It is not uncommon for entrepreneurs to go along with outwardly tempting offers, apply for a loan for doing business, guided by faith in their company and hope for the market, without paying due attention to a thorough calculation of their financial strategy. Without noticing it, they put their business at risk of insolvency. Sometimes this happens even with experienced businessmen and large companies (hello, Transaero!).

Others, on the contrary, take a conservative position: “No loans. Develop only at our own expense, so as not to end up in a debt hole and not lose business. It's very good for financial stability companies, but can sometimes be a deterrent to market share growth.

A more mature position is that a loan is one of the financial instruments that, taking into account a number of restrictions (the stage of development of a company, industry, market maturity, a specific market situation), can bring a positive effect for business development. But all these factors need to be known and taken into account when making a decision.

Loan for starting a business

First of all, I will tell you about a loan for starting a business. It is obvious that a novice entrepreneur has a higher risk of not achieving profitability and sufficient profitability to repay the debt. Even in the hands of an experienced entrepreneur, a new business project does not guarantee success and high profits at the initial stage. In addition, the excess in the capital structure of borrowed money, on which interest is constantly charged, only increases the risk of bankruptcy of a new enterprise.

Banks are well aware of all these "aggravating circumstances" - and either do not lend to a business at the start, or set strict conditions for its format (for example, a franchise), or offer ultra-high rates. Some business owners, in order to get money at a lower interest rate, draw up consumer loans for themselves as individual hoping to quickly pay off the debt. This is not always possible.

Advice from experienced entrepreneurs and financiers: do not start a business with credit money. Only your own savings or partners and investors will do.

Credit as a financial lever

Consider the situation with classical lending to a company (not project financing and not leasing), which is already successfully operating on the market.

The company has a stable return on equity, for example, at the level of 15% per month. That is, for 1 million rubles of capital, she makes a profit of 150 thousand rubles a month. The annual profit from this capital is 1.8 million rubles. The company's management, after analyzing the market, found out that the existing demand and competition make it possible to scale the business. To do this, the company attracts credit funds in the amount of 1 million rubles at 20% per annum. By maintaining the existing return on equity, the company receives an additional 150 thousand rubles of monthly profit before interest payments. This is, as we have already calculated, 1.8 million per year.

Now let's calculate how profitable this loan is. If the loan is taken for a year, the company will need to repay 1 million debt and 200 thousand "interest". 1 million received from the bank + 1.8 million profit - 1.2 million, which the company returns = 1.6 million remaining at the end of the year.

Thus, the company for a year of work will not only repay the debt with interest, but also earn an additional 133,333 rubles per month.

This, albeit very exaggerated, example shows that a loan is beneficial when the interest rate is much lower than the norm. operating profit of the enterprise (in our case it is 20% versus 180%). In simple terms, the company makes money faster than interest is charged on the amount received from the bank. This effect of the use of borrowed funds is called financial leverage.

Count seven times, take a loan once

If you are looking to raise a business loan, there are a number of things you need to consider before making a decision.

Firstly, honestly answer two questions: what exactly will external borrowing give me and can this benefit be measured in absolute monetary terms?

Secondly, you need to know the market and be sure that in order to scale the supply there is a demand and the cost of attracting it is known. Even better, before investing in infrastructure, conduct testing, collect applications, etc. Experienced companies never strive to meet the demand for 100% if the competition in the market allows it. Their offer is always a bit scarce. They take this into account when expanding capacity.

Thirdly, you need to know the return on assets of your business. Some hope that by increasing the business, including through borrowed money, they will achieve increased profitability due to economies of scale. It must be remembered that the scale effect does not work in 100% of cases.

It is also necessary to focus on the duration of production cycles (rate of income generation). The term of the loan must significantly exceed the term of the production cycle, so that the resulting profit allows you to repay the debt.

Fourth, you need to clearly understand all the conditions that the financial institution offers. Not all entrepreneurs can determine the real cost of a loan and calculate the effective rate. Just like in the consumer market, banks include various commissions in the loan agreement, which increase the real cost of the loan. If you are faced with a complex, intricate scheme, it is better to invite a consultant or refuse the proposed deal.

Fifth Always have a "Plan B" in case things don't go the way you planned. For example, a new player suddenly appears on the market, the appearance of which will be an unpleasant surprise for you - especially if he starts a price war.

