Rational formation of cash flows contributes to the rhythm of the enterprise’s operating cycle and ensures growth in production volumes and product sales. At the same time, any violation of payment discipline negatively affects the formation of production reserves of raw materials and supplies, the level of labor productivity, sales of finished products, the position of the enterprise in the market, etc. Even for enterprises that successfully operate in the market and generate a sufficient amount of profit, insolvency can arise as a result of an imbalance of various types of cash flows over time.

On the other hand, cash flow management is an important factor in accelerating the turnover of an enterprise's capital. This occurs due to a reduction in the duration of the operating cycle, a more economical use of own funds and a reduction in the need for borrowed sources of funds. Consequently, the efficiency of the enterprise depends entirely on the organization of the cash flow management system. This system is created to ensure the implementation of short-term and strategic plans of the enterprise, maintaining solvency and financial stability, more rational use of its assets and sources of financing, as well as minimizing the costs of financing business activities.

Managing an enterprise's cash flows is an important part of the overall system for managing its financial activities.

Cash flow management is the tool with which you can achieve the desired result of an enterprise - making a profit.

But the main role in managing cash flows is given to ensuring their balance in terms of types, volumes, time intervals and other significant characteristics. To successfully solve this problem, it is necessary to implement planning, accounting, analysis and control systems at the enterprise. After all, planning the economic activities of an enterprise in general and cash flows in particular significantly increases the efficiency of cash flow management, which leads to:

• - reducing the current needs of the enterprise for them based on increasing the turnover of cash assets and receivables, as well as choosing a rational structure of cash flows;
• - effective use of temporarily available funds (including insurance balances) through financial investments of the enterprise;
• - ensuring a cash surplus and the necessary solvency of the enterprise in the current period by synchronizing positive and negative cash flow in the context of each time interval.

In this course work, the concept of cash flows was examined, their role in the functioning of the enterprise was analyzed, a theoretical description of methods for studying cash flows was given, forecasting methods were used to describe the future state of the main indicators of the state of cash flows in relation to the object of study.

Management of receivables and payables, included in the credit policy of an enterprise, is one of the most important blocks in managing the cash flow of trading enterprises due to their significant share in the balance sheet structure, as well as their impact on gross cash flows. As part of the enterprise's credit policy, tasks are solved that determine its role in managing cash flow in the enterprise: maximizing positive cash flow; reducing the cost of financing investments of working capital in accounts receivable and inventory; synchronization of cash inflows and outflows; ensuring the liquidity and solvency of the enterprise.

• - try to get more profit from core activities;
• - direct free funds to financial activities;
• - try to reduce the cost of maintaining premises and other assets.

Thus, cash flow management is the most important element of the financial policy of an enterprise; it permeates the entire management system of the enterprise. The importance and significance of cash flow management in an enterprise can hardly be overestimated, since not only the sustainability of the enterprise in a specific period of time, but also the ability to further develop and achieve financial success in the long term depends on its quality and efficiency.

Since the company's core business is the main source of profit, it should also be the main source of cash.

Investing activities include the receipt and use of funds associated with the acquisition, sale of long-term assets and income from investments. In this case, “inflows” of cash are associated with the sale of fixed assets, intangible assets, with the receipt of dividends, interest on long-term financial investments, and with the return of other financial investments. “Outflows” of funds are explained by the acquisition of fixed assets, intangible assets, capital investments, and long-term financial investments.

Since, with the successful conduct of business, the company strives to expand and modernize production facilities, investment activities in general lead to a temporary outflow of funds.

Financing activities include cash inflows as a result of obtaining loans or issuing shares, as well as outflows associated with the repayment of debt on previously received loans and the payment of dividends.

“Inflows” of funds can be due to short-term loans and borrowings, long-term loans and borrowings, proceeds from the issue of shares, and targeted financing. “Outflows” of funds occur in connection with the repayment of short-term loans and borrowings. Repayment of long-term loans and borrowings, payment of dividends, repayment of bills.

Financial activities are designed to increase the funds at the disposal of the company to financially support core and investment activities.

3 Methods for assessing cash flows in inflationary conditions

In the process of managing cash flows, it is necessary to take into account the inflation factor. The influence of inflation affects many aspects of the formation of enterprise cash flows. The concept of taking into account the influence of the inflation factor in managing an enterprise's cash flows lies in the need to realistically reflect their value, as well as to ensure compensation for their losses caused by inflationary processes when carrying out various financial transactions.

The main basic concepts associated with this concept are: inflation, inflation rate, actual inflation rate, expected inflation rate, inflation index, nominal amount of money, real amount of money, nominal interest rate, real interest rate, inflation premium.

Let's consider the main methods for assessing cash flows in conditions of inflation.

1. The methodological tools for forecasting the annual rate and index of inflation are based on the expected average monthly rates.
1. When forecasting the annual inflation rate, the formula is used

TIg = (1+TIm) – 1

where TIg is the projected annual inflation rate, expressed as a decimal fraction, TIm is the expected average monthly inflation rate in the coming period, expressed as a decimal fraction.

1. When forecasting the annual inflation index, the following formulas are used:

IIg = 1+TIg or IIg = (1+TIm)

where IIg is the projected annual inflation index, expressed as a decimal fraction.

1. The methodological tools for forming the real interest rate, taking into account the inflation factor, are based on its projected nominal level in the financial market and the results of the forecast of annual inflation rates. The formula is used Ip = (I – TI) / (I + TI), where Ip is the real interest rate, expressed as a decimal fraction, I is the nominal interest rate, expressed as a decimal fraction, TI is the inflation rate (actual or projected), expressed as a decimal fraction .
2. The methodological tools for assessing the value of funds taking into account the inflation factor allows for calculations of both future and present value with the corresponding “inflationary component”.

1. When estimating the future value of funds taking into account the inflation factor, the formula is used

Sn = P*[(1+Ip)*(1+TI)]

where Sн is the nominal future value of the deposit, taking into account the inflation factor, P is the initial amount of the deposit, Ip is the real interest rate, expressed as a decimal fraction, TI is the projected inflation rate, expressed as a decimal fraction, n is the number of intervals at which each interest payment is made in general period of time.

1. When assessing the present value of funds taking into account the inflation factor, the formula is used

where Pp is the real present amount of the deposit, taking into account the inflation factor, Sн is the expected nominal future value of the deposit.

1. The methodological tools for forming the required level of profitability of financial transactions, taking into account the inflation factor, are designed to ensure the calculation of the amount and level of the “inflation premium” and the calculation of the general level of nominal income, ensuring compensation for inflation losses and obtaining the required level of real profit.

1. When determining the required size of the inflation premium, the formula Pi = P * TI is used, where Pi is the amount of the inflation premium in a certain period, P is the initial cost of funds, TI is the inflation rate in the period under review, expressed as a decimal fraction.

1. When determining the total amount of required income for a financial transaction taking into account the inflation factor, the formula Dn = Dr + Pi is used, where Dn is the total nominal amount of the required income for a financial transaction taking into account the inflation factor in the period under review, Dr is the real amount of required income for a financial transaction in the period under review, calculated using simple or compound interest using the real interest rate, Pi is the amount of the inflation premium in the period under review.
2. When determining the required level of profitability of financial transactions taking into account the inflation factor, the formula UDn = (Dn/Dr)-1 is used, where UDn is the required level of profitability of financial transactions taking into account the inflation factor, expressed as a decimal fraction.

Task

Draw up a plan-report on cash flows over 5 years of the company’s operation (direct method).

Initial data:

For the first year;

1.1. It is planned to create a company that has an initial share capital in the amount of CU 3364.

1.2.Purchases equipment for organizing production of products in the amount of CU 3,059.

1.3.Total costs (fixed: administrative and commercial expenses) annually (for 5 years) amount to 100 rubles.

For the second year:

2.1. The company plans to attract an investor to increase share capital in the amount of CU 2,447.

2.2. A bank loan was taken out in the amount of CU 1,223.

2.3. Funds were allocated to pay for purchased materials, raw materials, components, i.e. variable costs CU 887

In modern economic conditions, many enterprises are forced to independently choose their development strategy and tactics. The enterprise's self-financing of its activities has become a top priority.

In conditions of competition and an unstable external environment, it is necessary to quickly respond to deviations from the normal activities of the enterprise. Cash flow management is the tool with which you can achieve the desired result of an enterprise - making a profit. These circumstances determine the choice of research topic.

The purpose of the thesis is to, in the course of analyzing the production and economic activities of the enterprise under study, develop recommendations for improving the cash flow management mechanism.

The object of the study is the process of cash flow at OJSC "Kurskkhimvolokno". The subject of the study is the mechanism for managing cash flows in an enterprise.

In order to achieve the goal, the thesis must solve the following tasks:

Consider theoretical approaches to the concept and essence of cash flows;

Analyze the main methods of cash flow management;

Determine the main indicators used in cash flow management;

Based on the analysis of indicators, develop recommendations for improving the cash flow management mechanism of the enterprise.

The practical significance of the thesis research lies in the development of specific measures to improve cash flow management at the enterprise.

The thesis consists of an introduction, three main parts, a conclusion, a list of references and applications.

The first part examines theoretical issues related to the concept and essence of cash flows of an enterprise, cash flow management in an enterprise, the role and importance of cash in the activities of the enterprise as a whole and as the most liquid part of working capital.

The second part discusses the basic methods of cash flow management, methods for assessing cash turnover, analyzing cash flows, and methods for calculating key cash flow indicators.

In the third, practical part, using the example of the enterprise under study, the state and movement of cash flows in the enterprise are assessed, and measures are developed to improve cash flow management.

The thesis used domestic and foreign developments and techniques in the field of cash management, sources of periodicals, as well as primary accounting documents for a number of periods.

The role of the financial market in the Russian economy is becoming obvious and significant: public debt, the ongoing process of privatization, capital accumulation by banks and industrial enterprises, individual savings of the population - literally everything is “closed” in the financial market.

This suggests that, operating essentially in a new economic structure, Russian manufacturing enterprises have moved to a wider use of market methods for regulating their business activities. The existing difficulties in the budgetary, monetary and payment and settlement spheres have an impact on the state and organization of finances of enterprises in economic sectors.

Any enterprise needs financial resources to expand production and increase profits. Their formation and use is carried out at two levels: nationwide and at each enterprise. The size and structure of sources for the formation of financial resources throughout the country determine the possibilities for growth of state budget revenues. The size of financial resources generated at the enterprise level determines the possibility of making the necessary capital investments, increasing working capital, fulfilling financial obligations, and meeting social needs. Such financial resources are generated from own funds - gross income (profit) and depreciation.

The financial market plays a major role in the formation of financial resources.

The financial market is a complex mechanism for the functioning of monetary resources that generate income depending on supply and demand, the solvency of sellers and buyers.

The financial market consists of relatively independent markets for means of payment. The most significant is the public capital market (money market), as well as the loan capital market. The securities market is playing an increasingly important role.

The public capital market is under the control of the Bank of Russia, which is the supporting structure of the financial market infrastructure.

The rapid growth of the refinancing rate objectively indicates the “unwinding” of inflationary processes in the country and deepens the crisis of public finances. All this affects the activities of enterprises. For many of them today, attracted (borrowed) funds are not available, so they have to make do with their own resources. Financial resources are moving from the sphere of production to the sphere of intermediary operations.

At the enterprise level, it is necessary to skillfully manage the movement of financial resources and financial relations that arise between business entities. It is necessary to develop financial management goals and influence them using the levers of the financial mechanism. In its most general form, the solution should ensure the most efficient flow of financial resources between the enterprise and the financial market, which is the main source of external financing for the enterprise in market conditions. This can be expressed schematically in Fig. 1.

Financial

Financial manager

Company

State

Rice. 1 Movement of financial resources between an enterprise and the financial market

Where: 1 - funds received in financial markets (through the sale of shares, bonds, conclusion of loan agreements);

2 - invested funds;

3 - funds received as a result of the financial and economic activities of the enterprise;

4 - funds returned to financial market entities as payment for capital (in the form of interest and dividends);

5 - funds reinvested in the enterprise;

6 - tax payments.

The above diagram reflects two important points:

Greater dependence of an enterprise's financial decisions on the external environment - primarily financial markets and government regulation (which is also aimed at financial markets);

The value of the cash indicator, which is one of the central ones in financial management.

Thus, the financial market allows an enterprise to properly organize the management of financial flows in order to make the most efficient use of capital and obtain maximum profit.

The increase in the scale of accumulation of monetary capital in modern conditions has led to the development of the loan capital market.

Loan capital is money lent for a certain percentage subject to repayment. The form of movement of loan capital is credit.

The main sources of loan capital are monetary capital (money) released in the process of reproduction: the depreciation fund of enterprises, profits, cash income and savings of all segments of the population, monetary savings of the state and others.

