The results of the company's liquidity analysis are of interest primarily to commercial creditors. Because commercial loans short-term, then it is liquidity analysis that best assesses the company's ability to pay these obligations.

A general indicator of liquidity is the sufficiency (excess or deficiency) of sources of funds for the formation of reserves. The point of analysis using absolute indicators is to check which sources of funds and in what volume are used to cover inventories.

The need to analyze balance sheet liquidity arises in market conditions due to increasing financial restrictions and the need to assess the creditworthiness of an enterprise. Balance sheet liquidity is defined as the degree to which an enterprise's liabilities are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of liabilities. Asset liquidity is the reciprocal value of balance sheet liquidity based on the time of transformation of assets into cash. The less time it takes for a given type of asset to acquire a monetary form, the higher its liquidity. Analysis of balance sheet liquidity consists of comparing funds for assets, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liabilities for liabilities, grouped by their maturity dates and arranged in ascending order of maturity. The groupings below are made in relation to the balance sheet.

Depending on the degree of liquidity, i.e. the speed of conversion into cash, the assets of the enterprise are divided into the following groups:

The most liquid assets (A1) are funds whose conversion into cash does not exceed three months. These include cash (page 260 of the balance sheet) and short-term financial investments (page 250).

Quickly realizable assets (A2) are funds whose conversion into cash is from three to six months. These include accounts receivable, payments for which are expected within 12 months after the reporting date (line 240 of the balance sheet).

Slowly realizable assets (A3) are funds whose transformation into cash takes from six months to a year. These include inventories and expenses (pages 210 + 220), accounts receivable for which payments are expected more than twelve months after the reporting date (page 230) and other current assets (page 270).

Hard-to-sell assets (A4) are funds whose conversion into cash takes more than a year. These include non-current assets (page 190 of the balance sheet).

Accordingly, items on the liability side of the balance sheet are grouped according to the maturity dates of the liabilities.

The most urgent obligations (P1) are obligations whose repayment period is up to three months. These include accounts payable (line 620 of the balance sheet).

Current liabilities (P2) are liabilities whose maturity is from three to six months. These include loans and credits (line 610 of the balance sheet) and other short-term liabilities (line 660).

Long-term liabilities (P3) are liabilities whose maturity is from six months to a year. These include long-term liabilities (line 590 of the balance sheet), debt to participants (founders) for payment of income (line 630), deferred income (line 640) and reserves upcoming expenses(p. 650).

Stable (permanent) liabilities (P4). These include capital and reserves (page 490 of the balance sheet).

A firm is considered liquid if its current assets exceed its current liabilities, the firm may be more or less liquid. A firm whose working capital consists primarily of cash and short-term accounts receivable is generally considered more liquid than a firm whose working capital consists primarily of inventory. To check the real degree of liquidity of the company, it is necessary to analyze the liquidity of the balance sheet.

BALANCE SHEET LIQUIDITY

To determine the liquidity of the balance sheet, you should compare the results of the given groups for assets and liabilities. The balance is considered absolutely liquid if the following relationships exist:

A 1 > P 1 ,; A 2 > P 2 ; A 3 > P 3; A 4< П 4 .

The fulfillment of the first three inequalities necessarily entails the fulfillment of the fourth inequality, therefore, it is practically essential to compare the results of the first three groups for assets and liabilities. The fourth inequality is of a “balancing” nature, and at the same time it has a deep economic meaning: its fulfillment indicates compliance with the minimum condition financial stability- the company has its own working capital.

In the case when one or more inequalities have a sign opposite to that fixed in optimal option, balance sheet liquidity differs to a greater or lesser extent from absolute. In this case, the lack of funds in one group of assets is compensated by their surplus in another group, although compensation in this case takes place only in value, since in a real payment situation less liquid assets cannot replace more liquid ones.

Comparison of the most liquid funds and quickly realizable assets with the most urgent obligations and short-term liabilities allows you to find out current liquidity. Comparison of slowly selling assets with long-term and medium-term liabilities reflects promising liquidity. Current liquidity indicates the solvency (or insolvency) of the enterprise for the period of time closest to the moment under consideration.

Prospective liquidity is a forecast of solvency based on a comparison of future receipts and payments (of which, of course, only a part is represented in the corresponding groups of assets and liabilities, so the forecast is quite approximate).

