Formula: coefficient of financial dependence. Calculation. Factor of financial dependence - the formula on balance

To assess the effectiveness of the management policy of the company management, many methods are used. One of them is the determination of the coefficients of financial stability. This information interests both founders and creditors of the enterprise. Therefore, it is so important for financial analysts. One of the key elements of the presented methodology is the formula. The coefficient of financial dependence will allow estimating the balance structure and improve it in the future period. This is a very useful kind of analysis. The formula of the coefficient of financial dependence is often used by Western analysts. In assessing the company's operating performance, this is one of the important indicators.

General information

Western economists call the Debt Ratio indicator, which reveals the following formula. The coefficient of financial dependence is used to assess the structure of the balance of the enterprise in terms of the distribution of its borrowed funds. In our country, instead of determining the coefficient of financial dependence by balance, the company's autonomy formula is often used. That is, the assessment of the structure of capital sources is made in terms of the availability of own funds.

However, applying the formula for calculating the coefficient of financial dependence, it is possible to estimate liabilities on the reverse side. This indicator is important for investors and testifies to the company's solvency. On the basis of these data, the creditors conclude that it is advisable to provide the loan. Therefore, when carrying out research on the structure of the enterprise's capital , it is necessary to evaluate the dynamics and amount of borrowed funds.

Capital of creditors

The borrowed capital of an enterprise is the amount of its long-term and short-term liabilities to creditors. These two articles of sources of liabilities add up to calculate the coefficient of financial dependence. The balance formula assumes the exclusion from calculations of such items as "Deferred income" and "Reserves for future expenses". Calculation of the formula for the coefficient of financial dependence is carried out for the reporting period without taking into account the future receipts or decreases in the balance currency.

The borrowed capital at reduction of the quantity in structure of balance raises stability of the company. But as the experience of Western manufacturers shows, it should be used by the enterprise to increase profitability.

Calculation formula

The coefficient of financial dependence, the formula for the balance of which is calculated for the operational period, generally looks like this.

КЗав. = Borrowed capital / Assets

In order to find capitalized sources of financing that participate in the formula of the enterprise's dependence factor, the following calculations are made:

ZK = Long-term liabilities + Short-term liabilities - Deferred revenues - Provision for future expenses.

This allows us to determine the long-term dependence of the company's activities on paid sources of capital.

Balance calculation formula

The coefficient of financial dependence of capitalized sources, the formula for calculating which was presented above, is determined using Form 1 of the accounting report. To make calculations, you should apply such lines of the new balance:

КЗав. = (Pp. 1400 + p. 1500-p. 1530-p. 1540) / p. 1700.

This formula of the coefficient of financial dependence on the lines of the balance is relevant from 2011. For periods that were displayed before this period, another interpretation of the articles of the coefficient of financial dependence will be relevant.

Normative value

The coefficient of financial dependence, the formula for calculating which was considered above, must be compared with the normative value. In the economic literature, many authors indicate its value is less than 0.7. However, the Order of the Ministry of Regional Development of the Russian Federation No. 173 of 17 April 2010 regulates the standard of less than 0.8. Otherwise, the enterprise is considered to be dependent on borrowed capital.

It should also be taken into account that the too low value of the indicator indicates that the company misses the chance to expand its activities. After all, borrowed capital allows you to receive a greater profit. It should be noted that the coefficient of financial dependence, the formula for the balance lines of which has been discussed in detail above, should take into account the specific features of the organization's industry.

Complex analysis

To properly assess the financial stability of the enterprise, the coefficient of dependence on the attracted capital is to be considered in the complex. For this, autonomy and leverage are calculated. They are similar to the field of research, but to look at different angles on the indicators allows each of their formula. The coefficient of financial dependence is the reverse definition of autonomy. For this indicator, the ratio of own sources to the balance currency is used. The coefficient of financial leverage will allow to calculate the optimal ratio of sources of liabilities.

Example calculation

Studying by what formula the coefficient of financial dependence is calculated, it is necessary to make a calculation in dynamics. For example, at the beginning and end of the period. Let's assume that long-term liabilities have decreased from 20,486 to 20,009 million rubles. At the same time , the company's short-term liabilities also decreased from 10 347 to 5749 million rubles. Provisions for future expenses were, respectively, 0.1 and 0.13 million rubles. At the beginning and end of the period. The currency of the balance sheet decreased from 81,717 to 77,050 million rubles due to all the changes listed above.

The calculation will be as follows:

КЗав.1 = (20 486 + 10 347 - 0,1) / 81 717 = 0,37.

КЗав.2 = (20 009 + 5749 - 0,13) / 77 050 = 0,33.

It can be concluded that for the year under review the enterprise reduced the number of long-term and short-term liabilities in the structure of the balance currency. This led to a decrease in the amount of aggregate funds. However, this became a positive trend, since the coefficient of financial dependence decreased in the period under review. The structure of liabilities due to these changes has improved. Throughout the study period, the indicator was within the limits of the standard. This indicates the financial sustainability of the research facility.

Having considered the methodology for determining the stability of an enterprise, which allows us to evaluate the formula, the coefficient of financial dependence can help to make a conclusion about the appropriateness of the company's borrowing capital. Having carried out research in dynamics and comparing the indicator with the standard, it will be easy to understand the harmony of the balance sheet liability structure, and also to develop a plan for its improvement in the future period. This makes it possible for the company to obtain a greater profit, as well as its reliability rating among the industry's enterprises.