The coefficient of mobility of property: the formula. Financial analysis

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2018-03-18 19:51:08

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For anybody not a secret that the stability of the financial performance of any enterprise depends primarily on literacy and the advisability of investing financial resources in assets. Therefore, qualitative assessment is necessary to study the structure of property and sources of its formation and reasons for their change. By the way, in more detail, generally dealt with the causes that negatively affect the financial condition of a structure.

Product assessment

the coefficient of mobility of property

Originally, according to the balance sheet is to determine the total value of the property structure at a specific reporting date. At this stage it is necessary to identify variances for each type of property by comparing the end and beginning of the reporting period. It should be noted that for a detailed study of changes in the structure need to calculate the proportion of each type of property in a common currency are presented in the balance sheet, as well as to study the causes of structural changes in the property.

Next step

Next we examine the correlation dynamics of the current and non-current assets, as well as to calculate the coefficient of mobility of property. Based on these calculations it will be to form the following conclusions:

  • In the case of increasing current assets and decreasing non-current assets in the structure one can observe a tendency of acceleration of negotiability of the property complex. In this scenario, the result usually is the release of specific funds and short-term investments (of course, if the percentage of submitted articles has increased).
  • In order to correctly characterize the property, it is necessary to calculate the coefficient of mobility of property. He is represented as the ratio of the value of core current assets to the value of the property. In practice it looks so: KMI = OA / WB (Coefficient of mobility of property). The formula, as you can see, is quite simple.

What else?

absolute figures

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The Final step of the first stage is the calculation of Cmoa. The coefficient of mobility of current assets is presented as the ratio of the maximum cell constituents (not only funds, but also financial investment) to the total cost of OA. It is important to note that the increase in the above ratios are indicative of acceleration of negotiability of the property complex structure.

The Coefficient of mobility of working capital is as follows: Cmoa = (DS + CFI) / OA.

It Should be noted that the low level of mobility of OA – not always a negative factor. In the case of high profitability of the product structure generally address the availability of resources to expand and enhance production.

Analysis of the production potential

 coefficient of stability

For anybody not a secret that the financial condition of any structure caused by its production activities. Therefore, when analysis is necessary to correctly assess the production potential, which should include:

  • Fixed assets.
  • WIP.
  • Property for production purposes.
  • Deferrals.

Important is the fact that the articles contain in their structure only real assets. They characterize the power structure in the production plan (security stock, etc.).

Manufacturing capacity

In order to correctly represent production potential, applying the following indicators:

  • Movement, as well as the share of assets for production purposes in the total value of the property.
  • Movement, as well as the proportion of OS in the total value of assets of the company.
  • The Ratio of depreciation for the asset.
  • The depreciation in the average value.
  • The Availability, dynamics and specific weight of capital investments, the correlation with financial.

Insights

the coefficient of mobility of working capital

The increase in the share of assets for production purposes at the end of the year and higher relative weights of the relevant assets in total assets structure is usually said to considerably increase the production capacity. It is important to note that this figure should not be lower than 50 percent (for comparison, as a rule, take the branch metrics in the standard). The proportion of the cost of fixed assets in the total value of funds structure is calculated as the ratio of the residual value of a fixed asset to balance sheet total. A similar calculation is performed usually at the beginning and at the end of the reporting period. The absolute indicators, which are reflected in the analysis process are compared with the standard (appropriate for all structures of a particular industry).

After the calculation of the depreciation factor (in other words, depreciation) is formed by qualitative characteristics. In order to correctly assess the intensity of fixed asset depreciation applied average depreciation rate (the ratio of the amount of depreciation to the original cost of the OS).

Analysis of the composition and dynamics of mobile devices

On the basis of the analysis of the structure of mobile equipment (see factor mobility property above), it is expedient to consider changes held in the OS in General terms, and then – in the context of specific articles. Appropriate to address the main causes of changes in working capital:

  • Profit (after all taxes paid).
  • Depreciation.
  • The Growth of own funds.
  • The Increase of credit debt or loans.
  • Increase in commitments payable.

