Coefficient of the coverage structure of long-term investments. Assessment of financial security

The stability or instability of a firm or company can be determined by analyzing how it depends on external sources funding, whether it has its own funds and whether it manages them competently and whether it can distribute it so that there are no unnecessary side costs and penalties.

Such data is generally necessary for suppliers, buyers or users of goods and services of a particular organization in order to understand whether the enterprise is sustainable and whether it can provide effective and fruitful cooperation for its partners.

There are many definitions of the term "financial stability" (FinU), we offer you the one that is considered the most complete:

FinU is a financially independent company that effectively manages its capital. It can also be noted that FinU is understood as the state of the company's accounts, whether they can guarantee the stability of the organization. According to the degree of stability, 4 stages can be distinguished.

First, the absolute stability of the company. This means that all borrowed funds (LC) can be fully covered by equity capital (IC), which means that the company is absolutely independent of creditors. In formulaic notation, this can be expressed as:

The second is normal stability. When supplies are covered from normal sources, the abbreviation is NPC. Formula:

NIP = SC + AF + payments on loans for goods and services

The third, unstable company. This stage occurs when the normal sources of coverage of reserves are not enough, you have to look for additional funds.

SC< ЗС < НИП

And the last, fourth, crisis. To the conditions of the third stage, debts on loans and outstanding loans are added.

NPC< ЗС

How to define financial stability?

FinU can be fixed through the calculation of certain markers, the so-called FinU coefficients. These indicators express the visible and latent growth and the position of the resource base of the enterprise through the ratio of the ability of the budget to provide for the costs of production and other economic needs.

There are several types of KFinU, for example, such coefficients as: financial dependence, capital maneuverability and its concentration, structure and accumulation of loans, long-term investment coefficient and others.

Why are these values ​​taken to determine the success of a firm? Because KfinU shows how strongly the company relies on borrowed funds, whether it has the ability to cope with financial risks on one's own. Correct and accurate calculations of the coefficients will help organize the work of a particular business in such a way as to avoid a crisis if creditors demand their funds back.

Long-term investment structure ratio (KSDV)

Speaking specifically about this coefficient, we will rely on the logic of the following hypothesis - "borrowed funds taken for a long period (more than 12 months) will be directed to the fixed assets of the enterprise and other financial investments." Thus, KSDV determine the part of the capital, made up of long-term loans in the non-current asset of the organization.

Its minimum value may indicate the inability of the enterprise to obtain a long-term loan, and the highest one indicates either the issuance of collateral and surety, or too strong subordination to external capital. In this case, an increase in the value of the coefficient of the structure of long-term investments is a bad sign.

The formula for calculating the coefficient of the structure of long-term investments is as follows:

KSDV = DP / VAP

Decryption:

DP - long-term liability

VAP - non-current assets of the enterprise.

Conclusion

Of course, it will be difficult to draw a conclusion based on the coefficient of the structure of long-term investments alone, since all the coefficients listed above determine the assets of a business from completely different angles. Moreover, there are no unified tabular normative standards for these indicators. Their values ​​are correlated with a number of conditions, such as the industry in which the company operates, under what conditions the loan is received, where the organization draws its funds from, the turnover of funds, reputation, and many others.

Investment coverage ratio is a financial ratio showing how much of an organization's assets are financed from sustainable sources: own funds and long-term liabilities. Another name for the indicator is the coefficient of long-term financial independence.

Calculation of investment coverage ratio

Investment coverage ratio = (Equity + F1)/F1,

Where
Equity = the sum of the section of the Balance "Capital and reserves" plus the debt of the founders on contributions to authorized capital;
F1 – balance line "Total long-term liabilities";
F1 - total Balance (i.e. the total amount of the organization's assets).

The normal value of the indicator

If the coefficient is close to 1 or more, this indicates the full coverage of long-term investments in the enterprise's activities with own funds and borrowed funds with a long payback period. If the value is less than 0.7-0.8, a situation is possible in which the organization will not be able to pay off creditors for the reason that it used short-term loans and borrowed funds. short time cash to buy out current assets(buildings, equipment, etc.) that will bring monetary returns later. In this case, the investor should analyze other solvency indicators for sustainability financial position organizations.

