The stability of the business finances essential concepts, fundamental


One of the aspects that contribute to the stability of the firm is its financial viability. It is dependent on both the stability of the conditions,

in which the activities of the company are carried out, as well as the outcomes of its operation that is its proactive and efficient reaction to changes in

external and internal factors.Financial stability is a quality that indicates a steady the ratio of income to expenditure of the company, and the freedom

to move funds within the company and their efficient utilization, continuous process of production and sales of products. Financial stability is created

through the entire process of economic and production activities. It is the primary element of general stability for the company.Analyzing the financial

viability in relation to one or more date allows you to determine how the business managed its resources over the period preceding the date.The

visible manifestation of stability in the financial system is the ability to solve, i.e. the capacity in cash to pay its obligations to repay. Solvency analysis

is essential for any business, not just to evaluate and predict financial activity however, it is also essential for investors outside the company (banks).






It is particularly important to be aware of the financial capacity of a partnership partner when there is a possibility of whether to grant

the partner a commercial loan or deferring payments.

Solvency is evaluated based on the liquidity of the assets currently in use, i.e. the amount of time needed to convert them into cash.

The factors that determine the financial health are the liquidity and the solvency of an company, i.e. the capacity to pay short-term obligations

promptly and completely.Figure 1.1.1 illustrates the major stages of analysis of the financial position of the business.Figure 1.1.1

The stages of analysis for the financial condition of an the companyThe best way to ensure the survival and the stability of an organization is its

financial stability, i.e. an financial state which ensures its continual insolvency.

A business with its own money covers its capital investments, does not permit unjustifiable receivables and payments and makes timely payments to

its obligations.Analysis of the system for managing financial stability will consist of two parts:

Evaluation of the financial viability.Analysis of the management of financial sustainability.Analyzing the working capital of your own and financial

requirements for the present;Determine the liquidity of an business, identifying the variables that determine the quality of its assets in the present.





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