The coefficient of autonomy of the independence of the enterprise. Indicators of long-term financial stability. Where to get data for calculating the financial independence ratio on the balance sheet

Financial ratio equal to the ratio own capital and reserves to the total assets of the enterprise. The initial data for the calculation contains the balance sheet of the organization.

It is calculated in the FinEcAnalysis program in the Financial Stability Score block as the Financial Independence Ratio.

Autonomy coefficient - what does it show

Shows the share of the organization's assets that are covered by equity (provided by their own sources of formation). The remaining share of the assets is covered by borrowed funds.

Investors and banks issuing loans pay attention to the value of this ratio. The higher the value of the coefficient, the more likely the organization will repay debts at its own expense. The higher the indicator, the higher the financial independence of the enterprise.

Autonomy coefficient - formula

The general formula for calculating the coefficient:

where p.490, p.700- lines of the balance sheet (form No. 1)

Calculation formula according to the new balance sheet:

Autonomy coefficient - value

Regulatory limitation K a > 0.5. The higher the value of the coefficient, the better the financial condition of the company. For in-depth financial analysis, the value of this coefficient is compared with the average values ​​for the industry to which the analyzed enterprise belongs.

The proximity of this value to one indicates a curbing of the pace of development of the enterprise. By refusing to attract borrowed capital, the organization is deprived of an additional source of financing for the growth of assets (property), through which it is possible to increase income. At the same time, this reduces the risks of deterioration in financial viability in the event of an unfavorable development of the situation.

Autonomy coefficient - scheme

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Synonyms

More found about the coefficient of autonomy

1. 
   Coefficient of autonomy of sources of formation of reserves and costs Coefficient of autonomy of sources of formation of reserves and costs Coefficient of autonomy of sources of formation of reserves and costs -
2. Analysis of the capital structure and profitability of leading Russian oil and gas companies
   When analyzing the capital structure of corporations, we calculated the following main coefficients: the autonomy ownership coefficient; the financial dependence ratio; the ratio of own and borrowed capital;
3. Vector method for predicting the probability of bankruptcy of an enterprise
   In the first example, pairwise interdependent coefficients are the coefficient of financial leverage and the coefficient of autonomy, the coefficient of current liquidity and the coefficient of provision with own working capital. In the second example, pairwise interdependent
4. Comprehensive analysis of the company's financial stability: coefficient, expert, factorial and indicative
   As such an integral indicator, you can use the following financial stability ratios autonomy ratio coefficient of equity mobility mobility level of financial leverage ratio of interest payable ratios coefficients
5. Financial analysis of the enterprise - part 5
   Indicators 2004 2005 Autonomy ratio 0.259 0.615 Ratio of borrowed and own funds 2.855 0.626 Equity flexibility ratio
6. On the normative values ​​of the coefficients in the formation of the rating assessment of the financial and economic state of the enterprise
   To adjust the normative values ​​of indicators, the following logical premise should be recognized as fundamental: the maximum 100% financial stability of an enterprise can be provided that the coefficient of autonomy K max A P4 BA 1.0, i.e. the enterprise carries out its economic activities
7. Impact of IFRS on the results of the analysis of the financial position of PJSC Rostelecom
   IFRS from RAS - 1 Financial independence ratio > 0.5 0.444 0.356 -0.088 0.478 0.447 -0.031 2 Concentration ratio
8. Statistical analysis of the relationship between indicators of capital management and market value of public companies in Russia
   According to the coefficient of autonomy E A, the companies represented in the period 2000-2008 are quantitatively homogeneous V>
9. Financial analysis of the enterprise - part 4
   Indicators 2002 2003 2004 Autonomy ratio 0.442 0.182 0.259 Equity and borrowed funds ratio 1.262 4.488 2.855 Coefficient
10. Borrower default assessment
    In addition, the autonomy coefficient and the indicator of the overall degree of solvency, regardless of the type of functional connection, are significant by 1% -
11. Assessment of the market and financial stability of the enterprise
    A B 1 2 3 1 Coefficient of autonomy 0.334 0.274 0.329 2 Coefficient of current assets with own working capital -0.369 -0.062
12. Financial stability of the organization and criteria for the structure of liabilities
    Thus, the level of financial stability can be judged by individual indicators from our chosen system of indicators for assessing financial stability, namely, the autonomy coefficient, the ratio of borrowed and equity capital, the concentration ratio of borrowed capital.
13. Determining the normative values ​​of financial stability ratios for organizations of various types of economic activity in the context of the application of certain asset financing policies
    V. Savitskaya proposed a methodology for calculating the normative level of the equity concentration autonomy ratio and financial leverage, depending on the chosen asset financing policy
14. Comprehensive analysis of the financial condition of an educational organization
    The share of the financial result obtained in the total amount of own funds and liabilities to creditors, the autonomy coefficient decreased from 62 to 58% At the same time, the degree of dependence of the university on the use of funds increased
15. Economic risk assessment based on financial ratios
    Ktl 1.597 0.4 1.5 1.0-1.5<1,0 1 0.4 4 Коэффициент автономии Ксс СК А 0.525 0,2 0,4 0,25-0,4 <0,25 1 0.2 5. Рентабельность продаж
16. Study of the influence of the duration of the operating and financial cycles on the financial stability of enterprises in the Tula region
    The current liquidity ratio is calculated as the ratio of current assets to current liabilities 6 The autonomy ratio is calculated as the ratio of equity to the balance sheet currency Operating cycle duration
17. Analysis of the financial condition in dynamics
    У21 0.586 0.537 0.776 0.732 0.979 0.393 Coefficient of autonomy of sources of formation of reserves and costs У22 0.246 0.285 0.509 0.547 0.976 0.73 Coefficient
18. Working capital and financial condition of enterprises
    Vinci Autonomy coefficient Ka P3 WB 5 where WB is the balance currency The minimum value of the coefficient is 0.5
19. Optimization of the structure of the balance sheet as a factor in increasing the financial stability of the organization
    Such indicators include the current liquidity ratio the autonomy ratio the ratio of own working capital provision the capital structure ratio the financial dependence ratio Let's build a system of restrictions
20. Features of the application of methods of comparative economic analysis in assessing the financial condition of the organization
    Krsi ≥0.7 0.47 0.89 0.43 0.7 0.53 0.46 0.82 Kyu autonomy coefficient ≥0.7 0.92 0.18 0.65 0.82 0.56 0, 57 0.9 Maneuverability factor Kman ≥0.5

