scholarly journals Overview of actions to strengthen financial stability of companies

2020 ◽  
Vol 159 ◽  
pp. 04016 ◽  
Author(s):  
Fariza Yerdavletova ◽  
Bayan Ermekbaeva ◽  
Gulnar Zhunissova ◽  
Zhanar Mukhametzhanova
Keyword(s):  
Cash Flow ◽  
Financial Stability ◽  
Cash Flows ◽  
Accounts Receivable ◽  
Financial Condition ◽  
Funding Sources ◽  
Return On Capital ◽  
Three Stages ◽  
Market Factors ◽  
Negative Factors

Based on a review of the recommendations of various scientists, the article presents measures to strengthen the solvency and financial stability of companies in various fields of production. These include effective receivables management, accelerated capital turnover, increased profits and cash flow. The article reveals the concept of financial stability as the main criteria of the company’s financial condition. As well the negative aspects of the financial condition of companies are discussed. All negative factors divided into three groups based on their characteristics: general economic factors, state factors, and market factors. The model of accounts receivable management, which includes three stages is presented. It is concluded that a high share of accounts receivable as part of assets can lead any company to loss of solvency. Ways to improve the structure of funding sources, aspects of increasing return on capital are considered. Several recommendations given to reduce the duration of capital turnover in order to increase the company’s solvency. As a factor of increasing profits a possible ways of minimizing costs are investigated. Ways of increasing production volumes are highlighted and described, measures to increase cash flow are analyzed. Considerable attention is paid to the irrational management of cash flows.

DIRECTIONS FOR DEVELOPMENT OF ANTI-CRISIS FINANCIAL MANAGEMENT

2017 ◽  
Author(s):  
Liubov Iarova ◽  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Enterprise Management ◽  
Factors Affecting ◽  
Financial Condition ◽  
Flexible Response ◽  
Relevant Topic ◽  
Potential Risks ◽  
Negative Factors ◽  
Theoretical Foundations

For continuous performance, enterprises should not only take into account potential risks and existing negative factors, but also develop methods and principles that allow timely and flexible response to crisis occurrences, as well as determine the recovery stages in an already deteriorated financial condition. Given tasks are solved by anti-crisis financial management, designed to increase the efficiency of enterprise management and facilitate the equalization or improvement of an economic entity’s financial stability, therefore, the directions of its development are a rather relevant topic in a market economy. The article examines the theoretical foundations of anti-crisis financial management, the main factors affecting the emergence of a crisis state at an enterprise, discusses the need for its development, and provides factors that determine the effectiveness of the implemented anti-crisis policy. Identifying the need to improve anti-crisis financial management and decision-making on its implementation are accompanied by an analysis that takes into consideration possible risks and costs, which determines the expected effect. The author generalizes and indicates the main principles and stages of anti- crisis management.

ANALYTICAL TOOLS AND MANAGEMENT METHOD OF CASH FLOWS AT THE ENTERPRISE

2017 ◽  
pp. 93-105
Author(s):  
Olha NIPIALIDI
Keyword(s):  
Financial Stability ◽  
Cash Flows ◽  
Sustainable Growth ◽  
Financial Health ◽  
Traditional Assessment ◽  
Financial Condition ◽  
Efficient Management ◽  
Expert Assessments ◽  
Analytical Tools

Introduction. The most important factors for “financial health” of the company are effectively structured cash flows, precondition for sustainable growth and achievement of high end results of economic activity as a whole. Knowledge and practical use of modern methods of organization and efficient management of cash flows enables transition of the company to a new quality of economic development. Purpose. The aim of the article is the research and development of theoretical, methodological and practical recommendations concerning the organization of the management process of cash flows at the enterprise. Results. Methodology of traditional assessment of financial stability of the enterprise, its elements and the factors influencing it can significantly complement and improve through the use of advanced mathematical models that allow to analyze the accuracy and objectivity of expert assessments for determination the level of the financial condition of the enterprise. Conclusion. The system of indicators used in the analysis of cash flows at the enterprises is investigated and systematized. It is advisable to choose those indicators from the total aggregate of indicators that are the most attracted to specific users of accounting information. Methods for analyzing cash flow is supplemented as regards the determination of the integral index of financial stability, which makes it possible to install ranked of the investigated enterprise. Proposals for amendments the methodological approaches to estimating of future cash flows will allow more effectively increase usefulness and reliability of accounting and analytical information for making management decisions.

