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Theoretical foundations of liquidity and solvency of the enterprise. The essence and meaning of the solvency of the enterprise The concept and essence of the solvency of the enterprise moluch

Theoretical foundations of liquidity and solvency of the enterprise. The essence and meaning of the solvency of the enterprise The concept and essence of the solvency of the enterprise moluch

The solvency of an enterprise acts as an external manifestation of financial stability, the essence of which is the security of current assets with long-term sources of formation. An enterprise is considered solvent if its available funds, short-term financial investments (securities, temporary financial assistance to other enterprises) and active settlements (settlements with debtors) cover its short-term obligations. To assess the solvency of the enterprise, three relative indicators are used, which differ in the set of liquid assets considered as coverage for short-term liabilities.

Current solvency (liquidity) is one of the most important characteristics of the financial condition of the organization, which determines the ability to pay bills on time and is actually one of the indicators of bankruptcy.

In a normally operating organization (enterprise), there is a financial balance when the state of finance does not interfere with its functioning. This is possible if two fundamental conditions are met:

based on the requirement to ensure a given level of profitability, the organization (enterprise) must, using the provided capital, at least cover the costs associated with its receipt;

based on liquidity requirements, the organization (enterprise) must always be in a state of solvency.

The implementation of these seemingly simple conditions in practice causes many difficulties. The tasks of simultaneously achieving the required profitability and liquidity, as a rule, come into conflict. In real conditions, the desire of an enterprise to increase profitability often causes an adequate decrease in liquidity. The contradictory relationship between profitability and liquidity is explained by a number of fundamental reasons.

In the general case, the growth of the company's profitability is accompanied by an increase in risks, and above all, financial risk. This happens whenever a firm increases its share of debt in its capital structure, thereby increasing its exposure to financial leverage. But ceteris paribus, the growth of accounts payable inevitably leads to a decrease in the liquidity of the enterprise. It is no coincidence that among financiers they often say that the effect of financial leverage lies in the fact that the strong one becomes even stronger, and the weak one even weaker. This is, in general terms, the logical relationship of the most important financial categories: the growth of profitability - the growth of financial risk - the growth of accounts payable - the decrease in liquidity.

The presence of the same fundamental relationships can be easily proved formally, using various standard situations in the analysis. Assume that during a fiscal year a firm has:

unchanged amount of revenue;

a constant level of costs and, consequently, a constant mass of profit (P);

constant volume of non-current assets.

So, solvency is the ability of an organization to pay its debts on time. This is the main indicator of the stability of its financial condition. Sometimes, instead of the term "solvency", they say, and this is generally correct, about liquidity, that is, the possibility of certain objects that make up the balance sheet asset to be sold. This is the broadest definition of solvency. In a closer, specific sense, solvency is the availability of funds and cash equivalents from an enterprise sufficient to pay for accounts payable that require repayment in the near future.

Solvency and financial stability are the most important characteristics of the financial and economic activity of an enterprise in a market economy. If an enterprise is financially stable, solvent, it has an advantage over other enterprises of the same profile in attracting investments, obtaining loans, choosing suppliers and selecting qualified personnel. Finally, it does not come into conflict with the state and society, since pays timely taxes to the budget, contributions to social funds, wages - to workers and employees, dividends - to shareholders, and banks guarantee the return of loans and the payment of interest on them.

The higher the stability of the enterprise, the more it is independent of unexpected changes in market conditions and, therefore, the less the risk of being on the verge of bankruptcy.

Solvency analysis is necessary not only for the enterprise in order to assess and forecast financial activities, but also for external investors (banks). Before issuing a loan, the bank must verify the creditworthiness of the borrower. The same should be done by enterprises that want to enter into economic relations with each other. It is especially important to know about the financial capabilities of a partner if the question arises of providing him with a commercial loan or deferred payment.

Solvency has a positive impact on the implementation of production plans and the provision of production needs with the necessary resources. Therefore, solvency is aimed at ensuring the planned receipt and expenditure of financial resources, the implementation of settlement discipline, the achievement of rational proportions of own and borrowed capital and its most efficient use.

In order to survive in a market economy and prevent the bankruptcy of an enterprise, you need to know well how to manage finances, what the capital structure should be in terms of composition and sources of education, what share should be occupied by own funds, and which should be borrowed.

The main goal of the solvency analysis is to timely identify and eliminate shortcomings in financial activities and find reserves for improving the financial capabilities of the enterprise.

In doing so, it is necessary to solve the following tasks:

1. Based on the study of the causal relationship between various indicators of production, commercial and financial activities, assess the implementation of the plan for the receipt of financial resources and their use from the standpoint of improving solvency.
2. Forecasting possible financial results, economic profitability, based on the real conditions of economic activity and the availability of own and borrowed resources.
3. Development of specific measures aimed at more efficient use of financial resources.

The analysis of the solvency of the enterprise is carried out not only by the managers and relevant services of the enterprise, but also by its founders, investors. In order to study the efficiency of the use of resources, banks to assess credit conditions, determine the degree of risk, suppliers to receive payments on time, tax inspectorates to fulfill the plan for receiving funds to the budget, etc. In accordance with this, the analysis is divided into internal and external.

* Internal analysis is carried out by the company's services and its results are used for planning, forecasting and control. Its goal is to establish a planned flow of funds and place own and borrowed funds in such a way as to ensure the normal functioning of the enterprise, maximizing profits and avoiding bankruptcy.
* External analysis is carried out by investors, suppliers of material and financial resources, regulatory authorities based on published reports. Its goal is to establish an opportunity to invest funds profitably in order to ensure maximum profit and eliminate the risk of loss.

The main sources of information for analyzing the solvency and creditworthiness of an enterprise are the balance sheet (form No. 1), income statement (form No. 2), capital flow statement (form No. 3) and other forms of reporting, primary and analytical accounting data, which decipher and detail individual balance sheet items.

An analysis of the solvency of an enterprise is carried out by comparing the availability and receipt of funds with essential payments. There are current and expected (prospective) solvency. Current solvency is determined on the balance sheet date. An enterprise is considered solvent if it has no overdue debts to suppliers, bank loans and other settlements. The expected (prospective) solvency is determined on a specific upcoming date by comparing the amount of its means of payment with the urgent (priority) obligations of the enterprise on this date.

Introduction. 3

1. The concept and essence of solvency. four

2. Systems and methods for assessing the solvency of the organization. 6

Conclusion. 10

Current solvency (liquidity) is one of the most important characteristics of the financial condition of an organization, which determines the ability to pay bills on time and is actually one of the indicators of bankruptcy.

Based on the requirement to ensure a given level of profitability, an organization (enterprise) must, using the provided capital, at least cover the costs associated with its receipt;

Based on liquidity requirements, the organization (enterprise) must always be in a state of solvency.

The presence of the same fundamental relationships can be easily proved formally, using various standard situations in the analysis. Assume that during a fiscal year a firm has:

Fixed amount of revenue;

A constant level of costs and, therefore, a constant mass of profit (P);

Fixed amount of non-current assets.

2. Systems and methods for assessing the solvency of an organization

Solvency analysis is necessary not only for the enterprise in order to assess and forecast financial activities, but also for external investors (banks). Before issuing a loan, the bank must verify the creditworthiness of the borrower. The same should be done by enterprises that want to enter into economic relations with each other. It is important for them to know about the financial capabilities of a partner if the question arises of providing him with a commercial loan or deferred payment.

One of the most important indicators characterizing the financial stability of an enterprise is its liquidity and solvency, i.e. the ability to timely pay off their payment obligations with cash resources. Solvency is an external manifestation of the financial condition of the enterprise, its stability.

It is possible to assess the ability of an enterprise to fulfill its short-term obligations in a timely manner and in full at the expense of current assets by analyzing the liquidity and solvency of the enterprise.

The assessment of solvency by external investors is carried out on the basis of the characteristics of the liquidity of current assets, which is determined by the time required to turn them into cash. The less time it takes to collect a given asset, the higher its liquidity.

The liquidity of the balance sheet is the ability of a business entity to turn assets into cash and pay off its payment obligations, or rather, it is the degree of coverage of the company's debt obligations by its assets, the period of conversion of which into cash corresponds to the maturity of payment obligations. It depends on the extent to which the amount of available means of payment corresponds to the amount of short-term debt obligations.

The liquidity of assets is the reciprocal of the liquidity of the balance sheet by the time the assets are converted into cash. The less time it takes for this type of asset to acquire a monetary form, the higher its liquidity.

The liquidity of the enterprise is a more general concept than the liquidity of the balance sheet. The liquidity of the balance sheet involves finding means of payment only from internal sources (realization of assets). But an enterprise can attract borrowed funds from outside if it has an appropriate image in the business world and a sufficiently high level of investment attractiveness.

The concepts of solvency and liquidity are very close, but the second is more capacious. Solvency depends on the degree of liquidity of the balance sheet. At the same time, liquidity characterizes both the current state of settlements and the future. An entity may be solvent at the balance sheet date but have adverse future opportunities.

The technical side of the liquidity analysis of the balance sheet is to compare the funds for the asset with the liabilities for the liability. When assets should be grouped according to their degree of liquidity, and liabilities should be grouped according to their maturity and arranged in ascending order of maturity.

The assets of the enterprise, depending on the speed of their transformation into money, are divided into four groups.

The most liquid assets are A1. This group includes cash and short-term financial investments.

Quickly realizable assets - A2. This group includes accounts receivable and other assets.

Slowly sold assets - А3. This group includes the articles of section II of the asset "Inventories" except for the line "Deferred expenses", and from the I section of the balance sheet the article "Long-term financial investments".

Difficult-to-sell assets – А4. This group includes the articles of section I of the balance sheet asset, with the exception of the line included in the group "Slowly realizable assets".

The obligations of the enterprise (balance sheet liability items) are also grouped into four groups and arranged according to the degree of urgency of their payment.

The most urgent obligations - P1. The group includes accounts payable.

Short-term liabilities - P2. The group includes short-term loans and borrowings and other short-term liabilities.

Long-term liabilities - P3. The group includes long-term loans and borrowings.

Permanent liabilities - P4. The group includes lines III of section of the balance sheet plus lines “Debts to participants (founders) for the payment of income”, “Deferred income”, “Reserves for future expenses” from section V. In order to maintain the balance of assets and liabilities, the total of this group is reduced by the value of the line “Deferred expenses” of section II of the asset balance.