The coefficient of financial independence according to the balance sheet is one of the most important criteria for the financial stability of entrepreneurial activity. This indicator of stability, or the equity concentration ratio, is calculated using certain methods, and also has practical benefits.

Why you need to calculate CFN

The indicator characterizes the ability of an enterprise to carry out the production process without interruptions for an unlimited period of time, as well as to sell its own goods and services, regardless of changes in various external or internal conditions. More specifically, the FMSC of a sustainable enterprise assumes that there is a sufficient financial base for:

• Timely payment of any obligations, from which it is assumed that the company is solvent.
• Optimizing the production base, expanding the volume of the company or investing in other areas of business activity, that is, the company has the ability to develop.
• Compensation for certain losses if risks have been realized or market conditions have changed in an unfavorable direction. At the same time, the financial security of the organization takes place.

To achieve the simultaneous presence of these factors over a long period of time, a qualitative relationship is maintained between the amount of resources received, their sources and finance optimization. Such a general approach allows us to express the value of the autonomy coefficient.

The main idea of ​​the stability of the organization is the fact that there is a sufficient amount of personal funds in order to promptly pay off any monetary obligations that come from outside the company. The very analysis of financial independence suggests that a stable company is not one that completely excludes loans, but an organization that uses them in the amount to be able to fully repay all obligations on time.

Based on the field of activity, management optimization and other indicators, the level of the norm for personal funds will be different. But even within the same company, a change in the production process or business strategy, as well as the impact of the seasonal factor, can significantly adjust the structure of the financial base, and with it, the level of funds required for stable operation.

Formula for calculating CFN

Financial independence involves determining the share of personal funds within the framework of a complex of financial sources, so the coefficient is calculated as follows:

Financial Independence Ratio=Autonomy Ratio=Personal Funds/Balance Currency

A similar formula for the coefficient of financial independence demonstrates the volume of assets from personal financial sources, that is, it is possible to derive from it the level of dependence of the organization on credit funds.

