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 WAYS TO OPTIMIZE THE CASH RESOURCES MANAGEMENT AT THE ENTERPRISE

THE BULLETIN ◽  
2021 ◽  
Vol 2 (390) ◽  
pp. 183-189
Author(s):  
A. Akhmetova ◽  
A. Aimagambetova ◽  
A. Oralbayeva ◽  
G. Bisembayeva
Keyword(s):  
Cash Flow ◽  
Financial Stability ◽  
Continuous Process ◽  
Cash Flows ◽  
Factors Affecting ◽  
Cash Flow Management ◽  
Flow Of Funds ◽  
High Level ◽  
Financial Balance ◽  
Mana Gement

To maintain the financial stability of the enterprise at a stable high level and increase it, it is necessary to increase the accumulation speed of its own sources. To do this, it is necessary to find reserves, as well as provide material working capital from own sources. In addition, it is necessary to find an optimal balance of financial resources, the free flow of funds of the enterprise can ensure a continuous process of production and sale of products through their effective use. In the conditions of financial stability of the enterprise, we would like to note that effective cash flow mana-gement is the most important developed system.The cash flow management system of an enterprise is a system of tasks and methods for the formation, use and distribution of funds, as well as the development and implementation of management decisions related to the implementation of the company's turnover.The main objectives of cash mana-gement are not only to increase cash flows, but also to ensure the financial balance and stability of the enterprise in the course of its operation. This is done by balancing the amount of received and spent money and by coordinating it. It provides the mechanisms and indicators of financial stability of the enterprise, as well as the factors affecting cash to ensure the financial sustainability of the enterprise, methods and mechanisms of management of cash flows in terms of financial stability. Also, the effectiveness of cash management plays an important role in assessing the company's financial stability indicators. In order to achieve financial stability of the company, the factors affecting cash were considered. Any organization should choose methods for increasing, balancing, and synchronizing cash flows appropriate to its condition. The analysis reveals shortcomings in the company's activities and measures aimed at improving the efficiency of its work.

scholarly journals PROPERTY IN ECONOMIC ACTIVITY: CERTAIN PROBLEMS OF DEFINITION AND CLASSIFICATION IN UKRAINE

2021 ◽  
Vol 76 (3) ◽  
pp. 52-61
Author(s):  
Oleksandra Rozhenko ◽  
Keyword(s):  
Economic Activity ◽  
Legal Regulation ◽  
Process Approach ◽  
Property Relations ◽  
Economic Entity ◽  
Specific Category ◽  
Category Property ◽  
Definition Of ◽  
Management Functions

The article examines the definition of the term «property» in management sphere, analyses the existing definitions of the term «property» in management sphere. On this basis, the different approaches are identified and a process approach to the interpretation of a specific category is proposed. Regarding the classification of the types of property and sources of its formation, the use of terms and concepts that have expired in the legislation has been established. It is proposed to eliminate the identified differences and contradictions in the interpretation of the terms of legal regulation of property relations in management sphere in Ukraine in view of the types of property and sources of its formation. The definition of the category «property» in management sphere, which is available in current legislation and modern scientific sources, is considered. The approaches to the definition of the term «property» in management sphere are singled out, namely: property is things, assets, property of a certain type, classification-based approach and combined approach. The definition of the essence of the term «property» in management sphere is proposed to be considered according to the process approach, which is initially considered resources, which later acquire the characteristics of assets and further property. The differences and ramifications in the classification types of property under the current legislation are analysed, the ways of their elimination are offered, which will lead to the increase of efficiency of the use of the created property of the economic entity. According to the process approach, which assumes that a certain set of resources acquires the characteristics of assets, which, in turn, are part of the property of a particular entity. A distinctive feature of the proposed approach is that the property in management sphere is defined as a set of assets that are formed through a number of resources. The use of the provided proposals and elimination of identified contradictions in the classification of property types and sources of its formation will promote the intensification of various management functions of economic activity in the part of implementing economic mechanisms and regulators to optimize property formation and increase of its efficiency.

