that the organization is fully repay current payments current assets, and its work is effective.It saves the organization's current assets in the event of any unforeseen circumstances that cause expenses.Liquidity indicator can be applied not only in relation to a particular company, but also to the precious metals, securities, real estate, equipment, etc.
formula by which the factor is determined: (total current assets, accounts receivable and payable founders of contributions) / current liabilities.
high coefficient of overall liquidity helps an organization to obtain short-term loans, as the lenders are required to look at this figure.If it is high enough, the company has less risk to make arrears or does not pay to take the money to the lender.In the case in which the overall liquidity is low (less than 1), the organization is experiencing difficulty in repayment of current liabilities.It follows that financiers need to analyze the cash flow of the organization.So, for example, fast-food, retail trade, characterized by high turnover of cash.And the ratio of total liquidity at the same time is low.If this ratio is too high, it means that the company is not enough to effectively use current assets and short-term financing.Although lenders regard the importance of the liquidity ratio as a stable position on a market.
Quick ratio indicates the degree of financial stability in the short period.Call it as a strict liquidity ratios, the liquidity emergency, interim liquidity.This figure is calculated as: (the difference between current assets and inventory) / current liabilities.
This figure is more stringent than the current liquidity.He points to the solvency of the organization fast and says how soon its liquid funds can cover short-term debt.It is recommended that this component be within the range 0.7 - 1.5.
instant liquidity ratio indicates how the organization is able to cover short-term payments through cash.Here are taken into account and short-term investments.Calculate the ratio of the formula: (total cash and short-term investments) / Current liabilities - (sum of future earnings, reserves for future payments).
This rate indicates what percentage of accounts payable may be repaid organization immediately.If the analysis of the enterprise financier receives coefficient greater than 0.2, then the company can repay its commitments in the short term.In the case of instant liquidity ratio lower than 0.2, the company runs the risk of not cope with short-term credit debt.
financial manager of the organization should continuously review the situation and assess the liquidity of the company.This will help in time to take steps to improve its solvency.
