Debt capital concentration ratio. The capital structure ratio is the basis for assessing the solvency of a business and its financial condition

The agility factor remains approximately at the same level over the period under review, which indicates the stability of the company.

Index net working capital is defined as the difference between current current assets (minus participants' debt on contributions to the authorized capital) and current liabilities, including short-term loans and borrowings, accounts payable, debt to participants for the payment of income, reserves for future payments and other short-term liabilities. Net working capital is necessary to maintain the financial stability of the enterprise, since the excess of working capital over short-term liabilities means that the enterprise can not only pay off its short-term liabilities, but also has reserves for expanding activities.

The optimal amount of net working capital depends on the characteristics of the company's activities, in particular on its scale, sales volumes, inventory turnover rate and receivables. The lack of working capital indicates the inability of the enterprise to pay off short-term obligations in a timely manner. A significant excess of net working capital over the optimal need indicates the irrational use of the enterprise's resources. The standard value is greater than zero.

The company is financially stable and can pay off its short-term liabilities.

Autonomy coefficient (coefficient of financial independence ): own funds (section 3) / balance sheet currency.

The autonomy coefficient shows the share of the enterprise's own funds in the total amount of the sources of the enterprise's financial resources. The restriction rate should be >= 0.5.

In this case, it is believed that the company is not seriously dependent on external sources of financing, in this case the risk of the creditor is minimized. This means that the company is able to repay 50% or more of its obligations at the expense of property

Debt capital concentration ratio. It is calculated as the ratio of borrowed capital (4+5) to the balance sheet. Shows the degree of dependence of the enterprise on external loans. The higher the value, the higher the shareholder risk. The normal value is from 0.5 to 1.

In this case, the dependence of the enterprise on external loans is extremely small.

Debt-to-equity ratio. The degree of information content of the coefficient under consideration and the above coefficient of concentration of borrowed capital is the same. Both indicators increase with an increase in the proportion of debt (liabilities) in the financial structure of the enterprise. But still more clearly the degree of dependence of the enterprise on borrowed funds is expressed in the ratio of borrowed and own funds. It shows what funds the company has more - borrowed or own. The more the coefficient exceeds 1, the greater the dependence of the enterprise on borrowed funds.

Coef. loan. funds/property capital =

Conclusion: since most of the coefficients are not within the limits of the norms, therefore, this enterprise is in an unstable financial condition.

Profitability analysis

Profitability (profitability) is the result of a complex strategic decision. Profitability reflects the impact of liquidity indicators, asset management and regulation of debt relations on the performance of the enterprise.

The main indicators of this block include the return on advanced capital and the return on equity. When calculating, you can use either balance sheet profit or net income.

When analyzing profitability in the space-time aspect, three key features should be taken into account:

- a temporary aspect, when an enterprise makes a transition to new promising technologies and types of products;

- the problem of risk;

- the problem of assessment, profit is estimated in dynamics, equity capital over a number of years.

However, not everything can be reflected in the balance sheet, for example, a brand, cutting-edge technologies, well-coordinated personnel do not have a monetary value, therefore, when choosing financial decisions, it is necessary to take into account the market price of the company.

Sales Profit Ratio (profit margin on sales) is defined as the result of dividing profit after tax by revenue; shows profit per unit of turnover,

Sales profit ratio =

If this ratio is below the industry average, then product prices are relatively low or costs are too high, or a combination of both. ""), i.e. a temporary sharp decrease in the prices of goods that fall below the level of production costs in order to force competitors out of the market. After some time, the company again raises prices to the original level or sets prices higher than before).

This indicator determines the amount of profit from each ruble of sales. It largely depends on the rate of turnover of funds, i.e. a long turnover of capital will lead to the fact that the company will need more profit in order to achieve satisfactory financial results.

It can be seen from the calculations that at the end of the reporting period it slightly decreased. the amount of profit from each ruble of sales decreased.

main productive force assets (basic earning power) is the result of dividing net income before taxes and interest (EBIT) by the total assets of the company, presented as a percentage. This indicator measures the total productive power of the firm's assets before taxes and financial expenses. It is useful when comparing firms with different taxation conditions and with different amounts of funds raised in the financial structure of the enterprise.