The loan capital market promotes the growth of production and trade turnover, the movement of capital within the country, and the transformation of cash savings into capital investments. The economic role of the loan capital market lies in its ability to unite small, scattered funds.

An enterprise needs financial resources to expand production and make a profit; the state needs them to fulfill its economic functions. However, as practice shows, this need is growing faster than the financial capabilities of enterprises and the state - profits, on the one hand, and revenues for the state (mainly taxes), on the other, turn out to be insufficient to cover all the necessary expenses. This is how financial deficits of enterprises are formed.

This problem can be solved by the population, which gradually spends its current income, constantly having a current balance of temporarily free funds. It is these funds that are in growing demand from the state and enterprises as a source of financing their activities.

The supply and demand for free monetary resources of the population gives rise to a special financial market in which the movement of monetary resources occurs from their owners to those who will use them. Such relationships are carried out on the securities market.

The securities market is a part of the financial market in which the purchase and sale of securities takes place. The purpose of the securities market is to ensure a more complete and rapid flow of cash flows into investments at a price that suits the buyer and seller.

Thus, both the state and enterprises can “buy” the population’s funds on the financial market by issuing securities.

In order to attract the maximum number of people to purchase securities, it is necessary to create a risk reduction system and well develop a program of strategic actions to achieve the set goals.

Cash flow is an integral part of the financial market. Any company can invest available funds in securities by purchasing them on the securities market, which is part of the financial market. Thus, there will be an outflow of funds, while receiving income from securities, the enterprise receives funds - an influx. Cash flow is obvious (in the sense of its definition given above).

As for another element of the financial market - the loan capital market, there is also a cash flow here. Any enterprise, in order to replenish its working capital, can take out a loan from a financial institution (cash inflow), repaying the loan, funds leave the enterprise and thereby there is an outflow.

Any movement of funds in one way or another concerns the financial market.

1.3 Principles of cash flow management

The existence of a company in the market is unrealistic without cash flow management. Therefore, it is important to perfectly master the techniques of managing cash flow and financial resources of the company.

For effective management of financial flows, determining the optimal amount of working capital plays an important role, since cash is included in its composition. On the one hand, a lack of cash can lead a company to bankruptcy, and the faster the pace of its development, the greater the risk of being left without money. On the other hand, excessive accumulation of funds is not an indicator of well-being, since the company loses the profit that it could have received as a result of investing this money. This leads to the “death” of capital and reduces the efficiency of its use.

One of the methods of monitoring the cash position is to manage the ratio of the balance sheet value of cash to the amount of working capital. The ratio (percentage) of cash from working capital is determined by dividing the amount of cash by the amount of working capital.

When considering the ratio of cash in working capital, you need to know that a change in the proportion does not necessarily characterize a change in cash, since inventory, which is part of the working capital, may change.

Another approach to determining the amount of cash required for an enterprise is possible. This is an assessment of the cash balance compared to sales volume.

Turnover speed sales volume for the analyzed period

Cash balance sheet cash value

A high value of the indicator indicates the efficient use of cash and allows you to increase sales without changing working capital, reducing distribution costs, increasing profits.

There are several options for speeding up the receipt of cash: speeding up the process of invoicing customers and customers; personal activities of the manager in receiving payments; concentration of banking operations (funds are accumulated in local banks and transferred to a special account where they are accumulated); receiving cash from accounts in which they lie unused.

If an enterprise is experiencing a shortage of cash, and payments must be made, and a certain availability of money is necessary for current needs, then payments can be deferred, or bills of exchange can be used. You can defer cash payments by using checks to pay suppliers.

From the perspective of investment theory, cash represents one of the special cases of investing in inventory. Therefore, general requirements apply to them:

A basic reserve of cash is required to carry out current calculations;

Certain funds are required to cover unforeseen expenses;

It is advisable to have a certain amount of free cash flow to ensure possible or projected expansion of activities.

Thus, models developed in the theory of inventory management can be applied to cash and allow optimizing the amount of cash.

In Western practice, the Baumol and Miller-Orr models are most widely used. The direct application of these models in domestic practice is still difficult due to inflation, high discount rates, underdevelopment of the securities market, etc.

Baumol's model assumes that a company starts operating with its maximum level of cash and then gradually uses it up. All incoming funds from the sale of goods and services are invested in short-term securities. As soon as the cash reserve is depleted, that is, it becomes equal to zero or reaches a certain specified level of safety, the company sells part of the securities and thereby replenishes the cash reserve to its original value. Thus, the dynamics of the balance of funds on the current account is a “sawtooth” graph (Fig. 2).

Balance

on the calculated Q

Rice. 2 Chart of changes in the balance of funds on the current account (Baumol model)

The replenishment amount Q is calculated using the formula:

Q=2 * V * C

Where: V is the projected need for funds in the period;

C - expenses for converting cash into securities;

R is an acceptable and possible interest income for an enterprise on short-term financial investments.

Thus, the average cash reserve is Q/2, and the total number of transactions for converting securities into cash (K) is equal to: K = V : Q (3)

The total costs (OR) of implementing such a cash management policy are: OP = C * K + R * Q /2 (4)

The first term in this formula represents direct expenses, the second is the lost profit from keeping funds in a current account instead of investing them in securities.

Baumol's model is simple and quite acceptable for enterprises whose cash expenses are stable and predictable. In reality, this rarely happens. The balance of funds in the current account changes randomly, and significant fluctuations are possible.

The Miller-Orr model answers the question: how should an enterprise manage its cash reserves if it is impossible to predict the daily outflow and inflow of cash? When constructing the model, the Bernoulli process is used - a stochastic process in which the receipt and expenditure of money from period to period are independent random events (Fig. 3)

Inventory Investment of excess cash

cash upper limit

funds

Return point

lower limit

Restoring the cash supply

Rice. 3 Miller-Orr model

The account balance changes chaotically until it reaches the upper limit. As soon as this happens, the company begins to buy securities in order to return the cash reserve to some normal level (the point of return). If the cash reserve reaches the lower limit, then the company sells its securities and replenishes the cash reserve to the normal level.

When deciding on the range of variation (the difference between the upper and lower limits), it is recommended to adhere to the following policy: if the daily variability of cash flows is large, or the costs associated with buying and selling securities are high, then the enterprise should increase the range of variation, and vice versa. It is also recommended to reduce the range of variation if there is an opportunity to generate income due to the high interest rate on securities.

The model is implemented in several stages:

1. the minimum amount of funds in the current account is established;

2. based on statistical data, the variation in the daily receipt of funds to the current account is determined;

3. the costs of storing funds in a current account and the costs of transforming funds into securities are determined;

4. calculate the range of variation in the cash balance on the current account;

5. calculate the upper limit of funds in the current account, if exceeded, it is necessary to convert part of the funds into short-term securities;

6. determine the return point - the amount of the balance of funds on the current account, to which it is necessary to return if the actual balance of funds on the current account goes beyond the boundaries of the interval [upper limit; bottom line].

Using the Miller-Orr model, you can determine the policy for managing funds in a current account.

Thus, the principles and methods of cash flow management must be adapted and implemented in Russian conditions; in Western practice, the Baumol and Miller-Orr models, developed in the early 60s, are widespread, which can be applied to Russian enterprises with great reservations; Taking into account the experience of Western scientists, it is necessary to develop comprehensive methods for managing cash flows.

To ensure financial independence, an enterprise must have a sufficient amount of equity capital. To do this, it is necessary for the enterprise to operate profitably. To ensure this goal, effective management of the inflow and outflow of funds and prompt response to deviations from a given course of activity are important.

Cash flow management is one of the most important activities of a financial manager and includes:

calculation of the time of circulation of funds (financial cycle);

cash flow analysis;

cash flow forecasting.

The key to managing business liquidity is the cash flow cycle (financial cycle).

The financial cycle represents the time during which funds are withdrawn from circulation.

In other words, the financial cycle includes:

1. investing money in raw materials, materials, semi-finished products and components and other assets for production;

2. sales of products, provision of services and performance of work;

3. receiving revenue from the sale of products, provision of services, performance of work.

Because of the order in which these activities occur, a company's liquidity is directly affected by timing differences in cash transactions for each activity.

The expenditure of money, the sale of products and the receipt of money do not coincide in time, as a result there is a need for either a larger volume of cash flow or the use of other sources of funds (capital and loans) to maintain liquidity.

An important point in cash flow management is the determination of the duration of the financial cycle, concluded in the time interval from the moment of acquisition of production resources to the moment of receipt of funds for the sold goods (Fig. 4).

Rice. 4 Stages of cash circulation

The figure shows that due to a possible mismatch throughout the entire technological chain of the physical movement of production resources and funds, it is necessary to monitor the ratios of the components of the operating and financial cycles and the entire business activity cycle of the enterprise. It should be remembered that the given flow periodization scheme is only a simplified chronological chain, which, in principle, cannot be observed directly, but can only be determined by calculation.

The logic of the presented scheme is as follows. The operating cycle characterizes the total time during which financial resources are stored in inventories and accounts receivable. Since the company pays bills with a time lag, the time during which funds are diverted from circulation, that is, the financial cycle, is less than the average time of circulation of accounts payable. The reduction in operating and financial cycles over time is considered a positive trend. If a reduction in the operating cycle can be done by accelerating the production process and accounts receivable turnover, then the financial cycle can be shortened both due to these factors and due to a slight slowdown in accounts payable turnover.

The duration of the financial cycle (FCC) in days of turnover is calculated using the formula:

PFC = POC – VOK = WHO + WOD – VOK, (5)

Based on formula (5), in the future it is possible to evaluate the nature of the enterprise’s credit policy, the equivalence of receivables and payables, the duration of the operating cycle specific to a particular enterprise and its impact on the amount of working capital of the enterprise as a whole, the period of diversion of funds from the economic turnover.

Thus, the central point in calculating the time of circulation of funds is the duration of the financial cycle (FC).

Financial cycle - the time interval from the moment of acquisition of production resources until the receipt of funds for the sold goods.

The calculation of the PFC allows you to indicate ways to accelerate cash turnover by assessing the impact of the indicators used in determining the PFC.

One of the main conditions for the normal operation of an enterprise is the availability of funds, which can be assessed by cash flow analysis.

The main task of cash flow analysis is to identify the reasons for the lack (excess) of funds, determine the sources of their income and areas of use.

The purpose of the analysis is to highlight, if possible, all transactions affecting cash flow.

When analyzing, cash flows are considered for three types of activities: core, investment and financial. This division allows us to determine what the share of income received from each type of activity is. Such an analysis helps to assess the prospects of the enterprise.

The main activity is the activity of the enterprise that brings it the main income, as well as other activities not related to investments and finance. Below are the main directions of cash inflow and outflow (Table 1).

Table 1 Main directions of inflow and outflow of funds by main

activities

Since the main activity is the main source of profit, it should be the main source of cash.

Investment activity is associated with the sale and acquisition of long-term use property.

Information on cash flows associated with investment activities reflects the costs of acquiring resources that will create a future cash flow and profit (see Table 2).

Table 2 Main directions of cash inflow and outflow by

investment activities

Investing activities generally result in temporary cash outflows.

Financing activities are activities that result in changes in the size and composition of an enterprise's equity and borrowings.

An enterprise is said to be engaged in financial activities if it receives resources from shareholders (issuing shares), returns resources to shareholders (paying dividends), borrows money from creditors, and repays amounts received as loans. Information about cash flows associated with financing activities allows us to predict the future amount of cash to which the enterprise's capital providers will be entitled. The directions of outflow and inflow of funds from financial activities are presented in Table 3.

Table 3 Main directions of inflow and outflow of funds according to financial

activities

Financial activities are designed to increase the funds at the disposal of the enterprise for financial support of core and investment activities.

For each area of ​​activity it is necessary to sum up the results. It is bad when current activities will be dominated by cash outflow. This indicates that the funds received are not enough to ensure the current payments of the enterprise. In this case, the lack of funds for current payments will be covered by borrowed resources. If, in addition, there is an outflow of funds from investment activities, then the financial independence of the enterprise decreases.

cash + short-term financial investments

Short-term liabilities

This ratio shows how much of the current debt can be repaid as of the balance sheet date. If the actual value of the coefficient is less than 0.2-0.3, then this indicates a shortage of funds in the enterprise. Under these conditions, current solvency will depend entirely on the reliability of debtors.

If during the analysis it turns out that the amount of cash in current liabilities decreases, and current liabilities increase, then this is a negative trend.

At the second stage, the sufficiency of funds is assessed. To do this, determine the duration of their turnover period using the formula:

Duration Average cash balances * Length of billing period

one revolution Cash turnover for the period

Money

Average cash balances are calculated using the historical average. For the calculation, data is taken on the amount of balances at the beginning and end of the period in cash accounts. To calculate the average turnover, you should use the credit turnover on account 51 for the analyzed period. For account 51, it is necessary to clear the credit turnover from internal turnover.

