The risk factor is calculated as a ratio. Financial risk ratio - what is it? What are the financial stability ratios of an enterprise

How to assess the financial risks of a company on the basis of financial statements

The financial activity of the company in all its forms is associated with numerous risks, the degree of influence of which on the results of this activity and the level of financial security is currently increasing significantly. The risks that accompany the company's business activities and generate financial threats are grouped into a special group of financial risks that play the most significant role in the overall "risk portfolio" of the company. A significant increase in the impact of the company's financial risks on results economic activity caused by instability external environment: the economic situation in the country, the emergence of new innovative financial instruments, the expansion of the scope of financial relations, the volatility of the market financial market and a number of other factors. Therefore, the identification, assessment and monitoring of the level of financial risks is one of the urgent tasks in practical activities financial managers.

The initial information used in assessing financial risks is financial statements enterprises: balance sheet, fixing the property and financial position of the organization on the reporting date; profit and loss statement presenting the results of operations for the reporting period. The main financial risks assessed by enterprises:

• risks of loss of solvency;
• risks of loss of financial stability and independence;
• risks of the structure of assets and liabilities.

The model for assessing the liquidity risk (solvency) of the balance sheet using absolute indicators is shown in fig. eleven .

The order of grouping assets and liabilities
The order of grouping assets according to the degree of speed of their transformation into cash	The procedure for grouping liabilities according to the degree of urgency of fulfilling obligations
A 1 . Most liquid assets A 1 \u003d page 250 + page 260	P 1. Most urgent obligations P 1 = p. 620
A 2 . Marketable Assets A 2 = p. 240	P 2 . Short-term liabilities P 2 \u003d p. 610 + p. 630 + p. 660
A 3 . Slow selling assets A 3 = page 210 + page 220 + page 230 + page 270	P 3 . Long-term liabilities P 3 \u003d p. 590 + p. 640 + p. 650
A 4 . Hard-to-sell assets A 4 = p. 190	P 4 . Permanent liabilities P 4 = p. 490

Type of liquidity condition

A 1 ≥ P 1 A 2 ≥ P 2

A 3 ≥ P; A4 ≤ P4

A 1< П 1 А 2 ≥ П 2 ;

A 3 ≥ P 3; A 4 ~ P 4

A 1< П 1 ; А 2 < П 2 ;

A 3 ≥ P 3; A 4 ~ P 4

A 1< П 1 ; А 2 < П 2 ;

A 3< П 3 ; А 4 >P 4

Absolute liquidity

Permissible Liquidity

Disturbed liquidity

Crisis liquidity

Rice. 1 Balance sheet liquidity risk assessment model using absolute indicators

Risk assessment of the financial stability of the enterprise is presented in fig. 2.

Calculation of the value of sources of funds and the value of stocks and costs
1. Surplus (+) or shortage (-) of own working capital	2. Surplus (+) or shortage (-) of own and long-term borrowed sources of reserves and costs	3. Surplus (+) or deficiency (-) total value the main sources for the formation of reserves and costs
±Fs \u003d SOS - ZZ ±Fs = p. 490 - p. 190 - (p. 210 + p. 220)	±Ft = SDI - ZZ ±Ft = p. 490 + p. 590 - p. 190 - (p. 210 + p. 220)	±Fo \u003d JVI - ZZ ±Pho = p. 490 + p. 590 + p. 610 - p. 190 - (p. 210 + p. 220)
S (Ф) = 1 if Ф > 0; = 0 if Ф< 0.

Type of financial condition
±Фс ≥ 0; ±ft ≥ 0; ±Фо ≥ 0; S = 1, 1, 1	±Fs< 0; ±Фт ≥ 0; ±Фо ≥ 0; S = 0, 1, 1	±Fs< 0; ±Фт < 0; ±Фо ≥ 0; S = 0, 0, 1	±Fs< 0; ±Фт < 0; ±Фо < 0; S = 0, 0, 0
Absolute independence	Normal independence
Sources of cost coverage used
Own working capital	Own working capital plus long-term loans	Own working capital plus long-term and short-term loans and borrowings
Brief description of the types of financial condition
High solvency; The company is not dependent on creditors	Normal solvency; Efficient use of borrowed funds; High profitability of production activities	Violation of solvency; The need to attract additional sources; Opportunity to improve the situation	Insolvency of the enterprise; The brink of bankruptcy

Assessing the risk of financial instability
Risk Free Zone	Acceptable Risk Zone	Critical Risk Zone	Catastrophic Risk Zone

Risk assessment of the company's financial stability Pic. 2.

