Finance and Business Group

Posts Tagged ‘Finance’

The circulation financial implies cycles successive of money a-well-to-money between companies and individuals. The operation tions of a business is manifested in two types cycles financial statements, which differ in their rhythm. The short financial cycle is the fact that funds are allocated to inputs or pro- products, money that is recovered by charging sales. Cycle or financier or long or resource is the “fixed” fixed assets (equipment, intangible such as patents, trademarks, etc.).. The funds allocated to these resources return as money in successive periods, through the sales made ​​using this capability. So, unlike the funds allocated to inputs which are recovered through the sale of products, recovery of investments fixed no is produce mainly to the sale of those assets, but through operating cash flow generation resulting from use of fixed assets. The diagram 1.2 shows the main elements of the two financial cycles. The characteristics of each business cycles have an impact on the magnitude of resources of ben funded

The financial analysis is the study made of accounting information through the use of indicators and financial ratios. Accounting represents and reflects the economic and financial company, so it is necessary to interpret and analyze this information to understand the origin and behavior of company resources. Accounting or financial information of little use, but we understand it, but understand, and that’s where the need arose for financial analysis.
Each component of a financial statement has a meaning and purpose within the accounting and financial structure of the company, effect must be identified and if possible quantify.
Know why the company is in the situation is, whether good or bad, so it is important to project solutions or alternatives to address the problems, or to devise strategies to harness the positive aspects.
Without the financial analysis is not possible to make a diagnosis of current business and without it there is no pattern to indicate a course to follow in the future. Many business problems can be anticipated interpreting accounting information, as this reflects every negative or positive symptoms presenting the company to go to the extent that economic events are happening.
There are a number of indicators and financial ratios that allow a complete and thorough analysis of a company.

A company involves investment in resources, the acquisition is financed through capital contributions or debt. These resources are for the activities of the company’s business (Eg, a food production business, or communication services, or extraction oil, or sale of bearings). Thus resource s are called operating, are the operational capability of operating ment (production capacity and trade capacity), this is the providing the excellent dents strictly business, those that result from business to the that is Guideline ta business. There are resources devoted to activities directly related non- with business. These investments may or may not exist in an enterprise does not affect the unem- formance operating (business performance of the company). Are resources income out of Business: inversione s s financial (S tale com or deposit s s bank to interest s bond and operate s in other companies) or real (goods for hire). The investments operational are the asset or operative or is the means to specify the es- business strategy. Of that is the size of the surplus and operative or the surplus the Business the company. The income investments are the asset or No operative or the em- dam, which remains essentially by its potential of income and that can sell or settle- will not affect the operating surplus. Total assets (operating and non-operating) capital can be financed exclusively from owners of the company. Are also used as a form of debt financing, when it is convenient for the cost or the availability of capital for growth growth of business. The debts imply a commitment fee (interest) and refund provided. In principle, a company can select from an autonomous form of financing (which part of capital and how much debt fund resources). Autonomous m means that the form of financing does not affect the performance of business in which it is the company

The money to finance the company’s assets is obtained from individuals directly or intermediaries in the financial markets. The existence of financial markets facilitate ta transactions that ultimately are funded companies. Trading in these assets (involving transactions with other companies and individuals) involving payments and collections, and generate a surplus, which is for new investments in active to interests of the liabilities and Dividends of the owners to payment of the debts das and taxes. Individuals close the circulation. It is individuals who receive and deliver the dine- ro, as remuneration for labor, product and service payments, capital contributions, loans We, dividends, interests, taxes. In the circuit financial of a economy there a amount of stages in the that involved institutions (Business enterprises, intermediaries financial state), which are suppliers and customers from each other. Individuals act- in such an organization: the managerial work or operational work, with which the system works. But each of these organizations is never as complete as the overall eco- economy: people are not “live” in them. It is clear that consumers and owners of capital (Financial and human) are in last instance, the individuals. The people individual in units family and no the institutions. The Refinements organizational that you have a economy resulting diversity of legal forms which can be used for activities

The administration financial of business search identify the courses of action that have the greatest positive effect on the value company for its owners. This requires establishing what the value of the company at the time of the decision and to paths through which this can be increased value (acting on the resources used and the means of funding to be used). Financial analysis provides the manager s and owner s a measure of the expected impact of strategic decisions that have and management in the value of the company. Investors and lenders also use financial analysis to assess the degree they can reach their goals decisions they make. Investors and capital d s consider whether to contribute money to a company (for example, buying their actions tions). Therefore, they are interested in correctly interpreting the current earnings of the firm and prospects for future earnings and the funds available for dividends. Creditors s Commercial s and the lenders (creditors’ s financial) for n set in an appropriate capacity to pay the company to which you grant credit. This are also interested in the prospects for the generation of company funds and the evolution their economic conditions and competitive performance. It important that the manager s and owner s understand what is the evaluation of the em-prey made by investors and creditors to negotiate better operations inputs capital or hiring liabilities. It therefore necessary to analyze those as- aspects and explanations that affect this assessment