The main document for analyzing cash flows is the “Cash Flow Statement”.

Direct and indirect methods are used to determine cash flows. The difference between them lies in the different sequence of procedures for determining the amount of cash flow.

The direct method is based on calculating the inflow (revenue from the sale of products, works and services, advances received, etc.) and outflow (payment of supplier bills, return of short-term loans received, etc.) of funds, that is, the initial element is revenue. Cash analysis by the direct method makes it possible to assess the liquidity of an enterprise, since it reveals in detail the movement of funds in its accounts and allows one to draw prompt conclusions regarding the sufficiency of funds for payments on current obligations, for investment activities and additional costs.

This method has a serious drawback - it does not reveal the relationship between the obtained financial result and the change in funds in the accounts of the enterprise, therefore an indirect method of analysis is used to explain the reason for the discrepancy between profit and cash.

The indirect method is based on the analysis of balance sheet and income statement items, accounting for transactions related to cash flows, and sequential adjustment of net profit, that is, the initial element is profit.

The indirect method allows you to show the relationship between different types of activities of the enterprise, establishes the relationship between net profit and changes in the assets of the enterprise for the reporting period. Its essence is to convert the amount of net profit into the amount of cash. In this case, it is assumed that there are certain types of expenses and income that reduce (increase) profit without affecting the amount of cash. In the process of analysis, net profit is adjusted to the amount of these expenses (income) so that expense items not associated with the outflow of funds and income items not accompanied by their inflow do not affect the amount of net profit.

Business transactions related to the calculation of depreciation of fixed assets and intangible assets, which reduce the value of the financial result, do not cause an outflow of funds. In this case, the decrease in profit is not accompanied by a decrease in cash (to obtain the real amount of cash, the amount of accrued depreciation must be added to net profit). When analyzing the relationship between the obtained financial result and changes in funds, one should take into account the possibility of receiving income reflected in the accounting before the actual receipt of funds (for example, when accounting for sold products at the time of their shipment).

For analysis purposes, information from the balance sheet, form No. 2 “Profit and Loss Statement”, as well as general ledger data are used. With its help, cash flows within the framework of current, investment and financing activities are separately determined. The total result, characterizing the state of funds at the enterprise, consists of the sum of the results of the flow of funds for each type of activity.

The analysis begins with an assessment of changes in individual items of the enterprise's assets and their sources.

Then adjustments are made to the data of various accounts that affect the profit margin. This influence can be multidirectional. The adjustment is based on a balance sheet equation linking the opening and closing balances, as well as debit and credit turnover.

Analysis of cash flows makes it possible to draw more informed conclusions about:

1. To what extent and from what sources the funds received were received, what are the directions for their use.

2. Are the enterprise’s own funds sufficient for investment activities?

3. Is the company able to pay its current obligations.

4. Is the profit received sufficient to service current activities?

5. What explains the discrepancies between the amount of profit received and the availability of funds?

All this determines the importance of such an analysis and the feasibility of its implementation for the purposes of operational and strategic financial planning of the enterprise.

Forecasting in financial management is the anticipation of a certain event, the development of future changes in the financial condition of the object as a whole and its various parts.

A feature of forecasting is the alternativeness in the construction of financial indicators and parameters, which determines the variation in the development of the financial condition of the enterprise based on emerging trends. Working on the forecast contributes to a deeper study of all aspects of production, which makes it possible to more successfully resolve emerging issues.

Forecasting can be carried out both on the basis of extrapolation of the past to the future, taking into account an expert assessment of the trend of change, and direct anticipation of changes.

A cash flow forecast is a report that reflects all receipts and expenditures of funds in the process of expected transactions (operations) for a certain period.

Cash flow forecasting allows you to foresee a shortage or surplus of funds even before they arise and makes it possible to adjust the behavior of the company over a certain period of time.

In the economic literature you can find the statement that the “forecast” of cash flow is more correctly called a “budget”. However, according to a number of economists, such a statement is erroneous. They believe that the forecast and the budget are different, not similar concepts.

During the year, unforeseen circumstances may arise that require an immediate change in planned indicators to meet current circumstances. The new figures obtained cannot be called a “budget”. It is more correct to call them “forecasts”, of which there can be as many as required depending on the circumstances.

Thus, for economists who adhere to this point of view, a cash flow forecast is a report that reflects all receipts and expenditures of funds in the process of expected transactions (operations) for a certain period, and the budget - the estimated results of a coordinated management plan or business strategy for a future period.

According to a number of other economists, since most indicators are quite difficult to predict with great accuracy, cash flow forecasting often comes down to constructing cash budgets.

Cash budget is a forecast of cash flows caused by collections and disbursements.

It is developed on the basis of planning future cash receipts and payments of the enterprise for various periods of time and shows the moment and volume of expected receipts and payments of cash for the reporting period.

The budget represents a program of actions expressed in monetary terms in the field of production, procurement of raw materials or goods, sales of manufactured products, etc. The action program must ensure temporal and functional coordination (coordination) of individual activities.

A cash budget can be drawn up for almost any period. Short-term forecasts are typically made monthly, probably because they take into account seasonal variations in cash flows. When cash flows are predictable but highly variable, it may be necessary to develop a budget over shorter periods to determine maximum cash requirements. For the same reason, when cash flows are relatively weak, budgeting for a quarter or even a longer period of time may be justified.

The more distant the period for which the forecast is made, the less accurate the prediction becomes. The expense of preparing a monthly cash budget is usually justified only for forecasts related to the near future. A budget is only as useful as we rely on the accuracy of the forecast to create it.

A cash budget usually consists of four main sections:

The receipts section, which includes the cash balance at the beginning of the period, cash receipts from customers and other cash receipts;

Section of cash expenditures, reflecting all types of cash outflows for the coming period;

Division of cash surplus or deficit - the difference between the receipt and expenditure of funds;

Financial section, which presents in detail the items of borrowed funds and debt repayment for the upcoming period.

The budget allows:

Get an idea of ​​the total cash requirements;

Make decisions about the rational use of resources;

Analyze significant deviations in budget items and assess their impact on the financial performance of the enterprise;

Determine the need for the volume and timing of borrowing;

Monitor changes in cash flow, which should always be at a level sufficient to pay off obligations as needed.

As a result, it is possible to control the inflow and outflow of funds, paying special attention to the correctness of the reflection of the exact time of their occurrence and their relationship with the planned production, investment and financial activities.

Having examined various approaches to cash flow forecasting, the author proceeds from the point of view that forecasting comes down to building a cash budget. Forecasting will help to identify trends in the development of the entire enterprise as a whole, as well as individual indicators of its functioning. With the help of forecast data, an enterprise will be able to react in advance to upcoming changes in its condition, and not react quickly when, in the event of unfavorable development trends, it is no longer necessary to avoid losses (losses), but to try to reduce them.

Since Kurskkhimvolokno OJSC does not forecast cash flow, but only works with reporting, we will develop a budget based on actual data, which will already allow us to draw up a forecast. The forecast in our case is based on identifying future values ​​of indicators (based on form No. 4). Having the actual values ​​of the indicators, in the Excel 97 spreadsheet processor we will predict the values ​​of the indicators for the lead period (see Appendix 2).

From the point of view of statistical methods for processing such information, the forecast method is called the “trend method”. The linear trend equation has the form:

Y t = a o + a 1 * t (11)

where a o and a 1 are the parameters of the equation; t - time designation.

To calculate the function parameters based on the requirements of the least squares method, a system of normal equations is compiled:

n* a o + a 1* S t = S Y a o * S t + a 1 * S t 2 = S t* Y

To solve a system of equations, the method of determinants is usually used, which allows one to obtain more accurate results by minimizing errors due to rounding in parameter calculations:

In relation to the analyzed data, a matrix of calculated indicators is compiled to determine a o and a 1 (see Table 4). Let's look at the example of the line "Receipts for the period."

Table 4 Calculation of values ​​of the aligned series using the least squares method

a o =SY/n = 13191256.75 a 1 = S(t * Y)/St 2 = 1180893.85

Thus, forecasting helps to see what will happen in the future with cash flow; whether it is necessary to withdraw funds in the first months or whether they need to be accumulated, which must be done in the second quarter. It is also important whether the enterprise can use bank loans and loans from other enterprises. The cash budget will help us assess whether the repayment period for loans and borrowings is realistic.

In the context of the transition to market relations, control over cash flow becomes crucial, since the survival of the enterprise depends on it, therefore it is necessary to forecast cash flow, draw up and develop cash budgets. All this will allow you to monitor the amount of cash flow, identify shortages or surpluses of funds even before they arise, and make it possible to adjust the actions taken.

OJSC "Kurskkhimvolokno"

The enterprise under study - Open Joint Stock Company "Kurskkhimvolokno" was created by transforming the Kursk state enterprise "Khimvolokno". Location of the Company: Kursk, Seimsky administrative district.

OJSC "Kurskkhimvolokno" is a commercial organization, a legal entity, maintains independent accounting, is on its own balance sheet and has its own current account. An enterprise can, on its own behalf, acquire and exercise property and personal non-property rights, bear responsibilities, be a plaintiff and defendant in court, and open bank accounts in rubles and foreign currency. The profit remaining with the enterprise after paying taxes and other payments to the budget comes at its full disposal and is used by the joint-stock company independently.

The founder of the Company is the Property Management Committee of the Kursk Region.

In accordance with the restructuring program of OJSC Kurskkhimvolokno, in 1998 the company acted as the founder of a subsidiary, CJSC Kapron.

The main purpose of creating a company is: making a profit through the production and sale of chemical fibers, wholesale and retail trade, leasing of real estate and property.

The authorized capital of CJSC Kapron is 180.5 million rubles. The number of outstanding shares is 180,515, with a par value of one share of 1,000 rubles.

The authorized capital of OJSC "Kurskkhimvolokno" is 49.4 million rubles, formed at the expense of the cost of 493,559 ordinary registered shares (with a par value of 100 rubles).

The company does not have any outstanding shares that have not been fully paid. The authorized capital has been paid in full.

The company's shareholders are: the Kursk Region Property Committee, which owns 9.5% of shares, the workforce (3% of shares) and 77.5% of all shares of Kurskkhimvolokno OJSC belongs to third-party legal entities.

The main activities of OJSC "Kurskkhimvolokno" are:

Production and sale of industrial and technical products, consumer goods, agricultural products;

Trade and procurement activities;

Foreign economic activity.

OJSC "Kurskkhimvolokno" is one of Russia's largest producers of synthetic fibers and threads for the textile, knitting, carpet, printing, tire, rubber, fishing industries, etc.

The company produces polyamide textile and technical threads, fibers and cord fabric, and is the only one in Russia today that produces polyester and polypropylene fibers and threads, monofilaments, various resins and hot melt adhesives.

In addition, the company produces a wide range of consumer goods, including: insulated linoleum, needle-punched carpeting, hand knitting threads, hosiery, fishing line, cables, cords, bristles and plastic products, cooling liquid." Antifreeze - A 40m", various non-woven materials.

The enterprise has two main production facilities, “Lavsan” and “Kapron”, and seventeen auxiliary workshops; produces three types of synthetic fibers and threads: polyester (lavsan), polycaproamide (nylon) and polyolefin (polypropylene), as well as various types of synthetic resins (polyester and polyamide).

Manufactured products are sent to light industry enterprises in Russia, Belarus, Ukraine and other regions (Table 1).

Table 1 - Geography of the product sales market

There are a number of enterprises producing chemical fibers and threads in Russia. Industry enterprises are concentrated in five economic regions, with 60% of the capacities located in the European part of Russia, and the remaining 40% located in Siberia. In terms of production capacity, the undoubted leader is Balakovo Chemical Fibers, more than half of whose capacity is for viscose fiber. Sibvolokno takes second place. In third place is JSC Kurskkhimvolokno, which has recently specialized in the production of nylon threads and fibers.

Over the past three years, only in 1998, the industry saw an increase in production of synthetic threads, nylon cord fabric, nylon fiber, etc.

This is due to the fact that in the third quarter of 1998, due to the rise in the dollar exchange rate, supplies of these types of fibers and threads from Ukraine and Belarus decreased.

In the industry as a whole, the structure of production of chemical fibers and threads changes periodically. Despite the fact that the share of textile cord and technical film threads in the total production of chemical fibers and threads has increased, their production in physical terms has decreased.

For synthetic fibers and threads in the industry as a whole, there is a decline in production.

Recently, all production capacities of the enterprise have been used at less than 100%. Production volumes in value terms are clearly presented in Figure 1.