Basic Productive Power of Assets = _________

EBIT is formed throughout the year while the item "Assets" reflects the state at the end of the year. Therefore, it would be more expedient to use the average indicator in the denominator. The same approach is useful when calculating the other two indicators; ROA and ROE (return on total assets and return on equity),

Profit on total assets (return on assets ROA), also income from the total amount of assets, capital productivity. Calculated as the ratio of net income to total assets and shows the income from the use of assets minus interest and taxes, expressed as a percentage

Return on total assets (ROA) =

If the return on assets is higher than or equal to the current market lending rate (calculated for the duration of the reporting period), then from the point of view of creditors this means that the company is able to cope with servicing long-term loans at the expense of its operating profit (keeping in mind that payments on loans are prioritized). The company's creditworthiness is considered normal.

Return on capital employed (return on capital employed - ROCE, or raee of return on investors capital), or the return on capital ratio, as well as profit (income) on the assets used. When comparing different companies, analysts often rely on this ratio. The numerator of the fraction indicates the total amount of income of all investors (interest of creditors, net profit of shareholders - owners of preferred and ordinary shares), the denominator - long-term financial resources at the disposal of the company, i.e. the sum of all funds invested by both shareholders and creditors. The end result is usually less than 1, so it is multiplied by 100 and expressed as a percentage.

Profit per use capital =

By the end of the reporting period, the return on capital employed increased.

In countries with market economies, this coefficient is often used in the evaluation of socially useful monopoly enterprises, such as those involved in water supply, telecommunications, etc. (Theoretically, a monopoly position could bring an enterprise a large profit (income) on the capital used, however, social control and feedback existing in countries with a market economy restrain the growth in the cost of its products so that the profit on the capital used does not significantly exceed the costs of obtaining it).

Conclusion: the return on capital, fixed equity and debt has increased. Therefore, the company effectively uses its own capital. At the same time, there is an increase in profitability in the main activity, in terms of sales profitability, turnover and overall profitability, which indicates the productive activity of the workforce.

Assessment of the potential bankruptcy of the company

The final stage of work is the assessment of potential bankruptcy. Signs of bankruptcy for the organization is the inability to satisfy the claims of creditors for monetary obligations or to fulfill the obligation to make mandatory payments, if the relevant obligations and obligations are not fulfilled within 3 months from the date when they must be fulfilled.

To do this, we apply the Altman formula, which was proposed in 1968. Based on this model, it is possible to determine the integral indicator of the threat of bankruptcy. The improved model looks like:

Z = 0.7*X1 + 0.88X2 + 3.18*X3 + 0.42*X4 + 0.99*X5

X1 - profit before tax / value of all assets

X2 - reinvested profit / asset value

X3 - own working capital / assets

X4 - from sales / asset value

X5 - own funds / borrowed funds.

Regulatory restrictions:

If Z > 2.675, then the probability of bankruptcy within 2-3 years is possible, but very low.

If Z > 1.81, but up to 2.675 the probability is high

If Z > 2.676 to 2.99, then the probability of bankruptcy is possible

If Z > 2.99 - very low

In our case, the value of Z = 5.81, therefore, the latest regulatory restriction (Z > 2.99) is suitable and we can conclude that the probability of bankruptcy for this enterprise is very low.

Conclusion

The purpose of the analysis of the financial condition of the company is to build an effective financial management system , aimed at achieving the strategic and tactical goals of its activities, adequate to market conditions, and finding ways to achieve them. The performance of any enterprise is of interest to both external market agents (primarily investors, creditors, shareholders, consumers and manufacturers) and internal ones (enterprise managers, employees of administrative and managerial structural units, employees of production units).

When conducting such an analysis, the strategic objectives of developing the financial policy of the enterprise are:

Maximizing the profit of the enterprise:

Optimization of the capital structure of the enterprise and ensuring its financial stability:

Achieving transparency of the financial and economic state of the enterprise for owners (participants, founders), investors, creditors:

Ensuring the investment attractiveness of the enterprise:

Creation of an effective enterprise management mechanism;

The use by the enterprise of market mechanisms for raising funds.

It is difficult to overestimate the importance of the analysis of the financial and economic state of the enterprise, since it is the basis on which the development of the financial policy of the enterprise is built. Based on the data of the final analysis of the financial and economic state, almost all areas of the financial policy of the enterprise are developed, and the effectiveness of management decisions depends on how well it is carried out. The quality of the financial analysis itself depends on the methodology used, the reliability of the financial statements, as well as on the competence of the person making the managerial decision in the field of financial policy. The information base for conducting an in-depth financial analysis is the balance sheet, income statement and some forms of enterprise accounting.

