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 Methodological Aspects of the Internal Control Organization at the Enterprise and Financial Stability Analysis

2021 ◽  
Vol 11 (2) ◽  
pp. 1795-1813
Author(s):  
Nodira B. Abdusalomova
Keyword(s):  
Internal Control ◽  
Financial Stability ◽  
Scientific Article ◽  
Accounting System ◽  
Economic Activities ◽  
Financial Condition ◽  
Definition Of ◽  
Key Indicators ◽  
Methodological Aspects

The author analyzes the internal control organization in the management accounting system in this scientific article. In addition, the article is devoted to the definition of internal control and determination of the role of internal control in the financial and economic activities of the enterprise. As a result of the research, the author has developed proposals to analyze the key indicators, financial condition and profitability indicators reflected in the financial statements of the enterprise and to implement the process of planning internal control on the basis of improved stages. Moreover, the theoretical and methodological bases of the internal control system have been identified, ways to improve its reliability have been determined, and the method of organizing internal control in reliance upon the information system to raise production and sales, as well as to reduce costs has been proposed.

scholarly journals Pest-Method Development to Assess the Financial Stability of Logistic Companies

2019 ◽  
Vol 9 (1) ◽  
pp. 4597-4601
Keyword(s):  
Financial Stability ◽  
Method Development ◽  
Qualitative Assessment ◽  
Internal Environment ◽  
Economic Activities ◽  
Financial Condition ◽  
Expert Assessments ◽  
Quality Of Products ◽  
Effective Development ◽  
The Impact

Financial stability and solvency of the company is a guarantee of effective development and the basis for making effective management decisions by management. This approach to business planning makes it possible to conduct a qualitative assessment of operating and investment activities and reflects the ability to timely repay its debt obligations. In Russian and world practice, there are many approaches to assessing the financial condition, however, the peculiarity of our study is the use of methodological tools that allow us to assess the profile of the organization when assessing the external and internal environment of the company. The paper identifies the elements of the macroenvironment, types of financial stability of the organization. Based on the system of expert assessments for PEST-metod, environmental factors are determined, including the probability of an event, the impact on the organization, the direction of influence, and the degree of importance. The assessment is based on conditions of an economic, political, socio-cultural and technological nature. This technique is a systematic approach to the study of the influence of conditions that form the external and internal environment of the company, market and production factors on the quantity and quality of products, services rendered. The results of the study indicate possible prospects for the development of further economic activities of the organization in the selected functioning environment.

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.

FORMATION OF THE SYSTEM OF INDICATORS OF FINANCIAL STABILITY OF THE AVIATION INDUSTRY ENTERPRISES

2018 ◽  
Author(s):  
Inna Koshara ◽  
◽  
Yuliia Rusina ◽  
Dmytro Kovalenko ◽  
◽  
...  
Keyword(s):  
Financial Stability ◽  
Aviation Industry ◽  
Legal Capacity ◽  
Passenger Demand ◽  
Financial Condition ◽  
Modern Development ◽  
Effective System ◽  
High Degree ◽  
Financial Losses

Essence and features of the system of financial stability of enterprises of aviation industry of Ukraine is certain. The enterprises of the aviation industry of Ukraine occupy a special place in the development of the country's economy. Taking into account the peculiarities of the aviation industry, the financial stability of an enterprise is the ability of an aviation enterprise to function on the basis of effective management of financial resources through an adequate response to changes in the external and internal environment. The main conditions for ensuring the financial stability of aviation industry enterprises are: the provision of assets with a high degree of liquidity; predominance of own sources of property formation over borrowed and borrowed ones; continuity of business activities; legal capacity and legal capacity of a legal entity. The analysis of indexes of estimation of modern development of aviation industry of Ukraine status is carried out. Based on the study, we note that the aviation industry of Ukraine in 2021 is focused on the same problems as during the second half of 2020: managing daily financial losses, improving safety and offering attractive prices aimed at returning passenger demand, as causes the need to build a more effective system for assessing and managing the financial condition of enterprises in a particular industry. Separate conclusions are formed in relation to determination of separate terms of the use of indexes of financial stability taking into account the modern state of aviation industry of Ukraine. Presented recommendation in relation to the process of management financial stability on the enterprises of aviation industry of Ukraine taking into account the modern terms of menage.

