Under the coefficient of autonomy (or financial independence), it is customary to understand an indicator characterizing the share of the organization’s assets that are provided with its own funds. The higher the indicator, the more stable the enterprise, more stable from a financial point of view and almost independently of creditors. Therefore, the autonomy coefficient shows the success of the entire organization as a whole.
In order to correctly calculate the coefficient of autonomy, it is necessary to draw up, first of all, an
aggregated balance based on the existing
balance sheet. It is important to note that this kind of transformation within the balance sheet does not violate the existing structure of assets and liabilities, moreover, they allow you to combine articles according to the economic content.
Of course, the autonomy coefficient can be calculated without resorting to drawing up an enlarged balance sheet. On the other hand, in this case, it will be necessary to increase the article “Capital and reserves” by the adjacent value of “deferred expenses”.
Using the available data, the autonomy coefficient is calculated by dividing the amount of equity in the existing total assets of a particular organization.
In this case, own funds are understood as all currently existing
financial resources of the organization, 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, as a rule, they are reflected in the balance sheet in the section entitled "Capital and reserves".
The concept of “total assets” includes all the property of the organization, including tangible and intangible assets. Total assets are the result of the balance sheet.
The autonomy coefficient is measured exclusively in fractions. In this case, the normative critical value is 0.5-0.7 (and in world practice up to 0.3). According to experts, it is advisable to consider this indicator in dynamics. Thus, the constant growth of the coefficient in dynamics indicates the stability of the organization, a gradual increase in its independence in relation to external creditors.
The autonomy ratio primarily plays an important role for potential investors and lenders. The higher this indicator, the lower the risk of potential losses from investors.
The larger the share of so-called non-current assets for a particular organization, the more long-term sources are required for subsequent financing, therefore, the share of equity should be greater, respectively, and higher is the financial autonomy coefficient.
It is important to note that there are other ratios and indicators ( equity mobility ratio, capital concentration ratio, long-term financial borrowing ratio, etc.), thanks to which one can also judge the financial stability and independence of any enterprise.