In the life of a company, the acquisition of new equipment is a key stage in growth. However, a crucial question often arises when analyzing the balance sheet: how does financing this investment affect the organization's financial structure?<\/b><\/p>\n
Today, we take a look at a classic case from our series \u00abAccounting Genius\u00bb<\/b>.<\/p>\nThe problem<\/h3>\n
\u00abIf a company buys a machine via a bank loan, what is the immediate impact on its Global Net Working Capital (GNWC)?\u00bb<\/p>\n
To answer this question, we need to return to the basic mechanics of the functional balance sheet. The FRNG<\/b> represents the excess of stable resources over stable uses.<\/p>\n1. Stable jobs movement<\/h3>\n
The purchase of a machine is an acquisition of fixed assets. This flow increases the fixed assets on the balance sheet. We therefore have a increase in stable jobs<\/b>.<\/p>\n2. Movement in Stable Resources<\/h3>\n
The bank loan (generally long or medium-term) is used to finance the purchase. It is included in long-term financial debts. We therefore have a equivalent increase in Stable Resources<\/b>.<\/p>\nThe Verdict: Zero impact!<\/h3>\n
The immediate impact on the FRNG is nil (unchanged)<\/b>.<\/p>\n
Why?<\/b> Because the operation balances out perfectly at the top of the balance sheet. If the machine costs 10,000,000 FCFA and the loan is 10,000,000 FCFA, the mathematical formula remains stable.<\/p>\n
FRNG = Stable Resources ( +10M) - Stable Jobs ( +10M)<\/em><\/strong><\/p>\n The surplus resources exactly cover the new use. Global Net Working Capital is therefore neither deteriorated nor improved.<\/p>\n Financing a fixed asset with a bank loan preserves the asset's Net cash position<\/b>. If the company had bought the machine with its own funds (cash), the FRNG would have fallen, weakening its financial safety margin.<\/p>\n Balance sheet analysis cannot be improvised. At Inov CGA<\/b>, We'll help you read your indicators so you can make more informed management decisions.<\/p>\n \ud83d\udccc Need personalized advice?<\/b><\/p>\n Contact our experts today:<\/p>\n \ud83d\udcde WhatsApp: +237 697 800 494<\/b><\/p>\n Inov CGA: Accounting intelligence at the service of your ambition.<\/i><\/p>","protected":false},"excerpt":{"rendered":" Dans la vie d’une entreprise, l’acquisition de nouveaux \u00e9quipements est une \u00e9tape cl\u00e9 de la croissance. Cependant, une question cruciale se pose […]<\/p>\n","protected":false},"author":4,"featured_media":1634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3,6,58],"tags":[71,72,4,62,76,70,73,60,75,44,74],"class_list":["post-1632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-comptabilite","category-entrepreneuriat","category-fiscalite-administration","tag-bilan-comptable","tag-calcul-du-frng","tag-cga","tag-comptabilite-financiere","tag-cycle-dinvestissement","tag-emprunt","tag-financement-par-emprunt","tag-gestion-dentreprise","tag-haut-de-bilan","tag-inovcga","tag-ressources-stables-et-emplois-stables"],"yoast_head":"\nWhy is this a prudent strategy?<\/h3>\n
Would you like to optimize your company's financial structure?<\/h3>\n