Assignment Task
In this section we will talk about the analysis of the economic-financial structure of the company. The activity of a company includes a continuous succession of investment and financing projects whose study and analysis require a series of techniques that provide useful and necessary information for the decision-making process. A company needs financial resources to be able to invest in its productive activity. Each company needs a different financial volume and characteristics. The principal source of information about the investment and financing needs of a company are its accounting policies.
OBJECTIVES
ü Economic structure of the company: investment in current assets and noncurrent assets.
ü Capital needs of the company
ü Company’s financing sources
ü Average maturity period
Within the company, we can distinguish between the financial and economic structure (or investment). The union of both is called the economic-financial structure.
§ Financial structure of the company:
It can be defined as the composition of different financial resources that the company owns at a certain point, understanding financial resources as all necessary means that the company needs in order to carry out the investments that allow the achievement of its business goals. Amongst these resources we can find, for instance, the company’s share capital, long-term loans from a bank, suppliers of long-term fixed assets, etc.
§ Economic structure of the company:
It refers to the investments made in order to achieve goals set by the company. Here, we can find fixed assets (machinery, equipment used for the information process), raw materials, cash, etc. A Balance Sheet, as a critical instrument of information and analysis, shows these two structures through three segments: assets, liabilities and shareholder’s equity
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