UDC 336.647/.648

L.Yu. Zimina

cand. economy Sci., Associate Professor, Department of Economics and Organization of Production, Ulyanovsk State

university"

V.M. Perfilieva

undergraduate,

Federal State Budgetary Educational Institution of Higher Education "Ulyanovsk State

university"

SOLVENCY AND LIQUIDITY AS ELEMENTS OF ANALYSIS OF THE FINANCIAL STATE OF THE ENTERPRISE

Annotation. The article discusses approaches to understanding the essence of the solvency and liquidity of an enterprise, as well as the relationship between these categories. Separate problems in assessing the financial condition of an enterprise in the short term are revealed.

Keywords: solvency of the organization, liquidity of assets, liquidity of the balance sheet, liquidity of the enterprise, liquidity ratios.

L. Yu. Zimina, Ulyanovsk State University

V.M. Perfilyeva, Ulyanovsk State University

SOLVENCY AND LIQUIDITY AS AN ELEMENT OF THE ANALYSIS OF FINANCIAL CONDITION OF THE ENTERPRISE

abstract. This article considers approaches to understanding the nature of solvency and liquidity of the enterprise, also the interrelation of these categories. Specific problems are revealed in the assessment of the financial condition of the company in the short perspectives.

Keywords: organization's solvency, liquidity of assets, balance sheet liquidity, the liquidity of the company, the liquidity ratios.

An enterprise, from the point of view of a systematic approach, is a complex system that consists of many interacting and interconnected elements. For its constant and uninterrupted operation without disrupting the relationship, it is necessary to manage all economic and financial processes. In the system of this management, a special place is given to liquidity and solvency.

Meanwhile, there are no unambiguous and generally accepted definitions of these categories. Researchers interpret their essence differently. It should be noted that the definitions formulated by different researchers do not contradict each other, but rather reflect the priority aspects from the point of view of the authors in assessing the solvency and liquidity of an enterprise.

So, according to Sheremet A. D., the solvency of an organization is a signal indicator in which its financial condition is manifested. By solvency, he means the organization's ability to timely satisfy the payment requirements of suppliers in accordance with business contracts, repay loans, pay staff, make payments to budgets and extrabudgetary funds.

Petrova L.V. considers that solvency is the ability of an enterprise to pay for its long-term obligations. Therefore, an enterprise will be solvent if its assets are greater than external liabilities.

According to Kovaleva V.V., solvency is the readiness of an enterprise to reimburse accounts payable when the payment deadlines come due with current cash receipts.

In turn, Berdnikova T.V. believes that solvency is the ability of an enterprise to timely and in full make settlements on short-term obligations to counterparties.

As Ukhov I.N. writes, solvency means the ability of an enterprise to timely fulfill monetary obligations stipulated by law or an agreement, at the expense of the financial resources at its disposal.

Thus, we can conclude that an organization is solvent if it has the opportunity to fulfill the debt repayment schedule to its creditors without violating contractual terms. And the main signs of solvency are: the presence of sufficient funds in the current account and the absence of overdue accounts payable. It is possible to allocate current and expected solvency. Current solvency is determined on the balance sheet date. An enterprise is considered solvent if it has no overdue debts to suppliers, bank loans and other settlements. Expected solvency is determined at a certain future date by comparing means of payment and senior obligations at that date.

Many scientists also worked on the study of the concept of liquidity of an enterprise. For example, Petrova L.V. believes that an enterprise that can fulfill its short-term obligations by realizing current assets is considered liquid.

According to Bocharov V.V., liquidity is the ability of an organization to quickly fulfill its financial obligations, and, if necessary, quickly realize its funds.

According to Efimova O.E. liquidity is the ability of the creditor to ensure the fulfillment of debt obligations.

I.N. has the same position. Ukhov, in his article the term "liquidity" is described as the mobility of assets of enterprises, firms or banks, ensuring the timely payment of their obligations.

Kovaleva V.V. adheres to a similar position, emphasizing that liquidity is a property of the assets of an economic entity, namely mobility, mobility, which lies in the rapid ability to turn into money.

In a broader sense, the concept of "liquidity" is presented by Ostroumova A.N., who claims that this is an economic term denoting the ability of assets to be quickly sold at a price close to the market.

That is, we can conclude that the concept of liquidity refers only to the assets of the enterprise, since only they can be converted into cash.

funds, while liabilities do not have this capability.

Meanwhile, for example, Eisenberg F.A. and other researchers, depending on the analysis being characterized, distinguish the following types of liquidity:

1. The liquidity of an enterprise's assets is a complex analytical category that characterizes the ability of each specific asset to be transformed into cash. At the same time, the degree of liquidity is determined by two factors: the speed of transformation and the owner's losses from a decrease in the value of an asset as a result of an emergency sale.

2. Balance sheet liquidity is a characteristic of the theoretical accounting ability of an enterprise to turn assets into cash and pay off its obligations, as well as the degree to which liabilities are covered by assets on various payment horizons.

3. The liquidity of an enterprise is understood as the ability to repay the requirements of counterparties both at the expense of its own funds and on the basis of borrowed funds.

The considered points of view lead to the idea that the liquidity of any asset is understood as its ability to be transformed into cash in the course of the envisaged production and technological process, and the degree of liquidity of a particular asset is determined by the duration of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of this type of assets. In the accounting and analytical literature, liquid assets are understood to be assets consumed during one production cycle (year).

Speaking about the liquidity of an enterprise, they mean that it has working capital in an amount that is theoretically sufficient to repay short-term obligations, even if they do not meet the maturity dates stipulated by contracts. In practice, there are also several levels of liquidity of the enterprise: normal, limited and low. They are shown schematically in Figure 1.

normal

characterizes the ability of the enterprise to pay off debts on its obligations on time throughout the year

Figure 1 - Levels of liquidity of the enterprise

Liquidity ratios are used to assess the company's ability to meet its short-term obligations. Calculation formulas and interpretation

liquidity ratios are shown in table 1.

Table 1 - Liquidity ratios and their interpretation

Name of the indicator Calculation formula Characteristic Interpretation of the indicator and recommended value

1. Absolute liquidity ratio (Kal) Kal=(DS+KFV)/ KO where DS - cash, KFV - short-term financial investments, KO - short-term liabilities Reflects part of short-term borrowings, which, if necessary, can be repaid immediately. indicator should be higher than or equal to 0.2, in Russia - from 0.15 to 0.20. A low value indicates a decrease in solvency

2. Current liquidity ratio (Ktl) KTL=(DS+KFV+DZ)/KO 0.5 to 0.8.

3. General liquidity ratio (Kol) Kol \u003d (DS + KFV + DZ + Z) / KO where Z - stocks of commodities and material assets Reflects an assessment of the liquidity of assets, showing how many rubles of the enterprise's current assets account for one ruble of current liabilities, it is necessary that current assets exceed the value of current liabilities In Western practice, the critical value of the indicator is given - 2

Balance sheet liquidity is defined as the extent to which an organization's liabilities are covered by its assets, the maturity of which is equal to the maturity of the liabilities. The liquidity of the company's balance sheet is closely related to its solvency.

Based on the above definitions, it is obvious that liquidity and solvency are not identical concepts, but, nevertheless, are closely related to each other, since liquidity is also analyzed to determine the solvency of an enterprise. In the most general form, solvency and liquidity characterize the financial condition of an enterprise from a short-term perspective, and show whether it can timely and in full make settlements on short-term obligations to counterparties.

Meanwhile, liquidity ratios may characterize the financial position as satisfactory, however, in essence, this assessment may be erroneous if a significant proportion of current assets falls on illiquid assets and overdue receivables. In many ways, solvency depends on the degree of liquidity of the balance sheet. At the same time, liquidity characterizes not only the current state of settlements, but also the prospects.

The assessment of liquidity and solvency can be performed with a certain

a certain degree of accuracy. In particular, as part of the express analysis of solvency, attention is paid to articles characterizing cash on hand and on bank accounts. These articles express the totality of cash, that is, property that has an absolute value, in contrast to any other property that has only a relative value. These resources are the most mobile; they can be included in financial and economic activities at any time. The art of financial management lies precisely in keeping only the minimum necessary amount of funds in the accounts, and the rest, which may be needed for current operational activities, in fast-moving assets.

Thus, the more significant the amount of funds in the current account, the more likely it can be argued that the company has sufficient funds for current settlements and payments. At the same time, the presence of insignificant balances on the current account does not mean at all that the enterprise is insolvent - the funds can be credited to the current account within the next few days, some types of assets, if necessary, are easily converted into cash, etc.

The main problem in ratio analysis is that the end result does not always give the full picture. So, for example, the current liquidity ratio of an enterprise calculated according to the generally accepted methodology is 2, but in practice the enterprise has financial difficulties and has no sources of repayment of accounts payable. This means that a high value of the coefficient is not a guarantee that the company will be able to fully fulfill its obligations.

But there are also reverse situations, when the company's current ratio is barely more than 1, and this indicates an unsatisfactory financial condition of the enterprise. However, the company is profitable and does not experience financial difficulties. This means that enterprises can be considered solvent even when current assets exceed current liabilities by less than 2 times. It all depends on the specifics of the organization. To do this, it is important to analyze the structure of current assets, assess the amount of cash on the current account, it is necessary to compare the structure of current assets with the structure of current liabilities, calculate the indicators of asset and liability turnover, which will give a more accurate assessment of the financial condition.

When calculating liquidity ratios, a problem also arises that carries a logical impoliteness, since all assets are presented on a certain date, and debts that are registered on the same date must be repaid within a certain period of time. So we can conclude that the presence of debts does not indicate the danger of loss of solvency, but only makes you pay attention to the timing of their repayment. This can be illustrated by an example when most of the company's obligations must be repaid in more than six months of the reporting date, then the solvency indicators will no longer look so burdensome, since the denominator of the solvency ratios will become

much less at the time of calculation.

Figure 2 shows a diagram that shows the dependence of solvency on the liquidity of the enterprise and the liquidity of the balance sheet. It can be conditionally compared with a multi-storey building, in which each floor is equivalent, but the construction of the second floor is unacceptable without the first, and the construction of the third floor is not possible without the first and second; if the destruction of the first floor occurs, then the same will happen to the rest.