Decrease in working capital

financial status

The Main reasons for the decrease in working capital are the following:

  • Some expenses covered at the expense of profit remaining at the disposal of one or another structure.
  • Investments of a capital nature.
  • Financial investments long-term nature.
  • Significant reduction in accounts payable.

It Should be noted that once were identified with numbers and produced an overall assessment, it is necessary to calculate the value of the effective use of the property.

The rate of long-term financial independence

As noted above, to assess the growth potential are a number of indicators. The coefficient of mobility of property, discussed above, characterizes the industry-specific structure. But in the economy there are a number of factors used in production analysis. Thus, the ratio of the sum of own capital and liabilities long-term nature of the balance sheet reflects the share of equity in total financial sources. It is important to note that the recommended value in this case is about 0.8-0.9. The coefficient of stability – the scientific name of this relationship. In accordance with the accounting reporting of the Russian Federation is calculated as follows:

(SK + TO) / WB = (line 1300 form 1 + P. 1400 form 1) / pp. 1700 form 1.

Analyze index

the coefficient of mobility of the property (the formula)

The Coefficient of stability is usually analyzed in dynamics. Thus, an upward trend can characterize the growth of business activity of the structure, the expansion of its production capacity and the efficiency of the management process. It is logical that the decrease in this ratio reflects a decrease in turnover, thus reducing the development rate structure. It is important to note that the maximum level of economic growth the company can achieve only in the case if the cash flows are reinvested (i.e., embedded).

Ratio of bankruptcy forecast

In case of early detection of the deteriorating financial condition of the structure and prevent the occurrence of insolvency, of course, it is possible to prevent the collapse of the business. It is for this case and applying the ratio of forecast of bankruptcy. This method is typically used by analysts to assess the solvency and the General welfare of a company.

What is meant by the word bankruptcy? In accordance with the concept put forward by the arbitral Tribunal, the term is defined as a financial condition of the borrower, when he is not in a position to meet the claims of creditors or failed to pay the payments mandatory.

property for production purposes

The bankruptcy Process performs two key tasks: the elimination of debt and complete recovery and a further strengthening of the company's activities. As a rule, economists are guided by three approaches that can help to identify possible reduction in the solvency of the legal entity. Among them, the calculation of the coefficient of solvency, prediction of coefficients of solvency and the application of criteria unformatted character. These methods allow to detect possible deviations at an early stage and, therefore, accelerate...


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DE: https://tostpost.com/de/news-und-gesellschaft/22125-verh-ltnis-der-eigenschaft-der-mobilit-t-die-formel-analyse-des-finanz.html

ES: https://tostpost.com/es/noticias-y-sociedad/22144-el-factor-de-la-movilidad-de-la-propiedad-la-f-rmula-el-an-lisis-de-la.html

KK: https://tostpost.com/kk/zha-aly-tar-o-am/22113-koefficient-t-yrly-m-l-k-formulasy-arzhyly-zhay-k-y-n-taldau.html

PL: https://tostpost.com/pl/aktualno-ci-i-spo-ecze-stwo/22066-wsp-czynnik-mobilno-ci-nieruchomo-ci-formu-a-analiza-stanu-finansowego.html

PT: https://tostpost.com/pt/not-cias-e-sociedade/22067-o-coeficiente-de-mobilidade-do-im-vel-f-rmula-an-lise-da-situa-o-finan.html

TR: https://tostpost.com/tr/haber-ve-toplum/22121-katsay-s-hareketlilik-zelli-i-form-l-analiz-mali-durumu.html

UK: https://tostpost.com/uk/novini-ta-susp-l-stvo/22095-koef-c-nt-mob-l-nost-mayna-formula-anal-z-f-nansovogo-stanu.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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