The overall solvency ratio is a standard value. Calculation of enterprise solvency indicators. The value of items excluded from the group of thousand rubles

Calculated by division current assets to short-term liabilities(current liabilities). The initial data for the calculation contains the company's balance sheet.

Calculated in the FinEkAnalysis program in the Solvency Analysis block.

Total liquidity ratio - what it shows

Shows the company's ability to pay off current (short-term) obligations using only current assets. The higher the ratio, the better the solvency of the enterprise. This indicator takes into account that not all assets can be sold urgently.

Liquidity ratios are of interest both to the management of the enterprise and to external subjects of analysis:

• absolute liquidity ratio - for suppliers of raw materials and materials;
• total liquidity ratio- for investors;
• quick liquidity ratio - for banks.

Total liquidity ratio - formula

General formula for calculating the coefficient:

Total liquidity ratio - diagram

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Synonyms

More found about the total liquidity ratio

1. The impact of IFRS on the results of the analysis of the financial position of PJSC Rostelecom
   Debt coverage current liquidity ratio > 2 2.145 1.17 -0.975 1.901 1.233 -0.668 4 Total liquidity ratio 2.0-2.5 0.549 0.434 -0.115 0.745 0.501 -0.244 5 Working capital coverage ratio
2. Company debt management
   Loan interest coverage ratio 0.08 -0.05 0.06 Total liquidity ratio 1.16 0.74 0.89 Cash payables coverage ratio % 5.5 5.7
3. Liquidity of corporate debt: new tools for financial analysis
   We propose to characterize the degree of liquidity of the total amount of debt by the debt liquidity ratio K, which is calculated using formula 2
4. Analysis of financial condition over time
   Deviation 01/01/2015 from 01/01/2011 Total liquidity ratio L1 1.172 1.243 1.345 1.363 2.152 0.98 Absolute liquidity ratio L2 0.096
5. Matrix in working capital management
   In the future, the need for external sources of financing working capital - the permissible value of short-term liabilities - is determined based on the total value of current assets determined according to the production program and the value of current assets financed from own funds based on the logic of maintaining an acceptable level of liquidity. The ratio of the total value of current assets to the calculated permissible the value of short-term liabilities is formed by the current ratio
6. Ranking of enterprises in the group
   Current liquidity ratio L4 Operating capital maneuverability ratio L5 JSC Mitinsky Cannery Example 1.225 0.022 0.038 Total capital turnover ratio D1, turnover Duration of capital turnover D2, days Mobile assets turnover ratio D3,
7. Integral assessment of the working capital management policy of a housing and communal services enterprise
   NP MZ 0.10 0.30 Indicators that characterize the liquidity management policy of working capital Total liquidity ratio Kosch ObS TO 1.0 2.0 Quick liquidity ratio Kbyst ObS - Z
8. Financial stability of the company: problems and solutions
   Current ratio 1.622 1.289 1.063 Total liquidity ratio 0.785 0.618 0.502 Source Authoring based on consolidated financial statements of RAO
9. Improving accounting and analytical support for managing working capital of an organization
   Current liquidity ratio Total liquidity ratio Solvency ratio Management impact on achieving assessment indicators for achieving the target management focus
10. Determining balance sheet liquidity
    Kcl > 0.5 0.8. The projected payment capabilities of the company, subject to the repayment of short-term receivables and the sale of existing inventories, taking into account compensation of costs, is reflected by the current liquidity ratio, other names, total liquidity ratio, total coverage ratio, total coverage ratio of short-term debts, circulation ratio Table 2
11. Liquidity of the enterprise
    There are the following indicators of enterprise liquidity: quick liquidity ratio; urgent liquidity ratio; critical liquidity ratio; intermediate liquidity ratio; current liquidity ratio; total liquidity ratio; absolute liquidity ratio; coverage ratio; solvency recovery ratio; loss of solvency ratio;
12. Analysis of the integral dynamics of financial and economic activities using rating assessment
    In this case, such indicators as the ratio of total liquidity of the balance sheet, the coefficient of financial independence, return on sales and return on assets are considered. However, even the calculated
13. Financial ratios
    Current liquidity ratio Total liquidity ratio Absolute liquidity ratio Coverage ratio Solvency recovery ratio Loss of solvency ratio Coefficient
14. Relative liquidity indicators
    Relative liquidity indicators are the total liquidity ratio of the current liquidity coverage ratio of the quick liquidity ratio of the intermediate liquidity ratio of the acid test ratio
15. Formation of a credit rating of buyers in order to differentiate the terms of a commercial loan
    To do this, you should use the following indicators: general liquidity ratios, autonomy ratios, immobilization ratios, net working capital indicator. Proposed methodology for determining a credit rating
16. Concept, principles and method of managing investment projects based on product resource intensity factors
    The choice is based on the complexity of the action of the general indicator, which takes into account private indicators, the general liquidity coefficient K, the autonomy coefficient, Kfn, the coefficient of provision of own working capital, Ks, and solvency.
17. The relationship between financial risks and indicators of the financial position of an insurance company
    Total turnover ratio 0.77 0.77 0.89 5 Absolute liquidity ratio 0.85 0.97 18.59 6 Autonomy ratio
18. Statistical analysis of the relationship between capital management indicators and the market value of public companies in Russia
    Capital - NWC ratio of total current liquidity Current ratio - CR ratio of own working capital ratio of net
19. The influence of the turnover of assets and liabilities on the solvency of the organization
    Current liquidity ratio ≥ 2 Total solvency ratio ≥ 1 Investment ratio ≥ 1 В В Kovalev
20. Optimization of the balance sheet structure as a factor in increasing the financial stability of the organization
    Forecast values ​​Total current liquidity ratio 1.426 2.329 Absolute liquidity ratio 0.020 0.923 Own working capital coverage ratio