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.

FINANCIAL CAPACITY OF ROAD ENTERPRISES — AS ONE OF THE CRITERIA FOR PARTICIPATION IN THE PROCUREMENT PROCEDUR

2021 ◽  
Vol 2021 (24) ◽  
pp. 8-19
Author(s):  
Artem Bezuglіy ◽  
◽  
Ihor Hresko ◽  
Olena Belska ◽  
Valentyna Kontseva ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Financial Statements ◽  
Normative Values ◽  
Economic Activities ◽  
Financial Capacity ◽  
Financial Condition ◽  
The Future ◽  
Procurement Procedure

Introduction. Financial capacity is a complex concept that is influenced by various financial and economic factors and is determined by the ability of the enterprise to perform its financial activities. One of the qualification criteria provided in [1] is the financial capacity availability, which is confirmed by financial statements. When fulfilling this criterion, enterprises are allowed to participate in the procurement procedure for performing of road works or services. Today, the analysis of financial condition according to the financial statements is a needed condition for evaluation the quality of financial and economic activities of the enterprise, and the determination of financial capacity of enterprises is essential and practical, because the economic level of the enterprise and the ability to analyze financial and economic activities depend on it. Problem statement. Requirements to the tender documents are set by the customer in order to verify the bidder, his ability to ensure the implementation of the procurement project and meet all the needed requirements. The customer needs to make sure that the public funds spent on the purchase will not be lost due to the financial problems of the contractor, as well as whether the contractor has sufficient financial capacity to perform road works. The criterion of financial capacity can be applied to any procurement, because it provides confirmation of the financial capabilities of the bidder. The need to consider this topic is to evaluate the financial capacity of road enterprises, the application of theoretical and practical approaches during the evaluation. Assessing and determining the level of financial capacity of road enterprises is an important task both in view of the needs of the enterprises themselves and in view of the customers of road works and services. Purpose. The purpose of the article is to highlight the theoretical and practical approaches to evaluation of the financial capacity of road enterprises, determination of the effectiveness of their activities based on the results of the evaluation and determination of bidders that will be allowed to participate in the procurement procedure. Given the need to establish the level of financial capacity as a result of the road company’s realization of its potential, it is important to identify and justify specific indicators of financial capacity and proposals for their practical application. Materials and methods. To determine the financial capacity of road enterprises, a set of scientific and methodological tools, economic and mathematical techniques and methods based on financial and statistical information about the activities of enterprises and indicators that affect it is used. In general, the procedure for evaluation of the financial capacity of road enterprises involves the following stages: collection of needed information and data on specific indicators that will characterize the financial state of the enterprise; calculation of indicators; comparing them with normative values. The financial statements of enterprises contain information on the state of enterprise finances, based on the analysis of which the main trends in the formation and use of financial resources of the enterprise, the reasons for changes, identifying strengths and weaknesses of the enterprise are determined, as well as reserves to improve financial condition in the future. It is for the assessment of the financial capacity of road enterprises a set of indicators for analyzing the financial condition of the enterprise is formed. Financial reporting data serve as a basis for calculating indicators. Results. The paper highlights the mechanism for evaluation of the financial capacity that will help to perform a comprehensive analysis of the financial activity of road companies and determine whether the company is allowed, given its financial capabilities, to participate in road works or services procurements. Evaluation of financial indicators and ratios will help for planning and forecasting the future activities of road companies for their participation in the procurement procedure for road works or services. Conclusions. When writing of the article provides an example of evaluation of the financial capacity, as well as its significance for the activities of road enterprises is determined. The coefficients and indicators proposed in the work can be used for objective evaluation of the financial capacity of road enterprises and will allow the following: to determine the degree of solvency of road enterprises, liquidity, the level of their financial stability and business activity, to determine their creditworthiness.

