General

Financial sustainability

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Financial Stability. The evaluation of financial stability must reveal the availability or absence of the possibility to draw in additional funds, and the

capacity to pay current obligations with the help of assets with different levels of liquidity. When looking at financial sustainability, it is important to

consider the following: What is the safety margin that indicates the extent of the business’s equity (the company is defined by a high safety margin

(greater than 0.5) and a low safety margin (0 > – 0.5) or the safety margin is extremely small (> zero)); Did the company had the possibility of

obtaining additional borrowing funds with no any risk of losing financial stability? How did the situation change towards the end of the period being

studied (the examination of the amount of equity prior to the start of the time frame reveals numerous opportunities to acquire additional loans

without possibility that you lose your financial security (more than 0.5) There are a limited number of opportunities to obtain additional borrowing

funds without being financially unstable (0- 0.5) and no chance to borrow additional funds without loss of financial stability (less than 0.)

 

What is the amount of coverage for non-current assets using capital owned by the company (actual)? In the absence of what sources do the long-term

assets of  an enterprise are funded (the suggested value for the coefficient of not-current asset coverage through own capital (actual) must not be less

than. when  there is less risk that the company’s financial stability is threatened);What is the degree of solvency for the business as per the criteria of

Beaver (the suggested amount in the ratio of Beaver, (equal to the ratio of cash flows and total debt) as per international standards is within between

0.17-0.4.

The indicator’s value of <0.17 can be used to identify the business to the category of “solvency risk”, i.e. the amount that it has in its solvency level is

not high. The index of 0,17 0,4 permits the referring of an organization as a member of the average class that is “the risk of solvency loss”, i.e. the level

of solvency is assessed as an average. Index value greater than 0.4 permits a referral of the company to a low-risk category that is “risk of solvency

loss”, i.e. the degree of solvency is sufficiently high;What is the time frame for self-financing of the company? What is the extent of reserves for the

company to cover its expenses and other expenditures (the time-frame that auto-financing (or in other words, solvency) of the company could

indicatea high percentage reserve (more than 90) or a low amount of reserves for the company to cover its expenses in production costs (less than 90).

In international usage it is considered to be normal to have this indicator over the 90-day mark).

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