Solvency analysis includes short-term solvency analysis and long-term solvency analysis.
Short-term solvency is mainly manifested in the relationship between the company's due debts and disposable current assets, and the main measurement indicators are current ratio and quick ratio.
(1) current ratio is the most commonly used indicator to measure the short-term solvency of enterprises.
The calculation formula is: current ratio = current assets/current liabilities.
That is, to repay the short-term debts of enterprises with liquid assets with strong liquidity. It is generally believed that the minimum flow ratio is 2. However, the ratio should not be too high. If it is too high, it means that the current assets of enterprises occupy more, which will affect the efficiency of capital use and the profitability of enterprises. The high current ratio may also be due to the overstock of inventory, excessive accounts receivable, prolonged repayment period and increased prepaid expenses, while the funds and deposits that can really be used to repay debts are seriously insufficient. Generally speaking, business cycle, accounts receivable turnover rate and inventory are the main factors affecting the current ratio.
(2) Quick ratio, also known as acid measurement ratio.
The calculation formula is: quick ratio = quick assets/current liabilities.
Quick assets refer to the balance of current assets after deducting inventory, sometimes deducting prepaid expenses and prepayments. The reason why quick assets deduct inventory is that the liquidation speed of inventory is slow, and there may be problems such as damage and pricing. Prepaid expenses and prepayments are expenses that have occurred and have no solvency, so prudent investors can also deduct them from current assets when calculating quick ratio. An important factor affecting the quick ratio is the liquidity of accounts receivable, which investors can consider together with the turnover rate of accounts receivable and bad debt provision. Generally speaking, the reasonable quick ratio is 1.
Long-term solvency refers to an enterprise's ability to repay debts above 1 year, which is closely related to its profitability and capital structure. The long-term debt capacity of an enterprise can be analyzed by indicators such as asset-liability ratio, ratio of long-term debt to working capital, and interest guarantee multiple.
(1) The asset-liability ratio is the ratio of total liabilities divided by total assets.
For creditor investors, it is always hoped that the lower the asset-liability ratio, the better, so that their creditor's rights are more secure; If the ratio is too high, he will propose higher interest rate compensation. Stock investors are mainly concerned about the level of return on investment. If the corporate return on total assets is greater than the interest rate paid by corporate debt, then borrowing capital will bring positive leverage effect to equity investors, which is conducive to the maximization of shareholders' rights and interests. Reasonable asset-liability ratio is usually between 40% and 60%, and large enterprises are appropriately larger; However, the financial industry is quite special, and it is normal for the asset-liability ratio to be above 90%.
(2) The ratio of long-term liabilities to working capital.
The calculation formula is: the ratio of long-term liabilities to working capital = long-term liabilities/working capital = long-term liabilities/(liquidity-current liabilities).
Because long-term liabilities will be converted into current liabilities over time, current assets must be able to repay the long-term liabilities due in addition to meeting the requirements of repaying current liabilities. Generally speaking, if the long-term liabilities do not exceed the working capital, both long-term creditors and short-term creditors will be guaranteed.
(3) The interest guarantee multiple is the total profit (pre-tax profit) plus the ratio of interest expense to interest expense.
Its calculation formula: interest guarantee multiple = income before interest and tax/interest expense = (total profit interest expense)/interest expense.
Generally speaking, the interest guarantee multiple of an enterprise should be at least greater than 1. The analysis is usually compared with the historical level of the company, so as to evaluate the stability of long-term solvency. At the same time, from the perspective of robustness, the data of the lowest year should usually be selected as the standard.
Second, an overview of enterprise solvency analysis. Who will write it? No, thank you ...
Task occupation pit
Three. Overview of corporate solvency research?
The short-term solvency of a company is mainly determined by the relative ratio of current assets to current liabilities, the structure and liquidity of current assets, the types and term structure of current liabilities, which can be measured by indicators such as current ratio, quick ratio and ultra-quick ratio. At the same time, many factors are not reflected in the financial statements, which will also affect the company's short-term solvency. Investors can mainly analyze the factors that can improve the company's short-term solvency from the following aspects:
(1) Bank loan indicators available to the company. The bank loan line that the bank has agreed but the company has not yet gone through the loan procedures can increase the company's cash at any time and improve the company's ability to pay.
