Cash flow management at "Hlib-Treid" Ltd.
Students Name: Duma Nataliia Ihorivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2020-2021 н.р.
Language of Defence: ukrainian
Abstract: Duma N.I., Partyn H. O. (supervisor). Cash flow management at «Hlib-Treid» Ltd. Master’s thesis. – Lviv Polytechnic National University, Lviv, 2020. Extended abstract. Cash flow is the set of events consistently distributed over time, which are associated with separate and logically complete fact of change of ownership of funds through the fulfillment of obligations between economic agents [2, p.74]. Cash flow items should be set at each company individually, as they reflect the specifics of its activities [6, p.153]. The entity’s performance is assessed by using a variety of methods, which are usually based on data about its actual or expected profit. However, this indicator is not always an objective tool to reflect the real situation in the enterprise. This dissonance is described by scientists as the concept of "profit paradox" - the company can make a profit, but haven’t money, or vice versa: to own money in the absence of profit [7, p.159]. Therefore, there is an objective need to focus on analyzing the effectiveness of cash flow management as an important structural component of the study of financial condition and the level of overall efficiency of the entity. Beside this, effective cash flow management, as well as their optimization play an important role in ensuring a sufficient level of solvency, financial stability and profitability in the long run [1, p.4]. The method of cash flow analysis is a multicomponent model and consists of the following elements: horizontal and vertical analysis of cash flows; analysis of the formation of incoming and outgoing cash flows; analysis of the influence of factors on the formation of net cash flow; coefficient analysis, the purpose of which is to study cash flows in terms of their quality, rhythm, efficiency and synchronicity [5, p.201]. Cash flow management is a system of certain methods and principles of development and implementation of management decisions related to the formation, distribution and use of funds and the organization of their circulation, aimed at ensuring the financial balance of the entity and its sustainable growth [8, p. 241]. It is also important to note that the cash flow management system is individual for each business entity, because it is necessary to take into account the peculiarities of its financial and economic activities, as well as specific conditions of external and internal environment [4, p.52]. The main directions of cash flow optimization in the enterprise are balancing the amount of cash flows, because both deficit and excess cash flows have a negative impact on the results of economic activity of the entity; synchronization (equalization) of cash flows over time; optimization and maximization of the amount of net cash flow [3, p.63]. Thus, the analysis of the level of cash flow management of the entity and their optimization (in volume and time) is an integral and extremely important component of the overall management system of the enterprise in today’s market conditions, and especially in the implementation of anti-crisis policies. Extended abstract. Study object – cash flows at «Hlib-Treid» Ltd. Scope of research – theoretical, methodological and practical aspects of cash flow management at «Hlib-Treid» Ltd. Goal of research: research the theoretical and practical aspects of cash flow management of the enterprise and substantiation of measures aimed at eliminating the identified problems in cash flow management at the existing enterprise. In the master’s thesis the theoretical and practical aspects of cash flow management of the enterprise are investigated on the example of data of «Hlib-Treid» Ltd. In the first section are analyzed the theoretical approaches of scientists and researchers to the interpretation of the essence of the concept "cash flow", its functions are explored, are identified factors and methods of optimization and determines that the main methodological approach to assessing the effectiveness of cash flow management of the entity is to calculate a list of absolute and relative indicators. Except this, the analysis of the financial condition and the analysis of efficiency of cash flows management of «Hlib-Treid» Ltd. are carried out. The results of the analysis revealed the main reasons for the positive and negative trends in the financial condition of the object of study. In the second section a SWOT-analysis of the financial and economic activities of «Hlib-Treid» Ltd. was conducted in order to determine the main strategic development directions of financial and economic activity of the enterprise for the future. In the process of economic-mathematical modeling based on correlation-regression analysis, was detect the existence of a strong relationship between the amount of incoming cash flow from operating activities and revenue from sales. Forecasting the coefficient of the cash flow efficiency of the enterprise is carried out using the least squares method. In the third section the list of measures which will promote increase the level of efficiency of cash flows management of «Hlib-Treid» Ltd. is offered. Beside this, economic results from the proposed solutions are calculated. Keywords: cash flow management of the enterprise, cash flow optimization, cash flow, an efficiency of cash flow management, сash flow statement. References. 1. Alieksieiev I. V., Zhelizniak R. Y. (2020). Optymizatsiia hroshovykh potokiv z metoiu zmitsnennia finansovoi stiikosti strakhovykh kompanii [Optimization of cash-flow to increasing financial stability of insurance companies]. 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