Comparison of financial ratios is used as the main analysis tools. In addition to comparing coefficients over time for a single company or comparing several companies, it is recommended to compare the company's financial data with the values ​​of industry indices developed by information and analytical rating agencies (the most famous of them are Standard & Poors, Moody's Investor Service, Value Line, Dan & Bradsreet, AKM, and Financial Times). These media outlets offer industry statistics that compare the financial data of an individual company with the average of the industry as a whole. Comparative analysis allows you to compare the activities of the company with the activities of a certain group of comparable companies. But all financial ratios are calculated on the basis of unadjusted financial statements.

Analysis based only on financial accounting and reporting is not enough. Accounting estimate is a fixation of the past, earlier decisions, it does not provide information on the sufficiency of assets (capital), earned profitability and cash flows to continue activities while maintaining and developing competitive positions.

But the analysis of "yesterday's" indicators based on accounting is not fully reliable, there are a number of reasons for this:

Manipulation of financial indicators. To reduce tax payments or create a favorable opinion in the market about the development of business in the company. The choice among the available accounting methods (accounting for depreciation, inventories) and the independently interpreted inclusion of dependent companies in the consolidated financial statements allows you to manipulate the value of accounting profit. In addition, the idea of ​​the effectiveness of the main activity may distort the presence of speculative profits.

Inflation. Influences the amount of costs. The difference in choosing one of the inventory accounting methods at high inflation is significant. The FIFO method, compared to the weighted average price method, allows you to show higher profits, therefore generates higher tax deductions and reduces available cash.

Reflection of depreciation at different stages of the company's life cycle. The actual depreciation of fixed assets does not always fit into the schemes of accounting standards for depreciation. If real depreciation slows down, then accounting profit is understated. The underestimation especially affects the company's new investments, and for old projects, overestimation of profits is possible.

The presence of a non-monetary component of profit. For example, high profits can be formed as a result of writing off liabilities, revaluation of financial investments

Industry specifics of profit calculation. According to world standards, several options for cost accounting are allowed, depending on the chosen method, the profit will be different.

But, nevertheless, one of the main problems of financial statements is the almost complete disregard for intangible assets. Today's type of economy is critically dependent not only on the availability of large fixed capital, moreover, for many companies, the cost of enterprises and equipment is not significant. Other factors of production play an increasing role, in particular the art of managing intangible assets such as the brand, the quality of the workforce and the organizational ability of the firm to innovate. In addition, intellectual capital can be used simultaneously for many purposes, has an increasing profit depending on the scale of application (since knowledge is accumulated). And, despite their fundamental importance for any company, these assets in most cases remain unrecorded in the reporting mechanisms as company assets. Intangible assets are reflected in the company's expenses, but are not capitalized, with subsequent amortization, thereby reducing profits in the reporting period in which they were incurred. The main reason for the underestimation of intangible assets is the complexity of their assessment, emerging problems with property rights, and the possible imitation of knowledge by competitors.

An analysis of the financial condition showed that the activity of the enterprise is financed by its own funds. The balance of the enterprise can be considered sufficiently liquid.

The performed calculations of the turnover of the elements of current assets led to the conclusion that the company's management is using the available reserves to a sufficient extent, since the change in the turnover rate reflects the increase in the production and technical potential of the enterprise.

It must be said that the low level of inventories, which significantly affects the overall turnover of the company's assets; a flexible policy of settlements with the customer and the client on the terms of mutual benefit, including, in particular, a system of discounts - all this speaks of a strategically well-planned capital management. The analysis also showed that the return on equity in the reporting year is growing at a slow pace. This caused a decrease in the return on each ruble of invested funds over the past year.

Enterprises are the main links of management and form the basis of the economic potential of the state.

The more profitable the firm, the more stable its income, the greater its contribution to the social sphere of the state, to its economic potential, and finally, the better the people working in such an enterprise live.

