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Financial Soundness of the Company

Authors: Tiago Batista Romão;

Financial Soundness of the Company

Abstract

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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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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