Profitability and financial stability
Constantin Caruntu and
Mihaela Loredana Lapadusi
Additional contact information
Constantin Caruntu: Constantin Brancusi University of Targu Jiu, Romania
Mihaela Loredana Lapadusi: Constantin Brancusi University of Targu Jiu, Romania
Annals - Economy Series, 2011, vol. 3, 195-204
Abstract:
The business activity allows identifying two categories of flows: flows of results and cash flows. Flows affect the income and expenses, participating in training result, the company's profitability. Financial flows involved in their formation both monetary items (which drive the monetary input or output and thus implies a cash flow), and non-cash items (affecting the result, without leading to a cash flow). Are equally identifiable cash flows that do not involve an immediate effect on the outcome or effect on the result equivalent to that spread on the treasury. Financial equilibrium in a general manner evokes the idea of harmony between different elements of a system, which in finance is harmonization of resources with the needs. Financial equilibrium can be defined by the company's ability to secure payment of its proceeds without interruption to current liabilities incurred in implementing its object of activity or tax laws, so it can avoid the risk of bankruptcy. Maintaining financial stability is the essential condition of survival of the enterprise, financial and balanced assessment must take into account the concrete conditions of the occurrence of default.
Keywords: profitability; balance; cash flow; cash. (search for similar items in EconPapers)
Date: 2011
References: View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.utgjiu.ro/revista/ec/pdf/2011-03/25_CONSTANTIN_CARUNTU.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2011:v:3:p:195-204
Access Statistics for this article
More articles in Annals - Economy Series from Constantin Brancusi University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ecobici Nicolae ( this e-mail address is bad, please contact ).