Debt financing ratio. Debt capital concentration ratio

26.09.2019

A new image in an old way Everything was just quiet in her

The Problem of Heroism: Arguments from Literature

Every large enterprise seeks to optimize its capital structure. It is formed from own and borrowed sources. Moreover, their ratio should be maintained at the established level. Analytics allows you to determine the company's need for a particular source of funding for its activities.

One of the components of the organization's financial stability methodology is the debt capital concentration ratio. It is calculated according to the established formula and has a clearly defined meaning. How to calculate the presented indicator, as well as to interpret the result? There is a certain technique.

The essence of the coefficient

The debt capital concentration ratio shows the volume of paid financial sources in the balance sheet structure. Each enterprise must organize its activities using its own capital. However, raising debt capital opens up new prospects for the organization.

A company that competently uses paid sources of funds can purchase new high-tech equipment, introduce a new production line, expand sales markets, etc. For this, the level of borrowed funds must remain within certain limits. It is installed for each enterprise separately.

Attraction of long-term and short-term loans increases the company's risks. However, the higher they are, the greater the amount of net profit the organization can potentially receive. The state of the share of paid liabilities must be monitored by the analytical service of the enterprise.

The essence of borrowed funds

The value of the debt capital concentration ratio in calculating financial stability is extremely high. These funding sources have a number of characteristic features. Their involvement carries both benefits and additional costs.

A company that attracts funds from third-party investors opens up new prospects and opportunities for itself. Its financial potential is growing rapidly. At the same time, the cost of the presented sources remains quite acceptable. With the right use of additional funds, you can increase the company's profitability. In this case, the profit grows.

However, attracting investment sources from outside has a number of negative characteristics. Such capital increases risks, reduces financial stability indicators. It is quite difficult to arrange such a procedure. Costs largely depend on the level of development of a particular market. The organization's income will be reduced by the cost of using the investors' funds (interest on the loan).

Methods for determining the indicator

Balance sheet data will help to calculate the debt concentration ratio. The calculation formula is simple. It reflects the ratio between the indicator of foreign loans and the balance sheet currency. This is the actual debt burden that the organization faces. The calculation formula looks like this:

CC = Z / B, where: Z - the amount of loans (short-term and long-term), B - balance sheet currency.

Calculations are made based on the results of the operating period. Most often it is 1 year. However, for some companies it is more profitable to make calculations on a quarterly or semi-annually basis.

Paid sources of financing are presented in lines 1400 and 1500 of Form 1 of the financial statements. The total balance sheet amount is indicated in line 1700. This is a simple calculation, the result of which will help to draw conclusions about the harmony of the organization of the capital structure.

Standard

The above system can be used to calculate the debt capital concentration ratio. The normative value will allow you to analyze the result obtained. For the presented indicator, there is a certain range of values at which the balance sheet structure can be called effective.

The concentration ratio of external funding sources can range from 0.4 to 0.6. The optimal value depends on the type of activity of the company, characteristics within the industry. For example, enterprises with a pronounced seasonality of activity may have low levels of concentration of credit funds.

To conclude that the structure of financial sources is correct, it is necessary to study the presented indicator of competing firms. So it will be possible to calculate the intra-industry indicator. The value of the coefficient obtained in the course of the study is compared with it.

Financial benefit

In some cases, the amount of credit funds of the organization may be too large or, conversely, low. This speaks to the wrong organizational structure of the balance sheet. The above norm of the debt capital concentration ratio is applicable for most domestic companies. Foreign organizations may have a larger number of loans in the structure of liabilities.

If a company in the course of the study has determined that the concentration ratio is below the norm, it means that it has accumulated a large number of borrowed financial sources. This is a negative factor for further development. In this case, the risks of non-repayment of debt increase. The cost of the loan will increase. It is necessary to reduce the amount of borrowed funds in liabilities.

If the indicator, on the contrary, is higher than the norm, the company does not attract additional resources for its development. This translates into lost profits. Therefore, a certain amount of funds from third-party investors must be applied by the company.

Calculation example

To understand the essence of the presented methodology, it is necessary to consider an example of calculating the debt capital concentration ratio. The above balance formula is applied during the study.

For example, a company completed its operating period with a total balance sheet total of RUB 343 million. Its structure was determined by 56 million rubles. long-term liabilities and 103 million rubles. short-term debt. In the previous period, the balance sheet total amounted to RUB 321 million. Short-term liabilities were 98 million rubles, and long-term funding sources - 58 million rubles.

In the current period, the concentration coefficient was as follows:

KKt = (56 + 103) / 343 = 0.464.

In the previous period, the same indicator was at the level:

KKp = (98 + 58) / 321 = 0.486.

The result obtained is within the established norm. In the previous period, the company's activities were largely financed by third-party sources. The company has prospects for attracting credit funds. The presented indicator must be calculated in conjunction with other settlement systems.

Financial leverage

The leverage indicator allows analysts to correctly assess the dependence of the debt concentration ratio on the conditions of the business environment. The combination of these two calculation methods makes it possible to establish the level of efficiency of using the available capital, the possibilities for its further increase at the expense of credit sources.

Leverage shows the benefit that an organization receives when using borrowed funds. For this, the indicator of the return on equity of the organization is calculated. In the course of conducting such a study, the company's need for attracting external sources of financing is established, as well as the current profitability of total capital.

With the right use of loans, you can increase your bottom line. The funds received are invested in the development and expansion of the business. This allows you to increase your bottom line. This is precisely the meaning of the use of paid investors' funds.

Profitability

The debt capital concentration ratio must be considered in the general system of analytical calculation. Therefore, together with the presented methodology, other indicators are determined. Their combined analysis allows us to draw correct conclusions about the capital structure.

One of these indicators is the return on borrowed capital. For the calculation, the net profit for the current period is taken (line 2400 of form 2). It is divided into the amount of long-term and short-term loans. If the net profit is higher than the amount of paid sources, the company harmoniously uses the funds received from third-party investors in its activities.

The return on borrowed capital is studied in dynamics. This allows us to draw conclusions about further actions.

Structure management

The debt capital concentration ratio becomes the first indicator in the development of an organization's financial strategy. Based on the calculations performed, the company's management can decide on the further attraction of loans and credits.

In the course of planning, the need for additional sources is determined. Risks, future profits, as well as ways of production development are assessed. The cost of investors' capital is determined. Based on the research, the company decides on the possibility of additional attraction of borrowed capital.

