The solvency of the company is the main characteristic that is responsible for cooperation with investors, banking institutions, creditors. After all, it is this indicator that allows us to talk about the possibility of organization
pay off your debts.
The solvency ratio (the formula of which has several options), depending on the type of activity of the organization, is calculated in several ways. So, for the calculation of this coefficient at the manufacturing enterprise, there is one approach, and in the trading - another.
Solvency ratio (formula for a manufacturing enterprise)
This calculation can be done with the financial statements of the company (balance sheet) in hand. The formula is quite simple and is calculated as the ratio of equity to liabilities on the liability side of the balance sheet.
Equity, in turn, is the net
equity that is involved in the business, net of payables, short-term and long-term loans.
The solvency ratio of the enterprise, the formula of which is given above, also takes into account current and non-current assets. The main attention is paid to current assets, because it is due to them that, if necessary, you can pay off debt or pay for something.
Example of calculating this coefficient
Having the balance of the enterprise on hand , we can immediately calculate the solvency ratio. The formula used is that given in the article. We have the following data:
The following figures are in the asset: the cash desk of the enterprise - 1,000 rubles, on the current account the balance - 10,000 rubles, goods in stock in the amount of 10,000 rubles, production equipment - 100,000 rubles. The premises of the workshop are 100,000 rubles. As a result, we have assets in the amount of 221,000 rubles.
In the balance sheet liabilities: authorized capital - 100,000 rubles, fixed-term liabilities (such as calculation with the budget, wages) - 40,000 rubles, short-term liabilities (loans up to one year) - 60,000 rubles, long-term liabilities - 21,000 rubles. The balance sheet currency is 221,000 rubles.
Let's proceed to the calculations: it can be seen from the balance sheet liability that the equity capital is 100,000 rubles, the rest is all the obligations of the enterprise. In our case, the calculation will be as follows: 100 000/40 000 + 60 000 + 21 000 = 0.82. This suggests that with our own money we can cover only 82 percent of our obligations.
In practice, the approach to this coefficient is more serious. Analysts primarily look at the structure of assets, because
working capital is much easier to implement than non-current.
There is also a solvency loss ratio, the formula of which is calculated using dynamic changes in solvency over several periods. This makes it possible to talk about the trend in this indicator at the enterprise for reporting periods.
Standard values of coefficients
Briefly consider the regulatory values that gives the solvency ratio. The formula calculates the normative value in percent. The norm for a manufacturing enterprise is 0.5-0.8. If it is lower, it is dangerous to lend to such an enterprise; there is a risk of default on the loan.
For trading companies and organizations with high liquidity (travel agencies, firms that provide services, construction companies), due to the peculiarities of the business, this ratio can be the norm in the range of 0.1-0.5.