The assessment of financial security most fully characterizes financial condition enterprises in terms of:

• availability of financial resources (FR)
• expediency of placement and effective use of FR
• financial relationships with other entities (investors, creditors)
• solvency and financial stability.

The system of indicators selected for assessing financial security reflects the financial condition of the enterprise long term. that is, its ability to maintain its solvency for a long period, at least for the period allotted for the implementation of a particular project. It characterizes the general financial structure of the enterprise and the degree of its dependence on creditors and investors. Therefore, the analysis of financial security is often called the analysis of long-term solvency.

The main task of assessing the financial security of an enterprise is to determine the degree of dependence of its activities on borrowed sources and the sufficiency equity in a given structure of assets.

The main criteria for assessing financial security

Financial stability. Shows whether the enterprise has enough own funds to cover all obligations, and answers the question: how many hryvnias / kopecks of own funds account for each hryvnia of borrowed funds.

Kfu \u003d Sk / O

kfu– financial stability ratio
Sk equity capital (including collateral, reserves and funds of the TF 1)
ABOUT– liabilities (including deferred income)

You can calculate this ratio in reverse order (O / Sk), but in this case, an increase in this ratio will indicate a decrease in financial stability, and not a decrease, as in the previous formula. This inverse is sometimes referred to as the ratio. financial leverage.

One way or another, but in itself this indicator already says a lot. So, in cases where equity capital exceeds liabilities at times, then in assessing financial security, one can limit oneself only to this result. Especially if the analyst is faced with more complex tasks related to other sections of the analysis and representing critical areas for this enterprise.

Financial independence (financial autonomy). Another name is the capital concentration ratio. Reflects the share of the owners of the enterprise in the total amount of funds invested, as well as reinvested in its activities:

Kfa \u003d Sk / Wb

kfa– coefficient of financial autonomy
Sk
wb- balance currency

The indicator calculated in reverse order (Wb / Sk) is called the coefficient of financial dependence. Accordingly, the growth of the financial autonomy ratio reflects favorable trends, while the growth of the financial dependence ratio reflects unfavorable ones.

Maneuverability of own capital. Shows what part of equity capital is used to finance current activities (i.e., is in a mobile form), and what part is capitalized in non-current assets. In other words, it determines the share of capital that can be freely maneuvered, because it is not invested in capital assets, but is used in current activities:

Kmsk \u003d (Sk + To - Vna) / (Sk + To)

• kmsk
• Sk– own capital (including collateral, reserves and funds of the Central Fund)
• Before- long term duties
• Vna– non-current (capital) assets.

The formula for calculating the equity capital flexibility ratio can be represented as:

Kmsk \u003d (Ta - To) / (Sk + Do)

• kmsk– coefficient of equity capital maneuverability
• Ta– current assets (including deferred expenses)
• That– current liabilities (including deferred income)
• Sk– own capital (including collateral, reserves and funds of the Central Fund)
• Before- long term duties.

The numerator of the formula (both in the form: (Sk + To - Vna), and in the form: (Ta - To) represents the value of own working capital (working capital). But in general, the formula is the ratio of working (working) capital to long-term 2 to the source of all own funds (both current and non-current).Therefore, we can assume that the improvement in the state working capital depends on rapid growth own working capital compared to growth sources of own funds(equity capital and long-term liabilities), since there is a well-known dependence here: the less the company has fixed assets and other non-current assets, the more it has its own working capital. However, this does not mean that enterprises should strive to reduce the share of capital assets in the total amount of funds at their disposal.

In the numerator and denominator of this formula, the amount of long-term liabilities is added to the amount of equity. This amount can be excluded if we do not accept the point of view that long-term liabilities, due to their long-term nature, are at the complete disposal of the enterprise at the time of analysis, which means that there is no risk of entering a state of critical liquidity, since there is no likelihood of immediate repayment requirements these obligations from creditors. Simply put, long-term liabilities are included in this formula because the agility factor is calculated on the assumption that long-term loans the company issued for the acquisition of capital assets.