The analysis of balance sheet liquidity carried out according to the above scheme is approximate for the reason that the correspondence between the degree of liquidity of assets and the maturity dates of liabilities in liabilities is outlined approximately. This is due to the limited information available to the analyst conducting external analysis based on financial statements. Therefore, to clarify the results of the analysis, special methods are required that correct the indicators of the presented methodology. In the 1920s, the method of discount standards was used in analytical practice. Through discount standards, the values ​​of balance sheet items were redistributed between groups of assets and liabilities in accordance with average statistical estimates of the liquidity of assets and the maturity of liabilities.

Comparison of the results of the first group by asset and liability, i.e. A 1 and P 1; (terms up to 3 months), reflects the ratio of current payments and receipts.

Comparison of the results of the second group for assets and liabilities, i.e. A 2 and P 2 (terms from 3 to 6 months), shows a trend of increasing or decreasing current liquidity in the near future. A comparison of the totals for assets and liabilities for the third and fourth groups reflects the ratio of payments and receipts in the relatively distant future. The analysis carried out according to this scheme fairly fully represents the financial situation from the point of view of the possibility of timely settlements. The form of the aggregated analytical liquidity balance is presented in the table

The form of the aggregated analytical liquidity balance is presented in the table “Aggregated analytical balance”

Aggregated analytical balance
Assets	For the beginning of the year	At the end of the year	Passive	For the beginning of the year	At the end of the year	Surplus (deficiency)
						for the beginning of the year	at the end of the year
Most liquid assets (A1)			Most urgent obligations (P1)
Quickly realizable assets (A2)			Current liabilities (P2)
Slowly selling assets (A3)			Long-term liabilities (P3)
Total current liquid assets	108 492	100 825	Total payments	198 974	322 869
Hard to sell assets (A4)			Stable liabilities (P4)
Balance	697 245	892 493	Balance		892 493

A 1< П 1 , А 2 >P 2, A 3< П 3 , А 4 >P 4.

Based on the data given in the “Aggregated Analytical Balance” table, we can conclude:

the organization is insolvent for the most urgent (current) payments, the repayment period of which is up to three months;

solvent in the short term from three to six months, as it will be able to pay off its short-term obligations;

insolvent in the distant future from six months to a year.

The last inequality indicates that the organization is financially unstable. In other words, in critical situations, its own sources of formation of inventories may not be enough and the organization will be forced to use borrowed funds.

To assess the level of the organization's paying capacity in this case, it is necessary to check whether the most liquid, quickly sold and slowly sold assets are sufficient to pay off the most urgent and short-term obligations.

Analysis of the table “Aggregated analytical balance” shows that the analyzed RUES does not have enough assets to cover payments (A1 + A2 + A3 > P1 + P2): 108,492< 198 974 на начало года; 100 825 < 322 869 на конец года. Кроме того, существенно не хватает и средств для покрытия наиболее срочных платежей.

A comparison of liquid funds and liabilities allows us to calculate the following indicators.

1 General liquidity indicator (L To ). Gives a general comprehensive assessment of the liquidity of the balance sheet and the payment ability of the organization. Shows what part of all current liabilities, half short-term liabilities and one third of long-term liabilities can be repaid by the organization at the expense of all the most liquid assets, half of quickly sold assets and one third of slowly sold assets. Calculated using the formula

The value of this indicator at the absolute level of payment ability must be greater than or equal to one (L k ≥ 1).

2 Absolute liquidity ratio (L A ). Shows what part of the most urgent and short-term debt the organization can repay in the near future using cash. Characterizes the payment ability of the organization as of the balance sheet date. Defined as the ratio of cash and short-term securities to the most urgent and short-term liabilities.

Acceptable value is from 0.2 to 0.7 (L a = 0.2 ÷ 0.7).

This indicator is widely used by suppliers of material resources to assess the payment ability of an organization

3 Quick liquidity ratio or the so-called critical assessment, or intermediate liquidity (Lk). Shows what part of the organization’s short-term obligations can be repaid using funds in various accounts, short-term securities, as well as proceeds from settlements with consumers and customers. Characterizes the expected payment capabilities of the organization for a period equal to the average duration of one turnover of a short-term accounts receivable, subject to timely settlements with debtors. It is calculated as the ratio of cash and short-term securities, as well as the amount of funds raised in settlements with debtors to the most urgent and short-term obligations.