Only on the basis of all the data collected - independently or with the help of a professional - carry out a calculation of the effectiveness of the use of borrowed funds. Do not forget that getting a loan is not enough, you also need to competently manage the money received, direct it to something that will ensure profit growth. After signing the loan agreement, you can be absolutely sure of only one thing: the money will have to be returned in any case, and the profit must still be received, and no one is immune from force majeure.

How much to take?

Financial leverage allows you to increase profitability equity, however, as the share of borrowed capital increases, the risk of loss of financial stability increases. In addition, banks raise interest rates on loans for companies that have a high debt-to-earnings ratio. Therefore, when planning a loan, focus only on the amount that you calculated when drawing up financial model.

Many have probably heard that large companies, especially those that are actively developed through lending (for example, retail chains) the share of borrowed funds in overall structure capital can be up to 70%, and debt exceed annual profit by 3-4 times. Small and medium businesses should not be guided by these indicators. A corporation always has more opportunities for financial maneuver: issuing bonds, selling shares, etc. In addition, debt obligations can be concentrated on one company that is part of the group. Small and medium-sized businesses do not have such opportunities.

In the article, we touched upon the issues of business lending related to investments in development, but did not consider situations when a loan is required to cover a cash gap: when a company runs out of money in its accounts and cannot pay off its obligations.

Such situations can be associated both with a delay in payment from customers, and with errors in financial management. Of course, in this case, attracting a loan is rather a necessary evil, and you should try to avoid a cash gap. You can timely see the upcoming cash gap by setting up a forecast for the movement Money in Excel or using financial management services.

The purpose of the analysis of borrowed funds is to study their condition, efficiency of use and determine the need for their attraction or repayment, in order to increase financial stability and liquidity.

Tasks of analysis of borrowed funds:

Assess the amount and structure of borrowed funds of the enterprise;

Analyze the dynamics of borrowed funds in general and by their types;

Evaluate the placement of borrowed funds in the assets of the enterprise;

Calculate the share of borrowed funds in the total amount of capital and identify the trend of its change over the analyzed period;

Find the ratio of borrowed and own funds enterprises.

Sources of analysis: "Balance sheet"; “Profit and Loss Statement”, “Appendix to the Balance Sheet and Profit and Loss Statement”, analytical accounting accounts, etc.

The growth rate of production volume and sales of products should be higher than the growth rate of debt to suppliers and contractors, this fact will indicate the growth of own working capital at the enterprise and the growth of the timely ability to repay the corresponding payments. The amount of receivables and payables must also correspond to each other, then with the timely fulfillment of obligations of debtors to the enterprise, it will be possible to timely repay debts to their creditors. The balance of funds must correspond to the amount of upcoming payments by their due dates.

Further, studying the attracted funds of the enterprise, it is necessary to determine the movement of borrowed funds by their types, using financial reporting"Supplement to the balance sheet and income statement". Reducing the share of borrowed capital at the expense of any of its types helps to strengthen the financial independence of the enterprise from external sources financing. Based on these data, the amounts of borrowed funds received and repaid for the reporting period are determined, and the coefficients of receipt and repayment are calculated in general and by their types.

The coefficient of obtaining borrowed capital shows what is the share of received borrowed funds in their total amount at the end of the year.

It is determined by dividing the amount received by the balance of borrowed funds at the end of the reporting period:

The repayment ratio of borrowed funds shows what is the share of paid borrowed funds for the reporting period in their total amount at the beginning of the year. It is determined by dividing the amount of borrowed funds spent (used) in the reporting year by the amount of the balance of borrowed funds at the beginning of the period:

A positive phenomenon, from the point of view of the financial stability of the enterprise, is the excess of the repayment ratio compared to the borrowing ratio.

IN foreign practice the ratio of borrowed and equity capital is one of the most important indicators for determining the risk for creditors. In this regard, in some cases, lenders, in order to be completely sure of the return of funds provided on credit, require the signing of a loan agreement, which should indicate the excess of equity capital compared to borrowed capital.

Lenders and shareholders are interested in the solvency of the company, in its ability to pay interest on time and pay the nominal value of the obligation at the maturity date. Solvency is assessed by the following indicators:

The concentration ratio of attracted capital characterizes the share of borrowed funds in the property of the enterprise, the higher this ratio, the lower the level of financial stability of the borrower and the higher the risk of repayment of loans. The recommended value of this indicator is within 0.4 - 0.5 (40% - 50%) no more.

