The Balance Sheet is a photograph of the company, where the values of assets and liabilities are classified as current and non-current: current values are those that fall due by the end of the year following the publication of the statement, and non-current values mature in the later years.
This classification makes it possible to highlight the company's equity situation, showing its ability to transform its assets into cash and thus honor its liability commitments, in the event of its liquidation.
The Dynamic Model approach Mobile Number List requires the restructuring of the Balance Sheet into its short-term components and by nature of the transactions, so that liquidity measures and financial structures that denote different levels of risk can be extracted.
After reorganizing the Balance Sheet, the described accounts can then be related and, based on that, calculate the indicators that are the basis of the Model:
Working Capital Need (NCG)
Net Working Capital (CCL)
Treasury Balance (T).
Some accounts, when analyzed separately or in relation to the set of other accounts, show such slow movement that they can be considered as permanent or non-cyclical. Others, on the other hand, present a continuous and cyclical movement well in accordance with the company's operating cycle. There are others, finally, that present discontinuous or erratic movement, with nothing or almost nothing related to the operational cycle.
To use the Dynamic Model, it is necessary to reclassify the balance sheet current accounts, both assets and liabilities, into operational (or cyclical) and erratic (or financial current) accounts. The non-current assets and liabilities accounts plus shareholders' equity form the permanent (or strategic) accounts.
See also: DRE: what it is, how it works and how to apply it in your industry
operating accounts
Operating accounts are the assets and rights necessary for the company's operation, with the main values being accounts receivable from customers and investments in raw material inventories, products in progress and finished products. Operating liabilities are obligations arising directly from the company's operating activities, such as amounts payable to suppliers, salaries and charges payable, taxes payable on productive activity (taxes on billing, such as: ICMS, PIS/COFINS, IPI ).
non-current accounts
Non-current accounts are hardly related to the production process, in the short term, being of a permanent nature.
Non-current assets include long-term receivables and permanent assets (investments, fixed assets and intangibles). Non-current liabilities include long-term liabilities and shareholders' equity, resources from partners or shareholders.