How is the liquidity of assets measured? Liquidity is in simple words: types and instructions for increasing. Absolute liquidity ratio

Money is the universal equivalent of value. Money- a special commodity that performs the role of a universal equivalent in the exchange of goods. Money is an absolutely liquid medium of exchange. Liquidity- the ability of any financial asset to turn into cash. The degree of liquidity of assets is determined by how quickly and at what cost (compared to their monetary value) these assets can be sold. Absolute liquidity government-issued cash. highly liquid Treasury bills, short-term government securities, are considered. This is because the market prices of these securities change only slightly from day to day, and also because they can be easily sold on the financial markets (because they are highly reliable), and the transaction costs will be very low. Intermediate or medium level of liquidity shares and long-term bonds issued by private corporations are possessed, since the prices of these assets change much more over time and the fees charged for transactions with such securities are much higher. Illiquid real estate (houses, industrial buildings), as the market price for it is very volatile, it is difficult to predict before the transaction. The costs of such transactions can be very high.

The essence of money is manifested in their functions: measures of value, means of circulation, means of payment, means of accumulation, world money. Money as a measure of value mean that they measure the value and price of goods. Money measures the value of commodities, i.e., the commodity is equated with a certain amount of money, which gives a quantitative expression of the value of the commodity. Price - the value of a thing, expressed in money. The state uses a certain monetary unit (ruble, dollar) as a scale for measuring value. Also, weight is measured using units of weight (grams, kilograms, etc.), the cost of goods has a monetary value. Because of this, we can measure the value of economic goods.

Money as a medium of exchange involved in the sale and purchase of goods and services. In this case, money acts as a fleeting intermediary. The use of money as a medium of exchange reduces the costs of circulation by reducing the effort and time to complete the purchase and sale. This function of money explains the appearance in circulation of defective coins (coins, the content of gold and silver in which is less than the face value, i.e., the weight indicated on the coin), as well as paper money.

Money as a means of payment act in the payment of wages, taxes, insurance payments, the sale of goods on credit, and in many other cases when the movement of money is not mediated by the movement of goods. If a commodity is sold on credit, then the medium of circulation is not the money itself, but debt obligations expressed in money. As the industrial society develops, the means of payment increasingly replaces the medium of exchange, the sale and purchase on credit become the most common. The fulfillment of this function by money led to the emergence of credit money: bills of exchange and bank notes.

Money as a store of value do not participate in turnover and act as a financial asset. Money is a convenient form of storing wealth. Here, money acts as a special asset that is retained after the sale of goods and provides its owner with purchasing power in the future. True, keeping money, unlike owning stocks, bonds, savings accounts, does not bring additional income. However, the advantage of money is that it can immediately be used as a medium of exchange or means of payment.

Function world money performed on the world market when servicing the movement of goods and services, capital and work force. World money is the same as national money, only at the international level. The currencies of the leading countries (dollar, pound sterling), as well as money created as a result of collective agreements (euro) act as world money.

The definition of the liquidity of any enterprise, bank, company or organization is dictated by the conditions market economy.

The investor must evaluate whether the company in which he invests will be able to pay dividends, how quickly will this happen? Economic stability, stability, rational management are directly related to liquidity. What it is? What information is needed for the assessment? Let's try to figure it out together, as well as find out the practical meaning of the term for a businessman.

What is liquidity?

The concept of liquidity (mobility, marketability), according to the economic dictionary, is a term denoting the ability of assets to be quickly sold at a market price. In our own words, we can single out that liquidity is the ability of a company to transfer its capital, assets and labor objects into money, that is, to sell them in a short time, and not for nothing, but for real value.

For evaluation, they take into account not only the money on the accounts of the company, but also any property belonging to it: land, semi-finished products, machine tools, real estate, cars, everything that has value. The need for a quick sale is dictated not only by the negative situation in the economy, but, for example, by the need for injections. If a company today seeks to conclude an agreement on tempting terms, it has to look for money urgently - whether it will be possible to implement its plans directly depends on the degree of liquidity.

What is the liquidity depending on the object under study?

It is possible to evaluate opportunities for rapid implementation for any object. For example, a well-maintained budget car will be bought faster than an old worn-out sofa or a collection of fridge magnets that you have collected around the world. But connoisseurs can be found for any thing. Speaking of business, the concept of liquidity is much broader, and is usually applied to the entire company. There is liquidity:

assets- the fastest way to withdraw money from current accounts, sell government securities, close deposits. But raw materials, equipment, premises are classified as low-liquid assets that reduce solvency;
Jar– the ability to pay deposits to the population, taking into account interest and capitalization, as well as to make a profit on loans issued. Liquidity is increased by credit funds from the Central Bank and banks, or savings, that is, personal resources and work results;
balance- shows the ratio of the company's assets to its liabilities, in fact, it is possible to find out whether the company has enough funds to pay off its debts. Liquidity decreases with an increase in the size of liabilities, obtaining loans, attracting funds from outside;
Enterprises- an extensive concept that requires finding out the solvency, studying the submitted statements. Thanks to the analysis, it is possible to understand how the company is stable and resistant to market fluctuations;
Organizations- is a study of current, urgent liquidity ratios, coverage - excess own funds over credit.

The liquidity ratio depends on the set of internal and external factors– quantities own property, income, profitability of activities. Influenced by skillful or inept management, the situation in the industry and in the country. The term is inextricably linked with other economic categories: solvency, accounts payable, receivables, payback of the enterprise.

