concept
a short-term solvency size of a company, how much and quality status should be seen in the flow assets and liquidity.
The quality of the flow assets refers to the ability of its "liquidity" to convert into cash, including whether it can be converted into cash and the time required for conversion. The quality of the flow assets should focus on the following three points:
first, the asset transition into cash is achieved by normal trading programs.
Second, the strength of fluidity mainly depends on the asset-converted time and asset expected selling price and the actual sale price difference.
Third, the liquidity period of the flow assets is within 1 year or more than 1 year of a normal business cycle.
Flow liabilities have "quality" issues. Generally speaking, all debts of enterprises must be repayed, but not all debts require immediate repayment, the debt repayment is considered to be the quality of liabilities.
The number and quality of enterprise mobile assets exceed the extent of the liquidity liabilities are the creditability of the enterprise.
Short-term solvency is the issue of any interests of the enterprise should pay attention to.
1. For corporate managers, the strength of short-term solvency means that companies have the capacity of financial risks.
2, for investors, the strength of short-term solvency is meant to high and low investment opportunities.
3, for the creditors of the enterprise, the strength of the short-term solvency of enterprises means that the principal and interest can be recovered on time.
4, for business suppliers and consumers, the strength of short-term solvency of enterprises means the strength of the company's ability to perform contractual capabilities.
Influencing factors
Short-term solvency is affected by many factors, including industry characteristics, operating environment, production cycle, asset structure, mobile asset utilization efficiency. It is difficult to make an objective evaluation of the short - term solvency of enterprises in only a single indicator of enterprises. Therefore, when analyzing the short-term solvency, on the one hand, the change of the indicator should be combined, and the evaluation is dynamically evaluated; on the other hand, it is necessary to combine the average level of the same industry to perform lateral comparative analysis. At the same time, budgetary analysis should also be performed to identify the gap between actual and budget goals, explore the cause, and solve problems. Some factors that have not been reflected in the financial statements will also affect the short-term solvency of the enterprise, and even the influence is quite large. The factors that increase the credit faith have: Available bank loan indicators, prepare long-term assets and solvency reputation. The factors that reduce the compensation ability are: not recorded or liabilities, guarantee responsibility or liabilities. Users of financial statements, learn more about this situation, which is conducive to making correct judgment.
Measurement Indicators
Short-term Detailed Bondage Ability - Measurement Indicators:
Flow Ratio
The flow ratio is the company's liquidity assets and flow liabilities ratio. Its calculation formula is as follows:
Flow ratio = flow assets ÷ Flow liabilities
flow ratio is an important financial indicator for measuring the short-term solvency of enterprises, the higher the ratio, indicating that companies are repaid The stronger the ability to short-term liabilities, the greater the guarantee that the flow liability is repayed. However, excessive flow ratios are not good. Because the higher the flow ratio, there may be excessive funds that have been strouped on the liquid assets, and it may not be effectively utilized, which may affect the ability of the company. Experience has shown that the flow ratio is relatively suitable at 2: 1. However, analysis of flow ratios should be combined with different industries and factors such as enterprise mobile assets. Some industries have high flow ratios, some low, should not use unified standards to evaluate reasonable or not. Only the average flow ratio of the same industry is compared to the flow rate of the company, in order to know that this ratio is high or low.
The speed ratio
The speed ratio is the ratio of enterprise quick assets and flow liabilities. When the flow ratio is evaluated for short-term solvency of enterprises, there is a certain limitation, and if the flow ratio is high, the liquidity of the flow assets is poor, and the short-term solvency of the company is still not strong. In the current asset, inventory is sold, it can be changed to cash. If the inventory is low, it is a problem. In general, the flow assets are deducted after the inventory is called a quick asset. The calculation formula of the quick rate is:
quick rate = quick assets ÷ flow liabilities = (flow assets - stock) ÷ Flow liabilities
generally believe that normal speed ratio is 1, the speed ratio below 1 is considered to be short-term solvency. But this is only a general view because there is a big difference in different speed ratios in the industry, and there is no unified standard speed ratio. For example, there is almost no receivable of a store in a large number of cash sales, which is much lower than that of a speed ratio. On the contrary, some companies with more receivables, the speed ratio may be greater than 1.
cash ratio
cash ratio is the ratio of corporate cash assets and liquidity liabilities. Cash assets include monetary funds owned by the enterprise and hold a securities securities (ie short investment in the balance sheet). It is the balance after the quick asset deducting the accounts receivable. Since there is a possibility of bad debts loss, some expiration accounts are not necessarily recovered on time, so the quick asset deducting accounts receivable The amount calculated after the calculated amount is the ability to reflect the company directly to the mobile liabilities. Calculation formula of cash ratio is:
cash ratio = cash asset ÷ flow liabilities = (monetary fund + price securities or short investment) ÷ Flow liabilities = (quick assets - accounts receivable) ÷ Flow Liabilities
Although the cash ratio can best reflect the capacity of the company directly to the flow of liquidity, the higher the ratio, the stronger the enterprise solvency. However, if companies stay in cash assets, the cash ratio is too high, which means that the company's liquidity liabilities have not been reasonably applied, often maintaining the capacity of cash assets, which will lead to an increase in the cost of enterprise opportunities. Usually the cash ratio is maintained at around 30%.
Analysis method
The analysis of short-term solvency is mainly comparison, historical comparison and budgetary comparison analysis of flow ratios.
Same industry Comparison
The same industry comparison includes the advanced level of peers, the average level of peer and competitors, the same principle is the same, but the comparison standard is different.
Surprise comparison analysis has two important premise: How to determine similar companies, and the other is how to determine the industry standard. The peer comparison procedures for short-term solvency are as follows:
1, first, calculate the core indicator of short-term solvency, compare the actual indicator value to the industry standard value, and in conclusion.
