BANKRUPTCY RISK – CENTRAL POINT IN THE FINANCIAL – ACCOUNTING DIAGNOSIS
In an competitional economy, the existence and the viability of an affair are tied up by risk in the measure in how the present and the futures results are unther the influence of unespected events. This explain and justify the interes of the financial analists in elaborating an valuation and e...
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| Format: | Article |
| Language: | English |
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Academica Brâncuşi
2009-12-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
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| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2009-03/26_GHEORGHE_HOLT.pdf |
| Summary: | In an competitional economy, the existence and
the viability of an affair are tied up by risk in the
measure in how the present and the futures results are
unther the influence of unespected events. This explain
and justify the interes of the financial analists in
elaborating an valuation and estimate diagnosis of this
inerent phenomen.
The most important utilization of the bankruptcy
point analysis refers to the business operating and
financial risks evaluation. For this reason it is
necessarly to approach the problems involving the
estimation mode of the risks degree in order to discover
the facts that generate them. The operating risk is
evaluated through the degree operating leverage,
calculated as the sensitivity of operating profit to the
sales variability. It is demonstrated that the level of this
risk is determined by the expenses structure in fixed
costs and variable costs. It is greater when the fixed
costs weight is more important.
Secondly, the financial risk is evaluated through
the financial coefficient leverage, calculated as the
sensitivity of net profit to the operating profit variability.
The level of risk is determined by the financial expenses.
It is greater when the business is financed by debts and
smaller when the equity is more important. |
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| ISSN: | 1844-7007 1844-7007 |