Towards Autonomy = p. 1300 / p. 1700
Here, the value of the indicator – ≥ 0.5 – indicates indonesia mobile phone numbers database that the company can cancel debt obligations on its own, as well as its reliability.
Independence coefficient
Total solvency ratio
It can be used to analyze the extent to which the assets owned by the organization are suitable for paying off existing debts.
K(total payment) = line 1300 / (line 1520 + line 1510 + line 1550 + line 1400)
The most appropriate value here is 2. This means that the company can easily get rid of the debt using its own assets.
For a correct analysis of solvency, three liquidity indicators are used.
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Quick ratio
It shows the ability of a company to repay existing loans by using the most liquid assets.
K (average sheet) = (p. 1230 + p. 1240 + p. 1250 + p. 1260) / (p. 1500 – p. 1530 + p. 1540)
The most effective indicator is from 0.8 to 1, which reflects the ability to quickly cover short-term liabilities. In addition, it is recommended to take into account what assets consist of. They should not consist only of accounts receivable, because it often takes time to pay them off.
Current liquidity ratio
Shows the extent to which the company's current assets are able to cover short-term debts. Current assets are those that are used in production or purchased for further sale. For example, raw materials or semi-finished products for subsequent processing. This also includes currency, shares, bonds, and accounts receivable. When studying the balance sheet, you can see that these indicators are reflected in line 1200.
K (current l.) = (1200 + page 1170) / (page 1500 – page 1530 + page 1540)
The best value here is 1-2. If the indicator does not even reach one, the verdict is one: the company cannot pay off its debts on time.
Current liquidity ratio
Absolute liquidity ratio
Used to show whether an organization is able to pay short-term liabilities with highly liquid assets.
K (abs. l.) = (page 1240 + 1250) / (page 1510 + page 1520 + page 1550)
With a liquidity ratio of 0.2, it becomes clear that the company can easily close 20% of its debts in a short period of time.
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Example of analysis of the solvency of the enterprise
To calculate a company's solvency, the easiest way is to use a certain principle, which includes three complex steps.
Finding the necessary indicators in the company's balance sheet
After that, it is necessary to distribute assets by liquidity, and liabilities by maturity.
For example, let's take a company engaged in wholesale distribution of various products. The company has two trucks at its disposal, acquired on lease. The goods are waiting to be sold in warehouses.
The company's scheme of work with suppliers of goods is prepayment. The list of its debt obligations includes a short-term loan, the repayment period of which is one year. In addition, the company has a short-term lease with a term of one year and a long-term lease, the repayment period of which is more than one year.
Indicators Meaning What group of assets and liabilities does it belong to?
Money in the account and in the cash register 6,570,000 rubles A1
Prepayment of suppliers, customer accounts payable for goods 109,123,000 rubles A2
Finished goods in stock 186,312,000 rubles A3
Trucks 7,695,000 rubles A1
Taxes, employee salaries, rent and utility bills 2,329,000 rubles P1
Short-term working capital, prepayment from customers for goods, short-term lease, overdraft 225,742,000 rubles P2
Long term leasing 797,000 rubles P3
Equity capital 81,000,000 rubles P4
Conducting an analysis of the ratio of asset and liability groups
Ratio Conclusion
A1 > P1 6,570,000 rubles > 2,329,000 rubles The company has enough funds to pay taxes, transfer salaries to employees and cover other needs.
A2 < P2 103,123,000 rubles < 225,742,000 rubles If there is a delay in payment for goods from customers, the company may have problems transferring money to suppliers on time.
A3 > P3 186,312,000 rubles > 797,000 rubles Payment of all long-term obligations is possible only on condition of sale of all available goods.
A4 < P4 7,695,000 rubles < 81,000,000 rubles The company has a lot of property at its disposal. But there is more money in its accounts than any real estate. This means that the company's liquidity is normal, therefore, the organization will have a good reputation and a good chance of getting a loan, which it will be able to repay soon.
Judging by the ratio of assets and liabilities of the enterprise, the only possible problem in its work is a shortage of funds that can be spent on paying off the debt. But if the enterprise has a lot of goods and resources on its balance sheet, there will be no particular difficulties in paying off the debt.
Calculation of the enterprise liquidity ratio
The conclusions are as follows. When calculating the balance sheet liquidity, as well as the current liquidity ratio, it can be seen that the company is quite capable of paying off its loan obligations.
