Liquidity management

So, the term "liquidity" comes from the Latin word for fluidity, fluid. Thus, we can conclude that the liquidity of the enterprise characterizes its movement, movement. And to be more precise, the ability of the company's assets to easy mobilization. The concept “enterprise liquidity management” was most developed in the second half of the last century and is associated with the development of the banking system. It was then that, in connection with the loss-making of many state-owned banks and the emergence of a large number of commercial banks, methods for managing the bank's liquidity began to actively develop .

Currently, the term liquidity and liquidity management are used in relation to such economic entities as goods, money, market, enterprise, balance sheets , etc. Within the indicated areas of application, liquidity is a kind of relationship created to correctly realize the cost of exchange (for example, goods and for money). Moreover, liquidity in this case is the ability of the advanced cost to return after some time. With high liquidity, the return period is reduced.

In the case of an enterprise, liquidity is the ability of an enterprise to respond in a timely manner to financial changes (problems and prospects), the sufficiency of assets to repay short-term loans by transferring assets into cash, and the ability to increase assets in case of growth in sales at the enterprise.

Liquidity and solvency management

Without a doubt, the key to the successful development of the enterprise is the competent management of its finances. A very significant part of financial management is the analysis of financial stability. Timely identification of financial problems, the search for opportunities to eliminate them, as well as to strengthen the financial condition - this is the liquidity management of the enterprise. The analysis allows not only to assess the existing problems, but also to determine the strategy for further development, to build real plans, to monitor their implementation, as well as evaluate the results and prospects of the enterprise.

In modern Russia, financial analysis and liquidity management of an enterprise both in the private sphere and at the state level is at a rather low level, which is explained by insufficient education of domestic specialists and little experience in financial analysis in the state as a whole.

A comprehensive analysis of the enterprise is an assessment of a number of factors in the development of the enterprise. The analysis covers both external and internal market factors, as well as directly manufactured products, and financial indicators. It allows you to evaluate the capabilities of the enterprise in terms of further development in the selected field.

One of the most important components of enterprise liquidity management is accounting reporting analytics. The analysis goes in several directions.

The horizontal research method is a comparison with the previous period of each reporting item. It allows not only to track changes, but also to predict trends of growth or decrease. Vertical analysis allows you to determine the specific gravity of certain expense items in the reporting of one period. The trend research method by studying each position in the reporting allows you to identify some general development trends and create a forecast. The coefficients are also calculated, which allows a comparative analysis of the positions.

The methods of liquidity management include:

  • distribution of funds through various channels;
  • distribution of assets in accordance with the terms of liabilities;
  • scientific management.

The liquidity management of the enterprise involves such a placement of the finances of the enterprise, which will allow you to quickly pay off obligations if necessary.


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