Having considered what the debt capital concentration ratio is, the methodology for calculating it and the approach to interpreting the result, it is possible to correctly assess the structure of the balance sheet and make a decision on the further development of the organization.

1. Ratio of concentration of equity capital (coefficient of autonomy, independence) = Equity / Enterprise assets

This ratio characterizes the share of equity in the property of the enterprise, i.e. reflects the independence of the enterprise from attracted sources. The larger this indicator is, the more financially stable and independent from creditors the company is, but it is desirable that its value is not less than 0.5. For Ukraine, this coefficient should be at least 0.2. If the value of the coefficient is 1, then this means that the owners fully finance their enterprise.

This indicator is supplemented by concentration factordebt capital.

Debt capital concentration ratio = Debt capital / Enterprise assets

The sum of these two coefficients must be 1 (0.86 + 0.14 = 1).

Ratio of debt and equity capital is the most general assessment of the financial strength of the enterprise and characterizes the dependence of the enterprise on external loans.

Ratio = Equity / Equity

It shows how much borrowed funds the company used for 1 hryvnia invested in assets of its own funds.

The theoretical value of this indicator should be less than 1. An increase in its value indicates the loss of the financial stability of the enterprise.

2. Ratio of financial dependence = / Ratio of autonomy = Enterprise assets / Equity

If its value approaches 1, then this means that the owners fully finance their enterprise.

= Own current assets (funds) / Equity

The theoretical value of the coefficient of maneuverability is 0.4-0.6 and can vary depending on the capital structure and industry subordination of the enterprise.

The profitability of the enterprise is characterized by absolute and relative indicators. The absolute rate of return is the amount of profit or income. The relative indicator is the level of profitability.

1. Profitability of sold products (return on sale):

Sales profitability =Profit from sales /Net realization 100%

The profitability of the sale is also called the profit margin. It shows how much profit each hryvnia brings in sales volumes. As a rule, it is determined separately for each type of activity or for each group of products sold.

The level of profitability of enterprises associated with the production of products is determined by the formula:

Profitability = Profit from sales / Cost price 100%

3. General profitability of production (profitability of funds):

Profitability = Financial result from the usual activities / Average annual cost of fixed assets of a production nature 100%

5.6 Financial recovery and bankruptcy of enterprises

The term “rehabilitation” comes from the Latin “sanare” and is translated as “recovery” or “recovery.” The economic dictionary interprets this concept as a system of measures that is carried out to prevent bankruptcy of enterprises and improve the financial and economic situation of the debtor.

merger of an enterprise with a more powerful company;

issuing new shares or bonds to mobilize money capital;

increasing bank loans and government subsidies;

4) transformation of short-term debt into long-term debt, etc.

Some economists associate only measures to attract external financial assistance with reorganization, but this is not entirely justified, since the mobilization of internal financial reserves is an integral part of the recovery process of any enterprise.

The purpose of financial recovery is to cover the current damage and eliminate the causes of its occurrence, preserve the liquidity and solvency of the enterprise, reduce all types of debt, improve the structure of working capital, etc.

The decision to reorganize is taken, as a rule, in the following cases:

On the initiative of a business entity that is in crisis when there is a real threat of declaring it bankrupt.

On the initiative of a financial institution. According to the Law of Ukraine "On Banks and Banking Activities", the bank has the right with respect to the client declared insolvent, to apply a set of rehabilitation measures, in particular: to transfer the operational management of the enterprise to the administration formed with the participation of the bank; reorganize the debtor; change the order of payments; direct the proceeds from the sale of products, etc. to pay off accounts payable.

On the initiative of the Agency for the Prevention of Bankruptcy of Enterprises, when it comes to state-owned enterprises. After the debtor is entered in the register of insolvent enterprises, the Agency is authorized to manage his property and develop proposals for financial rehabilitation.

On the initiative of the National Bank of Ukraine, when it comes to the financial rehabilitation of a commercial bank.

Voluntary liquidation of a debtor enterprise is a procedure for the liquidation of an insolvent enterprise, which is carried out outside the courts on the basis of a decision of the owners or an agreement concluded between the owners of this enterprise and the creditors and under the control of the latter.

Forced liquidation of an enterprise - This is the procedure for the liquidation of an insolvent enterprise, which is carried out by a decision of the economic court (as a rule, in the process of conducting a bankruptcy case).

A strategy is a generalized model of the actions required to achieve set goals by coordinating and allocating company resources. The essence of the reorganization strategy is to select the best options for the development of the company and the optimal investment policy.

According to the chosen strategy, a complex of rehabilitation measures is being developed, which includes:

Refurbishment feasibility study;

Enterprise restructuring;

Re-profiling of production;

Closure of unprofitable production facilities;

Calculation of the amount of financial resources required to achieve the strategic objectives of the reorganization;

Specific methods and schedules for mobilizing financial capital;

Elimination of accounts receivable;

Sale of part of the debtor's property;

Terms of investment development and terms of their recoupment;

Evaluation of the effectiveness of rehabilitation measures.

If, within 6 months from the date of the resolution on reorganization, the debtor's reorganization plan is not submitted to the economic court, the economic court has the right to decide on declaring the debtor bankrupt.

An important component of the reorganization process is the coordination and quality control of the implementation of planned activities, which is entrusted to the management services of the enterprise.

The decision to reorganize an enterprise or liquidate it is made on the basis of the findings of the reorganization audit, the main purpose of which is to assess the suitability of the enterprise for reorganization, i.e. determining the depth of the financial crisis and identifying opportunities to overcome it.

The goal of reorganization is considered achieved if, with the help of external and internal financial sources, the company gets out of the crisis (normalizes production activities and avoids being declared bankrupt) and ensures its profitability and competitiveness in the long term.

Reorganization is introduced for a period not exceeding 12 months.

The main financial sources of business reorganization are.

Internal sources financial stabilization.

The use of internal financial reserves significantly reduces the dependence of the efficiency of the reorganization on external financial sources.

There are two types of enterprise response to the financial crisis:

1.Defensive tactics, which provides for a sharp reduction in costs, the closure and sale of certain divisions of the enterprise, equipment, the release of personnel, etc.

2.Offensive tactics , which provides for active actions: modernization of equipment, introduction of new technologies, introduction of effective marketing, search for new sales markets, etc.

So, internal sources of sanitation can be:

the use of combined tactics when carrying out rehabilitation measures;

collection of accounts receivable, which is a significant reserve for the restoration of solvency. Therefore, the financial manager of the enterprise must use all available opportunities to pay off such debt.