Figure 1 Production volumes

The underutilization of average annual production capacity is explained by financial difficulties in purchasing raw materials, energy resources, and selling products on the domestic market due to the low solvency of consumer enterprises.

Despite the difficult situation in the economy, JSC Kurskkhimvolokno worked more stably in 1998 than in previous years. In 1996, losses were incurred for the first time in core activities. An analysis of the enterprise's performance for 1997 shows a deterioration in its performance.

For the period 1996-1998. The enterprise received losses that resulted from losses from sales, excess operating expenses over income, diversion of funds for the maintenance of the socio-cultural and housing and communal services, economic sanctions, etc. In addition, there are losses from previous years. In total, losses for 1998, together with losses from previous years, amounted to 320,449 thousand rubles.

Table 2 - Main indicators of production and financial activities of OJSC "Kurskkhimvolokno"

Name				Growth rate 1998 as a percentage of 1996
Commercial products of own production, million rubles
Revenues from sales, upon payment on shipment
Cost of sales, thousand rubles
Profit (+), losses (-), thousand rubles Incl. from implementation; Diversion of funds for the maintenance of housing, social and cultural spheres, etc.; Economic sanctions
Cost of fixed production assets, thousand rubles
Construction in progress
The amount of inventories and work in progress incl. cost of finished products
Investments in fixed assets
Average number of employees incl. PPP

The company's operation with losses led to a critical financial condition.

We present the dynamics of the enterprise’s funds in Table 3.

Table 3 - Dynamics of enterprise funds

In thousands of rubles

The dynamics show a decrease in working capital and an increase in accounts payable. The significant increase in debt is due to obligations under the long-term lease agreement for fixed assets of JSC Kapron.

Thus, the enterprise does not have enough own funds to fully form even non-current assets, not to mention current assets, which are fully formed through borrowed funds, and practically due to only accounts payable.

The dynamics of the formation of working capital and accounts payable have a negative trend. The growth of accounts payable (mainly to suppliers, to the budget and extra-budgetary funds) is explained by the unprofitable operation of the enterprise and the lack of funds for timely payment of supplies of raw materials and resources, and payment of taxes.

3.2 Assessment of the state of cash flows of OJSC "Kurskkhimvolokno"

In this chapter, the author will try to give a comprehensive assessment of the state of cash flows at the research site and develop recommendations for improving cash flow management. To do this, the main cash flow indicators are considered.

First, it is necessary to assess the general state of funds and analyze the main ways of their receipt and expenditure in the organization under study.

In order to reveal the real cash flow at OJSC Kurskkhimvolokno, assess the synchronicity of receipts and payments, and also link the value of the obtained financial result with the state of funds, we will highlight and analyze all directions of cash receipts, as well as their expenditure.

The total cash flow is presented in Appendix 3. Let us present on the graph the change in funds for the most important items for analysis for the period 1995-1998. (Fig. 5).

The data in Appendix 3 gives a general idea of ​​cash flows by year by quarter. We can say that the cash balances at the end of the quarter are unstable and change throughout the period under review. This may be due to the fact that enterprises must agree with the bank where their current account is located, the size of the cash limit, that is

the maximum possible amount of money in the cash register. In addition, keeping cash in the cash register is very dangerous, and since the Central Market is a trading enterprise, it hands over (collects) the proceeds to the bank.

As for the funds in the current account, for a detailed analysis of their expenditure it is necessary to review bank statements for the relevant periods. Regarding the dynamics of balances on the current account, we can say that it fully corresponds to the profile of the enterprise. Cash in other (special) bank accounts is characterized by a downward trend.

Much attention should be paid to the dynamics of changes in accounts payable and receivable. Trends in changes in accounts payable and receivable in 1995-1998. at the municipal unitary enterprise "Central Market" are shown in the graph (Fig. 6).

It is desirable that accounts payable be slightly higher than accounts receivable. This is due to the fact that accounts receivable are money temporarily diverted from circulation, and accounts payable are funds involved in circulation. It is also undesirable to have a strong excess of accounts payable over accounts receivable, because in the event of a demand from creditors (especially for short-term debt) to repay the debt, the enterprise may be made dependent on the financial condition of the debtors.

As can be seen from Fig. 6, accounts payable exceed accounts receivable. In general, this is not bad, however, in the third quarter of 1995, 1st quarter of 1996, 4th quarter of 1997. accounts payable exceeded accounts receivable by approximately 2 times. This is a negative trend. As of the 1st quarter of 1998 this ratio was 1.56 times. At the same time, the company had only about 9% of the amount of accounts payable. This suggests that only 55% of the accounts payable could be repaid from cash and receivables, with only 9% from cash. This state of affairs allows us to draw the following conclusions:

The ratio of accounts payable and receivable does not fully satisfy the requirements of financial independence of the enterprise;

Fluctuations in the amount of money in the cash register and in the current account indicate instability in receiving and especially spending money.;

The state of affairs can be changed by analyzing all (or the main) channels of receipt and directions of use of funds, taking as a basis Form No. 4 “Cash Flow Statement” of annual and quarterly reporting.

A cash flow statement is one of the main forms of financial reporting, which summarizes information about the inflow and outflow of cash from an enterprise. The report explains the changes that occurred with one of the components of the financial statements - cash - from one balance sheet date to another, that is, it allows users to analyze current cash flows, estimate their future receipts, assess the ability of the enterprise to repay its debts and pay dividends, analyze the need to attract additional financial resources. Its great advantage is that it allows you to identify in a simple and analytical form the factors that influenced changes in cash flows during the reporting period. Let's analyze the main sources of cash inflow and outflow (see Table 5).

Table 5 Analysis of sources of cash inflow and outflow

In thousands of rubles

Indicators
Cash balance at the beginning of the year
Total funds received, including:
revenue from product sales
proceeds from the sale of fixed assets
budget allocations
interest on financial investments
other supply
Total funds sent, including
to pay for goods
for wages
for the issuance of accountable amounts
to pay for cars and vehicles
for financial investments
for budget calculations
handed over to the bank from the cash register
other payments
Cash balance at the end of the period

Thus, based on the analysis data, the following conclusions can be drawn:

1. During the period of existence of the Municipal Unitary Enterprise "Central Market" (since April 1995), in general, for each year, the inflow of funds prevailed over the outflow.

2. The share of revenues from sales of products and provision of services was 60.0%, 53.9% and 57.4%, respectively, for 1995-1997. To maintain this trend, one must strive to quickly convert accounts receivable (which over the years is equal to 10.8%, 9.6%, 9.1%, respectively, as a percentage of sales revenue) into cash. It can be seen that the share of accounts receivable in revenue is decreasing, although for many organizations and enterprises the trend is the opposite.

3. Funds are used mainly to pay for goods. The share of such expenses by year is 49.1%, 37.3%, 37.9%. If we add labor costs to these expenses (the result is 51.9%, 41.9%, 43.1%), then the proceeds from the sale of products will be enough to produce them. This indicates the normal functioning of the organization.

4. A negative point is the lack of financial investments of the enterprise. These investments (in securities, time deposits) could generate income. However, despite the overall predominance of cash inflows over outflows over the period, in some periods the enterprise did not have enough funds to pay off creditors. This is evidenced by the data on the absolute liquidity ratio, which the author will analyze further.

An important point in cash flow analysis is the determination of the duration of the financial cycle (FCC) (cash circulation time). The reduction of PFC is considered as a positive trend, that is, the smaller the PFC, the less money is “frozen” in various assets, which helps to accelerate their turnover and thereby the possibility of generating additional income. Based on the formula for calculating the PFC (see (6)), we will determine the PFC for a number of periods at the municipal unitary enterprise "Central Market" (see Appendix D).

The data obtained give an idea of ​​the PFC, which increases in the first quarter of each year under review. Increase in PFC in the 1st quarter of 1995-1997. was due to an increase in the circulation time of receivables by 8.11, 14 and 3.42 days, respectively. This suggests that there was a slowdown in the turnover of receivables compared to other periods, which caused, in turn, an increase in the share of overdue and doubtful receivables and a deterioration in their quality. Subsequently, the PFC decreased, and as the data show, it ranged from 0.88 to 2.7 days, that is, it has approximately the same time interval. This is affected by a reduction in inventory circulation time. The shorter the inventory circulation time, the shorter their shelf life, that is, they do not accumulate and overstocking does not occur. This suggests that in the Central Market, due to this state of inventory, there is no outflow of funds, which means funds are not diverted from circulation and can be used for other purposes.

The reduction in the PFC was also due to a slowdown in the circulation time of accounts payable, that is, due to temporarily raised funds, which are a completely acceptable source of financing in contrast to expensive bank loans. In the 1st quarter of 1998 There is also a tendency towards a reduction in the PFC, which suggests that Central Market employees monitor the financial management system and, by accelerating turnover, extract additional profit. Therefore, in the future, it is necessary to adhere to this position and closely monitor the components of the PFC, which will make it possible to take the necessary measures to eliminate the causes that caused the failures, and, if necessary, will allow the Central Market to formulate a credit policy.

One of the conditions for the financial well-being of an organization is the influx of cash. The organization must have a sufficient amount of cash in order to pay its creditors on time, pay wages, and, ultimately, to maintain a certain optimal level of liquidity. However, an excessive amount of cash indicates that the organization is actually suffering losses associated with inflation and depreciation of money, as well as the missed opportunity for their profitable placement. Therefore, to assess the state of cash flows of the Central Market Municipal Unitary Enterprise, the share of cash in current liabilities was analyzed, that is, the absolute liquidity ratio was calculated (see Appendix E).

The normal value of the absolute liquidity ratio ranges from 0.2-0.3. This value of the absolute liquidity ratio means that 20-30% of short-term liabilities can be repaid by the enterprise immediately from cash and marketable securities. Table D.1 shows that the values ​​of the absolute liquidity ratio ranged from 3-57%. This indicates an unstable financial position of the enterprise.

On the one hand, the values ​​of the absolute liquidity ratio for 5 periods did not reach the normal value, which means that the company did not have enough cash to pay off short-term obligations and had to rely on the financial position of debtors and on its assets, which could be used to pay off debts if money was not received from debtors.

On the other hand, for 4 periods the values ​​of the absolute liquidity ratio were higher than the normative ones. This indicates that the company has too much cash, although these funds could be put into circulation and generate some income. Only in three periods did the absolute liquidity ratio correspond to the normal value.

Thus, the company needs to control cash flow, especially in the form of accounts payable. In fact, at the end of 1997. and early 1998 the value of the absolute liquidity ratio was within 3-8%. This means that the risk of non-payment of debts increases and the liquidity of the enterprise may be reduced.

We will assess the sufficiency of funds at the Central Market Municipal Unitary Enterprise. To do this, we calculate the duration of their turnover period. For this purpose, formula (11) is used. The duration of the period is 30 days, since the value of the indicator is calculated for a month. For the calculation, internal accounting data on the amount of balances at the beginning and end of the period in cash accounts were used. To calculate the average turnover, the credit turnover of account 51 was used.

At the Central Market Municipal Unitary Enterprise, most of the payments go through the cash register, so the indicated cash expenses on the cash register account were added to the amount of credit turnover on the current account. The calculation of the cash turnover period is shown in Appendix E. Let us visually represent the change in the duration of cash turnover on the graph (Fig. 7).

As follows from the data in Appendix E, the period of cash turnover during 1996. ranges from 1.03 to 4.44 days, and in 1997. from 1.02 to 4.50. In other words, from the moment money was received into the company’s account until the moment it was withdrawn, it took place in 1996. on average no more than 1.8 days, in 1997 2.19 days. This indicates insufficient funds for the enterprise, which is very dangerous when there is a significant amount of accounts payable. Any serious delay in payment can take the company out of financial stability.

In order to reveal the real flow of funds at the Central Market municipal unitary enterprise, evaluate their receipt and expenditure, and also link the value of the obtained financial result with the state of funds, all directions of their receipt and disposal were identified and analyzed, the analysis was carried out directly (see Appendix G) and indirect (see Appendix H) methods. This approach will ensure operational management and control over cash flows in the organization.

Thus, from Appendix G it is clear that the inflow exceeds the outflow of funds in each quarter of 1996 and 1997. The influx of cash was mainly ensured by the growth of revenue from sales of products, goods and services. On average, as a percentage of the total inflow, it was 68 - 69%.

As for investment and financial activities, the organization has neither inflow nor outflow of funds for them. All receipts and expenditures of funds occur only for current activities.

Appendix 3 discusses the indirect method. It allows us to explain the discrepancies between the amount of net profit and changes in cash flows by type of activity. The author considers only current activities, since the investment and financial organization is not involved. The values ​​of net profit and cash are shown in Table 6.