ZK - borrowed capital (lines 1400+1500)

VB - property of the enterprise (line 1700)

Borrowing ratio in current assets- reflects the share of borrowed funds in the current assets of the enterprise and shows the degree of financial independence of the enterprise from borrowed funds. The lower the level of this ratio, the higher the creditworthiness of the enterprise. In practice, it is considered normal when this coefficient is 0.4 or less, i.e. borrowed capital in working capital should be no more than 40%.

TA - current assets of the enterprise (p. 1200)

The coefficient of participation of borrowed funds in covering inventories characterizes the share of short-term debt in covering inventories, which affects the creditworthiness and solvency of the enterprise. The share of borrowed funds to cover reserves should be no more than 30%, then the company will be less dependent on creditors and suppliers. With absolute financial stability, the share of own funds in inventory should be 100%.

KPC - short-term borrowed capital (line 1500)

Inventory - inventory and costs (lines 1210+1220)

How stable or unstable this or that enterprise can be said, knowing how strong the company's dependence on borrowed funds, how freely it can maneuver its own capital, without the risk of paying extra interest and penalties for non-payment, or incomplete payment of accounts payable on time.

This information is important primarily for contractors (suppliers of raw materials and consumers of products (works, services)) of the enterprise. It is important for them how strong the financial security of the uninterrupted process of the enterprise with which they work.

As one of the models for determining the financial stability of an enterprise, the following can be distinguished:

Financial stability- this is the ability of the enterprise to maneuver means, financial independence. It is also a certain state of the company's accounts, which guarantees its constant solvency. The degree of stability of the state of the enterprise is conditionally divided into 4 types (levels).

1. Absolute stability of the enterprise. All loans to cover reserves (IR) are fully covered by own working capital (COC), that is, there is no dependence on external creditors. This condition is expressed by the inequality: 33< СОС.
2. Normal stability of the enterprise. Normal sources of coverage (NIP) are used to cover stocks. NIP \u003d SOS + ZZ + Settlements with creditors for the goods.
3. Unstable state of the enterprise. In order to cover reserves, additional sources of coverage are required to cover the normal ones. SOS< ЗЗ < НИП
4. Crisis state of the enterprise. NPC< ЗЗ. В дополнение к предыдущему условию предприятие имеет кредиты и займы, не погашенные в срок или просроченную кредиторскую и дебиторскую задолженность.

Equity concentration ratio

Determines the share of funds invested in the activities of the enterprise by its owners. The higher the value of this ratio, the more financially stable, stable and independent of external creditors the enterprise.

The equity concentration ratio is calculated using the following formula:

Coefficient of financial dependence.

The coefficient of financial dependence of the enterprise means how much the assets of the enterprise are financed by borrowed funds. Too much borrowing reduces the solvency of the enterprise, undermines its financial stability and, accordingly, reduces the confidence of counterparties in it and reduces the likelihood of obtaining a loan.

However, a too large share of own funds is also unprofitable for the enterprise, since if the profitability of the enterprise's assets exceeds the cost of sources of borrowed funds, then due to a lack of own funds, it is beneficial to take a loan. Therefore, each enterprise, depending on the field of activity and the tasks set at the moment, needs to establish for itself the normative value of the coefficient.

The financial dependency ratio is calculated using the following formula:

where SC - WB equity - balance sheet currency

The coefficient of maneuverability of equity capital.

The flexibility coefficient characterizes what share of sources of own funds is in a mobile form and is equal to the ratio of the difference between the sum of all sources of own funds and the cost of non-current assets to the sum of all sources of own funds and long-term loans and borrowings.

It depends on the nature of the enterprise's activity: in capital-intensive industries, its normal level should be lower than in material-intensive ones.

Equity flexibility ratio is calculated using the following formula:

where SOS - own working capital SK - own capital

Debt capital concentration ratio

The debt capital concentration ratio is essentially very similar to the equity concentration ratio ()

The debt capital concentration ratio is calculated using the following formula:

where ZK - borrowed capital (long-term and short-term obligations of the enterprise) WB - balance sheet currency

Long-term investment structure ratio

The coefficient shows the share of long-term liabilities in the volume of non-current assets of the enterprise.

A low value of this ratio may indicate the impossibility of attracting long-term loans and borrowings, while a too high value either indicates the possibility of providing reliable collateral or financial guarantees, or a strong dependence on third-party investors.

