Optmization of Treasury

FUND NET WORKING CAPITAL / STOCKS
Depending on whether the net funds more or less covers stocks, the enterprise funds more or less feasible and
available values using its short-term debts. Some bankers use the following rating:
- 100% fine
- 66 50% pretty much mediocre
- 33% dangerous
- 0% winding-up situation
The Ratio of the Financial Autonomy:
The objective is to find to what extent the company is dependent on its creditors. The structure of liabilities and the
importance of self-sufficiency are good indicators of solvency of the company.
Debt, said, must balance risk and profitability.
The Ratio:
EQUITY / LIABILITIES
Commonly referred to as 'financial autonomy ratio' is even better that it is higher. The lack of equity is often the
source of cash flow for the company. Bankers require traditionally as:
EQUITY / CAPITAL
It is not, in principle, less than 50%. Indeed, at the bottom of this threshold, they consider the company as vulnerable
as too dependent on third parties. On the contrary, a high value indicates the existence of a potential debt.
Sometimes used to express the same idea, the ratio:
To 1 below, the solvency of the firm is compromised.
EQUITY - DEBT TO MEDIUM AND LONG TERM
But it is not enough to maintain a certain ratio between equity capital and borrowed; It must at the same time that
the resources released by the operation to deal normally with loads of debt. In this regard, the ratio:
CASH / CURRENT LIABILITIES
Measures the power of the company to "ignore" its creditors.
Similarly, the ratio
MEDIUM AND LONG TERM FINANCIAL DEBTS / CASH FLOW
Gives the number of exercises necessary to repay financial liabilities through operating resources, ceteris paribus.
The previous ratios may be complete by:
TURNOVER / TOTAL LIABILITIES
That provides another approach of the solvency of the company and by:
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