The level of flexibility depends on the nature of the enterprise. So, in capital-intensive industries, its normal level should be lower compared to its level in material-intensive industries. That is, it cannot be unequivocally stated that the higher the maneuverability coefficient, the better the financial condition. At the same time, it cannot be denied that the provision of current assets with equity is a certain guarantee of stability.

Investment coverage ratio. Shows the proportion of assets that are financed from sustainable sources - equity and long-term loans.

Kpi \u003d (Sk + To) / Wb

• KPI - investment coverage ratio
• Wb - balance currency

This is an indicator that is inverse to the ratio of current liabilities (including deferred income) to the balance sheet, 3, i.e., two indicators taken together add up to one.

Coefficient of structure of long-term investments. Shows how much of the capital assets are financed by long-term borrowed money. At the same time, it is assumed that long-term credits and loans were received in full for these purposes.

Ksdv \u003d To / Vna

• Ksdv - coefficient of the structure of long-term investments
• Before - long-term liabilities
• Vna - non-current assets

A too high indicator of the structure of long-term investments may indicate an unjustified delay in capital investments or premature receipt of long-term loans for these purposes, and both mean a potential risk of increasing the cost of paying interest on loans. The ratio of long-term borrowings is closely related to the coefficient of the structure of long-term investments (see paragraph 7 below).

Coefficient of financial dependence. An indicator that is the opposite of the indicator of financial independence (see item 2). Another name is the debt capital concentration ratio. Shows the share of borrowed (attracted) capital in the total amount of funds at the disposal of the enterprise.

Kfz \u003d O / Wb

• Kfz - coefficient of financial dependence
• O - total liabilities (including deferred income)
• Wb - balance currency

It is advisable to calculate the coefficient of financial dependence if the inverse indicator is not calculated - the coefficient of financial autonomy. It is enough to calculate one of them. Favorable trends reflect the growth of the coefficient of financial autonomy, and unfavorable - the growth of the coefficient of financial dependence.

Long-term borrowing ratio. Shows what part of the sources of formation of non-current assets falls on equity, and what part - on long-term borrowed funds. Determines the risk of the enterprise when using borrowed funds. It is important for determining credit risk, therefore loan agreements often contain conditions governing the maximum share of a company's borrowed capital, expressed by the ratio:

Kdpz \u003d Before / (Sk + Before)

• Kdpz - coefficient of long-term attraction of borrowed funds
• Before - Long-term liabilities
• Sk - equity capital (including collateral, reserves and funds of the Central Fund).

The growth of this indicator means increased dependence on creditors. The sum of long-term liabilities and equity (the denominator of the formula) is sometimes called capitalization.

1. Capital structure ratio. Gives an idea of ​​the structure of attracted capital, reflecting what part of it falls on long-term liabilities, i.e. the share of liabilities from which the company is free in the current period.

   Kspk \u003d Before / About

   • Kspk - ratio of the structure of attracted capital
   • Before - long-term liabilities
   • O - the total amount of all liabilities (including deferred income).

2. Equity ratio. Shows the share of equity attributable to current assets (embodied in current assets). Represents the ratio of the difference between the volume of sources of own funds and the book value of non-current assets to the value of all working capital available to the enterprise.

   Koss \u003d (Sk - Vna) / Oa

   • Koss - equity ratio
   • Sk - equity (including collateral, reserves and funds of the Central Fund)
   • Vna - book value of non-current assets
   • Oa - the cost of current assets (including deferred expenses).

Interest security.

Some potential lenders, in order to confirm the ability of the borrower to service the debt, require the calculation of the interest coverage ratio. It is calculated as the ratio net profit to interest payments and shows how many times the profit can cover the required amount of interest for the loan. In other words, how many times the interest fits into the amount of profit. Of course, for the complete peace of mind of creditors, this indicator can always be calculated, but in fact this is not a guarantee that debt service obligations will be strictly observed. After all, profits are not only used to pay interest. Therefore, the author does not pay attention to this indicator special attention and does not include in the list of criteria by which one can judge the financial security of an enterprise.

