EFFICIENCY ESSESSMENT OF ENTERPRISE CASH FLOW MANAGEMENT

Nataliya Nalukova; Halyna Kulyna

doi:10.35774/ibo2020.01.049

EFFICIENCY ESSESSMENT OF ENTERPRISE CASH FLOW MANAGEMENT

Nataliya Nalukova, Halyna Kulyna

Abstract

Introduction. An important component of Ukrainian enterprises economic development is to increase the efficiency of management decisions, especially those related to improving the solvency and liquidity of economic entities, ensuring their financial stability and competitiveness. That is why it is necessary to solve problems related to enterprise cash flow management in order to ensure its growth and financial stability, efficiency assessment and cash flow optimization. Methods. The paper uses general scientific and specific methods, in particular, the methods of theoretical generalization and abstraction were used to substantiate ways of improving the cash flow management process at the enterprise; the methods of comparison and vertical and horizontal analysis were used in the analysis of dynamics and structure of cash flows; coefficients method – to estimate liquidity of cash flows; the method of a comprehensive approach – to assess the efficiency of cash flow management at the enterprise. Results. The author's interpretation of the "cash flow" is formulated on the basis of analysis of literary sources and the basic provisions of the outlined issues are systematized. The factors influencing the formation of enterprise cash flows are defined and management principles are described. The efficiency of cash flow management is evaluated on the example of Ukrtelecom JSC in the context of horizontal and vertical analysis. Identified problems in the company’s business, related to the non-synchronous payments and their incomparability, irregularity and unpredictability. High quality of enterprise cash flows is defined. Discussion. The arguments for the necessity to define the tools of operational management are given. Practical recommendations on optimization of the cash flow structure and improvement of the process of its operational management are formulated. The application of the recommendations developed by the authors will allow the company to improve its financial discipline and restore financial balance.

Keywords

cash flow; money; cash flows management of the enterprise; cash flow incoming; outgoing cash flow; optimize the structure of cash flow

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References

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DOI: https://doi.org/10.35774/ibo2020.01.049