Liquidity ratiocharacterizes the ability of a legal entity to pay its debts with its own property. Let's look at what options for calculating the liquidity ratio exist in our article.

Enterprise liquidity: from absolute to total

The concept of liquidity (i.e., the ability to be sold) applies to the property that constitutes the current assets of an enterprise. It is considered in connection with a quantitative assessment of the possibility of repaying the short-term debts of the enterprise.

Based on the speed of sale, property forming current assets is divided into liquidated assets:

• very quickly (money and short-term financial investments);
• quickly enough (short-term accounts receivable);
• relatively short-lived (reserves).

In accordance with this gradation, 3 main liquidity ratios are calculated:

• absolute (based on the value of the property being sold very quickly);
• average (from the amount of property sold very quickly and fairly quickly);
• total (of the total value of all current assets).

The meaning of these ratios is to compare the value of available property and the amount of short-term debts existing on the same date. That is, each liquidity ratio shows what part of short-term liabilities can be repaid through the sale of each set of types of property.

Since the type of property is linked to the speed of its sale, the calculated coefficients give an idea of ​​the company’s ability to pay off debts in a time-bound manner. And this, in turn, allows us to draw conclusions about the current solvency of the enterprise, analyze its dynamics in retrospect and make forecasts for the future.

How to calculate liquidity ratios

The procedure for calculating liquidity ratios is subject to 1 algorithm: each of them represents the ratio of the value of the corresponding property to the amount of short-term debts. The data for calculation is taken from the sections of the balance sheet.

The value of short-term debts can be determined as a result of Section V, provided that the values ​​of the data for deferred income and estimated liabilities, which are not actually debt, are immaterial. Otherwise, as the denominator liquidity ratios It is better to use the amount of liabilities for borrowed funds and all (ordinary and other) debts to creditors taken along the lines of this section.

In relation to the 2nd option, the denominator of the coefficient formula will look like this:

KLabs = (DenSr + KrFinVl) / (KrKr + KrKredZad + PrObligation),

KLsr = (DenSr + KrFinVl + KrDebZad) / (KrKr + KrKredZad + ProObligation),

CLtotal = OborAct / (KrKred + KrKredAsad + ProObligation),

The following ratio is often used as a formula for the total liquidity ratio:

CLtotal = OborAkt / KrObliaz,

OborAct - the total value of the value of current assets;

KrOliaz - the general value of the value of short-term liabilities.

Liquidity ratios: balance sheet formulas

If we express the formulas for liquidity ratios through the line numbers of the current balance sheet, they will take the following form:

• absolute liquidity ratio:

KLabs = (1250 + 1240) / (1510 + 1520 + 1550),

• urgent liquidity ratio:

KLsr = (1250 + 1240 + 1230) / (1510 + 1520 + 1550),

• total liquidity ratio:

CLtotal = 1200 / (1510 + 1520 + 1550),

where: KLabs - absolute liquidity ratio;

KLsr—term liquidity ratio;

KLtot - total liquidity ratio;

DenSr - amount of funds;

KrFinVl - the amount of short-term financial investments;

KrDebZad - short-term debts of debtors;

OborAct - the total amount of current assets;

KrKred - the amount of short-term borrowed funds;

KrKedrZad - short-term debts to creditors;

Obligation - the amount of other short-term debts.

