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Diagnosis Of Financial Liquidity And Solvency - Tool Of The Appreciation Of The Entity Paying Capacity

Author

Listed:
  • HADA IZABELA DIANA

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

  • MIHALCEA MIHAELA MARIA

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

  • DOHAN (LITAN) CRISTINA SUSANA

    (1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA)

Abstract

In the economic area that enables entities is often assailed by numerous changes: economically, socially, and financially. In a competitive environment entities must know resources to assess risks that may affect the activity, to fix the vulnerability in the face of the economic environment, to measure weaknesses, opportunities for development, thus leading to the smooth implementation of the objectives and the development of the enterprise. The main purpose of this article is to those out to the importance of diagnosis of the liquidity and financial solvency, as ameans of appreciation the payment capacity of the entity, both short-term and long-term. Research shows us that the diagnosis gives us a realistic view of the entity paying capacity by identifying strengths and weaknesses in terms of liquidity and solvency of the entity. The diagnosis of the two components constitutes a preventive measure against the risk of insolvency, to be used by policymakers for substantiation.

Suggested Citation

  • Hada Izabela Diana & Mihalcea Mihaela Maria & Dohan (Litan) Cristina Susana, 2018. "Diagnosis Of Financial Liquidity And Solvency - Tool Of The Appreciation Of The Entity Paying Capacity," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 187-192, December.
    • Handle: RePEc:cbu:jrnlec:y:2018:v:special:p:187-192
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    References listed on IDEAS

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    1. Davide Dottori & Giacinto Micucci, 2018. "Corporate liquidity in Italy and its increase in the long recession," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 981-1014, December.
    2. Izabela Luiza POP, 2017. "Financial Diagnosis as a Tool of Improving the Performance of an Organisation," North Economic Review, Technical University of Cluj Napoca, Department of Economics and Physics, vol. 1(1), pages 291-302, October.
    3. Vasile DEAC & Florin Alexandru DUNÃ, 2012. "Diagnosis Of The Internal Strategic Context Of The Company Strategic Analysis," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 2(2), pages 25-34, June.
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