Articles Tagged ‘Business’
Refers to study the possibilities of the company to cover its debts in the short and long term. The short-term debts are covered through the use of current assets (cash, cash, bank, accounts receivable) and calculated using the following relationship. Current Assets / Current Liabilities This ratio should be greater than 1 because there must always be an adequate margin to meet the needs of immediate payment which must be incurred. The ability to service debt in the long term, based on earnings, expected sales gain, when the project enters its normal operating phase. Expected profits set the borrowing limits and conditions of payments of principal and interest. This ability to pay long-term consists of earnings and expenses, which are not expenditures, including depreciation and measured by the coverage rate of the debt. Ultimately, utilities will be reached in the exercise once Deducting the payment of taxes, employee participation, profit sharing, etc., which allows us to c...
The working capital management refers to management of all company accounts including all assets and liabilities, this is an essential point for the management and financial regime. The management of company resources are essential for progress, this paper focuses its objectives to show key points in the management of working capital, because it is this which we largely measured the level of solvency and ensures reasonable safety margin to the expectations of managers and administrators. The primary objective of working capital management is to manage each of the assets and liabilities of the company in such a way as to maintain an acceptable level of this. The main assets to which attention must be paid are cash, marketable securities and investments, accounts receivable and inventory, as these are the ones who can maintain a desirable and efficient liquidity without maintaining a high number of stocks each, while the most important liabilities are accounts payable, financial ob...
One of the biggest problems that organizations have today is the lack of tools that allow you to permanently assess the possible deviations that occur within its core operations, it is essential to forge a set of tools to help to improve their work in front of the whole enterprise. Economic organizations and institutions designed for people to achieve individual and collective ends, have at present a great challenge in front of the control systems that apply to the activities of their daily operation, it becomes feasible to establish some points of support provide the tools necessary to have a good system of inspection and verification, which in the short term give us lights to assess whether procedures are being implemented are adequate and that we provide the most benefit. Since organizations can plan and implement changes in its fundamental nature and structure of the above, take on great importance the concepts of efficiency as they affect relations between the organization an...
The financial structure of a company is appointed by the addition of the components of financing, determining the specific means used by managers to obtain future benefits. At present, the organizations generally have an obstacle in front that can sometimes be harmful for consolidation and maintenance in the market, this barrier is financing its operating activities, either with their own resources or those of third parties. In a market as competitive as the one presented at this time, obtain resources is extremely difficult, it is necessary to analyze some of the factors that may become relevant in this analysis to raise capital. First, state the types of capital that they use the entities, then analyze the structure of the financial capital of the company which is closely linked to its financial situation and its short-term borrowing rates and longer term, additional shall specify the form of measurement of the structure, finishing with the main approaches and theories of analy...
1. - What is a financial statement? It is a document whose purpose is to provide information on the company's financial situation to support decision-making. 2. - What is the financial situation in the company? Is the situation that is according to the results once the operations have been performed to date or period? 3. - What is the point of contact between the statement of financial position with the statement? The focal point is the profit or loss realized from the exercise. 4. - What statements do you know? The income statement, the statement of costs of production, income statement and statement of changes in financial position. 5. - How do you determine the cost of sales? Initial Inventory + Shopping = Available - Final Inventory = Cost of sales 6. - How do you determine the cost of production and of sales? The cost of sales shows the cost of production or acquisition, as the processor or trader of goods sold that generated the income reported on line sales. 7...