And the 2nd calculation of the total liquidity ratio will look like this:

KLtotal = 1200 / 1500,

where: KLtot - total liquidity ratio;

1200 - the total value of current assets;

1500 is the total value of short-term liabilities.

What do the standard values ​​of the coefficients show?

The following are considered the standard values ​​of the considered coefficients:

• For absolute liquidity - in the range of 0.2-0.5, which indicates the ability to very quickly repay from 20 to 50% of short-term debts.
• For urgent liquidity - in the range of 0.7-1, i.e. when you can quickly close from 70 to 100% of short-term debts.
• For overall liquidity, it is equal to or greater (but not much) 1, i.e. current assets must cover the amount of short-term liabilities. A coefficient value significantly exceeding 1 indicates ineffective use of working capital.

They are only indicative indicators of solvency. Each of them is a trend indicator and characterizes solvency approximately for some upcoming period in accordance with the liquidity of assets taken into account in the numerator of the indicator and the maturity of liabilities taken into account in the denominator. Solvency is a signal indicator of the financial condition of an organization and is characterized not only by liquidity ratios, but also by absolute data considered in the balance sheet of non-payments and their causes, and by relative ratios. The main signs of an enterprise's solvency, ideally, are the presence of sufficient funds and the absence of overdue short-term debt.

The overall solvency of an enterprise is defined as the ability to cover all obligations of the enterprise (short-term and long-term) with all its assets.

The total solvency ratio is calculated using the formula:

The following normal limitation for the coefficient is natural: Total area>2. The main factor determining the overall solvency is the presence of real equity capital in the enterprise.

Current solvency (Kt.pl) for the reporting period (month, quarter, year) is determined by the formula:

Kt.pl = means of payment of the enterprise / urgent obligations of the enterprise

During the analysis, long-term solvency is also considered. In this case, the ratio of long-term to own is taken as an indicator reflecting the long-term solvency of the organization:

Kd.pl. = p.590 p.490+p.640+p.650

This ratio characterizes the ability to repay long-term loans and the organization’s ability to function for a long time. Increasing the share of debt capital in the structure is considered risky. The organization is obliged to pay interest on loans on time and repay received loans in a timely manner. Accordingly, the higher the value of this ratio, the greater the organization’s debt and the lower the assessment of the level of long-term solvency.

The overall degree of solvency (K4) is an indicator that, in accordance with the specified order of the Federal Service for Financial Recovery, is used for the purposes of monitoring the financial condition of the organization.

It is defined as the quotient of the amount of borrowed funds (liabilities) of the organization by the average monthly gross from sales, i.e.

Page 690 + line 590 balance/Average monthly gross revenue,

And it characterizes the general situation with the solvency of the organization, the volume of its borrowed funds and the timing of possible repayment of the organization’s debt to its creditors.

The structure of debts and methods of lending to an organization are characterized by the distribution of the indicator “overall degree of solvency” into debt ratios for bank loans and loans to other organizations, the fiscal system, and internal debt. The distortion of the debt structure towards trade loans from other organizations, hidden lending due to non-payments to the fiscal system and debt on internal payments negatively characterizes the economic activity of the organization.

Debt ratio for bank loans and loans(K5) is calculated as the quotient of the sum of long-term liabilities and short-term bank loans and loans by average monthly gross revenue:

Page 590 + line 610 balance/Average monthly gross revenue.

Debt ratio to other organizations(K6) is calculated as the quotient of dividing the amount of liabilities in the lines “Suppliers and contractors”, “payable”, “Debt to subsidiaries and dependent companies”, “Advances received” and “Other creditors” by average monthly gross revenue. All these lines functionally relate to the organization’s obligations to direct creditors or its counterparties:

Page 621 + line 622 + line 623 + line 627 + line 628 balance sheet / Average monthly gross revenue.

Debt ratio to the fiscal system(K7) is calculated as the quotient of dividing the amount of liabilities on the lines “Debt to the government” and “Debt to the budget” by the average monthly gross revenue:

Page 623 + line 624 balance sheet / Average monthly gross revenue.

Domestic debt ratio(K8) is calculated as the quotient of dividing the amount of liabilities in the lines “Debt to”, “Debt to participants (founders) for payment of income”, “Deferred income”, “Reserves for future expenses”, “Other short-term liabilities” by average monthly gross revenue:

Page 622 + line 630 + line 640 + line 650 balance / Average monthly gross revenue.