The main forms of receivables refinancing include: compulsory debt collection through the economic court; factoring (when enterprises cede to a factoring company the right to receive funds in accordance with payment documents for delivered products in exchange for immediate receipt of the principal amount of receivables);

Accounting for bills (operations of commercial banks to purchase bills of exchange from enterprises at prices that depend on the amount of the bill, maturity and risk of non-repayment).

Financial recovery with the involvement of the owners' resources enterprises.

The most interested persons in financial rehabilitation are the owners of the enterprise (shareholders, shareholders). They usually bear a significant burden of financing the remediation activities.

Financing of the rehabilitation by the owners can be carried out by reducing or increasing the authorized capital of the debtor.

A reduction in the authorized capital is allowed only with the consent of creditors and is carried out by methods:

Decrease in the par value of shares.

By reducing the number of shares by repurchasing part of the shares from their owners with the aim of canceling these shares.

Joint-stock companies have the right to increase the authorized capital if all previously issued shares are fully paid at a value not lower than par. The increase in the authorized capital is carried out by the following methods:

Issue of new shares.

An increase in the par value of shares.

Issue of conversion bonds, which in foreign practice are assessed as the best reorganization instrument.

Conversion bonds are a method of raising capital associated with the issuance of registered bonds by an enterprise, which after a certain time can be exchanged for common shares of the enterprise. By investing in conversion bonds, an investor achieves a double goal: on the one hand, the relative safety of investments (bonds are less risky securities compared to stocks and, in addition, in the event of bankruptcy, the claims of bondholders will be satisfied simultaneously with other creditors), on the other - the possibility of increasing capital, which is given by ordinary shares.

Conversion bonds are issued by large enterprises for a period of 5-10 years.

Participation of creditors in the financial recovery of the debtor.

The financial participation of creditors in debtor recovery can be carried out:

prolongation and restructuring of existing debt;

provision of additional credit resources;

3) complete or partial refusal of their claims.

Financial participation of personnel in the reorganization of the enterprise.

The main reason for the financial participation of personnel in the reorganization of the enterprise is the ability to save jobs.

Funding for rehabilitation by personnel can be carried out in the following forms:

Postponement or waiver of performance rewards;

Provision of loans by employees;

Purchase by employees of shares of a given enterprise.

The Bankruptcy Law and the Property Law stipulate that the labor collective of a state enterprise, against which a bankruptcy case has been initiated, can lease the enterprise or buy it out, creating a certain type of business entity, subject to taking on debts and agreeing to these are the lenders.

If there are several applicants for participation in the reorganization of a state enterprise, a business company founded by members of the labor collective does not have any advantages over other applicants and must go through a competitive selection process.

State financial support for the reorganization of enterprises.

If the mobilized financial resources from decentralized sources were not enough for a successful reorganization, then in some cases a decision may be made to provide state financial support (for example, when the state recognizes the products of such enterprises as socially necessary). Support is focused primarily on enterprises that are able to use it with maximum efficiency and ensure an increase in the production of products that will positively affect the revenue side of the budget.

Centralized rehabilitation support can be carried out:

Direct budget financing;

Indirect forms of government influence.

Direct budget financing occurs on a returnable basis (budget loans) and irrevocable basis (subsidies, grants, full or partial redemption by the state of shares of enterprises that are on the border of bankruptcy).

TO indirectforms of state support for reorganization includes the provision of state guarantees and powers of attorney, i.e. obligations of the state to pay off the debts of the enterprise in the event of its inability to independently fulfill the terms of the loan agreement.

If an enterprise, which is in a state of crisis, does not find sources for carrying out remediation measures, it faces the threat of bankruptcy. Bankruptcy - This is due to the lack of assets in a liquid form, the inability of a legal entity to meet in due time the claims made against it by creditors and to fulfill its obligations to the budget.

A bankruptcy case is raised by an economic court if the creditor's undisputed claims against the debtor cumulatively amount to at least 300 minimum wages that were not satisfied by the debtor within 3 months after the deadline set for their repayment.

The Commercial Court can apply the following types of procedures:

reorganization (external property management, reorganization and reorganization);

liquidation (voluntary or compulsory liquidation of an enterprise);

3) amicable agreement (between the debtor and creditors).

The Economic Court declares the debtor bankrupt in the absence of proposals for the reorganization or disagreement of creditors with its terms.

In the ruling on declaring the debtor bankrupt, the economic court also appoints a liquidation commission (representatives of the meeting of creditors, banks, financial authorities and the State Property Fund - for state-owned enterprises), which evaluates the debtor's property, carries out work to collect accounts receivable, settles with creditors and draws up a liquidation balance .Unfortunately, for Ukraine, a typical situation is when the liquidation commission consists of representatives of creditor banks, energy companies and tax authorities. They, as a rule, are absolutely not interested in preserving the debtor and all their activities are aimed at selling the most liquid part of the property.

From the moment the debtor is declared bankrupt:

The debtor's business activity is terminated;

The right to dispose of the bankrupt's property is transferred to the liquidation commission;

The terms of all bankruptcy debts are deemed to have expired, and the accrual of interest and interest on all types of bankruptcy debts ceases.

The proceeds from the sale of the bankrupt's property are directed to satisfy the claims of creditors in the following sequence:

At first, the claims secured by the pledge are satisfied; payment of severance pay to dismissed employees; expenses related to the conduct of the bankruptcy case in the economic court and the work of the liquidation commission;

Secondly, requirements for payments to employees of the enterprise are satisfied (with the exception of the return of contributions of members of the labor collective to the authorized capital of the enterprise);

third, the requirements for the payment of taxes and fees are satisfied; -.

fourthly, the claims of creditors that are secured by a pledge are satisfied:

fifthly, the requirements for the return of contributions of members of the labor collective to the authorized capital are satisfied;

At sixth, other requirements are met.

To predict the bankruptcy of an enterprise, the model "2-Altman's account" is used, which was obtained by the American economist Eduard Altman as a result of a study of the financial condition of 19 enterprises. Studies have shown that certain combinations of relative indicators have the ability to predict the likelihood of future bankruptcy of an enterprise. Using the analysis of multiple discriminants, Altman calculated the parameters of a linear function, which had the following form:

where Z is an indicator of the company's insolvency,

An - parameters that show the measure of the impact of indicators on the likelihoodbankruptcy,

Кn - indicators of the enterprise.

