The main indicators of short-term solvency analysis are: current ratio, quick ratio and cash current debt ratio.
1, current ratio = current assets ÷ current liabilities. Generally speaking, the higher the current ratio, the stronger the short-term solvency of enterprises and the more secure the rights and interests of creditors. According to the long-term experience of western enterprises, it is generally considered that the ratio of 2: 1 is more appropriate.
2. Quick ratio = quick assets/current liabilities
Traditionally, western enterprises think that the quick ratio is 1, which is the safety standard. The so-called quick assets refer to the balance of current assets after deducting poor liquidity, unstable inventory, prepaid expenses and losses of current assets to be handled. Therefore, the quick ratio is more accurate than the current ratio, which can reliably evaluate the liquidity of enterprise assets and the ability to repay short-term debts.
3. Debt-to-cash ratio = annual net operating cash flow ÷ current liabilities at the end of the year × 100%: this indicator is to examine the actual solvency of the enterprise from the dynamic perspective of cash inflow and outflow.
Extended data:
Quick ratio of corporate solvency:
1, the quick ratio indicates how many quick assets there are per 1 yuan of current liabilities as the guarantee of repayment, which further reflects the degree of protection of current liabilities.
2. Formula: quick ratio = (total current assets-net inventory) ÷ total current liabilities. Generally speaking, the bigger the index, the stronger the company's short-term solvency, usually the index is around 100%. 1998 The average value of this index in Shanghai and Shenzhen stock markets is 153.54%.
3. When using this indicator to analyze the company's short-term solvency, we should comprehensively analyze the scale of accounts receivable, turnover speed and the scale of other receivables, as well as their liquidity.
4. Because the liquidity of current assets such as prepayments and prepaid expenses is poor or cannot be realized, if these indicators are too large, the influence of these items should also be deducted when analyzing the company's short-term solvency by using current ratio and quick ratio.
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