If a company can use loans for an extended period of time, the FMSC may consider adding them to the firm's equity. In this situation, another FMSC formula for the balance sheet can be applied, which takes into account long-term debt needs:

Financial stability ratio \u003d (Personal funds + Long-term lending) / Balance currency.

Thanks to this parameter, you can display the total part of the total injections received from long-term financial injections. Thus, it is possible to more accurately calculate the optimal structure of the company's financial base.

Where is the information for calculating the CFN

Both formulas for calculating financial independence demonstrate the calculation of characteristics based on balance sheets. Some organizations use accounting reports for 1 financial year for this, but it is much more profitable to use a special management balance sheet for 1 month. There are reasons for this:

• The larger the volume of accounting dates, the better the demonstration of the average parameters corresponding to the actual assets and debts in terms of the average annual volume.
• Often, the calculation of the coefficient requires the combination of articles that diverge from legislative forms. At the same time, management accounting, based on the specifics of the organization, ensures the exclusion of any recalculations, which significantly optimizes the conduct of analytical activities.
• Based on reports for 1 month, it is possible to track the dynamics of the structure of the financial base within 12 months, which is of great importance in preventing cash discrepancies.

What type should the FSC have?

It is generally accepted that the coefficient of financial independence demonstrates the stability of the company. The lower this ratio, the greater the organization's dependence on credit loans and side financial injections, which reduces the independence of the enterprise.

As for the allowable minimum for the FMSC, it is at the level of 0.3-0.5, based on the field of activity of the enterprise, which has its own criteria for requirements for the structure of the financial base. If we consider a capital-intensive organization that has a serious percentage of non-current financial resources, its share of the personal financial base, like the FMSC, must exceed the specified norm indicators.

If the coefficient shows closeness to 1, this indicates the absence of credit money in use with the current financial base, which is far from always a favorable factor. If the type of business activity involves an increased percentage of highly liquid turnover, it is possible to use external financial injections in the required volumes, which will increase the payback of personal funds. Based on this assumption, a CF characteristic of the order of 0.7-0.8 may be the most appropriate.

Additional features of KFN

We figured out how to calculate the coefficient of financial independence of an enterprise, but this indicator does not show a complete picture of the situation in the enterprise. This requires data on the solvency of the company in the near future, since an overestimated degree of obligations in the short term can cause delays in payments on existing credit loans.

To continue these studies, it is important to use side ratios, which also show the structure of funding sources and available funds, but here there is an account of the urgency of paying bills and the efficiency of turning deposits into net profit.

The first such group is called liquidity parameters. Often, the most appropriate step is to use the quick liquidity parameter calculated by the formula:

Rapid liquidity ratio = (Short-term debt obligations on accounts receivable + Liquid stocks of goods and products + Financial base and equivalents) / Short-term obligations.

This ratio, also called the coverage ratio, can shed light on a firm's ability to repay debt over a short period of time using only highly liquid assets. It is generally accepted that an indicator less than 1 indicates high risks of insolvency. The optimal level is considered to be a coefficient from 1.5 to 2.5. If this value is exceeded, this may indicate an illiterate structure of the financial base, the presence of the possibility of introducing external funds, which will improve the payback of personal finances.

It is important not to forget that the calculation of the quick liquidity ratio does not require the inclusion of raw materials, material base and expenses of the enterprise in the unfinished production process into the numerator. If we talk about the norm, such factors are not used in trade, and their transformation into a financial base can disrupt the production procedure, leading the company to a loss.

Another side factor is the ratio of personal current assets. It is also commonly called the maneuverability coefficient and is calculated based on the following formula:

The coefficient of maneuverability of equity capital = (Equity capital - Non-current assets) / Equity capital.

Thanks to this formula, the amount of personal funds that are in the most mobile form - current assets is established.

findings

Any enterprise has a lot of parameters, on the basis of which an individual optimal asset base and methods for replenishing them are established. The essence of the approach lies in the fact that the assessment of the financial stability of the company requires comprehensive measures.