scholarly journals ANALYSIS AND EVALUATION OF FACTORS AFFECTING THE DEVELOPMENT OF FOREIGN ECONOMIC ACTIVITY OF AGRICULTURAL SECTOR ENTERPRISES

2020 ◽  
pp. 25-29
Author(s):  
Kubiv S. ◽  
Fedyuk V.
Keyword(s):  
Economic Activity ◽  
Crucial Role ◽  
Agricultural Sector ◽  
International Markets ◽  
Agricultural Enterprises ◽  
Factors Influencing ◽  
The Future ◽  
High Level ◽  
Exhaustive List

The development of foreign economic activity in the conditions of protectionist measures in the domestic markets of Ukraine is one of the main directions of increasing the level of competitiveness of domestic enterprises in the agricultural sector. Entering markets with a high level of competition and the widespread use of modern technologies creates opportunities for new experience and knowledge, which can be key factors in the success of the enterprise in the future. The foreign economic activity of Ukrainian enterprises in the agricultural sector is characterized by high potential for further development, however, in the current and retrospective perspective does not show effective trends for rapid growth in the future. Therefore, it is necessary to develop and use a number of scientifically sound proposals that logically follow from the results of the analysis and take into account the national characteristics of doing business in a high level of economic and political instability. The article analyzes the dynamics of export-import operations in the field of agricultural products, formed a classification of factors influencing the development of this industry, and which, unlike others, is based on the impor-tance of these factors, which allows to build an exhaustive list of those factors. whose impact is insignificant and taking into account those whose impact cannot be ignored, as they can play a crucial role in ensuring a certain level of success of domestic agricultural enterprises in international markets. This made it possible to formulate the author's proposals to improve the process of selecting alternative factors for assessing the foreign economic activity of enterprises in the agricultural sector in international markets. Based on the analysis of the dynamics of export-import operations in the agricultural sector, a classification of factors influencing the development of this industry was formed, which, unlike others, is based on the importance of these factors, which allows us to build an exhaustive list of those factors. which are insignificant and taking into account those whose impact cannot be ignored, as they can play a crucial role in ensuring a certain level of success of domestic agricultural enterprises in international markets.Keywords: competitiveness, foreign economic activity, agrarian enterprises, classification of factors, methodical and applied tools. Розвиток зовнішньоекономічної діяльності в умовах дії протекціоністських заходів на внутрішніх ринках України являється одним із головних напрямків підвищення рівня конкурентоспроможності вітчизняних підприємств аграрного сектору. Вихід на ринки з високим рівнем конкуренції та поширеним використанням сучасних технологій створює можливості для здобуття нового досвіду і знань, які можуть бути ключовими факторами успішності підприємства у майбутньому. У статті проведено аналізування динаміки експортно-імпортних операцій у сфері сільськогосподарської продукції, було сформовано класифікацію факторів, які впливають на розвиток цієї галузі, і яка на відміну від інших, базується на врахуванні вагомості цих чинників, що дозволяє побудувати вичерпний їх перелік відкинувши ті фактори, вплив котрих є не суттєвими та врахувавши ті з них, чий вплив не можна ігнорувати, оскільки вони можуть відігравати вирішальну роль у забезпеченні певного рівня успішності вітчизняних підприємств аграрної сфери на міжнародних ринках.Ключові слова: конкурентоспроможність, зовнішньоекономічна діяльність, підприємства аграрної сфери, класифікація факторів, методико-прикладний інструментарій.

