Liquidity as a criterion for optimizing the structure of the enterprise’s current assets

Issue: №11/1, 2019

Doi: https://doi.org/10.37634/efp.2019.11(1).3

The article investigates the optimization current assets structure of the enterprise. The assets of the company are one of the most important objects of financial management, because the condition and efficiency of their use affects the level of profitability of business activities. Undoubtedly, management decisions on current assets are characterized by a greater degree of maneuverability, which reinforces the need for increased attention to managing this type of assets. The purpose of the article is to scientifically substantiate the theoretical and practical principles of applying the liquidity criterion in optimizing the structure of current assets of the enterprise, to determine the impact of the applied criterion on the efficiency of use of current assets and their components. Decisions to improve the management of current assets should be based on key criteria, taking into account the state of the enterprise, the results of the financial analysis, which are the basis for making effective management decisions. In our opinion, one of the important criteria that determines the solvency of an enterprise is liquidity. At the enterprise under study, the liquidity indicators are not within the normative values. The proposed optimal structure of current assets, determined on the basis of ensuring the normative values of liquidity indicators, has demonstrated its effectiveness. The result of the optimization was an increase in the turnover of current assets and an increase in the efficiency of their use. Current assets forecast should become a must for financial work in every domestic enterprise. Different variants of the structure should be forecasted according to the selected criteria, based on the goals of the enterprise development and the initial conditions of its functioning.

Keywords : liquidity, assets, current assets, current assets structure, optimization of current assets structure

References:

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