FINANCIAL DIAGNOSIS OF STOCKS
Financial diagnosis is a part of a company’s general diagnosis. The role of the financial diagnosis is to establish the situation of the company at a given time, to see if it is viable, to help the decision-makers to take the best measures to continue or cease the activity, or to sell, buy or liqu...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Academica Brâncuşi
2014-12-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2014-06/09_Suciu,%20Barsan.pdf |
| Summary: | Financial diagnosis is a part of a company’s general diagnosis. The role of the financial diagnosis is to establish the
situation of the company at a given time, to see if it is viable, to help the decision-makers to take the best measures to continue or
cease the activity, or to sell, buy or liquidate the company. Each entity is unique and arbitrarily applying some analysis models used
by other companies can lead to significant errors. One cannot analyze in the same way a company that produces household products
and a trade company. In the first one, the working capital must be positive, because permanent capitals must finance the fixed assets
which have a high value, and the working capital will finance the operating cycle. In case of a trade company, a negative working
capital might represent a positive activity, because the duration of the operating cycle is much shorter, and short term sources can
also finance the company’s tangible assets. |
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| ISSN: | 1844-7007 1844-7007 |