Liquidity analysis. Analysis of solvency and liquidity of assets of the company


The term liquidus was borrowed from German in the twentieth century. In translation, it means "fluid." Liquidity - the ability of assets to mobilize, turn from material and other values ​​into cash. This term is closely related to the company's solvency, that is, the ability of the organization to fulfill these obligations on time and in full. In a narrow sense, this means that the company must have enough money to pay off creditors.

The Russian legislation provides for a different interpretation of this concept. According to the Law of the Russian Federation “On Insolvency”, insolvent include companies that have overdue payables for more than 3 months for an amount exceeding 100 thousand rubles.

liquidity analysis

Analysis of the liquidity and solvency of the organization should be carried out before making any important decisions, as well as for:

- prediction of financial position;

- control over the fulfillment of obligations to counterparties;

- increased trust from partners;

- assess the effectiveness of the use of loans.

The analysis of liquidity and solvency according to the balance. The availability of additional statistical information will only improve the quality of the data obtained.

Western economists conduct a liquidity analysis to find out if the company can:

  • quickly repay all short-term liabilities;
  • return current debts in general;
  • pay all other liabilities.

In order to get an answer to each of these questions, the corresponding indicator is calculated.


According to Art. 19 of the Federal Law "OBU", economic entities are obliged to exercise control over the facts of economic life. Therefore, enterprises in the annual statements disclose financial indicators, as well as provide information about possible problems in economic activity. In frequency, liquidity risk arises,if an organization cannot in due time and fully repay its existing obligations towards suppliers, contractors, loans and so on.

analysis of balance sheet liquidity

Liquidity can be opposed to profitability. The most "good" assets do not bring any income (settlement account) or its size is very small (demand deposits for a period of 1 to 30 days). Long-term investments promise large dividends, but paying for them comes from distracted funds for a long period of time with turnover. Analysis of the liquidity of the company shows the current state of the organization.

Research areas

Solvency is an external reflection of sustainability and financial stability. If an enterprise is liquid, it can pay off all obligations in a timely manner. Since there are loans with different maturity in liabilities, one of the areas of analysis is to group the balance sheet items according to the speed of their implementation.

absolute liquidity

Liquidity analysis shows how many obligations and for how long the company can cover. In the sale of assets there is a risk of difficulties with the sale. It is defined as the difference between the "present value" and the possible price of the property.Liquidity management is the capital allocation organization's activity that will allow turning assets into money in a short time.

First step

The balance sheet liquidity is the level of coverage of a firm’s liabilities with its assets. This indicator can also be measured by the value of its own working capital: the more, the better. Analysis of liquidity of assets and liabilities begins with their division into groups, according to the algorithm presented in the table below.

Asset groups

Balance sheet

Groups of liabilities

Balance sheet

The most liquid (A1)

260 + 250

The most urgent (P1)

620 + 670

Marketable (A2)

240 + 270

Short-term sources of financing (P2)

610 + [630 : 660]

Slow-moving (A3)

210 + 220 + 140

Long-term sources of financing (P3)

510 + 520

Hard to sell (A4)

[110 : 140]

Permanent liabilities (P4)


If a1,A2,A3more than P1,P2, P3and a4<P4, then the balance is absolutely liquid. But such a situation is encountered rarely.

Analysis of liquidity of the enterprise: coefficients

To find out the level of solvency of the organization, it is necessary to calculate several indicators:

1. The current liquidity ratio (CR) shows the situation as a whole. It displays how much the organization’s current assets account for one ruble of liabilities. The company repays debts at the expense of available funds.That is, current assets must exceed liabilities. The critical value of the indicator varies by industry and type of activity, but in theory it should not exceed 2. Formula:

KTL = OBA \ KO, where:

Both - current assets without debt for more than 12 months;

KO - short-term liabilities excluding future revenues and reserve costs.