This model was two-factor, in particular, such indicators as coverage ratio and financial dependence ratio were used in the calculations.

However, it is obvious that predicting the bankruptcy of an enterprise using a two-factor model did not provide high accuracy of calculations, since it did not take into account other indicators that characterize the business activity of the enterprise.

Continuing research by Altman led to the fact that, based on the results of the activities of 66 enterprises (half of which went bankrupt in the period from 1946 to 1965, and half continued to work successfully), a five-factor model was developed, which took the form:

15. The system of indicators for assessing the financial condition of the enterprise.

The financial condition of an enterprise is the movement of cash flows serving the production and sale of its products.

There is both a direct and an inverse relationship between the development of production and the state of finances.

The financial condition of an economic unit is directly dependent on the volumetric and dynamic indicators of the movement of production. An increase in the volume of production improves the financial condition of the enterprise, while its reduction, on the contrary, worsens. But the financial condition, in turn, affects production: it slows it down if it worsens, and speeds it up if it increases.

The higher the rate of growth of production at the enterprise, the higher the proceeds from the sale of products, and, consequently, the profit.

The financial condition of the enterprise- This is an economic category that reflects the state of capital in the process of its circulation and the ability of a business entity to repay debt obligations and self-development at a fixed point in time.

Thus, the financial condition of the organization is characterized by the placement and use of funds (assets) and the sources of their formation (equity capital and liabilities, i.e. liabilities).

Stable financial condition is a prerequisite for the effective operation of the company. The financial condition of enterprises (FSP), its stability largely depends on the optimality of the structure of capital sources (the ratio of equity and borrowed funds) and on the optimality of the structure of the assets of the enterprise, and first of all, on the ratio of fixed and circulating assets, as well as on the balance of assets and liabilities of the enterprise.

The analysis of the financial condition of the company includes the blocks shown in Fig. 3.

Rice. 3 The main blocks of analysis of the financial condition of the enterprise

Indicators of financial and market stability of the enterprise

Capitalization ratio

Capitalization ratio, or the ratio of the ratio of borrowed (borrowed) and own funds (sources). It represents the ratio of all attracted capital to equity capital and is determined by the following formula:

Raised capital (the sum of the results of the second and third sections of the balance sheet liability "Long-term liabilities" and "Short-term liabilities") / equity capital (the result of the first section of the liability "Capital and reserves").

This ratio gives an idea of what sources of funds the organization has more - borrowed (borrowed) or own. The more this ratio exceeds one, the greater the dependence of the organization on borrowed sources of funds. The critical value of this indicator is 0.7.If the ratio exceeds this value, then the financial stability of the organization is doubtful.

Maneuverability coefficient(mobility) of equity (equity) is calculated according to the following formula:

Own working capital (the result of the first section of the balance sheet liabilities "Capital and reserves" minus the total of the first section of the asset "Non-current assets") divided by equity capital (the result of the first section of the balance sheet liability "Capital and reserves").

This the coefficient shows what part of the organization's own funds is in mobile form, allowing you to relatively freely maneuver these means. The standard value of the coefficient of maneuverability is 0,2 - 0,5 .

Financial stability ratio expresses the proportion of those sources of financing that this organization can use in its activities for a long time, attracted to finance the assets of this organization along with its own funds.

The financial stability ratio is calculated according to the following formula:

Equity is added to long-term loans and borrowings divided by the currency (total) of the balance.

Funding ratio shows what part of the organization's activities is financed from its own sources of funds, and what - from borrowed funds. This indicator is calculated using the following formula:

Divide equity capital by borrowed capital.

Leverage ratio(the coefficient of concentration of attracted capital) shows the share of loans, borrowings and accounts payable in the total amount of sources of property of the organization. The value of this indicator should not be more than 0.3.

Shows the ratio between long-term liabilities (liabilities) and long-term (non-current) assets:

Long-term liabilities (the second section of the balance sheet liabilities) Non-current assets (the first section of the balance sheet asset)

It is defined like this:

Long-term liabilities (the result of the second section of the balance sheet liability) divided by Long-term liabilities + equity (the sum of the results of the first and second sections of the balance sheet liability).

This ratio characterizes the proportion of long-term sources of funds in the total amount of the organization's permanent liabilities.

Capital Raised Structure Ratio expresses the share of long-term liabilities in the total amount of attracted (borrowed) sources of funds:

Long-term liabilities (the result of the second section of the balance sheet liability) are divided by the attracted capital (the sum of the results of the second and third sections of the balance sheet liability).

Investment coverage ratio characterizes the share of equity and long-term liabilities in the total assets of the organization:

Long-term liabilities (the second section of the liability) add equity (the first section of the liability) divided by the currency (total) of the balance.

Supply ratio own circulating assets shows the extent to which inventories are formed from their own sources and do not need to attract borrowed funds. This indicator is determined by the following formula:

Own sources of funds minus non-current assets divided by inventories (from the second section of the asset).

The normative value of this indicator should be at least 0.5. Another indicator characterizing the state of current assets is ratio of inventories and own working capital... It is the opposite of the previous indicator:

The normative value of this coefficient is more than one, and taking into account the normative value of the previous indicator should not exceed two.

Functional capital flexibility ratio(own circulating assets). It can be determined by the following formula:

Cash to add short-term financial investments divided by own sources of funds minus non-current assets.

This indicator characterizes that part of own circulating assets, which is in the form of cash and quick-selling securities, that is, in the form of circulating assets with maximum liquidity. For a normally operating organization, this indicator varies from zero to one.

Permanent asset index(the ratio of fixed assets to equity) is a coefficient expressing the share of fixed assets covered by sources of equity. It is determined by the formula:

Divide non-current assets into own sources of funds.

The approximate value of this indicator is 0.5 - 0.8.

Property real value ratio... This indicator determines what share of the means of production in the value of the organization's property. It is calculated using the following formula:

The total cost of fixed assets, raw materials, materials, semi-finished products, work in progress is divided by the total cost of the organization's property (balance sheet currency).

This ratio reflects the share in the composition of assets of the property that provides the main activities of the organization (i.e. production, production of work, provision of services).

Such a value of this indicator is considered normal when the real value of the property is more than half of the total value of assets.

Ratio of current (current) assets and real estate... It is calculated using the following formula:

Current assets (the second section of the balance sheet asset) are divided into real estate (from the first section of the balance sheet asset).