Each CFN must be applied inextricably with the liquidity parameter and filling capital with personal working capital. In a situation of competent averaging of information and calculations, one can only obtain a description of the existing financial base and sources of cash injections.

If you want the FMN to be the most useful financial instrument, it is important to analyze on an ongoing basis and over various time periods, monitor the dynamics of indicators and explore the impact of financial transactions on adjustments to the total capital structure.

Thus, the use of a system of analytical parameters must be timely and relevant to the current time, which can be compared with every successfully functioning firm. Such an approach to the application of coefficients will provide a timely demonstration of probable risks and the identification of narrow areas of the organization, as well as ways to normalize the current situation.

Consider autonomy coefficient(its other name is the coefficient of financial independence), which is part of the group of coefficients of financial stability of the enterprise. As you probably remember, there are four groups of financial ratios: liquidity, profitability, business activity and financial stability. This coefficient belongs to the last group. It is immediately necessary to clarify the difference between liquidity and financial stability groups, as they are often confused. The key difference lies in the different assessment of the solvency of the enterprise, so the coefficients from the liquidity group assess the short-term solvency, and the coefficients from the financial stability group evaluate the long-term solvency of the enterprise.

Consider the coefficient of autonomy (financial independence) according to the following scheme: first, we will talk about its economic meaning, then we will give a calculation formula, then we will consider an example for the Russian enterprise OJSC Severstal and do not forget to say about the normative values.

Autonomy coefficient(financial independence). economic sense

Autonomy coefficient (analogue: financial independence) - this shows the degree of independence of the enterprise from creditors. The ratio shows the ratio of equity to total assets, thereby showing the share of equity in the total assets structure (which includes both equity and borrowed funds). If the autonomy coefficient has low values, this indicates that the enterprise is financially unstable (depending on creditors).

Where is the autonomy coefficient used?

The coefficient of autonomy (financial independence) is used in the analysis of the financial condition of the enterprise by arbitration managers in accordance with the Decree of the Government of the Russian Federation of June 25, 2003 No. 367 “On approval of the rules for conducting financial analysis by arbitration managers”.

Thus, this ratio is used by financial analysts for their own diagnostics of their enterprise for financial stability, as well as arbitration managers.

Autonomy coefficient synonyms

We list the synonyms for the autonomy coefficient used by other authors.
financial independence,
Equity concentration ratio,
Ownership ratio,
Independence coefficient,
Equity to Total Assets,
EQ/TA.

In fact, all the names listed above are one coefficient of autonomy, but often in the literature it is called differently.

Autonomy coefficient(financial independence). Calculation formula according to balance sheet and IFRS

Let's move on to considering the formula for calculating the autonomy coefficient, which will look like this:

Coefficient of autonomy (financial independence) = Equity / Assets = line 1300 / line 1600

Str.1300 - the sum of all own funds,
Str.1600 - the sum of all assets.

According to the old balance sheet (before 2011), the autonomy coefficient was determined based on the formula:

Autonomy coefficient = p.490 / p.700

In foreign literature, the autonomy coefficient will have the following form:

ETTA=EC/TA

EC ( Equity Capital) - own capital of the enterprise;
T.A. ( Total Assets) is the amount of assets.

The world practice of financial analysis uses financial dependency ratio(Debt ratio), which is the opposite in meaning to the coefficient of autonomy (financial independence). The coefficient of autonomy (financial independence) and the coefficient of financial dependence are similar, since in both cases own and borrowed capital is used.

The formula for calculating the financial dependency ratio is as follows:

Financial dependency ratio (Debtratio) = Liabilities/Assets

According to the Order of the Ministry of Regional Development of the Russian Federation of April 17, 2010 No. 173 (clause 8.2.1.2), the financial dependence coefficient had the following calculation formula according to the old RAS:

Financial dependency ratio = (line 590+ line 690 - line 630 - line 640- line 650) / (line 700)

According to the new form of the balance sheet, the formula takes the following form:

Financial dependency ratio = (line 1400 + line 1500 - line 1530 - line 1540) / line 1700

Public financial statements (Balance and Profit and Loss Statement) will be enough to calculate this ratio.