The structure coefficient of long-term investments is calculated according to the following formula:

where DP - - long-term liabilities () VOA - non-current assets of the enterprise

Long-term borrowing ratio

The ratio of long-term borrowed funds is defined as the ratio of long-term loans and borrowings to the sum of sources of own funds and long-term loans and borrowings.

The coefficient of long-term attraction of borrowed funds shows what part of the sources of formation of non-current assets at the reporting date falls on equity, and what part on long-term borrowed funds. A particularly high value of this indicator indicates a strong dependence on attracted capital, the need to pay significant amounts of money in the future in the form of interest on loans, etc.

The long-term borrowing ratio is calculated using the following formula:

where DP - long-term liabilities () SC - equity of the enterprise

Debt structure ratio

The indicator shows from what sources the borrowed capital of the enterprise is formed. Depending on the source of capital formation of the enterprise, it can be concluded how the non-current and current assets of the enterprise are formed, since long-term borrowed funds are usually taken for the acquisition (restoration) of non-current assets, and short-term loans for the acquisition of current assets and the implementation of current activities.

Debt capital structure ratio is calculated using the following formula:

where DP - long-term liabilities () ZK - borrowed capital

Debt to equity ratio

The more the coefficient exceeds 1, the greater the dependence of the enterprise on borrowed funds. The permissible level is often determined by the operating conditions of each enterprise, primarily by the speed of turnover of working capital. Therefore, it is additionally necessary to determine the turnover rate of inventories and receivables for the analyzed period. If accounts receivable turn around faster than working capital, which means a rather high intensity of cash flow to the enterprise, i.e. as a result - an increase in own funds. Therefore, with a high turnover of material working capital and an even higher turnover of receivables, the ratio of own and borrowed funds can be much higher than 1.

The ratio of own and borrowed funds is calculated according to the following formula:

where SC is the equity capital of the enterprise ZK is borrowed capital

Financial stability ratio, ratio, financial stability, Equity concentration ratio, capital, capital concentration, financial dependence, agility

The ratio of borrowed and own funds is one of the calculated characteristics that serve to assess the financial position of the company. We will tell you how to calculate it and what it will show in our article.

What does the debt to equity ratio show?

They resort to calculating the ratio of borrowed and own funds when they want to quickly get indicative data on the financial situation in the organization. He serves as one of economic indicators and gives general idea on the proportion of borrowed and own funds of a legal entity.

The predominance of own funds indicates a good financial position, and the dominance of borrowed funds indicates probable financial instability.

It is important to know the value of this coefficient for persons who invest their funds in the organization: investors, banks, lenders, suppliers providing deferrals.

The formula for determining the ratio of borrowed and own funds?

The calculation of the coefficient is quite simple. It is defined as the ratio of the value of all existing debts on borrowed funds (regardless of their maturity) to the amount of capital considered own. IN legend the formula looks like this:

Kzis \u003d LoanCap / SobCap \u003d (DlLoanOb + KrZaemOb) / SobCap,

ZaemKap - existing debts on borrowed funds;

SobKap - the amount of capital considered own;

DlZaemOb - existing long-term debts on borrowed funds;

KrZaemOb - available short-term debts on borrowed funds.

The data for the calculation are taken from the balance sheet. With regard to its lines, the formula will look like this:

Kzis = (1410 + 1510) / 1300,

where: Kzis - the ratio of borrowed and own funds;

1410 - line number of the balance sheet, which reflects long-term debt obligations;

1510 - line number of the balance sheet, which reflects short-term liabilities for borrowed funds;

1300 is the line number of the balance sheet, which indicates the value of equity.

Read the article about what data falls into the indicated lines of the balance sheet. "The procedure for compiling the balance sheet (example)" .

The ratio of equity to debt is the debt coverage ratio

If we take the inverse ratio, then the result obtained is nothing more than the coverage ratio of obligations with the capital available to the company. Accordingly, the formula will look like this:

Ksiz \u003d SobCap / LoanCap \u003d SobCap / (DlLoanOb + KrZaemOb),

Ksiz - coefficient showing the ratio of own funds to borrowed capital.

The remaining values ​​are identical to those indicated in the previous chapter.

When the balance sheet serves as the source of information, the formula will look like this:

Ksiz \u003d 1300 / (1410 + 1510),

Ksiz - coefficient showing the ratio of own funds to borrowed capital;

1300 - line number of the balance sheet, where the value of equity is indicated;

1510 - line number of the balance sheet, which reflects short-term liabilities for borrowed funds;

1410 is the line number of the balance sheet, which reflects long-term debt obligations.