The value 0.5 can be taken as the minimum standard value of this indicator. Its higher value indicates an increase in the production capabilities of a given organization.

An indicator of financial stability is also economic growth sustainability coefficient calculated according to the following formula:

Net income minus dividends paid to shareholders divided by equity.

This indicator characterizes the stability of the profit remaining in the organization for its development and the creation of reserves.

Net revenue ratio by the following formula:

Divide the net profit plus depreciation charges by the proceeds from the sale of products, works, services.

This indicator expresses the proportion of that part of the revenue that remains at the disposal of this organization (ie, net profit and depreciation charges).

Financial soundness ratios

Financial stability the enterprise is characterized by a group of indicators reflecting the structure of its capital, the ability to repay its long-term debt and pay off loans. The most important of these are:

· coefficient of autonomy (ownership);

· debt capital ratio;

· financial dependence ratio (financial leverage);

· creditors protection ratio (interest coverage ratio).

In the theory and practice of financial analysis, a large number of other ratios related to the structure of the balance sheet are used. However, they do not formally carry new information, but are useful only from a meaningful point of view, since they allow one to more deeply comprehend the situation (for example, the coefficient of long-term dependence, the coefficient of non-current assets, the coefficient of flexibility, etc.).

Autonomy ratio(ownership) shows the degree of independence of the company from external sources of financing, or in other words, the share of equity in assets.

where is equity capital;

- balance asset.

Concentration ratio of dependence of debt capital reflects the share of borrowed capital in funding sources.

Where ZK - borrowed capital.

The sum of the coefficients of autonomy and dependence is always equal to 1. The financial position of the enterprise is considered the more stable, the higher the first coefficient and, accordingly, lower the second. The decrease in the autonomy ratio is associated with obtaining loans. This can lead to a significant deterioration in the financial situation during a downturn in market conditions, when incomes fall, and you have to pay interest in the same fixed amount and return the principal debt. As a result, there is a real threat of loss of the company's solvency. A situation is considered favorable when it is above 0.5, that is, equity capital exceeds liabilities.

Capital structure ratio(financial leverage) is considered one of the main in characterizing the financial stability of an enterprise; it shows how much borrowed funds account for 1 ruble of own.

, (1.8)

This coefficient should not be more than 1. Its value is considered optimal 0.67 (40%: 60%).

High dependence on external loans can significantly worsen the position of the enterprise in the event of a slowdown in the rate of implementation, since the cost of paying interest on loans is a fixed cost. In addition, it may be difficult to obtain new loans.

In some cases, it is profitable for an enterprise to take loans even if its own funds are sufficient, since the return on equity increases as a result of the fact that the effect of the use of borrowed funds is much higher than the interest rate for a loan.

Creditors protection ratio(or interest coverage ratio) characterizes the degree of protection of creditors from non-payment of interest on a loan.

The value of the interest coverage ratio must be greater than 1, otherwise the company will not be able to fully pay off its current liabilities with creditors.

Profitability ratios

Profitability ratios(efficiency) characterize the efficiency of the use of assets and invested capital. Unlike indicators of liquidity and financial stability, designed to analyze the state of the enterprise for a certain date, profitability indicators reflect the results of the enterprise for a certain period of time (year, quarter).

In financial management, the following profitability indicators are most often used:

· profitability of the company's assets;

· profitability of sales;

· return on invested capital;

· return on equity.

Return on assets of an enterprise is calculated by dividing net profit by the average annual value of assets and characterizes the efficiency of investment in the assets of a given enterprise.

where is the net profit;

- total assets (balance sheet total - net).

This indicator is the most important in assessing the competitiveness of an enterprise. The actual level of return on assets of the enterprise is compared with the industry average.

Return on sales- this is profit divided by the volume of products sold, calculated both on the basis of profit from sales and net.

, (1.11)

where is the sales proceeds.

This indicator indicates the amount of profit (gross or net) brought by each monetary unit of products sold.

The dynamics of the indicator of profitability of products reflects changes in the pricing policy of the enterprise and its ability to control the cost of production.

Return on invested capital allows you to assess the effectiveness and feasibility of relationships with investors, since it indicates the profitability of long-term capital.

Return on equity allows you to determine the efficiency of capital invested by owners, and compare this indicator with the possible receipt of income from investing these funds in other securities.

2.4.3. Financial stability assessment

One of the most important characteristics of the financial condition of an enterprise is the stability of its activities in the light of a long-term perspective. It is associated with the general financial structure of the enterprise, the degree of its dependence on creditors and investors. Thus, many businessmen, including representatives of the public sector of the economy, prefer to invest a minimum of their own funds in the business, and finance it with borrowed money. However, if the equity-borrowed structure is heavily skewed towards debt, the company may go bankrupt if several lenders simultaneously demand their money back at an “inconvenient” time.

Long-term financial sustainability is characterized, therefore, by the ratio of own and borrowed funds. However, this indicator provides only a general assessment of financial stability. Therefore, in the world and domestic accounting and analytical practice, a system of indicators has been developed.

Equity concentration ratio... It characterizes the share of owners of an enterprise in the total amount of funds advanced for its activities. The higher the value of this coefficient, the more financially stable, stable and independent of external creditors the enterprise. An addition to this indicator is the concentration ratio of the attracted (borrowed) capital - their sum is equal to 1 (or 100%). There are different, sometimes opposite opinions about the degree of attraction of borrowed funds in foreign practice. The most common opinion is that the share of equity capital should be large enough. The lower limit of this indicator is also indicated - 0.6 (or 60%). Creditors are more willing to invest in an enterprise with a high share of equity capital, since it is more likely to be able to pay off debts from its own funds. On the contrary, many Japanese companies are characterized by a high share of attracted capital (up to 80%), and the value of this indicator is on average 58% higher than, for example, in American corporations. The fact is that in these two countries investment flows are of a completely different nature - in the United States, the main flow of investment comes from the population, in Japan - from banks. Therefore, a high value of the borrowed capital concentration ratio testifies to the degree of confidence in the corporation on the part of banks, and, therefore, to its financial reliability; on the contrary, a low value of this coefficient for a Japanese corporation indicates its inability to obtain loans from a bank, which is a certain warning to investors and creditors.

Dependency ratio... It is the inverse of the equity concentration ratio. The growth of this indicator in dynamics means an increase in the share of borrowed funds in the financing of the enterprise. If its value drops to one (or 100%), this means that the owners are fully financing their enterprise. The interpretation of the indicator is simple and clear: its value equal to 1.25 rubles means that in every 1.25 rubles invested in the assets of the enterprise, 25 kopecks. borrowed. This indicator is widely used in deterministic factor analysis.

