Self-financing
Definition
A financing method for an enterprise's operations and investments carried out exclusively through its own generated financial resources (such as undistributed net profit, depreciation, or accumulated reserves). It represents the core of a firm's economic independence, offering protection against the costs of external borrowing and capital market risks.
Bilingual Equivalents
- Self-financing
- Internal funding
Grammatical & Source Details
| Inflection Type | Feminine noun with standard plural and case ending declension structures. |
| Formation | Noun of action derived from the verb 'autofinanța' using the suffix '-re'. |
| Spelling / Pronunciation | [a.u.to.fi.nan.ˈt͡sa.re] |
| Source | Encyclopedia of Corporate Finance and Financial Accounting Standards |
Contextual Usage Examples
RO: Strategia bazată pe autofinanțare a permis startup-ului să își mențină controlul total asupra deciziilor fără presiunea investitorilor.
EN: The strategy based on self-financing allowed the startup to maintain full control over decisions without pressure from investors.
RO: Analistul a calculat indicatorul de autofinanțare pentru a evalua dacă firma poate susține noua fabrică fără credite.
EN: The analyst calculated the self-financing ratio to evaluate whether the firm can sustain the new factory without loans.
RO: Prin procesul de autofinanțare, amortizarea activelor este transformată direct într-o sursă internă de lichidități.
EN: Through the process of self-financing, the depreciation of assets is transformed directly into an internal source of liquidity.
Idioms & Phrases
Capacitate de autofinanțare / Self-financing capacity / cash flow from operations
RO: Resursa financiară globală brută generată de o entitate economică, destinată acoperirii investițiilor și stingerii datoriilor.
EN: The gross global financial resource generated by an economic entity, destined to cover investments and settle debts.
Autofinanțare netă / Net self-financing / net self-funding
RO: Partea din resursele interne rămase după ce din capacitatea totală de autofinanțare s-au scăzut dividendele distribuite.
EN: The portion of internal resources remaining after distributed dividends are subtracted from the total self-financing capacity.
Autofinanțare integrală / Full self-financing / 100% self-funding
RO: Model de gestiune în care cheltuielile de dezvoltare și cele operaționale sunt acoperite în totalitate din profitul curent.
EN: A management model where development and operational expenditures are fully covered by current profit.
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