(2) Long-term assets that the company intends to realize soon. For some reason, the company may soon sell some long-term assets as cash to increase the company's short-term solvency.
(3) the credibility of the company's debt repayment. If the company's long-term solvency is always good, that is, the company's credit is good, when the company has temporary difficulties in paying its debts in the short term, the company can quickly solve its short-term solvency by issuing bonds and stocks and improve its short-term solvency. This factor to improve the company's solvency depends on the company's own credit status and the financing environment of the capital market. The above three factors can make the actual solvency of the company's current assets higher than the level reflected in the company's financial statements.
Factors that can reduce the company's short-term solvency mainly include:
(1) contingent liabilities. Contingent liabilities refer to debts that may occur. According to China's Accounting Standards for Business Enterprises, such liabilities are not recorded as liabilities and are not reflected in the financial statements. Only discounted commercial acceptance bills are listed as bills at the lower end of the balance sheet. The remaining contingent liabilities include compensation for quality accidents that may occur when products are sold, litigation cases that may lose the case and economic cases that need compensation. Once these contingent liabilities are confirmed, it will increase the debt repayment burden of the company.
(2) Responsibility arising from guarantee liability. It is possible for a company to provide guarantees for others with some of its current assets, such as providing guarantees for others to borrow money from banks and other financial institutions, and providing guarantees for others to perform relevant economic responsibilities. This kind of guarantee may become a liability of the company, thus increasing the debt repayment burden of the company. These two factors will reduce the company's solvency, or make the company fall into debt crisis.
4. What are the problems in the defense of graduation thesis about "Problems in Accounts Receivable and Countermeasures"?
First, establish early warning control of accounts receivable. Excessive accumulation of accounts receivable will affect the financial situation of enterprises and the solution of normal problems, but it cannot eliminate the negative impact of accounts receivable on all aspects of enterprises. At the same time, the collection and management itself will also bring increased costs and market annoyance to enterprises, prompting enterprises to innovate their thinking, establish early warning management and pay attention to credit policies. At present, in the construction industry, construction enterprises are in a weak position and need to formulate practical credit policies. (1) Establish credit standards and undertake projects cautiously. Enterprises should take the original records and financial reports kept by credit evaluation agencies, stock exchanges, banks, finance and taxation departments, consumer associations, industrial and commercial administrative departments, etc. as the basis of customer credit information, and on this basis, determine the evaluation according to the analysis of customer credit information. With a set of representative indicators that can explain the ability to pay and financial risks, according to the worst year in several years, find out the average of the above ratios of customers with good credit and poor credit respectively, and then measure them with the data of financial statements published by customers. When setting a customer's credit standard, the possibility of default is usually evaluated first. The most commonly used evaluation method is the "5C" system, which represents the judgment factors of credit risk. Personality: it is the primary factor to evaluate the customer's credit and the customer's attitude towards paying debts, and it is mainly recorded by understanding the customer's past payment performance. It is the customer's ability to repay debts, which mainly depends on the customer's assets, especially the quantity and quality of current assets and their proportional relationship with current liabilities. Capital: refers to the financial strength and status of the customer, indicating that the customer may pay the final guarantee. Guarantee (Col) is an asset as a credit guarantee. When the enterprise does not know the details of the customer, the more sufficient the guarantee provided by the customer, the greater the credit security guarantee. Conditions: it is the economic environment, reflecting the customer's solvency. Of course, the credit rating of the customer is 1. Data collection is not as easy as we thought; 2. The authenticity of data is sometimes difficult to control; 3. How to allocate the index weight? The feature analysis method is used for enterprises with relatively small scale, large scale and large debts. This model integrates enterprise projects. The first group is the customer's own characteristics, reflecting six indicators: surface impression, organization and management, product and market development prospects. The second group is the characteristics of customer priority, which refers to the factors that enterprises need to give priority to when selecting customers, reflecting the value of transactions with the