Types of assets by degree of liquidity

Of course, all property can be divided depending on the speed of its implementation. Liquid plan assets are properties that can be sold in the short and long term, that is, there is a consumer demand for it. In addition, there are several types of assets:

Highly liquid- those that can be converted into money in the shortest possible time. Examples: deposits, cash on hand, funds on the company's current account, securities of large organizations (Sberbank, Rosneft), foreign currency, government bonds;
Medium liquid– assets are converted into money within six months, while not losing market value. This includes products ready for sale, property in demand, receivables;
low liquidity- real estate, including land, outdated machinery, equipment, that is, those products that will have to be sold for a long time;
Illiquid– long-term investments, fixed assets, intangible assets.

You need to understand that any property can be sold on the market, but for low-liquid objects, the price may be below expected, or it will take several months to find a buyer.

By the way, the assignment of specific types of assets to one or another degree of demand is conditional. For example, it is difficult to sell a huge warehouse in a remote village where there are no communications and roads, so it belongs to illiquid property. But a store or kiosk in a promising area where commercial real estate is in demand can be sold in a few days or weeks.

Liquidity ratios for the analysis of the company's activities

Finding out the ability of the organization to meet the changing needs of the market, it is necessary to conduct a qualitative analysis of the activity. In a simplified version, quantitative mechanisms are used - indicators that assess stability and financial sustainability:

Total liquidity ratio- ratio working capital and loan commitments. When the figure is up to one, it means that the company is able to pay off the contracts, however, if it exceeds 3 units, we can talk about the irrational use of resources - the money just lies in the accounts and does not work;
Quick liquidity ratio– the ability to fulfill debt obligations without attracting a reserve fund and raw materials reserves. With a decrease to 0.7, the organization loses its attractiveness in the eyes of investors, and banks are not willing to cooperate;
Absolute liquidity ratio- ratio Money on accounts and in cash to short-term liabilities. Normally, when the indicator is above 0.2, otherwise a financial analysis of stability and solvency is required, and it is difficult for the company to pay off debts.

It must be understood that the above coefficients - by no means the most important indicators which unequivocally testify to the successful conduct of business in the enterprise. It is necessary to take into account the economic situation, the date of foundation of the company, the characteristics of a particular industry, for example, in agriculture seasonality plays a huge role.

Why does an investor and a businessman need to know the degree of liquidity?

It would seem, why find out all these terms, give them definitions, find out what characteristics this or that enterprise has. In fact, everything is simple: in business you cannot invest money without a thorough analysis, it is necessary to determine the company's performance indicators, evaluate the results of work in numbers.

Even if at first glance the company looks successful, and the flow of customers is growing, this does not mean that things are going well, and obligations to investors will be fulfilled on time. Perhaps a large flow of borrowed capital is being used, the credit balance is increasing, and the organization simply will not be able to pay the bills.

Analyzing where to direct your capital, it is recommended to make a portfolio of assets of varying degrees of liquidity. Of course, securities of large and successful companies always in demand, but the profit on them is low. For a businessman, it is important to study the properties of money for sale, this will increase investment attractiveness, allow you to count on the help of banks, if necessary. borrowed funds.

Ways to increase liquidity: instructions

When a business owner realizes that the liquidity ratio in his company is reduced, which makes it difficult for investors to participate, there are several ways to act:

Step #1: Reduce the amount of short-term liabilities - you need to conclude agreements on the provision of long-term loans, that is, refinance existing debt.
Step #2: Increase the number of current assets, which are directly related to the concept of liquidity. This reduces the amount of non-current assets.
Step №3 : Shorten the inventory turnover cycle - it is necessary to modernize the production so that the production is carried out in a shorter time, for example, 5 days instead of 7. New workers are attracted, the number of shifts is increased or the work discipline.
Step #4: Reduce the amount of receivables, as well as the repayment period. If the contract with buyers previously indicated a period for payments of 2 months, now it can be, for example, 4 weeks.
Step #4: Realize unused surpluses and stocks that do not work, but simply stand on the balance sheet. These can be raw materials, surplus fixed assets - machines that are idle, as well as any fixed assets.

It is also possible to increase the liquidity of the property. For example, if we are talking about real estate - an apartment, it is enough to make cosmetic repairs, but in business, attractiveness is increased by other, more complex methods, which were described above.

Liquidity is a very important term in economic activity any enterprise. Properly evaluating this indicator, one can understand how skillfully the company manages finances, whether it will be able to fulfill its obligations to depositors and creditors. The best and most demanded on the market are highly liquid assets - they will be sold in as soon as possible at an attractive price for the owner.

From this article you will learn:

Short-term liabilities (P2) - short-term borrowed loans from banks and other loans payable within 12 months after the reporting date. When determining the first and second groups of liabilities, in order to obtain reliable results, it is necessary to know the time for the fulfillment of all short-term obligations. In practice, this is only possible for internal analytics. At external analysis due to limited information, this problem is much more complicated and is usually solved on the basis of the previous experience of the analyst performing the analysis.

Long-term liabilities (P3) - long-term loans and other long-term liabilities - items in section IV of the balance sheet "Long-term liabilities".

Permanent liabilities (P4) - articles of section III of the balance sheet "Capital and reserves" and individual articles of section V of the balance sheet that were not included in the previous groups: "Deferred income" and "Reserves for future expenses". To maintain the balance of assets and liabilities, the total of this group should be reduced by the amount under the items "Deferred expenses" and "Losses".

To determine the liquidity of the balance sheet, the totals for each group of assets and liabilities should be compared.

The balance is considered absolutely liquid if the following conditions are met:

A1 >> P1
A2 >> W2
A3 >> W3
A4
If the first three inequalities are met, that is, current assets exceed the external liabilities of the enterprise, then the last inequality is necessarily fulfilled, which has a deep economic meaning: the enterprise has its own working capital; the minimum condition for financial stability is met.

Non-fulfillment of any of the first three inequalities indicates that the liquidity of the balance sheet to a greater or lesser extent differs from the absolute one.

