Cash flow management at an enterprise on the example of MGTS OJSC

The diploma was defended on 4.

There are shortcomings in chapter 3, there is practically no practice - the topic is not sufficiently disclosed (one theory).

All good defense.

Introduction page 7

1. Theoretical foundations of cash flow management in the enterprise page 9

1.1 Concept, essence of cash flow management 9 page

1.2 Cash flow planning page 18

1.3 Fundamentals of cash flow analysis page 23

2. Analysis of cash flow management at the enterprise JSC "MGTS" 35 page

2.1 General characteristics of the enterprise page 35

2.2 Analysis of the dynamics and factors of changes in the volume of cash

threads 42 pages

2.3 Relative cash flow analysis page 48

3. Recommendations for improving the management of enterprise cash flows 56 pages

3.1 The main directions for improving the management of cash flows of the enterprise 56 page

3.2 Improving cash flow planning

OJSC MGTS 61 page

3.3 Directions for optimizing cash flows and management decisions 68 pages

Conclusion page 81

List of sources used 85 pages

Introduction

During the global financial crisis, many enterprises faced an acute shortage of funds they needed to carry out their current and investment activities.

When considering the reasons, one can single out the low efficiency of attracting and using financial resources, the limited nature of the financial instruments, technologies and mechanisms used in this case. Since financial instruments and technologies are always based on the developments of financial science and practice, their use is especially relevant when there is a lack of financial resources.

Cash flow management is part of financial management and is carried out within the framework of the financial policy of the enterprise, which the enterprise adheres to in order to achieve the general economic goal of its activities. The objective of the financial policy is to build an effective financial management system that ensures the achievement of the strategic and tactical goals of the enterprise.

The rational formation of cash flows contributes to the rhythm of the operating cycle of the enterprise and ensures the growth of production volumes and product sales. At the same time, any violation of payment discipline has a negative impact on the formation of inventories of raw materials and materials, the level of labor productivity, the sale of finished products, the position of the enterprise on the market, etc. Even enterprises that successfully operate in the market and generate a sufficient amount of profit may experience insolvency as a consequence of the imbalance of various types of cash flows over time.

Cash flow management is an important factor in accelerating the capital turnover of an enterprise. This is due to a reduction in the duration of the operating cycle, a more economical use of own funds and a decrease 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 its assets and, as well as minimizing the cost of financing business activities.

The calculation of the net cash flow for the enterprise as a whole, its individual structural divisions (responsibility centers), various types of economic activities or individual business transactions is carried out according to the following formula:

NDP \u003d PDP-ODP, (1)

where NPV is the amount of net cash flow in the period under review;

RAP - the amount of positive cash flow (cash receipts) in the period under review;

NFP - the amount of negative cash flow (expenditure of funds) in the period under review.

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 ​​that determine the final result of the corresponding economic activity of the enterprise and ultimately affect the formation and dynamics of the balance of its monetary assets. .

5. According to the level of volume sufficiency, the following types of cash flows of the enterprise are distinguished:

- excess cash flow. It characterizes such a cash flow in which cash receipts significantly exceed the real need of the enterprise for their purposeful 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 activity of the enterprise;

- deficient cash flow. It characterizes such a cash flow in which cash receipts are significantly lower than the actual needs of the enterprise in their purposeful spending. Even with a positive value of the amount of net cash flow, it can be characterized as a deficit if this amount does not meet the planned need for spending money in all the envisaged areas of the enterprise's business activities. The negative value of the amount of net cash flow automatically makes this flow scarce.

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

- Real cash flow. It characterizes the cash flow of the enterprise as a single comparable value, reduced in value to the current point in time;

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

The considered types of cash flow of the enterprise reflect the content of the concept of estimating the value of money in time in relation to the business operations of the enterprise.

7. According to 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 receipt or expenditure of funds for individual business transactions (cash flows of the same type), which in the period under consideration is carried out constantly at separate intervals of this period. The nature of the regular are most types of cash flows generated by the operating activities of the enterprise: flows associated with servicing a financial loan in all its forms; cash flows that ensure the implementation of long-term real investment projects, etc.;

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

Considering these types of cash flows of the enterprise, you should pay attention to the fact that they differ only within a specific time interval. With a certain minimum time interval, all cash flows of the enterprise can be considered as discrete. And vice versa - within the framework of 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 with uniform time intervals within the period under review. Such a cash flow of receipt or expenditure of funds is in the nature of an annuity;

- regular cash flow with uneven time intervals within the period under review. An example of such a cash flow is a schedule of lease payments for leased property with uneven time intervals agreed upon by the parties during the lease period of the asset.

The considered classification allows more purposefully to carry out accounting, analysis and planning of cash flows of various types in the enterprise.

The cash flow of an enterprise is a set of time-distributed receipts and payments of cash generated by its economic activities.

The high role of effective cash flow management of an enterprise is determined by the following main provisions:

1. Ensures the financial balance of the enterprise in the process of its strategic development. The pace of development, the financial stability of an enterprise is largely determined by how different types of cash flows are synchronized with each other in terms of volume and time. The high level of such synchronization provides a significant acceleration of the implementation of the strategic goals of the enterprise development.

2. Allows you to reduce the company's need for borrowed capital. By actively managing cash flows, you can ensure a more rational and economical use of your own financial resources generated from internal sources, reduce the dependence of the pace of enterprise development on loans.

3. It is an important financial lever that ensures the acceleration of the capital turnover of the enterprise. This is facilitated by a reduction in the duration of the production and financial cycles, achieved in the process of effective cash flow management, as well as a decrease in the need for capital serving the economic activity of the enterprise. By accelerating the turnover of capital through effective cash flow management, the enterprise ensures the growth of the amount of profit generated over time.

4. Provides a reduction in the risk of insolvency of the enterprise. Even for enterprises that successfully carry out business activities and generate a sufficient amount of profit, insolvency can occur as a result of the imbalance of various types of cash flows over time. Synchronization of receipts and payments of funds, achieved in the process of managing the cash flows of the enterprise, allows to eliminate this factor in the occurrence of its insolvency.

5. Allows the enterprise to receive additional profit generated directly by its monetary assets. First of all, we are talking about the effective use of temporarily free cash balances as part of current assets, as well as accumulated investment resources in the implementation of financial investments. A high level of synchronization of receipts and payments of funds in terms of volume and time makes it possible to reduce the real need of the enterprise for current and insurance balances of cash assets serving the operating process, as well as a reserve of investment resources formed in the process of real investment. Thus, the effective management of the company's cash flows contributes to the formation of additional investment resources for the implementation of financial investments, which are a source of profit.

The elements of the cash flow management system include financial methods and tools, regulatory, information and software.

Among the financial methods that have a direct impact on the dynamics and structure of the enterprise's cash flows, there is a system of settlements with debtors and creditors; relationships with founders (shareholders), contractors, government bodies; lending; financing; fund formation; investment; insurance; taxation; factoring, etc.;

Financial instruments combine money, loans, taxes, forms of payment, investments, prices, bills of exchange and other stock market instruments, depreciation rates, dividends, deposits and other instruments, the composition of which is determined by the peculiarities of the organization of finance at the enterprise;

The legal support of the enterprise consists of a system of state laws and regulations, established norms and standards, the charter of an economic entity, internal orders and orders, and a contractual framework.

V modern conditions a necessary condition for business success is the timely receipt of information and prompt response to it, therefore important element enterprise cash flow management is intra-company information.

The use of applied accounting programs provides the financial manager with accounting and often analytical information, therefore, the choice of such programs should be approached carefully, choosing a software product that would most fully meet the requirements of reliability, reliability and transparency of information, flexibility in settings for the particular business of the enterprise, as well as would be in accordance with applicable law.

Thus, the cash flow management system at an enterprise is a set of methods, tools and specific techniques for a purposeful, continuous impact on the cash flow by the financial service of an enterprise in order to achieve the goal.

Efficient Management cash flow increases the degree of financial and operational flexibility of the company, as it leads to:

– possible discrepancies between the amount of annual net profit / loss and: real net cash flow for the main (current) economic activity and the reasons for this discrepancy;

- the impact on the financial condition of the organization of its investment and financial operations related and not related to the movement of funds;

– the impact on the future financial condition of the organization of past investment and financing decisions;

– the size of the estimated need for external financing. Despite the usefulness of structuring cash flows in three areas of activity (current, investment and financial), no less interesting for the analysis of cash flows is information about the organization's internal and external sources of financing and directions for using its financial resources.

External sources of financing - growth in the amount of equity capital (primarily authorized) and borrowed capital (primarily the total amount of loans and borrowings). The decrease in the value of own and borrowed capital can, respectively, be considered an external use of funds.

Domestic financial sources include cash at the beginning of the reporting period, proceeds from the sale (i.e., disinvestment) of non-current assets and net cash flow from operating activities (NFC). The latter is the main source of self-financing of the organization and therefore should be a significant share in the structure of internal financing of any business entity.

Calculating NDI using the indirect method, we can distinguish two of its components: active self-financing and hidden financing.

Active self-financing refers to the use primarily of own funds (net profit and depreciation), and hidden financial sources are those that can be equated to their own over a certain period of time, for example, a change in the value of own working capital, deferred income.

The change in the value of own working capital as the main hidden financial source can be calculated as the total value of the change in the size of current assets and accounts payable.

An increase in the value of current assets (tangible current assets and receivables) is considered an investment (investment), and its decrease, on the contrary, is a disinvestment.

An increase in accounts payable, including advances received, is called financing, and its decrease, respectively, is called definancing.

An analytical report (direct method) can be used to generate detailed information on the state and cash flow of an organization.

In turn, the use of the indirect method of calculating the NPV allows you to show what non-monetary items the amount of net profit (loss) declared by the organization in the income statement differs from the NPV. It often happens that an enterprise in the conditions of using the accrual method has a significant profit and, at the same time, low solvency.

An analysis of the company's cash flows includes the following steps.

1st stage. Prepare cash flow statement for economic reading.

The purpose of the first stage is to assess the “quality” of the initial data and, above all, the cash flow statement for the following items:

– definition of external and internal users of reporting;

– analysis of the structure of the cash flow statement;

– determination of the composition and value of monetary assets for which cash flows are calculated in the cash flow statement;

– verification of the completeness of accounting for expenses and income not related to cash flows;

– distribution by type of activity of ambiguously classified flows (for example, those related to the payment and receipt of interest, dividends and taxes).

Course work

« Cash flow management

on the example of LLC PKF "Strateg-E»

Performed:

Introduction……………………………………………………………………………..3

1. Theoretical foundations of cash flow management……………………..5

1.1. The concept of cash flows, their composition and classification. The role of cash flows in the business process………………………………………………………..5

1.2. Methodical approaches to the analysis of cash flows……………………...12

2. Analysis of cash flows on the example of LLC PKF "Strateg-E"…………….20

2.1. Analysis of funds at the enterprise …………………………………20

2.2. Cash flow management using the cash flow analysis of LLC PKF "Strateg-E" based on direct and indirect methods………………….26

2.3. The main directions for improving the management of cash flow…………………………………………………………………………………….35

Conclusion…………………………………………………………………………….38

List of references……………...……………………………………………………………………………………………40

Applications……………………………………………………………………………44

Introduction

The implementation of all types of financial and business operations of the organization is accompanied by the movement of funds - their receipt and expenditure. The company's cash can be defined as the amounts of cash in Russian and foreign currencies belonging to it, which are in cash, on settlement, currency and other accounts in banks. To make management decisions related to cash flow, to achieve the best effect of economic activity, the management of the organization needs constant awareness of the state of cash.

At present, when the financial position of many Russian enterprises is extremely unstable, for their financial and accounting services, one of the main objects of analysis and management should be cash flows, which are understood as all receipts and payments of funds carried out by the enterprise in the course of its current, investment and financial activities.

In general, the cash flow of an enterprise is a set of cash receipts and payments distributed over separate intervals of the considered period of time, generated by its economic activity, the movement of which is associated with time, risk and liquidity factors.

Even for successfully operating organizations, insolvency can arise as a result of the imbalance of various types of cash flows over time. Synchronization of receipts and payments of funds is an important part of the anti-crisis management of an organization in the event of a threat of bankruptcy.

Active forms of cash flow management allow the organization to receive additional profit generated directly by its monetary assets. We are talking, first of all, about the effective use of temporarily free cash balances as part of current assets, as well as accumulated investment resources in the implementation of financial investments.

Therefore, the goal of cash flow management is to obtain the necessary volume and parameters that give an objective, accurate and timely description of the directions of receipt and expenditure of funds, volume, composition, structure, objective and subjective, external and internal factors that have a different effect on the change in cash flows. . The above factors determine the relevance of the topic of the work.

aim term paper is the study of theoretical and methodological approaches to the management of the enterprise's monetary assets and the development of recommendations for LLC PKF "Strateg-E" to improve the efficiency of cash management.

To achieve the goal, the following tasks were solved in the work

The concept of cash flows, their composition and classification. The role of cash flows in the business process

Methodological approaches to the analysis of cash flows

Analysis of funds at the enterprise on the example of LLC PKF "Strateg-E"

Cash flow management using the cash flow analysis of PKF "Strateg-E" LLC based on direct and indirect methods

The main directions for improving the management of cash flow

The object of research in the work is the financial and economic activity of LLC PKF "Strateg-E". The subject is the organization's cash flows.

The theoretical and methodological basis for the performance of the work was regulatory documents, as well as the work of such domestic specialists in the field of financial management as Kovalev V.V., Selezneva N.N., Ionova A.F., Blank I.A., Stoyanova E.S. ., Efimova O.V., Sheremet, A.D., Gilyarovskaya L.G., and others.

1. Theoretical foundations of money management

1.1. The concept of cash flows, their composition and classification. The role of cash flows in the business process

In the course of business activities, organizations constantly conduct settlements with suppliers for fixed assets, raw materials and other inventory items and services rendered, purchased from them, with buyers for goods purchased by them, customers for work performed and services rendered. With credit institutions, enterprises and organizations conduct settlements on loans and other financial transactions, with the budget for various kinds of payments, with other legal entities and individuals for various business transactions. These payments are made in cash. And the very movement of funds in the process of settlements is characterized by the term "cash flow".

In general, the cash flow of an enterprise is a set of cash receipts and payments distributed over separate intervals of the considered period of time, generated by its economic activity, the movement of which is associated with time, risk and liquidity factors.

Users of financial statements often operate with terms that do not coincide with those that directly reflect accounting concepts (for example, monetary assets, cash flows (inflow, outflow), cash, financial assets, monetary aggregates, etc.). In system accounting, the main category of money capital is cash - the organization's funds in cash, settlement, currency and special bank accounts, transfers in transit, as well as financial investments of the organization.

V table 1 the interrelation of financial - economic and accounting concepts is shown, which facilitates the identification of terms. Accounting terms were chosen as key (explanatory) terms, since they are the ones that have the property of clarity, are consistently applied and recognized by all users.

Table 1

Types of money capital of a commercial organization and their relationship

Articles accounting balance and (sub)accounts accounting		Cash facilities	Cash facilities and them equivalents	Cash (monetary) assets	High- liquid assets	Pure liquid assets
Estimated accounts
Currency accounts
Special accounts
Transfers to way
Deposit deposits up to demand
Highly liquid market securities
Other short-term financial attachments
Short term accounts receivable debt
VAT on acquired values
Debt budget and public extrabudgetary funds
Banking overdrafts, advances received and other short-term borrowing

Money (banknotes) is a universal means of payment, an extremely highly liquid asset used freely in settlements between all participants in market relations - cash banknotes, coins and non-cash money in banks in national and foreign currencies.

Cash includes, in addition to money itself, also remittances in transit and, therefore, is broader than the concept of "money".

The organization's cash capital in the form of cash and cash equivalents covers such elements of the organization's short-term investments, which, under certain conditions, are equated in their characteristics to cash. Such financial instruments of the money market include highly liquid assets that can be converted into money without risk - demand deposits, highly liquid marketable securities and commercial paper.

Monetary (monetary) assets, in addition to the above, include other short-term financial investments, funds in settlements with the budget and off-budget funds(as offset amounts accepted in the assessment of tax liabilities).

In accordance with the requirements of Russian regulations, the cash flow statement is formed on the basis of information summarized in the accounting accounts of the cash desk, current accounts, foreign currency accounts and special bank accounts. Thus, the main characteristic taken into account when compiling the report is liquidity.

In international standards, the concept of money capital is presented more widely - in the form of cash and cash equivalents, i.e. when compiling the report, in addition to liquidity, temporarily free money directed to financial income instruments is taken into account. The disclosure of such information to users is essential.

In the scientific and educational literature, you can find a sufficient number of classification of cash flows for various reasons. Let us characterize the classification of cash flows according to the main features:

1. The following types of cash flows are distinguished by the scale of servicing the economic process: cash flow for the enterprise as a whole. This is the most aggregated type of cash flow, which accumulates all types of cash flows that serve the business process of the enterprise as a whole; cash flow for individual structural divisions (responsibility centers) of the enterprise. Such differentiation of the cash flow of the enterprise defines it as an independent object of management in the system; cash flow for individual business transactions. In the system of the economic process of the enterprise, this type of cash flow should be considered as the primary object of independent management.

2. By types of economic activity, the following types of cash flows are distinguished: cash flow from operating activities; cash flow from investment activities; cash flow from financial activities.

3. According to the direction of cash flow, two main types of cash flows are distinguished: positive cash flow, which characterizes the totality of cash inflows to the enterprise from all types of business transactions (the term “cash inflow” is used as an analogue of this term); negative cash flow characterizing the totality of cash payments by the 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).

4. According to the variability of the direction of cash flow
distinguish the following types of cash flows: standard cash flow. It characterizes a type of cash flow in which its direction changes no more than once (beginning or ending it); irregular cash flow. It characterizes a type of cash flow in which its direction changes more than once.

5. According to the volume calculation method, the following types of enterprise cash flows are distinguished: gross cash flow. It characterizes the totality of receipts or expenditures of funds in the period 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 the enterprise, which largely determines the financial balance and the rate of increase in its market value.

6. According to the nature of the cash flow in relation to the enterprise, it is divided into two types: internal cash flow. It characterizes the totality of receipts and expenditures of funds within the enterprise.
These receipts and payments are associated with transactions contingent on
monetary relations of the enterprise with personnel, founders (shareholders), subsidiaries, etc. Generally
the cash flow of the enterprise, its internal cash flow takes a small share; external cash flow. This type of cash flow serves the operations of the enterprise related to its monetary relations with economic partners (suppliers of raw materials and materials, buyers of products, commercial banks, insurance companies, etc.) and government agencies (tax authorities, customs services, arbitration court, etc.) .P.). The volume of this type of cash flow is the predominant part of the total cash flow of the enterprise.

7. According to the level of cash flow sufficiency, the following types of enterprise cash flows are distinguished: excess cash flow. It characterizes such a cash flow in which cash receipts significantly exceed the real need of the enterprise for their purposeful spending; scarce cash flow. It characterizes such a cash flow in which cash receipts are significantly lower than the actual needs of the enterprise in their purposeful spending.

8. According to the level of balance of the volumes of interrelated cash flows, the following types are distinguished: balanced cash flow. It characterizes this type of total cash flow for a separate business transaction, structural unit ("responsibility center") or the enterprise as a whole, for which a balance is ensured between the volumes of their positive and negative types (taking into account the provided increase in the cash reserve); unbalanced cash flow. It characterizes this type of total cash flow for a separate business transaction, structural unit ("responsibility center") or the enterprise as a whole, for which the above-mentioned balance relationship is not provided. Within the framework of the enterprise as a whole, both deficit and excess total cash flow are unbalanced.