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 The effects of interest rates on the valuation of highway infrastructure assets

2018 ◽  
Author(s):  
Carles Vergara-Alert
Keyword(s):  
Interest Rates ◽  
Cash Flow ◽  
Discount Rate ◽  
Economic Activity ◽  
Cash Flows ◽  
Rate Effect ◽  
Toll Roads ◽  
Flow Effect ◽  
Positive Correlation ◽  
Highway Infrastructure

The discounted value of cash flows of assets is negatively related to interest rates (i.e., the discount rate effect). However, economic activity is positively related to interest rates and positively related to the cash flows of assets with tariffs that can be adjusted to manage demand such as adjustable-rate toll roads, but uncorrelated to assets that do not bear demand risk such as non-toll roads (i.e., the cash flow effect). This effect arises in some types of assets from: (i) the positive correlation between economic activity and demand for the infrastructure assets; and (ii) the positive correlation between economic activity and inflation. We find that the cash flow effect dominates the discount rate effect for assets with tariffs that can be adjusted to manage demand and, therefore, the value of these assets increases in periods of economic expansion. Nevertheless, the opposite occurs for assets that do not bear demand risk.

scholarly journals Classification of bankruptcy with cash flow information: Evidence from small size firms

2016 ◽  
Vol 12 (2) ◽  
pp. 86-95
Author(s):  
Lious Ntoung Agbor Tabot ◽  
Helena Maria Santos de Oliveira ◽  
Cláudia M. F. Pereira
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Financial Ratios ◽  
Corporate Failure ◽  
Dividend Payments ◽  
Fixed Charges ◽  
Flow Information ◽  
Study Test ◽  
Flow Components

Corporate financial ratios have been debated in the past as the most importance measures in predicting corporate failure, yet gaps remain in the literature about cash flow information in classifying between bankrupted and non-bankrupted firms. This study test whether cash flow components is more useful in classifying bankrupted and non-bankrupted of small and unlisted firms in Spain. The results of this study suggest that cash flows components are superior to financial ratios for classifying small failed and non-failed companies with the logit model. Particularly, most failing firms, reduce or avoid paying dividend to their owner. This reduction or the absence of dividend payments as a proportion of total outflow is often related to either a significant decrease in the net operating inflow and/or an increase in the relative outflow to fixed charges resulting from increased external debt financing.

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 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.

scholarly journals Determinants Of Firm Terminal Value: The Perspective Of North American And European Financial Analysts

2014 ◽  
Vol 13 (4) ◽  
pp. 793
Author(s):  
Pedro M. Nogueira Reis ◽  
Marion Gomes Augusto
Keyword(s):  
Cash Flow ◽  
Discount Rate ◽  
North American ◽  
Financial Analysts ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Arbitrage Pricing Theory ◽  
Explicit Analysis ◽  
High Level ◽  
A Company

Company valuation models attempt to estimate the value of a company in two stages: (1) comprising of a period of explicit analysis and (2) based on unlimited production period of cash flows obtained through a mathematical approach of perpetuity, which is the terminal value. In general, these models, whether they belong to the Dividend Discount Model (DDM), the Discount Cash Flow (DCF), or RIM (Residual Income Models) group, discount one attribute (dividends, free cash flow, or results) to a given discount rate. This discount rate, obtained in most cases by the CAPM (Capital asset pricing model) or APT (Arbitrage pricing theory) allows including in the analysis the cost of invested capital based on the risk taking of the attributes. However, one cannot ignore that the second stage of valuation that is usually 53-80% of the company value (Berkman et al., 1998) and is loaded with uncertainties. In this context, particular attention is needed to estimate the value of this portion of the company, under penalty of the assessment producing a high level of error. Mindful of this concern, this study sought to collect the perception of European and North American financial analysts on the key features of the company that they believe contribute most to its value. For this feat, we used a survey with closed answers. From the analysis of 123 valid responses using factor analysis, the authors conclude that there is great importance attached (1) to the life expectancy of the company, (2) to liquidity and operating performance, (3) to innovation and ability to allocate resources to R&D, and (4) to management capacity and capital structure, in determining the value of a company or business in long term. These results contribute to our belief that we can formulate a model for valuating companies and businesses where the results to be obtained in the evaluations are as close as possible to those found in the stock market.

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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