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The ratio of borrowed and own funds shows. Analysis of the ratio of own and borrowed capital of the enterprise

2. Ratio of own and borrowed funds. The normal value is no more than 1.

K c / s \u003d Total amount of borrowed funds / Total amount of own sources

K s / s is calculated as:

(Total for section IV + Total for section V - Provisions for future expenses - Deferred income) / (Total for section III Capital and reserves + Deferred income + Provisions for future expenses).

To s/s n.g. = (16+3113-89)/(5603+89)= 0.53

To s / s q.g. = (16+3848-72)/(5186+72)= 0.72

∆ K z / s = K z / s k.g - K z / s n.g \u003d 0.72-0.53 \u003d 0.19

The coefficient for the reporting period increased by 0.19, this is due to both an increase in borrowed funds and a decrease in own funds, but by the end of the year the coefficient still corresponds to the normal value.

3. Coefficient of maneuverability. The optimal value is more than 0.5.

K m \u003d Own working capital of the enterprise / Equity capital

K m n.g. = SOS n.g. /SC n.g. = 1114 / 5603 = 0.20

K m q.g. = SOS k.g. /SK year = -463 / 5186 = - 0.09

∆ K m = K m k.g. - K m n.g. = -0.09 - 0.20 = -0.11

The value of the coefficient at the beginning of the year does not reach the normal value, and at the end of the reporting period it is negative, which indicates the inability of the enterprise to maintain the level of own working capital.

4. The coefficient of mobility of all enterprise assets.

To m.s. = cost working capital/ The value of the entire property

To m.s. n.g. = OA n.g. /WB n.g. = 4243/8732 = 0.49

To m.s. c.g. = OA k.g. /WB K.Y. \u003d 3428 / 9050 \u003d 0.38

∆K m.s. = K m.s. c.g. - To m.s. n.g. = 0.38-0.49 = -0.11

The mobility coefficient at the beginning of the year corresponds to the optimal value (0.5), by the end of the year it decreases by 0.11.

5. The coefficient of mobility of working capital of the enterprise.

To m.o.s. = value Money and short-term financial investments / Cost of working capital

To m.o.s. \u003d DS + KFV / OA

To m.o.s. n.g. \u003d (DS n.g. + KFV n.g.) / OA n.g. = (767+0)/4243= 0.18

To m.o.s. c.g. \u003d (DS k.g. + KFV k.g.) / OA k.g. = (555+0)/3428= 0.16

∆K m.s. = K m.s.s. c.g. – To m.o.s. n.g. = 0.16-0.18 = -0.02

The decrease in the coefficients of mobility of all property and current assets confirms the trend of slowing down the turnover of the assets of the organization.

6. The coefficient of provision of reserves and costs with own sources of funds for their formation. The normal value is more than 0.6÷0.8.

To z.z = The sum of own and long-term borrowed funds / Cost of inventories and costs

W.W. N.G. = 1114 / 1165 = 0.96

K z.z k.g. = -463 / 1269 = -0.36

∆K z.z = K z.z k.g. - To z.z n.g. = -0.36-0.96 = -1.32

At the beginning of the reporting period, the coefficient exceeds the normal value. The decrease in this indicator at the end reporting period to a negative value indicates that the company cannot cover inventories with its own funds and needs to attract borrowed funds.

7. Coefficient of industrial property. The normal value is more than 0.5.

K i.p.p = Amount of fixed assets, capital investments, work in progress, stocks, equipment / Cost of all property of the enterprise

K i.p.p n.g. = 4489+1113/8732 = 0.64

K i.p.p k.g. = 5622+1269/9050 = 0.76

∆K i.p.p = K i.p.p k.g. - K i.p.p n.g. = 0.76-0.64 = 0.12

This coefficient essentially determines production potential enterprise and for JSC "Tambovpassazhiroavtoservis" both at the beginning and at the end of the year corresponds to the standard.