An increase in this ratio characterizes an increase in the share of domestic debt in the total amount of debts.

The degree of solvency for current obligations (K9) is an indicator established by the order of the Federal Service of Russia for Financial Recovery and Bankruptcy “On monitoring the financial condition of organizations and accounting for their solvency” as the main criterion for determining the solvency and insolvency of organizations.

The degree of solvency for current obligations is determined as the ratio of the organization's current borrowed funds (short-term liabilities - page 690 of Form No. 1) to average monthly revenue. The latter is calculated based on gross revenue, including sales revenue for the reporting period (for payment), VAT, and other mandatory payments, divided by the number of months in the reporting period.

Depending on the value of the indicator of the degree of solvency for current obligations, calculated on the basis of data for the last reporting period, organizations are ranked into three groups:

1) solvent organizations whose value of the specified indicator does not exceed 3 months;
2) insolvent organizations of the first category, for which the indicator value ranges from 3 to 12 months;
3) insolvent organizations of the second category, for which the value of this indicator exceeds 12 months.

Current liabilities coverage ratio with current assets(K10) shows how much current liabilities are covered by current assets. It is defined as p.290/p.690.

In addition, the indicator characterizes the payment capabilities of the organization, subject to the repayment of all (including “non-refundable”) and the sale of existing reserves (including illiquid assets). A decrease in this indicator over the analyzed period indicates a decrease in the level of liquidity of assets or an increase in the organization’s losses.

Indicator of equity capital in turnover(K11) (own) is equal to p.490 – p.190.

The presence of equity capital in circulation (own working capital) is one of the important indicators of the financial stability of an organization. The absence of equity capital in the organization’s turnover indicates that all of the organization’s current assets, and possibly some (in the case of a negative indicator) are formed from borrowed funds (sources).

Share of equity capital in working capital(K12) (coefficient of provision with own working capital) The indicator characterizes the ratio of own and borrowed working capital and determines the degree of provision of the organization's economic activities with its own working capital, necessary for its financial stability.
It is defined as (p.490 – p.190)/p.290. H is greater than or equal to 0.1

Autonomy coefficient(K13) (). This indicator determines the share of the organization’s assets that are covered by its own capital (provided by its own sources of formation). The remaining share of assets is covered by borrowed funds. The indicator characterizes the ratio of the organization's own and borrowed capital.
It is equal to p.490/(p.190+p.290) N is greater than or equal to 0.5

To predict changes in the solvency of an enterprise, the above-mentioned “Methodological Provisions...” of the Federal Insolvency Office established a coefficient for restoring solvency, calculated by the formula:

Where Kb.l.1 and Kb.l.0 are, respectively, the actual value of the liquidity ratio at the end and beginning of the reporting period;
Kb.l.norm - standard value of the current liquidity ratio;
6 - period of restoration of solvency, months;
T - reporting period, months.

If Kp.p.> 1, then the enterprise has a real opportunity to restore its solvency, and vice versa, if Kp.p.
If the actual level of Kb.l is equal to the standard value at the end of the period or higher, but there is a tendency for it to decrease, the coefficient of loss of solvency (K.p.) is calculated for a period of three months:

If K.p.> 1, then the enterprise has a real opportunity to maintain its solvency for three months, and vice versa.

Taking into account cash non-payments, as well as violations of internal financial discipline and internal non-payments, the financial condition of the organization can be characterized by the following ranking:

Absolute and normal stability of the financial condition is characterized by the absence of non-payments and the reasons for their occurrence, i.e. the work is highly or normally profitable, there are no violations of internal and external financial discipline;
an unstable financial condition is characterized by violations of financial discipline (delays in wages, use of temporarily free own funds of the reserve fund and economic incentive funds, etc.), interruptions in the flow of money to current accounts and in payments, unstable

Material from the site

Absolute liquidity ratio (Cash ratio)