2, decomposing flow assets, the purpose is to examine the quality of the flow ratio
3, if the inventory turnover rate is low, the speed ratio can be further calculated, and the level of the enterprise's speed rate is investigated. Quality, compared with the industry standard value, and concluded.
4, if the speed ratio is lower than the same industry level, it means that the account receivable turnover is slow, and the cash ratio can be further calculated, and the industry standard value is compared.
5, in the end, through the above comparison, comprehensive evaluation of the short-term solvency of enterprises.
History Comparison
History of short-term solvency analysis The comparison criterion adopted is the actual indicator value of short-term solvency in the past. The comparison criteria can be the best level of business history, or the actual value under normal business conditions. In the analysis, it is often used to compare with the actual indicators of the previous year.
Adoption of historical comparison analysis: First, the comparative basis is reliable, history indicators are the level of enterprises, through comparison, can observe the change trend of corporate solvency; second, strong comparability Easy to find a problem. Its shortcomings: First, historical indicators can only represent the actual level of the past, and cannot represent reasonable levels. Therefore, historical comparison analysis is mainly through comparison, revealing differences, analyzes the cause, and invested trends; the second is to weaken historical comparison after operating environment changes.
Budget Comparison
Budget comparison analysis refers to a comparative analysis of the actual value and budget value of enterprise indicators. The comparison criterion in budget comparison analysis is a budget standard to reflect the company's solvency. Budget standards are the goals that enterprises develop according to their own business conditions and operating conditions.
Advantages and Disadvantages
Defect
Current short-term solvency analysis method:
1. The current analysis method is to establish Based on the company's existing assets, it is performed on the basis of clearing the sale. This analysis basis seems to be quite truth, but does not match the actual operation of the company. Enterprises should survive, it is impossible to compete all mobile assets to repay flow liabilities. Therefore, it should be based on the basis of the sustained business assumption, and the company's solvency is judged from the future profitability of the enterprise to determine the company's solvency. Otherwise, the conclusions of the evaluation can only be the company's clearing credit faith. Continued business companies repaying debt must rely on corporate stable cash inflows, and if the payment capacity analysis does not include the analysis of corporate cash flow, there is a loss.
2, liquidity analysis emphasizes that the mobile assets of enterprises should maintain a certain ratio , symmetrical in structure, so that the flow assets are sufficient to solve the flow liability. In fact, the relationship between the two is not so straightforward. And this is easy to give a mistake, the short-term debt creditor has some priority to the flow assets, only the part of the mobile assets exceeds the flow of liquidity can be used to pay for the creditors of long-term liabilities, and in fact, all creditors' rights It is equivalent.
3, the current analysis method is based on the principle of 权 发生 制 as the premise , debt and default sources contain Various responses, payable factors are a "theoretical" analysis. In fact, the repayment of debt is finally relying on the real payment capability of the company, and must have the corresponding cash flow for support, which is based on the principle of payment implementation.
4, fluidity analysis is a static analysis . The data used by the flow ratio is derived from the financial statements of the enterprise in the past, reflecting a static effect. This effect is often affected by a large number of raw materials such as a large number of companies, or those who have a financial statement. The analysis of the compensation ability is focused on the future. It is an expected expectation that the business situation and financial situation in the debt repayment period and its impact of the compensation capacity are analyzed. This is a more scientific And reasonable.
5, the source channel Source Channel SLY . Liquidity analysis will limit the source of compensation funds in the form of mobile assets in the form of enterprises. In fact, there are a variety of channels in the fact that they can be in business operations, or new short-term financing funds. It can be derived from the achievement of the flow assets, or can be solved by the performance of long-term assets; both existing asset resources in the table can also be benefited from various potential factors that can enhance corporate solvency capacity in the table. Wait. If only the source of liquid assets is used as a source of default, it is obviously not to correctly measure the short-term solvency of the enterprise.
Improvement
Accurate calibration calibration computing calibration:
1, accurately calibration calorie calculation calorie
speed An asset should be indeed confirming the assets that can be changed at any time and should not be used as a mobile asset to deduct certain items. Its constitution should be: quick asset = money fund + short-term securities + eliminate receipt of relevant accessories + accounting less than 1 year and eliminate the net amount of receivable accounts for related companies + net capacity Inventory net value.
2 should compare the history cost of inventory with the flow ratio calculated by reset cost or current cost, if the reset cost or current cost is calculated The flow ratio is larger than the original value, that is, the short-term solvency of the company has been enhanced, and it will weaken.
3, when calculating the current (speed) motion ratio, the corresponding receivable should be converted by the account by one to analyze its power generation capability
for more than half a year. 20% a 40% discount; 50% of the accounts payable for more than 1 year, 80% of the discount; this is only a symbolic reference bill for more than 2 years, it is no longer Flow assets.
4, taking into account the particularity of the pre-receipt account, the pre-receipt account should be part of the inventory of the molecule without a part of the denominator when calculating the flow ratio, and should not be part of the denominator; The pre-receipts should also be deducted from the flow liability.
5, the estimated item as a short-term solvency analysis indicator is supplemented
Due to the shortcomings of the flow ratio and the recessive ratio, accounting information users are repaying When the debt capacity is analyzed, it should also be analyzed in combination with the relevant field factors, and such evaluation results should be more accurate. If the company has a bank loan indicator that can be used in time and the long-term asset that can be achieved, it can increase the company's mobile assets, so that the short-term solvency capacity of the company is improved; and there is a large amount in the account notes or If there is a liability, dividend issuance and guarantee, it can lead to a reduction in enterprises in the future, so that the short-term solvency capacity of the company is reduced.
6, for the inherent lack of cash flow liability ratios, and should also be more comprehensive when using this indicator to analyze the cash flow structure ratio.