Coefficient of solvency. The formula for success

The solvency of the enterprise is the main characteristic, which is responsible for cooperation with investors, banking institutions, creditors. After all, this indicator allows us to talk about the possibility of organizing Pay off their debts.

Coefficient of solvency (the formula of which has several options), depending on the type of activity of the organization, is calculated in several ways. So, to calculate this coefficient in a manufacturing enterprise, there is one approach, and in the trading one, another.

Coefficient of solvency (formula for a manufacturing enterprise)

The given calculation can be made, having on hands financial reporting of the enterprise (balance). The formula is quite simple and is calculated as the ratio of equity to liabilities on the balance sheet.

Equity capital in turn is net own funds that participate in business, less accounts payable, short-term and long-term loans.

The solvency coefficient of the enterprise, the formula of which is given above, also takes into account the current and non-current assets. The focus is on the current assets, because it is due to them, if necessary, you can pay off the debt or pay for something.

An example of calculating this coefficient

Having on hand the balance of the enterprise, we can immediately calculate the solvency ratio. The formula is used as in the article. The data are as follows:

The following figures are in the asset: the company's cash desk - 1,000 rubles, on the current account the balance is 10,000 rubles, the goods in the warehouse for the amount of 10,000 rubles, the production equipment is 100,000 rubles. The premises of the workshop - 100 000 rubles. As a result, we have assets worth 221,000 rubles.

In the balance sheet: authorized capital - 100 000 rubles, urgent liabilities (such as calculation with the budget, on wages) - 40 000 rubles, short-term liabilities (loans up to one year) - 60 000 rubles, long-term liabilities - 21 000 rubles. The currency of the balance sheet is 221 000 rubles.

Let's proceed to the calculations: from the liabilities of the balance sheet it is clear that the shareholders' equity is 100,000 rubles, the rest is the enterprise's liabilities. In our case, the calculation will be as follows: 100,000 / 40,000 + 60,000 + 21,000 = 0.82. This suggests that we can cover only 82 percent of our commitments with our own money.

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-negotiable.

There is also a coefficient of loss of solvency, the formula of which is calculated by means of dynamic changes in the solvency for several periods. This gives an opportunity to talk about the trend of changing this indicator in the enterprise for the reporting periods.

Normative values of coefficients

Let's briefly consider the normative values, which 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 credit such an enterprise, there is a risk of non-payment of a loan.

For trading companies and organizations with high liquidity (travel agencies, firms that provide services, construction companies), in connection with the peculiarities of business, this coefficient may amount to a rate within the range of 0.1-0.5.