RESEARCH OF THE ESSENCE, MOVEMENT AND EFFICIENCY OF CASH FLOW OF THE ENTERPRISE

Abstract

Relevance of the topic is related to the fact that cash flow management is an important tool to cover expenses, to create a profit, which leads to the growth of wealth, expanding capacity, market share gains, and increasing the competitiveness of the enterprise. Continuous analysis of cash flows, assessment of their dynamics and structure, as well as the identification of factors affecting the elements of cash flows, contribute to a timely and adequate response to the course of business processes, and improve the financial management system of the enterprise. The purpose of the study is to establish the essence of cash flows, based on the International and National provisions (standards) of accounting and summarize the sequence of analysis of cash flow and efficiency of cash flows in the enterprise. Assessment of cash flow for the reporting period is an important supplement to the analysis of the financial condition of the enterprise and performs the following tasks: determining the volumes and sources of cash flows received by the enterprise; identifying the main directions of cash usage; evaluating the adequacy of the enterprise's own funds for investment activities; determining the reasons for the difference between the amount of profit received and the actual cash flow availability. Ratio analysis allows to assess the effectiveness of cash flows, which can be used at the strategic, operational and tactical levels of control, because the analysis performed in the dynamics over a period of time will provide information to assess the activities of the enterprise both in the past and present, and will also serve as the basis for more effective planning and cash flow forecasting for the future. Revealed the role of assessing the floating and analysis of the effectiveness of cash flows in the financial and economic activities of the enterprise in order to manage them. Cash flow analysis based on the Cash Flow Statement using the direct method has been conducted. Performed an analysis and assessment of the effectiveness of the formation of enterprise cash flows on the basis of the coefficient method. The practical value of the research consists in the possibility of using this methodology to analyze the cash flows of agricultural enterprises for management purposes.