Thus, the liquidity of the balance is the basis of the solvency and liquidity of the enterprise. That is, liquidity is a method of maintaining solvency. It is easier for an enterprise with a high image and being continuously solvent to maintain its liquidity. The low level of solvency, which can be presented in the form of a lack of cash and the presence of overdue payments, can be accidental (temporary) and chronic (long-term).

Solvency of the enterprise

Enterprise liquidity

Balance liquidity

Image of the enterprise, its investment attractiveness Quality of asset management

Figure 2 - Relationship between liquidity and solvency

enterprises

As a result, when analyzing the state of solvency of an enterprise, it is necessary to pay attention to the causes of financial difficulties, how often they are formed and for what period. The reasons for insolvency may be: non-fulfillment of the plan for the production and sale of products; increase in its cost; non-fulfillment of the profit plan - lack of own sources of self-financing; high tax rate. One of the reasons for the deterioration of solvency may be the misuse of working capital: the diversion of funds into accounts receivable, investment in excess reserves and for other purposes that temporarily do not have sources of financing.

Thus, the analysis of liquidity and solvency is an important link in well-planned financial management in any enterprise. Liquidity difficulties can have very dire consequences for a company, including bankruptcy. In order to increase the liquidity and solvency of the enterprise, first of all, it is necessary to analyze the financial activity of the enterprise in a timely manner.

Bibliography:

1. Berdnikova T.B. Analysis and diagnostics of financial and economic activities of the enterprise: study guide / T.B. Berdnikov. - M.: INFRA-M, 2011. - 224 p.

2. Bocharov V.V. Financial analysis: textbook / V.V. Bocharov. - 2nd ed.

St. Petersburg: Piter, 2009. -240 p.

3. Efimova O.V. Analysis of liquidity indicators / O.V. Efimova // Accounting. - 2014. - No. 6. - S. 54-58.

4. Kovalev V.V. Financial analysis: methods and procedures: textbook / V.V. Kovalev. - M.: Finance and statistics, 2009. - 260 p.

5. Ostroumova A.N. Methods for assessing the absolute indicators of solvency and liquidity / A.N. Ostroumova // Audit and financial analysis. - 2013. - No. 11.

6. Petrova L.V. Analysis and diagnostics of financial and economic activity: a textbook for universities / L.V. Petrova, N.A. Ignatushchenko, T.P. Frolova. - M.: Publishing house of the Moscow State Open University, 2009. - 179 p.

7. Ukhov I.N. Types of solvency and ways to assess it / I.N. Ukhov // Management in Russia and abroad. - 2013. - No. 3. - S. 8-18.

8. Sheremet A.D. Methods of financial analysis of the activities of commercial organizations: a practical guide / A.D. Sheremet, E.V. Negashev. - 2nd ed., revised. and additional - M.: INFRA-M, 2012. - 208 p.

9. Eisenberg F.A. Financial management at the enterprise / F.A. Eisenberg. -Minsk: Higher school, 2014. - 366 p.

Introduction

2.3 Ways to increase liquidity and solvency

Conclusion

Bibliography

Introduction

In modern conditions of a market economy, when market competition is becoming fiercer, as a result of the emergence of more advanced methods and forms of competition between enterprises in the market, research on marketing service organizations is becoming increasingly necessary.

The relevance of the chosen topic lies in the fact that the enterprise is the main and most important link in a market economy. The study, analysis and financial regulation of solvency indicators is currently very necessary for enterprises, since the enterprise is most often not economically developed, not solvent, does not work efficiently, does not effectively use its profits, and does not invest its money effectively. This problem for today's enterprises in the current period is very relevant, significant and important.

The purpose of this study is to study the analysis and financial regulation of indicators of solvency and liquidity of the enterprise and, on their basis, develop recommendations for improving the organization of the marketing service, the effectiveness of marketing management in the analyzed enterprise.

This work has the following structure:

Chapter I Theoretical foundations of liquidity and solvency of the enterprise - the theoretical part, which is aimed at highlighting theoretical issues related to liquidity and solvency.

It consists of the following items:

1.1. The meaning and essence of the concept of enterprise liquidity

1.2. The meaning and essence of the concept of enterprise liquidity

Chapter II. Liquidity and solvency management - a chapter that discusses the regulatory and legal aspects related to liquidity and solvency, as well as ways to improve the financial condition of the enterprise.

This chapter has the following structure:

2.1 Regulatory and methodological aspects of analytical management and assessment of the financial condition of organizations

2.2 Solvency and liquidity management

2.3 Ways to improve financial sustainability

Chapter III.. Analysis of the liquidity and solvency of the enterprise - the final chapter. It contains a general methodology for assessing the liquidity and solvency of an enterprise.

Has the following structure:

3.1 Importance of analysis of liquidity and solvency of the enterprise

3.3 Assessment of the solvency of the enterprise based on the study of cash flows

3.4 Methods for diagnosing the probability of bankruptcy

To achieve this goal of the course work, the following tasks are solved:

1. The value and essence of the liquidity and solvency of the enterprise, as well as the methods of their management are determined;

2. Methods for analyzing the liquidity and solvency of an enterprise are being studied;

3. Ways to improve financial sustainability are being explored;

4. Regulatory and methodological aspects of the analysis are being studied.

1. Theoretical foundations of liquidity and solvency of the enterprise

1.1 The meaning and essence of the concept of liquidity of the enterprise

The understanding of liquidity in modern economic literature and practice is not unambiguous. What is liquidity? The term “liquidity” comes from the Latin “liquidus”, which means fluid, liquid, i.e. liquidity gives this or that object a characteristic of ease of movement, movement. The term “liquidity” was borrowed from the German language at the beginning of the 20th century. Thus, liquidity meant the ability of assets to quickly and easily mobilize. The main points of liquidity have been reflected in the economic literature since the second half of the 20th century, in connection with the unprofitable activities of state banks and enterprises, as well as with the formation of commercial banks. For example, from the point of view of liquidity, economists wrote about the importance of observing the correspondence between the terms of active and passive operations at the end of the 19th century.

In modern economic literature, the term “liquidity” has a wide range of applications and characterizes completely different objects of the economy. In addition to the definitions already given, it is used in combination with other concepts related to both specific objects of economic life (goods, securities) and subjects of the national economy (bank, enterprise, market), as well as to determine the characteristic features of the activities of economic entities (balance sheet of an enterprise , bank balance).

The connection between the categories of money and liquidity is found, for example, in the analysis of the most common object of economic relations - goods. To be liquid, a product must be at least needed by someone, i.e. have a use value and, since it was produced with the direct participation of human labor, have a value, the measurement of which is money. At the same time, to examine the turnover of goods, the amount of money should be sufficient.

In addition, a necessary condition for comparing commodity values in the asset of sale and purchase is the presence of an equivalent product - an intermediary capable of maintaining value throughout the entire period of sale and purchase. Under the gold standard, money fulfilled this function, one might say, absolutely. The continuity of the C-D-T chain was practically ensured by a real guarantee, since the seller could exchange the credit instruments of circulation received from the buyer for metal in banks or demand gold in payment for his goods. Subsequently, the liquidity of a commodity was made dependent not only on public recognition of the labor expended on the production of this commodity, but also on the quality, availability and sufficiency of credit instruments that perform the function of money as a means of circulation.

In modern conditions, to maintain the continuity of the process of commodity-money exchange, credit instruments of circulation that have public recognition are used. Since in the process of commodity-money circulation a gap inevitably arises between buying and selling and, consequently, between the moments of the appearance of a debt obligation and its repayment, in the event of serious financial difficulties for the issuer of a debt obligation, the C-D-T chain may be interrupted. This is one of the main aspects that determine the content of the concept of liquidity - the unconditional fulfillment by the borrower of his obligation to the creditor within a certain period.

Thus, liquidity is connected, firstly, with the ability of instruments of circulation to perform their main functions, secondly, with the sufficiency of money, and thirdly, with the reliability of fulfilling debt obligations in society.

Consequently, liquidity can be defined as social relations that develop over the timely and adequate realization of the exchange value (ownership for an equivalent). In all cases where we are dealing with the circulation of value, whether it is the circulation of commodities or money, the problem of liquidity arises at the final stage of the circulation. The liquidity of an object can be considered such a qualitative characteristic of it, which reflects the ability to return the advanced value after a certain time, and the shorter the return period, the higher the liquidity. Thus, liquidity expresses a social bond that develops constantly when it is necessary to realize value in a timely manner, i.e. the essence of the concept of "liquidity" can be defined as the possibility of timely realization of value.

So, liquidity is the ability of a firm to:

There are several degrees of liquidity in determining the management capabilities of the enterprise, and hence the sustainability of the entire project. Thus, insufficient liquidity usually means that the company is not able to take advantage of discounts and emerging profitable commercial opportunities. At this level, the lack of liquidity means that there is no freedom of choice, and this limits the discretion of management. A more significant lack of liquidity leads to the fact that the company is not able to pay its current debts and obligations. The result is an intensive sale of long-term investments and assets, and in the worst case, insolvency and bankruptcy.

For business owners, insufficient liquidity can mean reduced profitability, loss of control, and partial or complete loss of capital investments. For creditors, the debtor's lack of liquidity may mean a delay in paying interest and principal, or a partial or total loss of funds lent. The current state of a company's liquidity may also affect its relationships with customers and suppliers of goods and services. Such a change may result in the inability of the enterprise to fulfill the terms of contracts and lead to the loss of ties with suppliers. That is why liquidity is given such great importance.

If an enterprise cannot pay off its current liabilities as they fall due, its continued existence is called into question, and this pushes all other performance indicators into the background. In other words, the lack of financial management of the project will lead to the risk of suspension and even its destruction, i.e. to the loss of investor funds.

Liquidity characterizes the ratio of various items of current (current) assets and liabilities of the company and, thus, the availability of free (not related to current payments) liquid resources.

Depending on the degree of liquidity, the assets of the enterprise are divided into the following groups:

A1. The most liquid assets. These include all items of the company's cash and short-term financial investments.

A2. Marketable assets are accounts receivable, payments on which are expected within 12 months after the reporting date.

A3. Slowly realizable assets - items in section II of the balance sheet asset, including inventories, value added tax, receivables (payments for which are expected more than 12 months after the reporting date) and other current assets.

A4. Difficult-to-sell assets - items in section I of the asset balance - non-current assets.

Liabilities of the balance are grouped according to the degree of urgency of payment:

P1. The most urgent obligations, these include accounts payable.

P2. Short-term liabilities are short-term borrowed funds, etc.