8. Coefficient of working capital.

To m.o.s = Cost of inventory and costs / Total balance sheet

To m.o.s n.g. = 1165/8732=0.13

To m.o.s k.g. = 1269/9050=0.14

∆ K m.o.s = K m.o.s k.g. - To m.o.s n.g. = 0.14-0.13=0.01

Inventory is 13% and 14% respectively at the beginning and end of the analyzed period. This value is considered valid for a service business.

9. The coefficient of long-term attraction of borrowed funds.

K d.p.z = Sum of long-term loans and borrowed funds / Sum of long-term loans and equity

To d.p.z n.g. = DP n.g. /(DP n.g. + SC n.g.)=16/(16+5603)=0.0028

To d.p.z k.g. = DP k.g. /(DP k.g. + SC k.g.)=16/(16+5186)=0.0030

∆ K d.p.z = K d.p.z k.g. - To d.p.z n.g. \u003d 0.0030-0.0028 \u003d 0.0002

The long-term borrowing ratio of Tambovpassazhiroavtoservis OJSC indicates that the share of long-term liabilities (deferred tax liabilities) attracted to finance the company's activities along with its own funds is 0.28% at the beginning of the period and 0.30% at the end of the period.

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The financial condition of enterprises, its stability largely depend on the optimality of the structure of capital sources (the ratio of own and borrowed funds) and on the optimal structure of the assets of the enterprise and, first of all, on the ratio of fixed and working capital, as well as on the balance of the assets and liabilities of the enterprise on a functional basis.

Therefore, it is first necessary to analyze the structure of the sources of the enterprise and assess the degree of financial stability and financial risk. For this purpose, the following indicators are calculated:

- coefficient of financial autonomy(or independence) - specific gravity equity in its total balance sheet currency. The recommended value is above 0.5.

Towards autonomy =

At the beginning of the reporting period = = 0.72 at the beginning of the year

At the end of the reporting period = = 0.65 at the end of the year

Since the minimum value of this coefficient is taken at the level of 0.6, we can conclude that the total financial independence Spektr LLC (having sold part of the property formed at the expense of its own funds, the company will be able to pay off its debt obligations), but the emerging downward trend indicates a certain increase in the risk of financial difficulties.

- coefficient of financial dependence— the share of borrowed capital in the total balance sheet currency.

To financial independence =

At the beginning of the reporting period = = 0.28

At the end of the reporting period = = 0.35

- current debt ratio— the ratio of short-term financial liabilities to the total balance sheet currency;

K tech. debt =

At the beginning of the reporting period = = 0.18

At the end of the reporting period = = 0.26

Because by the end of the year this indicator slightly increased (by 0.08), then we can say that the company in this period of time is financially stable.

- coefficient of long-term financial independence(or coefficient of financial stability) - the ratio of own and long-term borrowed capital to the total balance sheet currency.

At the beginning of the reporting period = = 0.82

At the end of the reporting period = = 0.74

- equity coverage ratio(solvency ratio) - the ratio of equity capital to borrowed capital.

At the beginning of the reporting period = = 2.5

At the end of the reporting period = = 1.9

The lower normal value of this coefficient is equal to 1. We see that the share of sources of own funds has decreased, while the share of borrowed funds, in particular accounts payable, has increased. The dynamics of this indicator is negative (the coefficient decreased by the end of the analyzed period by 0.6), which characterizes the lack of funding during the year: accounts payable to suppliers increased (by 5,400 thousand rubles).

- financial leverage ratio or financial risk ratio- the ratio of borrowed capital to equity.

At the beginning of the reporting period = 0.39

At the end of the reporting period = 0.53

The higher the level of the first, fourth and fifth indicators and the lower the second, third and sixth, the more stable financial condition enterprises. In our example, the share of equity decreased by 7%, while the leverage of financial leverage increased by 14%. This indicates that the financial dependence of the enterprise on external investors has increased significantly.

Assessment of the changes that have occurred in the capital structure may be different from the standpoint of investors and the enterprise. For banks and other creditors, the situation is more reliable if the share of equity of clients is higher. This eliminates financial risk.

Enterprises, as a rule, are interested in raising borrowed funds for two reasons:

1) interest on servicing borrowed capital is considered as an expense and is not included in taxable income;

Interest expenses are usually lower than the profit received from the use of borrowed funds in the turnover of the enterprise, as a result of which the return on equity increases.