Absolute indicators of financial security.

These are indicators characterizing the availability of assets with the sources of their formation.

The sources of formation of stocks are determined by three indicators:

1. The presence of working (working) capital (Ok), as the difference between equity (SK) and the book value of non-current assets (Vna). At the same time, it is sometimes advisable to add long-term liabilities to equity, if we proceed from the assumption that only capital assets were acquired at the expense of long-term loans. 4 In this case (if long-term liabilities are also taken into account), the formula for calculating the amount working capital can be represented in a simplified form as the difference between the sum of current assets and current liabilities (Ta - To). But at the same time, it should be remembered that deferred expenses should be taken into account as part of current assets, and deferred income as part of current liabilities.
2. The presence of long-term sources of formation of reserves (Isz), as the sum of working capital (OK) and long-term liabilities (Up to). Although, ideally, long-term liabilities should not participate in the formation of stocks. The “ideal case” is when long-term loans and borrowings are attracted only for the acquisition of capital assets.
3. The value of the total sources of reserves formation (Isz), as the sum of long-term and short-term (current) sources (Izs + To).

Thus, each next indicator is determined on the basis of the previous one.

These three indicators of the availability of sources of formation of reserves correspond to three indicators of the availability of reserves with sources of their formation:

1. Surplus (+) or shortage (-) of working (working) capital (I / Nok), as the difference between the amount of working capital (Ok) and the value of stocks (Z).
2. Excess (+) or shortage (-) of own and long-term borrowed sources of reserves formation (I/Nsz), as the difference between the indicator of the presence of own and long-term borrowed sources (Sl) and the cost of reserves (Z).
3. Surplus (+) or shortage (-) of the total value of the main sources of reserves formation (I / Noi), as the difference between the indicator of the magnitude of the total sources of reserves formation (Ifz) and the cost of reserves (Z).

Approximate values ​​of indicators of financial security.

There are no uniform regulatory criteria for considering indicators of financial security in international practice. Certain standards are proposed in various textbooks and methods, but no one has yet given exact justifications why this or that indicator of financial security should be equal to this particular value.

So, according to empirical observations, the financial stability ratio should exceed one, the financial independence ratio should exceed the value of 0.5 or at least equal to this value, and the equity ratio should, as well as the financial stability ratio, have a value greater than one. In no case should one make hasty conclusions, even if it turned out that all three coefficients do not meet the normative ones. Meanwhile, the necessary and / or sufficient share of capital is not only individual for each enterprise, it can be set separately for each period, because in different periods some processes of activity may not be repeated. The share of own capital in sources of financing should not be the maximum possible, it should be optimal in relation to the given structure of assets.

Each company sets its own criteria, depending on industry affiliation enterprises, the structure of its capital, credit conditions, capital intensity, material intensity, the rate of turnover of capital advanced into production, and other factors. Therefore, the values ​​of these indicators can vary, depending on the factors affecting the activity. specific enterprise. All indicators of financial security calculated during the analysis of a particular enterprise are compared with similar normative and industry average indicators. At the same time, it often happens that the actual values ​​of the financial security indicators of a given enterprise are lower than the normative and industry average, but this does not prevent it from being listed among the successful market participants.

Determination of financial stability

Financial condition is usually defined as:

• sustainable
• unstable
• crisis.

The financial position of an enterprise is considered stable if the analysis has shown its ability to finance its activities and make payments on time.

The instability of the financial situation can be judged without even conducting a deep analysis: this is evidenced by delays in payments on wages, the constant presence of overdue loans and overdue debts to other creditors, as well as taxes. These external symptoms eloquently testify to the precariousness of the situation, the analysis then only confirms the diagnosis.

A conclusion about a financial crisis is made if, in the presence of characteristics of its instability, the dynamics of profitability is constantly decreasing.

If, in the presence of all other characteristics listed above, the amount of uncovered losses accumulated on the balance sheet reaches the amount of equity capital, the enterprise is declared bankrupt.