For enterprises engaged in production, a general indicator of financial stability is the surplus or lack of sources of funds for the formation of stocks and costs, which is determined as the difference between the value of sources of funds and the value of stocks and costs.

The assessment of liquidity and financial stability risks using relative indicators is carried out by analyzing deviations from the recommended values. The calculation of the coefficients is presented in Table. 12.

The essence of the methodology for a comprehensive (scoring) assessment of the financial condition of an organization lies in the classification of organizations by level financial risk, that is, any organization can be assigned to a certain class depending on the number of points scored, based on the actual values ​​of its financial ratios. Integral score the financial condition of the organization is presented in table. 3.

1st class (100-97 points) - these are organizations with absolute financial stability and absolutely solvent.

2nd class (96-67 points) - these are organizations of normal financial condition.

3rd class (66-37 points) - these are organizations whose financial condition can be assessed as average.

4th class (36-11 points) - these are organizations with an unstable financial condition.

5th class (10-0 points) - these are organizations with a financial crisis.

Table 1. Financial liquidity ratios 2

Index	Calculation method		Comment
1. General liquidity ratio			Shows the ability of the company to carry out settlements for all types of obligations - both for the nearest and for distant
2. Absolute liquidity ratio		L 2 > 0.2-0.7	Shows what part of the short-term debt the organization can repay in the near future at the expense of cash
3. Coefficient of "critical evaluation"		Permissible 0.7-0.8; preferably L 3 ≥ 1.5	Shows what part of the organization's short-term liabilities can be immediately repaid at the expense of funds in various accounts, in short-term securities, as well as income from settlements
4. Current liquidity ratio		Optimal - not less than 2.0	Shows what part of current liabilities on loans and settlements can be repaid by mobilizing all working capital
5. The coefficient of maneuverability of functioning capital		The decrease in the indicator in dynamics is a positive fact	Shows how much of the functioning capital is immobilized in inventories and long-term receivables
6. Equity ratio		Not less than 0.1	Characterizes the availability of own working capital of the organization necessary for its financial stability

Table 2. Financial ratios used to assess the financial stability of a company 3

Index	Calculation method		Comment
1. Autonomy coefficient		The minimum threshold value is at the level of 0.4. The excess indicates an increase in financial independence, an increase in the possibility of attracting funds from outside	Characterizes independence from borrowed funds
2. Ratio of borrowed and own funds		U 2< 1,5. Превышение указанной границы означает зависимость предприятия от внешних источников средств, потерю финансовой устойчивости (автономности)	Shows how much borrowed funds the company has attracted for 1 ruble of its own funds invested in assets
3. Equity ratio		U 3 > 0.1. The higher the indicator (0.5), the better the financial condition of the enterprise	Illustrates that the enterprise has its own working capital necessary for its financial stability
4. Financial stability ratio		U 4 > 0.6. A decrease in indicators indicates that the company is experiencing financial difficulties.	Shows how much of an asset is financed from sustainable sources

Table 3. Integral scoring of the financial condition of the organization 4

		Criterion		Criterion reduction conditions
		higher	lower
1. Absolute liquidity ratio (L 2)		0.5 and above - 20 points	Less than 0.1 - 0 points	For every 0.1 points down from 0.5, 4 points are deducted
2. Coefficient of "critical evaluation" (L 3)		1.5 and above - 18 points	Less than 1 - 0 points	For every 0.1 points down from 1.5, 3 points are deducted
3. Current liquidity ratio (L 4)		2 and above - 16.5 points	Less than 1 - 0 points	For every 0.1 points down from 2, 1.5 points are deducted
4. Coefficient of autonomy (U 1 )		0.5 and above - 17 points	Less than 0.4 - 0 points	For every 0.1 points down from 0.5, 0.8 points are deducted
5. Equity ratio (U 3 )		0.5 and above - 15 points	Less than 0.1 - 0 points	For every 0.1 points down from 0.5, 3 points are deducted
6. Financial stability ratio (U 4 )		0.8 and above - 13.5 points	Less than 0.5 - 0 points	For every 0.1 points down from 0.8, 2.5 points are deducted

Example

CJSC Promtechenergo 2000 is a regional representative of CJSC ZETO (Plant electrical equipment"). "ZETO", being one of the leading enterprises in Russia in the development and production of electrical equipment, for more than 45 years of history has mastered more than 400 types of products for various needs of the electric power industry.

