Before talking about what the equity maneuverability coefficient includes, it is necessary to clearly understand the concept itself.
So, this is primarily an indicator that indicates which part of the capital is in circulation, thereby forming an idea of which part of the money can be involved in other investments and which is capitalized. At the same time, the maneuverability coefficient should be quite high, this will make it possible to use the company's own funds for certain needs (purchase of raw materials, components, etc.), without having to be on the verge of bankruptcy.
If this indicator decreases, this indicates that the company is experiencing a slowdown in the repayment of receivables, as well as stricter conditions for the provision of commodity loans from the side of contractors and suppliers. Conversely, if it increases, it means that the company's ability to repay current liabilities increases, the creditworthiness of the organization grows.
It is believed that the coefficient of maneuverability indicates the ratio of working capital, which is at the disposal of the enterprise to other sources of financing. Not surprisingly, this indicator is not constant and unchanged. It can vary and depends on the industry affiliation of the enterprise itself and its structure.
The most successful option is considered when the coefficient of maneuverability of functioning capital in dynamics, even slightly, but increases. Such an increase in the coefficient only indicates that the organization is functioning normally. The fact is that this indicator can increase only in the case when own working capital increases or additional sources of financing decrease. There is a direct correlation, which, with a sharp increase in this indicator, can automatically cause a decrease in other indicators. For example, the financial autonomy ratio will increase sharply and lead to the organization becoming dependent on creditors.
It must be said that from a financial point of view, this indicator should be as high as possible, then it is better for the enterprise itself, because this means that the organization is free to maneuver in its financial activities and are not afraid to be dependent on them. The optimal one can be considered when the maneuverability coefficient is 0.5, although in this case, some specialists are even inclined to 0.3.
If we talk about the formula by which this indicator can be calculated, then it should include accurate data on profit and expenses of a particular enterprise, so it is better to do this, armed with numbers from accounting or a special program.
In order to find out what will be the optimal maneuverability coefficient for an enterprise , it is necessary to compare it at a particular enterprise with other average indicators for this industry.
Do not forget that there are cases when such an indicator can be negative. Then we can safely say that we have an enterprise that is not able to independently provide for the formation of costs and reserves, which means that the company does not have enough capital to form not only non-current, but also current assets. In this case, we are dealing with an insolvent enterprise.
Thus, we see that a detailed study of the enterprise and its accurate calculation of the maneuverability coefficient allows us to understand how promising the enterprise is and whether it leads to complete bankruptcy and a catastrophic decrease in invested funds.