What is the optimal ratio of equity and debt capital?

A coefficient greater than 1 (which indicates the predominance of borrowed funds over equity) is a sign of the risk of bankruptcy.

A value ranging from 0.7 to 1 indicates the instability of the financial situation and the existence of signs of insolvency.

The value of the ratio of debt and equity capital, which is in the corridor from 0.5 to 0.7, is considered optimal and indicates the stability of the state, lack of financial dependence and normal functioning.

A value of less than 0.5, being an indicator of a stable financial position, at the same time indicates the inefficiency of the enterprise.

However, one should not draw final conclusions on the ratio of own and borrowed funds alone. For a correct assessment, it is necessary to analyze other financial and economic indicators. For example, the coefficient in question may have big values at a high rate of turnover of current assets.

Read more about the data that appears in the analysis of current assets in the article. "Current assets of the enterprise and their indicators (analysis)" .

Results

The formula for the ratio of own and borrowed funds is not difficult to calculate and, as a first approximation, provides the necessary information to assess the financial condition of a legal entity.

Most often, the decision on the ratio of own and borrowed funds is made on the basis of whether the company will be able to repay the loan or not. However, there is a more efficient way to estimate the optimal credit burden. It is enough to analyze how the ratio of equity and debt capital will affect the value of the business.

As a rule, in the process of planning the activities of a company, they determine the capital structure for themselves as follows (). Make up their operating and financial plans, assess the total need for borrowed funds and then analyze how realistic it is to service and repay loans in a timely manner, which will be received or are already on the company's balance sheet. If it turns out that there is a threat to financial stability, the amounts of loans are adjusted. This is where it all ends. This approach has the right to exist, but is far from ideal. Capital structure management will be more effective if, in determining an acceptable ratio of own and borrowed funds, management will be guided by how it will affect business value . Let's talk in more detail about how, using the value of the business as the main optimization criterion, to determine the allowable credit burden. Understanding the topic will also help at the School of Financial Director.

Personal experience

Elena Bugaytsova,
CFO of Planet of Hospitality

In our company, debt limits are set for a year and adjusted quarterly. There are two limits, and they operate simultaneously. Net debt should not, firstly, exceed 2.5 EBITDA for the year, and secondly, be higher than half of the amount of revenue. In addition, there is a limit on the cost of servicing - a limit on interest for the use of borrowed funds (EBITDA / accrued bank interest).

Irina Fedotova,
Director of the financial and economic department of the ABI GROUP group of companies

– characteristics of the attracted funds. The maximum allowable share of borrowed capital depends on the quality of borrowed funds, namely the structure of the loan portfolio by maturity, and the ability of banks to provide long-term borrowings;

Target values ​​for such control ratios as "own/borrowed capital", "long-term/short-term loans" are set once a year when annual budgets are approved. Then we determine the maximum possible amount of bank lending.

Calculation of the optimal borrowed capital

To determine the amount of borrowed capital that maximizes the value of the company, it will be necessary to consistently consider various options for the ratio of equity and borrowed funds.

Assume that the leverage ratio can range from 0 to 90 percent. Accordingly, you will have to calculate the cost of the company for each of the options. You can sequentially consider percentage by percentage. First, determine what the cost will be if the borrowed capital does not exceed 1 percent, then - if it does not exceed 2 percent, and so on up to 90 percent. But such painstaking calculations are not useful in practice. It is enough to divide the entire range of values ​​​​into ten equal parts in increments of 10 percent and then operate only ten possible scenarios(see gr. 1 of Table 1).

The value of the company, taking into account the impact financial leverage(V L) is determined by the formula*:

where EBIT- profit before interest and taxes for the planned period, rub.;

WACC-Z– weighted average cost of capital, taking into account the premium for the risk of financial problems, %;

T– income tax rate, %.

Before proceeding to the calculation of the cost, let's define the values ​​of its components. The amount of planned profit before taxes and interest, the income tax rate can be taken from the company's budget for the year.

The weighted average cost of capital, taking into account the premium for the risk of financial problems, will have to be calculated, and separately for each of the ten values ​​of the share of borrowed capital given above (see column 4 of Table 1).

The formula looks like this:

where d– share of borrowed funds in the total capital structure, %;

p– conditional probability of occurrence of financial problems due to attraction of a certain amount of borrowed capital, units;

K– weighted average cost of borrowing, % per year;

ROE L– return on equity (equity) capital, taking into account financial leverage, % per annum. Determined by the formula:

where ROE U– return on equity without the use of borrowed funds (the ratio of net profit to equity and reserves). The value is taken from the financial model, the scenario "without external borrowings".