Based on the above, it is quite obvious that such a detailed classification of cash flows for various reasons allows more targeted accounting, analysis and planning of cash flows of various types in the enterprise.

Cash flows that ensure the normal economic activity of the organization in almost all of its areas can be represented as a system of "financial blood circulation" ( see: fig. one).

Based on this scheme, the high importance of effectively organized cash flows of organizations is quite obvious, and, therefore, the issue of their management becomes one of the priorities in the analysis and financial management of the enterprise. Even for successfully operating organizations, insolvency can arise as a result of the imbalance of various types of cash flows over time. Synchronization of receipts and payments of funds is an important part of the anti-crisis management of an organization in the event of a threat of bankruptcy.

Active forms of cash flow management allow the organization to receive additional profit generated directly by its monetary assets. First of all, we are talking about the effective use of temporarily free cash balances as part of current assets, as well as accumulated investment resources in the implementation of financial investments.

A high level of synchronization of receipts and payments of funds in terms of volume and time makes it possible to reduce the organization's need for current and insurance balances of funds serving the operational process, as well as a reserve of investment resources formed in the process of real investment.

Stocks finished products

Inventory in work in progress

Stocks of raw materials and materials

Paid bills

Permanent assets

Accrued salary

CASH

Depreciation

Release of new acacias

Accounts payable

Sale of goods on credit

Pay wages

Presentation of payment obligations

Payment for materials

1.2. Methodological approaches to the analysis of cash flows

The analysis of the organization's funds involves the construction of a system of indicators that characterize the availability, composition, structure, movement, turnover and sufficiency of funds.

The system of analytical indicators is based on indicators of the level, dynamics and composition of the organization's funds. This approach is based on an analysis based on the calculation of indicators of the structure and dynamics of cash flows by type of activity of the organization for a number of years. The approach based on the analysis of cash turnover involves the calculation of the cash turnover ratio and the cash turnover period corresponding to the production and commercial cycle. The calculation of solvency indicators is based on the assumption that the liquidity of the organization's current assets affects its current solvency. In addition, it is necessary to calculate cash adequacy ratios based on cash flow analysis based on the direct or indirect method.

The main goal of cash flow management is to ensure the financial balance of the organization in the course of its activities and development by balancing the volume of receipts and expenditures of funds, as well as their synchronization in time.

The basis for this is to ensure a complete and reliable accounting of the organization's cash flows and the formation of the necessary reporting in order to provide financial managers with the necessary information to conduct a comprehensive analysis, planning and control of cash flows.

Analysis of cash flows from current, investment and financial activities, assessment of the structure of cash flows by type are considered in the works of a number of domestic analysts, such as A.D. Sheremet, V.V. Kovalev and others. The most detailed concept of cash flow analysis is presented by economists L.V. Dontsova and N.A. Nikiforova, L.T. Gilyarovskaya and N.S. Plaskova. In the works of these authors, the main problems of cash flow analysis are formed and ways to solve them are highlighted.

Based on the table, we can conclude that the most complete methodology for analyzing cash flows is presented in the textbook by T.G. Gilyarovskaya.

table 2

Approaches to the analysis of cash flows in the works of domestic economists

Analysis Method
	Kovalev V.V., Sheremet A.D.	Efimova O.V.	Gilyarovskaya L.T.	Dontsova L.V., Nikiforova N.A.	Bondarchuk N.V.
1. Indicators of the level, dynamics and composition of cash
2. Assessment of solvency and liquidity indicators
3. Estimation of cash flows based on direct and indirect methods
4. Coefficient method of analysis
4.1. Net Cash Flow Adequacy Ratio
4.2. Cash flow efficiency ratio
4.3. Net cash flow margin
4.4. Positive Cash Flow Profit Ratio
4.5. Return on cash balance
4.6. Cash flow liquidity ratio
5. Cash flow indicators based on turnover

One of the problems of cash flow analysis is determining the amount of cash inflows sufficient for the financial well-being of the organization. It is expedient to carry out the analysis of the sufficiency of the volume of funds by the direct method. A necessary condition for financial stability according to this method is such a ratio of inflows and outflows of funds in the framework of current activities, which provides an increase in financial resources sufficient for investment.

One of the most important criteria for assessing the financial condition of an organization is its solvency. In theory and practice of application financial analysis distinguish between long-term and current solvency. Long-term solvency is understood as "the ability of the organization to pay for its obligations in the long term".

"The ability of an organization to pay for its short-term obligations is commonly called current solvency".

In other words, an organization is considered solvent when it is able to meet its short-term obligations using current assets. Fixed assets, unless they are acquired for the purpose of further resale, in most cases are not considered as sources of repayment of the organization's current liabilities due, firstly, to their special functional role in the production process and, secondly, the difficulty of their urgent sale ( if we are not talking about such fixed assets as passenger vehicles, office design items and some other objects that are highly attractive to the consumer).

The current solvency of the organization is directly affected by the liquidity of its current assets (the ability to convert them into cash or use them to reduce liabilities). Assessment of the composition and quality of current assets in terms of their liquidity is called liquidity analysis.

The organization's current assets can be liquid to a greater or lesser extent, since they include heterogeneous funds, among which there are both easy to sell and hard to sell to pay off external debt.

In this regard, it would be appropriate to conditionally divide the items of assets and liabilities into four groups depending on the degree of their liquidity (table). As part of liabilities, it is possible to distinguish obligations of varying degrees of urgency ( table 3).

Table 3

Classification of assets by degree of liquidity and liabilities of the organization depending on the degree of urgency

	Group of balance sheet items	Designation		Calculation procedure
Organization assets
	Most liquid assets		Amounts for all items of cash; Short-term financial investments	p.260 + p.250
	Marketable Assets		Accounts receivable for which payment is expected within 12 months after reporting; Other accounts receivable	page 240 + page 270
	Slow-moving assets		VAT on purchased assets; Accounts receivable for which payments are expected more than 12 months after the reporting date	lines 210 + 220 + 230
	Hard-to-sell assets		All balance sheet items of section I "Non-current assets"
Organization obligations
	Most urgent obligations		Accounts payable; Debts to participants (founders) for the payment of income; Other current liabilities; Loans not repaid on time	lines 620 +630 +660
	Short-term liabilities		Short-term loans and credits; Other loans maturing within 12 months after the reporting date
	Long-term liabilities		Long-term loans and borrowings, items in section IV of the balance sheet
	Permanent liabilities		Articles of section III of the balance sheet "Capital and reserves"; Separate articles of section V of the balance sheet “Short-term liabilities not included in the previous groups; Revenue of the future periods; Reserves for future expenses	Lines 490 + 640 + 650

Therefore, one of the ways to assess liquidity at the preliminary analysis stage is to compare certain elements of an asset with elements of a liability. For this purpose, the obligations of the organization are grouped according to their degree of urgency, and its assets - according to the degree of liquidity (realizability).

The assignment of certain items of working capital to these groups depends on the specific conditions: the organization's accounts receivable include very heterogeneous items, and one part of it may fall into the second group, the other into the third; with different duration of the production cycle, work in progress can be assigned either to the second or third group, etc.

An organization is considered liquid if its current assets exceed its current liabilities. The real degree of liquidity of the organization and its solvency can be determined on the basis of the analysis of the liquidity of the balance sheet.

At the first stage of the analysis, the table 3 groups of assets and liabilities are compared in absolute terms. The balance is considered liquid under the following ratios of groups of assets and liabilities: A1 ≥ P1, A2 ≥ P2, A3 ≥ P3, A4 ≤ P4.

Moreover, if the first three inequalities are met: A1 ≥ P1, A2 ≥ P2, A3 ≥ P3, i.e. current assets exceed external liabilities, then the last inequality is also fulfilled: A4 ≤ P4, which confirms that the organization has its own working capital.

In the process of analysis, the most urgent obligations (which are due in the current month) are compared with the value of assets with the maximum liquidity (cash, marketable securities). At the same time, part of the urgent liabilities that remain uncovered should be balanced by less liquid assets - accounts receivable of organizations with a stable financial position, easily marketable inventories and other current assets, which, in relation to a particular organization, can be recognized as highly liquid. Other short-term liabilities are related to such assets as other debtors, finished goods, inventories.

The solvency or insolvency of the organization with the possible initiation of bankruptcy proceedings largely depends on how the correspondence between these groups of assets and liabilities is ensured.

An insolvent organization can be recognized even if there is a sufficient excess of asset items over its liabilities, if the capital is invested in hard-to-sell asset items. And although the delay in payments may be a temporary phenomenon, it can serve as the beginning of the termination of all payments in the event of a stable discrepancy between the terms of turnover of the obligations of the organization and its property.

The analysis of solvency based on the assessment of liquidity is carried out not only by absolute, but also by relative indicators. From the point of view of the analysis of funds attributable to group A1 - the most liquid assets - the absolute liquidity ratio (term ratio) is important.

The absolute liquidity ratio (term ratio) is calculated as the ratio of cash and marketable foam papers (A1) to short-term debt (P1+P2).

The term ratio shows how much of the current debt can be repaid on the balance sheet date or other specific date.

In practice, it is difficult to define marketable securities. As a general rule, the possibility of including an asset in the calculation of the indicator under consideration depends on the fulfillment of such conditions as the minimum maturity and the absence of the risk of losing the principal amount.

At the same time, in the practice of analysis, this group of assets is often mistakenly equated to the balance sheet item “Short-term financial investments”. It is known that this article includes short-term investments in associated companies, own shares repurchased from shareholders, investments in securities of other organizations, government securities, loans provided, as well as financial investments of the enterprise in joint activities.

The incorrectness of the inclusion of such items as investments in shares of other organizations and, moreover, loans provided to other organizations in the structure of fast-moving assets is explained, in particular, by the fact that the value of shares is subject to changes, investments in dependent companies, as a rule, characterize the investment goals of management, rather than the purpose of managing current solvency, finally, the possibility of returning a previously granted loan at the time of the need for this seems unlikely.

Note that the values ​​of the specified coefficient, which are in the range of 0.2-0.3, are approximately considered normal (permissible).

In addition to the absolute liquidity ratio, the system of relative indicators includes intermediate liquidity ratios, the overall coverage ratio and the overall solvency ratio, which are formed by increasing the numerator and denominator of the liquidity ratio for the assets and liabilities of the respective groups according to the principle of decreasing liquidity and maturity of liabilities.

Liquidity indicators make it possible to assess the degree of solvency of the enterprise at the current moment, but at the same time they do not make it possible to establish the risk of payments in the near future due to the excess of debt on upcoming payments over the amounts of funds that the enterprise will have by this date. Therefore, the analysis of solvency should be supplemented by drawing up a payment calendar and an estimated balance.

The payment calendar is compiled, as a rule, for a month, with a breakdown of the amount of receipts and payments by five days. In the analytical table, on the one hand, upcoming receipts are shown:

Revenue from product sales;

Payment of bills;

Repayment of receivables, etc.

Upcoming receipts are shown with distribution in calendar sequence by five days.

On the other side of the table, the upcoming payments of the enterprise are reflected in the same time interval:

• Interest on a loan;

  Urgent obligations to suppliers;

  wages of workers and employees, etc.

For each five-day period, the sum of the excess of receipts over payments on an accrual basis or the lack of funds to pay for obligations, indicating the insolvency of the enterprise during this period, is separately reflected. It should be noted that the payment calendar does not give an accurate assessment of the company's solvency on the reporting dates, since the receipt of funds may deviate from the estimated dates. However, its compilation facilitates the development of measures to ensure the solvency of the enterprise for intermediate dates.

To assess solvency, a balance sheet is also drawn up. Drawing up the settlement balance is carried out according to the same principle as the payment calendar, but it covers a longer period of time, taking into account the state of receivables and payables on the balance sheet date. It compares receivables and payables in terms of general taxes, economic substance and due dates. If accounts receivable exceeds accounts payable, then this indicates that it not only absorbed all the funds taken from creditors, but also diverted a part of its own funds from economic turnover, equal to the active balance of the settlement balance. Conversely, the excess of accounts payable over accounts receivable indicates that part of the funds received from creditors in excess of the amount provided to debtors is involved in economic turnover.

The grouping of debtors and creditors by payment terms from three months to six, from six to one year allows you to find out in what calendar periods the enterprise has a threat of non-payments and, therefore, it is necessary to make appropriate management decisions to prevent them.

Thus, with the help of the settlement balance, the analysis of solvency is carried out in the future, and the payment calendar allows you to solve problems and operational analysis.

2. Analysis of cash flows on the example of LLC PKF "Strateg-E"

2.1. Analysis of cash in the enterprise

LLC PKF "Strateg-E" was organized in October 1995. At the moment, the enterprise has the status of a limited liability company, which, in accordance with legislative acts and constituent acts, owns separate property, which is accounted for on its independent balance sheet. The founder of the company at the time of its creation is its general director.

The full official name of the company is Limited Liability Company Production and Commercial Company "Strateg-E".

Many documents indicate the abbreviated name of the company, approved by the charter - LLC PKF "Strateg-E".

In accordance with the charter, its main activity of LLC PKF "Strateg-E" is to make a profit by meeting the needs of enterprises, organizations, as well as citizens in various goods and services, developing an industrial infrastructure that is adequate to the conditions market economy.

The priority direction of the company's activity is: installation and maintenance of security, fire-fighting equipment, video surveillance systems, construction and installation works in new construction, expansion, reconstruction and technical re-equipment, trading activities.

To assess the structure and dynamics of funds by type of activity, we will compose table 4.

The analysis of the structure and dynamics of cash funds of LLC PKF "Strateg-E" by type of activity for 2 years indicates that with minimal cash balances at the beginning and end of the periods, the volumes of receipts and expenditures in the analyzed period are very significant. The volume of cash receipts in 2006 increased compared to 2005 by 16,098 thousand rubles. and amounted to 36819 thousand rubles. The growth rate was 177.69%.

Table 4

Indicators of the structure and dynamics of funds of LLC PKF "Strateg-E" by type of activity for 2005 and 2006

Indicator				Growth rate of the amount of cash, %	Specific weight, %
			Absolute deviation (+, -)				Deviation (+, -)
1. Cash balance at the beginning of the year
2. Receipt of funds, total
including by type of activity
current
Investment
Financial
3. Spending money, total
including by type of activity
current
Investment
Financial
4. Cash balance at the end of the year

100% of cash inflows in both 2005 and 2006 are proceeds from current activities.

As for the directions of spending funds by type of activity, we also note the growth in spending on current activities (14,501 thousand rubles). Cash flow for current activities amounted to 21,722 thousand rubles. in 2005 at 36223 thousand rubles. in 2006

The share of spending money on current activities was 100% in both 2005 and 2006.

In the course of further analysis, we will consider the structure of cash inflow and outflow using analytical tables ( Table 5.6).

The total cash inflow of OOO PKF "Strateg-E" increased in 2006 compared to the previous year by 16,098 thousand rubles. and amounted to 36819 thousand rubles. or by 77.69%. The main direction of receipt of funds in both years was the proceeds received from buyers and customers, the absolute value of which amounted to 20,718 thousand rubles. and 32320 thousand rubles. in 2005 and 2006 respectively. Receipts from buyers increased in 2006 compared to 2005 by 56%. The share of funds received from buyers and customers decreased, amounting to 99.98% in 2005 and 87.78% in 2006. This trend is due to an increase in other income from LLC PKF "Strateg-E" by 4496 thousand rubles.

Table 5

Cash inflow structure of PKF Strateg-E LLC

for 2005 -2006

Indicators	Amount of cash, thousand rubles			Growth rate, %	Specific weight, %
			Deviation (+,-)				Deviation (+,-)
1. Funds received from buyers, customers
2. Revenue from sales of fixed assets
3. Proceeds from the sale of securities and other financial investments
4. Received dividends, interest, other income
5. Miscellaneous income
5. Total cash receipts

Analysis of the cash outflow structure of LLC PKF "Strateg-E" ( table 6) logically continues the analysis of the inflow structure.

The amount of cash outflow reached 36,223 thousand rubles by 16,254 thousand rubles. or 183.21% increased the outflow in the direction of payment for purchased goods, works, services. The following items grew at the highest rates: payment for purchased goods (growth rate 183.21%), payment of taxes (117.43%), payment of dividends (100.00%).

Table 6

Analysis of the cash outflow structure of OOO PKF "Strateg-E" for 2005-2006.

Indicators	Amount of cash, thousand rubles			Growth rate, %	Specific weight, %
			Deviation (+,-)				Deviation (+,-)
1. Payment for purchased goods, works, services, raw materials and other current assets
2. Pay
3. Calculations for taxes and fees
4. For the payment of dividends
4. For other expenses
5. Total money spent

There have been changes in the structure of cash outflow associated with an increase in the share of outflow for payment for purchased goods, works, services, while a decrease in the share of outflow for wages and other expenses.

The share of the outflow for payment for goods in 2006 amounted to 69.36%, having increased by 28.52 percentage points. compared to the previous year. On the contrary, the share of the outflow for wages decreased and amounted to 12.20% in 2006 from 22.37% in 2005.

The outflow of cash to pay for other expenses decreased by 2115 thousand rubles, and its share by 15.54 p.p. At the end of 2006, other expenses amounted to 8.68% of the cash outflow.

So, in the structure of the outflow, the outflow from the main activities of the enterprise dominates, however, in the structure of the inflow, the inflow from buyers and customers still has the largest share.

Let's determine the optimal value of the cash balance of LLC PKF "Strateg-E" at the end of 2006 using three methods.

The sources of information for the analysis will be the balance sheet for account 51 for 2006 and the balance sheet ( Annex 1).

1. Methodology of E.S. Stoyanova

At the beginning, the minimum necessary need for monetary assets is calculated for the implementation of current business activities.

The estimated volume of payment turnover for current operations is assumed to be equal to the amount of receipts and expenditures of funds for current activities in 2006 according to the balance sheet:

PR yes = 33 million rubles.

The turnover of monetary assets in 2006 is 92.44 turnovers.

YES min \u003d 33,000,000 / 92.44 \u003d 356988 rubles.

2. Baumol model

The minimum balance of monetary assets is assumed to be zero.

We expect the average amount of expenses for servicing one operation with short-term financial investments to be equal to 15 thousand rubles. (investment costs).

The total expenditure of monetary assets in the coming period is assumed to be equal to the expenditure in the current year, i.e. according to the balance sheet 37790333 thousand rubles. The interest rate on short-term financial investments in the period under review is assumed to be equal to the average yield on trust management in 2006 (18% per annum).

YES max=
=79362 rub.

The average balance of monetary assets is planned as half of their optimal (maximum) balance and will be 79362/2= 39681.19 rubles.

3. Miller-Ohr model

The minimum balance of monetary assets is assumed to be 500 thousand rubles. (minimum actual balance in 2006 according to accounting data).

To calculate the average cash balance, we will use the company's accounting data on actual balances at the end of each month in 2006.

The calculation of the average value of the cash balance and the monthly deviation from the average is presented in the table ( table 7).

Table 7

Estimated data for determining the optimal balance of monetary assets according to the Miller-Or model

	Actual balances at the end of the month, rub.	Deviation from the average, rub.
average value

The sum of the maximum deviation of monetary assets from the average amounted to -535,154.52 rubles.