To analyze the company by the risk criterion, the reporting for 2004-2006 was used. on the basis of the "Balance Sheet" (form No. 1) and the "Profit and Loss Statement" (form No. 2). The analysis results are grouped into tables.

So, let's start with solvency (liquidity). The solvency of an enterprise characterizes its ability to pay its financial obligations in a timely manner due to the sufficient availability of ready-made means of payment and other liquid assets. The assessment of the risk of loss of solvency is directly related to the analysis of the liquidity of assets and the balance sheet as a whole (Tables 4-6).

According to the type of the state of liquidity of the balance according to the results of 2004-2006. the enterprise fell into the zone of acceptable risk: current payments and receipts characterize the state of normal balance liquidity. In this state, the enterprise has difficulties in paying obligations for a time interval of up to three months due to insufficient receipt of funds. In this case, group A 2 assets can be used as a reserve, but additional time is required to turn them into cash. Asset group A 2 belongs to the group of low risk according to the degree of liquidity risk, but the possibility of loss of their value, violation of contracts and other negative consequences is not ruled out. Hard-to-sell assets of group A 4 account for 45% of the asset structure. They fall into the category of high risk in terms of their liquidity, which may limit the solvency of the enterprise and the possibility of obtaining long-term loans and investments.

Graphically, the dynamics of groups of liquid funds of the organization for the period under study is shown in Fig. 3 (in thousand rubles).

One of the characteristics of financial stability is the degree to which reserves and costs are covered by certain sources of financing. The risk factor characterizes the discrepancy between the required value of current assets and the possibilities of own and borrowed funds for their formation (Tables 7, 8).

Table 4. Liquidity analysis of the balance sheet in 2004

Assets	Absolute values		Specific gravity (%)		Passive	Absolute values		Specific gravity (%)
	beginning of the year	the end of the year	beginning of the year	the end of the year		beginning of the year	the end of the year	beginning of the year	the end of the year	beginning of the year	the end of the year

A 1< П 1 ; А 2 ≥ П 2 ; А 3 ≥ П 3 ; А 4 ~ П 4 . Предприятие попадает в зону допустимого риска.

Table 5. Liquidity analysis of the balance sheet in 2005

Assets	Absolute values		Specific gravity (%)		Passive	Absolute values		Specific gravity (%)		Payment surplus (+) or deficiency (-)
	beginning of the year	the end of the year	beginning of the year	the end of the year		beginning of the year	the end of the year	beginning of the year	the end of the year	beginning of the year	the end of the year
The most liquid assets A 1 (DS + FVkr)					The most urgent obligations P 1 (accounts payable)
Quickly realizable assets A 2 (accounts receivable)					Short-term liabilities P 2 (short-term loans and borrowings)
Slowly realizable assets A 3 (stocks and costs)					Long-term liabilities P 3 (long-term loans and borrowings)
Hard-to-sell assets A 4 (non-current assets)					Fixed liabilities P 4 (real equity)

A 1< П 1 ; А 2 ≥ П 2 ; А 3 ≥ П 3 ; А 4 ~ П 4 . Предприятие попадает в зону допустимого риска.

Table 6. Liquidity analysis of the balance sheet in 2006

Assets	Absolute values		Specific gravity (%)		Passive	Absolute values		Specific gravity (%)		Payment surplus (+) or deficiency (-)
	beginning of the year	the end of the year	beginning of the year	the end of the year		beginning of the year	the end of the year	beginning of the year	the end of the year	beginning of the year	the end of the year
The most liquid assets A 1 (DS + FVkr)					The most urgent obligations P 1 (accounts payable)
Quickly realizable assets A 2 (accounts receivable)					Short-term liabilities P 2 (short-term loans and borrowings)
Slowly realizable assets A 3 (stocks and costs)					Long-term liabilities P 3 (long-term loans and borrowings)
Hard-to-sell assets A 4 (non-current assets)					Fixed liabilities P 4 (real equity)

A 1< П 1 ; А 2 ≥ П 2 ; А 3 ≥ П 3 ; А 4 ~ П 4 . Предприятие попадает в зону допустимого риска.