A separate question is how to assess the likelihood that financial problems will arise in a company precisely because it has attracted this or that amount of borrowed funds. Indeed, problems can arise due to many factors: financial crisis in the country, a drop in sales, non-payment by customers, etc. To calculate the probability, you can use the following formula:

where but- a parameter that sets the boundaries of the influence of borrowed capital on the likelihood of financial difficulties. Its value is determined by an expert assessment in the range from 0 to 1. For example, if it is equal to 0.2, this means that the deterioration or improvement in the company's financial condition by only 20 percent can be caused by an increase or decrease in the share of borrowed funds, respectively. The remaining 80 percent is the result of the influence of other factors;

b- a coefficient showing at what share of borrowed capital there is a possibility of financial difficulties and how quickly it grows. The range of b parameter values ​​is from 2 to 10 (the higher the value of the coefficient, the faster the probability increases), as a rule, the value of b for Russian companies equals 5.

All calculations are not as complicated as it might seem at first glance - let's illustrate this with an example.

Alfa Company (the name of the company is fictitious. - Note ed.) expects for the year a profit of 4,000 thousand rubles (before taxes and interest, EBIT), return on equity under the scenario without the use of borrowed funds (ROE U) - 20 percent per year. The weighted average cost of loans (K) is 12 percent, the income tax rate (T) is 20 percent. Let us determine what share of borrowed capital (d) will be optimal from the range from 0 to 90 percent (the step is 10%). When calculating the probability of deterioration in the financial condition, management decided that it could be 20 percent (a = 0.2) due to the need to service borrowed capital, and its growth rate was medium (b = 5). Calculations for each of the considered values ​​of the share of borrowed capital are presented in Table 1.

Table 1 Choosing the optimal share of borrowed capital

So, the first option - the share of borrowed capital is 0. Since there are no loans, then the probability that Alfa will fall into a difficult financial position for this reason, also zero. The return on equity, taking into account the influence of financial leverage, will be 20% (20% + (20% - 12%) x (1 - 20%) x 0% : (1 - 0%)), the weighted average cost of capital, taking into account the risk premium - 20% (20% x (1 - 0%) + 12% (1 - 20%) x 0% + 0): (1 - 0)). And the cost of the company will be 16,000 thousand rubles. (4000 thousand rubles x (1 - 20%): 20%).

Further. The second possible share of borrowed capital is 10 percent. With this level of leverage, the probability of financial problems for the company is small and amounts to 0.000002 (0.2 x 105%). According to the results of calculations, the return on equity will be 20.71% (20% + (20% - 12%) x (1 - 20%) x 10% : (1 - 10%)), the weighted average cost of capital - 19.6% ( 20.71% x (1 - 10%) + 12% x (1 - 20%) x 10% + 0.000002) / (1 - 0.000002)), the value of the company is 16,327 thousand rubles. (4000 thousand rubles x (1 - 20%) / 19.6%). The cost is determined similarly for other shares of borrowed capital (see Table 1).

As can be seen from Table 1, along with an increase in the share of borrowed funds, the return on equity also increases - this is the result of the financial leverage. The value of the company is also changing - on one interval (from 0% to 40% of debts) it grows, on the other it decreases (from 50% to 90%). The maximum value of the company - 17,167 thousand rubles - is achieved with 40 percent of borrowed funds. This is the desired optimal value. Having determined the optimal capital structure of the company, it makes sense to return to the financial model (budgets) of the enterprise and, if necessary, make adjustments to it.

Company credit capacity

The optimal capital structure of the company is most often determined at the stage of formation of the annual budget and serves as a guideline for the next 12 months. And for monitoring current situation with the level of borrowed funds, you can use the indicator of financial dynamics. It characterizes the possibility of covering debt obligations at the expense of both existing assets and expected income. An indicator of financial dynamics is calculated for short-, medium- and long-term debt. The formula is:

where k– liquidity ratio (assets/amount of debt excluding interest on bank loans), units;

k norms– standard value of the liquidity ratio (recommended values ​​are presented in Table 2), units;

T– normative debt repayment period, years (see Table 2);

l– debt coverage ratio at the expense of net profit, units. (net profit: debt).

