Liquidity indicators of the organization

Liquidity of a balance is the availability of working capital in such a size that it is sufficient to pay off short-term liabilities of this enterprise. Liquidity is the basis for the solvency of each enterprise, that is, its ability and ability to fully and timely fulfill its own payment obligations. An important characteristic that influences the conditions and forms of transactions, incl. The ability to get a loan is solvency.

The time required for the transformation of assets into a monetary form (liquidity of assets) must coincide in time with the maturity of the enterprise's liabilities. Liquidity indicators in most countries are regulated by legislation, that is, a specific list of indicators is established and their criteria levels are determined. To assess the performance of enterprises, liquidity indicators are used that determine the permissible ratios of individual passive and active balance sheet items, as well as the relationships within the structure of liabilities and bank assets.

Such a system, as a rule, includes the following liquidity indicators: long-term, current and short-term liquidity. Liquidity indicators reflect the mobility of assets, the stability of liabilities, the correspondence between active and passive operations, the ability of an enterprise to fulfill its obligations.

In Russia, as in other countries, the liquidity norms of balances have been introduced. To assess the financial stability of the company along with absolute indicators of solvency and liquidity, the relative liquidity ratios of the organization are also calculated.

The main liquidity indicators used in the Russian analysis:

• Total liquidity ratio. Based on this coefficient, an overall assessment is made of the change in the financial situation of the enterprise;
• The absolute liquidity ratio shows how much a short-term debt a company can pay off in cash in the near future;
• The critical appraisal factor shows what part of the short-term liabilities an enterprise can repay immediately with funds held in valuable short-term securities in various accounts, as well as due to receipts from settlements;
• The current liquidity ratio reflects the adequacy of the enterprise's funds to pay off current debts;
• The coefficient of maneuverability of the functioning capital shows the share of operating capital immobilized in long-term receivables and in production inventories;
• The share in the assets of current assets depends on which industry the organization belongs to;
• The factor of the enterprise's provision with its own means reflects the availability of its circulating assets of the company necessary for its sustainability.

The structure of economic indicators includes Absolute and Relative indicators of liquidity. Absolute indicators are expressed in monetary or natural units, for example, as pieces, weight, volume, dollars, rubles.

Relative indicators are the ratio of two indicators of different or equal dimensions. In the second case, we are talking about dimensionless indicators characterizing   The ratio, proportion or rate of change of a particular economic value, measured in percent or in terms of a share. In the first case - dimensional indicators that characterize the rate of change of a certain value in a specific period of time, the effectiveness of the use of resources, as well as the sensitivity of a particular value relative to the factor that caused its change.

In general, the liquidity indicators reflect the solvency of the enterprise for its debt obligations.