Usanov A.Yu.,

Department of Economics and Finance Company

Moscow Financial-Industrial University "Synergy"

 

The liquidity of the company and its definition

In a market economy, when choosing a management model enterprises face the need to solve two major problems: "maintaining the ability to respond to current financial liabilities, to provide long-term financing in the desired volume and the ability to safely maintain a current or desired capital structure". [1] These problems are solved in terms of the characteristics of the financial condition of the company, which is estimated liquidity and solvency. It is they who in the most general form of the enterprise is characterized by the ability to timely and fully settle the obligations of the counterparty. In the short term, for the final evaluation of the effectiveness of using the economic potential of the company and to determine its level of financial flexibility (financial stability) it is necessary to analyze the solvency and long-term - liquidity[2]. In general, the liquidity and solvency possible to characterize the financial condition of the enterprise at different degrees of accounting liquidity. They are also used in determining the reliability, credibility and competitiveness of the company, serve as a tool for the development of administrative decisions of tactical and strategic. At the same time these indicators in the interests of both internal and external users of analytical information, namely: the enterprise (its owners, employees), partners (suppliers of raw materials, consumer), investors and lenders, government[3].

In the financial liquidity of the dictionary is defined as "the ability of the borrower to ensure timely implementation of the debt; the ability of converting the firm's assets into cash; mobility of assets; ability to pay. " O.V.Gritsenko believes that liquidity is only possible repayment of its debt obligations on time and in full, and identifies it with the ability to pay.[4] Opinions YS Tsal-Tsalka[5], and EI D.S.Molyakova Shokhin[6] are similar and describe how the liquidity of the company's ability to quickly implement (sell) its assets and discharge its current obligations.

V.V.Kovalev to the above added that liquidity - is not only the existence of the company working capital in the amount sufficient to pay off short-term liabilities even if the crash of maturity of contractual [7] He stresses that in determining the nature of liquidity is important to remember that we are talking about the transformation of the natural resources in the production cycle repeated: "... => DS => PZ => NA => SE => D3 => DS => ...". In other words, it is assumed that before the funds mobilized reserves (PP), will be re-transformed into cash (DS), they must go through a series WIP (NP), finished products (GP), accounts receivable (DMZ).

V.G. Artemenko and  M.N. Belinder stress that liquidity can be considered as the time required for the sale of an asset and how the proceeds from the sale of an asset. Often, you can sell the asset for a short time, but at a substantial discount in the price.[8]IA Blank argues that the liquidity - it is "... a term describing the ability of certain types of property values ​​to be readily convertible into cash without losing its current value under current market conditions"[9]. This approach characterizes the liquidity as a function of time (the term of a possible sale), and risk (potential loss of value of the property in terms of maturity of its sales).

Thus, there are three approaches to the interpretation of the essence of the concept "liquidity":

1) Liquidity - the ability to quickly implement enterprise (sell) their assets in order to repay its short-term liabilities (Y.S. Tsal-Tsalka, D.S. Molyakov, E.I. Shokhin);

2) liquidity - is the time required for the sale of an asset; the amount received from the sale of an asset (V.G. Artemenko, M.N. Belinder);

3) liquidity - it is a function of time and the risk (IA Blank).

Liquidity - the ability of the enterprise to convert its assets into cash without losing the current cost to cover all its obligations under the current market conditions. The concept of "liquidity" is broader than "solvency"[10]. Liquidity is less dynamic compared to the solvency and describes not only the current state of the payments, but also the future. By contrast, insolvency can be a random, temporary or long-term, chronic. Indicating that the deterioration of liquidity, is to increase the immobilization of working capital, manifested in the increase of illiquid assets, overdue receivables.[11] While insolvency evidence is usually the loss of credits and loans are not repaid on time, overdue payables.

The analysis of solvency and liquidity, should clarify the concept of "liquidity balance", "liquid assets" and "degree of liquidity." Note that most of the authors at the opportunity to understand the balance of the liquidity of the enterprise in a timely manner using the present in its balance sheet assets to settle its obligations. Analysis of liquidity balance is to compare the means of the asset, grouped in descending order of liquidity, with commitments in liabilities, which are grouped according to the degree of urgency of their maturity.

A broader definition of Y.S. Tsal-Tsalka, which is under the liquid assets of the enterprise realizes the opportunity to maneuver freely and move them from the commodity form into the money, and vice versa, changing the structure of the means of payment, inventory and receivables in such a way that each monetary unit of the company was in the back and give maximum return in the form of income or savings.[12]

V.V. Kovalev under the liquidity of an asset realizes "his ability to transform into cash provided during the production process, and the degree of liquidity is determined by the length of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of the asset. In this sense, any assets that can be converted into cash, are liquid. " Liquidity of assets - is the reciprocal of the time required to turn them into money; the less time you will need to convert assets into cash - so they are more liquid. [8] The faster the asset can be converted without loss of value of money, the higher the liquidity. According to IA Blanca, the liquidity of assets - is "characteristic of certain types of company assets for their ability to rapid conversion into cash without losing its carrying amount in order to ensure the required level of solvency".[13]

In general, the time factor is taken into account in the indicator "degree of liquidity", which is the final indicator of the financial condition of the company, and is defined as the reciprocal of the time required to convert the assets into cash. The less time it takes to transfer a specific type of asset in the form of money, the higher the liquidity. There are several degrees of liquidity and, consequently, of the financial condition of the enterprise:

1) lack of liquidity - the company is not able to take advantage of price discounts and favorable commercial offers;

2) lack of liquidity - the company is not able to pay its debts on time, which could lead to the sale of long-term investments and fixed assets, and at worst - bankruptcy.