Rice. 3. Liquidity analysis of CJSC Promtechenergo 2000

Table 7. Calculation of coverage of reserves and costs with the help of certain sources of financing

Index	01.01.04	01.01.05	01.01.06	01.01.07
Stocks and costs
Own working capital (SOS)
Own and long-term borrowed sources
The total value of the main sources
A) Surplus (+) or shortage (-) of own working capital
B) Surplus (+) or shortage (-) of own and long-term borrowed sources of reserves and costs
C) Surplus (+) or shortage (-) of the total value of the main sources of formation of reserves and costs
Three-component indicator of the type of financial situation, S

Table 8. Type of financial condition

Terms
S = 1, 1, 1	S = 0, 1, 1	S = 0, 0, 1	S = 0, 0, 0
Absolute independence	Normal independence	Unstable financial condition	Crisis financial condition
Assessing the risk of financial instability
Risk Free Zone	Acceptable Risk Zone	Critical Risk Zone	Catastrophic Risk Zone

As a result of the calculations carried out, it can be concluded. At the end of the study period, stocks and costs are covered by short-term loans. 2004-2005 were characterized by absolute financial stability and corresponded to the risk-free zone. At the end of the analyzed period, the financial condition of the enterprise deteriorated, became unstable and corresponds to the critical risk zone. This situation is associated with a violation of solvency, but it remains possible to restore balance as a result of replenishing equity capital and increasing own working capital by attracting loans and credits, reducing receivables.

In accordance with the calculated liquidity indicators of the balance from the point of view of risk assessment, we can say that the total liquidity indicator (L 1 = 0.73) at the end of the study period does not fit into the recommended values, the absolute liquidity ratio (L 2) has a negative trend. The readiness and mobility of the company to pay short-term obligations at the end of the study period (L 2 = 0.36) is not high enough. There is a risk of non-fulfillment of obligations to suppliers. The critical assessment coefficient (L 3 = 0.98) shows that the organization in the period equal to the duration of one turnover of receivables is able to cover its short-term obligations, however, this ability differs from the optimal one, as a result of which the risk of non-fulfillment of obligations to credit institutions— in the acceptable zone.

The current liquidity ratio (L 4 = 1.13) makes it possible to establish that, in general, there are no predictive payment possibilities. The amount of current assets does not correspond to the amount of short-term liabilities. The organization does not have the amount of free cash and from the standpoint of the interests of the owners in terms of the predicted level of solvency is in the zone of critical risk.

Table 9. Balance sheet liquidity indicators

Index	2004	2005	2006	Changes (+, -) 04–05	Changes (+, -) 05–06
1. General liquidity ratio (L 1)
2. Absolute liquidity ratio (L 2)						L 2 > 0.2-0.7
3. Coefficient of "critical evaluation" (L 3)						L 3 > 1.5 - optimal; L 3 \u003d 0.7-0.8 - normal
4. Current liquidity ratio (L 4)
5. The coefficient of maneuverability of functioning capital (L 5)						A decrease in the indicator in dynamics is a positive fact
6. Equity ratio (L 6)

Table 10. Indicators of financial stability

Index	2004	2005	2006	Changes (+, -) 04–05	Changes (+, -) 05–06
1. Coefficient of financial independence (autonomy) (U 1)
2. The ratio of borrowed and own funds (capitalization ratio) (U 2)
3. Equity ratio (U 3)						lower limit — 0.1 ≥ 0.5
4. Financial stability ratio (U 4)

In terms of risk assessment, the following can be said:

2. Failure to comply with the regulatory requirements for the indicator U 3 is a signal for the founders of an unacceptable risk of loss of financial independence.

3. The values ​​of the coefficients of financial independence (U 1) and financial stability (U 4) reflect the prospect of deterioration in the financial condition.

Table 11. Classification of the level of financial condition

Indicator of financial condition	2004		2005		2006
		Number of points	The actual value of the coefficient	Number of points	The actual value of the coefficient	Number of points

Let's draw conclusions.

2nd class (96-67 points) - in 2004 the enterprise had a normal financial condition. The financial indicators are quite close to optimal, but there is a certain lag in certain ratios. The company is profitable, is in the zone of acceptable risk.