Equity capital flexibility ratio... Shows how much of equity is used to finance current activities, i.e. invested in working capital, and what part is capitalized. The value of this indicator can vary significantly depending on the capital structure and industry sector of the enterprise.

Long-term investment structure ratio... The calculation logic for this indicator is based on the assumption that long-term loans and borrowings are used to finance fixed assets and other capital investments. The coefficient shows what part of fixed assets and other non-current assets is financed by external investors, i.e. (in a sense) belongs to them, not the owners of the enterprise.

Long-term borrowing ratio... Characterizes the capital structure. The growth of this indicator in dynamics is - in a certain sense - a negative trend, which means that the company is increasingly dependent on external investors.

Equity to borrowed funds ratio... Like some of the above indicators, this ratio gives the most general assessment of the financial stability of the enterprise. It has a fairly simple interpretation: its value equal to 0.178 means that for every ruble of own funds invested in the assets of the enterprise, there are 17.8 kopecks. borrowed money. The growth of the indicator in dynamics testifies to the increased dependence of the enterprise on external investors and creditors, i.e. about a certain decrease in financial stability, and vice versa.

It is necessary to emphasize once again that there are no uniform normative criteria for the considered indicators. They depend on many factors: the sectoral affiliation of the enterprise, the principles of lending, the existing structure of sources of funds, the turnover of working capital, the reputation of the enterprise, etc. groups of related enterprises. It is possible to formulate only one rule that “works” for enterprises of any type: the owners of the enterprise (shareholders, investors and other persons who have made a contribution to the authorized capital) prefer a reasonable growth in the dynamics of the share of borrowed funds; on the contrary, lenders (suppliers of raw materials and materials, banks providing short-term loans, and other counterparties) prefer enterprises with a high share of equity capital, with greater financial autonomy.

The formula for determining this ratio is as follows:

KKZK = ZK / WB, (5)

where ЗК - borrowed capital, which are short-term and long-term liabilities of the firm;

WB - balance currency.

KKZK09year = (25641 + 83966) / 118943 = 0.92;

KKZK10year = (49059 + 65562) / 126429 = 0.91;

KKZK11year = (70066 + 30395) / 132846 = 0.76.

The concentration ratio of borrowed capital shows how much borrowed capital falls on a unit of financial resources, or, in fact, a particle of borrowed capital in the total amount of financial resources of an enterprise. The debt capital concentration ratio is positively assessed in case of its decrease. The lower this indicator, the less the debt of the holding company or its subsidiary is considered and the more stable its financial condition will be.

Every enterprise, firm or organization is focused on making a profit. It is profit that allows us to pursue an investment policy in our own circulating and non-circulating assets, to develop production capacity and innovativeness of products. In order to assess the direction of development of the enterprise, reference points are needed.

These benchmarks in financial terms and financial policy are the financial stability ratios.

Determination of financial stability
Financial stability is the degree of solvency (creditworthiness) of the enterprise, or the share of the overall stability of the enterprise, which determines the availability of funds to maintain the stable and efficient operation of the enterprise. Assessment of financial stability is an important stage in the financial analysis of an enterprise, therefore, it shows the degree of independence of the enterprise from its debts and obligations.

Types of financial strength ratios
The first coefficient characterizing the financial stability of the enterprise is financial soundness ratio, which determines the dynamics of changes in the state of the financial resources of the enterprise in relation to how much the total budget of the enterprise can cover the costs of the production process and other purposes. The following types of ratios (indicators) of financial stability can be distinguished:

Financial dependence indicator;
Equity capital concentration indicator;
The indicator of the ratio of own and borrowed funds;
Indicator of maneuverability of equity capital;
Indicator of the structure of long-term investments;
Debt concentration indicator;
Debt structure indicator;
Indicator of long-term borrowed funds.

The financial stability ratio determines the success of an enterprise, because its value characterizes how much the enterprise (organization) depends on borrowed funds from creditors and investors and the ability of the enterprise to fulfill its obligations in a timely manner and in full. High dependence on borrowed funds can constrain the activities of the enterprise in the event of an unplanned payment.

Financial dependence ratios
The financial dependence ratio is a type of financial stability ratios of an enterprise and shows the degree to which its assets are secured by borrowed funds. A large share of asset financing with the help of borrowed funds shows low solvency of the enterprise and low financial stability. This, in turn, already affects the quality of relations with partners and financial institutions (banks). Another name for the coefficient of financial dependence (independence) is the coefficient of autonomy (in more detail).

The high value of own funds in the assets of the enterprise is also not an indicator of success. Business profitability is higher when, in addition to its own funds, the company also uses borrowed funds. The task is to determine the optimal ratio of own and borrowed funds for effective functioning. The formula for calculating the ratio of financial dependence is as follows:

Financial Dependence Ratio = Balance Currency / Equity

Equity concentration ratio
This indicator of financial stability shows the share of the company's funds that is invested in the activities of the organization. A high value of this coefficient of financial stability shows a low degree of dependence on external creditors. To calculate this coefficient of financial stability, you must:

Equity capital concentration ratio = Equity / Balance sheet currency

Equity to borrowed funds ratio
This financial stability ratio shows the ratio of the company's own and borrowed funds. If this ratio exceeds 1, then the company is considered independent of borrowed funds from creditors and investors. If less is considered dependent. It is also necessary to take into account the rate of turnover of working capital, therefore, in addition, it is useful to also take into account the rate of turnover of receivables and the speed of material working capital. If accounts receivable turn around faster than working capital, then this shows a high intensity of cash flow to the organization. The formula for calculating this indicator:

Equity to borrowed funds ratio = Equity / Company borrowed capital

Equity capital flexibility ratio
This financial stability ratio shows the size of the sources of the company's own funds in mobile form. The standard value is 0.5 and higher. The equity capital flexibility ratio is calculated as follows:

Equity capital flexibility ratio = Own working capital / Equity capital

It should be noted that the standard values also depend on the type of activity of the enterprise.