scholarly journals INSTRUMENTS FOR CASH FLOW MANAGEMENT OF CONSTRUCTION ENTERPRISES

2020 ◽  
pp. 223-229
Author(s):  
Mariya Nashkerska ◽  
Nataliia Patriki
Keyword(s):  
Construction Industry ◽  
Cash Flow ◽  
Financial Stability ◽  
Cash Flows ◽  
Flow Management ◽  
Construction Enterprise ◽  
Cash Flow Management ◽  
Construction Enterprises ◽  
Payment Schedule ◽  
Definition Of

Introduction. Financial state of the construction enterprise, level of its financial stability, creditworthiness and liquidity depend on the availability of current assets, net cash flow (positive or negative), which is formed in the course of conducting payment transactions. The subject of the research is the flow of money of the construction enterprise. The research objectives: identifying the causes of current assets constraints at the construction industry enterprises; using projected cash flow budget and payment schedule as instruments of managing the enterprise cash flow. The purpose of the article is to determine the instruments for cash flow management of construction enterprises, taking into account the peculiarities of their activities. Method (methodology). The article suggests developing projected cash flow budgets and payment schedule to manage cash flows more efficiently (prevent negative net cash flow) based on estimates made by construction enterprises to determine the construction cost. The purpose of the payment schedule is to determine the flow of funds for the next day and the current week as a supplement and detailing of the projected cash flow budget. Research results. The use of the projected cash flow budget and payment schedule at the construction industry enterprises will help the management team to control the incoming and outgoing cash flows, form the data base for making decisions on the efficient use of funds. It will also promote the search for additional funding sources of the enterprise activity in the period of budget deficit as well as pre-justified investment of capital in the period of budgetary surplus Thus, the formation of projected cash flow budgets and payment schedule can be an important instrument for efficient cash flow management of construction enterprises. The method of formation of mutually agreed forecast budget of cash flow and payment calendar with definition of indicators of their efficiency in management of cash flows and a financial condition of the enterprise as a whole needs further improvement. The technique of forming mutually agreed projected cash flow budget and payment schedule along with the definition of their efficiency indicators in managing cash flows and the overall enterprise financial state requires further improvement.

scholarly journals Features of accounting and controlling accounts receivable on enterprises, institutions, organizations of Ukraine

2020 ◽  
pp. 6-9
Author(s):  
Hanna BULKOT ◽  
Maryna KHUKALENKO
Keyword(s):  
Cash Flow ◽  
Business Environment ◽  
Debt Management ◽  
Business Growth ◽  
Information Transparency ◽  
Accounts Receivable ◽  
Financial Condition ◽  
Time Period ◽  
Long Time ◽  
And Control

Introduction. In the course of business activities of the enterprise (operational, investment and financial) relations with various individuals and legal entities emerge inevitably. They include suppliers and contractors, buyers, customers, banks etc. Accounts receivable arise in the course of these relationships. The issue of receivables is relevant and important for the organization of accounting of each enterprise, especially in the current business environment in Ukraine. Receivables affect the economic activity of any organization in such a way that receivables that are not closed for a long time (so the company has doubts about its return), respectively, first of all, worsen the financial condition of the company, and there is a deterioration in cash flow. Therefore, effective arrangement of settlements should directly help strengthen contractual discipline between contracting parties, increase the responsibility of the enterprise for the time period and fulfilling all payment obligations in full, accelerate cash flow, etc. The purpose of the paper is to analyze the issue of accounts receivable and their control, to develop proposals to improve accounting and monitoring accounts receivable, which will allow to improve their reflection and control in the future, without leading to the emergence of bad debts. Results. The article is devoted to the issue of accounts receivable, their accounting and control at enterprises, institutions, organizations of Ukraine. The theoretical and practical aspects of the interaction of the enterprise with the debtors and the emergence of the receivables were explored. Ways of improving the accounting and monitoring of accounts receivable were analyzed. Issues of controlling accounts receivable by activity of the enterprise were considered. Conclusion. Thus, receivables are an important component in the operation of any enterprise. Therefore, the organization of accounting receivables at enterprises of any ownership form contributes to the ordering of information; transparency, relevance and reliability of the data obtained with the settlements with debtors. It is important to anticipate and prevent an excessive increase in accounts receivable in advance because effective debt management is one of the prerequisites for successful business activity, since it creates the preconditions for rapid business growth and increased financial capacity of the company. The control over such accounts receivable, their systematic nature and periodicity are also important, improving the operation in terms of interaction with counterparties.