Table 6 Net profit and cash flow from current activities

In thousands of rubles

Although, according to the financial statements (form No. 2), the organization under study received a net profit in the amounts presented in table 6, however, in reality it had quarterly funds in the amounts shown in the same table. It is the indirect method that allows such a comparison to be made.

The table shows that basically the organization actually had more cash than net profit. The reasons for this are as follows:

Significant amounts of depreciation (on average 28% of net income in 1996 and 16.7% in 1997) reduced net income, but did not affect cash flow, since the actual money for these assets was paid earlier when they were purchased, and depreciation amounts were written off to reduce profits;

Since the method of selling products using the shipment method is used to calculate financial results, the amount of receivables is part of the profit, but in reality the money will arrive later, which will lead to an increase in the real cash inflow.

Transactions on passive accounts have the opposite mechanism of impact on cash flow. If the balance of the liability accounts increases, then less was paid on them than shown in the expenses and the amount of the increase must be added to net income. If the balance decreases, then more was paid on the liability accounts and the amount of the decrease should be excluded from net income.

Using the indirect method, the management of an enterprise can monitor its current solvency, make operational decisions on stabilization and assess the possibility of making additional investments.

Thus, in this section, the main indicators of cash flows were analyzed, which in the next section will be summarized in order to give a comprehensive assessment of the state of cash flows and develop the main measures to improve the efficiency of cash flow management.

Having assessed and analyzed the state of cash flows of the Central Market Municipal Unitary Enterprise, it is necessary to develop and justify solutions for their effective use.

During the analysis, it was found that the organization does not have a stable state, that is, at times there is either a shortage of funds or temporarily free funds. Therefore, in order to have at least relative stability, and not sudden changes, we will try to develop a set of measures for the efficient use of funds.

The main cash flow indicators analyzed above are presented in Table 7.

Table 7 Key indicators of cash position

Table continuation

Table 7 shows the calculated data of the main indicators of the cash position, as well as forecast data for two periods, the 1st and 2nd quarters of 1998. The forecast was made in the Excel-97 spreadsheet processor, and the given graphs were constructed in it.

Based on these data, the following conclusions (recommendations) can be drawn:

The change in cash balances at the end of quarters is not linear. This trend is similar to the sinusoidal law of change. However, there is a general tendency towards a decrease in the absolute values ​​of cash balances. In 1997 and early 1998 the downward trend is becoming increasingly clear. In turn, this state of affairs affects the values ​​of the absolute liquidity ratio, the values ​​of which by the end of 1997 were. and according to the forecast in the 1st-2nd quarters of 1998. are decreasing. This may negatively affect the liquidity position of the organization. Moreover, by the end of 1997. The importance of accounts payable has increased. Therefore, it is necessary to monitor the status of accounts payable and the amount of funds. Despite the decrease in the organization's cash balances at the end of the analyzed periods, in general the financial position of the enterprise can be considered favorable. The fact is that information about cash balances is taken from the balance sheet, which is compiled as of a certain date and therefore contains static information. In order to draw a more complete conclusion about the state of funds, let us turn to the indicator of net profit and the indicator of funds obtained as a result of applying the indirect method of cash flow analysis.

3. As can be seen from Table 7 and Fig. 9 the organization had a net profit in each period. Since the beginning of 1997 and, including forecast values, the net profit indicator tends to increase and is quite stable. The amount of funds that the organization had and will have is projected in 1998. higher than the profit indicator due to discrepancies between receiving real money and generating financial results.

4. From the 4th quarter of 1997 There has been a tendency towards a reduction in the duration of the financial cycle. This is a good trend, since the smaller the PFC, the faster the funds circulate and bring additional profit in the process of selling products and other cash receipts. The indicator of the duration of cash turnover has a similar trend (see Fig. 11).

5. The analysis given above shows that the organization has a predominance of accounts payable over accounts receivable (see Fig. 6). This is not a bad trend, however, an excessive excess of accounts payable with a decrease in cash at the end of the period can negatively affect the solvency of the organization, since short-term accounts mainly predominate in accounts payable.

Thus, for the organization under study, the following measures can be taken to improve cash flow management:

1. Slightly increase the liquidity ratio to a normal value, which will provide the organization with liquidity.

2. Try to reduce the repayment period for receivables, using partial prepayment or other methods of influencing debtors (penalties, fines, penalties, etc.).

3. try to get more profit from core activities. To do this, it is possible to expand the market area, install additional retail spaces (one-time fees amounted to about 52% in 1995-1997), allocate additional spaces for rent (rents averaged about 45% over the same period). These are the two largest sources of income for the organization.

4. Direct free funds to financial activities. The organization practically does not engage in financial activities, which, under certain circumstances (the presence of qualified personnel, etc.) could bring additional profit, which, we note, is not taxed, since such income is taxed at the source of its origin.

5. The main sources of spending money are expenses for rent and maintenance of premises, inventory and other assets, wages and depreciation of own fixed assets. Note that depreciation is not accompanied by a real cash outflow. Salaries are practically not subject to reduction. Therefore, you need to try to reduce the cost of maintaining premises and other assets.

Thus, the main indicators of the state of cash flows were analyzed and recommendations were made to improve cash flow management.

Based on the study of cash flow management, the following conclusions and recommendations were obtained:

1. Cash flow is one of the central elements of the life of any enterprise. Their management is an integral part of managing all financial resources of an enterprise to ensure the enterprise's goal - making a profit.

2. In market conditions, cash flow management becomes the most pressing problem of managing the entire enterprise, because this is where the main ways to obtain positive financial results are concentrated.

3. In this thesis, the concept of cash flows was examined, their role in the functioning of the enterprise was analyzed, a theoretical description of methods for studying cash flows was given, and forecasting methods were used to describe the future state of the main indicators of the state of cash flows in relation to the object of study.

4. The main conclusions were drawn and recommendations were developed to improve cash flow management at the research site:

Increase the liquidity ratio to a normal value;

Reduce repayment periods for receivables;

Try to get more profit from core activities;

Direct free funds to financial activities;

Try to reduce the cost of maintaining premises and other assets.

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Appendix A

Figure A.1 Diagram of cash flows within the enterprise

Table B.1 Development table for the forecast of cash availability

Indicators					1st quarter 1997
Cash balances at the beginning of the period
Receipts for the period
from the sale of goods, works and services
from the sale of fixed assets and other property
budget allocations
dividends, interest on financial investments
other supply
Total cash at the disposal of the enterprise
Expenses for the period
costs of paying for goods and work
labor costs
social contributions
costs of issuing accountable amounts
equipment purchase
financial investment costs
budget calculations
deposited cash to the bank
other payments
Excess (deficit) of funds					Table B.1 Total cash flow, (in 1997 prices, at the end of the period) In thousands of rubles Indicators Cash Checking account Accounts payable Accounts receivable Table D.1 Calculation of the duration of the financial cycle of the municipal unitary enterprise "Central Market" Indicators 1. Average amount of inventories 2. Cost of products sold 3. Average amount of receivables 4. Sales revenue 5. Average amount of accounts payable Table E.1 Change in duration of cash turnover by month In thousands of rubles Indicators Cash balances Monthly turnover Turnover period, days Table E.1 Cash flow to the Central Market Municipal Unitary Enterprise (direct method) In thousands of rubles Indicators 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter CURRENT ACTIVITY 1.1 Revenue 1.2 Advances 1.3 Other 2.1 Payments to suppliers 2.2 Salary 2.3 To budget 2.4 Other Table G.1 Cash flow (indirect method) at the Central Market Municipal Unitary Enterprise In thousands of rubles Indicators 1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter CURRENT ACTIVITY Net profit Adjustment operations Inventory changes VAT change Changing work in progress Change in accounts receivable Change in debt to the budget Changes in debt to suppliers Change in wage arrears Change in Social Security Debt Change in debt to other creditors Table 3.1 Calculation of the absolute liquidity ratio for the municipal unitary enterprise "Central Market"

In the process of managing cash flows, it is necessary to take into account inflation, which over time depreciates the value of cash in circulation.
The influence of inflation affects many aspects of the formation of enterprise cash flows. In the process of inflation, there is a relative decrease in the value of individual tangible assets used by the enterprise (fixed assets, inventories, etc.); reduction in the real value of monetary and other financial assets (accounts receivable, retained earnings, financial investment instruments), etc. The inflation factor has a particularly strong impact on the long-term financial operations of an enterprise related to cash flow management.
The stability of inflation and its impact on the financial performance of an enterprise in the field of cash flow management determine the need to constantly take into account the influence of this factor.
The concept of taking into account the influence of the inflation factor in managing an enterprise's cash flows lies in the need to realistically reflect their value, as well as to ensure compensation for their losses caused by inflationary processes when carrying out financial transactions.
The methodological tools that allow taking into account inflation in the process of managing an enterprise's cash flows are differentiated in terms of basic calculations (Fig. 12.6).

1. The methodological tools for forecasting the annual rate and index of inflation are based on the expected average monthly rates. Such information is contained in published forecasts of the country’s economic and social development for the coming period. The forecasting results serve as the basis for the subsequent inflation factor in the financial activity of the enterprise.

1. When forecasting the annual inflation rate, the following formula is used:

TIG _ (1 + TIM)12 -1, (12.20)
where TIG is the projected annual inflation rate; TIM is the expected average monthly inflation rate in the coming period.

Using formula (12.20), not only the projected annual inflation rate can be calculated, but also the value of this indicator at the end of any month of the coming year.

1. When forecasting the annual inflation index, the following formulas are used:

IIg = 1 + TIG, (12.21)
or IIG =(1 + TIM)12, (12.22)
where IIG is the projected annual inflation index; TIG - projected annual inflation rate (calculated using the previously given formula); TIM - expected average monthly inflation rate.

1. The methodological tools for forming a real interest rate taking into account inflation are based on the projected nominal level in the financial market (the results of such a forecast are usually reflected in the prices of futures and options contracts concluded on the stock exchange) and the results of the forecast of annual inflation rates. The calculation of the real interest rate taking into account the inflation factor is based on the Fisher model:

= LIE., (12.23)
p 1 + TI
where I p is the real interest rate (actual or predicted
in a certain period); I - nominal interest rate (actual or predicted in a certain period); TI - inflation rate (actual or predicted in a certain period).

1. The methodological tools for assessing the value of funds taking into account inflation allow us to calculate both their future and present value with the corresponding inflationary component. These calculations are based on the generated real interest rate.

1. When estimating the future value of funds taking into account inflation, the following formula is used (modification of the Fisher model):

SH = P [(+ ip) (+ IT)]n, (12.24)
where SH is the nominal future value of the deposit (cash), taking into account inflation; P - initial deposit amount; ip - real interest rate; TI - predicted inflation rate; n is the number of intervals at which each interest payment is made in the total stipulated period of time.

1. When assessing the present value of funds taking into account the inflation factor, the following formula is used:

S
Pp = - -н -, (12.25)
[(+ip И1 + IT)]"
where Pp is the real present amount of the deposit (cash), taking into account the inflation factor; SH is the expected nominal future value of the deposit (cash); ip is the real interest rate used in the cost discounting process; TI - predicted inflation rate; n is the number of intervals at which each interest payment is made in the total specified period of time.

1. The methodological tools for forming the required level of profitability of financial transactions taking into account inflation, on the one hand, allows for the calculation of the amount and level of the “inflation premium”, and on the other hand, the calculation of the general level of nominal income, ensuring compensation for inflation losses and obtaining the required level of real profit.

1. When determining the required amount of the inflation premium, the following formula is used:

(12.26)
Pi _ R TI,
where PI is the amount of the inflation premium in a certain period; P is the initial cost of funds; TI - inflation rate in the period under review.

1. When determining the total amount of required income for a financial transaction, taking into account the inflation factor, the following formula (12.27) is used:

(12.27)
Day _ Dr + Pi,
where Дн is the total nominal amount of the required income for a financial transaction, taking into account the inflation factor in the period under review; Dr - the real amount of required income for a financial transaction in the period under review, calculated using simple or compound interest using the real interest rate; Pi is the amount of the inflation premium in the period under review.
The dependence of the total amount of required income and the size of the inflation premium on the inflation rate can be presented graphically (Fig. 12.7).


lo
ae
Inflation rate

1. When determining the required level of profitability of financial transactions, taking into account the inflation factor, the following formula is used:

UDn = D^ -1, (12.28)
dr
where UDN is the required level of profitability of financial transactions taking into account the inflation factor; Dn - the total nominal amount of the required income for a financial transaction in the period under review; Dr -
the real amount of required income from a financial transaction in the period under review.
Forecasting inflation rates is a rather complex and labor-intensive probabilistic process, largely influenced by subjective factors. Therefore, in asset management practice, a simpler method of taking into account the inflation factor can be used. For these purposes, the cost of funds during their subsequent increase or the amount of required income during its subsequent discounting is recalculated in advance from the national currency into one of the “strong” (i.e. least susceptible to inflation) freely convertible currencies at the rate at the time of calculations. The process of increasing or discounting value is then carried out at the real interest rate (the minimum real rate of return on capital). This method of estimating the present or future value of cash flows allows us to completely exclude the influence of inflation within the country from its calculations.