YES opt=
= 12471 rubles.

The maximum balance of monetary assets in accordance with this model is taken as a threefold amount of YES wholesale, i.e. 12471x3 = 37413 thousand rubles Exceeding this balance determines the need to transform excess monetary assets into short-term financial investments.

Thus, the calculation of the value of the optimal balance of monetary assets by three methods gives a significant spread of results:

Stoyanova's technique - 356988 rubles.

Baumol method - 39681.19 rubles.

Miller-Ora method - 37413 rub.

Average value: (356988 + 39681.19 + 37413) / 3 = 144694 rubles.

It should be noted that the actual cash balances of LLC PKF "Strateg-E" at the end of 2006 are higher than the calculated value by (605016.72-144694) = 460322.72 rubles. This amount can be considered as a reserve for optimizing the cash balance and releasing current assets.

2.2. Cash flow management using the cash flow analysis of PKF "Strateg-E" LLC based on direct and indirect methods

The amount of free cash of the enterprise should be limited from below - to the amount sufficient to pay off the obligations of the enterprise, and from above - to the amount necessary for the free choice of development of the types of activities of the enterprise. With a lack of funds, there is a threat of insolvency; excess funds are associated with hidden losses associated with the depreciation of money due to the impact of inflation. Assessment of cash adequacy based on cash flow analysis can be carried out by two methods - direct and indirect.

The direct method is based on Form No. 4 “Cash Flow Statement” and involves summarizing the results of cash flow operations. This form of reporting reveals in detail the movement of funds on the accounts of the enterprise and allows you to quickly determine the sufficiency of funds for payment of current liabilities accounts, as well as the possibility of investment activities.

The analysis is based on the cash flow balance:

Dn + Pd-Rd \u003d Dk

where Дн, Дк - cash balances at the beginning and end of the period, respectively; Pd, Rd, - income and expenditure of funds for the reporting period, respectively.

The receipt and expenditure of funds is deciphered in two directions: by operations of movement (vertical section) and by type of activity (horizontal section).

The purpose of the analysis is to identify more "inflow" and "outflow" activities and the causes of surplus and shortage of cash. The reasons for the change in cash balances are established on the basis of compiling the balance of cash flows separately for each type of activity, and then by aggregation.

The method of cash flow analysis by the direct method is quite simple. It is necessary to supplement the form of accounting financial statements No. 4 “Statement of cash flows” with calculations relative indicators structures of "inflow" and "outflow" by types of activity.

The direct method of analyzing cash flows by type of activity makes it possible to assess: in what volume, from what sources the received funds were received and what are the directions for their use; whether the organization's own funds are sufficient for investment activities or whether it is necessary to raise additional funds as part of financial activities; whether the organization is able to pay off its current obligations.

The implementation of the direct method is associated with its inherent features: Reflection of the movement of funds on operations gives rise to the problem of the occurrence of a double account, for example, due to such operations as the receipt of funds from the cash desk of an enterprise to a bank account and vice versa. This method is limited, since it does not reveal the relationship between the obtained financial result (net profit) and the change in the amount of cash. However, in the activities of any enterprise there are incomes and expenses that regulate the amount of profit, but do not affect the amount of cash.

Therefore, the financial statements may reflect the receipt of net profit while reducing cash and vice versa.

These shortcomings can be overcome using an indirect method based on the conversion of net income to cash. The calculation is made in such a way that the items of expenses that are not related to the outflow of funds, and the items of income that are not related to the inflow, do not affect the amount of profit remaining at the disposal of the enterprise. Thus, depreciation causes an increase in the cost of sales, and therefore reduces profit. However, this decrease in profits is not related to cash outflows. This means that when calculating the real amount of cash, the amount of accrued depreciation must be added to net profit.

The method of the indirect method is based on the balance sheet and requires the use of analytical accounting data. The cash flow balance used in the indirect method is as follows:

Dn+Pch+(-)Sk+Pd-Rd = Dk

where Pch - net profit of the reporting period; Sk - adjustment items for the amount of net profit.

Adjustment items are related to: discrepancy between the time of reflection of income and expenses in accounting with inflows and outflows of funds for these operations; business transactions that do not directly affect the calculation of the net profit indicator, but cause cash flows; operations that have a direct impact on the calculation of the profit indicator, but do not cause cash flows.

As a result of the above adjustments to the financial result, its value is converted into the value of the change in the cash balance for the analyzed period:

Pkor. = ΔDS

where is Pkor. - adjusted value of net profit for the period; ΔDS - change in cash balances for the period.

To obtain the adjusted amount of net profit for the period, it is necessary to add the amount of adjustments to the amount of profit:

Pkor. \u003d Pch + ΣSk,

where Pch - the amount of net profit of the organization for the period; ΣSk - the amount of adjustments.

It is advisable to carry out these adjustments by type of activity of the organization (current, investment and financial):

ΣSk= Σ SHORt.d. + ΣSk.i.d. + Σ Sk.f.d.,

where ΣSk.d. - the amount of adjustments for current activities; ΣSk.i.d. - the amount of adjustments for investment activities; ΣSq.f.d. - the amount of adjustments for financial activities.

The list of necessary adjustments by type of activity will be presented in the form of a table ( table 8).

Table 8

List of net profit adjustments

Kind of activity	Adjustments
	The amount of depreciation of fixed assets and intangible assets Growth (decrease) in the amount of inventories of tangible current assets, receivables and payables
Investment	Excess (decrease) in the amount of receipt of fixed assets and intangible assets over the amount of their disposal Excess (decrease) in the amount of sale of long-term financial instruments of the investment portfolio over the amount of their acquisition The amount of dividends (interest) received on long-term financial investments The amount of interest paid in connection with investment activities The amount of growth in unfinished capital construction
Financial	Excess (decrease) in the amount of additionally attracted long-term and short-term loans (credits) over the amount of their repayment The amount of funds received in the order of target financing Excess (reduction) of the amount of dividends (interest) received in connection with the implementation of financial activities over the amount paid

Thus, the change in the level of cash over the period occurs as a result of generating the net cash flow of the organization, i.e. the difference between positive and negative cash flows for three types of activities - current, investment and financial:

DSK.p. = DSN.p. + ΔDS,

where ДСк.п. - the amount of funds of the organization at the end of the period, ДСн.п. - the amount of cash of the organization at the beginning of the period, ΔDS - change in the volume of cash of the organization for the period.

There are two inextricably linked reasons for the change in the amount of cash of the organization for the period: the change in net cash flows in all three types of activities of the organization (current, investment, financial) and the change in financial results for all three types of activities of the organization.

The change in net cash flows within the three types of activities of the organization is determined by the formula:

ΔDS \u003d NPV \u003d NPVt.d. + NPI.d. + NDPf.d.,

where NPV - the sum of the total net cash flow of the organization for the period, NPVt.d. - the amount of the net cash flow of the organization for current activities, NPI.d. - the amount of net cash flow of the organization for investment activities, NDPf.d. - the amount of net cash flow of the organization for financial activities.

The change in financial results for all types of activities of the organization is determined by the formula:

Δ DS \u003d Rkor \u003d P + Δ Sk \u003d P + ΔSkt.d. + ΔSki.d. + ΔSk.d.

From the calculations performed using the presented methodology, it becomes clear which business transactions and the financial results generated by them for which type of activity - current, investment or financial - had the greatest impact on the amount of the organization's net cash flow for the period. Thus, the indirect method allows you to find out whether the profit received is enough to service current activities, as well as to establish the reasons for the discrepancy between the amount of profit received and the availability of funds.

Methods for optimizing the scarce cash flow depend on the nature of this scarcity - short-term or long-term. The balance of the deficit cash flow in the short term is achieved by developing organizational measures to accelerate the attraction of funds and slow down their payments.

The information base for the analysis of cash flows of LLC PKF "Strateg-E" by the direct method is the "Cash Flow Statement" (Form No. 4). For cash flow analysis direct method an analytical table was compiled ( table 9).

The analysis of cash flow by the direct method reveals in detail the cash flow in the accounts, which allows us to draw conclusions regarding the sufficiency of funds to pay construction obligations on the accounts, as well as to carry out investment activities.

In 2005, there was an outflow of cash from the current activities of LLC PKF "Strateg-E", which amounted to -1010 thousand rubles. in absolute terms. Consequently, the funds received from the main activities of LLC PKF "Strateg-E" are not enough for its implementation.

Table 9

Analysis of the cash adequacy of PKF "Strateg-E" LLC based on the analysis of cash flows by the direct method

Indicators	Amount, thousand rubles
1. Current activities
1.1. Cash inflow:
Funds received from buyers, customers
Other supply
1.2. Cash outflow
payment for purchased goods, works, services
salary
payment of dividends, interest
tax and duty calculations
other expenses
1.3. TOTAL: inflow (+), outflow (-) of cash
2. Investment activity
2.1. Cash inflow:
proceeds from the sale of fixed assets and other property
proceeds from the sale of securities and financial investments
received dividends
interest received
Proceeds from the repayment of loans granted to other organizations
2.2. Cash outflow:
acquisition of subsidiaries
acquisition of fixed assets, profitable investments in tangible assets and intangible assets
acquisition of securities and financial investments
paid dividends, interest, credits and loans granted
loans granted to other organizations
2.3. TOTAL: inflow (+), outflow (-)
3. Financial activities
3.1. Cash inflow
Proceeds from the issue of shares or other equity securities
Proceeds from loans and credits granted to other organizations
3.2. Cash outflow
Repayment of loans and credits (without interest)
Repayment of financial lease obligations
3.3. TOTAL: churn (-)
Total: change in cash

In 2006 LLC PKF "Strateg-E" experienced an inflow of cash from its core business, which amounted to 596 thousand rubles.

To calculate cash adequacy based on indirect way corrective procedures should be carried out affecting the vast majority of balance sheets. Calculations should be made on the basis of the expected general rule: in order to achieve a correspondence between the amount of net profit, it is necessary to increase net profit by the amount of capital increment (own and borrowed sources of funds) and reduce by the amount of increment of assets (non-current and current). Moreover, both positive and negative increments are taken into account.

The calculation of adjustments related to the increment according to the balance sheet data (form No. 1) of LLC PKF "Strateg-E" as of 01.01.2007 is presented in the table ( table 10).

Table 10

Analysis of cash adequacy of LLC PKF "Strateg-E" based on the analysis of cash flows by the indirect method

	Cash Flow Statement Ratio	Sum (thousand roubles.)
	Net profit before tax
	Amount adjustments:
	depreciation
	exchange losses (exchange difference)
	investment income
	interest expense
	Operating profit before change in turnover capital (line 1 + line 2 + line 3 - line 4 + page 5)
	Change in receivables from buyers and other receivables
	Stock change
	Change in accounts payable to suppliers
	Cash from operating activities (page 6 - page 7 + page 8 + page 9)
	Interest paid
	Income tax paid
	Net cash from operating activities (p. 10 - p. 11 - p. 12)

Based on the results of the analysis carried out by direct and indirect methods, the management of the organization can adjust its financial policy in relations with debtors and creditors, make decisions on the formation of the necessary production reserves, taking into account the available financial capabilities and the level of financial resources.

On the whole, LLC PKF "Strateg-E" for 2006 has a positive net cash flow in the amount of 596 thousand rubles, the net cash flow sufficiency ratio has a positive value. Thus, the net cash flow is sufficient to finance emerging needs, which has a positive effect on the solvency of the enterprise.

Lack of cash flow in OOO PKF "Strateg-E", which may have negative consequences, which are manifested in: a decrease in liquidity and solvency; growth of overdue accounts payable to suppliers of raw materials and materials; increase in the share of overdue debts on received financial loans; delays in payment of wages; an increase in the duration of the financial cycle, and ultimately in a decrease in the profitability of the use of equity and assets of the organization.

The results of calculations are used to optimize cash flows, which is the process of choosing the best forms of their organization, taking into account the conditions and characteristics of economic activity.

In conclusion of this section, we calculate the main indicators of cash turnover - the turnover ratio and the duration of the turnover in days ( table 11).

Due to the fact that the company has practically no cash balances on the account and on hand, the results of the turnover analysis are as follows: the turnover ratio at the end of 2006 was 92.44 turnovers. Thus, cash turns into revenue 92.44 times. This indicator has decreased in comparison with 2005 by 54.83 turnovers. The turnover period in days in 2006 was 6 days. This indicator decreased by 6 days compared to 2005. The decrease in this indicator is due to a decrease in the value of the average cash by 203 thousand rubles. and an increase in sales revenue by 9199 thousand rubles.

Table 11

Calculation of cash turnover indicators of LLC PKF "Strateg-E" for 2005-2006

Indicators	№ form, line number	Meaning		Absolute change
		2005 year	2006
1. Sales revenue, thousand rubles.		19180 (Appendix 4)	(appendix 2)
2. Average cash balances	(1, 260 gr.3+1, 260 gr.4)/2
3. Cash turnover ratio	2, 010 / (1, 260 gr.3+1, 260 gr.4)/2
4. Turnover period in days	((1, 260 gr. 3 + 1, 260 gr. 4) / 2) x 360 / 2.010

As a result, PKF "Strateg-E" LLC released funds: Release of funds from circulation = 28379 / 360 x (4-10) = 472.98 thousand rubles.

Thus, as a result of a more efficient use of funds in LLC PKF "Strateg-E", there was a release of funds from turnover in the amount of 472.98 thousand rubles.

2.4. The main directions for improving the management of cash flow

Summarizing the above, we can draw the following conclusions. At the analyzed enterprise, for the purposes of managing cash flows and maintaining liquidity, it is necessary to carry out a monthly cash flow forecast, the implementation of which should be analyzed by economists. The current cash flow planning of LLC PKF "Strateg-E" allows you to optimize their balances and determine the need for additional raising of funds or the possibility of early repayment of loans due to excess liquidity.

In conclusion, we note that for the purposes of effective cash management, it is necessary to ensure an increase in the current liquidity ratio and the total coverage ratio. The low value of these indicators is due to the significant amount of receivables and payables, a significant amount of reserves. In order to manage the obligations of LLC PKF "Strateg-E" it is necessary: ​​to take measures to collect debts for a period of more than 45 days; to confirm the reality of receivables and payables, reconcile mutual settlements; monitor the ratio of receivables and payables; maintain a payment calendar (preferably in the form of a computer program) for the operational management of receivables and payables. A clear understanding of the status of settlements with buyers and customers, government agencies, which will allow timely calculation of overdue debts, general trends in settlement discipline and specific buyers, who are most often among unreliable payers; to expand the system of advance payments, as deferred payment leads to the fact that the organization actually receives only a part of the cost of the work performed, it is recommended to provide discounts for advance payments by LLC PKF "Strateg-E"; provide for penalties in contracts with buyers and customers for non-compliance with the terms of payment; conduct an inventory of accounts payable and take measures to repay overdue debts; develop a provision for working with accounts payable;

A 50% reduction in receivables from PKF Strateg-E LLC will ensure an increase in the total coverage ratio to the level of 0.96, or 20%.

Serious attention should be paid to the level of stocks. Let us calculate the optimal amount of stocks for materials that dominate the structure of working capital of OOO PKF “Strateg-E” based on the data of 2006. The main type of goods for this enterprise is fire detectors. Let's determine the current stock of fire detectors necessary for the normal operation of the enterprise in the period between successive deliveries:

Ztek =

where Mp is the average daily supply of materials, t; Ting - delivery interval - the time between two deliveries.

According to LLC PKF "Strateg-E", the average daily supply of fire detectors is 30 pieces, and the delivery interval from manufacturers is on average 35 days.

Ztek = (30 tons x 35 days) / 2 = 525 pcs.

The company needs a safety stock. We will calculate it, taking into account the fact that the time of their delivery is calculated on average 15 days.

Zstr \u003d Mp (Tpod) \u003d 30 x (15 days) \u003d 450 pcs.

The transport stock must take into account the time of transportation of the material to the work site. In this case, the fuel transportation time can reach an average of 2 days. The annual volume of consumption in 2006 amounted to 20,280 units. fire detectors.

Ztr =
\u003d 20 280 x 2/360 \u003d 113 pcs.

The fuel reserve rate is determined by summing up the current, insurance, and transport reserves.

Stock rate \u003d 525 + 450 + 113 \u003d 1088 pcs.

With an average purchase price of 1 pc. in 2005, 236 rubles, the standard value of the stock in value terms will be 236 x 1088 = 257 thousand rubles.

With the actual average inventory in 2006, the excess inventory of sensors amounted to 347.8 thousand rubles.

Thus, the calculation of the norm of the stock of goods revealed that the analyzed enterprise had an excess stock in 2006 worth 90.8 thousand rubles, which is a reserve for the release of working capital.

Conclusion

The implementation of all types of financial and business operations of the organization is accompanied by the movement of funds - their receipt and expenditure. The company's cash can be defined as the amounts of cash in Russian and foreign currencies belonging to it, which are in cash, on settlement, currency and other accounts in banks. To make management decisions related to cash flow, to achieve the best effect of economic activity, the management of the organization needs constant awareness of the state of cash. Therefore, the purpose of the analysis of funds is to obtain the necessary volume and parameters that give an objective, accurate and timely description of the directions of receipt and expenditure of funds, volume, composition, structure, objective and subjective, external and internal factors that have a different effect on the change in cash flows .

The analysis of the organization's funds involves the construction of a system of indicators that characterize the availability, composition, structure, movement, turnover and sufficiency of funds. The system of analytical indicators is based on indicators of the level, dynamics and composition of the organization's funds. This approach is based on an analysis based on the calculation of indicators of the structure and dynamics of cash flows by type of activity of the organization for a number of years. The approach based on the analysis of cash turnover involves the calculation of the cash turnover ratio and the cash turnover period corresponding to the production and commercial cycle. The calculation of solvency indicators is based on the assumption that the liquidity of the organization's current assets affects its current solvency. In addition, it is necessary to calculate cash adequacy ratios based on cash flow analysis based on the direct or indirect method.

The current cash flow planning of LLC PKF "Strateg-E" allows you to optimize their balances and determine the need for additional raising of funds or the possibility of early repayment of loans due to excess liquidity.

In general, the analysis of working capital management at LLC PKF "Strateg-E" allows us to formulate the following recommendations for this enterprise:

Justified reduction in the amount of accounts receivable and its share in the structure of working capital. Revision of the terms of settlements with the buyers of the enterprise; providing discounts for early payment; tougher penalties for late payments;

Control over the ratio of growth rates of receivables and payables. Prevention of excess of growth rates of accounts receivable over accounts payable;

Reduction of cash balances by an average of 460,322 rubles. to their optimal size;

Increasing the turnover of working capital by increasing the proceeds from the sale and optimizing the amount of working capital in general and individual elements;

Mobilization of the revenue growth reserve in the amount of 1340.12 thousand rubles. by accelerating the turnover of working capital of LLC PKF "Strateg-E".

List of used literature

Federal Law "On Accounting" dated November 21, 1996 No. 129-FZ (as amended)

Regulation on accounting and financial reporting in the Russian Federation, approved. Order of the Ministry of Finance of the Russian Federation of 29.07.98. No. 34n. (with changes and additions.)

Regulation on accounting "Accounting policy of the organization" (PBU 1/98). Approved by Order of the Ministry of Finance of Russia dated December 9, 1998 No. 60n (as amended by Order of the Ministry of Finance of the Russian Federation dated December 30, 1999 No. 107n)

Regulation on accounting "Accounting statements of the organization" (PBU 4/99), approved by order of the Ministry of Finance of the Russian Federation dated 06.07.99 No. 43n.

Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n "On the forms of financial statements of an organization"

Chart of accounts for financial and economic activities of organizations and instructions for its use. Approved by order of the Ministry of Finance of the Russian Federation of October 21, 2000 No. 94n.

Abryutina M.S., Grachev A.V. Analysis of the financial and economic activity of the enterprise. Educational and practical guide - 2nd ed., Corrected. - M .: "Business and service". - 2001. - 256 p.

Arkhipov V.E. Principles of effective management and marketing. - M.: INFRA-M. - 1998.

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Accounting: Textbook / A.S. Bakaeva, P.S. Bezrukikh, N.D. Vrublevsky and others / Ed. P.S. Armless. 4th ed., revised. and additional - M.: Accounting, 2002. - 719 p.

Vasilyeva L.S. Financial analysis: textbook / L.S. Vasilyeva, M.V. Petrovskaya. - M.: KNORUS. 2006. - 412 p.

Volkov O.I. Enterprise economy. Textbook. / Ed. O.I. Volkov. - M: Infra-M. - 1998.

Money, credit, banks: Textbook / Ed. O.I. Lavrushin. – 3rd ed., revised and supplementary. – M.: KNORUS. - 2004. - 576 p.

Money. Credit. Banks / Ed. Zhukova E.F. - M.: Finance and statistics. -2003.

Dolan EJ Money, banking and monetary policy. - St. Petersburg: Litera plus. - 1994.

Efimova O.V. Financial analysis. - 4th ed., revised. and additional - M .: Publishing house "Accounting". - 2002. - 528 p.

History of economic doctrines / Ed. Avtomonova V., Ananyina O., Makasheva N. - M.: INFRA-M, 2002. - 736 p.

Kamaev V.D. Textbook on the fundamentals of economic theory. - M.: VLADOS. - 2004. - 375 p.

Keynes JM Selected works - M.: Anthology of economic classics. - 1993.

Kovalev V.V. Introduction to financial management. - M.: Finance and statistics. - 2003.

Kovaleva A.M. Finance. Tutorial. / Ed. A.M. Kovaleva. - M: Finance and statistics. - 2000.

Kozlova E.P., Babchenko T.N., Galanina E.N. Accounting in organizations. - 2nd ed. revised and additional - M.: Finance and statistics. - 2002. - 752 p.

Course of Economics / Ed. Raizberga B.A. - M.: INFRA-M. - 2003.

Course of economic theory. General foundations of economic theory, microeconomics, macroeconomics, transition economy: Textbook / Ed. Sidorovich V.A. - M.: Moscow State University. M.V. Lomonosov, DIS Publishing House. - 1997. - 784 p.

Course of economic theory: Textbook - 4th supplemented and revised edition - Kirov: "ACA". - 2000. - 752 p.

Lokhanina I.M. Financial Analysis Based on Accounting Statements: Study Guide; 2nd ed., revised. and additional Yaroslavl State. un-t. city ​​- Yaroslavl. - 2000. - 103 p.

Lyubushin N.P., Leshcheva V.B., Dyakova V.G. Analysis of the financial and economic activities of the enterprise: Proc. manual for universities / Ed. prof. N.P. Lyubushina. – M.: UNITY-DANA. - 2002.

McConnell K.R., Brew S.L. Economics: Principles, problems and politics. - M.: Republic. -1993. - 400 s.

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World of money. Quick guide on monetary, credit and tax systems of the West. - M .: JSC "Razvitie". 1992. - 296 p.

Novoselov L.A. Cash settlements in entrepreneurial activity. -M.: YurInforR. - 2005.

Paly V.F. Financial Accounting: Textbook: At 2h. - M.: FBK-PRESS. - 1998.

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Blokhin K.M. Budgeting of cash flow by direct method // Auditorskie vedomosti.2006. No. 2. -S. 12-18

Bondarchuk N.V. Analysis of cash flows from the current, investment and financial activities of the organization // Auditorskie Vedomosti. - 2004 - No. 3. - S. 15-21

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Mizikovsky E.A., Druzhilovskaya T.Yu. Capital change and cash flow // Auditorskie Vedomosti. - 2005. - No. 9 - S. 26-31.

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• Introduction
• 2.1. Organizational and economic characteristics of Verona LLC
• 2.2. Express analysis financial condition OOO "Verona"
• 2.3. Bankruptcy Probability Assessment
• 2.4. Evaluation of the effectiveness of the formation and management of cash flows at the enterprise
• 3.1. Project to increase the positive cash flow of the enterprise
• 3.2. Calculation of cash flows for the proposed event
• Conclusion
• Bibliography

Introduction

The topic of the thesis is relevant, because in the modern world, money is an integral element that accompanies all business operations for the supply of goods, the provision of services. The result is monetary settlements that are carried out continuously. Therefore, the rational organization of settlements contributes to the uninterrupted renewal of the circulation of enterprise funds.

Settlements are carried out both in cash and in non-cash form, while the main share falls on the latter. The choice of a specific form of payment is due to the specifics of the business transaction, the legal status of the participants in the transaction and other factors. Organizations prefer to use a non-cash form of payment, since the existing legally established requirements for the amount of a cash transaction, and in addition, this significantly reduces the need for cash.

Effective cash management in modern conditions can bring additional income to the organization, which is due to the possibility of investing free cash in short-term financial investments. Despite the importance of the issue under consideration, many enterprises do not pay close attention to the issue of optimizing the cash balance.

The purpose of the thesis is to analyze the formation and management of the company's cash flows and develop a project for their optimization. In accordance with the stated goal, thesis the following tasks are solved:

• to study the theoretical foundations of the formation and management of enterprise cash flows;
• study the cash flow management policy;
• to study ways to optimize cash flows in enterprises;
• present the organizational and economic characteristics of the enterprise;
• to analyze the financial condition of the enterprise;
• to study the effectiveness of the formation and management of cash flows of the enterprise;
• spend economic justification directions of cash flow optimization;
• consider a project to increase the positive cash flow of the enterprise;
• calculate the proposed project.

The subject of the study is the cash flows of the enterprise.

The object of the study is Verona LLC.

The diploma work consists of: introduction, three chapters, subchapters, conclusion and bibliography.

When writing the work, the following methods were used: economic analysis, historical, abstract-logical, deduction, induction, synthesis.

The main source of information is the accounting and reporting data of the enterprise under study, regulatory, educational and methodological, scientific literature.

1.1. Economic content of cash flow and its types

When considering the features of the policy of formation and management of cash flows, two concepts are distinguished: "cash" and "cash flow".

It is customary to understand the funds that are in cash, on current accounts in the bank, including foreign currency accounts, as cash. Cash is needed to make current payments.

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

At the same time, cash flow is understood as an aggregated value that includes various types of flows. All of them are designed to serve the economic activity of the enterprise.

The economic activity of any enterprise is inextricably linked with the movement of funds. Each business transaction causes either the receipt or expenditure of funds. Cash serves almost all aspects of operating, investing and financing activities.

The continuous process of cash flow over time is a cash flow, which is figuratively compared with the "financial blood circulation" system that ensures the viability of the organization. The results of the main (operational) activity of the enterprise, the degree of its financial stability and solvency, competitive advantages necessary for current and future development depend on the completeness and timeliness of providing the process of supplying, manufacturing and marketing products with financial resources.

Currently, there is a broad classification of cash flows. The classification proposed by I.A. Blank, is reflected in Table 1.

Table 1. Classification of cash flows of the enterprise according to the main features

Signs of the classification of cash flows of an enterprise	Types of cash flows of the enterprise
1	2
1. By the scale of servicing the economic process	Cash flow for the enterprise as a whole Cash flow for individual structural divisions of the enterprise Cash flow for individual business transactions
2. By type of economic activity	Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities
3. By direction of cash flow	Positive cash flow Negative cash flow
4. According to the method of calculating the volume of cash flows	Gross cash flow Net cash flow
5. By the nature of the cash flow in relation to the enterprise	Internal cash flow External cash flow
6. By the level of cash flow sufficiency	Excess cash flow Deficient cash flow
7. By the level of balance of volumes of interrelated cash flows	Balanced cash flow Unbalanced cash flow
8. By time period	Short term cash flow Long term cash flow
9. By importance in the formation of the final results of economic activity	Priority cash flow Secondary cash flow
10. According to the method of evaluation over time	Real cash flow Future cash flow

Cash flows from core activities are associated with current operations for receipt of sales proceeds, payment of supplier invoices, receipt of short-term loans and borrowings, payment of wages, settlements with the budget.

Cash flows (outflows) in the process of investment activity, as a rule, are directed to the acquisition of fixed assets, intangible assets.

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Cash flows from financial activities - receipts and payments of funds associated with the attraction of additional equity or share capital, obtaining long-term and short-term loans and borrowings, payment of dividends and interest on deposits of owners in cash, and some other cash flows associated with the implementation of external financing of economic activity of the organization.

Taking into account the above classification, a process is organized strategic management enterprise cash flow. The cash flow management strategy is part of the overall development strategy of the enterprise, which is aimed at increasing its market value.

At the same time, the cash flow management process includes a number of interrelated stages:

• formation of cash flows;
• distribution of cash flows;
• use of cash flows.

The importance of cash flow management lies in the fact that it allows you to balance the receipts and expenditures of funds as much as possible, which ultimately affects the overall solvency of the enterprise.

Ensuring financial balance, therefore, is the main goal of the cash flow management strategy, which is achieved by solving the following tasks (Table 2).

Table 2. The system of main tasks aimed at realizing the main goal of enterprise cash flow management

the main objective cash flow management

The main tasks of strategic cash flow management

Ensuring constant financial stability and solvency of the enterprise

Formation of cash flow, which will be sufficient to conduct core business Optimal distribution of cash flow between various types activities Ensuring the liquidity and financial stability of the enterprise throughout the entire period Ensuring the solvency of the enterprise throughout the entire period Ensuring an increase in net cash flow, since it is it that is the main internal source of enterprise development Minimization of financial losses of funds in the course of the enterprise's activities

1. Formation of a sufficient amount of financial resources of the enterprise in accordance with the needs of its future economic activity. This task is implemented by determining the need for the required amount of financial resources of the enterprise for the coming period, establishing a system of sources of their formation in the envisaged volume, ensuring minimization of the cost of attracting them to the enterprise.
2. Optimization of the distribution of the formed volume of the enterprise's monetary resources by types of economic activity and areas of use. In the process of implementing this task, the necessary proportionality is ensured in the direction of the enterprise's financial resources for the development of its operating, investment and financial activities; within the framework of each type of activity, the most effective directions for the use of financial resources are selected, ensuring the achievement of the best final results of economic activity and strategic goals for the development of the enterprise as a whole.
3. Ensuring a high level of financial stability of the enterprise in the process of its development. Such financial stability of the enterprise is ensured by the formation of a rational structure of sources of raising funds, and first of all, by the ratio of the volume of their attraction from own and borrowed sources; optimization of the volume of attraction of funds in terms of the forthcoming terms of their return; the formation of a sufficient amount of financial resources attracted on a long-term basis; timely restructuring of obligations for the return of funds in the conditions of the crisis development of the enterprise.
4. Maintaining the constant solvency of the enterprise. This task is solved primarily through the effective management of the balances of cash assets and their equivalents; formation of a sufficient volume of their insurance (reserve) part; ensuring the uniformity of cash flow to the enterprise; ensuring the synchronism of the formation of incoming and outgoing cash flows; choosing the best means of payment in settlements with counterparties for business transactions.
5. Maximization of net cash flow, ensuring the specified pace of economic development of the enterprise on a self-financing basis. The implementation of this task is ensured by the formation of the cash turnover of the enterprise that generates the largest amount of profit in the course of its operating, investment and financial activities; selection of an effective depreciation policy of the enterprise; timely disposal of unused assets; reinvestment of temporarily free cash.
6. Ensuring the minimization of losses in the value of funds in the process of their economic use at the enterprise. Monetary assets and their equivalents lose their value under the influence of time factors, inflation, risk, etc. Therefore, in the process of organizing cash flow at an enterprise, one should avoid the formation of excessive cash reserves (if this is not caused by the needs of economic practice), diversify the directions and forms of use of monetary resources, avoid certain types financial risks or provide them with insurance.

The tasks presented in Table. 2 are interconnected. In this regard, when forming a cash flow management policy, it is necessary to optimize them among themselves, which will make it possible to get as close as possible to the goal of this direction of financial policy.

Cash flow management is an important area financial work at the enterprise. At the same time, this area of ​​financial work includes studying the dynamics of the production and financial cycle, assessing the change in net cash flow, the ratio of positive and negative cash flow by periods. In addition, an estimate of the optimal cash balance is required.

Thus, having studied the essence of the cash flow and the need to manage it, we will consider the features of cash flow management in the enterprise.

1.2. Cash flow policy

Effective cash flow management requires the formation of a special policy for this management as part of the overall financial strategy of the enterprise. Such a policy is developed according to the following main stages

The cash flow management policy is part of the overall economic strategy of the enterprise, which ensures the formation of priority goals for the organization of its cash flow and the choice of the most effective ways to achieve them.

The cash flow management policy can be represented as a master plan of action in the field of organization of the cash flow of an enterprise, which determines the priorities of the directions and types of these flows, the nature of the formation and use of cash resources, ensuring the envisaged general economic development enterprises.

Summarizing the above, we can state that the cash flow management policy is a systemic concept that links the development of the operating, investment and financial activities of an enterprise.

The process of developing a cash flow management policy is the most important component of the overall system of strategic choice of an enterprise, the main elements of which are the mission, general strategic goals development, a system of functional strategies in the context of certain types of activities, methods of formation and distribution of financial resources.

At the same time, the cash flow management policy is in a certain subordination with other elements of the strategic choice of the enterprise.

The cash flow management policy is part of the overall financial strategy of the enterprise. At the same time, the cash flow management policy should be based on a comprehensive analysis of the cash flow.

STAGES OF CASH FLOW ANALYSIS:

• Analysis of the dynamics of changes in the cash balance
• Analysis of the composition and structure of positive cash flow
• Analysis of the composition and structure of negative cash flow
• Cash flow balance analysis
• Analysis of the formation of net cash flow
• Analysis of the uniformity of the formation of cash flows
• Analysis of the synchronism of the formation of cash flows
• Cash flow liquidity analysis
• Cash flow efficiency analysis

Ensuring complete and reliable accounting of the company's cash flows and the formation of the necessary reporting.

Let's consider approaches to drawing up a cash flow statement.

The indirect method is aimed at obtaining data characterizing the net cash flow of an enterprise in reporting period. The source of information for the development of financial statements of the enterprise by this method are the balance sheet and income statement. The calculation of the net cash flow of the enterprise by the indirect method is carried out according to the types of economic activity of the enterprise as a whole.

The results of calculating the amount of net cash flow for operating, investment and financial activities allow us to determine its total size for the enterprise in the reporting period. This indicator is considered according to the following formula (1):

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NPV p = CHDP o + NPV and + NDP f (1)

NPV p- the total amount of net cash flow of the enterprise in the period under review;

CHDP o- the amount of net cash flow of the enterprise for operating activities;

NPV and- the amount of net cash flow of the enterprise for investment activities;

NDP f- the amount of net cash flow of the enterprise for financial activities;

Using the indirect method allows you to assess what potential the company has, since it is the net cash flow that acts as the main internal source of financing for the company. In addition, this method allows for a factor analysis of the influence of individual factors on the change in net cash flow.

In practice, the direct method is most often used, which reflects data not only on net cash flow, but also on gross cash flow. At the same time, calculations are carried out for three types of activities: current, investment and financial. For each direction, an outflow and inflow of funds are formed, after which a balance is displayed, which is a net cash flow.

The differences between the two methods under consideration (direct and indirect) apply only to the main (current activity).

Optimization of cash flows is the process of choosing the best forms of their organization in the enterprise, taking into account the conditions and characteristics of the economic activity of the enterprise.

The basis for optimizing the cash flows of an enterprise is to ensure a balance between the volumes of their positive and negative types.

To this end, an assessment of the uniformity of cash flow formation is carried out on an ongoing basis.

To assess the liquidity of the cash flow, it is customary to use the cash flow liquidity ratio.

In order for the cash flow to be liquid, the value of the indicator should be above one. This will contribute to the growth of the cash balance, which, as a result, is the reason for the positive net cash flow.

1.3. Ways to optimize cash flows in enterprises

One of the most important and difficult stages of enterprise cash flow management is their optimization.

Optimization of cash flows is the process of choosing the best forms of their organization in the enterprise, taking into account the conditions and characteristics of the implementation of its economic activities.

The analysis process ends with the optimization of cash flows by choosing the best forms of their organization in the enterprise, taking into account external and internal factors in order to achieve their balance, synchronization and growth of net cash flow.

First of all, it is necessary to achieve a balance between the volumes of positive and negative cash flows, since both the deficit and the excess of cash resources negatively affect the results of economic activity.

With a deficit cash flow, the liquidity and solvency of the enterprise decrease, the growth of overdue accounts payable to suppliers of raw materials and materials, the increase in the share of overdue debts on financial loans received, delays in payment of wages (with a corresponding decrease in the level of staff productivity), an increase in the duration of the financial cycle, and in ultimately - in reducing the profitability of the use of equity capital and assets of the enterprise.

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The methods of balancing the scarce cash flow are aimed at ensuring the growth of the positive volume and reducing the volume of the negative ones.

The growth of positive cash flow in the prospective period can be achieved through the following activities:

• attraction of strategic investors in order to increase the volume of own capital;
• additional issue of shares;
• attracting long-term financial loans;
• sale of a part (or the entire volume) of financial investment instruments;
• sale (or lease) of unused types of fixed assets.

Reducing the volume of negative cash flow in the prospective period can be achieved through the following measures:

• reducing the volume and composition of real investment programs;
• refusal of financial investment;
• reducing the company's fixed costs.

With excess cash flow, there is a loss of the real value of temporarily free cash, as a result of inflation, capital turnover slows down due to idle cash, part of the potential income is lost due to lost profits from the profitable placement of cash in the operating or investment process.

Equalization of cash flows is aimed at smoothing their volumes in the context of individual intervals of the period under consideration.

This optimization method eliminates, to a certain extent, seasonal and cyclical differences in the formation of cash flows (both positive and negative), while simultaneously optimizing the average cash balances and increasing the level of liquidity.

The results of this method of optimizing cash flows over time are evaluated using the standard deviation or coefficient of variation, which should decrease during the optimization process.

In order to balance the deficit cash flow in short term develop measures to accelerate the attraction of funds and slow down their payments.

Measures of a short-term nature to balance the deficit cash flow.

Measures to accelerate the attraction of funds

• Ensuring partial or full prepayment for products that are in high demand in the market
• Reducing the terms of granting commodity credit to buyers
• Increasing the amount of price discounts when selling products for cash
• Acceleration of collection of overdue receivables
• Use of modern forms of reinvestment of receivables (accounting for bills, factoring, forfeiting)

Measures to slow down cash payments

• An increase in agreement with suppliers with suppliers of the terms for granting a commodity loan to an enterprise
• Using a float (the period of passage of issued payment documents before paying them) to slow down the collection of own payment documents
• Acquisition of long-term assets under leasing
• Restructuring of received loans by converting short-term into long-term

Since these measures, by increasing the level of absolute solvency of the enterprise in the short term, can create problems of scarcity of cash flows in the future, measures should be developed in parallel to balance the scarce cash flow in the long term.