Absolute liquidity ratio is a financial indicator used in analyzing a company's liquidity by calculating the ratio between all cash assets, cash equivalent assets and all current liabilities.
Synonyms: Cash Ratio, Liquidity Ratio, Cash Liquidity Ratio, Cash Ratio.
The absolute liquidity ratio characterizes the company’s ability to repay current liabilities (and in what proportion) using liquid working capital and other free assets. The available amount of cash is taken into account, as well as its equivalents: marketable securities, deposits and other absolutely liquid assets.
Cash is understood as the total amount of cash held in the organization's cash desk, formed from the initial cash and the difference between income and expenses. Since cash reserves do not generate income, entrepreneurs strive to reduce them to a minimum sufficient for settlements with clients, counterparties and other current costs. Therefore, in banking there are regulatory requirements for the level of cash maintenance. Among commercial enterprises, there is a tendency towards a decrease in the absolute liquidity ratio, that is, a decrease in the need for cash.
Since the Cash Ratio model measures only the most liquid of all assets relative to current liabilities, it is therefore considered the most conservative of all liquidity ratios used.
Cash ratio characteristics:
1) Taken into account in terms of urgent and current liquidity.
2) Used in the company's credit profile.
3) Excludes inventory and accounts receivable from the calculation. That is, the ratio demonstrates the extent to which a company can pay its current obligations without relying on the sale of inventory or relying on the collection of accounts receivable.
4) Characterizes the ability to immediately pay off the current short-term obligations of the enterprise - that is, whether there are resources capable of satisfying the claims of creditors in a critical situation. Therefore, this indicator is taken into account by future suppliers with relatively short credit terms. For strategic investors, the absolute liquidity of an enterprise is less significant.

Calculation of absolute liquidity ratio

Cash liquidity ratio formula:
CR = cash + short-term market investments / short-term liabilities
Data for calculation can be obtained from the balance sheet. It should be taken into account that the formula ignores the time of receipt and payment of funds.

Standard value of Cash Ratio

Current ratio– one of the indicators that are used in the practice of conducting financial analysis of an enterprise, together with the quick liquidity ratio and the absolute liquidity ratio. Current ratio (CR) characterizes the company's ability to pay off current short-term obligations (current liabilities) at the expense of current assets.
There are current (general) and urgent liquidity. The total liquidity of an enterprise is defined as the ratio of the amount of current assets and the amount of current liabilities determined at the beginning and end of the year.
Synonyms for current liquidity ratio: coverage ratio, Current ratio, CR, “liquidity ratio”, “cash asset ratio”, “cash ratio”.

Purpose of KTL

1) Shows the enterprise’s ability to pay off its debts during the duration of one production cycle (the period required for the manufacture and sale of one batch of products).
2) To get a general idea of ​​the company's solvency, that is, its ability to pay debt obligations using available cash, inventories, and accounts receivable.
3) To gain insight into the efficiency of a company's operating cycle or its ability to turn its output into cash. If a company has difficulty paying accounts receivable on time or has a long inventory turnover period, it may face liquidity problems.
4) The components of the ratio (current assets and current liabilities) can be used to calculate the amount of working capital (working capital ratio), which is the ratio of the amount of working capital to the amount of revenue.
5) The current liquidity ratio is of interest not only to the management of the enterprise, but also to external subjects of analysis, in particular to investors.

CR coefficient calculation formula

The coverage ratio is calculated using the formula:
Current liquidity = Current assets / Current liabilities
The company's current assets mean:

• Cash on hand and in bank accounts, as well as cash equivalents.
• Accounts receivable including provision for bad debts.
• The cost of inventories of inventory items that must have a relatively rapid turnover within a year.
• Other current assets (deferred expenses, investments in securities, etc.).

Current liabilities:

• Loans with immediate maturities (within a year)
• Unpaid requirements (suppliers, budget, etc.)
• Other current liabilities.

This is a preliminary encyclopedic article on this topic. You can contribute to the development of the project by improving and expanding the text of the publication in accordance with the rules of the project. You can find the user manual

In this article we will look at the current ratio, which shows the company's ability to pay off current (short-term) obligations using only current assets.

Thanks to its simple calculation formula and information content, the current liquidity ratio has an important place in assessing the financial performance of various industries and is used in a number of effective methods for predicting bankruptcy.

Current ratio. general information

Current (or total) liquidity ratio (k) is a financial value showing the ratio of current assets to current liabilities, or short-term liabilities, which is compiled on the basis of balance sheet information. It is also an indicator of the ability to repay short-term loans using working capital. The higher k is, the more solvent the company is. Its decrease indicates that assets are no longer urgently sold. General formula:

• k = (current assets) : (current liabilities).

Current assets:

• cash (including electronic money) at the cash desk, in bank accounts;
• accounts receivable + provision for bad debts;
• investments in securities;
• material assets and products for sale.

Current responsibility:

• loans for up to one year;
• unpaid obligations to suppliers and the treasury.
• other loans.

