Analyzing The Financial Solvency Of An Algerian Company Using Financial Ratios

Abstract

In this article, we attempt to present the fundamental concepts and importance of financial management through a review of the literature, in order to analyze the financial solvency of an Algerian company using the method of financial ratios and equilibrium indicators. Our objective is to present the fundamental concepts of financial management and explore their importance through a literature review. We will focus in particular on analyzing the financial solvency of an Algerian company using the financial ratio method and balance indicators. Financial management is an essential pillar of any company, whatever its size or activity. It encompasses a set of practices and decisions aimed at maximizing the company’s value by optimizing the allocation of available financial resources. This area of management includes financial planning, liquidity management, investment, and financial risk management. Analyzing a company’s financial solvency is of vital importance to investors, lenders, managers and other stakeholders. By reviewing the existing literature on the subject, we will seek to deepen our understanding of the fundamental principles of financial management and their application in the specific context of Algerian companies. We will highlight the various financial ratios and balance indicators used to assess financial solvency, as well as their interpretation and practical use in the financial analysis process. Through this article, we aim to provide a comprehensive overview of financial management, focusing on the analysis of the financial solvency of Algerian firms. We hope this review will help readers to better understand the key concepts and practices of financial management, to apply them effectively in their own professional context