Long - term measures to balance the deficit cash flow .

Measures to reduce negative cash flow

• Reducing the amount of fixed costs of the enterprise
• Reducing the volume of real investment
• Reducing the volume of financial investments
• Transfer of social and cultural facilities to municipal ownership

Measures to increase positive cash flow

• Additional issue of shares
• Additional bond issue
• Attraction of long-term loans
• Attracting strategic investors
• Sale of part of long-term financial investments
• Sale or lease of unused types of fixed assets

The results of optimizing the company's cash flows are reflected in the system of plans for the formation and use of funds in the coming period.

Synchronization of cash flows should be aimed at eliminating seasonal and cyclical differences in the formation of both positive and negative cash flows, as well as at optimizing average cash balances.

The final stage of optimization is to provide conditions for maximizing the net cash flow of the enterprise, the growth of which exceeds the level of self-financing of the enterprise, reducing dependence on external sources of financing.

An increase in the amount of the enterprise's net cash flow can be achieved through the implementation of the following main measures:

• reducing the amount of fixed costs;
• reducing the level of variable costs;
• implementation of an effective tax policy that ensures a reduction in the level of total tax payments;
• effective pricing policy, providing an increase in the level of profitability of operating activities;
• using the method of accelerated depreciation of fixed assets used by the enterprise;
• reduction of the amortization period of intangible assets used by the enterprise;
• sale of unused types of fixed assets and intangible assets;
• strengthening claims work in order to fully and timely collect penalties.

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Ministry of Education and Science of the Kyrgyz Republic

Institute of Economics and Management at KSU named after I. Arabaeva

COURSE WORK

On the topic: Cash flow management on the example of Golden Sun OJSC

Performed:

Malabekova A.Ch.

Bishkek 2014

Introduction

Theoretical foundations of cash flow management

Organization of cash flow management system

General characteristics of the Golden Sun OJSC enterprise

Analysis and features of cash flow management on the example of Golden Sun OJSC

Conclusion

Bibliography

Introduction

Cash flow management has always played an important role in the activities of enterprises. In the conditions of market relations, its value not only increases, but also qualitatively changes.

By managing cash flows, the company achieves a normal level of stability and liquidity, ensures cost-effective operation, and maximizes profits.

Within the framework of enterprise management, day-to-day cash management is often viewed as a routine and unimportant activity. But the results of these activities affect the well-being of the organization as a whole. And although sound and prudent cash management can only marginally affect the well-being of an organization, poor and ill-conceived management can lead to very sad results.

In a competitive and unstable external environment, the company's financial managers need clear, timely information about the company's business activities. Effective cash management allows you to achieve an acceptable sensitivity of the enterprise to external influences in a fairly short time. Thus, cash management provides operational management of the company's finances and is responsible for maintaining the existence of the company in the short term.

In a situation of economic stability, financial managers emphasize the paramount importance of growth and profitability, not liquidity. Even comparatively weak managers can thrive on the back of a general economic recovery.

In the face of uncertainty, modern Financial Manager cannot be primarily concerned with growth and profitability, but must constantly consider the liquidity position. Today, when we have to deal with high interest rates, the uncertainty of future government policies and the instability of cash flows, first of all, we have to think about survival and maintaining liquidity.

However, in any situation, cash flow management is the main tool for maximizing profits.

The choice of this topic is due to the fact that at present, unfortunately, the study of the process of providing enterprises with financial resources is limited and is not used. A complex approach, the influence of the time factor is not taken into account, the conduction marketing research, which greatly limits the ability to effectively manage the financial activities of enterprises.

The relevance of this topic lies primarily in the fact that reliable cash flow management is the core in the development and successful operation of an enterprise. This mechanism is the basis that mobilizes and distributes financial resources enterprises.

The purpose of this work is to analyze cash flow management in the management of the activities of Golden Sun OJSC, and develop recommendations for improving its efficiency.

To achieve this goal, it is necessary to solve the following tasks:

consider the concept of cash flow management;

evaluate the main methods of managing financial and economic activities;

conduct an analysis of the financial and economic activities of Golden Sun OJSC

analyze the management of financial resources of Golden Sun OJSC

The object of the research work is JSC Golden Sun.

The subject of the study is the management of enterprise cash flows.

management cash financial solvency

1. Theoretical foundations of the financial mechanism of enterprise management

In modern economic literature, there are a number of approaches to the definition and essence of the financial condition and its relationship with the financial stability and investment attractiveness of the enterprise. Therefore, it is necessary to dwell on the positions of leading economists in this area. For example, according to A.D. Sheremet “The financial condition of an enterprise is characterized by the placement and use of funds (assets) and the nature of the sources of their formation (equity and liabilities, i.e. liabilities). This information is contained in the balance sheet and other forms of financial statements.

A position almost identical to that of O.V. Efimov, although it does not define the essence of financial condition and financial stability

Based on the above positions and definitions, we can give the following definition of financial stability and financial condition.

The financial condition of the organization is the result (at an arbitrarily chosen point in time) of the system of relations that arise in the process of circulation of the organization's funds, as well as the sources of these funds and are associated with cash payments.

The financial stability of an enterprise is characterized by its financial independence, as well as the degree of equity and bank loans to its non-current assets, inventories and costs, cash and receivables within the norm.

The financial condition of the enterprise can be assessed from the point of view of the short and long term. In the first case, the criteria for assessing the financial condition are the liquidity and solvency of the enterprise, i.e. the ability to timely and in full make settlements on short-term obligations.

The tasks of analyzing the financial condition are presented in Figure 1.1.

Rice. 1.1. The tasks of analyzing the financial condition of an enterprise

The purpose of the analysis of the analysis of the financial condition of organizations is to find and measure reserves for increasing production efficiency, increasing competitiveness and financial stability.

Under the subject of analysis of the financial condition of the enterprise understand:

economic processes of enterprises, socio-economic efficiency and final financial results of their activities, formed under the influence of objective and subjective factors, reflected through the system of economic information;

causal relationships of economic phenomena and processes, i.e. the causes of changes, the knowledge of which makes it possible to determine the essence of economic phenomena and, on this basis, to give a correct assessment and justification of any managerial decision.

Results in any area of ​​business depend on the availability and efficiency of the use of financial resources. Therefore, taking care of finances is the starting point and the end result of the activity of any business entity. In a market economy, these issues are of paramount importance.

Enterprise finance is a system of cash flows.

Based on this, the financial work at the enterprise, first of all, is aimed at creating financial resources for development, in order to ensure the growth of profitability, investment attractiveness, i.e., improving the financial condition of the enterprise.

The finances of the enterprise provide the circulation of fixed and working capital and the relationship with the state budget, tax authorities, banks, insurance companies and other institutions of the financial and credit system.

The essence of finance is most fully manifested in their functions (Fig. 1.2). Enterprise finance performs two main functions:

1. distribution;
2. control.

Both functions closely interact with each other.

Rice. 1.2 - Functions of finance

The financial resources of an enterprise are a set of own funds and receipts from outside (attracted and borrowed funds) intended to fulfill the financial obligations of the enterprise, finance current costs and costs associated with the expansion of production.

It is necessary to highlight such a concept as capital - part of the financial resources invested in production and generating income at the end of the turnover. According to their origin, the financial resources of an enterprise are divided into their own (internal) and attracted on different terms (external).

Financial resources are used by the enterprise in the process of production and investment activities. They are in constant motion and remain in cash only in the form of cash balances on the current account in the bank and in the cash desk of the enterprise.

The enterprise, taking care of its financial stability and a stable place in the market economy, distributes its financial resources by type of activity and in time. The deepening of these processes leads to the complication of financial work, the use of special financial instruments in practice.

The organization of the finances of an enterprise is based on certain principles (table 1.1): economic independence, self-financing, liability, interest in the results of activities, the formation of financial reserves.

Table 1.1. Principles of organizing finance

Principles Meaning 1. Principles of economic independence An enterprise independently, regardless of the organizational and legal form of management, determines its economic activity and directs investments of funds in order to make a profit.2. The principle of self-financing Means full payback of costs for the production and sale of products, investment in the development of production at the expense of own funds and, if necessary, bank and commercial loans.3. The principle of liability means the presence of a certain system of responsibility for the conduct and results of economic activity.4. The principle of interest in the results of activity The need for this principle is determined by the main goal of entrepreneurial activity - making a profit.5. The principle of ensuring financial reserves Means the need to form financial reserves to ensure business activities that involve risk due to possible fluctuations in market conditions. Financial reserves can be formed by enterprises of all organizational and legal forms of ownership from net profit, after paying taxes and other obligatory payments to the budget

At the same time, it is advisable to keep the funds allocated to the financial reserve in liquid form so that they generate income and, if necessary, can be easily converted into cash capital.

Enterprise cash flow management is a system for managing the finances of an enterprise in order to achieve maximum profit.

In accordance with international standard 32 Financial Instruments: Disclosure and Presentation, a financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or capital instrument (i.e., equity) for another.

One of the main goals of financial management in the process of managing monetary assets is to ensure the constant solvency of the enterprise. Therefore, in the practice of financial management, the management of monetary assets is often identified with the management of solvency (or liquidity management).

Cash flow risk is that the amount of future cash flows associated with a monetary financial instrument will fluctuate. In the case of a floating rate debt instrument, such fluctuations may result in a change in the effective interest rate on the financial instrument, usually with a change in its fair value. Transactions with financial instruments are carried out on the basis of market or fair value.

Market value is the amount that can be obtained from the sale, or must be paid when acquiring financial instrument in an active market.

fair value is the amount for which an asset could be exchanged or a liability settled in an arm's length transaction under comparable terms and conditions.

Rice. 1.3. The composition of the main elements of the monetary assets of the enterprise, ensuring its solvency

Cash flow management of an enterprise includes the collection of information and its analysis, the implementation of financial planning and forecasting, the quality of which directly affects the effectiveness of cash flow management, the financial stability of the enterprise, and, consequently, its competitiveness, the formation of financial resources.

Professional cash flow management inevitably requires an in-depth analysis that allows the most accurate assessment of the uncertainty of the situation using modern quantitative research methods.

In this regard, the priority and role of financial analysis significantly increases, the main content of which is a comprehensive systematic study of the financial condition of an enterprise and the factors of its formation in order to assess the degree of financial risks and predict the level of return on capital.

2. Organization of the management system of the financial mechanism of the enterprise

Cash flows act as a tool for influencing production - trading process business entity. This impact is carried out through cash flow management. The financial mechanism of an enterprise is a system for managing the financial relations of an enterprise through financial leverage using financial methods.

Financial leverage is a set financial indicators through which the control system can influence the economic activity of the enterprise. They include: profit, income, financial sanctions, price, dividends, interest, taxes, etc.

financial methods are financial accounting, financial analysis, financial planning, financial regulation, financial control. The financial method can be defined as a way of influencing financial relations on the economic process. Financial methods operate in two directions:

through the management of the movement of financial resources;

in the line of market commercial relations related to the comparison of costs and results, with material incentives for responsibility for the efficient use of funds.

Financial management is a part of the financial mechanism of any enterprise. The impact of finance on the business process is expressed by the diagram shown in fig. 2.1..

Rice. 2.1. Scheme of the impact of finance on the business process

This scheme allows you to visualize the entire hierarchy of the process of the impact of finance on the business process. It shows the role of financial management and the financial market in this impact.

The enterprise as a system consists of two subsystems: managing and managed. For the implementation of management functions, the management subsystem must have the necessary resources (material, labor, financial) that ensure the implementation of management actions. The control subsystem performs the functions of production control. It includes a control apparatus with all employees and technical means: communication devices, alarms, counting equipment, etc. In each economic link, management is solved differently, i.e. the number of stages and the number of governing bodies at each stage is determined by the goals, objectives and functions of management.

Each organization, association, branch and national economy as a whole is controlled only by a specific body. This body is endowed with full rights and property independence required for management. A minimum of management instances is needed to quickly resolve issues. This requires a clear delineation of the responsibility of individual levels of management and their functions.

In turn, the control subsystem consists of two parts: the control of production and the control of the processes of further improvement, both of production and of the control subsystem itself.

The following elements are distinguished in the control subsystem:

planning (determines the development prospects and the future state of the production system);

regulatory (aimed at maintaining and improving the established mode of operation of the enterprise);

marketing;

accounting and control (obtaining information about the state of the control subsystem).

The need for these elements in the system is based on the essence of management and the need to perform the corresponding functions.

The controlled subsystem carries out various production processes. It includes sites as part of certain groups of jobs, workshops as part of production and auxiliary sites, enterprises as part of the main and auxiliary workshops, industries as part of enterprises, etc.

Their functioning is interconnected and interdependent. The managing and managed subsystems form the management system of the economy.

Each of the subsystems is self-governing, constantly under the influence of higher-level systems. They are characterized by the presence of a structure, the level of organization, the ability to perceive the impact from the external environment and, in turn, influence it.

On fig. 1.5 presents the structure and process of functioning of the system of financial management of the enterprise. Like any management system, financial management consists of two subsystems: managing, managed.

The object of management in financial management is financial resources in the form of cash turnover of an economic entity, which is a constant flow of cash receipts and payments. The subject of management is the financial service, which develops and implements the strategy and tactics of financial management in order to increase the liquidity and solvency of the enterprise through the receipt and effective use of profits.

The specific structure of the financial service largely depends on the organizational and legal form of the enterprise, its size, activities and tasks set by the company's management.

The financial directorate is created by order of the supreme management body of an economic entity and, as a rule, includes a financial department and an accounting department. As part of the financial directorate, one can increasingly see the currency department, the department of economic analysis, etc. The directorate as a whole and each of its divisions operates on the basis of the regulation on the financial directorate, approved by the management of the enterprise.

Rice. 2.2 Structure and process of functioning of the system of financial management of the enterprise

Economic activity includes three stages: supply, production and marketing. Management functions include: collection of information for management and its analysis, as well as decision making.

In turn, decision making includes:

forecasting (planning),

regulation (operational management),

control (audit).

The final financial result of the enterprise's activities is the profit (loss) of the reporting period (balance sheet profit or loss), the result of financial activities; balance of income and expenses from other non-operating transactions.

The formalized calculation of balance sheet profit is presented below:

R b = P R ± R f + p ext (1.1),

where P b - balance sheet profit or loss;

R R - result (profit or loss) from the sale of products (works, services);

R f - result from financial activity;

R ext - balance of income and expenses from other non-operating transactions.

The result from the sale of products (works, services) is determined by the following calculation:

R R = N R - S etc - S lane (1.2),

where N R - proceeds from the sale of products (works, services) in selling prices, excluding VAT, excises and other indirect taxes and fees;

etc - cost of (manufacturing) products sold; lane - expenses of the period (commercial and administrative).

The business model in a market economy contains a number of iterations or calculations:

determination of gross profit from the sale of products (works, services). Profit from the sale of products is defined as the difference between the proceeds from the sale of products in selling prices of enterprises (without value added tax, excises and other indirect taxes and fees) and costs included in the production cost. Gross profit is a performance indicator production units enterprises;

determination of profit from the sale of products. It is determined by subtracting from gross profit (gross profit) current recurring expenses (sales and general business expenses) attributable to products sold. Gross profit is an indicator of the economic efficiency of the main activity of the enterprise, i.e. production and sale of products;

determination of the result from financial operations and profit from financial and economic activities (main and financial activities). The result (profit or loss) from financial activities is determined by the arithmetic addition of interest receivable and payable, income from participation in other organizations, other operating income and expenses, including from other sales, i.e. sale of fixed assets, intangible assets and other tangible assets. Profit from the main and financial activities is the sum of the results from the sale of products and from financial activities;

determination of the profit of the reporting period, i.e. total balance sheet profit. Such profit is the algebraic sum of profits from the main and financial activities, and the result of other non-operating income and expenses. Balance sheet profit is an indicator of the economic efficiency of all economic activity;

net profit is determined by subtracting taxes from the balance sheet profit. For tax purposes, the balance sheet profit is adjusted in accordance with tax standards, i.e. regulation on the composition of costs included in the cost of production for tax purposes;

determination of retained earnings included in the balance sheet. Such profit is determined by subtracting the funds used in the reporting period from net profit.

The model of formation and distribution of the financial results of the enterprise determines the order and direction of the analysis of profit indicators.

3. General characteristics, analysis of financial activities

Golden Sun specializes in the processing of agricultural products and is one of the major suppliers canned products on the Kyrgyz market.

The products of the Golden Sun company are canned vegetables from selected, fresh vegetables prepared according to traditional, time-tested, and new recipes.

The product range includes canned vegetables, tomato paste, canned soups and natural juices. The company has organized a clear control of the quality of raw materials, compliance with technological processes of production and storage regimes. All products manufactured by JSC "Golden Sun" are certified and manufactured in compliance with the requirements of sanitary standards and medical recommendations.

The team of "Golden Sun" are specialists with extensive experience who are able to preserve and convey to the consumer such a delicate product as fruits and vegetables!

Organizational and legal form - Open Joint Stock Company.

Chairman of the Board - Tezekbaev D.Sh.

Production of the company:

4. Analysis and features of cash flow management on the example of Golden Sun OJSC

In today's conditions, the most urgent problem in the implementation of economic activity is the correct adoption of management decisions, which are formed as a result of financial analysis.

The methodology of financial analysis consists of three interrelated blocks:

) analysis of the financial results of the enterprise;

) analysis of the financial condition;

) analysis of the effectiveness of financial and economic activities.

The main source of information for the analysis of the financial condition is the financial (accounting) statements: the balance sheet of the enterprise (form No. 1 annual accounts). The source of data for the analysis of financial results is the profit and loss statement (form No. 2). Based on these data, the structure of indicators in absolute and relative terms is considered.

The financial and economic characteristics of the enterprise are carried out on the basis of the accounting (financial) statements of Golden Sun OJSC for 2 reporting years: “Balance Sheet” (Form No. 1) and “Profit and Loss Statement” (Form No. 2).

Analysis of the financial and economic condition of the enterprise begins with the study of the balance sheet, its structure and composition (Appendix)

Let's analyze the profits and losses of the organization (table 4.1.)

Table 4.1. Profit and loss statement (extracts) of JSC Golden Sun

Line code20122013Absolute. changeGrowth rate%010Gross profit8141.917593.69451.7216.09020Other operating income and expenses030Operating expenses3260.55135.71875.2157.5040Operating profit/loss (010+020-030)4881.412457.9755.520 non-operating expenses1067,66537,45469,8612,3060Profit/loss before taxes (040+050)5949,018995,313046,3319,3070Income tax expense080Profit/loss from ordinary activities (060-070)5949,018995,313046 ,3319.3090Extraordinary items less income tax100Net profit/loss for the reporting period (080+090)5949.018995.313046.3319.3

Thus, the following positive features have been identified in the work of the enterprise:

Gross profit more than doubled by 2013, which may indicate an increase in demand for the company's services.

The growth rate of operating expenses is lower than the rate of revenue growth, which may indicate competent policy in cost management

By 2013, the net profit of the enterprise increased by more than 3 times.

Thus, the non-current assets of the enterprise are formed at the expense of capital, which is formed at the enterprise OJSC Golden Sun only at the expense of its own funds. Also, at the expense of capital, the company generates cash.

