Articles Tagged ‘Financial analysis’
Financial management is closely related to decisions concerning the size and composition of assets, the level and structure of the financing and dividend policy by focusing on two primary factors such as profit maximization and wealth maximization to achieve these objectives one of the most popular tools for financial management to be effective, it is financial planning, the ultimate goal of this plan is a "financial plan" which lists and describes the company's financial tactic also ahead forecasts are based on different accounting and financial statements of the same. Another useful tool is the management control, which guarantees a high level in achieving the goals set by the creators, managers and implementers of the financial plan. In addition to these tools, there is a financial analysis, whose cornerstone is laid on information provided by the company's financial statements, taking into account the characteristics of the users who are targeted and specific objectives that g...
In the present circumstances being experienced by the country's economy is facing a full recovery, to thereby improving efficiency in social productivity should become the main way to ensure economic development. In this regard Carlos Lage in 1997 to introduce the Draft Resolution Economic the V Congress of the Communist Party of Cuba said: "The efficiency concept must change economic course of action, control and demand, where they manage to every worker. Socialism, as well as justice, efficiency and quality. What is not efficient is not socialist and what is not have quality should not be produced. " From the above one can infer the importance at the present time for the development of the country's economy that companies properly manage the material, financial and labor with a view to achieving economic efficiency, which is the fundamental basis of business improvement . For this reason, the necessary condition for the proper functioning of any system is the "Economic and Fin...
No matter how great the company or the activity that is engaged, or possesses such antiquity, is always subject to slip into a financial instability marked by the insolvency and liquidity, all product in many cases of bad financial policies, but most of the opportunities created by serious strategic mistakes or the accumulation of errors both in financial and productive, commercial and administrative. The current situation in the world, characterized by a very strong global competition, sharp and sudden economic and financial changes that generate large changes in the value of currencies and interest rates, important changes in the prices of raw materials, and continuous changes in tastes and preferences of consumers, resulting in firms having to do constant monitoring of your financial situation. Precisely the objective of our work is to analyze the financial situation of Company X in the first quarter of 2006 and 2007 based on the ratio pyramids and the analysis of working capita...
Reasons application to the analysis of financial statements. Reasons for liquids Study's ability to pay in cash or money from a company. Within it we determine: Working Capital In financial analysis, deciphering the behavior of Working Capital is of vital importance because of the close relationship established with operations involving items or circulating currents, which is the effect of commonly performed operations company. General Liquidity: Is the ratio of current assets to current liabilities? Allows measuring the ability of the company to meet its obligations in the short term from its current assets at any given time. When this ratio is less than 1, the organization has lost its overall liquidity and technically in a state of bankruptcy. The same should reach values greater than 1, although the most suitable, in general, is to behave with a value of 2, or almost 2. If the assets are much greater than twice the current liabilities, it is possible that the company is p...
The liquidity ratios
As advanced in a recent post, we will analyze the main liquidity ratios must be taken into account in order to take a look at the health of a company. And it is clear that in this very delicate one essential aspect that we know our customers is its liquidity. Then analyze the leading liquidity ratios: Immediate Liquidity Ratio: Available / Current Liabilities This ratio measures the capacity we would have the company to meet its debts with the money only at banks and cash. Should be between 0.1 and 0.4. With lower values, could have liquidity problems and above, the problem would be that they are not properly using their resources as they would have excess cash that could be spent on something more productive to have it in the bank. A lesser evil. Acid-Test Ratio (Acid Test Ratio): (Current Assets - existing) / Current Liabilities This ratio goes a little further than before, and that indicates the company's ability to meet its debts, but this time, taking into account the ac...