Analysis of financial stability

The growth of the overall value of assets is always a sign, result, and consequence of the development and expansion of business activity, that is of a successful use of assets. It reflects the strengthening of the economic power of the company, while the growth of the value of short-term assets reflect the strengthening of the financial power of the company. The reduction of the value of assets has the opposite meaning, unless it is about changes managed beforehand, which result in the removal of redundant, unused assets from the company.

The goal of the analysis of financial stability is to determine the ways of financing and the development of proper relations between the assets and the capital.

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