It is extremely important for analyzing the solvency and financial stability of an enterprise. It demonstrates the degree of independence of the organization from various loans and credit obligations, as well as the capital that can be spent on the functioning of the company.
K (fin. us.) = (page 1300 + page 1400) / page 1700
This indicator represents the proportion of the organization’s own savings to existing liabilities and balance sheet total (lines 1400–1700 of the balance sheet).
Meaning What does it mean
<0.6 There is a risk that the organization will become dependent on creditors
≥0.6 Norm
0.6–0.95 The level of independence from creditors increases
0.95 The company's development potential is not being fully utilized
Independence or autonomy coefficient
Shows the extent to which the marketing with stockholder database company's assets are made up of available cash without the participation of outside investments. The calculation of this value is made by calculating the ratio between equity capital and the foreign exchange balance. (line 1700 of the balance sheet).
Towards Autonomy = p. 1300 / p. 1700
Here, the value of the indicator – ≥ 0.5 – indicates that the company can cancel debt obligations on its own, as well as its reliability.
Independence coefficient
Total solvency ratio
It can be used to analyze the extent to which the assets owned by the organization are suitable for paying off existing debts.
K(total payment) = line 1300 / (line 1520 + line 1510 + line 1550 + line 1400)
The most appropriate value here is 2. This means that the company can easily get rid of the debt using its own assets.
For a correct analysis of solvency, three liquidity indicators are used.
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