Thus, the deterioration of the liquidity of the enterprise, estimated from all positions considered above is the earliest and the first symptom of the onset of the financial crisis would result in the bankruptcy. For it is necessary to prevent the timely development of the evaluation system liquidity, allows you to get "accurate information about the financial condition of the company, to identify the causes of its deterioration and to identify ways of overcoming the financial crisis.

References:

1.   Артеменко В. Г., Беллендир, М. В. Финансовый анализ: учебник для вузов. – М.: ИНФРА-М, 2010. –  С. 41.

2.   Бланк И.А. Финансовый менеджмент – М.: Финансы и статистика, 2008. –  С. 114.

3.   Гриценко О.В. Анализ и диагностика финансово-хозяйственной деятельности предприятий. [Текст] // Экономика. Финансы. Управление. – 2010. - №1 – С. 93-96.

4.   Донцова Л. В., Никифорова Н. А. Комплексный анализ бухгалтерской отчетности. [Текст]: учебник для вузов. – М.: Дело и сервис, 2009. – С. 203.

5.   Инновационные процессы в агроэкономике: их содержание, направления, инструменты совершенствования (на примере Саратовской области) / Н.П. Фефелова, А.Ю. Усанов, Г.Е. Терина. – Москва, 2013.

6.   Ионова А.Ф., Селезнева Н.Н, Финансовый менеджмент. – М.: Проспект, 2010. –  С. 112.

7.   Ефимова О. В. Финансовый   анализ.   Бухгалтерский   учет. [Текст]: учебник для вузов.- М.: Финансы и статистика, 2009. –  С. 165.

8.   Ковалев В. В.  Анализ   финансового   состояния   и   прогнозирование банкротства. [Текст]: учебник для вузов.- СПб.: Питер, 2012. –  С. 98.

9.   Комплексный экономический анализ хозяйственной деятельности. Ионова Ю.Г., Усанов А.Ю., Фефелова Н.П. учебно-методическое пособие для бекалавров направления подготовки 080100.62 Экономика/ Москва, 2013

10.       Моляков Д.С., Шохин Е.И. Теория финансов предприятия. – М.: ИнфраМ, 2010. – 424 с.

11.       Т‏е‏п‏л‏о‏в‏а Т.В. Э‏ф‏ф‏е‏к‏т‏и‏в‏н‏ы‏й финансовый д‏и‏р‏е‏к‏т‏о‏р. - М.: Юрайт, 2012. – С. 202.

12.       Цал-Цалко Ю.С. Финансовый анализ. – К.: ЦУЛ, 2008, 566 с.

13.      Экономический анализ Ионова Ю.Г., Косорукова И.В., Кешокова А.А., Панина Е.В., Усанов А.Ю. Москва, 2012.

 


[1] Донцова Л. В., Никифорова Н. А. Комплексный анализ бухгалтерской отчетности. [Текст]: учебник для вузов. – М.: Дело и сервис, 2009. – С. 203.

[2] Ковалев В. В.  Анализ   финансового   состояния   и   прогнозирование банкротства. [Текст]: учебник для вузов.- СПб.: Питер, 2012. –  С. 98.

[3] Ионова А.Ф., Селезнева Н.Н, Финансовый менеджмент. – М.: Проспект, 2010. –  С. 112.

 

[4] Гриценко О.В. Анализ и диагностика финансово-хозяйственной деятельности предприятий. [Текст] // Экономика. Финансы. Управление. – 2010. - №1 – С. 93-96.

[5] Цал-Цалко Ю.С. Финансовый анализ. – К.: ЦУЛ, 2008, 566 с.

[6] Моляков Д.С., Шохин Е.И. Теория финансов предприятия. – М.: ИнфраМ, 2010. – 424 с.

[7] Ковалев В. В.  Анализ   финансового   состояния   и   прогнозирование банкротства. [Текст]: учебник для вузов.- СПб.: Питер, 2012. –  С. 98.

[8] Артеменко В. Г., Беллендир, М. В. Финансовый анализ: учебник для вузов. – М.: ИНФРА-М, 2010. –  С. 41.

[9] Бланк И.А. Финансовый менеджмент – М.: Финансы и статистика, 2008. –  С. 114.

 

[10] Экономический анализ Ионова Ю.Г., Косорукова И.В., Кешокова А.А., Панина Е.В., Усанов А.Ю. Москва, 2012.

[11] Ефимова О. В. Финансовый   анализ.   Бухгалтерский   учет. [Текст]: учебник для вузов.- М.: Финансы и статистика, 2009. –  С. 165.

 

[12] Цал-Цалко Ю.С. Финансовый анализ. – К.: ЦУЛ, 2008, 566 с.

[13] Бланк И.А. Финансовый менеджмент – М.: Финансы и статистика, 2008. –  С. 114.