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Introduction

1. Theme urgency

In today’s competitive market conditions of effective management of such basic economic processes as the formation of working capital and operational activities helps resolve a number of issues of strategic development of the company and enhances the effectiveness of the results of economic activity. Most local businesses do not stand fierce competition, do not reach a high level of profitability due to lack of working capital, slow traffic flow of working capital, so the problem of assessing the level of security companies working capital, the choice of sources of funding, determining efficiency and quality of planning is quite relevant, but raises a number of difficulties with the position of strategic management solutions for every enterprise.

The problem of studying the theoretical characteristics of working capital management, including the definition of working capital discussed in the works of academic economists as Bormotova M., V. Bocharov, E. Brigham, Gerchikov I. Goncharov, A., Green V, M Ovsyychuk., L. Pavlov, Poddyerohin A. M, Polak, G., A. Stoyanova and others. Problems of rational utilization and optimization of inventory level seen in the writings of leading scientists and economists Radostovtsya V. Butyntsya F. Pavlyuk I., J. Bakun , A. Boychuk , Adoptee A., I.  Bondarev et al. The question of incorporation of operational risk management and receivables investigated by many domestic and foreign scholars, including Form I. Pashkevych Alexander Lobanov Alexander et al. But the work of Ukrainian scientists still do not fully take into account all the features of the current state of development and working capital industry remains unsolved series of controversial issues, there is an urgent need of a comprehensive analysis and design suitable for the practice of evidence-based recommendations.

2. The purpose and objectives of the study.

The purpose of the master’s work – further development of theoretical foundations and methods of teaching design recommendations for improving the management of current assets of the company.

To achieve the stated objective of the master’s work and decided to put a set of theoretical, scientific, methodological and practical problems:

  1. The essence and specific features of the current assets of enterprises by analyzing the views of scholars.
  2. The influence of external and internal factors on the formation of circulating assets of enterprises.
  3. Studied model for managing current assets of enterprises in general and their components, specifies the conditions for their use.
  4. Recommendations on the use of mathematical modeling to improve management of working capital in today’s environment.

Object is current :assets management processes in today’s enterprise environments.

Subject of research :scientific and methodological bases of formation and use of current assets of the company.

Research Methods . The study is based on the use of the main provisions of a systematic approach, the modern theory of finance, management, marketing, economics and mathematical and statistical analysis methods. The basis of the theoretical part of the study assigned general scientific methods of cognition (dialectic, analysis, synthesis, system, analogy, historical). Methods of analysis and synthesis used in justifying the nature of current assets. The method of comparative analysis – the consideration of existing models for current assets and in determining the appropriateness of their use depending on the variation of the impact factors on components of current assets. In the analytical part of the work to identify the trends shaping and the use of current assets used methods of statistical comparison and grouping. Logic synthesis method used to draw conclusions.

Information base . The theoretical and methodological basis of the study is the latest achievements of economic science – the work of domestic and foreign scientists; legislative and other normative acts of Ukraine; Background and methodological literature; periodicals; theses; State Statistics Committee of Ukraine, the Ministry of Finance of Ukraine, Ministry of Economy; financial statements of companies.

3.The theoretical and conceptual basis of the mechanism of management current assets of the enterprise

The theoretical and conceptual basis of the mechanism of management current assets of the enterprise – based on a comparative analysis of the views of scientists summarized and improved definition of the essence of current assets; The factors that influence the management of individual components of current assets, determined the extent of their influence; A critical analysis of current assets management models[1].

The theoretical foundations of managing current assets suggests that many issues remain controversial. In defining the essence of current assets should be noted that in the economic literature there is no uniform interpretation of the concept. As the terms Synonyms: working capital, working capital, mobile money, current assets. In foreign sources are concepts: a working capital, working capital and net working capital[2].

Revolving funds are a collection of funds for making advances circulating funds and funds circulation, ensuring their continuous cycle[3].

Improving management of working capital of enterprises in Ukraine is largely due to the research of current trends of their formation, determining the factors that affect them, the main justification for increasing the efficiency of the reserve management . To do this, it is reasonable to analyze the volume of working capital, together with the amount of funds commitments GDP.