P3. Long-term liabilities are balance sheet items related to sections V and VI, i.e. long-term loans and borrowings, as well as deferred income, consumption funds, reserves for future expenses and payments.

P4. Permanent liabilities or stable ones are articles IV of the balance sheet section "Capital and reserves". If the organization has losses, they are deducted.

1.2 The meaning and essence of the concept of solvency of the enterprise

Another indicator that characterizes the financial condition of the enterprise is solvency.

The solvency of an enterprise means:

1. Its ability to timely and fully satisfy the payment requirements of suppliers of equipment and materials in accordance with business contracts, repay loans, pay staff, make payments to the budget.

2. The ability to regularly and timely repay debt obligations is ultimately determined by the availability of funds from the enterprise, which depends on the extent to which partners fulfill their obligations to the enterprise. In addition, with a certain amount of sources of funds, the enterprise has more money, the less other elements of assets. In the process of turnover of funds, the money is either released or redirected as the cost of replenishing non-current and current assets.

The higher the stability of the enterprise, the more it is independent of unexpected changes in market conditions and, therefore, the less the risk of being on the verge of bankruptcy.

The main goal of the solvency analysis is to timely identify and eliminate shortcomings in financial activities and find reserves for improving the financial capabilities of the enterprise.

1. Based on the study of the causal relationship between various indicators of production, commercial and financial activities, assess the implementation of the plan for the receipt of financial resources and their use from the standpoint of improving solvency.

2. Forecasting possible financial results, economic profitability, based on the real conditions of economic activity and the availability of own and borrowed resources.

3. Development of specific measures aimed at more efficient use of financial resources.

· Internal analysis is carried out by enterprise services and its results are used for planning, forecasting and control. Its goal is to establish a systematic flow of funds and place own and borrowed funds in such a way as to ensure the normal functioning of the enterprise, maximizing profits and avoiding bankruptcy.

· External analysis is carried out by investors, suppliers of material and financial resources, regulatory authorities on the basis of published reports. Its goal is to establish an opportunity to invest funds profitably in order to ensure maximum profit and eliminate the risk of loss.

2. Liquidity and solvency management

2.1 Regulatory and methodological aspects of analytical management and assessment of the financial condition of organizations

An analysis of the financial condition of an enterprise is a tool for making managerial decisions, it is one of the stages of management, during which certain managerial decisions are justified and their economic efficiency is assessed.

In domestic and foreign scientific literature, there are many methodological approaches to assessing the financial condition of an organization. Of particular interest are the works of A.D. Sheremeta, V.V. Kovaleva, L.N. Gilyarovskaya, O.V. Efimova, M.V. Melnik and others. The whole range of methodological approaches to assessing the financial condition of an enterprise allows us to distinguish the following stages:

– calculation of the system of financial ratios;

- diagnostics of the probability of bankruptcy of the enterprise.

The results of the enterprise and its financial condition are of interest to owners, managers, creditors, investors, partners, the state, that is, internal and external users of economic information. Each of them, depending on the goals and objectives of the analysis, develops its own methodological approaches to assessing the financial condition and places its own emphasis.

The investor's main goal of analyzing the financial condition of the enterprise is to assess its profitability, profitability, the level of use of production and economic potential.

If there are private goals of analysis for individual entities, the main goal of analyzing the financial condition of an enterprise for all users (external and internal) is to assess the position of the enterprise in the market, its financial and economic activities and management efficiency, as well as identifying the key problems of the enterprise and the best ways to solve them. The Government of the Russian Federation, the Ministry of Economy and the Ministry of Finance of the Russian Federation have been developing and improving methodological approaches to the analysis of the financial condition of enterprises for ten years.

Consider the regulations governing the procedures for analyzing the financial condition.

In 1994, the main document regulating the methodology for assessing the solvency and financial stability of enterprises was Decree of the Government of the Russian Federation dated May 20, 1994 No. 498 “On certain measures to implement the legislation on insolvency (bankruptcy) of enterprises” (currently no longer valid) .

In 1997, by Order of the Ministry of Economy of the Russian Federation of 01.10.97 No. 118 were approved "Guidelines for the reform of enterprises (organizations)", which were intended, among other things, to assess the effectiveness of the financial management of the organization and its financial and economic activities. According to this regulatory act, the analysis of the financial condition of an enterprise is considered as the main tool for effective financial management, contributing to the formation of the strategic goals of the enterprise, "adequate to market conditions."

There was a need to expand the system of indicators that reflect all the processes and phenomena of the economic and financial activities of enterprises.

Such an attempt was made in 2001 in the following regulations:

- Order of the Ministry of Finance of the Russian Federation dated November 6, 2001 No. 274 (as amended by the order of the Ministry of Finance of the Russian Federation dated February 15, 2002 No. 36) “Procedure for checking the current financial condition of an organization that is a recipient of a budget loan for the implementation of investment projects in the coal industry placed on competitive basis";

- Order of the Federal Service of Russia for Financial Recovery and Bankruptcy dated January 23, 2001 No. 16 "Guidelines for the analysis of the financial condition of organizations."

The above regulations have defined the purpose of the analysis of the financial condition as an assessment of the solvency, stability, efficiency and dynamism of the organization's development, as well as its investment attractiveness.

· Decree of the Government of the Russian Federation of June 25, 2003 No. 367 approved Rules for conducting financial analysis by an arbitration manager. These Rules make it possible to analyze the property of enterprises and the sources of its formation, group assets according to the degree of liquidity, liabilities - according to maturity, evaluate the structure of revenue and net profit of enterprises on the basis of their public financial statements (“Balance Sheet”, “Profit and Loss Statement” ). On the basis of financial ratios and the methodology for their calculation presented in the Rules, it is possible to assess absolute and current liquidity, identify the degree of solvency of enterprises, determine financial stability and the presence of overdue payments, assess the return on assets and the level of profitability of economic activities of organizations based on the calculation of the net profit rate.

Decree No. 367 defines the directions for analyzing the external and internal conditions of the activities of enterprises and the markets in which they operate, which, of course, increases its practical value. Its advantages also include the content of requirements for the analysis of investment and financial activities of enterprises, for the analysis of the possibility of break-even activity of enterprises. As the main drawback of this document, one can note the absence of profitability ratios in the composition of financial indicators that characterize the efficiency of using equity, production resources, and investments; asset turnover; capital structures that characterize the financial stability of enterprises. The Rules, like other regulations, do not contain criteria values of financial indicators used to analyze the financial condition of enterprises in various industries and activities.

Decree of the Government of the Russian Federation on the implementation of the Federal Law "On the financial recovery of agricultural producers" No. 52 dated 30.01.03 approved the Methodology for Calculating the Indicators of the Financial Condition of Agricultural Producers, which established the procedure for calculating the indicators of the financial condition of agricultural producers with debts, and the criteria for the values of these indicators. The Methodology considers six indicators: coefficients of absolute, critical and current liquidity, equity, financial independence, financial independence in relation to the formation of reserves and costs; moreover, the value of each coefficient is evaluated in points in accordance with the established criteria, and the type of financial stability of the enterprise (organization) is determined by the sum of the points.

· In 2005, the Government of the Russian Federation decided to develop a methodology for accounting and analyzing the financial condition of strategic enterprises, which makes it possible to evaluate all financial and economic information about the financial and economic activities of an enterprise (Decree of the Government of the Russian Federation of December 21, 2005 No. 792 “On the organization of accounting and analysis financial condition of strategic enterprises and organizations and their solvency ").

· In 2006 , the Ministry of Economic Development and Trade of the Russian Federation by Order No. 104 dated April 21 , 2006 approved the Methodology for Accounting and Analysis of the Financial State and Solvency of Strategic Enterprises and Organizations by the Federal Tax Service . This Methodology establishes the procedure for accounting and analysis of the financial condition of strategic enterprises and defines a set of information for conducting a current analysis of the financial condition of these enterprises. Such information includes financial indicators, methods of their calculation and grouping criteria in accordance with the degree of threat of bankruptcy of enterprises (organizations).

Consideration of the methodological approaches contained in the regulatory and legislative acts showed that the analysis of the financial condition associated with the study of certain aspects of the enterprise's activities makes it possible to diagnose the likelihood of bankruptcy, the possibility of providing a loan, and to evaluate effective directions for the formation of the financial policy of the enterprise. However, this type of analysis is local, thematic. Normative acts do not contain methodological approaches for conducting a comprehensive analysis of the financial condition of enterprises (organizations). In addition, the issue of developing criteria for assessing the financial condition of an enterprise in the context of activities, sectors of the national economy is still relevant.

The efficiency of enterprise management, its financial condition is currently determined not only by liquidity, profitability, profitability, but also by an increase in the “price” of the business, which is the object of predominantly strategic financial management. All of the above actualizes the problem of further improvement of methodological approaches to the financial analysis of enterprises.

2.2 Solvency and liquidity management

One of the important conditions for successful financial management of enterprises is the analysis and diagnosis of its financial condition and financial stability. The main purpose of the analysis is to timely identify and eliminate shortcomings in financial activities and find reserves to strengthen the financial condition of the enterprise and its solvency. With its help, a strategy and tactics for the development of an enterprise are developed, plans and management decisions are justified, their implementation is monitored, reserves for increasing production efficiency are identified, and the performance of the enterprise and its divisions is evaluated.

The results of financial analysis make it possible to identify vulnerabilities that require special attention and develop measures to eliminate them.

At present, in Russia, the problem of assessing the financial condition of an enterprise is extremely relevant, both for various government departments that control the activities of business entities, and for the management of the enterprise itself.

An analysis of the financial condition of an enterprise is the calculation, interpretation and evaluation of a set of financial indicators that characterize various aspects of the organization's activities. The content of the analysis is a deep and comprehensive study of economic information about the functioning of the analyzed business entity in order to make optimal management decisions to ensure the implementation of the enterprise's production programs, assess the level of their implementation, identify weaknesses and on-farm reserves.

The analysis is a comprehensive study of the effect of external and internal, market and production factors on the quantity and quality of products manufactured by the enterprise, the financial performance of the enterprise, and indicate possible prospects for the development of further production activities of the enterprise in the selected area of management.

The object of financial analysis is the financial statements of the enterprise. Analysis of reporting data is carried out in order to timely identify and eliminate shortcomings in the financial activities of the enterprise and find reserves to improve its financial condition.

