fjármagni

Fjármagni is an Icelandic term referring to the total financial resources available to fund activities, typically used to describe the capital base of a person, company, or economy. The term combines fjár- meaning money with magni meaning power, and it is used similarly to concepts such as capital, financial strength, or funding capacity in English-language finance.

In corporate or public finance, fjármagni is composed of equity (net assets), long-term and medium-term borrowings, and other capital reserves. It is distinct from liquidity, which refers to the ease with which assets can be converted to cash; fjármagni emphasizes the overall level of financial resources rather than near-term cash flow.

Applications include evaluation of solvency, investment capacity, and resilience to shocks. Higher fjármagni generally improves the capacity to undertake capital-intensive projects and weather losses, though the structure of funding (debt versus equity) and asset quality matter. Measurements are context-dependent and may rely on balance sheet data such as total equity plus long-term liabilities or other indicators defined by statisticians or analysts.

See also: capital, financial resources, equity, debt, liquidity.

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