Cash Flow as an Important Factor in Managerial Decision-Making
Journal Title: Бізнес Інформ - Year 2015, Vol 10, Issue 0
Abstract
The article is aimed at studying the money flow as a basis for managerial decision-making from the perspective of providing the dynamic financial balance of enterprise. Focus on the cash flow management significantly increases the ability of business to «generate money». The publication proposes a cash flow matrix approach to estimation of the proportion of cash flows of enterprise and its operating, investing and financing activities, which provides for diagnosing the quality of net cash flow of enterprise depending on the level and volume of cash flows by the individual activities. It has been substantiated that the underlying liquidity of an enterprise depends on the quality of the cash flows from operating and investing activities, and the cash flow from financing activities must perform an equilibrating role in ensuring the dynamic balance in the process of enterprise development. A classification field of possible situations to determine the status of the underlying liquidity of an enterprise has been developed; an example of describing the situations that characterize the company's ability to generate net cash flow, depending on the results of each of the activities, has been provided. The proposed cash flow matrix approach allows to estimate the nature of formation of net cash flow at a specific enterprise and improve management efficiency through the use of appropriate financial mechanisms.
Authors and Affiliations
Iryna Sokyrynska
Keywords
Related Articles
- EP ID EP153888
- DOI -
- Views 124
- Downloads 0
Development of Methodical Approaches to Assessment of Risks of the Subjects of Foreign Economic Activity when the Execute Export Contracts
The article analyses and specifies the "risk" notion with respect to execution of an export operation by subjects of foreign economic activity. It provides a scheme of execution of an export contract and marks out possib...
Study of the Factors of Labour Market Formation for Provision of Internal Marketing of Companies under Conditions of Uncertainty of Determinants of Demand and State of Competitive Situation
The article identifies specific features and analyses existing approaches to the study of the labour market of marketologists that are capable of satisfying requirements of the employer-company in contact personnel under...
Estimating the Impacts of Customs Risks on the Machine-Building Enterprises' Activities
The article is aimed at analysis of impacts of customs risks on activities of machine-building enterprises, identifying the main impacts of the business customs risks in terms of resource supporting the activity of enter...
Complex Assessment of Labour Potential of an Agricultural Company of Zaporizhia Oblast
Assessment of the labour potential of a company does not have a common methodical approach. Excessive number of non-systemised indicators, which are included into assessment, is also a problem. The article presents autho...
State of Technological Development of Crop Production by Rural Territorial Economic Systems
Low level of distribution of innovations and technological development in the Russian agriculture exerts a negative influence upon the basic branch of the economy of rural territories - crop production, which, by product...