* The standard debt repayment period corresponds to the debt turnover. For example, for a loan for three months, the standard period is 0.25 (3 months : 12 months).

The indicator of financial dynamics will help balance the structure of borrowed capital, predict the risks of insolvency, and most importantly, assess the credit capacity of the company (how much more debt can be accumulated without going bankrupt). If it is equal to 1, credit capacity is 0, then there is no threat of bankruptcy. The company is able to pay interest and repay existing loans, but it should not yet increase borrowed capital. If less than 1, the credit capacity is negative. In other words, the company has much more debt than it can afford. And when the value of the indicator of financial dynamics is greater than 1, this indicates that the company is able to service the debt for a larger amount than it currently has. The amount of credit capacity is calculated using the following formula:

Due to the fact that the indicator of financial dynamics is determined in the context of short-, medium- and long-term debt, it is possible to track whether the company complies with the principle of matching the timing of income and loan repayment. Namely, whether short-term loans are attracted only for current income, medium-term loans for programs or projects implemented during the year, etc. Such an analysis will help to avoid the temptation to finance activities with a long operating cycle (construction, shipbuilding, heavy and power engineering, launch of new products) through short-term lending.

Table 3 shows an example of calculating the credit capacity of the Beta company (the name of the company is fictitious. - Note ed.). Let us dwell in more detail on how assets, debt and profit were divided between the periods under consideration. The basis for the distribution of the amount of loans is the repayment period. Loans that will need to be repaid within the next three months from the date of the report are short-term. Loans that need to be repaid during the year (including the previous three months) - by the medium term, over a longer period - long-term. The last figure is net debt in general. Thus, the amount of accounts payable of the Beta company is 25,000 thousand rubles, of which 10,000 thousand rubles must be returned within three months, and 15,000 rubles within a year (including the previous 10,000 thousand rubles).

Table 3 Calculation of the credit capacity of the enterprise

You can distribute assets if you answer the question: how quickly will they be able to be sold - within three months, a year or longer? Short-term assets include highly liquid assets, namely short-term financial investments and cash (lines 250 and 260 of the balance sheet). To medium-term - all current assets, excluding receivables, payments on which are expected in more than 12 months (line 230 of the balance sheet). To long-term - all assets of the enterprise. As for profit, everything is much simpler. IN short term reflects the profit forecast for the next three months (or the actual value for the same period last year, the price index), in the medium and long term - the annual forecast (actual for last year price index).

Judging by the results of calculating the indicators of financial dynamics and credit capacity, the company "Beta" with a high probability will not be able to repay short-term debt in a timely manner (financial dynamics indicator is 0.75, which is less than 1).

Negative credit capacity in the short term (-2500 thousand rubles) indicates that the company uses "short" money to finance activities with a long payback period. To ensure the stability of its financial condition, it needs to attract loans with a maturity of 6-12 months to replace the used loans for three months. The credit capacity of the enterprise at the time of the analysis is 34,950 thousand rubles (defined as the minimum value of the medium-term and long-term credit capacities). It is for this amount that one can still attract loans without worsening the financial condition of the company - but not short-term ones.

Breaking debt limits is not yet a catastrophe

Oleg Kupriyanov,
head of financial control department
CJSC "Geotech-Holding",
on the nuances of debt management

Determining the allowable share of borrowed capital, in addition to standard financial ratios, we take into account several indicators that characterize, on the one hand, economic efficiency, and on the other hand, the monetary component of the holding's activities. Namely:

– loans and borrowings/EBITDA. The desired range is from 3 to 5 units;

– (loans and borrowings – cash balance on settlement accounts as of the reporting date)/EBITDA. Landmark - from 3 to 5 units;

– accrued interest on loans and borrowings for the period/net income before accrued interest. It is desirable that this indicator does not exceed 0.5–1 units;

– proceeds from contracts for the period / (loan amount + accrued bank interest for the period). A value close to 1 is critical; in this case, all proceeds from the customer are fully directed to servicing borrowed capital. A relatively comfortable ratio is 0.5.

The first two indicators allow you to correlate the amount of the loan with the economic results of the work, and the third reflects the extent to which earnings before interest cover the payment of interest on borrowed capital. The fourth indicator shows how much the proceeds cover the obligations to repay loans and pay bank interest.

The indicators used are still conditionally reference. This is not a dogma, but a signal to understand what caused the excess, what measures should be taken.

Attached files

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• An example of an automated calculation of the ratio of equity and debt capital.xls