The normatively permissible value is equal to one or higher (L to ≥ 1). Low values ​​indicate the need for constant work with debtors to ensure the possibility of circulation of the most liquid part working capital in cash for settlements with their suppliers.

This indicator is widely used by shareholders to assess the payment ability of an organization

4 Current ratio or total coverage ratio (L tl). Shows what part of current obligations on loans and settlements can be repaid by mobilizing all working capital. Characterizes the sufficiency of the organization's working capital, which can be used by it to pay off its most urgent and short-term obligations. In general, this ratio shows the payment capabilities of the organization, assessed subject to not only timely settlements with debtors and favorable sales finished products, but also sales in case of need of other elements of material working capital. Defined as the ratio of current assets (current assets) to current liabilities (short-term liabilities).

The standard value of the current liquidity ratio is two (L tl = 2). The lower limit of the current liquidity ratio is equal to one. The lower limit is due to the fact that working capital must be sufficient to cover its short-term obligations. An excess of current assets over short-term liabilities by more than twice is also considered undesirable, since it indicates an irrational investment by the organization of its funds and their ineffective use.

The current liquidity ratio is the main indicator of solvency, which is used not only by external, but also mainly by internal users of economic analysis. It determines the expected paying capacity of the organization for a period equal to the average duration of one turnover of all current assets.

5 Liquidity ratio when raising funds, that is, the mobile liquidity ratio (L ml). It shows what part of the most urgent and short-term obligations the organization can pay off by selling inventory items. Characterizes the degree of dependence of the organization's paying ability on inventories and costs from the point of view of the need to mobilize funds to pay off its most urgent and short-term obligations. It is determined by the ratio of inventories and costs, as well as long-term accounts receivable to the amount of the most urgent and short-term obligations.

The standard value of the mobile liquidity ratio ranges from 0.5 to 0.7 (K ml = 0.5 ÷ 0.7).

The mobile liquidity ratio characterizes the payment ability of an organization in the long term.

6 Operating capital maneuverability coefficient (L m ). Shows what part of the operating capital is immobilized in inventories and long-term receivables. It is determined by the ratio of inventories and costs, as well as long-term accounts receivable to the difference between current assets and the most urgent and short-term liabilities.

A decrease in the value of this indicator over time indicates an increase in the maneuverability of operating capital and is a positive fact.

7 Share of working capital in assets (d that ). Shows specific gravity current assets in total assets. Determined by the ratio of current assets in the organization's property.

, (8.11) where ВБ – balance sheet currency, thousand rubles.

The absolute value of this indicator depends on the industry sector of the organization. It is advisable to study this indicator in comparison with the indicator characterizing the share of short-term liabilities in the total capital. A decrease in the level of this indicator over time with an increase in the share of short-term liabilities indicates a deterioration in the payment ability of the organization.

The calculation of these coefficients is necessary not only for a comprehensive characterization of the organization’s paying ability, but also for various external users of analytical information. Thus, for suppliers of raw materials and materials, the current liquidity ratio is most interesting. The bank lending to this organization pays great attention to the critical liquidity ratio. Buyers and holders of shares and bonds of an enterprise largely evaluate the payment ability of the organization by the current liquidity ratio. Organizations providing long-term loans are more interested in liquidity ratios, which characterize the future payment ability. Organizations providing short-term loans and loans for replenishment of inventories, are more interested in liquidity ratios that characterize current or urgent payment ability.

These ratios reflect a certain aspect of the organization’s paying ability and are only indicative indicators financial situation organizations. However, with their help, it is possible to identify the main factors influencing the payment ability of the organization and determine the main directions for its improvement.

We summarize the calculated coefficients in an analytical table of the form table “Enterprise liquidity ratios”

In the course of research, first of all, the absolute level of these indicators at the beginning and end of the year is assessed. To do this, the actual values ​​of the coefficients are compared with standard values ​​and with each other. The positive aspects and disadvantages of various elements of the organization's paying ability are identified.