EFFICIENT USE OF FINANCIAL RESOURCES OF THE ENTERPRISE

2020 ◽  
Vol 4 (10) ◽  
pp. 37-42
Author(s):  
O. S. LOSEVА ◽  
◽  
S. M. MOLCHANOVA ◽  
Keyword(s):  
Capital Structure ◽  
Cash Flows ◽  
Economic Benefits ◽  
Sustainable Growth ◽  
Financial Resources ◽  
Financial Flows ◽  
Financial Condition ◽  
Composition Structure ◽  
Effective Use ◽  
Market Relations

The article discloses the issues of analyzing the financial resources of an enterprise, the use of which is aimed at increasing future economic benefits and meeting the needs of an enterprise of a financial nature, ensuring the projected rates of sustainable growth and competitiveness of companies. It is noted that the above definitions of the essence of "financial resources" in the educational literature do not fully characterize their economic content, and the process of formation of financial resources, composition, structure, volume is determined by the size of production and the financial condition of the enterprise. The methods of formation of financial resources, elements of the liquidity and solvency management system, including, in addition to the formation of the flexibility of the capital structure, the procedure for planning cash flows, managing ac-counts receivable and the efficiency of using funds, are considered. The authors show the optimal capital structure that provides the necessary balance between the amount of equity and borrowed capital. It has been substantiated that the effective use of sources of financing for modern enterprises is necessary for the effec-tiveness of the management of financial flows of modern companies and the sustainable financial position of an enterprise in the conditions of market relations.

scholarly journals ASSESSMENT OF THE MANAGEMENT SYSTEM OF THE FINANCIAL STABILITY OF THE ENTERPRISE IN THE MODERN CONDITIONS OF MANAGEMENT

2020 ◽  
Vol 11 (87) ◽  
Author(s):  
Victor Ganin ◽  
Ruslan Aliekpierov ◽  
Keyword(s):  
Management System ◽  
Financial Stability ◽  
Methodological Approach ◽  
Cash Flows ◽  
Enterprise Management ◽  
Economic Activities ◽  
Financial Condition ◽  
Economic Decisions ◽  
Enterprise Management System ◽  
Financial Balance

The activity of enterprises in market conditions, increasing competition, the emergence of crisis situations and the growing number of bankruptcies require the provision of traditional methods and techniques of crisis management. For the integrity of the economic system of the enterprise is important to make economic decisions regarding the management of income and expenses, movement of assets, capital and cash flows, management of capital structure and other aspects of its activities. Managing financial stability is one of the most important tasks for business in today's economic environment. In the modern economic literature, much attention is paid to the analysis and management of financial stability, but there is no single methodological approach to the interpretation of the essence of the concept of "financial stability". Under the financial stability of the enterprise is understood the property of the enterprise, which is reflected in the interaction of external and internal factors that affect the achievement of financial balance and ability not only to maintain the proper level for some time, but also to function and develop. Today, one of the main problems of enterprises is the lack of a holistic strategy aimed at ensuring the sustainability of financial and economic activities of the enterprise and sustainable development in the future. The financial problems faced by enterprises are largely identical in their economic essence, and therefore their solution is possible with the help of universal tools and standard measures that form the mechanism for managing the financial stability of the enterprise. This article discusses the importance of financial stability in the activities of enterprises, also describes the main approaches to determining financial stability, in addition, this article contains some recommendations for strengthening and controlling the financial condition of the organization. The enterprise management system is considered, which allows to determine the main and auxiliary goals that characterize the level of its financial stability. As a result of the analysis the main factors influencing these categories of a financial condition of the enterprise have been defined.

scholarly journals MANAGEMENT OF FINANCIAL SUSTAINABILITY OF THE ENTERPRISE

2020 ◽  
Vol 2 (47) ◽  
pp. 147-155
Author(s):  
Masalitina V ◽  
◽  
Gorobinska I ◽  
Mykitko V ◽  
◽  
...  
Keyword(s):  
Financial Stability ◽  
System Analysis ◽  
Cash Flows ◽  
Management Policy ◽  
Financial Sustainability ◽  
Financial Condition ◽  
Analysis And Synthesis ◽  
Object Of Study ◽  
High Level ◽  
Constituent Elements