Current liquidity ratio

The current liquidity ratio shows whether the enterprise has enough funds that can be used by it to pay off its short-term obligations during the year. This is the main indicator of the company's solvency. The current liquidity ratio is determined by the formula

Ktl \u003d (A1 + A2 + A3) / (P1 + P2)

Quick liquidity ratio

The quick liquidity ratio, or "critical appraisal" ratio, shows how liquid funds enterprises cover its short-term debt. Quick liquidity ratio is determined by the formula

Kbl \u003d (A1 + A2) / (P1 + P2)

Absolute liquidity ratio

The absolute liquidity ratio shows what part of accounts payable the company can repay immediately. The absolute liquidity ratio is calculated by the formula

Kal \u003d A1 / (P1 + P2)

General indicator liquidity balance

For a comprehensive assessment of the liquidity of the balance sheet as a whole, it is recommended to use the general liquidity indicator of the enterprise's balance sheet, which shows the ratio of the sum of all liquid assets of the enterprise to the sum of all payment obligations (short-term, long-term, medium-term), provided that various groups of liquid funds and payment obligations are included in the indicated amounts with certain weighting coefficients, taking into account their significance in terms of the timing of receipt of funds and repayment of obligations.

The overall liquidity ratio of the balance sheet is determined by the formula

Col \u003d (A1 + 0.5A2 + 0.3A3) / (P1 + 0.5P2 + 0.3P3)

Liquidity analysis

The liquidity of the balance sheet is the degree to which the company's liabilities are covered by assets, the term for converting them into cash corresponds to the maturity of the liabilities. The solvency of the enterprise depends on the degree of liquidity of the balance sheet. The main sign of liquidity is the formal excess of the value of current assets over short-term liabilities. And the greater this excess, the more favorable the financial condition of the company in terms of liquidity.

The relevance of determining the liquidity of the balance sheet is of particular importance in conditions of economic instability, as well as in the liquidation of an enterprise as a result of it. Here the question arises: does the enterprise have enough funds to cover its debts. The same problem arises when it is necessary to determine whether the enterprise has enough funds to settle accounts with creditors, i.e. the ability to liquidate (repay) the debt with available funds. In this case, speaking of liquidity, it means that the enterprise has working capital in an amount that is theoretically sufficient to repay short-term obligations.

To analyze the liquidity of the balance sheet of an enterprise, asset items are grouped according to the degree of liquidity - from the most quickly converted into money to the least. Liabilities are grouped according to the urgency of paying obligations.

To assess the liquidity of the balance sheet, taking into account the time factor, it is necessary to compare each asset group with the corresponding liability group.

1) If the inequality A1 > P1 is feasible, then this indicates the solvency of the organization at the time of the balance sheet. The organization has enough to cover the most urgent obligations absolutely and the most liquid assets.

2) If the inequality A2 > P2 is feasible, then quickly realizable assets exceed short-term liabilities and the organization can be solvent in the near future, taking into account timely settlements with creditors, receiving funds from the sale of products on credit.

3) If the inequality A3 > P3 is feasible, then in the future, with the timely receipt of cash from sales and payments, the organization can be solvent for a period equal to the average duration of one turnover of working capital after the balance sheet date.

The fulfillment of the first three conditions leads automatically to the fulfillment of the condition: A4
The fulfillment of this condition testifies to the observance of the minimum condition for the financial stability of the organization, the availability of its own working capital.

Based on a comparison of groups of assets with the corresponding groups of liabilities, a judgment is made on the liquidity of the balance sheet of the enterprise

Comparison of liquid funds and liabilities allows you to calculate the following indicators:

Current liquidity, which indicates the solvency (+) or insolvency (-) of the organization for the nearest time period to the considered moment: A1 + A2 => P1 + P2; A4 prospective liquidity is a solvency forecast based on a comparison of future receipts and payments: A3>=P3; A4 insufficient level of prospective liquidity: A4 balance is not liquid: A4=>P4

However, it should be noted that the analysis of balance sheet liquidity carried out according to the above scheme is approximate, the analysis of solvency using financial ratios is more detailed.

1. The current liquidity ratio shows whether the enterprise has enough funds that can be used by it to pay off its short-term obligations during the year. This is the main indicator of the company's solvency. The current liquidity ratio is determined by the formula:

K \u003d (A1 + A2 + A3) / (P1 + P2)

In world practice, the value of this coefficient should be in the range of 1-2. Naturally, there are circumstances under which the value of this indicator may be higher, however, if the current liquidity ratio is more than 2-3, this, as a rule, indicates an irrational use of the enterprise's funds. The value of the current liquidity ratio below one indicates the insolvency of the enterprise.

2. The coefficient of quick liquidity, or the coefficient of "critical evaluation", shows how liquid assets of the enterprise cover its short-term debt. Quick liquidity ratio is determined by the formula:

K \u003d (A1 + A2) / (P1 + P2)

The liquid assets of the enterprise include all current assets of the enterprise, with the exception of inventories. This indicator determines what share of accounts payable can be repaid at the expense of the most liquid assets, that is, it shows what part of the company's short-term liabilities can be immediately repaid at the expense of funds in various accounts, in short-term securities, as well as settlement income. The recommended value of this indicator is from 0.7-0.8 to 1.5.

3. The absolute liquidity ratio shows what part of accounts payable the company can repay immediately. The absolute liquidity ratio is calculated by the formula:

K \u003d A1 / (P1 + P2)

The value of this indicator should not fall below 0.2.