Short-term loans of the enterprise and retained earnings goes to the formation of stocks.

Table 4.2. Balance sheet

Line code20122013Absolute. Changes Growth% Assets010 Coordinate assets22024,724406,32381,724406,32381,7152,047950,515798,07950,515798,5149,1030 tongue receivables 109,2-109,2009239.2-109,2009kratkaya receivables 050Un Assets (010 + 020 + 030 + 040) 54176,772356,8176,7723335 equity060Current liabilities548,21517,7969,5276,8070Long-term liabilities080Total liabilities548,21517,7969,5276,8090Equity53628,570839,117210,6132100Total liabilities and soc. capital54176.772356.818180.1133.5

Equity capital for the period from 2012 to 2013 increased by almost one and a half times. There was also an increase in the company's assets.

We will assess the liquidity of the balance sheet

The task of analyzing the liquidity of the balance sheet arises in connection with the need to assess the creditworthiness of the enterprise, that is, its ability to pay off all its obligations in a timely and complete manner.

The liquidity of the balance sheet is defined as the degree to which the organization's liabilities are covered by its assets, the period of transformation of which into money corresponds to the maturity of the liabilities.

For analysis, the assets and liabilities of the balance sheet are grouped according to the following criteria: by the degree of decrease in liquidity (asset) and by the degree of urgency of payment (repayment) (liability).

Depending on the degree of liquidity, i.e. the speed of conversion into cash, the assets of the enterprise can be divided into 4 groups: the most liquid assets, quickly realizable assets, slowly realizable assets, hard to sell assets.

We group the assets and liabilities of the enterprise according to the degree of liquidity in table 4.3

Table 4.3. Grouping of assets according to the degree of liquidity of OJSC Golden Sun

Group Assets 20122013 som.% som.%A 1The most liquid 3579.06.67892.710.9A 2Quickly sold 109,20,200 A 3Slowly sold 18445.73416513.622.8 A 4Difficult to sell 32152.059.247950.566.3 BALANCE 54176.710072356.8100

The most liquid and fast-selling assets have a small share in the structure of the company's balance sheet, this is an unfavorable trend, indicating the need to find out whether they are enough to cover urgent obligations.

The share of the most liquid assets has changed somewhat over the period. In 2012, the share of the most liquid assets was 6.6%, by 2012 the share increased to 10.9%. The share of fast-moving assets by 2013 was 0.

The share of slow-moving assets decreased over the period under review: in the period from 2011 to 2013, there was a decrease by 11.2%. The share of hard-to-sell assets also increased by 7.1% by 2013

Table 4.4. Grouping of liabilities (criterion - urgency of fulfilling obligations) OJSC Golden Sun

Group-pa Liabilities20122013 som.% som.% P 1The most urgent 548.211517.72 P 2Short-term 0000 P 3Long-term 0000 P 4Stable (permanent) 53628.59970839.198 BALANCE 54176.710072356.8100

The share of the most urgent liabilities by 2013 increased by 1%.

The share of short-term liabilities in 2013 was 0.

Long-term liabilities during the period under review amounted to 0% in the structure of liabilities of Golden Sun JSC.

The share of permanent liabilities decreased by 1% by 2013

Table 4.5. The company has the following relationships

A1>P1A2>P2A3>P3A4<П420123579,0>548,2109,2>018445,7>032152,0<53628,520137892,7>1517,70<016513,6>072356,8<70839,1

The balance is considered liquid, because all conditions are met.

The company lacks highly liquid funds, as a result of which the company needs to convert inventories into cash and cash equivalents.

In order to improve the financial management system at the Golden Sun OJSC, the following system of measures can be recommended.

Effective financial management is the most important problem of the enterprise in modern conditions.

The company is recommended to introduce a financial manager into the organizational structure. In a market economy, the financial manager becomes one of the key figures in the enterprise. He will be responsible for raising financial problems, analyzing the feasibility of using one or another way to solve them, and sometimes for making the final decision on choosing the most appropriate course of action. However, if the problem posed is of significant importance to the enterprise, he may be an adviser to senior management personnel. The financial manager will be the responsible executor of the decision made, he will also carry out operational financial activities. Its main content will be to control cash flows. The financial manager should be part of the top management staff of the company, as he will take part in solving all the most important issues.

In the most general form, the activities of a financial manager can be structured as follows:

-general financial analysis and planning;

-providing the enterprise with financial resources (management of sources of funds);

allocation of financial resources (investment policy and asset management).

The graphical diagram of the organizational structure of Golden Sun OJSC is shown in Figure 5.1

Figure 5.1 - The proposed scheme of the financial management system of the enterprise

Price differentiation represents the formation of several price options depending on the market segment. Examples of price differentiation can be: markups for quality; urgency and special service.

The completeness of the mission implementation allows to receive additional income due to obtaining synergistic effects in the formation of a portfolio of orders.

The budgeting process is an integral part of financial planning, that is, the process of determining future actions for the formation and use of financial resources. Financial plans provide a relationship between income and expenses based on the relationship between the development indicators of an enterprise and its financial resources.

The budget is a quantitative embodiment of the plan, characterizing the income and expenses for a certain period, and the capital that must be attracted to achieve the goals set by the plan.

Budget data plans future financial transactions, i.e. the budget is created for the prompt implementation of the proposed actions. This determines the role of the budget as the basis for monitoring and evaluating the effectiveness of the enterprise.

Budgets come in many types and forms; individual budgets that characterize intermediate operations (purchase of inventories, production budget, etc.) can carry information only on expenses or only on income (sales budget), and enlarged budgets (budget income statement, cash budget) show both expenses and income of the organization.

The main requirements for the information contained in the budget are as follows: sufficiency, non-redundancy, clarity and accessibility. Each company chooses specific forms of budgeting independently.

The budget period, as a rule, covers the short-term aspect of planning (year, quarter). However, budgets associated with capital investments are drawn up for a longer period - five, ten years.

The role and place of budgeting in the overall system of financial planning are quite fully characterized by the functions of the budget:

1. planning operations to achieve the goals of the organization. Budgeting is based on clarifying and detailing strategic plans for the period specified by the budget;
2. communication and coordination of various departments of the enterprise and activities, implying the coordination of the interests of individual employees and groups as a whole in the enterprise in order to achieve the intended goals. The budget contributes to identifying weak links in the organizational structure, solving problems of communication and distribution of responsibility between performers;
3. orientation of managers of all ranks to achieve the tasks assigned to their centers of responsibility;
4. control of current activities, ensuring planned discipline.

As a basis for assessing the implementation of the plan by responsibility centers, it is better to use budget data, and not reporting data from previous years. This is because current operations may differ from past ones by changes in technology, staffing, product mix or new general economic conditions;

1. improving the professionalism of managers. Budgeting contributes to a detailed study of the activities of their departments and the relationship between responsibility centers in the enterprise.

Budgeting involves several steps:

1. preparation of forecast and sales budget;
2. determining the expected volume of services;
3. calculation of costs associated with the provision of services;
4. calculation and analysis of cash flows;
5. preparation of planned financial reports.

Despite the fact that the budget does not have standardized forms determined by government bodies, the structure of the general budget with the allocation of operational and financial budgets is most widely used.

The introduction of the principles of budget planning at the level of departments allows:

a) get more accurate indicators of the size and structure of costs than is possible with the current system of accounting and financial reporting, and, consequently, a more accurate target value of the profit margin, which is very important for tax planning (including payments to off-budget funds);

b) provide structural units, within the framework of the approval of monthly budgets, greater independence, which in turn allows the units to quickly develop and offer various options for solving the problems they face;

v) evaluate the performance indicators of the functioning of individual units or the efficiency of the production of any particular product.

Financial and analytical program Express analysis

Program Express analysis is designed to analyze the financial condition of the enterprise according to official financial statements. The calculation tables and formalized conclusions obtained with the help of the program make it possible to assess the financial and economic condition of the enterprise, quickly and adequately stabilize it, model various options for improving the economic condition of the enterprise, and also prepare reports for the tax authorities and regulatory authorities of the Kyrgyz Republic. The financial analysis methods on which the program is based are used by the State Insolvency (Bankruptcy) Service.

The program allows you to:

assessment of the balance sheet structure to establish the state of solvency according to three criteria: current liquidity ratio, equity ratio and solvency recovery ratio;

analysis of the structure of liabilities and assets of the balance sheet by comparing the values ​​of individual balance sheet items to its currency;

analysis of the results of the financial activity of the enterprise on the basis of forms No. 2, No. 4 and No. 5 with an assessment of the strategy for using own funds;

calculation of indicators of the financial stability of the enterprise to determine the degree of protection of the interests of investors and creditors;

analysis of the enterprise's ability to repay loans on the basis of solvency ratios, absolute liquidity, etc.;

analysis of the business activity of the enterprise in terms of inventory turnover ratios, equity, as well as the overall turnover ratio;

analysis of the efficiency of the enterprise, calculation of profitability indicators for the use of own funds, production assets, financial investments, determination of profitability of sales and long-term borrowed capital;

determination of economic levers and financial management strategies.

Functionality of the program:

operational analysis at any time;

the ability to store and reuse the original results;

verification of the original forms for compliance with interrelated indicators;

wide opportunities for exporting and importing data from various accounting programs;

protection against unauthorized access;

reliability of information processing and storage;

automatic formation of conclusions in all areas of economic analysis, comparison of the data obtained with the normative and recommended values ​​adopted in the Kyrgyz Republic, as well as recommendations for improving the financial condition;

database search, sampling according to various criteria;

updating templates of standard reporting forms;

printing information in the form of tables, graphs and diagrams.

The program is well documented and easy to learn.

FinAnalisBoss program

The FinAnalisBoss program allows you to simply and easily carry out a financial analysis of an enterprise and obtain graphs. Launch, open the Excel file with the balance sheet, income statement and click the GoAnalis button. In 15-30 minutes you will receive a ready-made text report with tables and graphs in Word. Price - 150 USD After payment and installation of the electronic key, the FinAnalisBoss program functions in the full version, without it - in the demo version.

The program for analyzing the financial condition of an enterprise - FinAnalisBoss is designed for use in 32-bit Windows operating systems, in conjunction with MS Word and MS Excel programs, and allows you to receive text and graphics based on the data of the balance sheet and income statement entered in MS Excel analysis of the financial condition of the enterprise in MS Word.

MS Word displays:

Tables:

indicators of financial stability;

values ​​of coefficients calculated on the basis of financial indicators;

balance sheet liquidity assessment;

balance sheet;

comparative analytical balance of assets;

comparative analytical balance of liabilities;

gains and losses report;

analysis of the company's profit;

analysis of the accounting profit of the enterprise;

calculation of profitability indicators;

calculation of profitability indicators (at the beginning and end of the period);

factor analysis of profitability;

calculation of absolute liquidity ratio (K1);

calculation of the intermediate coverage ratio (K2);

calculation of the current liquidity ratio (K3);

calculation of the ratio of own and borrowed funds (K4);

calculation of profitability (K5);

determination of the borrower's creditworthiness class.

Analysis of indicators:

solvency of the enterprise;

financial stability (availability of own working capital, the total value of the main sources of formation of reserves and costs, surplus (shortage) of own working capital and the main sources of formation of reserves and costs);

coefficients calculated according to financial indicators (autonomy, ratio of borrowed and own funds, provision with own funds, maneuverability, financing);

liquidity of the balance (the most liquid assets, fast-selling assets, slow-moving assets, hard-to-sell assets, as well as payment surplus or shortage on them, coefficients - absolute liquidity, coverage (current liquidity).

Comparative analytical balance of assets - the structure of assets (at the beginning and end of the analyzed period, ranked items of the balance sheet asset depending on their increase or decrease, depending on the increase or decrease in their share in the asset structure, depending on the value at the beginning of the period, depending on the contribution to the increase or decrease in assets).

Comparative analytical balance of liabilities - the structure of liabilities (at the beginning and end of the analyzed period, ranked articles of the balance sheet liability depending on their increase or decrease, depending on the increase or decrease in their share in the structure of liabilities, depending on the value at the beginning of the period, depending on the contribution to the increase or decrease in liabilities).

Analysis of the company's profit according to the income statement (absolute deviations of indicators (+ or -), share for the previous year, share for the reporting year, deviations (+ or -)%).

Analysis of accounting profit (its dynamics and structure - in total and by its individual structural components).

Analysis of profitability indicators (sold products, production, assets, non-current assets, current assets, equity, investments, sales).

Analysis of profitability at the beginning and end of the analyzed period (sold products, production, assets, non-current assets, current assets, equity, investments, sales).

Assessment of the creditworthiness of an enterprise (approximate methodology of the NBKR).

Main conclusions.

Graphs.

The report in MSWord is about 60 pages (text - 14 font - 1 spacing, tables - 12 font - 1 spacing, graphics).

FinAnalisBoss was tested with Word98, Excel98, WindowsMe.

The program is written in the Python1.5 language and uses its libraries in its work, as well as the Tcl8.0 graphic libraries that are included in the package.

The developer of the program is the Analytical Laboratory of the Internet Economy.

The financial analysis of the enterprise is carried out on the basis of financial statements. In our case, these are F1-Balance Sheet and F2-Profit and Loss Statement.

The marketing system allows you to determine the needs of the market, therefore, to provide only the types of work and services that are in demand. Demand analysis allows for a flexible pricing policy and price differentiation.

Based on the results of the analysis, measures were proposed aimed at improving the efficiency of the financial management process at the analyzed enterprise OJSC Golden Sun.

The manager must comprehensively solve the problem of the enterprise's survival, using all possible reserves, both external and internal. Presumably, the use of all acceptable reserves to reduce costs would be a very useful measure aimed at compensating for loss of profit from price reduction. Reducing costs is necessary in order to survive in a competitive market and guarantee the company's financial success. Management would like to recommend taking all reasonable actions to reduce not only variable, but also semi-fixed costs.

Conclusion

In the course of the research, the following provisions and conclusions were obtained.

The financial management system plays a dominant role in the economic relations of economic entities, since, on the one hand, it is a single measure of the results of their activities, on the other hand, it performs a systematizing role in material production, being a source of entrepreneurial activity, a way of economic relations of economic entities and the result of activity.

In a market economy, the freedom to manipulate financial resources is largely unlimited, which increases the importance of effective management of the financial activities of an enterprise.

In a market economy, the management of the financial system is one of the main priority tasks facing any enterprise, regardless of the form of organization, scope and scale of its activities.

Financial management is an integral part of the enterprise management system, which in turn consists of two subsystems:

1)control object (managed subsystem)

2)subject of control (control subsystem)

In the second, analytical part, an analysis was made of the formation and implementation of the system at the Golden Sun OJSC enterprise. The beginning of the analysis was an assessment of the financial condition of the enterprise in question. The activities of the organization are considered over the three periods under study, from 2012 to 2013.

The financial analysis of Golden Sun OJSC revealed the following.

Current assets occupy the largest share in the structure of assets, their structure increased by 1.462% over the period.

Inventories have the largest share in the structure of current assets. This is not very good for the enterprise, it must get rid of surpluses and by 2013 the share of reserves is reduced by 11.755%.

In the structure of liabilities, the largest share is occupied by borrowed capital, its share over the period decreased by 11.554%. This is a positive trend, because if in 2011 we can talk about the low autonomy of the enterprise, then by 2013 the enterprise became more independent from external sources.

The absence of long-term loans may indicate a lack of investment in production

Revenue increased by more than 2 times by 2013, which may indicate an increase in demand for products and services of Golden Sun OJSC.

The intensity of cost growth is lower than the intensity of revenue growth, which may indicate a competent policy in the field of cost management

The net profit of the enterprise by 2013 increased by almost 2.5 times.

The company is experiencing an acute shortage of liquidity. To solve this problem, the company needs to work with debtors to pay off debts, convert inventories into cash and equivalents

During the period under review, the financial condition of the enterprise is in crisis due to the large amount of reserves that cannot be covered by its own sources and working capital. As noted above, the company needs to get rid of excess inventory.

The company has a low probability of bankruptcy, while diagnosing good long-term financial prospects

Unfavorable is the increase in both the increase in the operating and financial cycles. An increase in the financial cycle is about increasing the time during which resources are diverted from circulation.

The company needs to shorten the financial cycle, i.е. shorten the operating cycle and slow down the turnover period of accounts payable.

Thus, the following significant problems of the enterprise were identified:

High stock levels

High level of accounts receivable.

To solve the existing problems, the company proposes the following measures

As part of the inventory management of DordoiEnergy LLC, it is recommended:

In order to improve the financial management system at the Golden Sun OJSC enterprise, we can recommend the following system of measures, which is based on the results of factor model calculation.

The priority measures include:

-raising the level of organization of production and management;

-increase in volumes, quality and structure;

reduction of production costs and cost of services.

The company is recommended to introduce a financial manager into the organizational structure. In a market economy, the financial manager becomes one of the key figures in the enterprise. He will be responsible for raising financial problems, analyzing the feasibility of using one or another way to solve them, and sometimes for making the final decision on choosing the most appropriate course of action.

In this paper, one of the most relevant topics today, "cash flow management", was studied. In the course of this work, the financial and economic activities of Golden Sun OJSC were analyzed. This analysis helped to identify the problems that exist in the enterprise, and also pushed to study the process of managing cash flows.

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Faculty of Economics

COURSE WORK

discipline: "Analysis of the financial and economic activities of enterprises"

Analysis of cash flows according to the statement of cash flows of the enterprise (on the example of OJSC Kumertau Aviation Production Enterprise)

annotation

This paper outlines the theoretical aspects of the formation of cash flows; the characteristic of the open joint-stock company "Kumertau aviation production enterprise" is given; analyzed the formation of cash flow and suggested ways to increase it at JSC "KumAPP".

The work was printed on 37 pages using 33 sources, contains 11 tables, 1 figure.

Introduction .................. 4

1 Theoretical aspects of the formation of cash flows .................................... 6

1.1 The concept of cash flow in the enterprise............................................... 6

1.2 Factors shaping cash flows.................................................................... 9

1.3 Cash flow management methods....................................................10

2 Analysis of the cash flows of the enterprise (on the example of JSC "KumAPP")......13

2.1 Organizational and economic characteristics of the enterprise .................... 13

2.2 Financial analysis of economic activity............................... 16

2.3 Analysis of the formation of cash flow ............................................... ...........24

3 Problems of formation of cash flow in JSC "KumAPP" and ways to improve them..........29

3.1 Problems in the formation of the cash flow of the enterprise .................................... 29

3.2 Ways to increase cash flow in OJSC KumAPP .............................................. 30

Conclusion............. 31

List of references .......................................34

Introduction

The relevance of the topic is determined by the fact that scientific approaches to the formation of cash flows of an enterprise make it possible to ensure financial stability and solvency both in the current and future periods. Therefore, the cash flows of any enterprise, regardless of the form of ownership, are a key object of financial management.

The purpose of the course work is to study the process of generating cash flows according to the cash flow statement on the example of a manufacturing enterprise and gaining practical skills in calculating the main indicators that characterize the movement of financial resources.

Within the framework of the goal set, the following tasks should be solved in the work:

Theoretical aspects of the formation of cash flows are studied;

The order of formation of cash flows in JSC "KumAPP" is characterized;

Ways to increase cash flows in JSC "KumAPP" are proposed.

The object of the course work is a manufacturing enterprise

Open Joint Stock Company "Kumertau Aviation Production Enterprise", which produces aircraft, carries out its maintenance and repair.