In a market economy, a large and ever-increasing share of equity does not at all mean an improvement in the position of an enterprise, the possibility of a quick response to a change in the business climate. On the contrary, the use of borrowed funds indicates the flexibility of the enterprise, its ability to find loans and repay them, i.e. about his credibility in the business world.

The most general indicator among those discussed above is the financial leverage ratio. All other indicators in one way or another determine its value.

The change in the value of the financial leverage ratio (shoulder of financial leverage) at the enterprise level depends on the share of borrowed capital in total amount assets, the share of fixed capital in the total amount of assets, the ratio of working and fixed capital, the share of own working capital in the formation of current assets, as well as the share of own working capital in the total amount of own capital (equity capital maneuverability coefficient):

Initial data for calculating the influence of factors:

We will calculate the influence of these factors using the chain substitution method:

K f.l.0\u003d 0.29: 0.63: 0.58: 0.23 x 0.12 \u003d 0.41,

K f.l conv1 = 0.35: 0.63: 0.58: 0.23 x 0.12 = 0.50,

To f.l.condition2 = 0.35: 0.56: 0.58: 0.23 x 0.12 = 0.56,

To f.l.condition3\u003d 0.35: 0.56: 0.78: 0.23 x 0.12 \u003d 0.42,

To f.l.condition4 = 0.35: 0.56: 0.78: 0.21 x 0.12 = 0.46,

To f.l.1\u003d 0.35: 0.56: 0.78: 0.21 x 0.14 \u003d 0.53.

The overall increase in the financial risk ratio for the reporting period is 0.12 (0.53 - 0.41), including due to changes in:

share of borrowed capital in the total balance sheet currency:

0,50 - 0,41 = +0,09;

shares of fixed capital in total assets:

0,56 - 0,50 = +0,06;

ratio of current assets to fixed capital:

0,42 - 0,56 = - 0,14;

share of own working capital in the formation of current assets:

0,46 - 0,42 = +0,04;

coefficient of equity capital maneuverability:

0,53 - 0,46 = +0,07.

As can be seen from the above data, the main role in increasing the financial leverage ratio was played by such factors as the change in the share of borrowed capital in the total balance sheet currency (by 9%), the share of fixed capital in the total assets (by 6%), the share own capital in the formation of current assets (by 4%) and the coefficient of maneuverability of own capital (by 7%).

Financial leverage ratio not only is an indicator of financial stability, but also has a great influence on the increase or decrease in the amount of profit and equity capital of the enterprise.

Financial stability reflects the financial condition of the organization, in which it is able, through the rational management of material, labor and financial resources, to create such an excess of income over expenses, at which a stable cash inflow is achieved, allowing the enterprise to ensure its current and long-term solvency, as well as to meet investment expectations. owners.

The most important issue in the analysis of financial stability is assessment of the rationality of the ratio of equity and debt capital.

Financing a business at the expense of equity capital can be carried out, firstly, by reinvesting profits and, secondly, by increasing the capital of the enterprise (issuing new securities). The conditions limiting the use of these sources to finance the activities of the enterprise are the policy of distributing net profit, which determines the amount of reinvestment, as well as the possibility of additional issue of shares.

Financing from borrowed sources implies compliance with a number of conditions that ensure a certain financial reliability of the enterprise. In particular, when deciding on the advisability of attracting borrowed funds, it is necessary to assess the structure of liabilities that has developed at the enterprise. A high share of debt in it can make it unreasonable (dangerous) to attract new borrowed funds, since the risk of insolvency in such conditions is excessively high.

By attracting borrowed funds, the company receives a number of advantages, which, under certain circumstances, can turn into reverse side and lead to a deterioration in the financial condition of the enterprise, bring it closer to bankruptcy.

Financing of assets from borrowed sources can be attractive insofar as the lender does not make direct claims regarding the future income of the enterprise. Regardless of the results, the creditor has the right to claim, as a rule, the agreed amount of principal and interest on it. For borrowed funds received in the form of a trade credit of suppliers, the latter component can act both in an explicit and implicit form.