4. For a comprehensive assessment of the liquidity of the balance sheet as a whole, it is recommended to use the general liquidity indicator of the balance sheet of the enterprise, which shows the ratio of the sum of all liquid assets of the enterprise to the sum of all payment obligations (short-term, long-term, medium-term), provided that various groups of liquid funds and payment obligations are included in the specified amounts with certain weighting coefficients, taking into account their significance in terms of the timing of receipt of funds and repayment of obligations. The overall liquidity ratio of the balance sheet is determined by the formula:

K \u003d (A1 + 0.5 * A2 + 0.3 * A3) / (P1 + 0.5 * P2 + 0.3 * P3)

The value of this coefficient must be greater than or equal to 1.

5. The coefficient of security with own funds shows how much own working capital of the enterprise is necessary for its financial stability. It is defined:

K = (P4 - A4) / (A1 + A2 + A3)

The value of this coefficient must be greater than or equal to 0.1.

6. The coefficient of maneuverability of functional capital shows how much of the functioning capital is contained in stocks. If this indicator decreases, then this is a positive fact. It is determined from the relation:

K \u003d A3 / [(A1 + A2 + A3) - (P1 + P2)]

In the course of the balance sheet liquidity analysis, each of the considered liquidity ratios is calculated at the beginning and end of the reporting period. If the actual value of the coefficient does not correspond to the normal limit, then it can be estimated by the dynamics (increase or decrease in value). It should be noted that in most cases the achievement of high liquidity is contrary to the provision of higher profitability. The most rational policy is to ensure the optimal combination of liquidity and profitability of the enterprise.

Along with the above indicators, to assess the state of liquidity, you can use indicators based on: net cash flow(NCF - Net Cash Flow); cash flow from operating activities(CFO - Cash Flow from Operations); cash flow from operating activities, adjusted for changes (OCF - Operating Cash Flow); cash flow from operating activities, adjusted for changes in working capital and satisfaction of investment needs (OCFI - Operating Cash Flow after Investments); free cash flow (FCF - Free Cash Flow).

However, regardless of the stage life cycle where the enterprise is located, management is forced to solve the problem of determining the optimal level of liquidity, since, on the one hand, insufficient liquidity of assets can lead to both insolvency and possible bankruptcy, and on the other hand, excess liquidity can lead to a decrease in . Because of this, modern practice requires the emergence of more and more advanced procedures for analyzing and diagnosing the state of liquidity.

Absolute liquidity

Absolute liquidity ratio (English Cash ratio) - financial ratio, equal to the ratio of cash and short-term financial investments to short-term liabilities (current liabilities). The data source is the company's balance sheet in the same way as for current liquidity, but only cash and cash equivalents are taken into account as assets: (line 260 + line 250) / (line 690-650 - 640).

Cal = (Cash + short-term financial investments) / Current liabilities

Kal \u003d (Cash + short-term financial investments) / (Short-term liabilities - Deferred income - Reserves for future expenses)

It is believed that the normal value of the coefficient should be at least 0.2, i.e. every day, 20% of urgent obligations can potentially be paid. It shows what part of the short-term debt the company can repay in the near future.

Absolute liquidity - the highest level of liquidity; inherent in money.

Liquidity indicators

An enterprise can be liquid to a greater or lesser extent, since current assets include heterogeneous working capital, among which there are both easy to sell and hard to sell to pay off external debt.

According to the degree of liquidity, items of current assets can be conditionally divided into three groups:

1. liquid funds that are immediately ready for sale (cash, highly liquid securities);
2. liquid funds at the disposal of the enterprise (obligations of buyers, inventories);
3. illiquid funds (claims on debtors with long term education (doubtful accounts receivable), unfinished production).

The assignment of certain items of working capital to these groups may vary depending on specific conditions: the company's debtors include very heterogeneous items of receivables, and one part of it may fall into the second group, the other into the third; with different duration production cycle work in progress can be assigned either to the second or third group, etc.

As part of short-term liabilities, it is possible to distinguish obligations of varying degrees of urgency. In the practice of conducting financial analysis the following indicators are used:

current liquidity ratio;
quick liquidity ratio;
absolute liquidity ratio.

Using these indicators, you can find the answer to the question of whether the company is able to fulfill its short-term obligations on time. This applies to the most liquid part of the company's property and its liabilities with the shortest payment period. These indicators are calculated on the basis of balance sheet items. In the balance sheet, assets are distributed in accordance with the degree of liquidity or depending on the time required for their conversion into cash. Liquidity ratios reveal the nature of the relationship between current assets and short-term liabilities (current liabilities) and reflect the company's ability to meet its financial obligations on time.

The current ratio, or working capital ratio, is derived as follows:

Current liquidity ratio \u003d Current assets (5) \ Short-term liabilities (14)

In 1992 610/220 = 2.8
in 1993 700/300 = 2.3

So many Czech crowns account for one crown of short-term liabilities.

The current liquidity ratio shows how many times short-term liabilities are covered by the company's current assets, i.e. how many times a company is able to meet the requirements of creditors if it turns into cash all the assets at its disposal at the moment.

If the firm has certain financial difficulties, of course, it repays the debt much more slowly; additional resources are sought (short-term bank loans), trade payments are deferred, etc. If short-term liabilities increase faster than current assets, the current ratio decreases, which means (under unchanged conditions) that the company has liquidity problems.

The current liquidity ratio depends on the size of individual active items and on the duration of the turnover cycle certain types assets. The longer their turnover cycle, the higher the company's "safety level" would seem. However, it is necessary to separate the really functioning assets from those that outwardly improve the indicator under consideration, but in fact do not have an effective impact on the activities of the enterprise. Thus, the current liquidity ratio depends on the structure of reserves and on their correct (actual) assessment in terms of their liquidity; from the structure of accounts receivable due to the expiration of the limitation period, unreliable debts, etc.

The current liquidity ratio shows the extent to which short-term liabilities are covered by short-term assets that must be converted into cash for a period approximately corresponding to the maturity of short-term debt. Therefore, this indicator measures the ability of the enterprise to meet its short-term obligations.