customers, including six indicators: transaction profit rate, product requirements, impact on market attractiveness, impact on market competitiveness, guarantee conditions and substitutability. The third group is credit and financial characteristics, which mainly refers to the factors that can directly reflect the credit status and financial status of customers, including payment records, bank credit, profitability, balance sheet evaluation, solvency and total capital. Among these three groups of indicators, financial information is the most difficult to obtain, especially for small-scale enterprises whose finances are not perfect. (3) Establish customer files. On the basis of determining the customer's credit rating and evaluating the customer's credit, establish a credit file for each customer and record its relevant information in detail. Enterprises should usually decide the relevant contents of documents in advance so that the data collection of credit controllers is complete rather than random. The main contents of customer files generally include: business dealings between customers and enterprises and customer payment records; Basic information of the customer, such as all bank accounts of the customer, all real estate information and mortgage status of the customer, all movable property information of the customer, other investments and reinvestments of the customer; The customer's credit standing, such as the main financial indicators reflecting the customer's solvency, profitability and operating ability, the customer's immediate and deferred payment, the customer's actual operation and development trend information, etc. 3. Carefully undertake the project, to prevent the formation of arrears. Construction enterprises should thoroughly investigate the credit status of the construction unit, grasp its credibility and the availability of funds, and strive to avoid projects with low credibility, projects with unfunded funds, and projects with huge advance payment, so as to prevent arrears from being formed as soon as the projects are in place. This is easy to say, especially in the case of insufficient tasks in the construction market. The actual situation is that many construction enterprises dare to make demands and bargain with Party A in order to undertake the project. Construction enterprises are in an increasingly passive position in this unbalanced market. However, in order to reverse this unfavorable situation, we should not blindly and unconditionally sacrifice the interests of enterprises and let some legally operated enterprises become victims of unfair competition. The state should carry out macro-control through legislation, establish a fair and competitive construction market, and let those construction enterprises with strong strength, advanced technology and legal operation come forward, confidently negotiate with Party A to produce excellent construction products and get due remuneration. In this fair market, as a construction enterprise, it should shift its manpower, financial resources and energy from "public relations" to enhancing its strength, improving its construction technology and management, allowing its strength to speak for itself and enhancing its competitiveness. Second, strengthen the daily management of accounts receivable 1. Reasonable division of labor, clear responsibilities. Only by establishing an internal management mechanism of accounts receivable with clear division of labor and mutual coordination can enterprises effectively reduce the unnecessary occupation of accounts receivable and avoid the occurrence of bad debt losses, and at the same time, they can effectively prevent fraud and mistakes in business processing, avoid or timely discover the behavior of criminals intercepting enterprise project funds, and reduce the risk of accounts receivable. Enterprise accounts receivable involve the project management department, engineering department, marketing department, finance department, audit supervision department and other departments, and enterprises must implement the responsibilities related to accounts receivable. 2. Authorization and control of undertaking pioneering projects Although pioneering projects can expand the market share of enterprises, they also increase potential risks. Therefore, for funded projects, the financial department should investigate the credit of customers and control the funded projects within a reasonable range under the authorization of leaders or relevant departments. 3. Establish a bad debt provision system for accounts receivable, and timely handle the accounts of prepaid items. No matter how strict the credit policy is adopted by enterprises, as long as there is commercial credit behavior, the occurrence of bad debt losses is inevitable. Therefore, enterprises should follow the principle of prudence, estimate the possibility of bad debt losses in advance, and establish a system to make up for bad debt reserves, that is, withdraw bad debt reserves. 4. Implement the responsibility system. According to the time value and compensation ability of funds, the assessment of the project management department should be carried out by who handles, who is responsible, who belongs to the pool and who benefits, and the recovery, responsibility and time limit should be implemented to people, supplemented by assessment, rewards and punishments and other means to fully mobilize the enthusiasm of the project management department for collecting money. 