EIRP Proceedings (May 2014)

Diagnosis of the Viability of Industrial Companies with Treasury Sensitivity Coefficient

  • Bogdan Andronic,
  • Vadim Dumitraşcu

Journal volume & issue
Vol. 9, no. 1
pp. 193 – 199

Abstract

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Generally, the firm viability can be defined as the ability to ensure a profitable activity in terms of financial equilibrium. Therefore, estimation of viability can be achieved by determining specific profitability and equilibrium indicators to determine the extent to which the economic surplus released by the company's activity, manages, depending on the particularities of the economic and financial structures set up, to turn into cash. This happens because profitability alone is not sufficient to ensure the financial soundness of the company.

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