According to the standards, it is considered that this coefficient should be between 1 and 2 (sometimes 3). The lower limit is due to the fact that current assets must be at least sufficient to repay short-term liabilities, otherwise the company may be insolvent on this type of loan. The excess of current assets over short-term liabilities by more than two times is also considered undesirable, since it indicates an irrational investment by the company of its funds and their inefficient use. Besides, Special attention in the analysis of this coefficient refers to its dynamics.

Accounts receivable in the balance sheet has already been cleared of doubtful debts. Stocks are easily realizable.

JSC "Kovoplast" is able to cover its obligations at the expense of current assets.

Quick liquidity ratio (acid test, quick ratio). Not all company assets are equally liquid; stocks can be called the least liquid item of current assets with the slowest turnover. Cash can serve as a direct source of payment of current liabilities, and stocks can be used for this purpose only after they are sold, which implies not only the presence of a buyer, but also the presence of the buyer in cash. This includes stocks of not only finished products, but also semi-finished products, raw materials, materials, etc. stagnation finished products may affect the marketability of stocks. Therefore, when measuring the ability to fulfill obligations, when testing liquidity at a certain point in time, stocks are excluded.

Quick liquidity ratio \u003d ("Current assets" - "Inventory" \ "Short-term liabilities"

For analysis, it is useful to consider the relationship between the quick liquidity ratio and the current liquidity ratio. A very low short-term liquidity indicates too much inventory on the company's balance sheet. A significant difference between these indicators is noted mainly in the balance sheets. commercial companies, where stocks are assumed to be rapidly circulating and highly liquid. In enterprises whose activities are seasonal, there may also be large reserves, especially before the start of the sales season or immediately after it ends. However, this seasonal "irregularity" evens out during the year.

In Kovoplast, the quick ratio can be considered satisfactory, the company is able to cover its obligations and does not feel the need to sell its reserves.

The most liquid items of working capital are the cash that the company has on bank accounts and on hand, as well as in the form of securities. The ratio of cash to short-term liabilities is called the absolute liquidity ratio. This is the most stringent solvency criterion, showing what part of short-term liabilities can be repaid immediately.

Absolute liquidity ratio \u003d (Money + Short-term securities) \ Short-term. obligations

Liquidity of assets

The liquidity of an asset is the ability of an asset to compete against the market price. The very fact of turning into money is liquidity. There are three groups of assets in the financial world - these are highly liquid, low liquid and illiquid assets.

Highly liquid assets are, of course, the cash itself and the securities of the largest enterprises.
Real estate, stocks and small companies are considered low liquidity.
Illiquid assets are those assets that are not a product of the stock markets and are not of interest to other shareholders.

A company achieves high liquidity if its assets are bought at a price much higher than they are sold, this difference determines the indicator and level of liquidity, which is achieved mainly when there are a large number of sellers and buyers in the market. Organizations often artificially raise trading volume in order to induce transactions in assets.

Before buying shares of small companies, the market forecast in calm times and during market turmoil is of great importance, otherwise the purchase of such shares may result in a financial loss or freezing of money during a crisis, although the price of low-liquid assets in difficult financial periods can sometimes reach a high level.

Let's summarize: the liquidity of assets is the ability of assets to be quickly sold at a price close to the market.

Liquidity calculation

The purpose of liquidity analysis is to assess the ability of an enterprise to fulfill short-term obligations in a timely manner in full at the expense of current assets.

Liquidity (current solvency) is one of the the most important characteristics the financial condition of the organization, which determines the ability to pay bills on time and is actually one of the indicators of bankruptcy. The results of the liquidity analysis are important from the point of view of both internal and external users of information about the organization.

Calculation and interpretation of key indicators

The following indicators are used to assess liquidity:

The overall liquidity ratio characterizes the company's ability to fulfill short-term obligations at the expense of all current assets. Classically, the total liquidity ratio is calculated as the ratio of current assets (current assets) and short-term liabilities (current liabilities) of the organization.

The composition of the current liabilities of the Russian Balance contains elements that, by their nature, are not liabilities to be repaid - these are deferred income and reserves for future expenses and payments. Assessing the organization's ability to pay off short-term obligations, it is advisable to exclude these components from the composition of current liabilities.

Kt total Liquidity = Current Assets / (Current Liabilities - (BP Income + PRP Reserves))

Where
BP income - deferred income, monetary units
PRP reserves - reserves for future expenses and payments

The items listed above are included in current liabilities.

All indicators used in the calculations must refer to the same reporting date.

The absolute (instant) liquidity ratio reflects the ability of the enterprise to fulfill short-term obligations at the expense of free cash and short-term financial investments

Absolute Liquidity Kt = Cash + KFV / (Current Liabilities - (BP Income + PRP Reserves))

Where
KFV - short-term financial investments, monetary unit

The quick (intermediate) liquidity ratio characterizes the ability of an enterprise to fulfill short-term obligations at the expense of a more liquid part of current assets.

When calculating this indicator, the main issue is the division of current assets into liquid and low-liquid parts. This issue in each specific case requires a separate study, since only cash can be unconditionally attributed to the liquid part of the assets.

In the classic version of calculating the interim liquidity ratio, the most liquid part of current assets is understood to be cash, short-term financial investments, outstanding receivables (accounts receivable) and finished products in stock.

Urgent kit liquidity = Cash + KFV + Deb. Debt + Finished Goods / (Current Liabilities – (BP Income + PDP Reserves))

For enterprises with significant reserves of future expenses and (or) deferred income, liquidity ratios calculated without adjusting current liabilities will be unreasonably low. At the same time, it should be taken into account that the liquidity indicators of Russian enterprises are already low.