Another financial ratio similar to the autonomy ratio is financial leverage ratio(Debt to equity ratio). This indicator is calculated using the following formula:

Financial Leverage Ratio = Liabilities/Equity

This coefficient, as well as the coefficient of autonomy and the coefficient of financial dependence, shows the ratio between own and borrowed funds. Recommended and optimal for Russian reality, the value of this coefficient is equal to - 1.

Financial autonomy ratio. Calculation example for OAO Severstal

To calculate the autonomy coefficient, we need the balance sheet of the enterprise. I recommend taking financial data from the InvestFunds website. Let's take the balance sheet for 4 reporting periods: the 3rd and 4th quarters of 2013 and the first two quarters of 2014. The picture with the imported balance of OAO Severstal is located below. I will clarify that the reporting is provided in accordance with RAS (Russian accounting system).

Calculation of the autonomy coefficient for OAO Severstal

Autonomy coefficient 2013-3 = 187646670/396107499 = 0.47
Autonomy coefficient 2013-4 = 191002492/399926531 = 0.47
Autonomy coefficient 2014-1 = 181977490/391313809 = 0.46
Autonomy coefficient 2014-2 = 192818659/387994606 = 0.5

The autonomy coefficient for OAO Severstal did not change much during all four analyzed periods. It can be concluded that the financial condition of the enterprise is stable.

Coefficient of autonomy (financial independence). standard

In Russia, the autonomy coefficient has a standard value of >0.5. The optimal value is in the range of 0.6-0.7. For example, in foreign sources, the normative value of this coefficient in the USA and Europe is 0.5, in South Korea - 0.3. The coefficient of autonomy should be considered in relation to the enterprises of the same industry. This will allow you to more accurately determine your place in the overall system of similar enterprises. Since the normative values ​​proposed above are only general recommendations.

Summary

Let me sum up the analysis of the coefficient of autonomy (financial independence). It is an important coefficient that reflects the financial stability of the enterprise, is required for calculation and further analysis. It is used, as a rule, by financial analysts and arbitration managers. Shows the independence of the enterprise from creditors (external borrowed funds).

The financial independence ratio is one of the main indicators of the financial stability of a business. It is also called the autonomy or concentration ratio of equity capital. Next, we will consider the methods of its calculation and practical application, and all these names will be used as synonyms.

Why calculate the financial independence ratio

Financial stability is usually understood as the ability of an organization to ensure a continuous process of production and sale of its products, works and services indefinitely, regardless of changes in external and internal conditions. Concretizing this definition, we get that a sustainable enterprise always has enough cash to:

1. Timely repayment of all obligations, that is, the organization is solvent.
2. Expanding production, increasing its volume or investing in other lines of business, that is, the organization can develop.
3. Compensation for possible damage in the event of the realization of certain risks or adverse changes in market conditions, that is, financial security is ensured.

To achieve these goals simultaneously, and for a long time, is possible only by maintaining the optimal ratio between the volume of attracted resources, their sources and the structure of assets. This is the most general approach to ensuring and assessing financial sustainability.

It is based on the idea that an enterprise is sustainable if it has enough equity for the timely repayment of all external obligations. It follows from the definition itself that a sustainable enterprise is not one that does not take borrowed funds, but that uses them in the amount in which it is always able to repay its obligations on time and in full. Depending on the industry, type of activity, quality of management and other factors, the level of equity capital adequacy will be different. Even in the same organization, a change in the production process or market strategy, the influence of the seasonality factor can significantly change the structure of assets, and hence the level of own funds necessary for sustainable operation.

Financial Independence Ratio Formula

The economic meaning of the indicator is that it determines the share of equity in the total amount , so the formula for its calculation is:

Financial Independence Ratio = Autonomy Ratio = Equity / Balance Sheet

This ratio shows the share of assets provided by own sources, and, therefore, the degree of dependence of the enterprise on external borrowing.

If the organization has the opportunity to use long-term borrowed funds, then to assess financial stability, we can equate them to equity. In this case, it is advisable to use a similar indicator, only taking into account additional obligations with a long maturity:

Financial stability ratio = (Equity + Long-term loans) / Balance sheet

This indicator indicates what share of total assets is secured by long-term, that is, sustainable sources of financing, and allows more accurate conclusions about the optimal capital structure.

