Theoretical and practical aspects of liquidity indicators’ analysis
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 6, Issue
Abstract
Introduction. The functioning of enterprises in market conditions requires constant control over the financial state, which enables to maintain a predetermined level of economic security. In order to make effective management decisions, it is necessary to possess information about the indicators of the financial condition of the enterprise, factors of its possible deterioration. Getting the necessary information requires an analysis of the state of the enterprise according to certain methods. Purpose. The purpose of the work is to study different approaches to the definition of liquidity indicators and to clarify the algorithms for calculating liquidity indicators by the existing forms of financial reporting. Results. In the analysis of literary sources, it is revealed that the most commonly used ratios of liquidity are: current ratio, quick (acid-test) ratio, absolute ratio. The most used absolute indicator is its net working capital. However, scientists call these indicators in different ways, which somewhat complicates the work of analyst-practice. Some authors rightly point out that we must pay attention not to the name of the indicator, but to its qualitative composition. Almost all scientists equally characterize the economic content of the indicators of liquidity, but provide different methods of calculating them. The algorithms proposed for the calculation of liquidity indicators in this article reflect the economic content of these indicators and can be calculated from the data of the current form of balance without the use of additional information that is useful for external users of financial information. Conclusion. Liquidity analysis is a compulsory part of the economic analysis of an enterprise in a market economy. However, despite the fact that several years have passed since the changes in the financial statements, the only methodological approach to calculating the indicators for assessing the financial situation by the existing reporting forms has not yet been developed. In further research it is worth paying attention to the definition of normative ranges of these indicators, taking into account the conditions of functioning of domestic enterprises.
Authors and Affiliations
Lina Olehivna Ruban, Tetiana Viktorivna Khvostova
Keywords
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