Bibliography:

Sheremet A.D. – “Theory of economic analysis”

Selezneva N.N. , Ionova A.F. – “Analysis of the financial statements of the organization”

Sheremet A.D. – “Accounting and analysis”

E. S. Stoyanova - "Financial management: theory and practice"

E. Helfet - "Technique of financial analysis"

Abramov A. E. - “Fundamentals of analysis of financial, economic and investment activities of an enterprise in 2 hours”

Balabanov I. T. Financial management

Holt Robert N. - Fundamentals of Financial Management

Analysis financial states enterprises (32)Diploma work >> Economics

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Explanation of the essence of the indicator of concentration of borrowed capital

This indicator indicates the leverage level of the company. Leverage means the use of financial instruments or borrowed capital in order to increase the potential return on investment. In a company in which the amount of borrowed capital is significantly higher than equity, the level of leverage is high. In turn, this phenomenon indicates a high level of financial risks. It is worth noting that the attraction of borrowed capital allows you to ensure the growth of the company. Therefore, a significant part of the business is stable in terms of the use of borrowed funds.

The calculation of the concentration of borrowed capital is made by dividing the company's current and long-term liabilities by the amount of assets. This indicator shows how much of a company's assets are financed by liabilities. The indicator belongs to the group of indicators of financial stability.

Standard value of the indicator:

The normative value is considered to be within 0.4 - 0.6. However, the value of the indicator varies considerably, depending on the industry. If the cash flow during the financial year varies significantly (for example, due to seasonal factors), then the concentration of debt capital is low. If the company's share of borrowed funds in the amount of assets is higher than that of competitors, then this may lead to an increase in the cost of raising funds.

If the value of the indicator is higher, then the level of financial risks is also high. If the value of the indicator is lower, then this may indicate an incomplete use of the financial and production potential of the company. A value above one indicates that the company has more debt than assets. The latter indicates that the company may become bankrupt.

Directions for solving the problem of finding an indicator outside the normative limits

If the value of the indicator is below the normative value, then it is necessary to look for ways to attract additional borrowed funds, but this should be done only in case of an expected increase in the return on investment (or equity). If each ruble of funds raised will generate a financial result higher than the cost of using borrowed funds, then such an action is advisable.

If the value of the indicator is above the norm, then you can take such measures as:

• change the current dividend policy and reinvest the profits in the daily work of the company;
• attract additional funds from current owners or new investors;
• optimize the current financial structure of assets to reduce the need for funding sources, etc.

The formula for calculating the concentration of borrowed capital:

Borrowed Capital Concentration = Amount of Borrowed Capital / Amount of Assets

An example of calculating the concentration of borrowed capital:

JSC "Web-Innovation-plus"

Unit of measurement: thousand rubles

Debt capital concentration (2016) = (20+68) / 200 = 0.44

Debt capital concentration (2015) = (20+90) / 233 = 0.47

The value of the indicator of Web-Innovation-plus JSC is within the normative limits. In 2016, 44% of the company's assets were financed by debt capital. In conditions of stable operation of the company and the industry, such a value indicates an acceptable level of financial risks. The company has the opportunity to attract credit funds at 20% per annum for 2 years, and each ruble of additional funds raised will generate an additional 0.3 rubles of pre-tax financial results per year. In this case, a further increase in the concentration of borrowed capital would be desirable. To form more accurate recommendations, it is necessary to calculate the effect of financial leverage.

One of the most important characteristics of the financial condition of an enterprise is the stability of its activities from a long-term perspective. It is associated primarily with the overall financial structure of the enterprise, the degree of its dependence on creditors and investors. So, many businessmen, including representatives of the public sector of the economy, prefer to invest a minimum of their own funds in the business, and finance it with money borrowed. However, if the structure "equity - borrowed funds" is significantly skewed towards debt, the enterprise may go bankrupt when several creditors simultaneously demand their funds back at an "inconvenient" time.

The trend of normal financial stability is confirmed by the debt ratio: if the share of borrowed funds in the balance sheet decreases, then there is a tendency to strengthen the financial stability of the enterprise, which makes it more attractive to business partners.

The debt capital concentration ratio characterizes the share of debt in the total amount of capital. The higher the share of this ratio, the greater the dependence of the enterprise on external sources of financing.

The normative value of the coefficient of attracted capital must be less than or equal to 0.4. International standard (European) up to 50%.

Table 2.3.1

The results of calculations of the concentration ratio of borrowed capital LLC "PromZhilStroy" for the period 2010-2012.