Enterprise liquidity ratios

in fractions of a unit

The name of indicators	Normative value	For the beginning of the year	At the end of the year	Change, ±
1 General liquidity indicator
2 Absolute liquidity ratio	0.2 ÷ 0.7
3 Intermediate liquidity ratio
4 Current ratio
5 Mobile liquidity ratio	0.5 ÷0.7
6 Operating capital maneuverability ratio
7 Share of working capital in assets
8 Share of short-term liabilities in capital

The data in the table “Enterprise Liquidity Ratios” show that, in general, the payment ability of the organization is unsatisfactory. The overall liquidity ratio is below the standard level and by the end of the year decreased to 0.45 (with the standard level being more than 1).

The absolute liquidity ratio is within normal limits. This means that at the time of reporting, the organization can pay off its short-term liabilities.

Indicators for mutual settlements with suppliers and contractors are deteriorating - this is evidenced by a decrease in the intermediate liquidity ratio. This means that the organization will reduce its solvency in the near future.

By the end of the year, the current liquidity ratio decreased by 0.32 and amounted to 4.22. This means that in the long term the payment ability of the organization is maintained.

The share of short-term liabilities in capital is 36%, or for every ruble of short-term liabilities there is only 0.36 rubles. inventories that, after sale, can be used to pay current obligations. General conclusion: the solvency of the enterprise is low, the enterprise is close to insolvency.

Liquidity analysis

Liquidity - mobility of assets of enterprises, firms, banks, suggesting the possibility of uninterrupted payment on time of credit and financial obligations and legal monetary claims. Distinguish liquidity banks, firms, liquid assets, liquid funds. To determine the degree liquidity many countries use coefficient systems liquidity as the ratio of certain asset and liability items, regulations are developed and approved that require maintaining the established level of these ratios. Liquidity firm - the ratio of its debt and liquid funds, i.e. those funds that can be used to pay off the debt: cash, bank deposits, salable elements of working capital, etc. There is a classification of funds and financial assets by degree liquidity, i.e. by the speed and ease of their conversion into cash or other acceptable means of payment; the higher the degree liquidity, the lower the return on a given asset, as a rule, and vice versa.

Liquidity of a business entity can be found out by its balance. This means, in essence, the liquidity of the balance sheet of the enterprise under study will mean the liquidity of the entire enterprise as a whole.

Liquidity of the enterprise's balance sheet- the degree to which the enterprise’s liabilities are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of obligations. Liquidity is determined by the ratio of the amount of debt and liquid funds at the disposal of the enterprise. Liquid means are those funds that can be used to pay off debts (cash on hand, deposits deposited in bank accounts, securities, sold elements of working capital, such as: fuel, raw materials, etc.).

The task of analyzing balance sheet liquidity arises in connection with the need to assess the solvency of the organization, i.e. its ability to timely and fully pay all its obligations. Liquidity means the unconditional solvency of the enterprise and presupposes constant equality between assets and liabilities, both in total amount and in terms of maturity.

Balance sheet liquidity analysis consists in comparing funds by asset, grouped by the degree of their liquidity and arranged in descending order of liquidity, with liabilities for liabilities, grouped by their maturity dates.

Depending on the degree of liquidity, i.e. the rate of conversion into cash, the assets of the enterprise are divided into the following groups.

A1.Most liquid assets - To This includes all items of the enterprise's funds and short-term financial investments (securities). This group is calculated as follows:

A1 = Financial investments + Cash

or page 1240 + page 1250.

A2.Quickly realizable assets - accounts receivable.

A2 = Accounts receivable or line 1230.

AZ.Slow moving assets - items in section II of the balance sheet assets, including inventories, value added tax, accounts receivable (payments for which are expected more than 12 months after the reporting date) and other current assets.

AZ = Inventories + Long-term accounts receivable + VAT + Other current assets.

or page 1210 + 1 page. 220 + page 1260

A4.Hard to sell assets - Articles in section 1 of the balance sheet asset - non-current assets.

A4 = Non-current assets or page 1110.

Balance sheet liabilities are grouped according to the degree of urgency of payment.

P1.Most urgent obligations - To applies to him accounts payable.

P1 = Accounts payable or page 1520.

P2. Short-term liabilities - These are short-term borrowed funds, debt to participants for payment of income, and other short-term liabilities.

P2 = Short-term borrowed funds + Other short-term liabilities

or page 1510 + page 1550.