When calculating the liquidity ratios of an enterprise, there are fewer difficulties than when interpreting them. For example, the managerial interpretation of the absolute liquidity indicator in fractional terms (0.05 or 0.2) is difficult. How to assess whether the value obtained is optimal, acceptable or critical for the enterprise? To get a clearer picture of the state of liquidity of the enterprise, it is possible to calculate the modification of the absolute liquidity ratio - the coefficient of coverage of average daily payments in cash.

The meaning of this calculation is to determine how many "days of payments" are covered by the funds available to the enterprise.

The first calculation step is to determine the amount of average daily payments made by the organization. A source of information on the value of average daily payments can be a report on financial results(form N2), or rather, the sum of the values for the items of this report "Cost of sales", "", "Administrative expenses". Non-cash payments such as depreciation must be deducted from this amount. Such a recommendation is given in foreign literature. However, it is difficult to apply it directly to Russian enterprises.

First, Russian enterprises often have significant stocks of materials and finished products in stock. In this regard, the value real payments related to the implementation production process, may be much more than the cost of sales reflected in the N2 form. Another feature Russian business, which should be taken into account in the calculations - barter transactions, in which part of the resources used in the production process is paid not with money, but with the products of the enterprise.

Thus, to determine the average daily cash outflows, it is possible to use information on the cost of sales (net of depreciation), but taking into account changes in the Balance sheet items " Productive reserves”, “Work in progress” and “Finished products”, taking into account tax payments for the period and deducting material resources received by barter.

It is correct to take into account both positive (increase) and negative (decrease) increments in inventories, work in progress and finished products.

Thus, the calculation of average daily payments is carried out according to the formula:

Monetary payments for the period = (c / from manufactured products + administrative expenses + selling expenses) for the period * (1 - share of barter in costs) - for the period + Tax payments for the period * (1 - share of barter in taxes) + Increase in stocks of materials , work in progress, finished products for the period * (1 - share of barter in costs) + .. other cash payments.

The source of information on the cost of goods sold is the income statement. The source of information on the amount of increments in inventories, work in progress, finished products is the aggregated balance sheet.

Note that in order to perform the calculation, it is necessary that

Form No. 2 information was presented for the period (not on an accrual basis);
all indicators used in the calculations refer to the same time period.

For a more accurate calculation of average daily payments, in addition to information on the costs of production and sales of products, you can take into account tax payments for the period, expenses for the maintenance of the social sphere and other periods. However, it is necessary to observe the principle of reasonable sufficiency - in the calculations it is recommended to take into account only "significant for" payments. Thus, enterprises can create individual modifications to the formula for calculating average daily payments.

For example, from the cost of sold products depreciation charges may not be excluded. In this way, it is possible to compensate for some of the other payments that need to be included in the calculation (for example, taxes or payments for social sphere).

The total amount of taxes paid for the period is not directly allocated in form No. 2, therefore it is possible to limit it (highlighted in form No. 2).

If the share of offsets and barter in the calculations of the enterprise is small, you can ignore the corrective factors of the formula, denoted as (1-share of barter).

If the share of barter (mutual offsets) in the organization's calculations is small and other cash costs are comparable to the amount of depreciation charged for the period, the calculation of cash costs for the period can be carried out according to the formula

Cash payments for the period = (c / from manufactured products + management expenses + selling expenses + Income tax + Increase in inventories of materials, work in progress, finished goods) for the period.

To determine the value of average daily payments, it is necessary to divide the total cash payments for the period by the duration of the analyzed period in days (Int).

Average daily payments \u003d cash costs for the period / Interval

To determine how many "days of payments" are covered by the company's cash, it is necessary to divide the cash balance on the Balance by the amount of average daily payments.

Cash Coverage Ratio of Average Daily Payments = Cash Balance (Balance) / Average Daily Payments

When calculating the coverage ratio of average daily payments in cash, a fair remark may arise: the cash balance on the Balance sheet may not quite accurately characterize the amount of cash that the company had at its disposal during the analyzed period.

For example, shortly before the reporting date (the date reflected in the Balance) large payments could be made, in connection with this, the cash balance on the Balance is insignificant. The opposite situation is possible: during the analyzed period, the company's cash balance was insufficient, but shortly before the reporting date, the customer repaid the debt, in connection with this, the amount of money on the company's current account increased.

Note that both the classic indicator of absolute liquidity and liquidity in terms of payment days are based on the data reflected in the Balance. In this regard, the error of both coefficients is the same.

The obtained values of liquidity in the days of payments are more informative than the liquidity ratios and make it possible to determine the values of absolute liquidity acceptable for the enterprise.

For example, the head of an enterprise that has stable terms of settlements with suppliers and buyers, producing serial products, believes that the coverage ratio of average daily payments in cash for 10-15 days is quite acceptable. That is, the balance of funds covering 15 days of average payments is considered acceptable. At the same time, the absolute liquidity ratio can be 0.08, that is, it can be lower than the value recommended in Western practice of financial analysis.

Calculation of liquidity ratios allowed for this enterprise(organizations)

In Western practice, to assess the liquidity of an enterprise (organization), it is used comparative method, at which the calculated values of the coefficients are compared with the industry average. Although the optimal values of liquidity ratios for a certain industry and a certain enterprise are unique, the following values are often used as a guideline:

For the total liquidity ratio - more than 2,
for the absolute liquidity ratio - 0.2 - 0.3,
for the intermediate liquidity ratio - 0.9 - 1.0.

In Russia, there is not yet an updated statistical database of optimal values for the liquidity indicators of enterprises (organizations) in various fields of activity. Therefore, in Russian practice, when assessing liquidity, it is recommended

Pay attention to the dynamics of changes in coefficients;
determine the values of the coefficients that are acceptable (optimal) for this particular enterprise

It is known that the ability of an organization to meet current obligations depends on two fundamental points:

Terms of mutual settlements with suppliers and buyers;
degree of liquidity of current assets (property structure)

The conditions listed above are basic when calculating the total liquidity indicator that is acceptable for this particular enterprise.

