Guide
1
To evaluate the liquidity of the enterprise need to divide assets and liabilities of the organization on certain groups.

Assets are divided into 4 groups:
- A1 - all assets that can be called absolute liquidity (cash, bank accounts and short-term investments);
- A2 - assets that can be implemented quickly (shipped and finished products, as well as receivables);
- A3 - raw materials and semi-finished inventory - all that requires a sufficiently long time to convert into cash;
- A4 - illiquid assets (fixed assets, unfinished construction projects, as well as all long-term financial investments of the organization).

Liabilities similar assets are
also divided into 4 groups:
- P1 - term liabilities, such as loans for which repayment fell due;
- P2 - Medium-term liabilities - short-term loans and credits;
- P3 - long-term loans;
- P4 - capital that is always at the disposal of the organization.
2
Begin analysis of liquidity enterprises with balance check.The balance of the organization can be considered completely liquid only if the following are true all 4 inequalities:

1. A1 & gt;P1;
2. A2 & gt;P2;
3. A3 & gt;P3;
4. A4
3
calculated value (current liquidity) which indicates a positive solvency of the organization in the near future at the time of review time:

TL (current liquidity) = Σ (A1, A2) - Σ (P1,P2).
4
evaluate future liquidity of the company based on future payments and receipts.

PL (liquidity perspective) = A3 - A3.
5
determine the coefficients that allow to judge the solvency of the organization at the moment, as well as in the near and longer term.

Ktl (current ratio) = Σ (A1, A2, A3) / Σ (P1, P2)

This ratio indicates the extent to which existing obligations provided asset organization.In cases where the value is less than 1, say about excess of liabilities over assets.

Qr (Quick Ratio) = Σ (A1, A2) / Σ (P1, P2)

This assessment of liquidity of the enterprise gives an indication of what part of the organization is able to fulfill the obligations in an emergency, when there is no opportunity to sell stocks.Economists are advised to keep this parameter greater than the value of 0.8.

Kal (cash ratio) = A1 / Σ (P1, P2)

This parameter indicates how much of the debt the company is able to pay off in the near future.The coefficient must not fall below the value of 0.2.
Sources:
  • More about solvency and liquidity
  • liquidity of the company article