Cash Flows and Reserve of Elasticity

The topic of the paper is the liquidity as the ability of firm to face at all times payment obligations arising from the unfolding of management. This ability is usually assessed with the financial statements, however, not have a short-term perspective and consider only tangible aspects. Hence the reason and the question of this work that suggests a new way to study and estimates if the firm is able to meet its cash commitments without compromising the performance of the management. According to this way, it is necessary to estimate the financial imbalance in the short terms and maintain a sufficient degree of financial elasticity. On this basis, the paper, in particular, examines the forecast cash flows dynamics of a given numeral example, to demonstrate that a firm can have a monthly financial imbalance even if it has an annual financial balance, and then, it concludes explaining the reserve of elasticity, as the intangible tool that allows management to face unexpected changes of cash flows