Introduction

Chapter 1. Cash flows in the production, economic and financial activities of the enterprise

1 Economic essence of an enterprise’s cash flows

2 Cash flow and characteristics of its types

3 Cash flow management information system

Chapter 2. Methods for analyzing enterprise cash flows

1 Cash flow analysis methods that do not use discounting

2 Methods for estimating cash flows over time

3 Methods for assessing cash flows in inflationary conditions

Chapter 3. Optimization and planning of enterprise cash flows

1 Optimization of enterprise cash flows

2 Development of a plan for the receipt and expenditure of funds

Conclusion

Bibliography

money turnover enterprise inflation

Introduction

The availability of money at an enterprise determines the possibility of its survival and the direction of further development.

The effectiveness of optimizing the cash flows of an enterprise serving its economic activities depends, first of all, on the information base for decision-making - high-quality analytical work. In turn, in the practice of financial management, extensive experience has been accumulated in terms of optimizing cash payments, increasing profitability, financial stability and market activity of the enterprise, reducing the risks of loss of liquidity and bankruptcy. In this regard, the topic of the course work related to the analysis and management of enterprise cash flows becomes particularly relevant.

The research topic is widely covered in the works of domestic and foreign economists. Many authors pay attention to the issues of analysis and financial management of enterprise cash flows. From Russian economists - these are E. Zholonsky, I. Ivakina, R. O. Kostyrenko, O. Kononenko, O. Makhanko, from foreign authors - these are M. I. Bakanov, A. Blank, V. V. Bocharov, M. Kreinina ., Kononenko O., Leontyev V.E., Radkovskaya N.P. Savitskaya G., Savchuk V.P. Utkin E., Shapkin A.S., Shapkin V.A., Sheremet A.D., and many others.

This paper examines the concept of cash flows from the point of view of their management in an enterprise.

Cash flow management at an enterprise is currently a hot topic, since its financial stability, solvency, ability to operate smoothly and develop in accordance with market requirements depend on the formation of cash flow; all these factors, in turn, affect the state of society and economy as a whole.

One of the main problems of the Russian economy at present is the shortage of funds at enterprises to carry out their current and investment activities. However, upon closer examination of this problem, it turns out that one of the reasons for this deficit is, as a rule, the low efficiency of attracting and using financial resources, the limitations of the financial instruments, technologies, and mechanisms used in this case.

The main goal of this work is to study the essence of cash flow management in an enterprise, to determine the main methods of planning and managing cash.

Based on this, the following tasks are set in the work:

analyze existing points of view on the theoretical aspects of cash flow and clarify the definition of the concept of “cash flows” of an enterprise;

classify and define them in terms of significance for management;

identify the main tools for managing and analyzing cash flows;

determine the main directions of cash flow management.

The object of study in this work is the cash flows of the enterprise.

The subject of study is the analysis and assessment of regulation of the cash flow process.

Chapter 1. Cash flows in the production, economic and financial activities of the enterprise

1 Economic essence of an enterprise’s cash flows

The implementation of almost all types of financial transactions generates a certain movement of funds in the form of their receipt or expenditure. This movement of funds of a functioning enterprise over time is a continuous process and is defined by the concept of “cash flow”. At the present stage, more and more attention is being paid to the management of enterprise cash flows, and some progress has already been made along this path.

Further development of systems and mechanisms for managing an enterprise's cash flows urgently requires deepening theoretical research into this category, which is most important for financial management, and, first of all, a comprehensive consideration of the essential characteristics that determine it. In anticipation of this consideration, we note that this study is aimed at the subsequent practical use of certain theoretical provisions in the cash flow management system of specific business entities. Such a limitation deliberately excludes from the field of study the theory of cash flows all abstract definitions of this category that characterize it as a form of socio-economic relations, as well as the features of their formation and flow that go beyond the scope of the enterprise.

Taking into account the stated purpose of the study, we will formulate the main characteristics of the cash flows of an enterprise as an object of financial management, which, in our opinion, comprehensively reflect the essential aspects of this category.

Cash flow as an object of financial management of the economic activities of an enterprise. The process of cash flow reflects the monetary relations of the enterprise, which are included in the scope of its financial activities. This connection between the cash flows of an enterprise and the scope of its financial activities is emphasized by many economists - according to the most widely used definition, enterprise finance is a system of economic relations associated with the formation, distribution and use of funds in the process of their economic activities.

The cash flow of an enterprise reflects its monetary relations, both external and internal.

Cash flow of an enterprise as a process directly related to the functioning of money and the country's monetary system. The content of an enterprise's cash flow is the movement of a special type of its assets - money and its substitutes. Money is one of the most important elements of any economic system and largely reflects the national characteristics of the economic development of individual countries. These features are manifested in the specific type of the chosen national monetary unit, the types of foreign currency allowed for circulation in a given country, the emission (or monetary) policy of a given state, the ratio of cash and non-cash money turnover in the country, the breadth and features of the use of individual financial instruments that mediate monetary relations enterprise, as well as other parameters that determine the nature of the country’s monetary system.

In other words, if the flow of tangible and intangible assets of an enterprise characterizes the movement of their individualized varieties, the breadth and functional features of which are determined by the specifics of its operating activities, then cash flow is associated with the movement of money and monetary substitutes, which are universal in nature for all enterprises.

Cash flow of an enterprise as a process associated with the formation, distribution and use of its capital. The basis of an enterprise's cash flow is the movement of monetary assets owned by it, i.e. own capital in cash. In this capacity, equity capital in its most general form is characterized as a previously accumulated stock of money and its substitutes at a certain point in time. In other words, cash flow on a specific date can be considered as a discrete amount of the enterprise’s capital in cash, characterized by the size of the stock of its monetary assets (accordingly, any change in this discrete value in dynamics reflects the nature of the enterprise’s cash flow in the period of time under consideration).

Cash flow of an enterprise as a process reflecting the use of various forms of credit by the enterprise. The movement of funds of an enterprise is inextricably linked with the movement of the loan capital used by it, attracted to carry out economic activities in the form of a loan. This connection is due to the fact that in modern conditions credit is the most important source of satisfying the demand of enterprises for financial resources. No matter how high the level of self-financing of the operating and investment activities of an enterprise is, business entities need to attract credit financial resources to ensure accelerated growth and increase return on equity. A loan is necessary for an enterprise to maintain the continuity of the circulation of its funds, service the production process and the process of selling manufactured goods, and the acquisition of various capital goods when carrying out investment activities.

Cash flow of an enterprise as a process characterizing the turnover and transformation of certain types of its assets. The monetary assets used by the enterprise are in constant motion, which is accompanied by constant changes in their types and forms. The process of such constant movement and transformation, characterized in economic theory by the term “asset turnover,” is carried out in the form of certain repeating cycles. The asset turnover cycle is understood as the period of complete completion of the circulation of their individual functional groups and types, as a result of which they return to their original form - monetary assets. As can be seen from the above figure, the nature of the circulation of the enterprise’s funds advanced into current and non-current assets has a certain specificity, which is reflected in the formation of total cash flow.

Cash flow of an enterprise as a process that ensures the generation of economic effect. The ability to generate economic effect is one of the most important characteristics of an enterprise's cash flow. Wherever an enterprise's funds (its capital in monetary form) are used - in its operating or investment activities, they are always potentially capable of generating a positive economic effect, provided that they are used rationally.

The main form of economic effect generated by an enterprise's cash flows is “net cash flow” (the difference between the total volumes of positive and negative cash flow). The level of net cash flow characterizes the ability of capital in monetary form to provide varying degrees of self-increase in its value.

The cash flow of an enterprise as a process that reflects the forms and volumes of the enterprise’s functioning in the commodity and financial markets. The formation of cash flows of various types is inextricably linked with the functioning of the enterprise in specific markets. Thus, the main volume of cash receipts in the process of operating activities of an enterprise is associated with the sale of its products on the commodity market. The main volume of spending money on raw materials, materials, semi-finished products, capital goods used in the process of operating and investment activities of the enterprise also occurs on the commodity market. In the financial market (in its various segments), an enterprise raises funds by issuing shares and bonds, in the form of bank and other types of loans, and spends them on servicing and repaying the principal amount of the debt, and purchasing financial investment instruments.

Cash flow of an enterprise as a process carried out taking into account the time factor. The growth rate of cash flows, as well as their structure by type of activity of the enterprise, are formed under the significant influence of the time factor. The functioning of money capital over time is always the result of the alternative chosen by its owners - to use it for the purpose of current consumption of a certain amount of goods or to involve it in a further economic process to obtain these goods in large quantities over a certain period of time.

The economic value of today's and future benefits from the position of owners of monetary capital is unequal. Economic theory states that today's goods are always valued by an individual higher than future goods. This feature of the economic behavior of individuals in economic theory is reflected by the term “time preference”, the essence of which is that, other things being equal, the possibilities of future consumption from an economic point of view are always less valuable in comparison with current consumption. In order to overcome this stereotype of time preference and induce the owner of capital to refuse to use it for the purpose of current consumption, it is necessary to provide a sufficiently significant reward for such refusal.

Alternative forms of time preference arise at all stages of the functioning of capital in monetary form. Accordingly, at each of these stages, the owners of capital face a dilemma of choice related to its use over time.

A quantitative tool for the efficiency of capital use over time is the “norm of time preference.” It determines the ratio of an individual’s assessments of consumer goods of the future and the current period. This indicator is calculated using the following formula:

, (1.1)

Where - the norm of time preference, expressed as a decimal fraction; - total assessment of future consumer goods purchased per unit of available funds; - the total assessment of current consumer goods purchased per unit of available funds.

The optimal use of funds over time is characterized by a certain criterion. This criterion is based on a comparison of the marginal rate of time preference (individualized for a given capital owner) with the marginal return on capital. From the standpoint of this ratio, the criterion for the optimal use of monetary capital in each specific time interval is the ratio:

, (1.2)

Where - marginal income of money capital; PNVP is the marginal norm of time preference.

This criterion guarantees maximization of the welfare of the owners of the enterprise if the purpose of using funds is to optimize the distribution of consumption over time.

Cash flow of an enterprise as a process carried out taking into account the risk factor. Risk is the most important characteristic of all forms of use of funds in the economic activities of an enterprise. The carrier of this factor is cash in inextricably linked with its characteristics as economic resources that generate income during use. The level of risk in the use of funds is directly dependent on the level of the expected effect of cash flow (net cash flow), in particular on the level of profitability of individual business transactions, forming a single scale of “profitability - risk” in their implementation. This scale reflects the average market quantitative parameters of the level of risk of using capital in cash in various types of business activities, corresponding to specific parameters of the level of its expected profitability. When generating various types of cash flows associated with the use of capital in cash to generate income in the operating or investment process, an entrepreneur must always consciously take risks, the extent of which he determines independently. The risk factor is an important objective attribute of the formation of cash flows of an enterprise and must be taken into account in the process of managing them.

Cash flow of an enterprise as a process carried out taking into account the liquidity factor. Serving the process of capital circulation in cash, the cash flow generated by the enterprise must ensure not only the timely receipt and expenditure of funds, but also a certain level of their reserve in order to maintain constant solvency. Such a reserve is created at the enterprise both in the form of various types of monetary assets and in the form of their substitutes (short-term financial investment instruments). Accordingly, the level of cash flow liquidity is the ratio of the average stock of monetary assets and their substitutes to the volume of cash expenditure in a certain period.

Cash flow liquidity management is ensured not only by determining the required amount of cash to maintain the constant solvency of the enterprise, but also by forming a rational structure of the entire totality of its assets according to this criterion. Different types of assets, depending on the versatility of their functional purpose, the speed of turnover in the operating or investment process, the level of development of the corresponding types and segments of the market and other conditions, have varying degrees of liquidity. Therefore, when forming the structure of an enterprise’s assets from the standpoint of ensuring the liquidity of its cash flow, it is necessary to ensure that they contain a sufficient volume of such types of assets that, if necessary, can be quickly converted into cash at their real value.

The liquidity of cash flows is an objective factor that determines the formation of its specific forms and types to maintain the required level of cash reserves of the enterprise.

The review of the most significant characteristics of an enterprise's cash flow shows how multifaceted this economic category is from theoretical and applied positions. At the same time, all the characteristics considered, reflecting the characteristics of the cash flow of an enterprise in its various aspects, are closely interrelated and require a comprehensive reflection when determining the economic essence of cash flow. Taking into account the considered main characteristics, the economic essence of the enterprise’s cash flows in the most general form can be formulated as follows:

The cash flow of an enterprise is a set of receipts and payments of funds generated by its economic activities, distributed over separate intervals of the time period under consideration, the movement of which is associated with factors of time, risk and liquidity.