Trends in GDP, and working capital of enterprises in Ukraine in 2003 to 2011. reported in Figure 1.

Figure 1: Dynamics of working capital and the dynamics of Ukraine’s GDP in 2003-2011 (%)

The total amount of GDP for the period increased from 130.4 billion USD. to 720.7 bln., ie 590.3 billion. or 452.5 %. The total amount of working capital increased by 617 mlrd. hrn. or 244.3 % from 252.5 billion USD .. to 720.7 billion. Thus GDP per 1 hryvnia working capital increased from 0.51 hrn. in 2003. to 0.82 hrn. in 2011. Ie 0.31 hrn. 61 %. This figure is growing at a slower pace than GDP and the total amount of working capital. However, its growth is evidenced by the low efficiency of the production turnover.

The classification of current assets is important, as it enables the company to determine the optimal composition and structure, needs and sources of formation of current assets. From this largely depends on the financial position of the company. Typical composition and deployment of current assets shown in Table. 2.

State diagram of Moore FSM

Table 2. Composition of current assets of the company
(animation: 4 frames, 5 cycles of repeating, 21 kilobytes)
(xi – input signals, yi – bites of state code, zi – output signals)

In the economic literature, the role and value of current assets is considered in the light of their impact on the financial results of the company. It highlighted a number of key areas:

  1. Availability of working capital, defined as the difference between total equity, long-term debt and fixed assets. This indicator reflects the efficiency of enterprise policy in financing assets. Additional profit by improving volume and quality indicators of the company is usually accompanied by an increase in working capital. Conversely, the failure of established indicators to profit due to higher production costs, decrease in sales, receiving non-operating loss is a lack of or reduction in value of their current assets.
  2. The turnover ratio is defined as the ratio of sales to average balances of current assets. He describes the number of revolutions made by current assets (or composite elements) in the period.
  3. duration of one revolution during which current assets make a complete revolution. Thus the main objective of the company is to identify ways to accelerate the turnover of current assets and the release of large amounts of current assets with a view to bringing them into the economy additional costs and profit[5].

The relation between the individual elements of working capital, expressed as a percentage, is called the structure of current assets. The difference in the structures of working capital industries is determined by many factors, including the features of the production process, conditions of supply and marketing, location of suppliers and consumers, the structure of production costs.

Efficient use of working capital is characterized by the speed of their rotation reversible. Accelerating the turnover of these funds causes: first, the increase in output per monetary unit current expenses of the company; Secondly, the release of funds and thus create additional reserves to expand production[6].

Current assets management system is a part of the overall financial strategy of the company, which is to build the required amount and composition of current assets, streamline and optimize the structure of the sources of their funding.

Conclusion

In the master work the theoretical generalization and a new scientific problem solving on improving the management of current assets of enterprises. The study made it possible to draw the following conclusions and substantiate such suggestions.

  1. Established that the economic substance of current assets is as advances in material and financial assets are cash, sold or consumed within one production cycle (or 12 months) in the operational, financial and investment companies. The feature of the functioning of current assets should be considered feasibility of determining the optimal size of the components that will minimize the need for sources of funding and increase efficiency. Effective use of current assets facilitates continuity of industrial and commercial cycle and allows you to maintain sufficient liquidity and profitability, increases the market value of the company.

    Improving management of working capital of enterprises in Ukraine is largely due to the research of current trends of their formation, determining the factors that affect them, the main justification for increasing the efficiency of the reserve management. To do this, it is reasonable to analyze the volume of working capital, together with the amount of funds commitments GDP.
  2. Proposed model allows us to make operating budget ventures with the current requirements to maintain profitable operations, and on this basis to regulate the structure and composition of the current assets of the company.
  3. In the process of formation and use of current assets of enterprises need to consider the impact factors on their size, structure and the efficiency of use. Established that a decisive influence on all components of current assets with the following factors: legal framework of regulation, state of the economy, the level of competition in the industry, the professional level of the staff, competitiveness, accounting policies, organizational culture. This suggests the need to consider these factors when choosing a policy management of current assets.

References

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