Financial diagnostics of the Company is the main function of the financial management and consists in a comprehensive study of the quantitative characteristics of financial processes, using information systems that ensure alternative options for making managerial decisions. During the diagnosis of the financial condition of the Company, an analysis of liquidity, business activity, financial stability, efficiency of activities and market activity is conducted.

Short-term liquidity is determined by the Company's ability to cover its own short-term liabilities.

The importance of liquidity analysis can be understood by assessing the possible consequences of the "sufficient" ability of the Company to cover its own short-term obligations.

There are several levels of liquidity.

Insufficient liquidity, as a rule, shows that the Company is not able to take advantage of discounts and profitable offers that arise.

The critical shortage (deficit) of liquidity implies that the Company is not able to pay its own current debts and liabilities, which in turn can lead to the intensive sale of long-term investments and non-current assets, and in the worst case - to insolvency and bankruptcy.

Lack of liquidity for the owners of the Company may indicate a decrease in profitability, loss of control and a partial or total loss of the invested capital.

For creditors, insufficient liquidity of their debtor shows the probability of untimely repayment of arrears.

Consequently, in the event that the Company can not repay its current liabilities as the maturity of their payment expires, its continued existence is questioned and it postpones other performance indicators to the background. The definition of an acceptable liquidity level for the Company in the short run is closely linked to the assessment of the unsystematic financial risks it encounters. For the analysis of liquidity adopted a system of coefficients, including such as: the value of own working capital (working capital); total coverage ratio; quick liquidity ratio; absolute liquidity ratio; liquidity when mobilizing funds.

To calculate the liquidity indicators of the Company and provide draft management decisions in the direction of optimizing indicators, the Financial Diagnostics of the Company from InBridge Consulting is called on.

Application. The procedure for providing financial diagnostics services to the Company.