To analyze the financial condition of an enterprise,do without many indicators that characterize certain areas of its activities. In modern practice, about 200 coefficients are used, but knowledge of all is not necessary. From the article you will learn how to calculate the basic coefficients.

Among the main types of coefficients are:

  • Current liquidity ratio;
  • quick (urgent) liquidity ratio;
  • coefficient of absolute liquidity;
  • asset turnover ratio.

Coefficient of current liquidity (Ктл)

Ctl (Eng. Current ratio, CR) is a value that shows the firm's ability to repay current liabilities from current assets. This indicator is one of the main, because it characterizes the company's solvency. A good KTL is considered to be higher than 2. But if it is higher than 3, it can talk about irrational use of funds. After all, the company's assets should be in circulation.

The current liquidity ratio can be calculated using the following formula:

  • Ктл = ОА / КО, where ОА - current assets, and KO - short-term liabilities.

If you need to calculate Ktl, based on the groups of assets and liabilities, use this formula:

  • Km = (A1 + A2 + A3 + ...) / (P1 + P2 + P3 + ...), where A and P are groups of assets and liabilities.

Current assets include:

  • cash in cash at the box office, as well as in bank accounts;
  • the net receivable (the balance after the deduction of bad debts from the reserve receivables);
  • money equivalent of equipment, equipment, etc.
  • financial investments in securities.

Current liabilities are:

  • loans that must be repaid within a year;
  • debt to suppliers;
  • Other liabilities.

Coefficient of fast (urgent) liquidity (Кб)

Кб (Quick ratio, QR) - this indicatorcharacterizes how far the company's short-term liabilities can be paid for by cash assets or those that can quickly turn into them (raw materials, materials, finished products). Inventories are not taken into account. This ratio reflects the solvency of the company. Good is considered to be Kbl, which is in the range of 0.8-3. Exit him for the lower border indicates the insolvency of the enterprise, and above - the irrational use of funds.

If Ктк is within the limits of norm, and Кбк -low, this indicates that the company is solvent, subject to the sale of equipment, accounts receivable. But such procedures can disrupt the operation of the enterprise.

Formula for calculating Kbl:

  • Кбл = (ВЛОА + СЛОА) / КО, where ВЛОА и СЛОА - high and medium-liquid assets

The CLL and SLAA are:

  • cash on hand, as well as on bank accounts;
  • receivables, for which payments are made within 1 year after the date of the report.

Another formula for calculating Kbl is based on the ratio of the sum of the ULAA and the SLAA to the sum of current liabilities:

  • Кб = (ВЛОА + СЛОА) / (П1 + П2 + ...)

Absolute liquidity ratio (Cal)

Cal (Cash ratio, CR) - an indicator thatdetermines the ability of an enterprise to repay current liabilities using cash, money from settlement accounts, short-term financial investments. Simply put - how much the firm has money for settlements on various debts.

For a normally functioning enterprise, the cal should be more than 0.2. However, it should not be too high, because it indicates the non-use of cash.

Calculation formula Cal:

  • Кал = ВЛОА / КО

The WFLA includes:

  • cash in cash at the box office, as well as in bank accounts;
  • financial investments with a short term.

Asset Turnover Ratio (KOA)

Koa (Total assets turnover ratio, TAT) -shows how many times in a certain period (usually a year, less often - six months), there is a complete cycle of production and circulation, which brings profit. Using Koa, you can determine how effectively a company uses its resources, regardless of the sources of their receipt.

Calculated by the formula:

  • Koa = GRP / IAB, where GRP is the revenue from the sale of the balance sheet, IAB is the total of the balance asset.

It turns out that Koa shows how much eachthe monetary unit of assets brought the monetary units of the sold products. The higher the value of this coefficient, the faster the funds that the company disposes of are circulated. In this case, it is impossible to talk about the admissible limits of Koa for a normally functioning enterprise. The higher this indicator, the more effective it is.

Having mastered these simple formulas, you can always calculate the liquidity ratio.

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