The solvency of an enterprise means the possibility of timely repayment of existing obligations and debts for a certain period of time. There is a special procedure for calculating this indicator.
Instructions
Step 1
Determine the basic solvency ratios of the enterprise. The first of them is the current liquidity ratio, which assesses the company's ability to repay debts and calculates the amount of working capital in accordance with existing short-term liabilities. “2” is taken as the standard value of such a coefficient. Divide the number of current assets by the amount of the company's liabilities. If the resulting value is less than 2, the company currently has the risk of untimely repayment of current liabilities.
Step 2
Find out the ratio of working capital security by dividing the amount of the company's own working capital by the amount of the company's current assets. So you will find out whether the company forms a sufficient share of current assets. If the obtained value does not exceed 0, 1, the company's solvency is insufficient due to the lack of appropriate working capital.
Step 3
Calculate the coefficient of recovery of solvency, if the calculations performed earlier showed that the company has financial problems. To do this, you need to calculate the ratio of the liquidity ratio of the enterprise to its standard value according to the formula: Кв = (Ктл к - Ктл н + 6 / Т (Ктл к)) / 2. As the item "Ктл к" indicate the current liquidity ratio of the enterprise at the end of the reporting period; replace Ktl n with the calculated value of the current liquidity ratio at the beginning of the period. “T” means the reporting period (the sum of the months included in it), and the coefficient “6” denotes the standard period of restoration of solvency. In case of exceeding the coefficient of restoring the solvency value of "1", the enterprise has a real chance of restoring its solvency within the next six months.
