Having reliable financial information about the organizations is essential for corporate management. In the references there are several groups of indicators and related definitions recommended by certain authors for analyzing corporate financial situations. On the basis of the related earlier research it has been concluded that the professional validity of these indicators and their mechanical application methods are raising further questions. Therefore it is an important issue how to calculate the indicators that reflect a realistic liquidity of a company. The definition of working capital implies that the asset value decreased by provisions can not entirely be the liquidity for short-term liabilities since its release would endanger the safety of continuous production. The importance of this theory is demonstrated through agricultural examples of unfinished production.
|Pages (from-to)||31 - 34|
|Number of pages||3|
|Journal||Banks and bank systems|
|Publication status||Published - 1 Jan 2008|
- working capital