scholarly journals System for evaluation of business entities financial sustainability under global challenges conditions

2021 ◽  
Vol 71 (4) ◽  
pp. 20-32
Author(s):  
M. Tatar ◽  
◽  
O. Hrebenikova ◽  
Keyword(s):  
Financial Stability ◽  
Cash Flows ◽  
Normative Values ◽  
Scoring Method ◽  
Metallurgical Enterprise ◽  
Financial Responsibility ◽  
Integrated Method ◽  
Financial Condition ◽  
Global Challenges ◽  
Business Entities

The need to ensure financial stability of businesses under global challenges conditions is highlighted in this paper. The company financial stability is one of the most important characteristics of the company financial condition, associated with the level of dependence on creditors and investors and is characterized by the ratio of equity and liabilities. The existing methodological approaches for the evaluation of the enterprise financial stability are analyzed. The evaluation of financial stability on the example of metallurgical enterprise by coefficient, score and integrated methods is carried out. The coefficient analysis shows that the most of financial stability coefficients in the dynamics have decreased and are not within the normative values. While analyzing the financial stability type, it is determined that the enterprise in 2018–2020 had unstable financial condition, which indicates solvency violation. The results of the financial stability analysis by scoring method, according to which the coefficients are assigned the appropriate score depending on the approximation to the normative indicator, led to the conclusion that PJSC «AZOVSTAL» in 2018–2020 was included to the fifth class, i.e. crisis enterprise of the highest risk, practically not solvent. The evaluation of financial stability by the integrated method, according to which the value of the integrated indicator should be closer to one, showed that the enterprise financial stability in 2018 was bad, in 2019 very bad, and in 2020 satisfactory. The measures to increase the enterprises financial stability depending on the financial stability level are proposed, particularly, for the investigated enterprise it is proposed to improve financial flow planning, implementation of real payment calendars, creation of financial responsibility centers and strengthening control over them by the holding, which always make it possible to have reliable information about the company's cash flows and increase the controllability of current payments, reduce losses from the funds misuse. It is also proposed to accelerate the turnover of enterprise resources, which will improve the overall efficiency of activities.

scholarly journals Cash flow planning at the enterprise

2021 ◽  
Vol 2021 (2) ◽  
pp. 21-28
Author(s):  
Oleh Dorosh ◽  
◽  
Iryna Plish ◽  
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Production Costs ◽  
Economic Activities ◽  
Internal Factors ◽  
Financial Investment ◽  
Financial Condition ◽  
Business Entities ◽  
Operational Activities ◽  
Definition Of

Ensuring the efficiency of production and economic activities of the enterprise requires a constant turnover of funds and effective cash flow planning. The most important component that ensures the continuous operation of the company is cash receipts and expenditures, which show the current financial condition of enterprise, are used to cover production costs, as well as ensure the solvency of the enterprise and the ability to avoid financial debts to banks, government and other business entities. Cash flow planning for domestic enterprises is particularly acute. This manifested itself in the crisis created by the Kovid-19 pandemic. The presence of a financial cushion saved a number of companies from bankruptcy, however, the consequences of an unfinished pandemic are ahead. Therefore, given the above, the relevance of cash flow planning and the formation of basic concepts on this topic is undeniable. The task of the article is to identify the features of cash flow planning of the enterprise and build a clear sequence of this process. The article analyzes the definition of "cash flow", "cash flow planning" and provides a generalized definition of these concepts. The key types of cash flows that are present in the enterprise are given. The main external and internal factors that affect the cash flow of the enterprise are presented. The process of cash flow planning is carefully researched and the sequence of cash flow planning by types of production and economic activity is developed with clear detailing of each stage, where sources of income for enterprises from financial, investment and operational activities, expenses for the same activities and opportunities for optimization are sought. increase revenue and minimize costs. The article proposes the use of such cash flow planning tools as payment calendar, schedule, planned cash flow budget. So, the formation and planning of cash flows in enterprises in today's conditions is a necessary and important process. The success of the company's operation in domestic and foreign markets depends on the rationality of planning and use of funds in enterprises.

scholarly journals Modeling and Management of Power Supply Enterprises’ Cash Flows

