Assessment of liquidity and solvency of the enterprise.

The analysis of solvency and liquidity of the organization is one of the most important aspects of studying its financial condition. This analysis is carried out using certain long-established techniques, which allow you to quickly make calculations and draw some conclusions.

As a rule, at the first stage, the liquidity and solvency of an enterprise are assessed by calculating the coefficients. All these coefficients are calculated in the same way as the ratio of a certain part of the firm's property to the value of its short-term obligations. Liquidity and solvency indicators of the enterprise include the coefficients of the general and intermediate coverage, as well as the absolute liquidity index. When calculating the first indicator, the numerator uses the total value of the company's current assets. They should sum over the amount of short-term debts, but not more than twice. When determining the intermediate coverage, the amount of stocks is excluded from the calculation. Thus, the adequacy of liquid assets is determined when recovering the entire amount of receivables. It is generally accepted that this coefficient should normally also exceed unity. The numerator in determining absolute liquidity includes, as can be understood from the name, only absolutely liquid property. It is considered acceptable if the company can immediately return about a quarter of its most urgent debts. Assessment of liquidity and solvency of the enterprise should also be carried out with the mobilization of funds, which is done with the help of the same name. This ratio is determined by the ratio of formed reserves to the amount of urgent obligations. Obviously, the mobilization of funds in this case means the sale of stocks. However, it should be borne in mind that according to statistics, when selling stocks, it is usually possible to gain only about 40% of their value.

The liquidity and solvency of an enterprise can also be assessed by assessing and studying the liquidity of the company's balance sheet. Most often, for these purposes, the method of constructing and studying the liquidity balance is used. This balance is a certain grouped assets and liabilities of the firm. Traditionally, on each side of the balance sheet, 4 groups are formed, which are ranked by the degree of liquidity or urgency. The company's assets are grouped into the following groups: absolutely liquid, fast, slow and hard-to-sell property. As for the liabilities, the result of the grouping will be the following: the most urgent, short-term and long-term liabilities, as well as liabilities, called permanent. Further, it is necessary to compare the obtained groups by subtracting the corresponding group of liabilities from the group of assets. If this difference is positive, then there is a payment surplus, or, otherwise, a payment deficit. It is believed that the condition of absolute liquidity consists in the presence of a surplus in the first three pairs of property and liabilities and a deficit in the fourth. Inequality in the latter group is regulating and plays an extremely significant role. It characterizes the organization's availability of working capital. The method considered above is more applicable to enterprises of the real economy, since the study of the balance of banks and other financial and credit organizations requires greater detail.

The methods described above are the most popular, it is with their help that the liquidity and solvency of the enterprise are usually assessed. However, this analysis is not sufficient for financial diagnosis, it is necessary to study other aspects of the firm's activities.