According to the data in Table 2.3.1, it can be seen that during the analyzed period there is a downward trend in the concentration ratio of borrowed capital of PromZhilStroy LLC. The decrease in this indicator in 2011 by 0.04 points is due to the outstripping growth rate of the balance sheet currency (109.40%) from the growth rate of borrowed capital (101.92%). In 2012, the decrease in the debt capital concentration ratio of the enterprise was affected by a decrease in the amount of borrowed capital by 855 thousand rubles. with an increase in the balance sheet by 12,467 thousand rubles.

A decrease in the concentration ratio of borrowed capital indicates that the company uses less borrowed funds to finance fixed assets and other capital investments, attracting its own. The normative value of the coefficient must be less than or equal to 0.4. At the enterprise, this coefficient in the reporting year is 0.45, which indicates a positive trend in strengthening the financial stability of the enterprise, which makes it more attractive to business partners.

To determine the impact of each item on the amount of borrowed capital, it is necessary to conduct a factor analysis of the coefficient by the method of chain substitutions.

Change in the debt capital concentration ratio of PromZhilStroy LLC in 2011:

K kkk 0 \u003d (10975 + 851 + 20510) / 53542 \u003d 0.604.

K kkk conv1 = (10881 + 851 + 20510) / 53542 = 0.602;

K kkk conv2 = (10881 + 900 + 20510) / 53542 = 0.603;

K kkk conv3 = (10881 + 900 + 21176) / 53542 = 0.563;

K kkk 1 \u003d (10881 + 900 + 21176) / 58574 \u003d 0.563.

K kkk (DZS) \u003d K fu conv1 - K fu0 \u003d 0.602 - 0.604 \u003d -0.002;

K kzk (KZS) \u003d K fu conv2 - K fu conv1 \u003d 0.603 - 0.602 \u003d 0.001;

K kkk (KZ) \u003d K fu 1 - K fu conv2 \u003d 0.563 - 0.603 \u003d -0.040.

K kzk \u003d K fu 1 - K fu 0 \u003d 0.563 - 0.604 \u003d -0.041.

K kzk \u003d? K fu (DZS) +? K fu (KZS) +? K fu (KZ) \u003d -0.002 + 0.001 + (-0.040) +

+ (-0,041) = -0,004.

Change in the debt capital concentration ratio of PromZhilStroy LLC in 2012:

K kkk 0 \u003d (10881 + 900 + 21176) / 58574 \u003d 0.563.

Kkk conv1 = (18756 + 900 + 21176) / 58574 = 0.697;

Kkk conv2 = (18756 + 900 + 21176) / 58574 = 0.697;

K kkk conv3 = (18756 + 900 + 12446) / 58574 = 0.548;

K kkk 1 \u003d (18756 + 900 + 12446) / 71041 \u003d 0.452.

K KKK (DZS) \u003d K fu conv1 - K fu0 \u003d 0.697 - 0.563 \u003d 0.134;

K kkk (KZS) \u003d K fu conv2 - K fu conv1 \u003d 0.697 - 0.697 \u003d 0.000;

K kkk (KZ) \u003d K fu 1 - K fu conv2 \u003d 0.548 - 0.697 \u003d -0.149.

K kzk \u003d K fu 1 - K fu 0 \u003d 0.452 - 0.548 \u003d -0.096.

K kzk \u003d? K fu (DZS) +? K fu (KZS) +? K fu (KZ) \u003d 0.134 + 0.000 + (-0.149) +

+ (-0,096) = -0,011.

The results of calculations of the influence of factors on the change in the concentration coefficient of borrowed capital of PromZhilStroy LLC for the period 2009-2011. are given in Table 2.3.2.

Table 2.3.2

The influence of factors on the change in the concentration ratio of borrowed capital of PromZhilStroy LLC for the period 2009-2011.

In 2011, the debt capital concentration ratio of PromZhilStroy LLC decreased by 0.004 points as a whole, which was achieved by reducing long-term borrowings. By increasing the amount of short-term borrowings by 49 thousand rubles. there was an increase in the concentration ratio of borrowed capital by 0.001 points. The decrease in the coefficient by 0.040 points was due to an increase in accounts payable of 666 thousand rubles. The growth in the amount of assets (inverse factor) affected the decrease in the debt capital concentration ratio by 0.041 points.