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 1181
Author(s):  
Darya Pyatkina ◽  
Tamara Shcherbina ◽  
Vadim Samusenkov ◽  
Irina Razinkina ◽  
Mariusz Sroka
Keyword(s):  
Multiple Regression ◽  
Cash Flow ◽  
Power Supply ◽  
Financial Stability ◽  
Methodological Approach ◽  
Cash Flows ◽  
Management Policy ◽  
Flow Management ◽  
Cash Flow Management ◽  
Cash Inflow

The purpose of the study is to assess the efficiency of cash flow management at power supply companies of the CIS (Commonwealth of Independent States) countries. A methodological approach to cash flow forecasting with the use of linear and polynomial regression has been developed. The study is based on the data provided by 12 power supply companies operating in CIS member countries. Forecasting based on the generated polynomial models of multiple regression of cash flow for the power supply companies under study confirms the strong possibility of extrapolating the studied trends to future periods. Compared to the linear model, the polynomial one confirms higher values of the determination coefficients for the majority of power supply companies. The projected volumes of cash inflow, cash outflow, and net cash flows of power supply companies with the application of the described polynomial multiple regression models have a fairly high degree of approximation. The correlations between operating cash flows and outflows, between total cash inflow and outflow of the majority of power supply companies are high. The low level of synchronization between cash inflows and outflows of the companies under study is associated with the specifics of their financial and investment activities and the cash flow management policy. It has been proven that energy enterprises’ financial stability significantly depends on the synchronization and uniformity of cash flows. The proposed methodological approach allows identifying enterprises by the criterion of riskiness from the standpoint of the synchronization and homogeneity of their cash flows.

scholarly journals INFORMATION-BASED ASSET PRICING

2008 ◽  
Vol 11 (01) ◽  
pp. 107-142 ◽  
Author(s):  
DORJE C. BRODY ◽  
LANE P. HUGHSTON ◽  
ANDREA MACRINA
Keyword(s):  
Cash Flow ◽  
Brownian Bridge ◽  
Asset Price ◽  
Random Variable ◽  
Cash Flows ◽  
Share Price ◽  
Independent Random Variables ◽  
Information Process ◽  
Noisy Information ◽  
Market Factors

A new framework for asset price dynamics is introduced in which the concept of noisy information about future cash flows is used to derive the corresponding price processes. In this framework an asset is defined by its cash-flow structure. Each cash flow is modelled by a random variable that can be expressed as a function of a collection of independent random variables called market factors. With each such "X-factor" we associate a market information process, the values of which we assume are accessible to market participants. Each information process consists of a sum of two terms; one contains true information about the value of the associated market factor, and the other represents "noise". The noise term is modelled by an independent Brownian bridge that spans the interval from the present to the time at which the value of the factor is revealed. The market filtration is assumed to be that generated by the aggregate of the independent information processes. The price of an asset is given by the expectation of the discounted cash flows in the risk-neutral measure, conditional on the information provided by the market filtration. In the case where the cash flows are the dividend payments associated with equities, an explicit model is obtained for the share-price process. Dividend growth is taken into account by introducing appropriate structure on the market factors. The prices of options on dividend-paying assets are derived. Remarkably, the resulting formula for the price of a European-style call option is of the Black–Scholes–Merton type. We consider the case where the rate at which information is revealed to the market is constant, and the case where the information rate varies in time. Option pricing formulae are obtained for both cases. The information-based framework generates a natural explanation for the origin of stochastic volatility in financial markets, without the need for specifying on an ad hoc basis the dynamics of the volatility.

scholarly journals Modern concept of interpretation of the cash flow economic essence and its classification

2021 ◽  
pp. 16-20
Author(s):  
Olha MATVIEIEVA ◽  
Olena KOSTIUNIK ◽  
Anastasiia TITARENKO
Keyword(s):  
Cash Flow ◽  
Economic Activity ◽  
Critical Analysis ◽  
Financial Stability ◽  
High Efficiency ◽  
Cash Flows ◽  
Modern Concept ◽  
Economic Entity ◽  
High Level