The presence of borrowed funds does not change the structure of equity capital from the point of view that debt obligations do not lead to a "dilution" of the share of owners (unless there is a case of refinancing the debt and repaying it with the company's shares).

In most cases, the amount of obligations and their maturity dates are known in advance (exceptions are, in particular, cases of guarantee obligations), which facilitates financial planning of cash flows.

At the same time, the presence of expenses associated with the payment for the use of borrowed funds shifts the break-even point of the enterprise. In other words, in order to achieve break-even operation, the company has to generate more sales. Thus, a company with a large share of borrowed capital has small opportunity to maneuver in case of unforeseen circumstances, such as a drop in demand for products, a significant change interest rates, rising costs, seasonal fluctuations.

In conditions of an unstable financial situation, this can become one of the reasons for the loss of solvency: the company is unable to provide a larger inflow of funds necessary to cover the increased costs.

The presence of specific obligations may be accompanied by certain conditions that limit the freedom of the enterprise in the disposal and management of assets. Most a typical example such limiting conditions are collateral obligations. A high proportion of existing debt may result in the lender's refusal to provide new credit.

All these points should be taken into account in the analysis of the financial stability of the organization.

The main indicators characterizing the structure of capital include the independence ratio, the financial stability ratio, the coefficient of dependence on long-term borrowed capital, the financing ratio and some others. The main purpose of these ratios is to characterize the level of financial risks of the enterprise.

Here are the formulas for calculating the listed coefficients:

Independence ratio = Equity / Balance sheet * 100%

This coefficient is important for both investors and creditors of the enterprise, since it characterizes the share of funds invested by the owners in the total value of the enterprise's property. It indicates how much an enterprise can reduce the valuation of its assets (reduce the value of assets) without prejudice to the interests of creditors. Theoretically, it is believed that if this ratio is greater than or equal to 50%, then the risk of creditors is minimal: by selling half of the property formed at the expense of its own funds, the enterprise will be able to pay off its debt obligations. It should be emphasized that this provision cannot be used as general rule. It needs to be clarified taking into account the specifics of the enterprise and, above all, its industry affiliation.

Financial stability ratio = (Equity + Long-term liabilities) / Balance sheet * 100%

The value of the coefficient shows the proportion of those sources of financing that the enterprise can use in its activities for a long time.

Dependence on long-term debt capital = Long-term liabilities / (Equity + Long-term liabilities) * 100%

When analyzing long-term capital, it may be useful to assess the extent to which long-term borrowed capital is used in its composition. For this purpose, the coefficient of dependence on long-term sources of financing is calculated. This ratio excludes current liabilities from consideration and focuses on stable sources of capital and their ratio. The main purpose of the indicator is to characterize the extent to which the company depends on long-term loans and borrowings.

In some cases, this indicator can be calculated as a reciprocal value, i.e. as the ratio of debt and equity capital. The indicator calculated in this form is called the coefficient of financial leverage.

Funding Ratio = Equity / Debt * 100%

The coefficient shows which part of the enterprise's activity is financed by its own funds, and which part is financed by borrowed funds. A situation in which the value of the financing ratio is less than 1 (most of the enterprise's property is formed at the expense of borrowed funds) may indicate the danger of insolvency and often makes it difficult to obtain a loan.

At once it is necessary to warn against literal understanding of recommended values for the considered indicators. In some cases, the share of equity in their total volume may be less than half, and, nevertheless, such enterprises will maintain a fairly high financial stability. This primarily applies to enterprises whose activities are characterized by a high turnover of assets, stable demand for products sold, well-established supply and marketing channels, a low level of fixed costs(for example, trade and intermediary organizations).

For capital-intensive enterprises with a long period of turnover of funds, which have a significant share of designated assets (for example, enterprises in the machine-building complex), the share of borrowed funds of 40-50% can be dangerous for financial stability.

The coefficients characterizing the structure of capital are usually considered as characteristics of the enterprise's risk. The larger the share of debt, the higher the need for funds needed to service it. In the event of a possible deterioration in the financial situation, such an enterprise has a higher risk of insolvency.