PZ.Long-term liabilities - these are balance sheet items related to sections IV and V, i.e. long-term loans and borrowed funds, as well as deferred income, reserves for future expenses and payments.

PL = Long-term liabilities + Deferred income + Estimated liabilities

or page 1400 + page 1530 + page 1540.

P4.Permanent liabilities or stable - These are articles in section III of the balance sheet “Capital and reserves”.

P4 = Capital and reserves (organization’s own capital)

or page 1300.

To determine the liquidity of the balance sheet, you should compare the results of the given groups for assets and liabilities.

Balance is considered absolutely liquid, if the following relations hold:

Tcurrent liquidity indicates the solvency (+) or insolvency (-) of the organization at the nearest period of time at the moment in question:

TL = (Al + A2) - (P1 + P2);

Pprospective liquidity - This is a forecast of solvency based on a comparison of future receipts and payments:

PL = A3 - PZ.

Let's consider the main types of possible situations.

1. A1 > P1; A2 > P2; A3 > PZ; A4< П4; А1 >P1; A2< П2; A3 >PZ; A4< П4 при (А1+А2)>(P1+P2).

Normal, reliable solvency and financial stability of the organization.

2. A1 > P1; A2< П2; A3 >PZ; A4< П4 при (А1+А2)<(Ш + П2) или А1>P1;A2<П2;АЗ<ПЗ; А4<П4 при (А1+А2)>(P1 + P2).

There is occasional insolvency and financial instability of the enterprise.

3. A1 > Ш; A2< П2; A3 < ПЗ; А4 < П4 при (А1 +А2)<(П1 + П2) или А1< П1; А2 >P2; A3< ПЗ; А4 >P4 at (A1 + A2)<(Ш + П2).

There is an increase in insolvency and financial instability of the enterprise.

4. A1< П1; А2 < П2; A3 >PZ; A4 > P4 (A4< П4).

There is chronic insolvency and financial instability of the enterprise.

5. A1< П1; А2 < П2; A3 < ПЗ; А4 >P4.

There is a crisis financial condition of the enterprise, close to bankruptcy.

Comparison of liquid funds and liabilities allows you to calculate relative indicators. These indicators are the liquidity ratios of an enterprise. These ratios allow us to determine the company's ability to pay its short-term obligations during the reporting period. The most important among them from the point of view of financial management are the following:

General (current) liquidity ratio;

Quick liquidity ratio;

Absolute liquidity ratio;

Own working capital.

Total (current) liquidity ratio. Gives a general assessment of asset liquidity, showing how many rubles of current assets account for one ruble of current liabilities. The logic for calculating this indicator is that the company pays off short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities, the enterprise can be considered to be operating successfully (at least in theory).

Total (current) liquidity ratio is calculated as the quotient of current assets divided by short-term liabilities and shows whether the enterprise has enough funds that can be used to pay off its short-term liabilities within a certain period. According to generally accepted international standards, it is believed that this coefficient should be in the range from one to two. The lower limit is due to the fact that working capital must be at least sufficient to pay off short-term obligations, otherwise the company will be at risk of bankruptcy. An excess of current assets over short-term liabilities by more than two (three) times is also considered undesirable, since it may indicate an irrational capital structure. The value of the indicator can vary by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend.

To tl = Working capital/Short-term liabilities =

Page 1200/page 1500 – (1530+1540+1430+1550)

Next on our list is urgent (quick) liquidity ratio, revealing the ratio of the most liquid part of working capital (cash, short-term financial investments and accounts receivable) to short-term liabilities. The indicator is similar to the current ratio; however, it is calculated over a narrower range of current assets. The least liquid part of them is excluded from the calculation - productive reserves. The logic of such an exception consists not only in the significantly lower liquidity of inventories, but, what is much more important, in the fact that the funds that can be gained in the event of a forced sale of inventories can be significantly lower than the costs of their acquisition.