Recognizing the financial position of an enterprise as unstable requires the calculation of the solvency recovery ratio (see the section "Assessment of liquidity and solvency"). However, the recognition of the financial position of the enterprise as stable does not relieve the analyst from calculating this coefficient, which in this case will be called the coefficient of loss of solvency. For the coefficient of restoration of solvency, a period of 6 months is taken into account; for the coefficient of loss of solvency - 3 months.

Formally, the stability / instability of the financial situation can be defined as follows:

It should be emphasized that the table gives only formal conditions for recognizing the financial position of an enterprise as stable or unstable. Therefore, be guided by formal features in isolation from the main indicators for assessing financial security is not recommended.

1 TF - target financing.

2 term long-term sources here introduced to denote equity, reserves, collateral and long-term liabilities taken together. Those. this term should be understood as all liabilities minus current liabilities.

3 This reciprocal coefficient, due to the obviousness of its value, is not given here.

4 See above the explanation to paragraph 3 of the Handbook of criteria for assessing financial security.

Any enterprise can bring profit to the owner. But is it possible to predict all the successes and failures in advance? own business? Surely this is unlikely to be done, however, of course, there are indicators by which you can determine in which direction your company is developing. One of them is financial sustainability, thanks to which the entrepreneur gets the opportunity to learn how independent his organization is financially ...

The concept of financial stability

Financial stability is a share of the overall stability of the enterprise, illustrating the availability of funds intended to maintain effective work firms, the balance of financial flows and all those factors due to which a business is considered financially independent. We can say that financial stability is evidence of the company's solvency in the long term. It is its definition and evaluation that is an important step financial analysis for any firm. Otherwise, the owner himself will not notice how he will suffer huge losses.

Types of financial stability ratios

The financial stability of any enterprise can be easily determined by calculating the corresponding indicator - the coefficient of financial stability. This value characterizes the dynamics and state financial resources organization as to how much the firm's budget is able to cover the costs of the production process and other purposes. Financial stability ratio presented in the following variations:

Coefficient of financial dependence;
- equity concentration ratio;
- coefficient of equity capital maneuverability;
- coefficient of the structure of long-term investments;
- debt capital concentration ratio;
- ratio of the structure of borrowed capital;
- coefficient of long-term attraction of borrowed funds;
- ratio of own and borrowed funds.

Why exactly the value of the financial stability ratio allows you to predict the success of the company? The fact is that this value illustrates how specific business depends on loans Money whether he can freely dispose of his capital, excluding the risk of paying penalties for non-payment or high interest. It can be said that calculation of the financial stability ratio helps to properly plan the work at the enterprise and avoid the risks associated with unplanned payment of funds.

Equity concentration ratio

This indicator determines the share of funds that is invested in the activities of the company by its owner. The higher this coefficient of financial stability of the enterprise, the less dependent it becomes on external creditors. This value is calculated using the following formula

KKSK \u003d SK / WB,
where SC is equity, WB is the currency of the bank.

Financial dependency ratio

This ratio of financial stability characterizes the activities of the company, based on how much its assets are financed by borrowed funds. If their share is too large, it is believed that the solvency of the enterprise itself is reduced. As a result, the company acquires little financial stability, which, in turn, leads to a minimal opportunity to receive not only a loan, but also the trust of counterparties.
True, it should be noted that a too large value of the share of the company's own funds is not considered optimal, since when the business is greater than the cost of the source of loans, in case of a lack of funds, a loan can be taken. That is why the task of each enterprise is to calculate the optimal value of the coefficient of financial dependence. To determine the value of this indicator, the following formula is used:

KFZ = WB / SK
where WB is the currency of the bank, SC is equity capital.

Equity maneuverability ratio

This indicator determines the share of sources of own funds of the business owner in the mobile form. In this case, its recommended value is 0.5 or more. The maneuverability coefficient can be calculated using the following formula:

KMSK = SOS / SK
where SK - equity, SOS - own working capital.

Naturally, the value of this coefficient directly depends on the type entrepreneurial activity. For example, in material-intensive production, this indicator is higher than in capital-intensive industries.