The value of the indicator is determined by the volume of long-term funding sources. To increase it, you need to increase capital and reasonably restrain the growth of stocks.

liquidity analysis and assessment

Analysis of the liquidity of the balance of the enterprise according to this ratio does not give a complete picture. The calculation does not take into account the structure of an asset in which some assets may be more liquid than others. Sometimes there are situations when the value of the coefficient remains within the normal range, but the company is experiencing problems with cash. If the company does not have enough funds to maintain the achieved scale of production, then this situation is called excessive expansion. It may occur if the company is rapidly increasing turnover or if it was not fully funded in the previous stages.The way out is getting a long-term loan.

2. Analysis of the organization’s liquidity by a narrower range of assets is carried out on the basis of the intermediate solvency ratio (KPL). When calculating it, inventories are not taken into account. The logic is pretty simple. Proceeds from the sale of inventory may be less than the amount spent on their purchase. Very often, when a company is liquidated, the sale of materials and raw materials will receive only 40% of their book value. The critical value of the coefficient is 1. Formula:

KPL = (OA - Inventories) \ Short-term liabilities, where OA - current assets.

But the analysis of liquidity implies not only the calculation of indicators, but also identifying the reasons for their changes. Therefore, it is necessary to determine the factors that caused the changes. If the growth rate was caused by an increase in unjustified debt, this indicates a negative trend.

3. Absolute liquidity (Kal). This is the toughest assessment criterion. The ratio shows how much of the obligations can be paid in cash. The recommended lower limit is 0.2. In practice, these values ​​reach far from all enterprises.The fact is that for each industry the standard must be different, and all the data obtained must be complemented by an analysis of the solvency of competitors in the market. Absolute liquidity is calculated by the formula:

Cal = p. 260 \ p. (690 - 640 - 650), where p. XXX is the line of balance No. XXX.

Timely repayment of receivables (DZ) - the main factor in the growth of this ratio.

liquidity and solvency analysis

Other indicators

1. The value of own circulating assets (SOS) = Working capital (OS) + Stocks + DZ + Advances + Money on bank accounts (DS) + Short-term investments = Asset II section - Passive Section II.

2. Maneuverability OS. The ratio shows how much working capital accounts for the most liquid assets (cash on hand and in bank accounts). The decrease in the value of the indicator may indicate both the redemption of the DZ and the tightening of conditions for obtaining a commodity loan from suppliers and contractors. The growth rate indicates a positive trend, increasing the ability to meet obligations.

There is another approach to the calculation of this indicator. Some economists recommend calculating it by dividing the value of stocks and long-term DM by the value of the COS.The standard value of the indicator depends on the scope of the enterprise: in capital-intensive industries, its level should be lower than in material-intensive ones. Formula:

Maneuverability OS = DS \ (Current Assets - Current Liabilities).

3. How many working capital accounts for a unit of assets.

4. The proportion of SOS in OA.

5. The share of stocks in current assets: a large proportion of materials and raw materials in the warehouse may occur as a result of overstocking, for example, before holding stocks. But he also indicates a decrease in demand for products. Formula:

D s = Inventory \ OA = p. (210 + 220) / p. (290-230-217).

6. The share of SOS in stocks - shows how much of the raw material is provided at their expense. The standard value is 0.5. Formula:

Share = SOS \ Stocks.

7. The coverage ratio of reserves - shows the expense of which funds were purchased materials. Its positive dynamics testifies to "normal" sources of financing, and negative - that the raw materials were bought at the expense of the earth's capital.

Analysis and assessment of liquidity is most often carried out on the basis of three factors: instant, current and fast liquidity.

New approach

Recently, the “debt / EBITDA” indicator has become widespread, which is calculated as the ratio of the liabilities to profit before tax.In the numerator there may be a figure of short-term, long-term, total or net (minus DZ) debt. Depending on the results of the calculations, the borrower can be classified as disadvantaged (4 or more), risky (3-4), moderate (2-3) and conservative (up to 2).

financial analysis liquidity

The interest coverage ratio (TIE) is calculated as the ratio of net cash flow to interest payments for borrowed funds. The higher it is, the lower the risk of default.

To improve the efficiency of solvency management, it is necessary to compile a payment calendar (PDDS), which displays the ratio of cash balances and expected receipts to expenditure amounts for the same period.