According to international standards, the level of the quick liquidity ratio should be above one. In Russia, its optimal value is defined as 0.7 - 0.8. The need to calculate this ratio is due to the fact that the liquidity of individual categories of working capital is far from the same. It is also necessary to take into account the peculiarities of using this indicator in Russia, in our market conditions. The fact is that, as follows from the description of the formula, the most liquid working capital here includes not only cash, but also short-term securities and accounts receivable. In a developed market economy, this approach is completely justified: short-term securities, by definition, are highly liquid funds; accounts receivable, firstly, are assessed minus potential doubtful debts, that is, only those debtors who are one hundred percent able to pay their debt to our company are taken into account. Secondly, an enterprise in a developed market economy has whole line legally regulated possibilities by which it can collect debts from its client. It is obvious that such conditions do not exist in the Russian economy. When analyzing the dynamics of this coefficient, it is necessary to pay attention to the factors that determined its change. Thus, if the increase in the quick liquidity ratio was mainly associated with an increase in unjustified accounts receivable, then this cannot characterize the activity of the enterprise from a positive side.

K sl = (Cash + Short-term financial investments + Accounts receivable) / Current liabilities =

Page 1260 + page 1240 + page 1230/page 1500

Based on the above, in the practice of Russian financial management, the quick liquidity ratio is rarely calculated. Most often used absolute liquidity ratio, that is, the liquidity of an enterprise is assessed by the indicator of cash, which, as we know, has absolute liquidity. The optimal level of this coefficient in Russia is considered to be 0.2 – 0.25. The absolute liquidity (solvency) ratio is the most stringent criterion for the liquidity of an enterprise and shows what part of short-term borrowed obligations can be repaid immediately if necessary. Since the development of industry standards for these coefficients is a matter of the future, in practice it is desirable to carry out an analysis of the dynamics of these indicators, supplementing it with a comparative analysis of available data on enterprises that have a similar orientation of their economic activity.

Cal = Cash/Current Liabilities = Page 1250/ page 1500

An important indicator in the study and analysis of the liquidity of an enterprise is own working capital, the value of which is the difference between the company’s current assets and its short-term liabilities.

SOS = Working capital – Short-term liabilities =

Page 1200 – p.1500

The amount of own working capital characterizes that part equity enterprise, which is the source of coverage for its current assets (i.e. assets with a turnover of less than one year). This calculated indicator depends both on the structure of assets and on the structure of sources of funds. Other than that equal conditions the growth of this indicator over time is considered a positive trend. The main and constant source of increasing equity is profit. It is necessary to distinguish between “working capital” and “own working capital”. The first indicator characterizes the assets of the enterprise (Section II of the assets of the balance sheet), the second - the sources of funds, namely the part of the enterprise's own capital, considered as a source of covering current assets. The amount of own working capital is numerically equal to the excess of current assets over current liabilities. A situation is possible when the value of current liabilities exceeds the value of current assets. The financial position of the enterprise in this case is considered as unstable; immediate measures are required to correct it.

Own working capital gives the company greater self-confidence. After all, it is he who helps the enterprise out in the most varied manifestations of the negative aspects of the market. For example: in case of delay in repayment of accounts receivable or difficulties with sales of products, depreciation or loss of working capital. The financial position of an enterprise is negatively affected by both a lack and a surplus of net working capital.

The lack of these funds can lead the company to bankruptcy, since it indicates its inability to repay short-term obligations in a timely manner. The deficiency may be caused by losses in business activities, an increase in bad accounts receivable, the acquisition of expensive fixed assets without prior accumulation of funds for these purposes, the payment of dividends in the absence of corresponding profits, and financial unpreparedness to repay the enterprise's long-term obligations. A significant excess of net working capital over the optimal need for it indicates inefficient use of resources. Examples are: issuing shares or receiving loans without a real need for them for the economic activities of the enterprise, irrational use of profits from economic activities.

The balance sheet liquidity analysis carried out according to the above scheme is approximate. A more detailed analysis of solvency using financial ratios.