Introduction. At the present stage of economic development, it is impossible to imagine the activities of an economic entity in any industry without paying in cash. Today, the study of the nature of cash is one of the most promising, as increasing the efficiency of economic activity of the entity is based on maintaining its financial stability and maximizing profits, as well as the value of the entity, which is formed by organizing cash flows. Under the condition of controlling the constant movement of cash flows, businesses have the opportunity to provide a high level of economic potential. Thus, a critical analysis of the nature and classification of cash is not only relevant but also necessary. Purpose. As the concept of “cash” is not regulated at the legislative level, its essence and classification features can be explained in different ways. The purpose of the paper is to study the problems of economic essence and classification of funds, generalization and optimization of results. Results. A critical analysis of the economic essence of cash. The problems of economic essence of money and their classification are studied. The essence of the concept of “cash flow” is investigated. The results of critical analysis are generalized and optimized. Conclusion. We have the opportunity to draw the following conclusions: cash – liquid assets of the entity, including cash on hand, bank accounts, cash in transit, electronic money, deposits, etc., on which depends the financial potential of the entity, the prospect of achieving financial goals of any level and which guarantee solvency, financial stability and liquidity of the business entity; сash flows – is the economic process of receipt and expenditure of cash costs in identical and non-cash form, generated in the course of economic activity of the entity, distributed according to production needs in times and spaces to ensure solvency and high efficiency. Thus, a critical analysis of the nature and classification of cash in the process of organizing and conducting business activities, proved that the study of the nature of cash, their qualifications is not only relevant and necessary, but requires further research.

scholarly journals Cash flows of enterprises: their assessment and analysis

2018 ◽  
pp. 86-93
Author(s):  
T. Okhrymovych ◽  
L. Gutko
Keyword(s):  
Cash Flow ◽  
Financial Stability ◽  
Crop Production ◽  
Continuous Process ◽  
Flow Analysis ◽  
Research Direction ◽  
Cash Flows ◽  
Agricultural Enterprise ◽  
Dairy Cattle Breeding ◽  
Operating Activities

The processes taking place in the economy in recent decades clearly demonstrate that the economic and social stability of society depends on the financial stability of enterprises. One of the most important signs of financial stability is the ability of an enterprise to generate cash flows. The presence of money from the enterprise determines the possibility of its survival and directions for further development. Any company in the course of its activities has a need for financial resources necessary for the implementation of relationships with other legal entities and individuals. The uninterrupted circulation of cash flows in the reproduction process means the fulfillment of obligations to the budget, partners, the absence of overdue debts to the enterprise and the enterprise itself, normal solvency, necessary financial stability, creditworthiness and profitability. The cash flow of an enterprise is a continuous process. For each direction of funds use there must be an appropriate source. In a broad sense, the assets of an enterprise represent the net use of cash, and liabilities and equity are net sources. A research aim was to conduct the all-round analysis of enterprise money forming streams, estimate the degree of sufficientness and efficiency for providing of their balanced and synchronization. For realization of the put aim tasks are pulled out: to find out the value of money streams in activity of menage subjects; to conduct the analysis of certain enterprise money forming streams; to carry out the estimation of composition, dynamics and efficiency of enterprise money streams management. Research methodology is folded by the scientific methods of cognition and special, in particular, economic and statistical methods (comparison, grouping, tabular, graphic, standardizations of investigated phenomena indexes), economic and logical methods (elimination, vertical, horizontal, coefficient analysis) which provided the solution of the tasks in the chosen research direction. The article discusses the nature and characteristics of cash flows. The above classification and sources of cash flow. On the example of agricultural enterprise "Sloboda " was estimated efficiency of cash flow. The main activities of the enterprise are: the cultivation of grain crops (except rice), legumes and oilseeds; breeding dairy cattle; breeding pigs; sugar production; breeding other animals; auxiliary activities in crop production. The input streams of this company are 100% solely cash from operating activities. Having considered the structure of the PSP “Sloboda” initial cash flows for 2015-2017, we can say that the main share of cash flows from operating activities (80-90%), from investment activities – 10-20%. Conclusions were made on improving the efficiency of cash flows. With the aim to increase cash flows of private agricultural enterprise "Sloboda" management efficiency it is necessary: to attract in practice the calculation of money streams indexes system as measuring devices of financial firmness and solvency; to study area conformities of money law streams and take them into account in practice and analysis of enterprise; to determine streams in registration, including operative, and information for timely forming of the extended dataware of enterprises cash flow analysis; to perfect money streams methodology of analysis; to take into account the factors of enterprise money motion in the conditions of vagueness and risk. Key words: cash, incoming cash flows, cash outflows, cash flow analysis, efficiency, profitability, liquidity, agricultural enterprise.

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