The debt ratio to other organizations (K6) is calculated as the ratio of the amount of liabilities in the lines “suppliers and contractors”, “bills payable”, “debt to subsidiaries and affiliates”, “advances received”, “other creditors” to average monthly revenue. All these balance sheet liability lines functionally relate to the organization’s obligations to direct creditors and its counterparties:

K6 =

The share of the organization's obligations to counterparties amounted to 3.22 of the average monthly revenue.

The coefficient of debt to the fiscal system (K7) is calculated as the ratio of the amount of liabilities in the lines “debt to state extra-budgetary funds” and “debt to the budget” to average monthly revenue:

K7 = , K7 =

The internal debt ratio (K8) is calculated as the quotient of dividing the amount of liabilities by the drains “debt to the organization’s personnel”, “debt to participants (founders) for payment of income”, “deferred income”, “reserves for future expenses”, “other short-term liabilities” for average monthly revenue:

K8 =

In calculating this indicator, the indicators of debt to personnel and debt to the founders for the payment of income, which can be carried forward to subsequent periods in accordance with the constituent documents and accounting policies of the enterprise, are of significant importance. In other words, these payments can be made in unequal shares during the reporting period and accumulate.

The overall degree of solvency and the distribution of the indicator by type of debt represent the value of liabilities related to the organization’s average monthly revenue. In addition, these indicators determine the average time frame within which an organization can pay its creditors, provided that the average monthly revenue received in a given reporting period is maintained, if no current expenses are incurred, and all proceeds are used for settlements with creditors.

The degree of solvency for current obligations (K9) is defined as the ratio of the organization’s current borrowed funds (short-term liabilities) to average monthly revenue:

K9 =

This indicator characterizes the situation with the current solvency of the organization, the volume of its short-term borrowed funds and the timing of possible repayment of the organization's current debt to its creditors.

Our organization can pay off its short-term obligations, according to calculations, in five months. This tells us about the average solvency of the organization.

The coverage ratio of current liabilities with current assets (K10) is calculated as the ratio of the cost of all current assets in the form of inventories, receivables, short-term financial investments, cash and other current assets to the current liabilities of the organization:

K10 =

K10 =

Current liabilities are covered by the current assets of the enterprise by more than 1.5 times. In addition, the indicator characterizes the payment capabilities of the organization at the level of repayment of all receivables (including “irrecoverable”) and the sale of existing inventories (including illiquid assets).

Own capital in circulation (K11) is calculated as the difference between the organization’s own capital and its non-current assets:

K11 = page 490 - page 190 (f No. 1)

K11 = thousand rubles.

The presence of equity capital in circulation (own working capital) is one of the most important indicators of the financial stability of an organization. A negative value shows that current assets are mainly formed from borrowed funds.

The share of equity capital in working capital (K12) is calculated as the ratio of equity capital in turnover to the total capital

K12 = , K12 =

The indicator characterizes the ratio of own and borrowed working capital and determines the degree of provision of the organization's economic activities with its own working capital necessary for its financial stability. The example shows that the organization’s own funds do not cover the cost of the organization’s current assets, which tells us about the inability to provide production with working capital at the expense of its own capital, without resorting to loans and credits.

The coefficient of autonomy (financial independence) (K13) is calculated as the ratio of equity capital to the total assets of the organization:

K13 = , K13 =

The coefficient of autonomy, or financial independence, is determined by the ratio of the value of the organization's capital and reserves, cleared of losses, to the amount of the organization's funds in the form of non-current and current assets. This indicator determines the share of the organization’s assets that are covered by its own capital (provided by its own sources of formation). The remaining share of assets is covered by borrowed funds. Consequently, our organization covers half of its assets with its own capital.

Indicators of efficiency in the use of working capital (business activity), profitability and financial results (profitability)

The working capital ratio (K14) is calculated by dividing the organization’s current assets by average monthly revenue and characterizes the volume of current assets expressed in the organization’s average monthly income, as well as their turnover:

K14 =

This indicator evaluates the circulation rate of funds invested in current assets.

The indicator is supplemented by working capital coefficients in production and calculations, the values ​​of which characterize the structure of the organization's current assets.

The debt ratio is an indicator of the financial condition of an enterprise, without which neither managers of organizations, nor owners of companies, nor persons wishing to invest their own funds in any business can do without it in financial transactions. So, what is it for, and how to calculate the coefficient? This article will tell you about these intricacies of small business.

General information

Enterprise economists analyze the financial activities of an organization. One of the important aspects of accounting is the company's outstanding debt. The task of production accountants is to monitor the dynamics of the organization’s material situation, and, as a result, to clarify the conditions for productive management of capital turnover.

The debt ratio is the main financial indicator for studying trends that adversely affect the state of an economic entity and contributes to their immediate elimination. When calculating it, information about the balance sheet and financial statements is taken into account.

The debt ratio is used by creditors to assess the degree of risks, by company managers to identify the effectiveness of management decisions made, and by investors to obtain information about the probable profitability of the business and possible profits.

Thanks to the calculation of the coefficient, those interested in this will be able to compare different periods of productivity of the same organization, economic sectors, firms, as well as analyze the results of the activities of the enterprise entity, comparing them with the statistical average.

Depending on the purposes of calculating the debt ratio, experts select a different approach to its interpretation.

