Research of the impact of receivables on the business activity of "Agro Tarkom" LLC
Students Name: Karpets Alina Ruslanivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: In the conditions of economic instability, the task of every enterprise is to maximize its profit, this can be achieved by applying various approaches to entrepreneurship, one of which is the correct balancing of the amount of receivables. Since this indicator is very important for all enterprises, without which it is impossible to ensure maximum efficiency, therefore this issue is relevant in today’s conditions. Accounts receivable is a fairly objective phenomenon, as L. V. Kononenko, N. P. Sysolina call it. and Yurchenko O.V. in his work [1, p.104-105]. Relative indicators of turnover best reflect the state of receivables [2,3,4,5]. The use of receivables management methods is important during effective management [6,7]. The object of the study is the operational activity (sale of plant protection chemical products) of Agro tarkom LLC. The subject of the master’s thesis is the receivables available at Agro Tarkom LLC, namely its impact on the business activity of the enterprise in general. The purpose of the study is to acquire in-depth skills in conducting a thorough financial analysis of Agro Tarkom LLC, strategic analysis, and, based on the results of the analysis, to select the most rational management measures. In the course of the work, an analysis of the financial status of Agro Tarkom LLC was conducted for Agro Tarkom LLC for 2019-2021, the main source for obtaining data for all balance sheets is financial reporting. Based on the results of the analysis, it was found that the company is profitable, but in 2021 all financial indicators show a negative trend, the main reason for which is a significant increase in receivables in 2021. A strategic analysis was also conducted based on the results of which a SWOT matrix was formed, which reflects strategies for reducing the impact of threats and weaknesses by strengthening the impact of strengths and opportunities. Strengths include: small market share, tariff policy, competitors in the industry, unstable economy going through a war period. As for the strengths, they are the high quality of the products sold, cooperation with well-known manufacturers of plant protection products, highly qualified personnel with extensive work experience in this field, and the innovative potential of the field of activity in general. Optimization of receivables was carried out using the economic-mathematical method of modeling and forecasting this indicator. As a summary, a number of management decisions are given that will help minimize the amounts of receivables in the following periods and improve the profitability of the enterprise. In particular, the creation of a position where the employee will be responsible for debtors (previous and current analysis of debtors), the application of discounts, financial sanctions in order to stimulate payment on time, as well as the management of bad debts with the help of factoring. Calculations were made and it was found that the proposed methods will help to reduce the amount of receivables by 30% and at the same time increase profitability by 15%. Keywords - accounts receivable, financial condition, SWOT matrix, forecasting, economic-mathematical modeling, factoring. List of used sources. 1. Kononenko, L. V., N. P. Sysolina, and O. V. Yurchenko. "Management of receivables: current state, problems, prospects, information support." Economic Space 166 (2021): 104-109. [Electronic resource] - Access mode: http://prostir.pdaba.dp.ua/index.php/journal/article/view/821/796; 2. Bilyka, M., Butyntsia, F., Bufatina, I., Valueva, B., Golov, S., Yefimenka, V., ... & Dubrovskoi, E. (2022). Separate problems of the organization of management of receivables of the enterprise. Actual problems of modern business: accounting and financial and. [Electronic resource] - Access mode: lib.pnu.edu.ua:8080/bitstream/123456789/13252/1/ 23.03.2022; 3. O. I. Stepanenko, M. F. Dubovik "Analysis of accounts receivable, its impact on the financial condition and business activity of the enterprise." (2022). [Electronic resource] - Access mode: https://ir.kneu.edu.ua/bitstream/handle/2010/37945/Dub_2022_2.pdf?sequence=1&isAllowed=y; 4. Kurylo O. B. The impact of CVID-19 on the amount of current assets of industrial enterprises: Abstracts of VIII international scientific and practical conference / O. B. Kurylo, A. R. Karpets – Fundamental and applied research in the modern world/ March 2021 – p.596-600; 5. Nazarenko, O. V., & Lukash, T. V. (2021). Formation of individual components of the company’s accounting policy regarding receivables. Agrosvit, (12), 15-21. 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