1.2 Cash flow and characteristics of its types

The concept of an enterprise's cash flow as an independent object of financial management has not yet been sufficiently reflected not only in domestic, but also in foreign literature on financial management. The applied aspects of this concept are usually considered only as part of the issues of managing the balances of monetary assets, managing the formation of financial resources and anti-crisis management of an enterprise under the threat of bankruptcy. Even financial reporting, which characterizes the cash flow of an enterprise over time, has relatively recently been introduced into the system of international accounting standards (in our country such reporting is in its infancy).

At the same time, the cash flows of an enterprise in all their forms and types, and, accordingly, its total cash flow, are undoubtedly the most important independent object of financial management, requiring deepening of the theoretical foundations and expansion of practical recommendations. This is determined by the role that cash flow management plays in the development of an enterprise and the formation of the final results of its financial activities.

The considered aspects confirm the thesis about the need to separate the enterprise’s cash flows into an independent object of financial management with the appropriate structural and personnel support for this management.

.Based on the scale of servicing the economic process, the following types of cash flows are distinguished:

· cash flow for the enterprise as a whole. This is the most aggregated type of cash flow, which accumulates all types of cash flows serving the economic process of the enterprise as a whole;

· cash flow for certain types of economic activities of the enterprise. This type of cash flow characterizes the result of differentiation of the total cash flow of an enterprise in the context of individual types of its economic activities;

· cash flow for individual structural divisions (responsibility centers) of the enterprise. Such differentiation of an enterprise's cash flow defines it as an independent object of management in the system of organizational and economic structure of the enterprise;

· cash flow for individual business transactions. In the system of the economic process of an enterprise, this type of cash flow should be considered as the primary object of independent management.

2.By type of economic activity, in accordance with international accounting standards, the following types of cash flows are distinguished:

· cash flow from operating activities. It is characterized by cash payments to suppliers of raw materials and materials; third-party providers of certain types of services providing operational activities; wages for personnel involved in the operational process, as well as those managing this process; tax payments of the enterprise to budgets of all levels and to extra-budgetary funds; other payments related to the implementation of the operational process. At the same time, this type of cash flow reflects cash receipts from product buyers; from tax authorities in order to recalculate overpaid amounts and some other payments provided for by international accounting standards;

· cash flow from investment activities. It characterizes payments and receipts of funds associated with the implementation of real and financial investments, the sale of retiring fixed assets and intangible assets, the rotation of long-term financial instruments of the investment portfolio and other similar cash flows serving the investment activities of the enterprise;

· cash flow from financing activities. It characterizes the receipts and payments of funds associated with attracting additional share capital and share capital, obtaining long-term and short-term loans and borrowings, payment in cash of dividends and interest on deposits of owners and some other cash flows associated with the implementation of external financing of the economic activities of the enterprise.

3.Based on the direction of cash flow, there are two main types of cash flows:

· positive cash flow, characterizing the totality of cash flows to the enterprise from all types of business operations (the term “cash inflow” is used as an analogue of this term);

· negative cash flow, characterizing the totality of cash payments by an enterprise in the process of carrying out all types of its business operations (the term “cash outflow” is used as an analogue of this term).

When characterizing these types of cash flows, you should pay attention to the high degree of their interrelation. The insufficiency of volumes in time of one of these flows causes a subsequent reduction in the volumes of another type of these flows. Therefore, in the enterprise's cash flow management system, both of these types of cash flows represent a single (complex) object of financial management.

.According to the volume calculation method, the following types of cash flows of an enterprise are distinguished:

· gross cash flow. It characterizes the entire totality of receipts or expenditures of funds in the period of time under consideration in the context of its individual intervals;

· Net cash flow. It characterizes the difference between positive and negative cash flows (between the receipt and expenditure of funds) in the period under consideration in the context of its individual intervals. Net cash flow is the most important result of the financial activity of an enterprise, largely determining the financial balance and the rate of increase in its market value. The calculation of net cash flow for the enterprise as a whole, its individual structural divisions (responsibility centers), various types of business activities or individual business operations is carried out using the following formula (1.3):

, (1.3)

where NPV is the amount of net cash flow in the period under consideration; PDP - the amount of positive cash flow (cash receipts) in the period of time under consideration; ECF is the amount of negative cash flow (cash expenditure) in the period of time under consideration.

As can be seen from this formula, depending on the ratio of the volumes of positive and negative flows, the amount of net cash flow can be characterized by both positive and negative values, which determine the final result of the corresponding economic activity of the enterprise and ultimately influence the formation of the size of the balance of its monetary assets.

5.Based on the level of volume sufficiency, the following types of cash flows of an enterprise are distinguished:

· excess cash flow. It characterizes a cash flow in which cash receipts significantly exceed the enterprise’s real need for targeted spending. Evidence of excess cash flow is a high positive value of net cash flow that is not used in the process of carrying out the economic activities of the enterprise;

· deficient cash flow. It characterizes a cash flow in which cash receipts are significantly lower than the real needs of the enterprise for their targeted spending. Even if the amount of net cash flow is positive, it can be characterized as deficit if this amount does not meet the planned need for spending cash in all planned areas of the enterprise’s economic activity. A negative value of the amount of net cash flow automatically makes this flow scarce.

6.According to the time estimation method, the following types of cash flow are distinguished:

· real cash flow. It characterizes the cash flow of an enterprise as a single comparable value, reduced by value to the current point in time;

· future cash flow. It characterizes the cash flow of an enterprise as a single comparable value, reduced by value to a specific upcoming point in time. The concept of future cash flow can also be used as its nominal value at a future point in time (or in the context of upcoming intervals of a future period), which is used for discounting in order to bring it to the present value.

The types of cash flow of an enterprise under consideration reflect the content of the concept of assessing the value of money over time in relation to the business operations of the enterprise.

7.Based on the continuity of formation in the period under review, the following types of cash flows of the enterprise are distinguished:

· regular cash flow. It characterizes the flow of receipts or expenditures of funds for individual business transactions (cash flows of one type), which in the time period under consideration is carried out continuously at separate intervals of this period. Most types of cash flows generated by the operating activities of an enterprise are regular in nature; flows associated with servicing financial credit in all its forms; cash flows ensuring the implementation of long-term real investment projects, etc.;

· discrete cash flow. It characterizes the receipt or expenditure of funds associated with the implementation of individual business transactions of the enterprise in the period of time under consideration. The nature of a discrete cash flow is a one-time expenditure of funds associated with the acquisition by an enterprise of an integral property complex, the purchase of a franchising license; receipt of financial resources in the form of gratuitous assistance, etc.

When considering these types of cash flows of an enterprise, you should pay attention to the fact that they differ only within a specific time interval. Given a certain minimum time interval, all cash flows of an enterprise can be considered discrete. And, conversely, within the life cycle of an enterprise, the predominant part of its cash flows is of a regular nature.

8.According to the stability of time intervals of formation, regular cash flows are characterized by the following types:

· regular cash flow at regular time intervals within the period under review. Such a cash flow of receipt or expenditure of funds has the nature of an annuity (it will be discussed in detail in the process of presenting the concept of assessing the value of money over time);

· regular cash flow with uneven time intervals within the period under review. An example of such a cash flow is a schedule of leasing payments for leased property with uneven time intervals agreed upon by the parties for their implementation throughout the leasing period of the asset.

The considered classification allows for more targeted accounting, analysis and planning of cash flows of various types at the enterprise.

1.3 Cash flow management information system

The content of the information support system for cash flow management, its breadth and depth are determined by the sectoral characteristics of the activities of enterprises, their organizational and legal form of operation, the volume and degree of diversification of economic activities and a number of other conditions. Specific indicators of this system are formed due to both external (located outside the enterprise) and internal sources of information. In the context of each of the groups of these sources, the entire set of indicators included in the cash flow management information system is preliminarily classified.

The system of indicators for information support for cash flow management, generated from external sources, is divided into four main groups:

1.Indicators characterizing the general economic development of the country. The system of informative indicators of this group serves as the basis for analyzing and forecasting the conditions of the external economic environment of the enterprise when making the most important decisions in the field of organizing cash flows. The formation of a system of indicators for this group is based on published state statistics.

The indicators included in the first group are divided into two blocks.

The first block - "Indicators of macroeconomic development" - contains the following main informative indicators:

· rate of change in the volume of gross domestic product;

· rate of change in the volume of national income;

· inflation index;

· central bank discount rate.

The second block - “Industry Development Indicators” - contains the following main informative indicators for the industry to which the enterprise belongs:

· rate of change in the volume of production (sales) of products;

· average profitability and profitability of product sales;

· average cost of production and sales of products;

· tax rates of income, costs and profits for core activities;

· price index for industry products in the period under review;

· the rate of change in the volume of investment activity of industry enterprises;

· the share of equity and borrowed capital used in the process of carrying out economic activities of enterprises in the industry.

2.Indicators characterizing the situation in the financial and commodity markets. The system of informative indicators of this group serves to make management decisions in the field of generating cash flows from operating activities, forming a portfolio of financial investments, and ensuring effective cash flow. The formation of a system of indicators for this group is based on publications of periodicals and commercial publications; stock and commodity exchanges, as well as on relevant electronic sources of information.

In this group of informative indicators, there are usually three main blocks.

The first block - "Indicators of stock market conditions" - contains the following basic information data:

· types of main stock instruments traded on the exchange and over-the-counter stock markets;

· quoted supply and demand prices of the main types of stock instruments;

· volumes and prices of transactions for the main types of stock instruments;

· composite index of price dynamics on the stock market.

The second block - “Indicators of market conditions for real capital goods” - contains the following basic informative indicators:

· types of labor tools related to the industry specifics of the enterprise, traded on the exchange and over-the-counter commodity markets;

· types of intangible assets offered on the market;

· types of raw materials and supplies offered on the exchange and over-the-counter commodity markets;

· quoted supply and demand prices of basic real capital goods;

· volumes and prices of transactions for the main types of real capital goods on the exchange market;

· index of price dynamics for basic capital goods.

The third block - “Indicators of market conditions for finished products” - contains the following main informative indicators:

· volumes of supply and demand in the relevant segments of the regional market for the enterprise’s finished products;

· price range for certain types of finished products, taking into account their positioning in the market;

· index of price dynamics for the main types of finished products on the regional (and in some cases, on the world) market.

3.Indicators characterizing the activities of counterparties and competitors. The system of informative indicators of this group is used mainly for making operational management decisions on certain aspects of the formation of the enterprise’s funds. These indicators are usually formed in the context of the following blocks: “Banks”; "Leasing companies"; "Insurance companies"; "Suppliers of raw materials and supplies"; "Buyers of finished products"; "Competitors". The source of the formation of indicators for this group is the publication of reporting materials in the press (for certain types of business entities such publications are mandatory); corresponding ratings of companies with the main performance indicators of their activities (for banks, insurance companies); paid business certificates provided by information companies (operating on a legitimate basis).

The composition of the informative indicators of each block is determined by the specific goals of cash flow management.

4.Normative and regulatory indicators established by relevant legal acts. The system of these indicators is taken into account in the process of preparing management decisions related to the peculiarities of state regulation of the enterprise’s cash flows. These indicators are formed, as a rule, in the context of two blocks: “Normative and regulatory indicators on various aspects of the economic activities of enterprises related to the formation of cash flows” and “Normative and regulatory indicators related to the functioning of individual segments of the financial and commodity markets.” The source of the formation of indicators of this group are regulations adopted by various government bodies.

The system of indicators for information support for cash flow management, generated from internal sources, is divided into three groups:

1.Indicators characterizing the results of generating cash flows for the enterprise as a whole. The system of informative indicators of this group is widely used by both external and internal users.

It is used in the process of express analysis, ongoing planning and development of cash flow management policies. This information provides the most generalized description of the formation of cash flows of an enterprise in a particular reporting period. The formation of a system of indicators for this group is based on data from standardized financial accounting of the enterprise.

The indicators included in this group are divided into three main blocks.

The first block - “Indicators characterizing cash flow” - contains data from the corresponding form of the enterprise’s financial report. These indicators are grouped by operating, investing and financial activities and characterize both the receipt and expenditure of certain types of funds. Based on the data in this report, the volume of the enterprise's net cash flow and the dynamics of its cash balance in the period under review can be determined.