The main methods of analysis include:

· Horizontal (temporal) analysis - comparison of each reporting position with the previous period, which allows you to identify trends in balance sheet items or their groups and, on the basis of this, calculate basic growth rates.

· Vertical (structural) analysis is carried out in order to determine the structure of the final financial indicators, i.е. identifying the share of individual reporting items in the overall final indicators (identifying the impact of each reporting item on the result as a whole).

· Trend (dynamic) analysis is based on the comparison of each reporting position for a number of years and determining the trend, i.e. general trend and forecasting on this basis the further development of the situation. Trend analysis can be built using statistical methods (moving average, 1st or 2nd order polynomial, etc.) based on both horizontal and vertical analysis data.

· Calculation of financial ratios – calculation of ratios between separate positions of the report or positions of different forms of reporting. Based on the results of calculating financial ratios, a comparative analysis is carried out.

Table No. 1: Methods for analyzing the financial condition of an enterprise.

№	Analysis Methods	Method Essence
1	Horizontal	comparison of each reporting position with the previous period, which makes it possible to identify trends in balance sheet items or their groups and, on the basis of this, calculate the basic growth rates.
2	Vertical	the analysis is carried out in order to determine the structure of the final financial indicators, i.e. identifying the share of individual reporting items in the overall final indicators
3	trendy	is based on comparing each reporting item for a number of years and determining the trend, i.e. general trend and forecasting on this basis the further development of the situation
4	Calculation of financial ratios	calculation of ratios between individual positions of the report or positions of different reporting forms

Solvency management is carried out in at least two directions: increasing solvency and preventing (reducing) non-payments. The solvency of an enterprise can be improved by regularly carrying out various activities that eliminate the causes and factors of reducing solvency, as well as contributing to an increase in the liquidity of assets. This is an increase in the share of current assets in their composition, an increase in the share of liquidity of current assets, and an acceleration in asset turnover.

Of considerable importance is the financial image of the enterprise, which allows the use of commercial (commodity) bills as a means of payment. Increasing solvency, the company simultaneously ensures the reduction and prevention of non-payments. It is always important to strengthen control over payment flows.

For these purposes, it is desirable to draw up plans for the receipt and expenditure of funds, maintain a payment calendar.

In turn, the payment calendar is a tool that is used in the process of managing the company's cash flows. Its value as a tool for managing the company's cash flow lies in establishing a link between cash flows, specific moments or periods of time and the purpose or origin of the amounts of money.

Its main task is to synchronize the dates of receipts and payments of funds in order to ensure the constant solvency of the enterprise.

The company's cash flow management provides a basis for quantitative analysis of the consequences of making complex management decisions and a formal comparison of various decision options. This increases the efficiency of both the activities of the planning and economic services of enterprises and the decisions made by the management of companies.

Forms to prevent non-payment of buyers are advance payments, prepayment, the use of letters of credit, various types of guarantees from financially reliable structures (stable banks, large insurance, financial, investment companies, authorities, etc.), as well as transactions with collateral.

In order to ensure the survival of an enterprise in the current difficult conditions of the global financial crisis, management personnel must, first of all, be able to realistically assess the state of their enterprise, the state of potential competitors and be able to adapt to a rapidly changing external environment.

Considering the financial condition of the enterprise, the following problems can be identified:

low financial stability. It threatens with problems in paying off obligations in the future, the company's dependence on creditors, which means a loss of independence .;

low solvency. This means that in the near future the enterprise may not have enough or already does not have enough funds in order to pay off its obligations in a timely manner, with creditors, the personnel of the enterprise. Pay taxes and fees on time. Problems with the repayment of obligations mean a decrease in the liquidity ratio. The overall liquidity ratio helps to assess the potential ability of the company to pay off current liabilities at the expense of existing current assets.

insufficient satisfaction of the interests of the owner. This problem is related to "low return on equity". This means that the owner receives income that is significantly less than the invested funds. Decreasing returns on capital invested in the company will be indicated by a decrease in profitability indicators.

Liquidity management is the activity of an enterprise, a bank to ensure such an allocation of funds so that at any time it is possible to pay off obligations (to turn assets into cash in a short period of time). There are a number of liquidity management methods:

1) a general method of distributing funds, which consists in distributing borrowed and own funds through placement channels from a single fund in accordance with needs and intuition;

2) the method of asset allocation (conversion of funds), which consists in the placement of assets in accordance with the terms of liabilities (for example, time deposits up to one year are used to provide loans up to one year);

3) a method of scientific management that uses the apparatus of linear programming to optimize the distribution of funds.

2.3 Ways to improve liquidity and solvency

The issues of assessing financial stability in the context of a sharply aggravated non-payment crisis come to one of the first places in the field of financial management of Russian enterprises. However, traditional assessment methods often do not provide an accurate and adequate picture of the state of financial stability and solvency of the enterprise. One of the ways to solve this problem can be the use of a system of indicators of cash flow, which is increasingly resorted to by Russian financial managers.

In the process of making decisions, the management of the enterprise must remember the following:

Liquidity and solvency are the most important characteristics of the rhythm and sustainability of the current activities of the enterprise;

Any current transactions immediately affect the level of solvency and liquidity;

Decisions made in accordance with the chosen policy for managing current assets and sources of their coverage directly affect solvency.

The current asset management policy of an enterprise should pursue the main goal - ensuring a balance:

Between the costs of maintaining current assets in the amount, composition and structure, which guarantees against failures in the technological process;

Income from the smooth operation of the enterprise;

Losses associated with the risk of loss of liquidity;

Income from involvement in the economic turnover of working capital.

At the same time, the solvency of an enterprise, as mentioned above, is determined by the structure and qualitative composition of current assets, as well as the speed of their turnover and its correspondence to the speed of turnover of short-term liabilities.

Current activities can be financed by:

Increasing own working capital (i.e. directing part of the profit to replenish working capital);

Attraction of long-term and short-term sources of financing.

If we assume that the current activities of the enterprise are financed mainly by sources of short-term financing, then the sources of additional funds may be:

Loans and credits;

Accounts payable to suppliers;

Responsibility to staff.

Thus, if an enterprise slows down the turnover rate of current assets, and the management does not take measures to attract additional financing, it may become insolvent, even if its activity is profitable.

When making a decision on attracting additional financing, it is necessary to take into account that each source of funds has its own cost. Moreover, accounts payable are often considered as a free source of financing, but this is not always true. Thus, suppliers of raw materials can provide various discounts depending on the terms of delivery (lot size, payment terms, etc.). If such discounts are refused, accounts payable can become a rather expensive source of financing for the enterprise.

If the enterprise has a tendency to increase the operating cycle, it is necessary to provide for measures to stabilize the financial condition (for example, reducing the shelf life of inventories and inventory items; improving the system of mutual settlements with customers; prompt work with debtors who delay payment, etc.). At the same time, one should take into account the limited possibility of attracting individual sources of equity and debt capital, as well as the increase in the costs of attracting additional sources of financing.

When determining the current asset management policy of an enterprise, the manager must remember that the lack of control over the level of current solvency of the enterprise can lead to financial difficulties, and in the future - sustainable insolvency and, as a result, bankruptcy of the enterprise.

In conclusion, it should be noted once again that any decisions aimed at changing the structure or size of current assets directly affect the solvency of the enterprise, for example:

The decision to purchase an additional batch of raw materials in addition to the already existing stocks due to the expected increase in prices will lead to an increase in the amount of cash in inventory;

The decision to increase sales will require the involvement of additional sources of financing. It should be borne in mind that the company has limited opportunities to increase production and sales within the existing structure of current assets and sources of their financing;

The decision to increase the deferral of payment for delivered products is likely to extend the dead time of cash in receivables, etc.

Thus, we can say that it is also possible to strengthen the solvency of the enterprise in the following ways:

Increasing product quality,

By mobilizing sources that ease financial tension, by developing various forms of rehabilitation (reorganization) of the enterprise, etc.

3. Analysis of liquidity and solvency of the enterprise

The methods of analysis and forecasting of the financial and economic state of an enterprise that are practically used today in Russia lag behind the development of a market economy. Despite the fact that some changes have already been made and are being made to the accounting and statistical reporting, in general, it still does not meet the needs of managing an enterprise in market conditions, since the existing reporting of an enterprise does not contain any special section or a separate form devoted to assessing the financial stability of an individual enterprises. Financial analysis of the enterprise is optional and not mandatory.

Table 2. The objectives of the analysis of liquidity and solvency of the enterprise

Managers

Owners

Lenders

1st goal - Analysis of production activities:

profitability ratios;

Cost analysis;

Operating lever;

Analysis of tax payments.

1st goal - Profitability:

Return on equity;

Earnings per share;

Share price;

Share return;

Business value.

1st goal - Liquidity:

Liquidation value;

Cash flows.

2nd goal - Resource management:

asset turnover;

Inventory turnover;

Accounts receivable turnover;

Working capital management;

Characteristics of accounts payable.

2nd goal - Distribution of profits:

Dividends per share;

Current stock returns;

Dividend payout ratio;

Dividend coverage ratio.

2nd goal - Financial risk:

Share of debt in assets;

Own working capital.

3rd goal - Profitability:

return on assets;

profit margin;

The cost of capital.

3rd goal - Market indicators:

P/E ratio;

The ratio of the market and book value of shares;

Share price dynamics.

Goal 3 - Debt service:

Overdue debt;

Debt Coverage Ratio;

Interest coverage ratio.

The purpose of this work is to analyze liquidity and solvency as the main elements of financial and economic stability, which are components of a general analysis of the financial and economic activities of an enterprise in a market economy.

3.1 Importance of analysis of liquidity and solvency of the enterprise

Solvency and liquidity have a positive impact on the implementation of production plans and the provision of production needs with the necessary resources. Therefore, they are aimed at ensuring the planned receipt and expenditure of financial resources, the implementation of settlement discipline, the achievement of rational proportions of own and borrowed capital and its most efficient use.

The main purpose of the analysis of solvency and creditworthiness is to timely identify and eliminate shortcomings in financial activities and find reserves for improving solvency and creditworthiness.

In doing so, it is necessary to solve the following tasks:

2. Predict possible financial results, economic profitability, based on the real conditions of economic activity and the availability of own and borrowed resources.

