Estimation of a financial condition of the enterprise: factor of financial independence

A condition for the development and survival of any companyis its financial independence and stability. If the company is stable, then it is able to withstand unexpected changes in market conditions. A financially independent enterprise is able to settle on time in its obligations with partners, the state, personnel, off-budget funds.

The financial independence of the company guarantees its solvency in normal economic conditions and with random changes in the market.

The main factors that determinefinancial stability and the independence of the organization, the financial structure of capital and the policy of financing certain individual components of assets (stocks and non-current assets). The financial structure of capital depends on the ratio of debt and equity, as well as its sources (long-term and short-term). Therefore, in order to assess the financial stability of the firm, it will be necessary to analyze not only the structure of financial resources, determine the coefficient of financial independence, but also the direction of investment of assets.

Estimation of the level of resistance is carried out with the help ofratio of equity and borrowing, solvency (autonomy), maneuverability ratio of funds (own). Also use the coefficient of financial independence, an indicator of the effectiveness of the use of own funds and the amount of use of resources of all property of the company.

Ratio of attracted and ownmeans to characterize the structure of the company's resources. The indicator is a quotient of dividing the entire amount of borrowed funds by the amount of equity capital. The permissible maximum value of this indicator is equal to one, which implies an equal ratio of own and attracted assets.

Coefficient of financial independence: formula

This indicator is the most important in assessingposition of the enterprise. It is calculated by the ratio of its own resources to the entire amount of resources (financial). The coefficient of financial independence shows to what extent the company is independent of external loans. In addition, the indicator characterizes the organization's ability to provide its own external obligations through its own funds. With a larger value of the coefficient, we can say about the best state of the company, its lower dependence and greater stability. Sometimes the opposite coefficient of financial independence is applied.

The analysis also calculates the coefficientautonomy (the concentration of its capital), determining the proportion of funds that the owner has invested in the total value of their property. It is calculated by the formula showing the ratio of equity to the base balance currency.

The normal value of the coefficient islevel of 0.5. In this situation, one can say that the firm is provided with its own resources and with a minimum of borrowed assets. Thus, the company can pay off its obligations by selling the property generated from its own sources.

When evaluating this coefficient, account should be taken of the organization's industry affiliation, the availability of borrowed long-term assets and other factors.

The degree of mobility of the application of equity is determined using the maneuverability coefficient. It is calculated by the ratio of current assets to own capital.

Despite the fact that the increase in financialindependence is a positive trend, there is nothing wrong with attracting outside capital, especially if these assets will not prevail and will be inexpensive.