Long-term investment structure ratio
This coefficient of financial stability of the enterprise shows the share of long-term liabilities among all the assets of the enterprise. The low value of this indicator indicates the inability of the enterprise to attract long-term credits and loans. The high value of the ratio shows the ability of the organization to issue loans on its own. A high value can also be due to a strong dependence on investors. To calculate the coefficient of the structure of long-term investments, it is necessary:
Long-term investment structure ratio = Long-term liabilities / Non-current assets

Debt capital concentration ratio
This coefficient of financial stability is similar to the indicator of maneuverability of equity capital, the calculation formula is given below:

Debt capital concentration ratio = Debt capital / Balance sheet currency

The debt capital includes both long-term and short-term liabilities of the organization.

Debt structure ratio
This coefficient of financial stability shows the sources of the formation of the company's debt capital. From the source of formation, it can be concluded about how the organization's non-current and current assets were created, because long-term borrowed funds are usually taken for the formation of non-current assets (buildings, machines, structures, etc.) and short-term ones for the acquisition of current assets (raw materials, materials, etc.)

Debt capital structure ratio = Long-term liabilities / Non-board assets of the enterprise

Long-term borrowing ratio
This ratio of financial stability shows the share of sources of formation of non-current assets, which falls on long-term loans and equity. The high value of the coefficient characterizes the high dependence of the enterprise on borrowed funds.

Debt capital structure ratio = Long-term liabilities / (Long-term liabilities + Equity of the enterprise)

Conclusion
A set of financial stability ratios allows to comprehensively determine and evaluate the success, nature and trends in the activities of the enterprise and the management of financial resources.

One of the components of the methodology for the financial stability of the organization is debt concentration ratio... It is calculated according to the established formula and has a clearly defined meaning. How to calculate the presented indicator, as well as to interpret the result? There is a certain technique.

The essence of the coefficient

The volume of paid financial sources in the balance sheet structure. Each enterprise must organize its activities using its own capital. However, raising debt capital opens up new prospects for the organization.

The essence of borrowed funds

The company, which is a third-party investor, discovers new perspectives and opportunities. Its financial potential is growing rapidly. At the same time, the cost of the presented sources remains quite acceptable. With the right use of additional funds, you can increase the company's profitability. In this case, the profit grows.

Methods for determining the indicator

Balance sheet data will help you calculate debt capital concentration ratio. Formula simple for calculations. It reflects the ratio between the indicator of foreign loans and the balance sheet currency. This is the actual debt burden that the organization faces. The calculation formula looks like this:

CC = Z / B, where: Z - the amount of loans (short-term and long-term), B - balance sheet currency.

Standard

Financial benefit

Calculation example

To understand the essence of the presented methodology, it is necessary to consider an example of calculation debt capital concentration ratio. Balance formula, which was given above is applied in the course of the study.

For example, the company completed with a total balance sheet total of 343 million rubles. Its structure was determined by 56 million rubles. long-term liabilities and 103 million rubles. short-term debt. In the previous period, the balance sheet total amounted to RUB 321 million. Short-term liabilities were 98 million rubles, and long-term funding sources - 58 million rubles.

In the current period, the concentration coefficient was as follows:

KKt = (56 + 103) / 343 = 0.464.

In the previous period, the same indicator was at the level:

KKp = (98 + 58) / 321 = 0.486.

Financial leverage

The indicator allows analysts to correctly assess dependence of the debt capital concentration ratio from the conditions of the business environment. The combination of these two calculation methods makes it possible to establish the level of efficiency of using the available capital, the possibilities for its further increase at the expense of credit sources.

Profitability

Should be considered in the general system of analytical calculation. Therefore, together with the presented methodology, other indicators are determined. Their combined analysis allows us to draw correct conclusions about the capital structure.

The return on borrowed capital is studied in dynamics. This allows us to draw conclusions about further actions.

Structure management

Becomes the first indicator in the development of the financial strategy of the organization. Based on the calculations performed, the company's management can decide on the further attraction of loans and credits.

Having considered what constitutes debt capital concentration ratio, the methodology for calculating it and the approach to interpreting the result, you can correctly assess the structure of the balance sheet and make a decision on the further development of the organization.

Types of financial strength ratios

The first coefficient characterizing the financial stability of the enterprise is financial soundness ratio, which determines the dynamics of changes in the state of the financial resources of the enterprise in relation to how much the total budget of the enterprise can cover the costs of the production process and other purposes. The following types of ratios (indicators) of financial stability can be distinguished:

Financial dependence ratios

The financial dependence ratio is a type of financial stability ratios of an enterprise and shows the degree to which its assets are secured by borrowed funds. A large share of asset financing with the help of borrowed funds shows low solvency of the enterprise and low financial stability. This, in turn, already affects the quality of relations with partners and financial institutions (banks). Another name for the coefficient of financial dependence (independence) is the coefficient of autonomy (in more detail).

Financial Dependence Ratio = Balance Currency / Equity

Equity concentration ratio

This indicator of financial stability shows the share of the company's funds that is invested in the activities of the organization. A high value of this coefficient of financial stability shows a low degree of dependence on external creditors. To calculate this coefficient of financial stability, you must:

Equity capital concentration ratio = Equity / Balance sheet currency

Equity to borrowed funds ratio

This financial stability ratio shows the ratio of the company's own and borrowed funds. If this ratio exceeds 1, then the company is considered independent of borrowed funds from creditors and investors. If less is considered dependent. It is also necessary to take into account the rate of turnover of working capital, therefore, in addition, it is useful to also take into account the rate of turnover of receivables and the speed of material working capital. If accounts receivable turn around faster than working capital, then this shows a high intensity of cash flow to the organization. The formula for calculating this indicator:

Equity to borrowed funds ratio = Equity / Company borrowed capital

Equity capital flexibility ratio

This financial stability ratio shows the size of the sources of the company's own funds in mobile form. The standard value is 0.5 and higher. The equity capital flexibility ratio is calculated as follows:

Equity capital flexibility ratio = Own working capital / Equity capital

It should be noted that the standard values also depend on the type of activity of the enterprise.

Long-term investment structure ratio

This coefficient of financial stability of the enterprise shows the share of long-term liabilities among all the assets of the enterprise. The low value of this indicator indicates the inability of the enterprise to attract long-term credits and loans. The high value of the ratio shows the ability of the organization to issue loans on its own. A high value can also be due to a strong dependence on investors. To calculate the coefficient of the structure of long-term investments, it is necessary:
Long-term investment structure ratio = Long-term liabilities / Non-current assets

Debt capital concentration ratio

This coefficient of financial stability is similar to the indicator of maneuverability of equity capital, the calculation formula is given below:

Debt capital concentration ratio = Debt capital / Balance sheet currency

The debt capital includes both long-term and short-term liabilities of the organization.