In 2012, the debt capital concentration ratio of PromZhilStroy LLC decreased by 0.111 points as a whole, which was achieved due to an increase in the amount of assets. The debt capital concentration ratio did not change due to the unchanged amount of short-term borrowings in 2011. The decrease in the coefficient by 0.149 points was due to a decrease in accounts payable of 8,730 thousand rubles. with an increase in the amount of assets, which in turn affected the decrease in the debt capital concentration ratio by 0.096 points.

Thus, during the entire analyzed period, short-term borrowings had a positive impact on the concentration ratio of borrowed capital. The negative impact on the debt capital concentration ratio of PromZhilStroy LLC from accounts payable was the largest in 2012 (0.149). In 2012, long-term borrowings had a positive impact on the change in the debt capital concentration ratio (0.134). Influence of the total assets of the enterprise on the debt capital concentration ratio in 2011-2012 was negative.

The financial stability of an enterprise is its key characteristic, which reflects its financial stability and independence, and therefore, is a confirmation of the future existence of the enterprise for external counterparties. Unlike the solvency of an enterprise, which is of an operational nature, financial stability is, to a certain extent, a guarantor of strategic contracts and therefore is of a prospective nature. The financial stability of an enterprise is, to a certain extent, the key to successful interaction with credit institutions.

On the other hand, financial stability is the result of the effectiveness of the financial management of the organization to optimize and rationalize the financial support of the assets of the enterprise. Enterprise managers can choose various sources of financing: receive deferred payments from suppliers and contractors, attract loans and borrowings, replenish financial resources at the expense of shareholders, members of the company, etc. Therefore, it is necessary to assess the possibility of timely repayment of the obligations assumed. Such an assessment is carried out by different methods, but the most common is the coefficient.

Financial stability is assessed from two positions: the structure of the sources of enterprise funds and the costs associated with servicing external sources. To do this, two groups of indicators are calculated: capitalization ratios and coverage ratios (see paragraph 12.1. "Solvency and liquidity").

The group of capitalization ratios includes:

• - equity concentration ratio (КК(.К);
• - coefficient of concentration of borrowed funds (К|]С);
• - coefficient of financial dependence (Kf3); financial stability ratio (KFU);
• - financing ratio (Kf);
• - financial leverage ratio (Kfl); - coefficient of provision with own funds (K,.,.).

Indicators of financial stability are calculated on the basis of information about the sources of funds of the enterprise. The sources of funds of the enterprise are divided into two groups: own (the result of section III of the balance sheet) and attracted (the sum of the results of sections IV and V of the balance sheet). Attracted funds, in turn, can also be divided into a source of funds of a financial nature (borrowed funds) and sources of funds of a non-financial nature (current accounts payable). Borrowed funds are classified into long-term and short-term.

Equity concentration ratio (Kksk) reflects the share of ownership of shareholders (participants) of the company in the total amount of sources of funds of the enterprise and is calculated using the formula

The stability of the financial position of the enterprise is directly proportional to the equity concentration ratio: the higher the ratio, the more stable the position.

Funds Concentration Ratio(КК11С) reflects the share of attracted funds in their total amount and is calculated by the formula

The stability of the financial position of the enterprise is inversely proportional to the concentration ratio of funds raised: the higher the ratio, the less stable the position.

Financial dependency ratio(Kfz) is the inverse of the equity concentration ratio:

If the value of this indicator is equal to 1, this means that the owners of the enterprise fully finance it, which does not occur in practice. The positive dynamics of this indicator means a steady increase in dependence on external sources.

Financial stability ratio(CFU) reflects the share of long-term financial capital (own and borrowed) in the total amount of sources of funds of the enterprise and is calculated by the formula

This ratio shows the share of sources that can be used by the enterprise for a long time. The higher the value of this indicator, the more stable the enterprise.

Funding ratio(Kf) reflects the ratio of equity and debt capital:

The stability of the financial position of the enterprise increases with the growth of this indicator. Attracting borrowed funds for the implementation of projects reduces the value of the indicator.

Financial leverage ratio(Kfl) also characterizes the financial stability of the enterprise. There are several different algorithms for calculating it, the most common is the ratio of long-term borrowed capital to equity:

This indicator reflects how many rubles of borrowed capital account for one ruble of own funds. The higher the level of this indicator, the less financially stable the enterprise.

Equity ratio(Koss) reflects the share of current assets financed from own funds and is calculated using the formula

The financial dependence of the enterprise is directly proportional to this indicator: the higher the value of the indicator, the more stable the financial condition of the enterprise.