Deduction formula for assets and liabilities:

1. k = (Al + Ab + Am) : (Ps + Pk), where
   • Al – Liquid assets;
   • Ab – quickly sold;
   • Am – slowly being realized;
   • Ps – Liabilities of fixed-term obligations;
   • PC – short-term.

Balance formula:

• k = (p. 1200 + p. 1170) : (p. 1500 – p. 1530) – p. 1540).

Purpose of the total liquidity ratio

This value performs the following tasks:

• an indicator of the ability to pay off its obligations during the current production cycle;
• “litmus test” of the company’s solvency, its ability to cover all loans with available amounts;
• efficiency indicator of both a separate operating period and the chosen direction of product turnover;
• important information for investors;
• the components necessary for the formula for a given k are also used when calculating working capital.

Current ratio norm and deviations from it

Current ratio value:

Important! When calculating, we must not forget that assets are unevenly liquid - it is necessary to take into account in detail the speed of their turnover (use the second formula).

Ways to increase the liquidity of an enterprise

To optimize k indicators, the following methods are used:

Important! Shortk True liquidity is not an indicator of a company's cash shortage. Since current assets include receivables, investments, products, etc.

Calculation of the indicator using the example of AVTOVAZ

Using the general formula:

• k (2014) = 49,783/ 86,888 = 0.00001151;
• k(2015) = 40,073/112,867 = 0.00000886;
• k (2016) = 55,807/117,723 = 0.4740535.

Average current liquidity indicator by industry of the Russian Federation

Comparison with other liquidity ratios

Comparative table of existing liquidity deduction ratios:

Important! The norms of the coefficients may vary depending on the industry of the enterprise.

Using the current ratio in predicting bankruptcy

The current liquidity ratio is one of the values ​​that allows you to calculate the state of affairs of a company in the future - bankruptcy or prosperous activity. When making calculations, Edward Malton’s formula is often used:

1. B = – 0.3877 – 1.0736 x k l + 0.0579 x k n. (k l – current liquidity ratio, k n – concentration of hired funds):

• B > 0 – the probability of bankruptcy is low;
• B = 0 – 50/50;
• IN< 0 – чем выше величина, тем вероятнее разорение.

The advantage of the formula is its simplicity. However, it is not adapted for Russian business, since it was created using the example of reporting in foreign countries, so there is a possibility of forecast error. A more accurate formula is the so-called four-phase, but with different components:

1. B = (8.38 x A 1) + A 2 + (0.054 x A 3) + (0.63 x A 4), where

• A 1 – working capital/asset;
• A 2 – net income/own budget;
• A 3 – profit from the sale of products/asset;
• A 4 – net revenue/integral expenses.

Important! It is believed that this formula is capable of predicting the future of the company with a result of up to 80%.

What does a negative current ratio show?

In the literal sense, the value of the indicator cannot be a negative number - it can be small down to one ten-thousandth. Progressive negative dynamics of the value indicate the following:

• incorrect financial policy of the company and distribution of funds;
• oversaturation of obligations to creditors;
• large volume of unsold products;
• about excessive investment;
• the presence of a large number of debts outstanding to the company.
• probable imminent bankruptcy.

Methods for assessing financial condition using the current liquidity indicator

Basic assessment methods involving the coefficient:

1. Selezneva-Ionova model. The methodology is aimed at comparing actual indicators with the standard, identifying the profitability of assets in terms of their net income, as well as an overall assessment of the company's management.
2. Saifullin-Kadykov model. Similar to the previous one, it may be true for analyzing the financial status of companies of various industries and sizes. The success of sales and turnover of your own budget is also calculated.
3. Postyushkov's model. Suitable for assessing the prediction of the ruin of an enterprise with a prediction range of up to six months.

Current ratio: current issues

Answer: All information is taken from the company’s annual financial report and accounting documents.

Question No. 2: Should we focus on the all-Russian norms of the current liquidity ratio?

Answer: Only for information ownership. For each industry, depending on the subject of the Russian Federation where it operates, k indicators vary greatly.

Question No. 3: For whom should k total liquidity be calculated first?

Answer: This information is useful for the head of the enterprise to have, and it may also be required by your creditors and investors.

Question #4: If my calculated ratio is high - more than two, does that mean my business is moving in the right direction?

Answer: Unfortunately, this is not true. High indicators indicate that working capital is not actually working.

Question #5: Can the current ratio be negative?

Answer: No, even its formula does not suggest this. Maybe there is a negative trend or a negative result – less than 1.5.

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