
doi: 10.2139/ssrn.1957195
For any investor, creditor or analyst it’s always important to know the level of financial soundness of the company he’s evaluating, currently there are some methods which refer to the health of the company but none actually tests the soundness nor is there a model that not only submits the company to a Stress Test but even calculates a value for that Soundness. In this thesis we present a model that allows us to know the value of financial soundness of the company, focusing on areas like, Operational, Balance and Internal Fund Generation, by testing the resilience of the company's increased costs, decreased revenue, devaluation of assets and also the deterioration of its liquidity. We also present ratios and indicators useful for the analysis of the soundness and allow it’s comparison with other companies and sectors.
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