2. Asset-liability ratio, also known as debt operating ratio, is used to measure the ability of enterprises to use the funds provided by creditors to conduct business activities and reflect the safety of creditors' loans. By comparing the total liabilities and total assets of an enterprise, it is reflected in the debt ratio of all assets of the enterprise. Asset-liability ratio is the percentage of total liabilities divided by total assets at the end of the period, that is, the proportional relationship between total liabilities and total assets. The asset-liability ratio reflects how much of the total assets are financed by borrowing, and can also measure the extent to which enterprises protect the interests of creditors in the liquidation process.
1. Performance of high asset-liability ratio:
A, shows that the source of funds of the enterprise, more funds from debt, less funds from the owner. High asset-liability ratio and relatively high financial risk may lead to bankruptcy when the cash flow is insufficient, the capital chain is broken and the debt cannot be paid in time. High asset-liability ratio will lead to further increase in financing costs. Banks and investors have certain requirements for asset-liability ratio.
B However, a certain asset-liability ratio can enable enterprises to use debt leverage to improve shareholders' income when the interest rate is lower than the return on investment. It can not truly reflect the quality of assets, let alone the development ability of enterprises, because the capital flow is measured on the cash basis, while the financial standards in the balance sheet are based on the accrual basis.
If the asset-liability ratio is high, it is mainly caused by the increase of accounts payable, but this growth has not led to the loss of corporate reputation and market position, which can increase the effectiveness of corporate cash use. Because funds have time value, the cash originally used for payment during this period can be used for other purposes, even if it is deposited in the bank, there will be interest income!
C. Therefore, it is best to control the asset-liability ratio within a suitable range according to the actual situation of the enterprise, not the higher the better, nor the lower the better. Legal basis: Article 200 of People's Republic of China (PRC) Contract Law, Article 206 of Financial System of Logistics Institutions of Central State Organs, Article 35 of Several Provisions on Financial Management of Financial Holding Companies, Articles 7 and 40 of Administrative Measures for Financial Asset Investment Companies (for Trial Implementation).
2. What is the asset-liability ratio? How much is the best?
Simply put, "asset-liability ratio" is the ratio of total liabilities to total assets. The relevant calculation formula is as follows: asset-liability ratio = total liabilities/total assets * 100%. To a certain extent, it can reflect the degree of repayment guarantee of assets to debts and the degree of financial support of debts to assets.