Based on this, the above coefficients can be considered as tools for searching for "problem points" in the enterprise. The smaller the share of debt, the less the need for an in-depth risk analysis of the capital structure. The high proportion of debt makes it necessary to consider the main issues related to the analysis: the structure of equity capital, the composition and structure of borrowed capital (taking into account the fact that balance sheet data may represent only part of the company's liabilities); the company's ability to generate the cash needed to cover existing liabilities; profitability of activities and other significant factors for the analysis.

Particular attention in assessing the structure of the sources of the enterprise's property should be given to the method of their placement in the asset. This shows the inseparable connection between the analysis of the passive and active parts of the balance.

Example 1. The structure of the balance sheet of enterprise A is characterized by the following data (%):

Enterprise A

The assessment of the structure of sources in our example at first glance indicates a sufficient stable position enterprise A: a larger volume of its activities (55%) is financed from equity, a smaller one - from borrowed capital (45%). However, the results of the analysis of the placement of funds in the asset raise serious concerns about its financial stability. More than half (60%) of the property is characterized by a long period of use, and hence a long payback period. The share of current assets accounts for only 40%. As you can see, in such an enterprise, the amount of current liabilities exceeds the amount of current assets. This allows us to conclude that part of the long-term assets was formed at the expense of the organization's short-term liabilities (and, therefore, it can be expected that their maturity will come before these investments pay off). Thus, entity A has chosen a dangerous, albeit very common, way of allocating funds, which can lead to insolvency problems.

So, the general rule for ensuring financial stability: long-term assets must be formed from long-term sources, own and borrowed. If the enterprise does not have borrowed funds attracted on a long-term basis, fixed assets and other outside current assets must be funded from equity.

Example 2. Enterprise B has the following structure of economic assets and sources of their formation (%):

Company B

Assets	share	Passive	share
Fixed assets	30	Equity	65
Unfinished production	30	Short-term liabilities	35
Future expenses	5
Finished products	14
Debtors	20
Cash	1
BALANCE	100	BALANCE	100

As you can see, the share of equity prevails in the liabilities of enterprise B. At the same time, the amount of borrowed funds attracted on a short-term basis is 2 times less than the amount of current assets (35% and 70% (30 + 5 + 14 + 20 + 1) of the balance sheet, respectively). However, like enterprise A, more than 60% of the assets are hard-to-sell (provided that finished products in the warehouse can be fully realized, if necessary, and all buyers-debtors will pay off their obligations). Consequently, with the current structure of the placement of funds in an asset, even such a significant excess of equity over borrowed capital can be dangerous. Perhaps, in order to ensure the financial sustainability of such an enterprise, the share of borrowed funds should be reduced.

Thus, enterprises in which the volume of hard-to-sell assets in the composition of working capital is significant should have a large share of equity.

Another factor affecting the ratio of own and borrowed funds is the cost structure of the enterprise. Enterprises with a share fixed costs in the total cost is significant, must have a larger amount of equity capital.

When analyzing financial stability, it is necessary to take into account the rate of turnover of funds. An enterprise with a higher turnover rate of funds can have a large share of borrowed sources in total liabilities without jeopardizing its own solvency and without increasing the risk for creditors (an enterprise with a high capital turnover has an easier time securing cash flow and, therefore, paying off its obligations). Therefore, such enterprises are more attractive to lenders and lenders.

In addition, the rationality of liability management and, consequently, financial stability, is directly affected by the ratio of the cost of raising borrowed funds (Cd) and the profitability of investing funds in the organization's assets (ROI). The relationship of the considered indicators from the position of their influence on the return on equity is expressed in a well-known ratio used to determine the influence of the effect of financial leverage:

ROE = ROI + D/E (ROI - Cd)

where ROE - return on equity; E - equity, D - borrowed capital, ROI - return on investment, Сd - cost of borrowing capital.

The meaning of this ratio is, in particular, that while the return on investment in the enterprise is higher than the price of borrowed funds, the return on equity will grow the faster, the higher the ratio of borrowed and own funds. However, as the share of borrowed funds increases, the profit remaining at the disposal of the enterprise begins to decline (an increasing part of the profit is directed to the payment of interest). As a result, the return on investment falls, becoming less than the cost of raising borrowed funds. This, in turn, leads to a fall in the return on equity.

