THE INTERCONNECTION OF LIQUIDITY INDEXES AND MODEL OF THEIR OPTIMIZATION
Keywords:
liquidity ratios, assets, liabilitiesAbstract
Correlation of liquidity ratiosis scrutinized in the article,and the model of assets and liabilities balance optimization is suggested to ensure enterprise’s solvency.
The object of the research is liquidity ratios, and the subject is the model of their optimization.
The purpose of the study is to develop the model of assets and liabilities balance optimization on the basis of appraisal of their correlation and calculationmethods.
Enterprise’s solvency analysis has always been of considerable importance for both partners and competitors. At present assessment of liquidity ratioscompliance with regulatory value is taken into serious consideration.
Liabilities groups L1 and L2 are incorporated into each of the four liquidity ratios. Ratio of mobilization also includes L1, L2, and reserves.Absolute liquidity ratio is influenced by the group of assets A1, apart from the liabilities groups(L1 and L2). Quick liquidityratio comprises all components of the absolute liquidity ratioand the group of assetsA2. Overall liquidity ratio includes all of the aforementioned ratios (L1, L2, A1, A2) and A3 (incorporating reserves).
Since liquidity ratios are calculated with the help of relatively immutable formulas, a model of assets and liabilities balance should be introduced with a view to meetingregulatoryliquidity ratios values. Such model would facilitate optimization of assets and liabilities groups that influence the studied values.
In order to implement the model at domestic enterprises, an amount (within a set timeframe)of the most long-term liabilities(L1) and medium-term liabilities (L2) should be initially determined. Then this amount should be multiplied by each ratio thatis present in the relevant group of assets, liabilities, and reserves in the model. Thus we would learn values, which groups of assets, liabilities and reserves should comply with in order to meet regulatory liquidity ratio. The next step is opting for the most efficient model (ratio).
