Articles Tagged ‘finance’
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...
Convertibility: A necessity and convenience for international business development. Inconvertible currencies are barriers to trade and potential customers are forced to obtain licenses or central bank approval to buy the goods from countries whose currencies are weak. Opportunity cost. Return on capital market, waiving to invest in alternative. Currency. Currencies of other countries that require individuals, corporate institutions to purchase goods and services from other countries. Uncertainty. A special case of risk that occurs when there are no historical antecedents of the probabilities of occurrence of events or situations and therefore cannot determine an objective probability of occurrence. Risk. Is a disadvantageous whose tendency is known, it is known where the difficulties and what is the benefit, allowing the determination of historical probability. Financial Risk. Is the risk of not being able to cover the financial costs and is associated with the growth of fixed ...
In a globalized world we live in, we cannot compare, and we measure ourselves against the competition with the commercial sector to which we belong, or simply with past periods, it is indispensable to use financial indicators to inform us about the liquidity , debt, profitability and business activity, therefore am available this material and the application of a practical case, that will serve managers for corporate management. FINANCIAL RATIOS The new leadership style that assumes the finance business improvement, has created the foundation for companies to develop an organized way all the changes necessary to enable efficient management, economical and effective, through financial indicators. During the process of analyzing financial statements provides a diverse range of possibilities to meet the objectives undertaken to plan and carry out the task of evaluation. The analyst may choose, then, the tools that best meet the intended purpose, within which are the following: 1. ...