Doctor of Economics, Professor of the Department of Economy and Finance of an Enterprise of Kyiv National University of Trade and Economics
Doctor of Economics, AssociateProfessor of the Department of Economy and Finance of an Enterprise of Kyiv National University of Trade and Economics
PLANNING CASH FLOWS OF ANENTERPRISE
Background. The importance of the state of cash flow to ensure the solvency and financial viability of an enterprise and growth of its market value makes them an important subject of financial planning. However, the lack of methodological support of this process does not provide the appropriate level of cash flow planning in Ukraine.
Current practice of planning cash flows of the real sector of the economy needs to change the current paradigm of methodological principles of justification of total amount and structure of cash flows based on value-oriented management with a strategic perspective.
Analysis of recent research and publications. The issue of cash flow planning of an enterprise was studied in scientific works of domestic and foreign scientists, including V. Andriyets, Yu. Olifirovoya, V. Bocharova, M. Bertonesh, J. Van Horne, O. Oleksyuk, M. Veselova, M. Pacheco, M. Vellasco, M. Noronha, K. Lopes and others. Their feature is the orientation on the current and operational level of planning. However, not enough attention is paid to the definition of methodological approaches to planning cash flows for different management frame works on the principles of value-based management.
The aim of the research is to develop basic methodological approaches to planning the total volume and structure of the cash flows of companies on the basis of the target amount of net cash flow, which most characterizes the result of value-oriented approach to management.
Materials and methods. The methodological base of research are the principles of the theory of financial management and of value-oriented business management in planning cash flows, that are presented in the works of contemporary domestic and foreign scientists.
The study used dialectical and general scientific methods of knowledge, analysis and synthesis to characterize current approaches to planning cash flow of an enterprise, methods of direct payments and the economic and mathematical modeling – to determine the effectiveness of their application in modern practice, optimization techniques - to justify certain elements of net cash flow.
Conclusion. The study found that the current paradigm of planning cash flows from operating activities of the enterprises based on the index of the planned amount of product sales (turnover) is weakly linked to the concept of value-based management. In order to improve this dependence it’s proposed to choose "target amount of net cash flow" as benchmarks of the planning implementation. The process of the proposed planning is done within three management frameworks: strategic, current and operational, the object, time horizon, methods and sequence of scheduled payments have been defined for each of them.
The methodical approach to planning cash flows is consistent with the concept of value-based management, it involves continuous assessment of the risk of cash flow, allowing justify measures to increase the market value of the real sector.
Keywords: value-oriented approach to the enterprise management, methods of cash flow planning, target amount of net cash flow of an enterprise.
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