The article is devoted to the development of a mechanism for managing the financial stability of an enterprise, to determine its constituent elements and stages of its formation. The topicality of the chosen topic is explained by the fact that financial stability is one of the main conditions of vital activity, development and ensuring a high level of competitiveness of the enterprise, it affects the stability of the financial condition, the ability to fulfill their obligations; lack of financial sustainability can lead to loss of solvency of the enterprise, destruction of strategic potential and threat to its financial security. The object of study is the financial sustainability of the enterprise. The purpose of the study is to develop directions for improving the management system and measures to improve the level of financial stability of the enterprise through the study of theoretical and practical aspects of the problem. Research methods are the method of cognition, the method of system analysis, the method of analysis and synthesis, as well as the method of comparison. In the course of the research the mechanism of management of financial stability of the enterprise is developed, its main constituent elements are determined, the stages of its implementation are analyzed, specific tools that can be used in its implementation are studied, the main tasks of financial stability management are summarized and the indicators of evaluation of the degree of their fulfillment are summarized. The process of implementation of the mechanism of ensuring the financial stability of enterprises should be aimed at the solution of the main goals and objectives: ensuring the balance of assets and liabilities implies sufficient capital, flexible capital structure, organization of capital movements, provision of own capital to finance current assets; ensuring a balance of income and expenses implies a sufficient level of profitability, changing the structure of the expense of the economic process, increasing the volume of turnover; ensuring cash flow balances involves ensuring solvency, self-financing and creditworthiness, reducing receivables. Conclusions - the need for constant balancing of assets and liabilities, income and expenses, positive and negative cash flows is at the heart of the financial stability management policy. Solving the issue of financial stability will allow you to make effective management decisions on the choice of strategy for financial development and will lead to the stabilization of the economic situation and increase the efficiency of the enterprise. KEYWORDS: FINANCIAL SUSTAINABILITY, MANAGEMENT OF FINANCIAL SUSTAINABILITY, MECHANISM OF MANAGEMENT OF FINANCIAL SUSTAINABILITY.

scholarly journals ANALYSIS OF THE FINANCIAL CONDITION OF A TRADE ENTERPRISE

2020 ◽  
Vol 288 (6) ◽  
pp. 27-31
Author(s):  
O. Yelisyeyeva ◽  
◽  
А. Nikolaeva ◽  
Keyword(s):  
Financial Stability ◽  
Gradual Increase ◽  
Internal Audit ◽  
Cash Flows ◽  
Early Prevention ◽  
Economic Activities ◽  
Financial Activity ◽  
Financial Condition ◽  
External Sources ◽  
The Common

In today’s economic environment, much attention is paid to the company’s partnerships, which, in turn, arise with counterparties. Accounting for settlements with counterparties is of great importance for any company that is active in a market economy, as each company that conducts financial and economic activities, in the process of its operation makes settlements with counterparties: with customers – for their products, with customers – for work performed and services rendered. An important issue in the organization of settlements with counterparties is the organization of internal audit of receivables and payables. This issue is due to the common problem of non-payment and is associated with the existence of insufficient accounting in the structure of the business entity. Settlements with counterparties are inextricably linked to incoming and outgoing cash flows, which form the basis of the process of ensuring the continuous operation of economic entities. The article studies activity of a trade enterprise. The main indicators of financial condition assessment, the main types of assets and liabilities of the enterprise were considered over the last three years, management of the enterprise financial activity has been estimated on the basis of coefficients of liquidity and security of own working capital. The value of the calculated coefficients by years shows their positive dynamics, well above the norm, which indicates the financial stability of the company and the ability to be active even in the absence of access to borrowed funds and external sources of funding. In order to determine the symptoms of the critical financial condition of the enterprise, the bankruptcy was assessed for its early prevention according to O. Tereshchenko’s model, which employs the methodology of discriminant analysis. The calculation according to the model showed a gradual increase of the indicator, which confirms the financial stability of the enterprise.

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