The calculation of the allowable value of total liquidity is based on next rule- to ensure an acceptable level of liquidity of the organization, it is necessary that the least liquid current assets and a part of current payments to suppliers that are not covered by proceeds from buyers be financed from equity. Thus, the first step in the calculation is to determine the amount of own funds necessary to ensure uninterrupted payments to suppliers, as well as the allocation of the least liquid part of the organization's current assets.

The sum of the least liquid part of current assets and equity required to cover current payments to suppliers is the total amount of equity that must be invested in the organization's current assets to ensure an acceptable level of liquidity. In other words, this is the amount of current assets that must be financed from own funds.

Knowing the actual value of the organization's current assets and the value of current assets to be financed from its own funds, it is possible to determine the permissible value of borrowed sources of financing of current assets - that is, the permissible value of current liabilities.

The total liquidity ratio allowed for a given enterprise is defined as the ratio of the actual value of current assets to the estimated allowable value of current liabilities.

Liquidity management

As a rule, companies and enterprises have a very large number of different accounts opened in many banks. Financial services have to solve complex problems every day in order to ensure the liquidity of aggregate cash to meet payment obligations:

From which accounts, how much, when and where to transfer funds?
What is the procedure for transferring funds?
How to prevent cash gaps?
What is the minimum required cumulative balance in bank accounts, etc.

The Liquidity Management solution, which is based on the functionality of SAP Cash and Liquidity Management, provides financial departments essential tool to perform all emerging cash flow management tasks.

Liquidity management is integrated with other application components, such as cash inflows/outflows from financial accounting, purchasing management, and sales management.

Liquidity management performs the following operational tasks:

Daily placement of funds (short-term view)
o Processing bank statements
o Filling in the Daily summary (cash position) with additional information
o Making payments
o Concentration of funds in accordance with the payment strategy
o Making financial transactions
Daily liquidity forecast (medium term)
o View current orders, delivery status, invoices
o Analysis of currencies and financial transactions
Regular liquidity planning (long-term perspective)
o Analysis of liquidity plans (payment calendar)
o Development of an efficient liquidity strategy

The daily financial statement (short-term view) is the result of entering all payments within a short time horizon. A daily financial summary is provided by various sources:

Bank transactions and bank account transactions;
expected incoming or outgoing payments from investments/raising funds in ,
FI postings to G/L accounts relevant for cash management;
entering individual entries (advisos) manually;
cash flows of business transactions managed through the Treasury component.

The liquidity forecast (medium-term view) shows the movement of liquidity in the accounts. The displayed information relates to expected payment flows.

The liquidity forecast is based on incoming and outgoing payments for each position of debtors and creditors. Since the planning and forecasting of these payments is usually long-term, the probability that payment will be made on the scheduled date is less than the probability of payment recorded in the daily financial statement.

The liquidity forecast integrates the incoming and outgoing payments of financial accounting (example: open items), sales (example: orders) and purchasing (example: purchase orders) to analyze medium and long-term liquidity dynamics.

Liquidity risk

Liquidity risk is one of the main types that a risk manager needs to pay attention to. It is necessary to distinguish between two similar in name, but essentially different concepts of liquidity risk: - Liquidity risk is the risk that the real price of a transaction may differ greatly from the market price for the worse. This is market liquidity risk. - liquidity risk is understood as the risk that the company may become insolvent and will not be able to fulfill its obligations to counterparties. This is the balance sheet liquidity risk. One of the consequences associated with the process of finance and financial risk, there was an increase in the influence of market liquidity on portfolio risk.

Almost all modern models and methods for assessing the market risk of a portfolio require input of asset prices that make up the portfolio as input data. As a rule, average market prices at some point in time or the price of the last transaction are used. But the real price of each particular transaction almost always differs from the market average. There is no concept of "market price" in the market; at each moment of time there is a demand price and an offer price.

As long as the situation on the market is stable and it is in a balanced state, the transaction costs do not have a strong impact on the risk of the portfolio, which can be estimated quite accurately. But when the market goes out of balance, a panic or crisis begins on it, transaction costs can increase tens or hundreds of times.

To carry out any operation on the market, it is necessary to have a counterparty to the transaction who wants to perform the opposite operation. In the event of a crisis in the market, this is violated. If the majority of market participants strive to make a deal in one direction, then there will not be enough counterparties for all market participants. If the deal is large, either you have to spend a lot of time waiting for the right price, exposed to market risk all the time, or incur high transaction costs due to liquidity risk.

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Question "What is the liquidity of the enterprise" most often asked in context, but below the question is considered in a broader sense.
The market economy dictates its terms. Any entrepreneur wants to deal only with those companies that are able to pay off all their obligations within the agreed time frame. Therefore, it is so important to understand what indicators of the financial condition of the enterprise exist and what they mean. One of these indicators is the liquidity or the ability of a particular enterprise to use the available current assets to quickly convert into money in order to pay off all creditors.

Definition of the concept of liquidity

Liquidity is the ability of material resources to quickly turn into money at a cost as close as possible to the market value.

Money in the economy has the most important feature - it is completely liquid, i.e. they can be used at any time as a means of payment. Roughly speaking, a liquid material resource is a quickly convertible into money.
The concept of liquidity can be applied to an enterprise, banks, securities, assets and liabilities. Depending on the time it takes to convert an asset into cash, there are several types of liquidity:

Let's understand what liquidity is on a real example: shares of a well-known gas company on the market can be sold in a couple of seconds, the difference in value compared to the purchased one will not be noticeable at all - only a couple of hundredths of a percent. And the shares of a little-known company will either be sold for much longer, or as a result, they will lose more than 10% of their market value.