Thus, by managing the ratio of equity and debt capital, the company can have an impact on the most important financial ratio - return on equity.

Variants of methods for the ratio of assets and liabilities

Option number 1

The presented scheme of the ratio of assets and liabilities allows us to talk about a safe ratio of equity and borrowed capital. Two basic conditions are met: equity exceeds non-current assets; current assets are higher than short-term liabilities.

Option 2

The presented scheme of the ratio of assets and liabilities, despite the relatively low share of equity, also does not cause concern, since the share of long-term assets of this organization is not high and equity fully covers their value.

Option number 3

The ratio of assets and liabilities also demonstrates the excess of long-term sources over long-term assets.

Option number 4

This version of the balance sheet structure at first glance indicates the insufficiency of equity capital. At the same time, the presence of long-term liabilities makes it possible to fully form long-term assets at the expense of long-term sources of funds.

Option number 5

This variant of the structure may raise serious concerns about the financial stability of the organization. Indeed, it can be seen that the organization in question does not have enough long-term sources for the formation of non-current assets. As a result, it is forced to use short-term borrowed funds to build long-term assets. Thus, it can be seen that short-term liabilities have become the main source of formation of both current assets and, in part, non-current assets, which is associated with increased financial risks of such an organization.

At the same time, it should be emphasized that the final conclusions regarding the rationality of the structure of the liabilities of the analyzed organization can be made on the basis of complex analysis factors that take into account industry specifics, the rate of turnover of funds, profitability and a number of others.

The ratio of borrowed and own funds is one of the indicators that determine the composition of the sources of activity and assess the financial stability of the company. Its calculation is extremely important in carrying out express analysis, since it allows the user to quickly obtain information about the situation in the company in financial terms, having calculated in proportion the volume attracted from outside and its sources. The value and calculation of this coefficient is the subject of this publication.

What does the debt-to-equity ratio mean?

The ratio of capital in the company is an indicator that determines the degree of risk, profitability and stability of the company. The need for its calculation arises in companies that do not have a sufficient base for carrying out activities and attract capital from outside. Loans allow you to meet production needs and increase profitability, but the amount of external capital is important. The financial stability of the company depends on the value of the indicator, since a significant excess of the volume of external capital over its own entails significant risks of losing business. At the same time, the risky strategy is also considered the most profitable.

The essence of the coefficient is to establish the number of units of attracted assets per unit of assets at the disposal of the company. The higher it is, the more loans the company has, and, therefore, the riskier the situation for it, since market instability can lead the company to bankruptcy. Those. the ratio of borrowed and own funds shows the degree of dependence of the company on the capital of creditors: its predominance reflects this dependence from the outside, while the presence of own funds as the dominant component in the structure of sources indicates the reliability and stability of the company.

Debt to equity ratio: formula

It is not difficult to calculate the coefficient, the coefficient of the ratio of equity and borrowed funds is determined by the ratio of the value of all liabilities of the company for borrowed funds to the value of the company's equity capital according to the formula:

K szs \u003d ZK / SK,

where SC is the capital attracted to the company, SC is the company's own sources.

In turn, the ZK is made up of the amount of liabilities on loans with different maturities, i.e. long-term and short-term.

The calculation is carried out on the basis of balance sheet data: the presence of long-term liabilities for loans is accumulated in line 1410, debt with short terms execution - in line 1510, the amount of own funds - in line 1300. Substituting the values of the liability lines into the formula, we get the formula:

K SZS = (p. 1410 + p. 1510) / p. 1300 .

Standard values

The optimal size of the coefficient is considered to be 0.5 - 0.7. A company with a similar indicator is financially stable and independent of creditors' funds.

Values below 0.5 indicate stable firm stability, but some stagnation in business development, leading to shortfalls in profits due to inefficient use of funds.