The subject of the course work is the cash flows of KumAPP OJSC, the factors that influence them and possible ways to increase cash flows.

The paper used the financial documentation and reporting of JSC "KumAPP" for the period 2009-2011.

Theoretical questions are studied based on the textbooks of the authors V.G. Artemenko, G.I. Andreeva, S.V. Bolshakova, E.V. Dobrenkova, A.M. Dolgorukov, V.S. Efremeov, L. Kolpina and others. For the study, materials from periodicals were used, such as the journals "Economist's Handbook", "Finance".

1 Theoretical aspects of the formation of cash flows

1.1 The concept of cash flow in the enterprise

Cash flow is the cash received by the enterprise from all types of activities and spent on ensuring further activities.

The inflow of funds is carried out at the expense of proceeds from the sale of products (goods, works, services), proceeds from the sale of property, an increase in the authorized capital through an additional issue of shares, received loans and borrowings, funds from the issuance of corporate bonds, targeted financing, etc.

The outflow of funds arises as a result of covering current (operational) costs, investment costs, payments to the budget and off-budget funds, payments of dividends and interest to owners of issue-grade securities, commissions to intermediaries, etc.

The difference between all receipts and deductions of funds for a certain period (month, quarter, year) forms a net cash inflow (cash reserve).

The main factor in the formation of cash flow is the payment by buyers of the cost of products sold by the enterprise. Ultimately, it is the presence or absence of funds that determines the possibilities and directions for the development of an enterprise, including the possibility of investing funds in order to obtain additional income. In addition, the company needs the constant availability of a certain amount of cash as the most liquid assets that support its solvency.

According to economists E.V. Dobrenkov and A.M. Dolgorukov, there are fundamental differences between the amount of cash (net inflow) and the amount of profit received in a given period, which is not always understood by business leaders. In particular, in the income statement, the financial result (profit) is formed in accordance with the accrual accounting principle, according to which income and expenses, regardless of the actual cash flow, are reflected in the accounting period in which they occurred.

In addition, certain types of accrued costs and reserves, such as depreciation allowances and reserves for future expenses, increase production costs, but do not cause any cash outflow at all.

funds. The investment operations of the enterprise cause significant cash flows, but are practically not reflected in the calculation of profit. Financial transactions that are not related to operating and non-operating income and expenses (for example, obtaining and repaying loans and borrowings, targeted financing) are also not reflected in the reporting when generating profit.

Thus, the cash basis used to calculate cash flows differs significantly from the accrual method used to determine earnings.

Profit expresses the increase in the advanced value, which characterizes the efficiency of enterprise management. However, the presence of profit does not mean that the enterprise has free cash available for spending.

Systematic accounting and control of cash flow in a modern enterprise helps to ensure financial stability and solvency both in the current and future periods. The relevant service of the enterprise must manage cash flows in such a way that profitability is maximized and liquidity is maintained at a sufficiently high level.

With a lack of financial resources, an enterprise in terms of self-financing is forced to raise funds in the form of loans. So that the need for a loan does not arise during the period, it is desirable, within the limits of available possibilities, to distribute income and expenses by months in such a way that the least expenses are made in the months with the lowest incomes and vice versa. At the same time, the total amount of receipts and expenditures for the period, of course, does not change.

In practice, this means either an increase in revenues or a decrease in expenditures in certain months (quarters) of the period. The increase in revenues is mainly provided by the acceleration of the turnover of accounts receivable, and the reduction in expenses - by the slowdown in the turnover of accounts payable. The latter can be regulated only in terms of settlements with suppliers and advances. The rest of the company's debt payments are regulated, and the accounts payable for these payments can only increase, only becoming overdue.

For effective regulation of cash flows, they are classified.

Classification sign	Types of cash flows
1. Type of financial and economic activity	1.1. For current (operating) activities 1.2. For investment activities 1.3. For financial activities
2. The scale of service of the economic process	2.1. Aggregate cash flow across businesses as a whole 2.2. Cash flow of a structural unit (branch) 2.3. Subsidiary cash flow 2.4. Cash flow from individual and business transactions
	3.1. Incoming cash flow (money inflow) 3.2. Outgoing cash flow (money outflow)
4. Form of implementation	4.1. cash flow 4.2. Non-cash cash flow
5. Scope of circulation	5.1. External cash flow 5.2. Internal cash flow
6. Length of time lag	6.1. Short term cash flow 6.2. Long term cash flow
7. By the level of cash adequacy	7.1. Excess 7.2. Optimal 7.3. In short supply
8. Type of currency	8.1. In national currency 8.2. in foreign currency
9. By the method of predictability	9.1. Expected (projected) cash flow 9.2. Random stream
10. Continuity of formation	10.1. Regular cash flow 10.2. Discrete cash flow
11. Stability of time intervals of formation	11.1. Regular cash flow with regular time intervals (lags) 11.2. Regular cash flow with irregular time intervals
12. Evaluation over time	12.1. Real cash flow 12.2. Future cash flow

Thus, cash is the most limited (scarce) resource in a market economy, and the success of a firm is largely determined by the ability of its management to use cash effectively.

Each type of cash flow requires a special management approach. Thus, the cash flow for current (operating) activities includes the receipt and use of funds that ensure the performance of the production and commercial functions of the enterprise.

Economist Efremov identifies the following categories that form cash inflows:

- cash proceeds from the sale of products (goods, works and services) in the current period;

- proceeds from the resale of goods received by barter;

- proceeds from the repayment of receivables in the reporting period;

- advances received from buyers and customers;

- special-purpose financing;

— received short-term loans;

- other supply.

The outflow of funds occurs due to:

— payment of invoices of suppliers and contractors;

— remuneration of personnel;

- deductions to the budget and contributions to extra-budgetary funds;

- payment of accountable amounts;

— repayment of short-term loans and borrowings, including payment of interest;

— short-term financial investments;

- other payments.

in financial activities, cash inflows are provided by:

— short-term credits and loans;

— proceeds from the issue of short-term securities;

— budgetary or other short-term financing;

— dividends and interest on short-term financial investments;

- other supply.

The cash outflow here is formed by:

- issuance of advances;

— short-term financial investments;

— payment of interest on received short-term credits and loans;

— repayment of short-term credits and loans;

- other payments .

The most general parameter is the aggregate

the cash flow of the enterprise, which characterizes the total amount of receipt and expenditure of cash flow. The final balance on the balance sheet is carried out according to the formula:

Okp \u003d NDPtd + NDPid + NDPfd + Onp (1),

where Okp and Onp are cash balances at the end and beginning of the billing period,

NDPtd, NDPid and NDPfd - net cash receipts from current, investment and financial activities.

The purpose of such a calculation is to determine the amount of net cash receipts for the enterprise as a whole. A positive cash flow balance indicates the financial stability of an economic entity, and a negative one indicates a loss of financial balance. Based on the analysis of cash flows for the past period, a forecast for the future is made (cash flow budget and balance of payments).

Thus, the practice of financial management identifies the most common factors that form the cash flows of an enterprise. The active influence on these factors allows the enterprise to provide sufficient amounts of finance.

1.3 Cash flow management methods

Effective cash flow management requires the formation of a special policy for this management as part of the overall financial strategy of the enterprise. Economist S.V. Bolshakov proposes to develop such a policy in the following main stages:

1 Analysis of the company's cash flows in the previous period.

2 Research of the factors influencing formation of cash flows of the enterprise.

3 Justification of the type of cash flow management policy of the enterprise.

4 The choice of directions and methods for optimizing the cash flows of the enterprise.

5 Planning of cash flows of the enterprise in the context of their individual types.

An effective cash flow management policy

involves ensuring effective control over the implementation of the chosen cash flow management policy of the enterprise.

Analysis of cash flows of the enterprise in the previous period. The main purpose of this analysis is to identify the level of adequacy of the formation of funds, the efficiency of their use, as well as the balance of positive and negative cash flows of the enterprise in terms of volume and time. The analysis of cash flows is carried out for the enterprise as a whole, in the context of its main types of economic activity, for individual structural divisions (“responsibility centers”).

At the first stage of the analysis, the dynamics of the total volume of the enterprise's cash turnover is studied. In the course of this aspect of the analysis, the growth rates of the total volume of money turnover are compared with the growth rates of the enterprise's assets, production volumes and product sales. To assess the level of generation of cash flows in the course of economic activity of the enterprise, the indicator of the specific volume of cash turnover per unit of assets used is used.

The increase in this indicator in dynamics indicates the intensification of the generation of cash flows of the enterprise in the course of its economic activity and vice versa.

At this stage of the analysis, special attention should be paid to the consideration of the dynamics of the total volume of cash turnover in the operating activities of the enterprise. For these purposes, the indicator of the specific volume of the enterprise's cash turnover per unit of products sold can be used.

Finally, at this stage of the analysis, it is necessary to compare the pace of dynamics of the duration of cash turnover for operating activities in days with the pace of dynamics of the cash turnover cycle (financial cycle) of the enterprise.

At the second stage of the analysis, the dynamics of the volume and structure of the formation of a positive cash flow (cash receipts) of the enterprise in the context of individual sources is considered. The main attention at this stage of the analysis is given to the study of sources of cash receipts by type of economic activity of the enterprise. Since the main generator of positive cash flow is operating activities, an important indicator of the assessment is the coefficient of participation of operating activities in the formation of this flow.

At the third stage of the analysis, the dynamics of the volume and structure of the negative cash flow (cash spending) of the enterprise in certain areas of cash costs is considered. In the course of this stage of the analysis, first of all, it is determined how proportionately these costs were distributed among the main types of economic activity of the enterprise, whether they were of a regular or emergency nature, to what extent they were objectively conditioned. Since investment costs play the greatest role in ensuring the development of an enterprise, an important assessment indicator is the coefficient of participation of investment activity in the formation of a negative cash flow.

At the fourth stage of the analysis, the balance of positive and negative cash flows in terms of the total volume of the enterprise as a whole is considered.

At the fifth stage of the analysis, the dynamics of the formation of the amount of net cash flow is considered as the most important indicator for evaluating the effectiveness of the entire financial management aimed at ensuring the growth of the market value of the enterprise.

A special place in the process of this analysis is given to the "quality of net cash flow" - a generalized characteristic of the structure of the sources of its formation.

At the sixth stage of the analysis, the uniformity of the formation of the enterprise's cash flows for individual intervals of the period under consideration is studied. According to L. Kolpin, the objects of analysis of the uniformity of cash flows of an enterprise should primarily be:

The total volume of money turnover;

The total amount of positive cash flow;

The total amount of negative cash flow;

The amount of positive cash flow associated with the sale of products;

The amount of negative cash flow associated with real investment;

The total amount of net cash flow;

The amount of net profit received from the sale of products.

At the seventh stage of the analysis, the synchronism of the formation of positive and negative cash flows in the context of individual intervals of the considered period of time is studied.

Thus, the management of the formation of cash flow is an important direction of the financial activity of the enterprise. The formation of the cash flow of the enterprise is influenced by various factors that must be taken into account in financial planning. The process of generating cash flow includes several stages. Their consistent implementation will allow the company to generate a cash flow that allows timely and sufficient financial resources to be provided to the production process.

2 Analysis of the company's cash flows (on the example of KumAPP OJSC)

2.1 Organizational and economic characteristics of the enterprise

Open Joint Stock Company "KumAPP" was established in 1993 as a result of the privatization of the State Enterprise "KumAPP". The amount of the authorized capital is 337647 thousand rubles.

The authorized capital is divided into 377,647 shares with a nominal value of 1,000 rubles each. All 100% of the shares are owned by JSC Russian Helicopters.

The management of the current activities of the company (with the exception of issues related to the exclusive competence of the general meeting of shareholders and the Board of Directors of the company) is carried out by the general director elected by the general meeting of shareholders. Legal address: 453300 Bashkortostan, Kumertau, st. Novozarinskaya 15 A.

The enterprise was founded in 1962 on the basis of a repair and mechanical plant. In 1963, KMZ mastered the production of landing and ground aircraft. In 1968, the first product was produced - the Ka-26 helicopter, in 1972 KMZ was renamed the Kumertau Helicopter Plant, as the parent company became part of the Kumertau Aviation Production Association (1977).

Currently, KumAPP produces the following types of helicopters:

Ka-27 PS (search and rescue);

Ka-28, Ka-29 (transport and combat);

Ka-31 (radar);

Ka-32A (multi-purpose middle class);

Ka-32A11VS (multipurpose);

Ka-226 (light multipurpose).

At present, OJSC KumAPP is a large enterprise with a developed infrastructure, equipped with modern equipment, capable of producing the most modern helicopter equipment. Helicopters manufactured by KumAPP OJSC are in constant demand among operators due to their high performance characteristics, long service life, engine reliability and multifunctional avionics.

The main Russian consumers of FSUE KumAPP products are the Ministry of Emergency Situations, the Ministry of Defense of the Russian Federation, the Ministry of Internal Affairs, the Federal Border Guard Service of the Russian Federation and other law enforcement agencies. Helicopters are successfully operated by Murmansk Airlines,

Vladivostokavia, Nefteyugansk Airlines, Avialift, Prana-service, MI-Flight and others.

The financial activity of the enterprise is based on the data of the content of the accounting policy, the relevant instructions and the main forms of accounting. Accounting in JSC "KumAPP" is conducted on the basis of the accounting policy of the enterprise.

The director is responsible for financial work at enterprises in accordance with the Civil Code. An appointed financial director or chief accountant is responsible for financial management. Based on economic feasibility, these officials determine the structure and main tasks for the newly created unit. The financial department can be organized both within the framework of the accounting service, and separated into a separate unit.

An analysis of the production structure of this enterprise allows us to conclude that it has a workshop production structure built according to the technological principle.

The analysis of the main technical and economic indicators is carried out in Table 1. The data for the analysis were obtained from the financial statements of the enterprise, as well as from the economic reports of the economic department.

The table presents indicators that most fully characterize the results of the enterprise's production activities and the efficiency of the use of available resources.

Table 2 - Analysis of the technical and economic indicators of JSC "KumAPP"

Name of indicator				Changes in 2011 according to relative to 2009
Production capacity, units
Output in physical terms, units
Production capacity utilization, %
Sales proceeds, thousand rubles
Net profit, thousand rubles
Number of staff
Labor productivity, thous.
Average balance of working capital, thousand rubles

Continuation of table 2

Average annual value of capital, thousand rubles
The average annual cost of fixed assets, thousand rubles.
Capital-labor ratio, rub./person
Material costs, thousand rubles
Return on equity, in shares
Profitability of sales, in shares of units.
Working capital turnover ratio, turnover
Capital productivity of fixed assets, rub/rub.
Material return, rub./rub.

The data in the table showed that the proceeds from sales increased compared to 2009 by 3,472,814 thousand rubles. However, despite this, the net profit of the enterprise decreased by 1883 thousand rubles. The average annual value of current assets increased by 7,745,509 thousand rubles. This is due to the increased needs of the production process in working capital and, first of all, in stocks of raw materials and materials.

Figure 1 - Changes in the technical and economic indicators of JSC "KumAPP" for the period 2009-2011

The average annual cost of fixed assets increased by 724,524 thousand rubles. This is also due to industrial necessity. It can be considered that one of the factors for the growth of production volumes is the technical re-equipment and increase in production capacities at the enterprise. At the same time, the efficiency of the use of fixed assets increased by almost 0.46 rubles. from each ruble of their value.

The growth in revenue allowed us to increase the efficiency of the use and working capital. Turnover increased compared to 2009, although not significantly. And still remains very low and is only 0.4 turnover per year. This indicates that JSC "KumAPP" does not use modern methods of regulating the balance of working capital. The inefficient use of working capital leads to an unreasonable increase in their volume and the emergence of a large dependence on loans and partners. It is necessary to study and apply in this organization scientific methods of forming the structure of working capital and, thereby, reduce their total value.

Labor productivity increased by 883.4 thousand rubles. per employee. This happened as a result of optimizing the number of personnel and increasing the total revenue from production activities.

Thus, we can consider that the economic results of JSC "KumAPP" are satisfactory. However, it is necessary to carry out activities in the field of financial management to reduce costs and increase profitability.

2.2 Financial analysis of the economic activity of the enterprise

The financial analysis of economic activity is carried out according to the indicators of the financial statements of the enterprise. Using form No. 1 (balance sheet), we will analyze the dynamics of the state of property of KumAPP OJSC for the period 2009-2011.

Table 3 - Dynamics of the state of property

property							2011 by 2009
Main facilities

Table 3 continued

Accounts receivable debt
non-current
Cash facilities
materials
negotiable
property

The possibilities of forming the cash flows of the enterprise are determined by the composition and volume of individual items of the enterprise's property. An analysis of the dynamics of property showed that the assets of the enterprise increased compared to 2009. However, in relation to the indicators of 2010, the total amount of the enterprise's property has decreased.

The company's cash assets have decreased, which indicates an insufficiently effective formation of cash flows.

The analysis of the table showed that the main property of the enterprise is working capital. Their share is 2 times higher than non-current assets. This testifies to the high mobility and maneuverability of the means of JSC "KumAPP"

At the same time, KumAPP OJSC has significant reserves for the formation of cash flows, since there is an increase in non-current assets. But the share of inventories is declining. This can have a negative impact on the production process, and therefore on the output.

In table 3, we will analyze the dynamics of the indicators of the sources of formation of the property of KumAPP OJSC.

sources funding							2011 by 2009
Statutory
own
Creditor debt:
By taxes
Suppliers
By salary
Extrabudgetary
sources

Analysis of table 3 showed that the equity capital of the enterprise is increasing. Therefore, its share exceeds the share of borrowed funds. This positively characterizes the creditworthiness and financial position of the enterprise.

JSC "KumAPP" has low indicators of debt to suppliers, taxes and extra-budgetary contributions. JSC "KumAPP" has no wage arrears.

This is a consequence of timely settlements of the enterprise. Therefore, JSC "KumAPP" can be characterized as an enterprise with high creditworthiness.

In table 4 we calculate the profitability indicators. Profitability is the most important indicator of the effectiveness of the economic activity of the enterprise and the use of its resources. Profitability shows how much profit falls on 1 ruble of an indicator characterizing the production activity of an enterprise or the resources it has.

The calculation data of profitability indicators showed that, in general, KumAPP OJSC is a profitable enterprise.

However, profitability indicators such as return on sales, total capital (assets), current assets and equity are declining. This is due to factors such as a decrease in the company's net profit in 2011 and an increase in the cost of fixed and working capital, as well as the amount of proceeds from the sale of manufactured products.

Profitability of production, that is, cost recovery, has increased due to a decrease in unit costs at the enterprise. The increase in the profitability of production was positively influenced by the receipt of a state order for the production of the plant's products.

The main reason for the increase in the efficiency of production and commercial activities of KumAPP OJSC is a significant increase in orders and capacity utilization, as well as personnel. Therefore, a further increase in production volumes will allow this enterprise to increase profitability and increase efficiency.

In general, KumAPP JSC needs to carry out comprehensive work to increase the profitability of its activities. This will also increase the profitability of the production and economic activities of the enterprise.

The formation of sufficient cash flow can improve the financial stability of the enterprise. In table 5, we consider the indicators characterizing the financial stability of KumAPP OJSC. Financial stability is characterized by the financial independence of the enterprise from the attracted capital. A number of coefficients are calculated to assess financial stability. To assess the degree of financial stability, the calculated coefficients are compared with the normative ones, which are established taking into account the world experience in conducting financial activities of successful organizations.

