DIAGNOSIS OF FINANCIAL EQUILIBRIUM AFTER OUTBREAK OF THE CURRENT ECONOMIC AND FINANCIAL CRISIS

Suciu Gheorghe
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Suciu Gheorghe: Dimitrie Cantemir Christian University Brasov, Romania

Annals - Economy Series, 2013, vol. 2, 273-280

Abstract: The analysis based on the balance sheet tries to identify the state of equilibrium (disequilibrium) that exists in a company. The easiest way to determine the state of equilibrium is by looking at the balance sheet and at the information it offers. Because in the balance sheet there are elements that do not reflect their real value, the one established on the market, they must be readjusted, and those elements which are not related to the ordinary operating activities must be eliminated. The diagnosis of financial equilibrium takes into account 2 components: financing sources (ownership equity, loaned, temporarily attracted). An efficient financial equilibrium must respect 2 fundamental requirements: permanent sources represented by ownership equity and loans for more than 1 year should finance permanent needs, and temporary resources should finance the operating cycle.

Keywords: financial equilibrium; balance sheet; working capital; need for working capital; net treasury. (search for similar items in EconPapers)
Date: 2013
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