Where to get data for calculating the financial independence ratio on the balance sheet

As can be seen from the above formulas, the indicator is calculated according to the balance sheet data. Usually, in the educational literature, the calculation of the coefficient of financial independence on the balance sheet is considered, for which annual financial statements are used, and references are made to the numbers of the corresponding lines of form No. 1. However, unless we have an enterprise with a long (up to several years) production cycle, then it is much more preferable all calculations are made according to the management balance, as a rule, on a monthly basis. This should be done for several reasons:

1. The greater the number of reporting dates, the better the averages correspond to the actual average annual size of assets and liabilities;
2. Very often, to calculate financial independence ratios, it is necessary to group items that are different from the legally approved forms, and management reporting created taking into account the specifics of the enterprise will avoid additional recalculations, facilitating and speeding up analytical work;
3. Based on monthly reporting, it is possible to track the intra-annual dynamics of the structure of assets and liabilities, which is very important for prevention of cash gaps .

Permissible value of the financial stability ratio

It is believed that the stability of the enterprise is the higher, the higher the coefficient of financial independence. The lower the value of this ratio, the more the organization depends on external sources of financing, which, other things being equal, lowers financial stability. The minimum allowable value of the autonomy indicator can vary from 0.3 to 0.5 depending on the industry and type of activity, which dictate the required asset structure. In the case of capital-intensive production with a high share of non-current assets, the share of equity, and hence the coefficient of independence, should be higher.

On the other hand, the proximity of this indicator to 1 indicates the absence of borrowed funds in the composition of financing sources, which is not always the best option. If our type of activity is characterized by a large share of highly liquid working capital, then we can afford to use external financing in the appropriate amount, thereby increasing the return on equity. Based on this logic, the value of the autonomy indicator at the level of 0.7-0.8 is considered the most optimal.

What to add

The optimal indicators of autonomy and stability obtained as a result of calculations do not yet make it possible to draw full-fledged conclusions. So far, we do not know anything about the solvency of the organization in the short term, and in fact an unreasonably high level of short-term liabilities can lead to disruption of payments on current accounts.

For further analysis, it is necessary to introduce additional ratios that also determine the structure of sources of financial resources and assets, but taking into account the maturity of liabilities and the rate of conversion of assets into cash.

The first group of such indicators is called liquidity ratios . Most often it is advisable to use the quick liquidity ratio:

Quick liquidity ratio = (Short-term accounts receivable + Liquid inventory and finished goods + Cash and cash equivalents) / Current liabilities.

This ratio, also called the coverage ratio, demonstrates the company's ability to repay short-term debt only at the expense of highly liquid assets. It is believed that a value below 1 signals the risk of insolvency. 1.5 - 2.5 is taken as the optimal level. A higher indicator may indicate an irrational capital structure, the possibility of attracting external financing to increase the return on equity.

It should be specially emphasized that when calculating the quick liquidity ratio, the numerator does not include raw materials, materials and. Normally, they are not intended for sale, and their conversion directly into cash disrupts the production process, thereby causing losses.

The second additional indicator will be the ratio of own working capital, or, as it is also called, the coefficient of maneuverability:

Equity flexibility ratio = (Equity - Non-current assets) / Equity

With its help, we determine the share of equity, which is in the most mobile form, that is, in the form of current assets.

An example of calculating the financial independence ratio

Calculate the coefficient of financial independence according to the balance sheet of enterprise A.

Table 1. Company A's management balance sheet

For calculations, we need: the balance sheet total (total assets), the results of sections III and IV:

Autonomy coefficient = 225 / 290 = 0.78.

For a complete analysis, we perform additional calculations:

• Financial stability ratio = (225 + 30) / 290 = 0.88.
• Quick ratio = (18 + 32 + 10) / 35 = 1.71.
• Equity maneuverability ratio = (225 - 162) / 225 = 0.28.

It can be seen that the value of all indicators is optimal, the level of stability of enterprise "A" is high, it has its own working capital and is able to repay short-term obligations only at the expense of highly liquid current assets.

