By Hugo Ribeiro, Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting
Introduction to Cash Management and Capital Structure In the current 2026 economic context, financial management for Portuguese companies faces constant challenges, from interest rate volatility to inflationary pressure on operating costs. For any manager, accountant, or tax consultant, a deep understanding of liquidity and solvency indicators is not just a technical requirement, but a strategic survival necessity. These indicators are the thermometer of an organization's financial health, allowing for the anticipation of cash crises and the assessment of long-term sustainability. Liquidity fo…
Key Takeaways
Ideal current liquidity should be above 1.2 for operational safety.
Financial autonomy impacts interest deductibility in IRC (Art. 67).
Positive working capital indicates permanent capital finances fixed assets.
CSC requires monitoring equity to avoid company dissolution.
FAQ
What is a healthy current liquidity ratio?
Generally, a value between 1.2 and 1.8 is considered healthy, indicating sufficient current assets to cover short-term debts comfortably.
What is the difference between liquidity and solvency?
Liquidity focuses on short-term payment capacity (cash flow), while solvency assesses the ability to pay all long-term debts.
How does IRC affect indebtedness?
Article 67 of the CIRC limits the deduction of financing expenses, which can increase taxes for highly indebted companies.
What happens if equity is less than 50% of the share capital?
Under Article 35 of the CSC, managers must call a meeting to take measures, such as capital increase or reduction.