Calculation of the indicator

The formula for calculating the indicator looks like this:

KZ = SZ / SA,

where KZ is the debt ratio, SZ is the total debt of the institution, and SA is its total assets.

The loan amount (divisible in the mentioned formula) is a set of indicators that is displayed in the following balance sheet lines:

• 590 – the total volume of long-term debts with a repayment period of one year or more;
• 690 – a set of short-term debts of the organization, the repayment period of which is calculated for a period of less than a year.

The denominator in this formula is the amount displayed in balance sheet line 699. It is the totality of borrowed funds and is equal to the amount of assets according to accounting standards.

In the balance sheet, the formula for calculating the debt ratio is displayed as follows:

KZ = (590 + 690) / 699.

Interpretation of calculations

The standard value of the debt indicator, according to the formula described above, can range from 0 to 1.

The indicator “0” informs about the stable financial condition of the enterprise and indicates that the amount of the organization’s debt is significantly less than the amount of its assets.

A debt ratio of “0.5” is considered acceptable, although not for all economic areas.

A debt ratio close to 1 indicates a high dependence of production on its creditors. This financial situation may result in a lack of working capital for the firm and immediate short-term borrowing.

The coefficient “1” indicates the financial insolvency of the company and, as a consequence, its insolvency. Knowing about this situation, the founder of the company is obliged to apply to the court for bankruptcy in accordance with Law No. 127-FZ.

Individual cases

In addition to the debt ratio, there are other indicators of the current state of production.

Indicator of debt on loans and credits from banks (K5)

It can be calculated by dividing the totality of long-term (line 590) and short-term loans of the company by the amount of average monthly income. Current liabilities are the amount of bank loans and other debts due within a year. They are indicated in the balance sheet line 610.

Debt indicator (K6)

This is the ratio of the amount of the company's accounts payable to other organizations to the amount of average monthly income. The amount of creditor loans includes the sum of the components indicated in lines 621 (debt to the supplier for delivered products or services), 622 (the totality of finance issued to lenders as a guarantee), 623 (debts associated with branches of the enterprise), 627 (received in account for future deliveries of products advances), as well as 628 (other liabilities).

Public system debt indicator

This coefficient is calculated by dividing the total debts to various government agencies by the average monthly income. Moreover, the first value represents the sum of all unpaid budget contributions (line 626 in the balance sheet), as well as debts to state funds (line 625).

The debt ratio is an important indicator of an enterprise's financial turnover and helps maintain a balance between the enterprise's own and attracted capital. With its help, the organization will be able to avoid problems with financing without significant losses.

Debt ratio - balance sheet formula This analytical indicator contains a special set of components. The varieties of this coefficient and the structure of balance sheet indicators used in their calculation will be discussed in our material.

Formula for Calculating Debt Ratio

Debt ratio (DR) is one of the calculated indicators used in analyzing the financial condition of a company. It reflects the share of assets formed as a result of attracting debt financing and is calculated using the formula:

KZ = (KZ + DZ) / A,

(KZ + DZ) - the total amount of debt of the company;

A is total assets.

Calculation formula K Z, presented through balance lines, has the following form:

K Z = (page 1400 + page 1500) / page 1600.

For details of balance sheet lines, see the article.

The following range of KZ values ​​is considered normal:

0 ≤ KZ ≤ 0.5.

If KZ is close to zero, this indicates that the company has extremely insignificant debt obligations in comparison with its equity capital. This is one of the indicators of financial stability.

When the coefficient approaches 1, it indicates that almost all of the equity capital is formed from borrowed funds. In most cases, this value of KZ shows a high degree of dependence on counterparties and creditors, which can negatively affect the financial stability of the company in the event of unfavorable developments.

Regular calculation of KZ allows you to timely track negative trends in the financial situation of the enterprise and take measures to eliminate them.

How is the financial stability of a company analyzed? learn from the material .

Types of debt ratios (current, short-term, etc.)

The debt ratio, discussed in the previous section, is important in assessing the overall financial condition of the company, since its calculation uses a general (total) debt indicator. For a more detailed analysis, it is necessary to calculate additional debt ratios, for example:

• Current debt ratio (K TZ)

K TZ shows the share of short-term debt in the total amount of capital and is calculated using the formula:

K TZ = TZ / VB,

TZ - the total amount of current debt;

VB is the balance sheet currency.

• Short-term debt ratio (K KZ)

The KZ reflects the share of the company’s debts with a maturity of less than 12 months in the total debt structure:

To short circuit = short circuit / (short circuit + short circuit),

КЗ — volume of short-term debt;

(KZ + DZ) - the sum of the company’s short-term and long-term debts.

• Financial leverage ratio (K FL)

KFL demonstrates the degree of dependence of the company on external sources of borrowing and is calculated (like the above coefficients) according to the indicators reflected in the balance sheet:

K FL = ZK / SK,

ZK - borrowed capital;

SK - equity capital.

For the method of calculating the SC indicator, see the material

When conducting financial analysis, financial debt ratios are used together with other ratios, which significantly expands the capabilities of the analysis and allows you to assess the financial condition of the company from various positions.

Get acquainted with the algorithms for calculating various coefficients using the materials posted on our website:

• ;
• .

Results

The debt ratio shows the share of assets formed as a result of attracting debt financing. This coefficient reflects the degree of financial stability of the company, and its standard value ranges from 0 to 0.5.