The degree to which an enterprise's liabilities are covered by its assets, the period of conversion of which into money corresponds to the period of repayment of obligations. Balance sheet liquidity is achieved by establishing equality between the enterprise's liabilities and its assets.
The liquidity of the enterprise is reflected by financial ratios:
absolute liquidity (liquidity level 1) is calculated as the ratio of the amount of cash and short-term financial investments to short-term debt obligations; shows which part current debt can be repaid as soon as possible before the balance sheet is drawn up;
liquidity (liquidity level 2) is defined as the ratio of cash, short-term financial investments and accounts receivable to short-term debt obligations;
coverage, or current liquidity (liquidity level 3), is calculated as the ratio of all working capital (minus deferred expenses) to the amount of current liabilities (the sum of accounts payable and short-term loans); shows the extent to which current assets cover short-term liabilities.
An analysis of the main performance indicators and investment processes at an enterprise will be incomplete without calculating the payback period of investments (t) aimed at developing the enterprise or preventing a crisis.
The calculation is carried out according to the formula
t = A Z / A P,
where АЗ - additional costs (investments) for the implementation of a management decision or business plan; А P - additional profit received as a result of investment.
In market conditions, additional investment of funds for the implementation of business plans is considered effective ( investment projects) and other events for a period not exceeding three years. This is due to the dynamism of processes in the global market, due to the impact of scientific and technological progress, increasing competition and other factors.

More on the topic Balance sheet liquidity:

1. What ratios characterize balance sheet liquidity?
2. The concept of liquidity and factors determining its level

9.7.1. Assessment of solvency based on enterprise liquidity indicators

One of the indicators characterizing the financial position of the Enterprise is its solvency, i.e. the ability to timely repay your payment obligations with cash resources.

The assessment of solvency on the balance sheet is carried out on the basis of liquidity characteristics current assets, which is determined by the time required to convert them into cash. The less time it takes to collect a given asset, the higher its liquidity. Balance sheet liquidity is the ability of a business entity to convert assets into cash and pay off its payment obligations, or more precisely, it is the degree to which the enterprise’s debt obligations are covered by its assets, the period of conversion of which into cash corresponds to the period of repayment of payment obligations. It depends on the degree of correspondence between the amount of available means of payment and the amount of short-term debt obligations.

Liquidity of an enterprise is a more general concept than balance sheet liquidity. Balance sheet liquidity involves finding means of payment only from internal sources (sale of assets). But an enterprise can attract borrowed funds from outside if it has an appropriate image in the business world and is sufficiently high level investment attractiveness.

The concepts of solvency and liquidity are very close, but the second is more capacious. Solvency depends on the degree of liquidity of the balance sheet and the enterprise. At the same time, liquidity characterizes both the current state of settlements and the future. An enterprise may be solvent at the reporting date, but at the same time have unfavorable opportunities in the future, and vice versa.

In the economic literature, the concepts of liquidity of total assets are distinguished as the possibility of their rapid sale in the event of bankruptcy and self-liquidation of an enterprise and the liquidity of current assets, ensuring its current solvency.

In Fig. Figure 9.10 shows a flow diagram reflecting the relationship between the solvency, liquidity of the enterprise and the liquidity of the balance sheet, which can be compared with a multi-storey building in which all floors are equal, but the second floor cannot be built without the first, and the third - without the first and second; If the first floor collapses, then the rest will too. Consequently, balance sheet liquidity is the basis (foundation) of the solvency and liquidity of the enterprise. In other words, liquidity is a way to maintain solvency. But at the same time, if a company has a high image and is constantly solvent, it is easier for it to maintain its liquidity.

Analysis of balance sheet liquidity consists of comparing funds for an asset, grouped by the degree of decreasing liquidity (Table 9.28), with short-term liabilities for a liability, which are grouped according to the degree of urgency of their repayment

First group (A1) includes completely liquid assets, such as cash and short-term financial investments.

Second group (A2)- These are quickly realizable assets: finished products, shipped goods and accounts receivable. The liquidity of this group of current assets depends on the timeliness of shipment of products, execution of bank documents, speed of payment document flow in banks, demand for products, their competitiveness, solvency of buyers, payment forms, etc.

Third group (Az)- these are slowly realizable assets (inventories, work in progress, deferred expenses). It will take much longer to convert them into finished products and then into cash.

Fourth group (A4)- these are difficult to sell assets: fixed assets, intangible assets, long-term financial investments, unfinished construction.

Accordingly, the enterprise’s obligations are divided into four groups:

P 1 - the most urgent obligations that must be repaid within a month (accounts payable and bank loans that are due for repayment, overdue payments);

P 2 - medium-term liabilities with a maturity of up to one year (short-term bank loans);
P 3 - long-term bank loans and loans;
P 4 - own (share) capital, which is constantly at the disposal of the enterprise.
The balance is considered absolutely liquid if:

A 1 ≥ P 1; A 2 ≥ P 2; A 3 ≥ P 3; A 4 ≤ P 4.

