LIQUIDITY OF THE COMPANY’S BALANCE SHEET AND THE METHOD OF ITS DETERMINATION

Анотація

The article explores the theoretical and methodological basis of the analysis of the liquidity of the company’s assets and liabilities. The economic essence of the liquidity of the balance sheet for the enterprises has been determined. The most common methods of analyzing the liquidity of the company's balance sheet have been clarified and analyzed. The main shortcomings of traditional ways of determining the level of liquidity of economic assets and sources of their formation in the enterprise have been revealed. An alternative concept has been proposed to determine the level of liquidity of the company's assets and liabilities, which contains weighting factor for each group of assets and liabilities, depending on their level of liquidity, using the final integrated liquidity indicator. An alternative method of determining the level of liquidity of the balance sheet has been tested on the example of the Company “Conti” during 2016-2019. Balance sheet liquidity is the ability of the enterprise to convert its assets into payment means to repay current and long-term liabilities in an acceptably short period of time. The level of liquidity of the balance sheet of the enterprise is determined by some liquidity ratios. According to the standard methodology, the final liquidity indicator is the general liquidity indicator, the calculation of which involves the grouping of assets on the basis of liquidity; liabilities – the urgency of payment. However, this indicator doesn’t take into account the degree of liquidity of asset groups and the urgency of paying groups of liabilities, which leads to distortions in its values. An alternative methodology for determining the level of liquidity of the company’s balance sheet is the calculation of the single integral liquidity indicator. The principle of calculating this indicator is based on the calculation of the general liquidity indicator with the introduction of additional groups of assets and liabilities, as well as weight coefficients for each group. The main advantage of using an alternative technique is a higher accuracy of determining the level of liquidity of the enterprise balance sheet, the main drawback is the increase in the complexity of calculations.

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