There are a large number of ways to evaluate the effectiveness of the research object. For credit institutions, it is important to know the data from the field of solvency, as well as the stability of the organization’s finances. Investors are more interested in finding out what prospects a particular company can guarantee for their investments. To determine from the economic point of view the correctness of the decisions of the company’s management, a set of techniques is used. One of the stages of evaluation is the coefficient of maneuverability. It is used by financial analysts to determine and optimize capital in the field of its structure.
General meaning
The coefficient of maneuverability is called an indicator that reflects part of its working capital in the structure of self-financing sources. This is a fairly important criterion for evaluating articles. asset and liability balance.
The coefficient of maneuverability of equity capital is monitored in dynamics, since its abrupt changes can reveal significant shortcomings in the structure of financing the enterprise. Smooth, gradual growth is considered ideal for the presented indicator.
Belonging to a group of assessment methods financial stability ratio maneuverability of own working capital allows us to draw conclusions about past results of the company's operations, as well as adjust future development.
Working capital
The flexibility ratio of own funds depends on the indicator of the amount of resources in circulation.
It represents the amount of resources that was allocated from the capital of the founders (statutory, accumulated, Reserve capital) in current assets of the enterprise. The considered indicator makes it clear how much the company's own funds are in stocks, receivables and cash.
For sustainable operation, an enterprise should channel 1/3 of these sources of financing into circulation. That is, these are the means of self-financing that the company directs to receive products during one production cycle. The faster the turnover of these assets occurs, the more profit the company receives in the period under review.
Calculation formula
The formula for the maneuverability coefficient will make it clear the essence of the considered indicator. This is the ratio between the company's own working capital and its own capital. The maneuverability coefficient, the formula of which is presented below, is calculated as follows:
KM = working capital / equity
If you present the indicator in the form of articles of Form No. 1 of the accounting report, then the formula will look like this:
KM = (p. 1300 - p. 1100) / s. 1300
However, it should be remembered that if the enterprise has long term duties, then they must be taken into account in the calculations. The maneuverability coefficient, the formula of which was considered above, will have the following form, according to Form No. 1:
KM = (p. 1300 + p. 1400 - p. 1100) / s. 1300
Normative
The coefficient of maneuverability of equity is determined by one of the methods presented above, and correlates with the normative indicator.
Logically from the formula it follows that the greater the value of the desired parameter, the higher the financial stability. However, too high a value of the indicator may indicate a sharp increase in long-term liabilities and a decrease in company independence from a financial point of view.
The presented coefficient should be in the range of 0.3-0.6.If it is of less or greater importance, the valuation technique will reveal a high risk of insolvency due to the financial dependence of the company.
The assessment should also be carried out in dynamics with a mandatory consideration of the structure of liabilities and balance sheet assets.
Correct coefficient determination
The maneuverability coefficient, like many other indicators, should be estimated based on a comparison of data from other enterprises in the industry.
For each sphere of economic activity, its own optimal values may take place. For the correct conclusion about the situation in the financial sector, the company needs to analyze the same indicator among competitors.
For this, the required value is determined for each enterprise operating in the industry, and then the arithmetic mean value is found. The maneuverability coefficient of the own funds of the research object should be compared with the obtained indicator for the industry.
The combination according to the OKVED code will help to identify enterprises similar to the object of research. Evaluate the results should also be in the dynamics. Such an approach to the object of study will make it possible to make a correct assessment of the implementation of the financial and economic policy and strategy of the enterprise.
Calculation Example
The maneuverability coefficient, the value of which should be correlated with the industry average, is calculated quite simply.
For this, it is necessary to take for calculation lines 1100, 1300, 1400 of Form No. 1 of the accounting report for several periods. It is better to have at least three.
Suppose, non-current assets of the enterprise in the 1st period was 7682 million rubles .; in the second - 7722 million rubles; in the third - 7812 million rubles. Moreover, equity in the balance sheet amounted to 8235 million rubles in the 1st period; in the second - 8354 million rubles; in the third - 8532 million rubles. Long-term liabilities amounted to 1,364 million rubles in the 1st period; in the second - 1234 million rubles; in the third - 1338 million rubles.
The calculation will be as follows:
1 period = (8235 + 1364 - 7682) / 8235 = 23%.
2 period = (8354 + 1234 - 7722) / 8354 = 22%.
3 period = (8532 + 1338 - 7812) / 8532 = 24%.
Decoding of the obtained indicators
The maneuverability coefficient of functioning capital in the considered example should be interpreted as follows. The analyzed indicator throughout the entire period was below normal, but it was stable. The mismatch with the required value was caused by a large number of retained earnings in the equity structure.
To give a more accurate assessment of the presented indicator, an industry analysis of the maneuverability coefficient should be carried out, as well as some features of the company’s functioning should be clarified. Its role in the country's economy, the availability of financial support from the government also plays an important role in the assessment process. You should also conduct a series of calculations of other indicators of financial stability, profitability and liquidity. This will provide an opportunity to draw adequate conclusions about the effectiveness of the core business of the enterprise.
Having become acquainted with such a concept as the coefficient of maneuverability, we can conclude that it plays an important role in the process of assessing the financial stability of any company. Compliance with its standards, industry indicators, as well as progressive increase is evidence of a positive trend in the financial and economic activity of the object of study.