Debt capital concentration ratio

The calculation of this indicator is essentially the same. The formula for determining this coefficient is as follows:

KKZK = ZK / VB
where ZK is borrowed capital, which is the short-term and long-term obligations of the company; VB is the balance sheet currency.

Long-term investment structure ratio

The ratio of the structure of long-term investments allows you to determine the share of long-term liabilities in the total assets of the company. If the value of this indicator is low, it should be assumed that the company cannot attract long-term loans and credits. If this ratio is too high, this means that the company is able to provide collateral and financial guarantees, or it is too dependent on outside investors. The calculation of the coefficient of the structure of long-term investments is made according to the following formula:

KSDB = DP / VOA
where DP - long-term liabilities, BOA - non-current assets.

Long-term borrowing ratio

The essence of the coefficient of long-term borrowing is the ability to determine the part of the sources of formation of non-current assets at the reporting date, which falls on long-term borrowed funds and equity. If this indicator is too high, then the company is dependent on the attracted capital. This will lead to the fact that in the future the owner will pay a large number of funds for the use of loans and credits. The calculation of the long-term borrowing ratio is calculated using the following formula:

KDP = DP / DP + SC
where DP - long-term liabilities; SC is the equity capital of the firm.

Debt structure ratio

This ratio allows you to determine the sources of formation of borrowed capital of the company. The definition of the formation of current and non-current assets of the enterprise depends on this, since long-term borrowed funds are often taken to restore or acquire non-current assets, and short-term loans are used to carry out the current activities of the enterprise and acquire current assets. To determine the value of the debt capital structure ratio, the following formula is used:

KSZK = DP / ZK
where DP - long-term liabilities, LC - borrowed capital.

Debt to equity ratio

If the value of this indicator exceeds 1, then the company is considered dependent on borrowed funds. Often its acceptable value is determined taking into account the specific working conditions in the company. First of all, take into account the speed of turnover of working capital. That is why it is recommended to additionally determine the turnover rate of receivables and inventories for a specific period of time. If it is established that receivables turn around faster than working capital, this means that money is flowing into the enterprise with great intensity - there is an increase in the capital of the company. It is in these cases that it is considered that the ratio of own and borrowed funds may exceed the value of 1. This indicator is calculated using the following formula:

KS / Z = ZK / SK
where ZK - borrowed capital, SC - equity capital of the enterprise.

Instead of an afterword...

As you can see, the calculation of the above indicators determines the overall stability of the company in modern conditions. Agree, predicting the outcome of your business can certainly serve you well!

1. Equity concentration ratio. It characterizes the share of the property of the owners of the enterprise in the total amount of funds advanced in its activities. The higher the value of this ratio, the more financially stable, stable and independent of external creditors the enterprise. The addition to this coefficient is the concentration coefficient of attracted funds - their sum is equal to 1 (or 100%).

2. Coefficient of financial dependence. An indicator inverse to the equity concentration ratio. The growth of this indicator in dynamics means an increase in the share of borrowed funds in the financing of the enterprise. If its value is reduced to one (or 100%), this means that the owners fully finance their enterprise. Its value equal to 1.25 means that in every 1.25 rubles invested in the assets of the enterprise, 25 kopecks. borrowed

3. The coefficient of maneuverability of own capital. Shows how much of the equity capital is used for financing, i.e. invested in working capital, and which is capitalized. The value may vary depending on the industry and the scope of the enterprise.

4. Coefficient of structure of long-term investments. Long-term sources of funds (capitalized sources) are taken into account. The logic of reasoning comes from the assumption that long-term loans and borrowings are used to finance fixed assets and other capital investments. The ratio shows what part of fixed assets and other non-current assets is financed by external investors.

5. Long-term borrowing ratio. Characterizes the structure of capital. The growth of this indicator in dynamics is a negative trend, the company is increasingly dependent on external investors.

6. The ratio of own and borrowed funds. The most general assessment of financial stability. Its value equal to 0.178 means that for every ruble of own funds invested in the assets of the enterprise, there are 17.8 kopecks of borrowed funds. The growth of this indicator in dynamics indicates an increase in the dependence of the enterprise on external investors and creditors, i.e. about some decrease in financial stability.