The balance sheet asset is represented by current and non-current assets. Current assets - funds provided for short-term use. These assets are called current assets, because are in constant circulation, while changing their shape. The main indicator characterizing the working capital is the coefficient of the provision of current activities with its own working capital. It shows what part of current assets is financed from the organization's own funds.
It is necessary
balance sheet of the analyzed enterprise (form No. 1)
Instructions
Step 1
Calculate the availability of own working capital (SOS) by dividing the amount of equity (section 3 of the balance sheet "Capital and reserves") and the value of non-current assets (section 1 of the balance sheet):
SOS = SK / VA.
Step 2
Calculate the coefficient of provision of current activities with own circulating assets (Cob.sos.) According to the formula:
Cob.sos = SOS / Ob. C.
The standard value of the SOS coefficient should be at least 0, 1. An increase in this indicator in comparison with the previous period indicates the further development of the enterprise.
Step 3
Calculate the coefficient of provision of inventories with own working capital (Kob.mz) according to the formula:
Cob.mz = SOS / MZ.
This coefficient shows the extent to which inventories are covered by their own sources and its recommended value is at least 0.5.
Step 4
Calculate the equity capital flexibility ratio (Km.sk) using the formula:
Km.sk = SOS / SK.
This ratio shows how much of equity is used for current activities, i.e. invested in working capital. The high value of this indicator positively characterizes the financial condition of the enterprise. Recommended criteria are 0, 5-0, 6. The coefficient of maneuverability can also have a negative value if the entire equity capital is invested in fixed assets.
Step 5
Calculate the coefficient of maneuverability of your own working capital (Km.sos). This ratio characterizes that part of own circulating assets, which is in the form of funds with absolute liquidity.
Km.sos. = DS / SOS.
The growth of this indicator is seen as a positive trend. The value of the indicator is set by the organization independently and depends on how high his daily need for free cash is.