3. Develop specific activities aimed at more efficient use of financial resources.

3.2 Analysis of the solvency and liquidity of the enterprise

An external manifestation of financial stability is its solvency, i.e., the availability of reserves and costs with sources of funds. There are four types of financial stability:

Absolute financial stability. Stocks and costs are provided at the expense of own working capital (SOS).

Normal financial stability. Inventories and costs are formed by SOS and long-term loans.

Unstable financial condition. Inventories and costs are supported by SOS, long-term and short-term loans.

Crisis financial condition. Stocks and costs are provided by sources of funds and the company is on the verge of bankruptcy.

For the analysis, the main liquidity ratios are used:

It is calculated as the quotient of current assets divided by short-term liabilities and shows whether the company has enough funds that can be used to pay off short-term liabilities. According to international practice, the values of the liquidity ratio should be in the range from one to two (sometimes up to three). The lower limit is due to the fact that working capital must be at least enough to pay off short-term liabilities, otherwise the company will be at risk of bankruptcy.

The formula for calculating the current liquidity ratio looks like this:

where ОА - current assets taken into account when assessing the structure of the balance - this is the result of the second section of the balance sheet of form No. 1 (line 290) minus line 230 (accounts receivable, payments for which are expected more than 12 months after the reporting date).

KDO - short-term debt obligations - is the result of the fourth section of the balance sheet (line 690) minus lines 640 (deferred income) and 650 (reserves for future expenses and payments).

Quick liquidity ratio(strict liquidity) is an intermediate coverage ratio and shows what part of current assets, minus inventories and receivables, for which payments are expected more than 12 months after the reporting date, is covered by current liabilities. Quick liquidity ratio is calculated by the formula:

Kb. \u003d (A1 + A2): (P1 + P2)

It helps to assess the ability of the firm to repay short-term obligations in the event of a critical situation, when it will not be possible to sell stocks.

To assess the availability of own funds, stability coefficients are calculated.

Absolute liquidity ratio.

The absolute liquidity ratio is determined by the ratio of the most liquid assets to current liabilities and is calculated using the formula

Cable liqu.= (A1): (P1+P2)

This coefficient is the most stringent criterion of solvency and shows what part of the short-term debt the company can repay in the near future. Its value should not be lower than 0.2.

Various liquidity indicators are important not only for managers and financial employees of an enterprise, but are of interest to various consumers of analytical information: absolute liquidity ratio - for suppliers of raw materials and materials, quick liquidity ratio - for banks; coverage ratio - for buyers and holders of shares and bonds of the enterprise.

Autonomy coefficient(K) characterizes the independence of the financial condition of the enterprise borrowed funds. Shows the share of own funds in the total value of the property of the enterprise. The optimal value is 0.5, if the coefficient is greater than 0.5, then the company covers all debts at its own expense.

Financial dependency ratio(K) shows the share of borrowed funds in the financing of the enterprise. The optimal value is from 0.67 to 1.0.

Agility factor(K) shows how much of the SOS is funded by equity. The optimal value is 0.5, and the more the coefficient tends to zero, the more financial opportunities the company has.

The coefficient of security of material and current assets(K) shows how much of the reserves and costs are financed by the SOS. The optimal value is from 0.6 to 0.8.

Current assets security ratio(K) characterizes the share of SOS in the total amount of current assets. The optimal value is not less than 0.1.

Solvency assessment is carried out on the basis of the characteristics of the liquidity of current assets, i.e. the time it takes to turn them into cash. The concepts of solvency and liquidity are very close, but the second is more capacious. Solvency depends on the degree of liquidity of the balance sheet. At the same time, liquidity characterizes not only the current state of settlements, but also the prospects.

Analysis of the liquidity of the balance sheet consists in comparing the assets of the asset, grouped by the degree of diminishing liquidity, with short-term liabilities of the liability, which are grouped by the degree of maturity.

There are 3 liquidity groups:

1. The most mobile part of liquid funds is money and short-term financial investments.

2. The second group includes finished products, goods shipped and receivables. The liquidity of this group of current assets depends on the timeliness of the shipment of products, the execution of bank documents, the speed of payment documents in banks, the demand for products, their competitiveness, the solvency of buyers, forms of payment, etc.

3. A much longer time will be needed to turn inventories and work in progress into finished goods and then into cash. Therefore, they are assigned to the third group.

Accordingly, the payment obligations of the enterprise are divided into three groups:

1) debt, the payment terms of which have already come;

2) debt that should be repaid in the near future;

3) long-term debt.

An analysis of the solvency of an enterprise is carried out by comparing the availability and receipt of funds with payments of essentials. There are current and expected (prospective) solvency.

· Current solvency determined at the balance sheet date. An enterprise is considered solvent if it has no overdue debts to suppliers, bank loans and other settlements.

· Expected (prospective) solvency b is determined on a specific upcoming date by comparing the amount of its means of payment with urgent (priority) obligations of the enterprise on this date.

To assess the prospective solvency, the following liquidity indicators are calculated: absolute, intermediate and general.

· Absolute liquidity indicator is determined by the ratio of liquid funds of the first group to the entire amount of short-term debts of the enterprise (V section of the balance sheet). Its value is considered sufficient if it is above 0.25 - 0.30. If an enterprise is currently able to pay off all its debts by 25-30%, then its solvency is considered normal.

The ratio of liquid funds of the first two groups to the total amount of short-term debts of the enterprise is intermediate liquidity ratio. A 1:1 ratio usually satisfies. However, it may not be sufficient if a large proportion of liquid funds is accounts receivable, some of which is difficult to collect in a timely manner. In such cases, a ratio of 1.5:1 is required.

· General liquidity ratio is calculated as the ratio of the total amount of current assets to the total amount of short-term liabilities. A coefficient of 1.5-2.0 usually satisfies.

In the theory and practice of a market economy, some other indicators are also known that are used to detail and deepen the analysis of solvency prospects. The most important of these are income and the ability to earn, since these factors are decisive for the financial health of the enterprise. The ability to earn is understood as the ability of the enterprise to constantly receive income from its core activities in the future. To assess this ability, the cash adequacy ratios and their capitalization are analyzed.

Sufficiency ratio Money(Kds) reflects the ability of the enterprise to earn them to cover capital expenditures, increase in working capital and pay dividends. To eliminate the influence of cyclicality and other randomness, 5 years of data are used in the numerator and denominator. The calculation is made according to the following formula:

Sufficiency ratio Money, equal to one, shows that the enterprise is able to operate without resorting to external financing. If this coefficient is below one, then the enterprise is not able to maintain the payment of dividends and the current level of production due to the results of its activities.

Cash capitalization ratio(Kkn) is used in determining the level of investment in the assets of the enterprise and is calculated by the formula:

The level of capitalization of funds is considered sufficient in the range of 8-10%.

The enterprise must regulate the availability of liquid funds within the limits of the optimal need for them, which for each specific enterprise depends on the following factors:

the size of the enterprise and the volume of its activities (the greater the volume of production and sales, the greater the stock of inventory items);

industries and production (demand for products and the rate of receipt from its implementation);

The duration of the production cycle (the value of work in progress);

the time required to renew stocks of materials (the duration of their turnover);

the seasonality of the enterprise;

general economic situation.

If the ratio of current assets and current liabilities is lower than 1:1, then we can say that the company is unable to pay its bills. The ratio of 1:1 assumes the equality of current assets and short-term liabilities. Taking into account the varying degree of liquidity of assets, it can be safely assumed that not all assets will be sold urgently, and, therefore, in this situation there is a threat to the financial stability of the enterprise. If the value of Kt.l. significantly exceeds the ratio of 1:1, it can be concluded that the company has a significant amount of free resources generated from its own sources.

On the part of creditors of the enterprise, this option for the formation of working capital is the most preferable. At the same time, from the point of view of the manager, a significant accumulation of inventories at the enterprise, the diversion of funds into receivables may be associated with inept asset management of the enterprise.

Various liquidity indicators not only provide a versatile description of the stability of the financial position of an enterprise with varying degrees of accounting for liquid funds, but also meet the interests of various external users of analytical information. So, for example, for suppliers of raw materials and materials, the absolute liquidity ratio (Ka.l.) is most interesting. The bank lending to this enterprise pays more attention to the intermediate liquidity ratio (Kp.l.). Buyers and holders of shares and bonds of the enterprise to a greater extent evaluate the financial stability of the enterprise by the current liquidity ratio (Kt.l.).

It should be noted that many enterprises are characterized by a combination of low interim liquidity ratios with a high total coverage ratio. This is due to the fact that enterprises have excessive stocks of raw materials, materials, components, finished products, and often unjustifiably large work in progress.

The unreasonableness of these costs leads ultimately to a shortage of funds. Hence, even with a high total coverage ratio, it is necessary to identify the state and dynamics of its components, especially for those items that are included in the third group of balance sheet assets.

If an enterprise has a low interim liquidity ratio and a high total coverage ratio, the deterioration of these turnover indicators indicates a deterioration in the solvency of this enterprise. In order to more objectively assess the solvency of the enterprise when a deterioration is detected in it. At the same time, it is necessary to separately understand the reasons for delays in payment for products and services by consumers, the accumulation of excessive stocks of finished products, raw materials, materials, etc. These reasons may be external, more or less independent of the analyzed enterprise, or may be internal. But, first of all, it is necessary to calculate the liquidity ratios mentioned above, determine the deviation in their level and the size of the influence of various factors on them.

3.3 Assessment of the solvency of the enterprise based on the study of cash flows

For prompt internal analysis of current solvency, daily control over the receipt of funds from the sale of products, repayment of receivables and other cash receipts, as well as for control over the fulfillment of payment obligations to suppliers, banks and other creditors, an operational payment calendar is compiled, in which, with on the one hand, cash and expected means of payment are counted, and on the other hand, payment obligations for this period.

The calendar is compiled on the basis of data on the shipment and sale of products, on the purchase of means of production, documents on payroll calculations, on the issuance of advances to employees, bank statements, etc.

To determine the current solvency, it is necessary to compare means of payment on the relevant date with payment obligations on the same date.

Poor solvency, i.e. lack of funds and late payments, can be occasional and chronic. Therefore, when analyzing the state of solvency of an enterprise, it is necessary to consider the causes of financial difficulties, the frequency of their formation and the duration of overdue debts.

Reasons for insolvency may include:

Decrease in production and sales volumes, increase in its cost, decrease in the amount of profit and, as a result, a lack of own sources of self-financing of the enterprise;

· improper use of working capital: diversion of funds into receivables, investment in excess stocks and for other purposes that temporarily do not have sources of financing;

insolvency of the company's clients;

High level of taxation, penalties for late or incomplete payment of taxes.