The second block - “Indicators characterizing the generalized final financial results of economic activities” - contains data from the “Financial Results Report” for the corresponding period. This report consists of three sections. The first section - “Financial results” - reflects the amount of income (revenue) from the sale of products (goods, works, services); taxes and fees paid from income; net income from product sales; cost of goods sold; other operating and non-operating income; profit or loss. The second section - "Elements of operating costs" - reflects their main types and volumes in the reporting period in comparison with the previous period (material costs, labor costs, depreciation, etc.). The third section - "Calculation of share profitability indicators" - provides data on the amount of profit and dividends per common share.

The third block - “Indicators characterizing the movement of certain types of assets and capital” - contains data from the reporting Balance Sheet of the enterprise. They give an idea of ​​the dynamics of the value of certain types of current and non-current assets of the enterprise, as well as the composition of its own and borrowed capital.

.Indicators characterizing the formation of cash flows in the context of individual structural divisions of the enterprise. The system of this group of indicators is used for current and operational management of almost all aspects of the formation of cash flows of an enterprise for all types of its economic activities. The formation of a system of indicators for this group is based on published management accounting organized at the enterprise.

This type of accounting is developing in connection with the transition of enterprises in our country to an accounting system generally accepted in international practice, which can significantly supplement financial accounting. It is a system for recording all the necessary indicators that form the information base for operational management decisions (mainly in the field of managing the formation and use of profits) and planning the activities of the enterprise in the coming period.

In comparison with financial management accounting, it has the following main advantages: it reflects not only cost, but also natural values ​​of indicators (and therefore trends in prices for raw materials, finished products, etc.); the frequency of presentation of management accounting results fully corresponds to the need for information for making operational decisions (if necessary, information can be provided even daily); this accounting can be structured in any context - by responsibility centers, types of financial activities, etc. (with simultaneous aggregation of indicators for the entire enterprise); it can reflect individual cash flows taking into account inflation rates, the time value of money, etc. The results of this accounting are a trade secret of the enterprise and should not be provided to external users.

In the process of building an information support system for cash flow management, management accounting is designed to form groups of indicators that reflect the volume of activity, the amount and composition of costs, the amount and composition of income received, and others. These groups of indicators are formed in the process of management accounting, usually in the following blocks:

· by regional divisions of the enterprise;

· according to the “responsibility centers” of the enterprise.

.Internal regulatory and planning indicators related to the formation of cash flows of the enterprise. These indicators are used in the process of current and operational control over the progress of the formation and use of funds of the enterprise. They are formed directly at the enterprise in two blocks.

The first block - “The system of internal standards governing various aspects of the formation of enterprise cash flows” - contains standards (target indicators) for specific cash flow; minimum liquidity of assets, etc.

The second block - “System of planned indicators for the formation of cash flows” - contains the entire set of indicators of current and operational plans for the economic activity of the enterprise related to the management object under consideration.

The use of all indicators of interest, generated from external and internal sources, makes it possible to create at each enterprise a targeted information support system for cash flow management, focused both on making long-term decisions and on effective ongoing management of them.

Chapter 2. Methods for analyzing enterprise cash flows

1 Cash flow analysis methods that do not use discounting

An important component of the enterprise's cash flow management mechanism are systems and methods for their analysis. Cash flow analysis is a process of studying the effective indicators of their formation at an enterprise in order to identify reserves for further improving the efficiency of their functioning.

To solve specific problems of analytical research, a number of special systems and methods for analyzing cash flows are used, which make it possible to obtain a comprehensive quantitative assessment of the results of their multidimensional functioning at the enterprise, both statically and dynamically. In the theory of financial management, depending on the methods used, the following systems of analysis are distinguished, carried out at an enterprise when studying the functioning of cash flows: horizontal financial analysis; vertical financial analysis; comparative financial analysis; analysis of financial ratios; integral financial analysis.

I. Horizontal (or trend) financial analysis is based on the study of the dynamics of individual financial indicators over time. In the process of using this analysis system, the growth rates (growth) of individual financial reporting indicators for a number of periods are calculated and the general trends in their change (or trend) are determined. In the cash flow management system, the following types of horizontal (trend) financial analysis are most widespread:

· Study of the dynamics of cash flow indicators of the reporting period in comparison with indicators of the previous period (for example, with indicators of the previous month, quarter, year).

· Study of the dynamics of cash flow indicators of the reporting period in comparison with indicators of the same period last year (for example, indicators of the second quarter of the reporting period with similar indicators of the second quarter of the previous year). This type of horizontal financial analysis is used in enterprises with pronounced seasonal characteristics of economic activity.

· Study of the dynamics of cash flow indicators for a number of previous periods. The purpose of this type of analysis is to identify trends in changes in individual indicators that characterize the results of the functioning of the enterprise’s monetary assets (determining the trend line over time). All types of horizontal (trend) analysis of cash flows are usually supplemented by a study of the influence of individual factors on changes in the corresponding performance indicators. The results of such an analytical study make it possible to construct appropriate dynamic factor models, which are then used in the process of planning the enterprise's cash flows.

II. Vertical (or structural) financial analysis is based on the structural decomposition of individual indicators of the enterprise's financial statements. In the process of carrying out this analysis, the share of individual structural components of aggregated financial indicators is calculated. In the cash flow management system, the following types of vertical (structural) analysis are most widespread:

1.Structural analysis of enterprise cash flows by type of economic activity. Such an analysis serves as a prerequisite for calculating efficiency indicators for the formation of flows in the context of individual types of activities and conducting a corresponding factor analysis of this efficiency for the enterprise as a whole.

.Structural analysis of cash flows by internal divisions of the enterprise (“responsibility centers”). The results of this analysis serve as the basis for subsequent in-depth comparative and factor analysis of the efficiency of generating enterprise cash flows.

3.Structural analysis of positive (negative) cash flow by individual elements of its formation. Such an analysis allows us to identify the most important components of the formation of positive or negative cash flows of an enterprise, taking into account the specifics of its economic activities.

III. Comparative financial analysis is based on comparing separate groups of similar indicators with each other. In the process of using this analysis system, the sizes of absolute and relative deviations of the compared indicators are calculated. In the enterprise cash flow management system, the following types of comparative financial analysis are most widespread:

1.Comparative analysis of cash flow indicators in the context of the internal structural divisions of this enterprise (its “responsibility centers”). Such an analysis is carried out for the purpose of comparative assessment and search for efficiency reserves in the formation of cash flows of the internal divisions of the enterprise.

2.Comparative analysis of cash flow indicators of individual real investment projects. Such an analysis serves as the basis for assessing the expected effectiveness of individual compared investment projects when forming a real investment program for an enterprise.

.Comparative analysis of cash flow indicators of individual financial investment instruments. The results of this analysis are used in the process of forming and restructuring the enterprise's financial investment portfolio.

.Comparative analysis of reporting and planned (normative) indicators of cash flow generation. Such an analysis forms the basis for the cash flow controlling organized at the enterprise. In the process of this analysis, the degree of deviation of the reporting indicators from the planned (standard) ones is revealed, the reasons for these deviations are determined and conclusions are drawn about the need to adjust certain areas of the enterprise’s economic activities and its cash flows.

IV. Analysis of financial ratios (R-analysis) is based on calculating the ratio of various absolute indicators of the financial activity of an enterprise to each other. In the process of using this analysis system, various relative indicators are determined that characterize individual indicators of cash flows and the degree of their influence on the overall level of the financial condition of the enterprise. In the cash flow management system, the following groups of analytical financial ratios are most widespread.

1.Ratios characterizing the level of liquidity of cash flows. They characterize the company’s ability to pay its financial obligations in a timely manner. The following indicators play the most important role in the process of such assessment:

a) liquidity ratio of the enterprise's cash flow. It shows the extent to which the company's gross positive cash flow covers its negative cash flow. This indicator is calculated using the following formula (2.1):

, (2.1)

Where - liquidity ratio of the enterprise's cash flow in the period under review; PDP - the amount of gross positive cash flow of the enterprise in the period under review; ECF is the amount of gross negative cash flow of the enterprise in the period under review.

b) absolute solvency ratio or (KAP). It shows the extent to which all current financial obligations of the enterprise are secured by the ready means of payment available to it on a certain date. This coefficient is calculated using formula (2.2):

, (2.2)

where YES is the amount of monetary assets of the enterprise as of a certain date; KFV - the amount of short-term financial investments of the enterprise as of a certain date; - the sum of all short-term (current) financial obligations of the enterprise as of a certain date.

c) intermediate solvency ratio (IPR). It shows to what extent all short-term (current) financial obligations can be satisfied at the expense of its highly liquid assets (including ready means of payment). To determine this indicator, the following formula (2.3) is used:

, (2.3)

where YES is the amount of monetary assets of the enterprise (average or as of a specific date); KFV - the amount of short-term financial investments (average or as of a specific date); DZ - the amount of current accounts receivable of all types (average or as of a specific date); - the sum of all short-term (current) financial liabilities of the enterprise (average or as of a specific date).

d) current solvency ratio (CTR). It shows to what extent all debt on short-term (current) financial obligations can be satisfied at the expense of all its current (current) assets. This indicator is calculated using formula (2.4):

, (2.4)

where OA is the sum of all current assets of the enterprise (average or as of a certain date); - the sum of all short-term (current) financial liabilities of the enterprise (average or as of a specific date);

e) the general ratio of receivables and payables ( ). It characterizes the general ratio of settlements for these types of debt of the enterprise. This indicator is calculated using formula (2.5):

, (2.5)

Where - the total amount of the enterprise’s current accounts receivable of all types (average or as of a specific date); - the total amount of the enterprise's accounts payable of all types (average or as of a specific date);

f) the ratio of receivables and payables for commercial transactions ( ). This indicator characterizes the ratio of payments for purchased and delivered products. To determine this indicator, formula (2.6) is used:

, (2.6)

Where - the amount of the enterprise’s receivables for products (goods, works, services), calculated as an average or as of a specific date; - the amount of accounts payable of an enterprise for products (goods, services, work), calculated as an average or for a specific date.

2.Coefficients characterizing the turnover of individual assets in the process of cash turnover of an enterprise. To a certain extent, they make it possible to assess the rate of cash turnover of an enterprise. For this assessment, the following coefficients are used:

a) the number of turnovers of monetary assets and their equivalents in the period under review ( ). This indicator is calculated using the following formula (2.7):

, (2.7)

The average amount of short-term (current) financial investments of the enterprise (characterizing its cash equivalents) in the period under review (calculated as the chronological average);

b) the period of turnover of monetary assets and their equivalents ( ). This indicator is calculated using the following formula (2.8):

;, (2.8)

Where - the average amount of monetary assets of the enterprise in the period under review (calculated as the chronological average); - the average amount of short-term (current) financial investments of the enterprise (characterizing its cash equivalents) in the period under review (calculated as the chronological average); - one-day volume of product sales in the period under review; - the number of turnovers of monetary assets and their equivalents in the period under review.

c) the number of turnovers of the enterprise’s current assets in the period under review ( ). This indicator is calculated using the following formula (2.9):

, (2.9)

where OR is the total volume of product sales in the period under review; - the average value of current assets in the period under review (calculated as the chronological average);

d) period of turnover of current assets in days ( ). This indicator is calculated using the following formulas (2.2):

;, (2.2)

Where - the average value of current assets in the period under review (calculated as the chronological average); - the number of turnovers of current assets in the period under review;

e) the number of turnovers (CR) of all assets used in the period under review. This indicator is determined by the following formula (2.11):

, (2.11)

where OR is the total volume of product sales in the period under review; - the average value of all used assets of the enterprise in the period under review (calculated as the chronological average);

f) the turnover period of all used assets in days ( ). This indicator can be calculated using the following formulas (2.12):

;, (2.12)

Where - the average value of all used assets of the enterprise in the period under review; - one-day volume of product sales in the period under review; D - number of days in the period under review; - the number of turnovers of all used assets in the period under review.

3.Coefficients characterizing the level of cash flow efficiency. They provide a generalized description of the efficiency of generating cash flows of an enterprise. The main of these indicators are:

a) the enterprise’s cash flow efficiency ratio; the following formula (2.13) is used to calculate it:

, (2.13)

Where - efficiency ratio of the enterprise's cash flow in the period under review; NPV - the amount of net cash flow of the enterprise in the period under review; ECF - the amount of gross negative cash flow of the enterprise in the period under review;

b) the adequacy ratio of the enterprise's net cash flow. It is calculated using the following formula 2.14):

, (12.14)

Where - adequacy ratio of the enterprise’s net cash flow in the period under review; NPV - the amount of net cash flow of the enterprise in the period under review; OD - the amount of principal payments on long-term and short-term loans and borrowings of the enterprise; - the amount of increase in inventories of inventory items as part of the current assets of the enterprise; - the amount of dividends (interest) paid to the owners of the enterprise (shareholders) on invested capital (shares, shares, etc.).

c) the reinvestment ratio of the enterprise’s net cash flow. This indicator is calculated using the following formula (2.15):

, (2.15)