1, Vadim Dumitraşcu2
Abstract: Generally, the firm viability can be defined as the ability to ensure a profitable activity in terms of
financial equilibrium. Therefore, estimation of viability can be achieved by determining specific profitability
and equilibrium indicators to determine the extent to which the economic surplus released by the compan y's
activity, manages, depending on the particularities of the economic and financial structures set up, to turn into
cash. This happens because profitability alone is not sufficient to ensure the financial soundness of the
Key words: cash flow; assets; elasticity; self-financing; equity
The treasury sensitivity coefficient relevance for assessing the financial viability, is given by the fact
that its main elements can be decomposed into rates of return, of financial structure, of leverage ratio
and assets and liabilities rates, that, within the diagnosis, may provide clearly indices on the financial
situation of the firm. The relationship between financial viability and value of the company can be
highlighted by incorporating the treasury sensitivity coefficient in assessment calculations.
2. Body of Paper
A profitable company can encounter great difficulties in terms of liquidity and, generally, in the
capacity of payment. However, any company that registers a positive variation of treasury (cash flow)
is, at the same time, profitable. (Thauvron, 2007) The indicators of profitability and equilibrium allow
only an overall estimation of viability, without shading the subtle effects of specific influence factors.
An more expressive indicator could be the treasury sensitivity global coefficient (
1 Professor, PhD, “Danubius” University of Galati, Address: 3 Galati Boulevard, 800654 Galati, Romania, Tel.:
+40.372.361.102, Fax: +40.372.361.290, Corresponding author: firstname.lastname@example.org.
2 Associate Profesor, PhD, “Dimitrie Cantemir” University o f Bucharest, Romania, Address: 176 Splaiul Unirii, Bucharest
030134, Tel.: +4021 330 8931, E-mail: email@example.com.