What happened next with financial stability

It would seem that at the enterprise "A" everything is fine, it is stable, the indicators are optimal. And so the shareholders decided to direct most of the last year's profit to the payment of dividends. True, in order to do this, I had to take another loan from the bank, but what can you do, the shareholders urgently needed money, and the financial worker is paid for this in order to attract borrowed funds, this is his job. After this payment, the balance began to look like this:

table 2. The balance sheet of enterprise "A" after the payment of dividends to shareholders

Let's see what happened to financial stability indicators:

• Autonomy coefficient = 125 / 203 = 0.62;
• Financial stability ratio = (125 + 30) / 203 = 0.76;
• Quick liquidity ratio = (12 + 3 + 1) / 48 = 0.33;
• Equity flexibility ratio = (125 - 162) / 125 = - 0.3.

It is easy to see that at a seemingly normal level of independence and stability coefficients, the liquidity and agility indicators took on unsatisfactory values.

That is, only a third of short-term liabilities are covered by highly liquid assets, and there are no own current assets at all. It turns out that such a large lump sum was not a well-considered step, and put the organization at risk of disrupting payments on current obligations if there was any failure in production or a decrease in sales. And the job of the financier in this case was not to attract a new loan, but to offer shareholders another solution that is safer for business and convince them of the need to accept it.

Conclusion

Each enterprise has many features that determine the individual optimal structure of assets and sources of their financing. At the same time, the general principle is that the assessment of the financial stability of an enterprise should be approached comprehensively. This means that financial independence ratios should be used simultaneously with liquidity and working capital ratios.

Even with correct averaging of data and calculations, we will only get a description of the current structure of assets and sources of financing. In order to turn the coefficients into a useful tool, it is necessary to calculate them regularly and for different time intervals, monitor their dynamics and analyze the impact of the facts of financial and economic activity on changing the structure of the balance sheet. In other words, the system of analytical coefficients should be a living structure, a kind of living structure, which is any successfully operating enterprise. Such an approach to the use of these indicators will help not only signal possible risks, but also identify bottlenecks in the business, determine ways to improve the situation if necessary.

DEFINITION

Financial Independence Ratio (Kfn) reflects the share of the enterprise's assets formed from its own sources.

The balance sheet financial independence ratio formula is used by banks and investors when determining the financial attractiveness of potential borrowers or partners.

The financial independence ratio has a dual nature, since its increase can mean two things:

• Strengthening the financial independence of the company by increasing equity capital,
• Decreased return on equity.

Financial Independence Ratio Formula

The balance sheet financial independence ratio formula is used to assess the security of an enterprise with its own resources in order to cover existing liabilities. It looks like this:

Kfn \u003d (SK + RK) / WB,

Here, SC is the amount of equity;

RK - the amount of reserve capital;

VB - balance currency.

The formula for the financial independence ratio for the balance sheet, taking into account the lines, will look like this:

Cfn=(p.1310 + p.1340 + p.1360 + p.1370) / p.1600

Here, equity is represented by the sum of lines 1310, 1340, 1360 and 1370. Equity on the balance sheet represents the part of the capital remaining with the enterprise after deducting the amounts of all liabilities.

Line 1600 includes the totality of assets on the balance sheet (balance sheet currency).

Financial Independence Ratio

The financial independence ratio shows how sufficient the company's own funds are to pay for debts. According to the standard, the value of the financial independence ratio should exceed 0.5. At the same time, the higher the value of the coefficient, the more attractive the enterprise for investment.

A high value of the independence coefficient shows the state of the enterprise, in which it has all the necessary funds to pay off all debts, as well as independence from external creditors.

When the value of the coefficient is as close as possible to one, we can talk about the slow pace of development of the enterprise, about the restraining mechanisms of its development. This is due to the fact that an enterprise that refuses to borrow funds often loses the opportunity to receive additional profit and expand production (sales market).

For a more accurate and detailed analysis of the financial independence ratio, it is necessary to compare its values ​​in dynamics, as well as with the average values ​​of other companies in the industry.

Examples of problem solving

EXAMPLE 1

EXAMPLE 2