Identify the causes of deviations

Causes of financial insolvency can be divided into several groups. The first includes economic (decline in production, bankruptcy of debtors), political (imperfect legislation), the level of development of scientific and technical progress and other external factors. In order to mitigate their influence, an enterprise may, for example, attract additional sources of financing through the issuance of shares or diversify production (disperse assets across different activities).

The second group of internal factors include those that depend on the successful joint work of all departments of the organization: the presence of a COS deficit, an increase in the cost of distribution, the incorrect determination of the selling price. Repayment of receivables will greatly improve the condition of the organization. Factoring operations or the conclusion of the cession agreement will accelerate the turnover of funds.

Another option is to improve payment discipline. For example, enter into a collection agreement with a bank, according to which the buyer will be automatically charged fines for each day of delay. The corresponding requirement of the credit institution makes the recipient of goods for payment. This will significantly speed up the turnover of funds. This solution has its drawbacks: firstly, such a step must be pre-registered in the contract with the counterparty, and not every client agrees to such conditions. Secondly, the fee for banking services should be comparable to the benefits received.

How to increase solvency

1. Change the structure of receivables: conclude a cession or collection agreement with the bank.

2. Increase profits.Each organization has its own individual method.

3. Change the capital structure. The predominance of borrowed funds in the liability reduces the liquidity of the balance.

4. Increase the SOS and reduce the share of stocks.

5. The company cannot influence such external economic factors as a decline in production in the country. However, the replacement of obsolete equipment with newer ones, for example, through a lease agreement, will improve the situation.

From theory to practice

To understand everything, we will try to consider in practice how the analysis of liquidity is carried out. An example is given below.

Indicators for 2013






Ct al






Ct bl






CT tl






The value of the absolute liquidity ratio is below normal. Although it has increased several times over the year, it has decreased again at the end. The fall may be caused by the direction of free funds for the purchase of stocks or poor collection of DM.

The quick ratio for the year was constantly decreasing. Although its values ​​are higher than normative, the dynamics is negative. But while the company can cover current liabilities with its own working capital.

In general, the analysis of liquidity showed that the company starts serious problems.Even minor disruptions in the payment of products can lead to a shortage of funds. There are several ways to fix the situation:

- increase equity capital (IC);

- sell part of the assets;

- reduce excess inventory;

- carry out work on the recovery of DZ;

- take a long-term loan;

- extend or lease unused operating systems.

Financial analysis: bank liquidity

By issuing loans, a credit institution reduces the amount of money stored. At the same time increases the risk of non-return of the deposit. To prevent this situation, reserves are used. The bank may apply to the Central Bank for a temporary loan. The presence of excess money stimulates the credit institution to invest them, for example, in securities.

Bank liquidity is the ability of an organization to fulfill its obligations in a timely manner. It is based on the ongoing maintenance of a balance between the UK and the funds raised and placed. For this, the bank needs to form a balance structure in which different assets will quickly turn into cash. Liquidity analysis is conducted in two directions.In the framework of the horizontal determined by the proportion of individual groups of assets and liabilities. These indicators are compared with the total volume of operations. A vertical analysis of bank liquidity, which is conducted on the basis of net balance, provides information on groups and types of transactions.

The solvency level of a credit institution can also be calculated by coefficients. They are divided into two groups:

- regulatory, which are established by the Central Bank and must be complied with by all banks;

- evaluation, which are developed by specialized companies or analytical services. Their values ​​are not necessary to achieve, but the calculation will provide more complete information.

organization liquidity analysis


In order to monitor the level of development of the enterprise and timely identify the risks of economic activity, it is necessary to periodically conduct a financial analysis in the following areas:

- solvency of the enterprise;

- the level of business activity of the organization;

- cash flow control;

- building equity;

- the financial sustainability of the organization, etc.

Analysis of liquidity indicators is carried out in several stages.First, assets and liabilities are divided into groups, and then solvency ratios are calculated (at least three). The results obtained must be compared over the enterprise and in the industry as a whole.

The level of solvency of the bank should be monitored regularly. Its strong decline may cause the credit organization to sell off part of its assets. As for the enterprise, the situation here is a bit different. Additional loans can increase solvency, but they should not be abused. It is better to direct forces to recover a DM, increase equity capital or sell unused assets.

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