Debt structure ratio

This coefficient of financial stability shows the sources of the formation of the company's debt capital. From the source of formation, it can be concluded about how the organization's non-current and current assets were created, because long-term borrowed funds are usually taken for the formation of non-current assets (buildings, machines, structures, etc.) and short-term ones for the acquisition of current assets (raw materials, materials, etc.)

Debt capital structure ratio = Long-term liabilities / Non-board assets of the enterprise

Long-term borrowing ratio

This ratio of financial stability shows the share of sources of formation of non-current assets, which falls on long-term loans and equity. The high value of the coefficient characterizes the high dependence of the enterprise on borrowed funds.

Debt capital structure ratio = Long-term liabilities / (Long-term liabilities + Equity of the enterprise)

The higher the value of this coefficient, the more financially stable, stable and independent of external creditors the enterprise. The minimum value of the indicator is taken at the level of 0.5; the maximum is 0.7. A coefficient value> 0.5 means that all the company's liabilities can be covered by its own funds.

The debt capital concentration ratio complements the previous indicator and characterizes the share of debt capital in the organization's turnover. The recommended value of the indicator is 0.3–0.5. The sum of the two coefficients is equal to one or 100%.

Kconc. loan. drip =; (3.6)

KKZ.Cap. kg = = 0.35;

KKZ.Kap. ng = = 0.20;

The value of the coefficient characterizes the share of borrowed capital in the turnover of the organization. The value of the coefficient reaches the standard value. The sum of the two coefficients is equal to 1, this indicates the correctness of the calculations.

The ratio of borrowed and own funds / financing ratio gives the most general assessment of the financial stability of the enterprise and shows how much borrowed funds fall on each ruble of equity capital.

Kfinancer. = ; (3.7)

Kf.kg. = = 0.54;

Kf.ng = = 0.25;

The growth of the coefficient in dynamics is, in a certain sense, a negative trend, which means that from a long-term perspective, the enterprise's dependence on external creditors is increasing. The optimal value of the indicator is influenced by two mutually exclusive factors: on the one hand, the higher the share of equity capital, the more independent the company is from external sources, the easier it is to get a loan if necessary. On the other hand, equity capital in countries with developed market economies is quite expensive, since it is represented by equity capital, and shareholders willingly invest in shares only if they bring dividends higher than bank deposits, therefore, bank loans for the enterprise are often cheaper. In Western practice, where it is customary to live in debt, the ratio of equity and debt capital to 1/3 and 2/3, respectively, is considered normal. In domestic practice, where loans are provided reluctantly or at a very high interest rate, the optimal ratio is considered to be 2/3 of equity capital and 1/3 of attracted capital. The recommended value of the financing ratio according to domestic standards is 0.5 - 1.0.

Long-term investment structure ratio / non-current assets coverage ratio. The logic behind this indicator is based on the assumption that long-term capital should be used to finance capital investments.

BOA coverage = ; (3.8)

Coverage kg = = 0.008;

Coverage ng = = 0.001;

Coefficient name	Meaning	Regulatory restrictions
Coefficient name		Regulatory restrictions
1. Ratio of concentration of equity capital
2. Ratio of concentration of debt capital
3. Financing ratio
4. Coverage ratio of non-current assets

Analyzing the data in the table, we can conclude that the value of the equity capital concentration ratio reaches the standard value and at the end of the analyzed period is 0.65. This indicates that the company is financially stable, stable and regardless of external creditors, all the company's liabilities can be covered by its own funds. But if we analyze the dynamics of enterprise development, then we can conclude that financial independence is decreasing, and the value of the debt capital concentration ratio complements the previous indicator and characterizes the share of borrowed capital in the organization's turnover.

The financing ratio gives the most general assessment of the financial stability of the enterprise and shows how much borrowed funds fall on each ruble of equity capital. The growth of the coefficient in dynamics (0.2 for 2004 - 0.35 for 2005) is a negative trend, which means that from a long-term perspective, the enterprise's dependence on external creditors is increasing.

An indicator value of 1 is considered normal.

4. Ways to improve the financial condition of OJSC "Nadezhda"

4.1 Anti-crisis financial management of the enterprise

The anti-crisis financial management policy is part of the overall financial strategy of the enterprise, which consists in developing a system of methods for preliminary diagnostics of the threat of bankruptcy and the inclusion of mechanisms for the financial recovery of the enterprise, ensuring its exit from the crisis state.

The main goal of anti-crisis management is the development and implementation of measures aimed at neutralizing the most dangerous factors leading the company to a crisis state. The main tasks of anti-crisis management of the company include changing the functioning of economic mechanisms, transforming the criteria for making management decisions, developing and implementing the company's strategy and tactics in new conditions, actively using new management capabilities, and applying all possible methods of economic maneuvering.

It is obvious that anti-crisis management should be an integral element of the financial policy of any company, which requires constant monitoring of the market and the company's position on it, analyzing the degree of its financial stability, the state of affairs of counterparties. At the same time, the organization of anti-crisis management of the company is based on the following principles: early diagnosis of crisis phenomena in the financial activities of the company, the urgency of responding to crisis events, the adequacy of the company's response to the degree of real threat to its financial balance, full implementation of the company's internal opportunities to exit the crisis state. All this means that in the fight against the threat of bankruptcy, the company must rely mainly on internal financial resources.

Debt financing ratio. Debt capital concentration ratio

Read also

The essence of the coefficient

The essence of borrowed funds

Methods for determining the indicator

Standard

Financial benefit

Calculation example

Financial leverage

Profitability

Structure management

1. Ratio of concentration of equity capital (coefficient of autonomy, independence) = Equity / Enterprise assets

Debt capital concentration ratio = Debt capital / Enterprise assets

2. Ratio of financial dependence = / Ratio of autonomy = Enterprise assets / Equity

5.6 Financial recovery and bankruptcy of enterprises

15. The system of indicators for assessing the financial condition of the enterprise.

Financial soundness ratios

2.4.3. Financial stability assessment

The essence of the coefficient

The essence of borrowed funds

Methods for determining the indicator

Standard

Financial benefit

Calculation example

Financial leverage

Profitability

Structure management

Types of financial strength ratios

Financial dependence ratios

Equity concentration ratio

Equity to borrowed funds ratio

Equity capital flexibility ratio

Long-term investment structure ratio

Debt capital concentration ratio

Debt structure ratio

Long-term borrowing ratio