A coefficient in the range of 0.7 - 1 indicates an unstable state of the enterprise and the appearance of the first signs of its insolvency, and a calculated value greater than 1 indicates an excessively high concentration of borrowed funds and a potential risk of bankruptcy.

In a word, the higher the ratio, the more unstable the position of the firm, the higher the risk of bankruptcy. A value greater than 1 is generally only allowed in situations where the speed of circulation accounts receivable prevails over the turnover rate of goods and materials and monetary assets. The permissible standard is usually determined within the industry and for specific enterprises, taking into account their specifics, features and financial characteristics.

An example of calculating the ratio of own and borrowed funds

Let's compare information about the company's capital structure based on the data (in thousand rubles):

Balance line values				TO szs ((group 2 + group 3) / group 4)
on the date:				TO szs ((group 2 + group 3) / group 4)
1	2	3	4	5

Conclusions on the results of calculations:

In 2015, the company's condition is stable, the ratio of capital is optimal (for 1 ruble of own funds, 0.61 rubles of borrowed funds);

In 2016 - an increase in the concentration of attracted funds may provoke the risk of insolvency of the company in case of emergency;

In 2017 - financial position companies are stabilizing;

In 2018 - the company is financially stable, but requires competent strategy aimed at further development business.

Note that in order to draw up a complete picture of the company's activities, it is important not only the ratio of borrowed and equity funds, but also a number of other ratios calculated by analysts to determine the company's financial stability.

That is, the ratio of the value of own funds to the value of liabilities. If the coefficient takes a value less than 1, then this indicates that the enterprise has a large share of borrowed funds and the financial situation is unstable. In general, the ratio of own and borrowed funds characterizes the enterprise from the same side as the coefficient of autonomy.
To calculate the profitability of the main activity, it is necessary
Divide the sales profit by the sales revenue. This indicator shows how effective the main activity of the enterprise.
After the main coefficients are calculated, it is necessary to divide them into categories depending on the actual value (Table 2.6) and calculate the class rating of the borrower using the following formula:
Class = category of coefficient multiplied by indicator weight. Based on the score, the borrower belongs to one of the following classes:
1st class, if the amount is in the range from 1 to 1.05;
2nd class - from 1.05 to 2.42;
3rd grade - more than 2.42.
Table 2.6
Categories of indicators depending on
FROM THE ACTUAL VALUES OF PERFORMANCE INDICATORS Coefficient 1st category (class) 2nd category 3rd category K1 0.2 and above 0.15-0.2 Less than 0.1 5 K2 0.8 and above 0.5-0 .8 Less than 0.5 K3 2.0 and above 1.0-2.0 Less than 1.0 K4 Except for trading 1.0 and above 0.7-1.0 Less than 0.7 For trading 0.6 and above 0 ,4-0.6 Less than 0.4 К5 0.1 5 and more Less than 0.1 5 Unprofitable FIRST-CLASS BORROWERS ARE LOAND ON PREFERENTIAL TERMS, SECOND-CLASS BORROWERS (TO WHICH THE ANALYZED ENTERPRISE RELATES) - ON REGULAR TERMS. ISSUANCE OF LOANS TO ENTERPRISES OF THE 3rd CLASS IS ASSOCIATED WITH RISK.
BANKS IN DEVELOPED CAPITALIST COUNTRIES USE A COMPLEX SYSTEM OF A LARGE NUMBER OF INDICATORS TO ASSESS THE CREDIT OF CUSTOMERS. THIS SYSTEM IS DIFFERENTIATED DEPENDING ON THE NATURE OF THE BORROWER (FIRM, INDIVIDUAL, TYPE OF ACTIVITY), AND CAN ALSO BE BASED ON BOTH BALANCE AND TURNOVER INDICATORS OF CLIENTS' REPORTING. MONITORING THE FINANCIAL CONDITION OF LARGE,
ECONOMIC AND SOCIALLY SIGNIFICANT ENTERPRISES

The ratio of borrowed and own funds shows. Analysis of the ratio of own and borrowed capital of the enterprise

What does the debt-to-equity ratio mean?

Debt to equity ratio: formula

Standard values

An example of calculating the ratio of own and borrowed funds

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