What happened to financial stability afterwards?
Posted: Sat Feb 01, 2025 5:17 am
What happened to financial stability afterwards?
It seems that everything is fine in company "A", the indicators are good, it is stable. But one day the shareholders decided to pay dividends at the expense of the greater part of the profit received last year. To do this, they had to take out an additional loan from the bank. After such manipulations, the balance took the form.
Balance sheet of enterprise "A" after payment of dividends to shareholders:
Balance sheet of enterprise "A" after payment of dividends to shareholders
Financial stability indicators have changed:
Autonomy coefficient = 125/203 = 0.62;
Financial stability coefficient = (125 + 30) / 203 = 0.76;
Quick ratio = (12 + 3 + 1) / 48 = 0.33;
Equity capital maneuverability ratio = (125 – 162) / 125 = - 0.3.
It can be seen that the financial egypt email list independence ratio and the stability indicator have normal values, but the maneuverability and liquidity ratios have become unsatisfactory.
That is, there are no own working capital at all, and highly liquid assets allowed to cover only a third of all short-term liabilities. Obviously, paying such a large sum at once was not entirely justified, and led the enterprise to the threat of failure to pay off current debts if there was a sudden drop in sales or a production failure. The financier in that situation should not have taken a new loan, but should have argued to the shareholders a more correct solution, safe for their business, and convinced them to accept it.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the .
It seems that everything is fine in company "A", the indicators are good, it is stable. But one day the shareholders decided to pay dividends at the expense of the greater part of the profit received last year. To do this, they had to take out an additional loan from the bank. After such manipulations, the balance took the form.
Balance sheet of enterprise "A" after payment of dividends to shareholders:
Balance sheet of enterprise "A" after payment of dividends to shareholders
Financial stability indicators have changed:
Autonomy coefficient = 125/203 = 0.62;
Financial stability coefficient = (125 + 30) / 203 = 0.76;
Quick ratio = (12 + 3 + 1) / 48 = 0.33;
Equity capital maneuverability ratio = (125 – 162) / 125 = - 0.3.
It can be seen that the financial egypt email list independence ratio and the stability indicator have normal values, but the maneuverability and liquidity ratios have become unsatisfactory.
That is, there are no own working capital at all, and highly liquid assets allowed to cover only a third of all short-term liabilities. Obviously, paying such a large sum at once was not entirely justified, and led the enterprise to the threat of failure to pay off current debts if there was a sudden drop in sales or a production failure. The financier in that situation should not have taken a new loan, but should have argued to the shareholders a more correct solution, safe for their business, and convinced them to accept it.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the .