How to calculate the coefficient of autonomy?

Under the autonomy ratio (or financialindependence) is understood to mean an indicator that characterizes the share of the organization's assets that are provided by own funds. The higher the indicator, the more stable the enterprise, the more stable from a financial point of view and practically independent of creditors. Consequently, the autonomy ratio shows the success of the entire organization as a whole.

autonomy ratio
In order to correctly calculate the coefficientautonomy, it is required to compose primarily an aggregated balance sheet on the basis of an already existing balance sheet. It is important to note that this kind of transformation inside the balance sheet does not violate the existing structure of assets and liabilities, moreover, they allow to combine the articles according to economic content.

Of course, the autonomy ratio can beto calculate, without resorting to drawing up an enlarged form of balance. On the other hand, in this case it will be necessary to increase the article "Capital and Reserves" by an adjacent amount of "Expenses of future periods".

Using the available data, the autonomy ratio is calculated by dividing the amount of equity to the existing total assets of a particular organization.

the autonomy ratio shows
In this case, under own meansall existing financial resources of the organization are understood, which in turn, as a rule, consist of the funds of the founders, as well as directly from the financial activities of the organization. It is important to note that in the balance sheet they are usually reflected in a section called "Capital and Reserves".

The term "total assets" includes all property of the organization, including tangible and intangible assets. Total assets are the result of the balance sheet.

The autonomy ratio is measured exclusively inshares. In this case, the normative critical value is 0.5-0.7 (and in world practice it is up to 0.3). According to experts, it is reasonable to consider this indicator in dynamics. Thus, the constant growth of the coefficient in dynamics testifies to the stability of the organization, the gradual increase in its independence with respect to external creditors.

coefficient of financial autonomy
The coefficient of autonomy in the first place plays an important role for potential investors and creditors. The higher this indicator, the lower the risks of possible losses on the part of investors.

The more a particular organization hasterm non-current assets, the longer the long-term sources are required for subsequent financing, therefore, the share of equity should be greater, respectively, and higher the coefficient of financial autonomy.

It is important to note that there are othercoefficients and indicators (own capital maneuverability ratio, capital concentration ratio, long-term attraction of financial loans, etc.), due to which one can also judge the financial stability and independence of any enterprise.