DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH
There are several ratios which define the financial health of an organization but the importance of Net cash flow, Gross income, Net income, Pending bills, Receivable bills, Debt, and Book value can never be undermined as they give the exact picture of the financial condition. While there are severa...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2013-01-01
|
| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | http://www.econjournals.com/index.php/ijefi/article/view/310/pdf |
| _version_ | 1797913488856711168 |
|---|---|
| author | Girish K Nair Lewlyn Lester Raj Rodrigues |
| author_facet | Girish K Nair Lewlyn Lester Raj Rodrigues |
| author_sort | Girish K Nair |
| collection | DOAJ |
| description | There are several ratios which define the financial health of an organization but the importance of Net cash flow, Gross income, Net income, Pending bills, Receivable bills, Debt, and Book value can never be undermined as they give the exact picture of the financial condition. While there are several approaches to study the dynamics of these variables, system dynamics based modelling and simulation is one of the modern techniques. The paper explores this method to simulate the before mentioned parameters during production capacity expansion in an electronic industry. Debt and Book value have shown a non-linear pattern of variation which is discussed. The model can be used by the financial experts as a decision support tool in arriving at conclusions in connection to the expansion plans of the organization. |
| first_indexed | 2024-04-10T12:12:25Z |
| format | Article |
| id | doaj.art-6de0acf132ef482fb5449ba2bb46d62c |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T12:12:25Z |
| publishDate | 2013-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-6de0acf132ef482fb5449ba2bb46d62c2023-02-15T16:15:55ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382013-01-01311426DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACHGirish K NairLewlyn Lester Raj RodriguesThere are several ratios which define the financial health of an organization but the importance of Net cash flow, Gross income, Net income, Pending bills, Receivable bills, Debt, and Book value can never be undermined as they give the exact picture of the financial condition. While there are several approaches to study the dynamics of these variables, system dynamics based modelling and simulation is one of the modern techniques. The paper explores this method to simulate the before mentioned parameters during production capacity expansion in an electronic industry. Debt and Book value have shown a non-linear pattern of variation which is discussed. The model can be used by the financial experts as a decision support tool in arriving at conclusions in connection to the expansion plans of the organization.http://www.econjournals.com/index.php/ijefi/article/view/310/pdfFinancial SystemTaxable IncomeNet Income |
| spellingShingle | Girish K Nair Lewlyn Lester Raj Rodrigues DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH International Journal of Economics and Financial Issues Financial System Taxable Income Net Income |
| title | DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH |
| title_full | DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH |
| title_fullStr | DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH |
| title_full_unstemmed | DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH |
| title_short | DYNAMICS OF FINANCIAL SYSTEM: A SYSTEM DYNAMICS APPROACH |
| title_sort | dynamics of financial system a system dynamics approach |
| topic | Financial System Taxable Income Net Income |
| url | http://www.econjournals.com/index.php/ijefi/article/view/310/pdf |
| work_keys_str_mv | AT girishknair dynamicsoffinancialsystemasystemdynamicsapproach AT lewlynlesterrajrodrigues dynamicsoffinancialsystemasystemdynamicsapproach |