To find out the reasons for the change in solvency indicators, the analysis of the implementation of the plan for the inflow and outflow of funds is of great importance. To do this, the data of the cash flow statement is compared with the data of the financial part of the business plan.

First of all, it is necessary to establish the implementation of the plan for the receipt of cash from operating, investment and financial activities and find out the reasons for the deviation from the plan. Particular attention should be paid to the use of funds, because even with the implementation of the revenue part of the enterprise's budget, overspending and irrational use of funds can lead to financial difficulties.

The expenditure part of the financial budget of the enterprise is analyzed for each article with the clarification of the reasons for overspending, which may be justified and unjustified. Based on the results of the analysis, reserves should be identified to increase the planned inflow of funds to ensure the stable solvency of the enterprise in the future.

3.4 Methods for diagnosing the probability of bankruptcy

Bankruptcy is the inability recognized by the arbitration court or declared by the debtor to fully satisfy the claims of creditors for monetary obligations and for the payment of other obligatory payments.

The main sign of bankruptcy is the inability of the enterprise to ensure the fulfillment of the requirements of creditors within three months from the date of maturity of payments. After this period, creditors are entitled to apply to the arbitration court to declare the debtor enterprise bankrupt.

The insolvency of a business entity may be:

· "unfortunate" - arises not through one's own fault, but due to unforeseen circumstances;

· "false" - as a result of deliberate concealment of one's own property in order to avoid paying debts to creditors;

· "Careless" due to inefficient work, risky operations.

In the first case, the state should provide assistance to enterprises to overcome the crisis. In the second case, malicious bankruptcy is a criminal offense. The most common is the third type of bankruptcy.

"Careless" bankruptcy occurs, as a rule, gradually. In order to predict and prevent it in time, it is necessary to systematically analyze the financial condition, which will make it possible to detect its "pain" points and take specific measures to financially improve the economy of the enterprise.

To diagnose the probability of bankruptcy, several methods are used based on the application:

Analysis of an extensive system of criteria and features;

Limited range of indicators;

Integral indicators calculated using:

scoring models;

Multiplicative discriminant analysis.

Using first method bankruptcy signs are usually divided into two groups:

First group- indicators indicating possible financial difficulties and the likelihood of bankruptcy in the near future:

· Recurring significant losses in core activities, expressed in a chronic decline in production, reduced sales and chronic unprofitability;

the presence of chronically overdue accounts payable and receivable;

· low values of liquidity ratios and tendencies to their decrease;

· an increase to dangerous limits of the share of borrowed capital in its total amount;

· deficit of own working capital;

· systematic increase in the duration of capital turnover;

Existence of excess stocks of raw materials and finished products;

a drop in the market value of the company's shares, etc.

Second group- indicators, the unfavorable values of which do not give grounds to consider the current financial condition as critical, but signal the possibility of a sharp deterioration in the future if effective measures are not taken:

· excessive dependence of the enterprise on any one specific project, type of equipment, type of asset, raw material market or sales market;

loss of key counterparties;

underestimation of the renewal of equipment and technology;

loss of experienced management staff;

forced downtime, irregular work;

ineffective long-term agreements, etc.

Second method diagnosing the insolvency of enterprises - the use of a limited range of indicators, which include:

current liquidity ratio;

The coefficient of provision with own working capital;

Restoration (loss) coefficient of solvency.

In accordance with the current rules, an enterprise is declared insolvent if one of the following conditions is met:

o the current liquidity ratio at the end of the reporting period is below the standard value;

o the ratio of the enterprise's own working capital at the end of the reporting period is below the standard value;

o coefficient of recovery (loss) of solvency is less than one.

Third method diagnostics of the probability of bankruptcy - an integral assessment of financial stability based on scoring analysis. Its essence lies in the classification of enterprises according to the degree of risk, proceeding from the actual level of financial stability indicators and the rating of each indicator, expressed in points based on expert assessments.

Consider a simple scoring model with three balance sheet indicators (Table 2)

Class I - enterprises with a good margin of financial stability, allowing you to be sure of the return of borrowed funds;

Class II - enterprises that demonstrate a certain degree of debt risk, but are not yet considered as risky;

III class - troubled enterprises;

Class IV - enterprises with a high risk of bankruptcy even after taking measures for financial recovery. Lenders risk losing their funds and interest;

V class - enterprises of the highest risk, practically insolvent.

Table 3. Grouping of enterprises into classes according to the level of solvency

Index	Class boundaries according to criteria
Index	I class	II class	III class	IV class	V class
Return on total capital, %	30 and above (50 points)	29.9 - 20 (49.9 - 35 points)	19.9 - 10 (34.9 - 20 points)	9.9 - 1 (19.9 - 5 points)	Less than 1 (0 points)
Current liquidity ratio	2.0 and above (30 points)	1.99 - 1.7 (29.9 - 20 points)	1.69 - 1.4 (19.9 - 10 points)	1.39 - 1.1 (9.9 - 1 points)	1 and below (0 points)
Financial Independence Ratio	0.7 and above (20 points)	0.69 - 0.45 (19.9 - 10 points)	0.44 - 0.30 (9.9 - 5 points)	0.29 - 0.20 (5 - 1 points)	Less than 0.2 (0 points)
Class boundaries	100 points and above	99 - 65 points	64 - 35 points	34 - 6 points	0 points

Conclusion

Summarizing the work performed, we formulate the main results of the study and the conclusions drawn on their basis.

Solvency is an external manifestation of the financial stability of an enterprise and reflects the ability of an economic entity to pay its debts and obligations in a given specific period of time.

Solvency is the availability of cash and cash equivalents sufficient for the settlement of accounts payable requiring immediate repayment.

The main features of solvency are:

a) the presence of a sufficient amount of funds in the current account;

b) the absence of overdue accounts payable.

The financial stability of the company characterizes its financial position from the standpoint of the sufficiency and efficiency of the use of equity capital. Solvency indicators, together with liquidity indicators, characterize the reliability of the company. If financial stability is lost, then the probability of bankruptcy is high, the enterprise is financially insolvent.

Liquidity is the ability of a firm to:

1) respond quickly to unexpected financial challenges and opportunities;

2) increase assets with an increase in sales;

3) to return short-term debts by the usual conversion of assets into cash.

The liquidity of an asset is its ability to be converted into cash. The degree of liquidity is determined by the duration of the time period during which this transformation can be carried out.

Consideration of the methodological approaches contained in the regulatory and legislative acts contained in the second chapter showed that the analysis of the financial condition associated with the study of certain aspects of the enterprise's activities makes it possible to diagnose the likelihood of bankruptcy, the possibility of providing a loan, and evaluate effective directions for the formation of the financial policy of the enterprise. However, this type of analysis is local, thematic. Normative acts do not contain methodological approaches for conducting a comprehensive analysis of the financial condition of enterprises (organizations). In addition, the issue of developing criteria for assessing the financial condition of an enterprise in the context of activities, sectors of the national economy is still relevant.

The solvency of the enterprise can be increased in the following ways:

improve product quality,

Increase the size of loans and credits;

Increase accounts payable to suppliers;

Increase debt to staff.

Mobilize sources that ease financial tension by developing various forms of sanitation (sanitization) of the enterprise, etc.

We also determined for ourselves what financial analysis is and found out that in the traditional sense, financial analysis is a method for assessing and predicting the financial condition of an enterprise based on its financial statements.

It is customary to distinguish two types of financial analysis - internal and external. Internal analysis is carried out by employees of the enterprise (financial managers). External analysis is carried out by analysts who are outsiders to the enterprise (for example, auditors).

Analysis of the financial condition of the enterprise has several goals:

Determining the financial position;

Identification of changes in the financial condition in the spatio-temporal context;

Identification of the main factors causing changes in the financial condition;

Forecast of the main trends in financial condition

Summing up the work, we can say that solvency and liquidity are the most important indicators of the financial condition of the enterprise. Based on the analysis, it is possible to draw a conclusion about the development trends of the enterprise, to study the investment attractiveness of the project, and also to adjust its activities at one stage or another in time. Also, this analysis can show the probability of bankruptcy, which is very important for the enterprise and investors, especially in the situation that has developed on the market in our time.

Bibliography

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2. Vasilyeva, L. S., Petrovskaya, M. V. Financial analysis: a textbook for students of higher educational institutions studying in economic specialties. - 2nd ed., revised. and additional - Moscow: KnoRus, 2007. - 804 p. (1390937 - ChZ 1390938 - AB)

3. Zharkovskaya, E. P. Anti-crisis management: textbook: [for students in the specialties "Accounting, analysis and audit", "Management of organizations", "Management and marketing"] / E. P. Zharkovskaya, B. E. Brodsky . - 3rd ed., Rev. and additional - Moscow: Omega-L, 2006. - 355 p. (1375679 - ChZ 1375680 - AB)

4. A comprehensive economic analysis of economic activity: a textbook for students studying in the specialties "Accounting, analysis and audit", "Finance and credit", "Taxes and taxation" / [A. I. Alekseeva, Yu. V. Vasiliev, A. V. Maleeva, L. I. Ushvitsky]. - 2nd ed., revised. and additional - Moscow: KnoRus, 2009. - 687 p. (1418298 - CZ)

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8. Economics of the firm / ed. IN AND. Terekhin. - Ryazan: Style, 2000

9. Heddervik K. Financial and economic analysis of enterprises - M .: 2006

10. Guidelines for assessing the financial condition of organizations dated January 23, 2005 No. 16

11. Order of the Federal Financial Monitoring Service of May 23, 2008 N 130 "On approval of the Administrative Regulations for the Federal Financial Monitoring Service to perform the state function of harmonizing the internal control rules of organizations engaged in transactions with cash or other property, in the field of activity of which there are no supervisory authorities"

12. Journal "Financial Research", No. 4, 2007

13.Finance of enterprises: account. For universities on eq. specialist. // ed. Kolchina N.V. M.: UNITI. - 2004. - p. 294-299

14. Chuprov S.V. Analysis of standards for indicators of financial stability of the enterprise. // Finance. - 2003. - No. 2. - p. 15-22

15. Zaruk N.,. Vinnichek L. Management of financial sustainability of the enterprise. // APK: economics and management. - 2002. - No. 12. - p. 64-82

16. Guzel Zaripova. Increasing the financial stability of agricultural enterprises. // Economics of agriculture in Russia. - 2001. - No. 10. - p. 31

17. Appendix 12 Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”

18. Commentary on Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”

19.http://www.sifbd.ru/magazine/books/collection/ss_2007/50

20.http://www.consultant.ru/online/base

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TEST

Discipline: Anti-crisis management

Topic: The essence of the organization's solvency

1. Introduction

2. The essence of the solvency of the organization and indicators of its assessment

3. The purpose of the analysis of the solvency of enterprises

4. Internal and external analysis of the solvency of enterprises

5. Conclusion

6. References

Introduction

The transition to a market economy requires enterprises to increase production efficiency, competitiveness of products and services based on the introduction of scientific and technological progress, effective forms of management and production management, overcoming mismanagement, enhancing entrepreneurship, and initiative. An important role in the implementation of these tasks is given to the analysis of the solvency and creditworthiness of the enterprise. It allows you to study and evaluate the security of the enterprise and its structural divisions with its own working capital as a whole, as well as for individual divisions, determine the solvency indicators of the enterprise, establish a methodology for rating the borrowers and the degree of risk of banks.