3rd grade (66-37 points) - in 2005-2006. the company has an average financial condition. When analyzing the balance sheet, the weakness of individual financial indicators is revealed. Solvency is on the border of the minimum acceptable level, financial stability is insufficient. In relations with the analyzed organization, there is hardly a threat of loss of funds, but the fulfillment of its obligations on time seems doubtful. The enterprise is characterized by a high degree of risk.

The results of the study according to the risk criterion at the end of the study period are presented in Table. 12.

It can be assumed that the rather unsatisfactory levels of risk of CJSC Promtechenergo 2000 are associated with the active investment activity of the enterprise in recent years. The beginning of the study period was characterized by a fairly high level of surplus of own working capital (about 21 million rubles), at the end of the study period there was a deficit (12 million rubles). However, during the period of active growth and development of the enterprise, this situation is considered normal.

Table 12. Results of the company's risk assessment

Type of risk	Design model	Level of risk
Risk of loss of solvency	Absolute balance sheet liquidity indicators	Acceptable Risk Zone
	Relative indicators of solvency	Acceptable Risk Zone
Risk of loss of financial stability	Absolute indicators	Critical Risk Zone
	Relative indicators of capital structure	In terms of equity and financial stability ratios — high risk
Comprehensive risk assessment of the financial condition	Relative indicators of solvency and capital structure	High risk area

1 Stupakov V.S., Tokarenko G.S. Risk management: Proc. allowance. M.: Finance and statistics, 2006.

3 Dontsova L.V. Analysis of financial statements: Textbook / L.V. Dontsova, N.A. Nikiforov. 4th ed., revised. and additional Moscow: Delo i Service Publishing House, 2006.

The financial risk ratio is one of the indicators economic sustainability companies on this moment. This is the ratio to the company's own funds. In other words, this refers to the total amount of credit debt of the enterprise, divided by the actual value of its own. The final figure is the coefficient of financial risk.

What is the calculation of KFR for?

• To calculate the discount tax rate if the company is entitled to tax breaks.
• As a determining factor economic feasibility cooperation for potential creditors (investors) of the business area.
• To determine the actual viability of the enterprise, forecast the dynamics of further development.

Speaking about a certain figure, KFR is considered critical when approaching one and the most optimal when approaching zero. The dynamics of changes in CFR should systematically approach zero from trimester to trimester. And if this happens, the enterprise can be considered conditionally successful.

Only in this case, the organization can safely count on:

• To attract additional loans for further development.
• On partnership interest in long-term cooperation from other business structures.
• For the prospect of a speedy and successful systematic repayment of previous debt obligations.

Is the instability of the KFR an indicator of the death of the company?

With the economic correctness of the company's work, the CFR is constantly "melting". But a sharp increase in the indicator is not always the collapse of the company. This also happens with a one-time replenishment of the company's budget with investors' funds. So KFR can suddenly rise to one or more. It is not scary if, after the distribution of foreign tranches, the “melting” dynamics of the KFR is again established.

The beginning of the inexplicable growth of KFR is a wake-up call for the organization. Often this happens when the redistribution is incorrect. financial flows newly hired manager. In this case, an urgent audit of the company is required in order to avoid an absolute collapse. It should be understood that the growth of KFR occurs exponentially. And from a certain moment the company will have a doomed position.

Fictitious KFR as a way to survive

This is an absolutely far-fetched figure, designed to throw dust in the eyes of partners, flaunting their pseudo-successful state. Used infrequently. Typically, the fraudulent company is in a critical situation and hopes to improve its position by joining a larger player in its own business segment. The scheme works in isolated cases, if the manager has impressive experience in crisis response. In other cases, a weak company is quickly taken over by a strong partner with full appropriation of assets, databases and all the actual property of the former partner. This does not often end amicably for the former founders of the fraudulent firm. However, the scheme is not so bad, for example,

The financial stability ratio shows how stable the company's position is and whether any financial problems threaten it in the near future. According to the financial stability ratio, one can judge how many long-term and sustainable sources of financing for business activities a company has.

What does the financial stability ratio show

The financial stability ratio shows how the company's assets are financed from reliable and long-term sources. That is, it shows the share of sources for financing its business activities that the company can attract on a voluntary basis.

Analyzing the financial stability ratio, the formula of which will be given below, we can say that the closer its value is to 1, the more stable the company's position, since the share of long-term sources of financing is much higher than short-term ones. The ideal value of 1 indicates that the company does not attract short-term sources of financing, which, however, is not always economically correct.

