2015-06-16
Financing by loans Financing by loans
to oblige sb with a loan
to transfer the ownership
a loan
" "By giving a loan into a loan agreement
agreement
undertakes to transfer the ownership of
taking a certain amount of money or things
2 parties to an
undertaking
agreement
and taking undertakes to return the same
- giving a loan
amount of money or things& 
- taking a loan
(of the same species and the same quality he took)
to return the same amount of
[Civil code, art.520]
money or things
Barbara Kowal: Analiza finansowa, wykład Barbara Kowal: Analiza finansowa, wykład
3. Internal and external sources of financing
The theory of the hierarchy of sources of funding
" Companies prefer ext. sources of financing that are
Entrepreneur s bankruptcy
directly at their disposal
" If int. sources of funding are insufficient compared to
the needs - company go back to the ext. sources, but
in the first instance by incurring liabilities
(bank credits, loans)
" Least preferred is to increase Equity from external
sources.
Barbara Kowal: Analiza finansowa, wykład
Bankruptcy Bankruptcy
" To the court has declared bankruptcy, but the debtor's
" It is regulated by the Law dated. 28 February 2003
assets must be sufficient to cover the costs of
Bankruptcy and Reorganization Law
bankruptcy proceedings
" The court can open insolvency proceedings, but the
" Announced by the court
bankruptcy petition is needed
" Means the situation when the "debtor becomes
They have
CREDITOR /S
insolvent or permanently ceases to pay the the right
debts and its assets are less than the sum of
DEBTOR Is obliged to
all commitments"
=
must to
Barbara Kowal: Analiza finansowa, wykład Barbara Kowal: Analiza finansowa, wykład
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2015-06-16
The most common signs of deteriorating situation
a decrease in the shares of companies in the market (revenues)
!
the deterioration of the profitability indicator => due to
This is an entrepreneur,
decreasing profit tendentious
BANKRUPT
who is not able to continue its
the company problems with liquidity
business without granting him
an increase of financial costs
outside help
" Debt relief
layoffs
" Deferral of repayment
" A settlement bank in terms of debt
significant turnover of staff in key positions
restructuring
decline in the quality of products or services offered +
" Rrecapitalization
+ an increase in complaints of this title
" Transfer of undertakings
Barbara Kowal: Analiza finansowa, wykład Barbara Kowal: Analiza finansowa, wykład
Symptoms of bankruptcy Early warning systems
1. The search of dry land (rats leave the
" estimation of the financial health of the company
sinking ship first)
" early diagnosis deteriorating situation that might lead
2. Bitter tea - no sugar, no toilet paper, no
to bankruptcy
coffee
" appropriate repair processes
3. Outdated equipment and software
" objective = RISK RECOGNITION
4. Falling share prices (sp. Listed on the Stock
/identification of the least predictable
Exchange)
phenomena and processes/
5. Boredom at work
Barbara Kowal: Analiza finansowa, wykład Barbara Kowal: Analiza finansowa, wykład
Early warning systems Discriminant function
" estimation the company's situation is based on the
system of indicators - the basic instrument of
business management
" the EWS uses these indicators that may be predictive
where:
of changes in the future
Z - the value of the discriminant function
" they are often used aggregate indicators that make a
w1, & , wn  the weight of each variable
synthetic evaluation of the company
X1,& , Xn  model explanatory variables
" to estimate the risk of bankruptcy  analysts use a
wc  a constant parameter
combination of statistical methods of ratio analysis
Barbara Kowal: Analiza finansowa, wykład Barbara Kowal: Analiza finansowa, wykład
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