Table 6 - Indicators of financial stability of JSC "KumAPP" in 2011

Name of indicator	For the beginning of the year	At the end of the year	Change, + -	Control meaning
Coefficient of autonomy (financial independence)
Financial dependency ratio
Financial stability ratio
Financial risk ratio
Investment ratio
Agility factor
Mobility coefficient (security of current assets with own working capital)
Equity ratio

The calculations showed that the indicators of financial stability of KumAPP OJSC are below the normative ones. This indicates that the organization is financially unstable. At the same time, most of the indicators characterizing financial stability decreased by the end of 2011.

The financial stability ratio is also significantly below the standard. So you can read OJSC "KumAPP" as a financially unstable enterprise.

Table 7 - Establishment of the level of financial stability of JSC "KumAPP" in 2011

Calculations showed that KumAPP OJSC is not provided with its own working capital in the standard volumes. OJSC "KumAPP" is a financially unstable enterprise. Therefore, it is necessary to increase the share of own funds in the liabilities of the enterprise.

An assessment of the degree of financial stability showed that in JSC "KumAPP" the amount of reserves and costs exceeds the amount of sources of formation. This indicates that JSC "KumAPP" is located in

near-crisis state. Bankruptcy is very likely. Therefore, it is necessary to immediately develop and implement a program to reduce the amount of reserves and borrowed funds.

Thus, JSC "KumAPP" can be read as a steadily developing enterprise. But his work is not effective enough. This is a consequence of the low efficiency of the use of enterprise resources. Therefore, this enterprise has low indicators of financial stability and may fall into an unsatisfactory financial position.

2.3 Analysis of the formation of cash flow

Analysis of the formation of the cash flow of KumAPP OJSC will begin with an analysis of the dynamics of sales proceeds. We will carry out the calculations in Table 8. The dynamics of production and sales indicators determines all other economic indicators of the enterprise, as well as its financial position.

Table 8- Analysis of the dynamics of indicators of production and sales of products of JSC "KumAPP"

	production,	Growth rate, %		implementation,	Growth rate, %
		basic			basic

Calculations have shown that JSC "KumAPP" increases production volumes. In 2009, the growth was 35.7%, and in 2010 production volumes more than doubled compared to the previous year. But already in the next year, 2011, the growth rate slowed down and amounted to 34.1%. However, this is a very good growth rate. In general, during the study period, production volumes increased by almost 4 times.

Sales volumes have increased more than 4 times since 2008. But at the same time, the growth rate of this indicator in 2011 is low. Sales volumes in 2011 decreased compared to 2010 by 12.5% ​​(10087.5).

In 2008, the company received support under the State Anti-Crisis Program, so it was possible to achieve an increase in production volumes. In 2009, despite the ongoing global economic crisis, the company managed to increase production volumes by 35.7% and sell more products than in the previous year. In part, the increase in sales is due to the receipt of money for previously produced and delivered to customers helicopters and other products.

In 2010, JSC "KumAPP" was again provided with public procurement. Due to the increase in supplies to the domestic market, the volume of production increased by more than 2 times compared to the previous goal.

The dynamics of production and sales indicators determined all other economic indicators of the enterprise, as well as its financial position.

The growth rates of sales and production do not match. In 2009 and 2010, sales growth rates are higher than production growth rates. This suggests that the company sold from the warehouse finished products produced earlier. This is partly the result of the global economic crisis of 2008-2009, when buyers canceled deals or postponed them due to financial difficulties.

But in 2011, JSC "KumAPP" to some extent worked for the warehouse, as with increasing production rates, less products were sold than in 2009.

It is necessary to achieve stability in the growth indicators of both production and sales.

Together with the analysis of sales proceeds, we will also consider the distribution of cash flow generated by proceeds in Table 9.

In the table, we will consider the dynamics and structure of production costs at KumAPP OJSC during 2009-2011.

Table 9 - The volume and cost structure of JSC "KumAPP"

The main share of the company's costs falls on material costs. This characterizes the manufactured products as highly material-intensive.

The share of material costs ranges from 88% in 2009 to 55.7% in 2010. Such a change in the share of material costs in the overall cost structure of KumAPP OJSC is explained by the fact that the range of products manufactured by the enterprise is very diverse and has a significant impact on the cost structure.

The cost of equipment depreciation has more than doubled. This is the result of an increase in the amount of fixed assets of the enterprise. The growth of depreciation costs did not lead to an increase in the share of these costs in the total cost of the enterprise's products. In 2009, the share of equipment depreciation expenses was 1.31%, and by 2011 it had decreased to 0.9%. This is due to the fact that the total cost increased at a faster rate than the cost of the company's equipment.

The share of labor costs has changed insignificantly. So, if in 2009 it was 16.91%, and in 2011 it decreased to 12.31%. But at the same time, the amount of labor costs increased from 599,089 thousand rubles. up to 949,011 thousand rubles, that is, more than 5 times. Growth in labor costs

is connected both with the growth of the average wages in JSC "KumAPP" and the increase in the number of employees, including the main employees.

Along with the growth of expenses for the remuneration of employees, the company's contributions to social needs also increased. These indicators are interrelated. However, the share of expenditures for these needs also remained almost unchanged. If in 2009 it was 4.35%, then in 2011 it was 3.5%.

Other expenses of the enterprise have grown very significantly. In 2009 they amounted to 1,031,210 thousand rubles, and by 2010 they increased to 2,284,741 thousand rubles. However, in 2011 the amount of other expenses decreased to 1453589 thousand rubles. Accordingly, the share of other costs decreased from 29.10% in 2009 to 18.9% in 2011. The growth of other costs is associated with an increase in production volumes and commercial activity of KumAPP OJSC.

In table 10, we consider the indicators of the cost structure of products.

Table 9 - Analysis of the impact of cost on the level of revenue

The data in Table 10 showed that the main share of the costs of KumAPP OJSC are variable costs. Their share ranges from 68.5% in 2011 to 84.4% in 2008. At the same time, it should be noted that the share of variable costs is decreasing. Accordingly, the share of fixed costs increased from 10% in 2008 to 16% in 2011. This growth is explained by the faster growth rates of wages of managerial workers in relation to the growth rate of wages of production workers. As a result, the growth of the payroll fund for engineers, which is taken into account as part of fixed costs, led to an increase in the total value of fixed costs and their share in the cost of production. The increase in fixed costs is also caused by factors such as an increase in equipment depreciation and general business expenses.

Cost reduction was achieved by reducing the share of variable losses in revenue.

The analysis showed that JSC "KumAPP" does not carry out rationing of semi-fixed costs. Therefore, in the conditions of production growth, they also increase. It has the effect of marginal profit (costs), when after reaching a certain volume of production, fixed costs increase sharply. At the same time, the company managed to reduce unit variable costs. This is the result of controlling the cost of raw materials, and the use of modern cheaper raw materials. In recent years, JSC "KumAPP" pays great attention to the use of the latest technologies that reduce the production costs of raw materials.

Thus, JSC "KumAPP" needs to take measures to normalize certain items of fixed costs. This will reduce the total cost of production, and hence increase the profits of the enterprise.

In table 11, we analyze the formation of the enterprise's profit. Profit is the main indicator of the effectiveness of the enterprise and its management system, and hence the formation of cash flows.

Table 11 - Analysis of the dynamics and structure of financial results of KumAPP OJSC

Name indicator
Sales profit
Interest receivable
Income from participation in other organizations
Percentage to be paid
Other income
other expenses

Table 11 continued

The net profit of JSC "KumAPP" is formed at the expense of profit from the sale of manufactured products, work performed and services rendered. Significantly increase the amount of net profit non-operating and operating income of the enterprise, which are accounted for in the line "other". Their value in the process of formation of net profit is growing. This is a consequence of the fact that during the study period they increased by 1896441 thousand rubles.

The study of the structure of the article "Other income" showed that these are incomes received from the exchange rate difference. JSC "KumAPP" sells a significant part of its products to foreign partners for foreign currency and the growth of the exchange rate of this currency against the Russian ruble has a positive effect on the financial performance of this organization.

OJSC “KumAPP” also receives significant income from the sale of this currency.

The organization also receives additional income from the sale of obsolete or unused fixed assets. Such fixed assets are in stable demand from small and medium-sized commercial organizations specializing in metalworking.

Increasing the profitability of OJSC "KumAPP" is also achieved through the sale of purchased products.

Thus, JSC "KumAPP" uses various available ways to improve the financial results of economic and financial activities.

The amount of cash flows of the enterprise is reduced by operating and non-operating expenses. Thus, due to the payment of interest, the profit of KumAPP OJSC decreased in 2011 by 45,830 thousand rubles. Note that this is 138306 thousand rubles. less than in 2009.

The amount of cash flow is increased by interest receivable. Their amount increased in 2011 by 735 thousand rubles. and amounted to 960 thousand rubles.

Thus, by reducing operating and non-operating expenses, KumAPP OJSC can increase the amount of balance sheet profit and, accordingly, the net profit of the enterprise.

In general, the net profit of JSC "KumAPP" in 2011 amounted to 87 thousand rubles. For comparison, in 2009, the net profit of the enterprise amounted to 1970 thousand rubles. Such indicators can be considered very low for an enterprise with such volumes of production and sales. Thus, under the influence of the growth of non-operating and operating costs, KumAPP OJSC, despite the growth in sales proceeds, reduced cash flows. It is necessary to carry out work to reduce the costs of the enterprise, which are not directly related to production and marketing activities.

3 Problems of cash flow formation in JSC "KumAPP" and ways to improve them

3.1 Problems in the formation of the cash flow of the enterprise

The above calculations showed that the indicators of financial stability of KumAPP OJSC are below the normative ones. This indicates that the organization is financially unstable. At the same time, most of the indicators characterizing financial stability decreased by the end of 2011.

The autonomy coefficient is more than 8 times lower than the normative one. The coefficient of financial dependence is higher than the normative one. This indicates that the company is very dependent on borrowed funds and insufficiently provided with its own liabilities.

The financial stability ratio is also significantly below the standard. This means that OJSC KumAPP can be considered a financially unstable enterprise.

The financial risk ratio and investment ratio are also very low. This means that JSC "KumAPP" is an unattractive enterprise for investment. Partners should take this into account when providing commodity or financial loans to this enterprise.

The coefficient of provision with own working capital has a negative value, which means that OJSC "KumAPP" is not provided with its own working capital and is very jealous of its partners. The company's reserves are also formed at the expense of partners.

Thus, it is necessary to improve the balance sheet structure of the enterprise and increase the share of own funds.

Profitability indicators such as return on sales, total capital (assets), current assets and equity are declining. This is due to factors such as a decrease in the company's net profit in 2011 and an increase in the cost of fixed and working capital, as well as the amount of proceeds from the sale of manufactured products.

The amount of own capital also increased due to the increase in authorized and additional capital. An increase in the efficiency of using these indicators is possible in the conditions of an increase in the profit of the enterprise. And this, in turn, is possible subject to a decrease in the cost of manufactured and sold products, an increase in other income of the enterprise and a decrease in other expenses.

Since the overall profitability also decreased during the study period, that is, the efficiency of sales of manufactured products, work performed, and services provided decreased. It is necessary to revise the pricing policy, the range of products and reduce the cost of production in order to increase the profitability of sales of this enterprise.

JSC "KumAPP" is not provided with its own working capital in the standard volumes. OJSC "KumAPP" is a financially unstable enterprise. Therefore, it is necessary to increase the share of own funds in the liabilities of the enterprise.

In JSC "KumAPP" the amount of reserves and costs exceeds the amount of sources of formation. This indicates that JSC "KumAPP" is in a state close to the crisis. Bankruptcy is very likely. Therefore, it is necessary to immediately develop and implement a program to reduce the amount of reserves and borrowed funds.

Thus, the analysis of the economic and financial position of JSC "KumAPP" showed that this company is working effectively, but the efficiency of its activities is low. The efficiency indicators of the use of the organization's resources are also low. As a result, the enterprise has formed a balance sheet structure that does not ensure the normal financial stability of this enterprise.

It is necessary to increase the effectiveness of the enterprise and to direct part of the profits to increase the security of the enterprise with its own funds. This will lead to increased financial independence and sustainability.

So, the main problems of JSC "KumAPP" are:

Low turnover of working capital, as a result of their redundancy for the existing volumes of production activities;

The need to maintain the achieved level of production and obtaining government orders;

Low rates of profitability;

Low financial stability.

3.2 Ways to increase cash flow in JSC "KumAPP"

Analysis of the sales market shows the presence of solvent demand for the products of JSC "KumAPP" as well as the prospects for its increase in the near future. The existing production capacities and technologies, the established workforce and established relationships with consumers have made it possible to increase the volumes of

production and maintain a position in the market. However, maintaining a leading position in the market in the future is possible only under conditions of improving product quality, reducing production costs, updating the production fund and using modern technologies, which requires significant investments in production and working capital.

The products of OJSC "KumAPP" - helicopters - are quite expensive. It also holds back a sharp increase in demand. Buyers cannot be ordinary citizens or small businesses. Basically, helicopters manufactured by JSC "KumAPP" are purchased by large companies or government agencies of individual countries to solve various government tasks.

The solution to this situation can be the inclusion in the production program of the enterprise of new products that are in demand among a large number of consumers and are affordable for them. The marketing activity of JSC "KumAPP" should be aimed at finding such products that would take full advantage of both the micro and macro environment of the enterprise.

Participation in various international exhibitions made it possible to identify a relatively free niche in the aircraft industry market: unmanned helicopters. According to the Executive Director of Russian Helicopters JSC A. Shibitov, the creation of helicopter-type unmanned aerial vehicles (UAVs) is a new direction in the world of unmanned aviation, which has been actively developing in the last decade. The UAV market is estimated by experts as one of the most dynamic and very promising. The Russian helicopter industry is obliged to take its niche in it. In this context, the main task of the Russian Helicopters holding company is to develop modern and competitive UAVs with multifunctionality, high reliability and ease of maintenance.

Russian Helicopters Holding JSC has developed models of two promising helicopter-type unmanned aerial vehicles: Korshun and KA-135. These models have a model range of three classes:

Long range (more than 400 km);

Medium range (up to 400 km);

Short range (up to 100 km).

The design of these unmanned aerial vehicles provides for the presence of such characteristics demanded by consumers as vertical takeoff and landing. This design feature, along with the price, determines the competitive advantages of these models in the world market.

In addition, both models of drones have great technical capabilities and are largely versatile. The models are designed for environmental monitoring, air patrol and protection of facilities, transportation of goods, environmental monitoring, to perform meteorological functions, to provide communication with remote areas.

As a platform for the production of these drones, the production facilities for the manufacture of domestic manned helicopters can be used. So the workshop for assembling a light type of a manned helicopter KA - 226 can include in its production program the production of an unmanned aerial vehicle of a helicopter type KA - 135.

The choice of this particular model is explained by the structural uniformity of individual components and parts of the manned helicopter KA - 226 and the unmanned aerial vehicle KA - 135 manufactured by KumAPP OJSC. This will significantly reduce the cost of mastering the new model, since:

There is no need to conduct continuous retraining of personnel;

Reduced equipment changeover costs;

No need for additional equipment;

Production can be located on existing production areas;

The staff is not increasing, but the workload on employees is increasing.

At the same time, the production of drones will allow:

1 Increase sales revenue.

2 Increase the productivity of workers.

3 Increase production capacity utilization.

4 Get additional profit.

5 By reinvesting profits, improve the structure of the company's balance sheet.

6 Increase the financial stability and solvency of the enterprise.

7 Eliminate the possibility of bankruptcy.

Thus, the development of new products will make it possible to fully use the marketing microenvironment of the enterprise and influence the macroenvironment.

Conclusion

At stable operating enterprises, cash flows generated by current activities can be directed to investment and financial activities. For example, for the acquisition of capital assets, for the repayment of long-term and short-term loans and borrowings, the payment of dividends, etc. In many enterprises of the Russian Federation, current activities are often supported by investment and financial activities, which ensures their survival in an unstable economic environment.

The negative consequences of a deficit cash flow are manifested in a decrease in the liquidity and solvency of an enterprise, an increase in overdue accounts payable to suppliers of raw materials and materials, an increase in the share of overdue debts on financial loans received, delays in paying wages (with a corresponding decrease in the level of staff productivity), an increase in the duration of the financial cycle and as a result - in reducing the profitability of the use of equity capital and assets of the enterprise.

Scientific approaches to the formation of cash flows of an enterprise make it possible to ensure financial stability and solvency both in the current and future periods. Therefore, the cash flows of any enterprise, regardless of the form of ownership, are a key object of financial management.

Cash is the most limited (scarce) resource in a market economy, and the success of a firm is largely determined by the ability of its management to use cash effectively.

management of the formation of cash flow is an important direction of the financial activity of the enterprise. The formation of the cash flow of the enterprise is influenced by various factors that must be taken into account in financial planning. The process of generating cash flow includes several stages. Their consistent implementation will allow the company to generate a cash flow that allows timely and sufficient financial resources to be provided to the production process.

JSC "KumAPP" is a promising manufacturing enterprise of the aviation industry. The economic results of JSC "KumAPP" activity are satisfactory. However, it is necessary to carry out activities in the field of financial management to reduce costs and increase profitability.

The financial analysis of the company's activities showed that at present OJSC "KumAPP" is not a sufficiently financially stable enterprise. An assessment of the degree of financial stability showed that in JSC "KumAPP" the amount of reserves and costs exceeds the amount of sources of formation. This indicates that JSC "KumAPP" is in a state close to the crisis. Bankruptcy is very likely. Therefore, it is necessary to immediately develop and implement a program to reduce the amount of reserves and borrowed funds.

This enterprise works efficiently, but the efficiency of its activities is low. The efficiency indicators of the use of the organization's resources are also low. As a result, the enterprise has formed a balance sheet structure that does not ensure the normal financial stability of this enterprise.

It is necessary to increase the effectiveness of the enterprise and to direct part of the profits to increase the security of the enterprise with its own funds. This will lead to increased financial independence and sustainability.

So, the main problems of JSC "KumAPP" are:

Low turnover of working capital, as a result of their redundancy for the existing volumes of production activities;

The need to maintain the achieved level of production and obtaining government orders;

Low rates of profitability;

Low financial stability.

JSC "KumAPP" can be read as a steadily developing enterprise. But his work is not effective enough. This is a consequence of the low efficiency of the use of enterprise resources. Therefore, this enterprise has low indicators of financial stability and may fall into an unsatisfactory financial position.

Therefore, it is necessary to implement measures to increase the proceeds from the sale of manufactured products, improve its quality, and hence the cost, reduce costs and increase the amount of equity capital at the expense of a part of the net profit received.

Under the influence of growth of non-operating and operating expenses, KumAPP OJSC, despite the growth in sales proceeds, reduced cash flows. It is necessary to carry out work to reduce the costs of the enterprise, which are not directly related to production and marketing activities.

JSC "KumAPP" has significant financial reserves to increase cash flows due to revenue growth and cost reduction. Revenue growth can be achieved both by increasing the output of traditional products - helicopters, and by developing new products. These are unmanned aerial vehicles that are used in

currently in great demand both domestically and globally.

JSC "KumAPP" needs to take measures to normalize certain items of fixed costs. This will reduce the total cost of production, and hence increase the profits of the enterprise.