5. Strengthen the management of accounts receivable (1) and implement comprehensive supervision. Through the analysis of reconciliation age, average payment cycle and cash payment rate, we can judge whether the customer has the problem of defaulting on accounts, so as to estimate the potential risk loss and correctly estimate the price of accounts receivable, so as to find the problem in time and take countermeasures in advance. (2) Determine a reasonable collection procedure. It is to make customers willing to repay and exert appropriate pressure. That is, recover the account in a legal, rational and legal way. For customers who are overdue for a short time, it is not convenient to bother too much, just call or notify by letter; For customers who can't fulfill the contract on time, they can write a letter for diplomatic collection; Always collect customers who have settled projects and are overdue for a long time; For customers who deliberately refuse to return goods or the above methods are ineffective, they should submit them to relevant departments for arbitration or resort to law. Three. Enterprises that establish credit reporting system should hold credit reporting meetings at different levels regularly, so as to communicate with each other, keep abreast of the situation and minimize credit risks. The credit report meeting can be divided into internal meetings of the credit control department, and its central topics can be: the operation of the credit control department, past work performance and future work planning, usually once every two weeks; The central topics of the joint meeting of credit control units and business departments can be: credit risk analysis and evaluation of major customers and current dangerous customers, analysis of overdue accounts and sales accounts exceeding credit limit, future market outlook and financial information of new customers, etc. , usually once every two months; The central topic of the meeting of the top financial officer or management authority can be: reporting the current operation of credit control, as well as the difficulties encountered and credit risk prediction, the implementation of corporate credit policies and improvement measures. The time is usually once a month. Four, the implementation of financial intermediation, accelerate the realization of accounts receivable. In order to withdraw funds as soon as possible, enterprises borrow or sell unexpired accounts receivable from banks or other financing companies. 1. Debit of accounts receivable. That is, the owner of accounts receivable takes accounts receivable as collateral and obtains a certain amount of loans within a specified period of time. Specifically, it is divided into: (1) general lending: that is, mortgage loans without specific conditions. When the old account is settled, the new account will continue to be used as a debit and credit. (2) Specific creditor's rights: that is, one or more accounts receivable are designated as collateral, and the mortgage relationship will be automatically eliminated with the recovery of these accounts. The way of borrowing accounts receivable, financial institutions have the creditor's rights and recourse of accounts receivable, so this way is generally recognized by financial institutions. 2. Sale of accounts receivable. In other words, the enterprise will transfer the accounts receivable to a financial company that specializes in acquiring accounts receivable, thus obtaining funds. The specific operation is: the enterprise applies for a loan from the finance company before the delivery, and the finance company collects a handling fee according to a certain proportion of the net accounts receivable according to the credit rating of the customer, and deducts it from the money prepaid to the seller. Accounts receivable from customers are paid directly to the financing company and bear the risk of bad debts. The method of selling accounts receivable, because the financing company wants to conduct credit investigation on customers, virtually provides professional consultation for enterprises. Moreover, the information of financing companies is flexible and professional, which is conducive to the recovery of bad debts. In addition, enterprises do not need to bear the responsibility of "contingent liabilities". Therefore, this method is a better financing method for enterprises. 5. Restructure debts and revitalize funds. Sometimes, customers will have difficulties or encounter difficulties, leading to financial difficulties. In this case, if the enterprise takes immediate measures to claim compensation from customers, it may cause greater difficulties for customers, so that customers will never get rid of debts, and enterprises will suffer bad debts, especially for customers with long-term cooperative relations. Therefore, when customers have temporary financial difficulties, both parties should seek ways of restructuring to pay off debts, such as exchanging accounts receivable for equity and replacing useful assets of enterprises with accounts receivable. In short, as long as enterprises take effective measures, the credit risk of accounts receivable can be prevented. Only through scientific prevention can construction enterprises not only expand the market, increase profits, but also minimize the risk of accounts receivable in the market competition, so that enterprises can continue to grow and develop.