Movement balance

What is a movement balance?

The movement balance results from the comparison of two successive balances. As a time-related instrument, it enables information to be obtained about the flow of a company's financial resources.

Movement balance as part of the dynamic liquidity analysis

It is used in the context of dynamic liquidity analysis, but can also be used to make statements about the company's entire financial management.

In principle, the following movements occur between two balance sheet dates:


• Assets may increase; B. by purchasing a machine, and the liabilities can decrease, z. B. by repaying a loan. In both cases it is a question of the use of funds.

• In order to be able to use funds, it is necessary to have them available. Their origin can be derived from the purchase of assets, e.g. B. by reducing bank balances, and resulting from the increase in liabilities, z. B. by taking out a loan.


In the balance of movements, all increases in assets and decreases in liabilities as the use of funds are compared with the total decreases in assets and increases in liabilities as sources of funds:

The use of funds and the source of funds must correspond, since each use requires a source of funds. Depending on the purpose of the statement of the movement balance, the balance sheet items are broken down differently. A further development of the movement balance is the Cash flow statement

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