The vulnerability of enterprise and the operating financial balance

Caruntu Alexandru and Marcel Laurentiu Romanescu

MPRA Paper from University Library of Munich, Germany

Abstract: In the light of functional analysis, the company is vulnerable if used, for the most time part, to financing through bank loans in the short term. This item is highlighted by the study compared of variation of the operating revolving fund, with the variation of revolving fund need. In the frame of operating balance, it believes that the need for floating capital is the most important indicator whereas place in the record those cyclical needs not covered financial from temporary resources and permanent renewable in the same cycles of operation. Achieving this balance is put into evidence of the 4 levels of functional balance, namely: working capital fund (FRF) or stable level of funding, the need for capital funds for operating (NFRE), on the one hand and the need to revolving fund outside exploitation (NFRAE) on the other hand, and the level of treasury securities.

Keywords: liquidity; accounting net; treasury; imbalance; balance (search for similar items in EconPapers)
JEL-codes: E44 M1 P34 P42 P43 (search for similar items in EconPapers)
Date: 2008-10-10
New Economics Papers: this item is included in nep-acc and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11237

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