The financial stability of an enterprise depends on many factors: asset turnover, demand for manufactured products and services, and the level of fixed costs. Therefore, the values ​​of the coefficients characterizing financial stability must be interpreted taking into account the peculiarities of the functioning of the enterprise.

Ratio analysis of the financial condition of the enterprise has its drawbacks:

• - the formulas for calculating the coefficients and the boundaries of changes in these indicators recommended by experts are not indisputable;
• - there are no industry recommended coefficient values;
• - the accounting policy, in accordance with which the values ​​of the financial statements indicators are formed, significantly affects the value of the coefficients.

The financial stability of an enterprise is such a state of the financial resources of an enterprise in which it is able to ensure a continuous production process, expand economic activity and not experience difficulties with financing.

The analysis of financial stability is carried out using the balance sheet of the enterprise (form 1) and is carried out by comparing the size and structure of its assets and liabilities. With regard to financial stability, the following types are distinguished:

1. Absolute financial stability means that there are no borrowed funds in the structure of the company's liabilities. Such financial stability is practically non-existent.
2. Normal financial stability is a state in which the company provides its activities with its own capital and long-term liabilities.
3. An enterprise becomes financially unsustainable when the enterprise becomes dependent on short-term loans to finance activities (no one gives long-term loans anymore)
4. Critical financial stability occurs when the economic activity of the enterprise is not provided by the sources of formation of liabilities and the enterprise is on the verge of bankruptcy.

To analyze the financial stability of an enterprise, there are a number of coefficients that are calculated using the appropriate formulas. The main ones are:

Equity concentration ratio (autonomy ratio).

This coefficient characterizes the part of the owners of the enterprise in the total amount of funds invested in the enterprise. If this ratio has a high value, it means that the company is financially stable and weakly dependent on external creditors. An addition to this indicator of financial stability is the concentration ratio of attracted (borrowed) capital - their sum is equal to 1 (or 100%).

At present, no one can give an unambiguous answer what should be the concentration of equity capital to maintain normal financial stability. It all depends on the region in which the company is located and the industry in which it operates. For industrial enterprises in the countries of the former USSR, the most common indicator is 60% or more, for banks - 15%.

Coefficient of financial dependence.
This indicator of the financial stability of the enterprise is calculated by the formula:

From this formula it can be seen that the coefficient of financial dependence is the reciprocal of the coefficient of concentration of equity. This indicator is better perceived by some people when assessing financial stability, because with a coefficient value of 1.6, it becomes clear that for every $ 1 of the owners' funds, there are $ 0.6 of borrowed funds.

The coefficient of the ratio of own and borrowed funds.
The formula by which such an indicator of the financial stability of an enterprise is calculated looks like this:

This indicator for analyzing the financial stability of an enterprise is a variation of the previous two coefficients and is always one less than the financial dependence coefficient. Also created for ease of perception.

Debt capital concentration ratio.
This indicator of financial stability is calculated by the formula:

It is also closely related to the previous three indicators and is calculated for people who are comfortable with just this form of representation of the proportion of own and borrowed funds in the capital structure. A high value of the coefficient can signal both confidence on the part of banks and the pre-default state of the enterprise, while a low value can signal either a cautious and balanced management policy or a low level of confidence on the part of creditors. In any case, the deviation noticed in the analysis of financial stability should cause caution and subsequent clarification of the reasons.

To analyze the financial stability of an enterprise, it is not necessary to calculate all the previous four indicators, it is enough to choose the most convenient for yourself or for the person who will make the decision - all the same, they show the same thing in different forms.

Debt capital structure ratio.
This indicator of financial stability is determined by the formula:

This ratio of the financial stability of the enterprise shows what part of the liabilities are long-term loans. The low value of this indicator means that the company is highly dependent on short-term loans, and hence on the momentary market conditions.

Coefficient of structure of long-term investments.
This indicator of financial stability is obtained by the formula:

Such a coefficient is calculated in order to obtain information about how much of the fixed assets and other non-current assets are financed by external investors.

The coefficient of maneuverability of equity capital.
This indicator of financial stability is calculated by the formula:

Using this indicator of the financial stability of the enterprise, it is possible to determine which part is used in current activities and which is capitalized. This indicator may vary depending on the industry of the enterprise, the normative value is 0.4 - 0.6.