Who needs liquidity and why

This is important economic factor, which potential investors first of all pay attention to when choosing a particular company in order to invest their capital in it. This will allow him to invest the funds as efficiently as possible, and if the option turns out to be a failure, he will always be able to promptly convert the firm's asset back into money. People far from the investment process are interested in liquidity in order to understand which most reliable bank to give preference to.

The liquidity of an enterprise is analyzed in order to assess its real financial position in the short and medium term.

What does it mean? The specialist, on the basis of the balance sheet (namely, the forecasted results of activities) and the income statement, receives information about the presence of the enterprise at the moment of a sufficient amount of working capital to pay off all obligations.

Liquidity, profitability and solvency: debriefing

making out what is liquidity many people confuse it with solvency, believing that these concepts are identical. This is not entirely true. To determine liquidity, special coefficients are used that show whether there is enough working capital to pay off short-term obligations (even with small delays in payments).
The concept of solvency also means the availability of a sufficient amount of money or assets to pay off obligations, but short-term and long-term obligations. They call it solvent an enterprise that has no overdue debts to creditors and that has enough cash on its current account.

Conclusion: liquidity is the potential ability of the company to pay off short-term obligations, solvency is a real opportunity to fulfill obligations to creditors.

It is impossible to ignore the profitability, which serves as another indicator economic efficiency and is also related to liquidity. Profitability can be even with low liquidity.

For example, a small start-up moving company has two used cars and a small staff. The company received a loan for development. Liquidity in this case is low, after the sale of property, the money will hardly be enough to cover the debt. But the form can get a lot of daily revenue, so the business pays off and is cost-effective. Conversely, with low revenue, even an enterprise with high liquidity may soon go bankrupt.

Liquidity analysis. How and why to carry it out?

Thanks to the analysis of liquidity, one can judge the financial stability of the company, how it “keeps afloat” and clearly see whether it will be able to meet its obligations after the sale of existing assets and liabilities. Therefore, it is so important to analyze the financial condition of the enterprise.
This information is used by different users from the outside:

Suppliers of raw materials for the company are most interested in the indicator of absolute liquidity (what is the current total value of the company's assets that can be used to solve the problem of current debts);
It is important for banks issuing a loan to an enterprise to know the intermediate liquidity ratio (the ratio of high liquidity assets to short-term liabilities or liabilities);
It is important for investors and buyers of company shares financial stability, determined by the parameter of current or urgent liquidity (its ability to repay debts if difficulties arise with the process of selling products).

The main sign of good liquidity is the excess of the company's current assets over its short-term liabilities.

The liquidity of money - the ability at any moment or within a certain period of time to turn money into any kind of goods or services that the owner of money needs, is their natural property as a means of circulation and means of payment. Liquidity determines the possibility of monetary circulation, i.e. the movement of money in society and the economy as a means of paying private and public debts. This includes not only the circulation of commodities, but also the movement of labor and capital. Unfortunately, monetarist theories narrow the problems of money circulation to the maintenance of commodity circulation. With this approach, the central problem of monetary regulation becomes the question of the amount of money needed for circulation.

The economic tradition, starting from W. Petty and K. Marx and ending with modern economists, adheres to the quantity theory of money required for circulation. With all the discrepancies in the theoretical explanation of the ratios and content of individual quantities, the content of this theory is the same, changing mainly depending on changes in the monetary material - from precious metals to credit money. For the first time, the regular amount of money in circulation in the form of a simple formula was defined by Karl Marx as follows:

"... for the process of access for a given period of time:

The number of turnovers of any working capital, including goods in cash, is determined by the formula
n = c / S, (2.2)
where n - the number of turnovers of working capital for a certain period of time; c - the volume of sales of goods (equal to the sum of the prices of goods); S - the average amount of working capital.
We represent the formula in the form
M = s / n, (2.3)
where M is the mass of money functioning as a medium of circulation.

From a comparison of the above formulas, we obtain that M = c / n = S, i.e. "the mass of money in circulation" is equivalent to the average for the period of the balance of working capital serving a given volume of sales of goods.

However, this position is not entirely true. Let us assume that we consider the working capital of the country, serving the general commodity turnover. It is obvious that the working capital cannot be all present in the form of money at the same time. Part of this capital must be presented in the form of goods at the stage of production, preparation of goods for shipment, in transit, in the trade network, etc.

Reasoning about the speed of money turnover based on the equality C=M or M=T in each individual commodity transaction does not stand up to criticism from the standpoint of reality, because the money supply is primarily a part of the country's working capital, and the needs for the sale of goods in money are determined by the size and speed of the sale of social capital. product, as well as generally accepted forms of settlements and payments.

When analyzing this issue It is extremely important to note that in reality, the funds in the national economic circulation fall into three streams, which at times merge again:

The first flow is the funds used to purchase goods by some participants in the economic process from others. This is money flowing from buyers to sellers - suppliers of raw materials, materials, equipment, etc. In other words, the cash flow from the sale of the final product to enterprises that extract raw materials. Its value is indeed determined depending on the prices and volumes of purchased products.

At the same time, at each stage of the process of production and sale of products, part of the money leaves the process of commodity circulation and forms the cash income of the population. The latter have their own cycle and patterns of circulation. The main feature of the movement of money in this flow is that the timing and frequency of receipt of income do not coincide with the speed of spending money on the purchase of goods and services. In fact, it is necessary to distinguish not one, but at least two rates of money turnover:

when paying income;
when spending income on the purchase of goods, i.e. as a means of servicing commodity circulation.

In the third stream, part of the funds is saved by participants economic processes and then invested in the further development of production in the form of capital.

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