Studying the ratios of these groups of assets and liabilities over several periods will allow us to establish trends in changes in the structure of the balance sheet and its liquidity.

Along with absolute indicators, to assess the liquidity and solvency of an enterprise, relative indicators are calculated: absolute liquidity ratio, quick liquidity ratio and current liquidity ratio (Table 9.29).

These indicators are of interest not only to the management of the enterprise, but also to external subjects of analysis: the absolute liquidity ratio - for suppliers of raw materials and materials, the quick liquidity ratio - for banks, the current liquidity ratio - for investors.

The absolute liquidity ratio (the rate of cash reserves) is determined by the ratio of cash and short-term financial investments to the total amount of short-term debts of the enterprise. It shows what portion of short-term liabilities can be repaid using available cash. The higher its value, the greater the guarantee of debt repayment. However, even with its small value, an enterprise can always be solvent if it is able to balance and synchronize the inflow and outflow of funds in terms of volume and timing. Therefore, there are no general standards or recommendations for the level of this indicator. The overall picture of an enterprise’s solvency is complemented by the presence or absence of overdue obligations, their frequency and duration.

Quick (quick) liquidity ratio - the ratio of the totality of cash, short-term financial investments and short-term receivables, payments for which are expected within 12 months after the reporting date, to the amount of short-term financial liabilities. A ratio of 0.7-1 is usually satisfactory. However, it may be insufficient if a large share of liquid funds consists of receivables, part of which is difficult to collect in a timely manner. In such cases, a higher ratio is required. If cash and cash equivalents (securities) occupy a significant share of current assets, then this ratio may be smaller. In our example, at the beginning of the year the value of this ratio is 0.9 (7600/8500), and at the end - 0. 72 (12,600/17,400), however, the main share in its composition is occupied by a group of absolutely liquid assets.

Current liquidity ratio (total debt coverage ratio Ktl) - the ratio of the total amount of current assets, including inventories, to the total amount of short-term liabilities; it shows the degree of coverage of current liabilities by current assets:

The excess of current assets over short-term financial liabilities provides a reserve stock to compensate for losses that an enterprise may incur when placing and liquidating all current assets other than cash. The larger this reserve, the greater the confidence of creditors that debts will be repaid. A coefficient > 2 usually satisfies. In our example, its value at the beginning of the year is 1.74 (14,800/8500), at the end - 1.53 (26,700/17,400), which is significantly lower than the standard level, and there is a tendency towards its downgrade

In the Republic of Belarus, its minimum level has been established: for industrial enterprises - 1.7, agricultural enterprises - 1.5, construction organizations - 1.2, transport - 1.3, trade - 1.0, etc. If its actual value is below this level, then this is one of the grounds for declaring the enterprise insolvent.

If the current liquidity ratio and the share of own working capital in the formation of current assets are less than the standard, but there is a tendency for these indicators to grow, then the solvency recovery ratio (CRR) for a period of six months is determined:

where K tl1 and K tl0 are, respectively, the actual value of the liquidity ratio at the end and beginning of the reporting period;
K TLnorm - standard value of the current liquidity ratio;
6 - period of restoration of solvency, months;
T - reporting period, month

If K VP > 1, then the enterprise has a real opportunity to restore its solvency, and vice versa, if K VP< 1, у предприятия нет реальной возможности восстановить свою платежеспособность в ближайшее время.

If the actual level of Kt is equal standard value at the end of the period or above it, but there has been a downward trend, calculate the coefficient of loss of solvency (Kl) for a period of three months:

When considering liquidity indicators, it should be borne in mind that their value is rather conditional, since the liquidity of assets and the maturity of liabilities on the balance sheet can be determined quite approximately. Thus, the liquidity of inventories depends on their quality (turnover, the share of scarce, stale materials and finished products). The liquidity of accounts receivable also depends on the speed of its turnover, the proportion of overdue payments and unrealistic payments. Therefore, a radical increase in the accuracy of liquidity assessment is achieved during internal analysis based on analytical data accounting.

The deterioration in asset liquidity is evidenced by an increase in the share of illiquid inventories, overdue accounts receivable, overdue bills, etc.

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