Financial Indicators Concept

The expression Financial Indicators designates a type if indictors calculated from the financial data of a certain organization and can be expressed in absolute monetary values, relative values or variation rates, time, among others. In most situations, financial indicators seek to evaluate the company’s risk, this is, its capacity to honor its commitments in time with the third parties and include, on a long term perspective, the financial and solvability structure indicators and, on a short term perspective, the liquidity indicators.

Financial Indicators Examples:

- Liquidity (several levels): measure the company’s capacity to honor its short term financial commitments.

- Debt Level: measures the company’s external indebtedness level.

- Financial Strength (or Autonomy): measures up to which point the company’s assets are funded by self financial means.

- Fixed Assets Coverage Level: measures the level with which the fixed assets (or not current) are funded by stable capitals.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.