Financial stability ratio - balance sheet formula (data from form 1):

Kfinu = (p. 1300 + p. 1400) / p. 1700.

If you decipher the row indicators, the formula will look like this:

Kfinu \u003d (Ksob + Obds) / Ptot,

where: Kfinu - coefficient of financial stability;

Кsob — own capital, including available reserves;

Obds - long-term loans and credits (obligations), the term of attraction of which is more than 1 year;

Пobsh - total for liabilities (otherwise - balance sheet currency).

Since the value of line 1700 of the balance sheet is the sum of the total values ​​of lines 1300, 1400 and 1500, and line 1500 is short-term liabilities, we can say that a coefficient close to 1 shows how little the company has attracted short-term loans. A low share of short-term borrowing is precisely what is called financial stability.

Normative value of the financial stability ratio

Acceptable value for stable economic activity financial stability ratio- in the range from 0.8 to 0.9. This is the normative value.

The value of the coefficient exceeding 0.9 indicates the financial independence of the company. In addition, it also suggests that the analyzed enterprise will remain solvent in the long run.

Risk ratios of financial stability of the organization

Note! If the coefficient value is greater than 0.95, this may indicate that the company is not using all the available opportunities for business expansion, which can be provided through "fast" sources of financing. Very often, such a credit policy of the company (not to attract short-term loans) indicates inefficient management.

If the financial stability ratio fell below 0.75, this should be a very alarming signal for the company. This situation may indicate a risk of chronic insolvency of the company, as well as its falling into financial dependence on creditors.

What are the financial stability ratios of an enterprise

To assess the dependence on each component of the company's assets and property in general, various financial stability ratios are used. Depending on the formulas and the analytical component, simple and complex coefficients are distinguished.

1. The simplest financial stability ratios are those that determine the degree of autonomy of the company. They do not take into account the structure of assets and liabilities. The very essence of the value of autonomy (financial independence) is reflected by the Kfn coefficient, which shows the concentration of equity capital.

It is calculated by the formula:

Kfn = p. 1300 / p. 1600.

Its standard value is in the range of 0.5-0.7.

2. Another group (taking into account the capital structure and type of loans) includes a coefficient that determines the financial dependence of the company. It is calculated by the formula:

Kfinz \u003d (Obds + Obks - Duch + Dbud + Rpr) / Ptotal,

where: Obds - long-term loans and credits (liabilities);

Obks - short-term loans and obligations;

Duch - debts to the participants;

Dbud - income expected in the future;

Рpr - reserves of expected expenses;

Ptot - total for liabilities.

The balance formula will look like this (line numbers from form 1 are given):

Cfinz = (p. 1400 + p. 1500 - p. 1450 - p. 1530 - p. 1540) / p. 1700.

The standard value for this coefficient will be 0.5, and the recommended value will be 0.8.

3. The ratio of borrowed and own funds (Krzc) will give the most realistic assessment of the stability of the company in financial plan. He will indicate how many rubles borrowed from creditors account for 1 ruble. own funds.

His formula for balance looks like this:

Kszs = (p. 1400 + p. 1500) / p. 1300.

The normative value for this coefficient will be a number less than 0.7. The dynamic growth of the indicator will indicate that the company's dependence on creditors is increasing.

4. The coefficient of maneuverability of its assets (Kman) will indicate how much own funds are in circulation. Its standard value is in the range of 0.2-0.5. It is calculated using the following formula:

Kman \u003d (Ksob - Vna) / Ksob,

where: Кsob — own capital, including available reserves;

Vna - the total value of non-current assets.

Or for balance:

Kman = (p. 1300 - p. 1100) / p. 1300.

5. The ratio of current and non-current assets (Ksova) indicates the number of rubles of non-current assets per 1 rub. negotiable.

Xova = p. 1200 / p. 1100.

The normative value for this indicator has not been established.

6. Coverage ratio working capital(Kpokr) with their sources of funding. Its standard value should be greater than 0.1. The formula is:

Kpokr = (Ksob - Vna) / Both,

where: Both are current assets.

Or for balance:

Kpokr = (p. 1300 - p. 1100) / p. 1200.

7. The ratio of reserves with own funds (Kobzs) has a standard value, which should be in the range of 0.6-0.8. Determined by the formula:

Kobzs \u003d (Ksob + Obds - Vna) / Reserves.

Or for balance:

Kobzs = (p. 1300 + p. 1400 - p. 1100) / p. 1210.

