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Stability Of The Financial Balance Of The Company Based On Financial Analysis Of The Cash Flow

Author

Listed:
  • Tatiana MANOLE

    (National Institute for Economic Research of the Academy of Sciences of Moldova and Ministry of Economy, Republic of Moldova)

  • Maria CIUMAC

    (UTM, Republic of Moldova)

Abstract

The research made in this article is topical because the cash flow determines the viable activity of the entity. In this article, the authors investigate how to establish a financial balance based on the correlation between real and financial flows as a result of capital movements. The concept of cash flow is investigated, since cash is the most liquid asset of the entity, ensuring its activity continuously. The financial situation of the entity is analyzed on the basis of a system of financial indicators that underpin the financial manager's optimal decisions. The research topic is actual and necessary for any entity, ensuring a viable mechanism for profitable operation.

Suggested Citation

  • Tatiana MANOLE & Maria CIUMAC, 2017. "Stability Of The Financial Balance Of The Company Based On Financial Analysis Of The Cash Flow," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 2(4), pages 180-187.
    • Handle: RePEc:brc:brccej:v:2:y:2017:i:4:p:180-187
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    References listed on IDEAS

    as
    1. Baumol, William J & Tobin, James, 1989. "The Optimal Cash Balance Proposition: Maurice Allais' Priority," Journal of Economic Literature, American Economic Association, vol. 27(3), pages 1160-1162, September.
    2. Merton H. Miller & Daniel Orr, 1966. "A Model of the Demand for Money by Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(3), pages 413-435.
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