Solvency assessment is also the main element of the analysis of the financial condition, necessary for control, allowing to assess the risk of violation of obligations under the company's settlements.

The essence of solvencyorganizationsand indicatorsherestimates

Market economic conditions oblige the enterprise at any time to be able to pay off external obligations (ie, be solvent) or short-term obligations (ie, be liquid).

An enterprise is considered solvent if its total assets are greater than its long-term and short-term liabilities. An enterprise is considered liquid if its current assets are greater than its short-term liabilities. In addition, for the successful management of financial activities, cash (cash) is more important for an enterprise than profit, since their absence in bank accounts at some point can lead to a financial crisis.

A preliminary assessment of the financial position of the enterprise is carried out on the basis of the data of the balance sheet, as well as the Appendix to the balance sheet of the enterprise.

At this stage of the analysis, an initial idea of the enterprise's activities is formed, changes in the composition of the enterprise's property and their sources are identified, and relationships between indicators are established.

For the convenience of such an analysis, it is advisable to use the so-called compacted analytical balance - net, formed by adding homogeneous elements of balance sheet items in the necessary analytical sections (real estate, current assets, etc.).

The ability of an enterprise to pay its short-term obligations is called liquidity. In other words, an enterprise is considered liquid if it is able to meet its short-term obligations by realizing current assets.

The financial position of an enterprise is considered stable if it covers with its own funds at least 50% of the resources necessary for normal economic activity, effectively uses financial resources, observes financial credit and settlement discipline, in other words, is solvent.

The financial position is determined based on the analysis of liquidity and solvency, as well as an assessment of financial stability. The task of analyzing the liquidity of the balance arises in connection with the need to assess the creditworthiness of the organization in the process of the relationship of the enterprise with the credit system and other enterprises.

During the analysis of creditworthiness, calculations are carried out to determine the liquidity of the enterprise, which is characterized by liquidity ratios:

1. Determination of the current liquidity ratio - shows what part of current liabilities for loans and settlements can be repaid by mobilizing all current assets, i.e. how many financial resources account for 1 rub. current liabilities.

2. Quick liquidity ratio - reflects the predictive capabilities of the organization, subject to timely settlements with debtors, and characterizes the expected solvency for a period equal to the average duration of one turnover of receivables.

3. Absolute liquidity ratio, calculated as the ratio of cash and marketable securities to short-term liabilities. Short-term liabilities of the enterprise, represented by the sum of the most urgent liabilities and short-term liabilities, include: accounts payable and other liabilities (taking into account the comment on the ratio of accounts payable and other liabilities; this comment also applies to the short-term debt ratio); loans not repaid on time; short-term loans and borrowings. The absolute liquidity ratio shows what part of the short-term debt the company can repay in the near future.

4. The overall solvency ratio - shows how much own funds account for 1 rub. both short-term and long-term liabilities. This ratio reflects the prospective solvency when it is analyzed whether the organization is able to repay all types of obligations at its own expense.

The purpose of the analysis of the solvency of enterprises

One of the indicators characterizing the financial condition of an enterprise is its solvency, i.e. the ability to pay off their payment obligations with cash resources in a timely manner.

Solvency has a positive impact on the implementation of production plans and the provision of production needs with the necessary resources. Therefore, solvency as an integral part of economic activity is aimed at ensuring the planned receipt and expenditure of financial resources, the implementation of settlement discipline, the achievement of rational proportions of equity and borrowed capital and its most efficient use.

The main purpose of the analysis is to timely identify and eliminate shortcomings in financial activity and find reserves for improving solvency.

In doing so, it is necessary to solve the following tasks:

Based on the study of the cause-and-effect relationship between various indicators of industrial, commercial and financial activities, assess the implementation of the plan for the receipt of financial resources and their use from the standpoint of improving the solvency and creditworthiness of the enterprise.

Forecasting possible financial results, economic profitability, based on the real conditions of economic activity and the availability of own and borrowed resources.

Development of specific measures aimed at more efficient use of financial resources.

The analysis of the solvency of the enterprise is carried out not only by the managers and relevant services of the enterprise, but also by its founders, investors. In order to study the efficiency of resource use, banks to assess credit conditions, determine the degree of risk, suppliers to receive payments in a timely manner, tax inspectorates to fulfill the plan for receiving funds to the budget, etc. In accordance with this, the analysis is divided into internal and external.

Internal and external analysis of the solvency of enterprises

Internal analysis - is carried out by the enterprise services and its results are used for planning, forecasting and control.

Its goal is to establish a systematic flow of funds and place own and borrowed funds in such a way as to ensure the normal functioning of the enterprise, maximizing profits and avoiding bankruptcy.

External analysis - carried out by investors, suppliers of material and financial resources, regulatory authorities on the basis of published reports.

Its goal is to establish an opportunity to invest funds profitably in order to ensure maximum profit and eliminate the risk of loss.

An analysis of the solvency of an enterprise is carried out by comparing the availability and receipt of funds with payments of essentials. There are current and expected (prospective) solvency.

Current solvency is determined on the balance sheet date. An enterprise is considered solvent if it has no overdue debts to suppliers, bank loans and other settlements.

The expected (prospective) solvency is determined on a specific upcoming date by comparing the amount of its means of payment with the urgent (priority) obligations of the enterprise on this date.

To determine the current solvency, it is necessary to compare the liquid assets of the first group with the payment obligations of the first group. Ideally, if the coefficient is one or a little more. According to the balance sheet, this indicator can be calculated only once a month or quarter. Enterprises make settlements with creditors every day. Therefore, in order to quickly analyze the current solvency, daily control over the receipt of funds from the sale of products, from the repayment of receivables and other cash receipts, as well as to control the fulfillment of payment obligations to suppliers and other creditors, a payment calendar is drawn up, in which, on the one hand , cash and expected means of payment are calculated, and on the other hand - payment obligations for the same period (1, 5, 10, 15 days, month).

When analyzing solvency, in addition to quantitative indicators, one should study qualitative characteristics that do not have a quantitative change, which can be characterized as depending on the financial flexibility of the enterprise.

Financial flexibility is characterized by the ability of an enterprise to withstand unexpected interruptions in cash flow due to unforeseen circumstances. This means the ability to borrow from various sources, increase share capital, sell and move assets, change the level and nature of the enterprise in order to withstand changing conditions.

The ability to borrow money depends on various factors and is subject to rapid change. It is determined by profitability, stability, the relative size of the enterprise, the situation in the industry, the composition and structure of capital. Most of all, it depends on such an external factor as the state and direction of changes in the credit market. The ability to obtain credit is an important source of cash when it is needed, and is also important when a business needs to extend short-term loans. Pre-agreed financing or open credit lines (a loan that an enterprise can take out within a certain period and on certain conditions) are more reliable sources of obtaining funds when needed than potential financing. When assessing the financial flexibility of an enterprise, the rating of its bills, bonds and preferred shares is taken into account; limiting the sale of assets; the degree of randomness of spending; and the ability to respond quickly to changing conditions such as a strike, a drop in demand, or the elimination of sources of supply.

Conclusion

One of the most important criteria for the financial position of an enterprise is the assessment of its solvency, which is commonly understood as the ability of an enterprise to pay for its long-term obligations. Therefore, a solvent enterprise is one whose assets are greater than external liabilities.

The ability of an enterprise to pay its short-term obligations is called liquidity. An enterprise is considered liquid if it is able to meet its short-term obligations by selling current assets.

To assess the solvency of an enterprise in domestic practice, the value of net assets and their dynamics are studied. Net assets of the enterprise represent the excess of assets over liabilities taken into account.

The most general indicator of solvency is the coverage indicator (current liquidity), which is calculated as a quotient of current assets divided by short-term liabilities and shows whether the company has enough funds that can be used to pay off its short-term liabilities within a certain period.

Bibliography

1. Anti-crisis management.: Textbook. - 2nd ed.: add. and revised / Ed. Prof. EM. Korotkov. - M.: INFRA - M, 2007. - 620 p.

2. Anti-crisis management. Theory and practice: a textbook for university students studying in the specialties of economics and management / V.Ya. Zakharov, A.O. Blinov, D.V. Khavin - M.: UNITY-DANA, 2007. - 287 p.

3. Blank I.A. Anti-crisis financial management of the enterprise. - K .: Elga, Nika-Center, 2006. - 672 p.

4. Fundamentals of anti-crisis management of enterprises: textbook. Allowance for students of higher education. textbook institutions / ed. N.N. Kozhevnikov. - 2nd ed. - M.: Ed. center. "Academy", 2007 - 496 p.

5. Utkin E.A. Crisis management. - M.: Tandem, EKMOS, 2000.

Theoretical foundations of liquidity and solvency of the enterprise. The essence and meaning of the solvency of the enterprise The concept and essence of the solvency of the enterprise moluch

2. Systems and methods for assessing the solvency of an organization

Introduction

1.1 The meaning and essence of the concept of liquidity of the enterprise

1.2 The meaning and essence of the concept of solvency of the enterprise

2. Liquidity and solvency management

2.1 Regulatory and methodological aspects of analytical management and assessment of the financial condition of organizations

2.2 Solvency and liquidity management

2.3 Ways to improve liquidity and solvency

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