Results

The essence of the financial stability ratio is that with its help a company can determine its dependence on creditors and learn about its solvency. This indicator must be regularly calculated. For this, data is taken from the balance sheet.

Knowing the current state of a company's financial strength will help it draw up a financial and business plan for the next year. In addition, the company will be able to build its credit policy more competently in accordance with the goals set and the current financial situation.

To assess the financial stability of an enterprise in the long term, in practice, indicators (coefficient) of financial leverage are used.

The financial leverage ratio is the ratio of borrowed funds of an enterprise to its own funds (capital). This coefficient is close to . The concept of financial leverage is used in economics to show that, using borrowed capital, an enterprise forms a financial leverage to increase profitability and return on equity. The financial leverage ratio directly reflects the level of financial risk of the enterprise.

Formula for calculating the financial leverage ratio
Financial Leverage Ratio = Liabilities / Equity

Under obligations, various authors use either the sum of short-term and long-term obligations or only long-term obligations. Investors and business owners prefer a higher leverage ratio because it provides a higher rate of return. Lenders, on the contrary, invest in enterprises with a lower financial leverage ratio, since this enterprise is financially independent and has a lower risk of bankruptcy. The financial leverage ratio is more accurately calculated not by the company's balance sheets, but by the market value of assets. Since the cost of an enterprise is often market price assets exceeds the balance sheet, which means the level of risk this enterprise lower than when calculated at book value.

Financial Leverage Ratio = (Long Term Liabilities + Short Term Liabilities) / Equity

Financial Leverage Ratio = Long-Term Liabilities / Equity

If we paint the coefficient of financial leverage into factors, then according to G.V. The Savitsky formula will look like this:

CFL = (Share of Debt in Total Assets) / (Share of Fixed Capital in Total Assets) / (Share of Working Capital in Total Assets) / (Share of Equity Working Capital in current assets) * Maneuverability of equity)

Effect financial leverage(leverage)
The financial leverage ratio is closely related to the financial leverage effect, which is also referred to as financial leverage effects.
The effect of financial leverage shows the rate of increase in the return on equity with an increase in the share of borrowed capital.

Leverage Effect = (1- Income Tax Rate) * (Gross Margin Ratio - Average Interest on a Company Loan) * (Amount of Borrowed Capital) / (Amount of Equity of a Company)

(1-rate of income tax) is a tax corrector showing the relationship between the effect of financial leverage and various tax regimes.

(Gross Margin Ratio - Average interest on a loan from an enterprise) represents the difference between the profitability of production and the average interest on loans and other liabilities.

(Amount of debt capital) / (Amount of own capital of the enterprise) represents the coefficient of financial leverage (leverage) characterizing the capital structure of the enterprise and the level of financial risk.

Normative values ​​of the financial leverage ratio
The normative value in domestic practice is the value of the leverage ratio equal to 1, that is, equal shares of both liabilities and equity.
In developed countries, as a rule, the leverage ratio is 1.5, that is, 60% of debt and 40% of equity.

If the coefficient is greater than 1, then the company finances its assets at the expense of borrowed funds from creditors, if it is less than 1, then the company finances its assets at the expense of its own funds.

Also, the normative values ​​of the financial leverage ratio depend on the industry of the enterprise, the size of the enterprise, the capital intensity of production, the period of existence, the profitability of production, etc. Therefore, the coefficient should be compared with similar enterprises in the industry.

High values ​​of the financial leverage ratio may be for enterprises with a predictable cash flow for goods, as well as for organizations with a high share of highly liquid assets.

Financial risk ratio- shows the ratio of borrowed funds and total capitalization and characterizes the degree of efficiency in the use of equity by the company. It determines how large the dependence of the company's activities on borrowed funds.

Analysis of the financial risk ratio is carried out in the FinEkAnalysis program in the Market Stability Analysis block as a Capitalization Ratio.

Financial risk ratio formula

A company, the majority of whose liabilities are borrowed funds, is called financially dependent, the financial risk ratio of such a company will be high.

A company that finances its own activities with its own funds is financially independent, its financial risk ratio is low.

This ratio is important for investors considering this company as an investment.

They are attracted by companies with a predominance of equity capital. However, the leverage should not be too low, as this will reduce the share of their own profits that they will receive in the form of interest.

Synonyms

capitalization ratio, financial leverage ratio

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