8. Gennadiy A. Kostin, Margarita V. Tabakov, Andrey Yu. Bombin

System of Efficient Corporate Cash Flow Management Under the Economic Conditions of the 21st Century

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Gennadiy A. Kostin

Vice-Rector of St. Petersburg University of Management Technologies and Economics, Doctor of Technical Sciences, Associate Professor

Lermontovskiy Ave 44/A, St. Petersburg, Russian Federation, 190103

Margarita V. Tabakova

Associate Professor at the Department of St. Petersburg University of Management Technologies and Economics, Ph.D. in Economics, Associate Professor

Lermontovskiy Ave 44/A, St. Petersburg, Russian Federation, 190103

Andrey Yu. Bombin

Assistant of the Department of St. Petersburg University of Management Technologies and Economics

Lermontovskiy Ave 44/A, St. Petersburg, Russian Federation, 190103

This study examines the major problems associated with the nature and principles of cash flow management under the current economic conditions.
Aim. The study aims to identify the fundamental principles of cash flow management and to provide insights into the development of an efficient cash flow management system.
Tasks. The authors study the formation of an efficient corporate cash flow management system under the current economic conditions.
Methods. This study uses general scientific methods of cognition, such as analysis, synthesis, generalization, induction, modeling, classification, and the logical method, to determine the current trends in efficient corporate cash flow management.
Results. The first step to achieving the highest efficiency in cash flow management is to maximize the coordination between the divisions of an economic entity. The following basic ratios play an important role in the assessment of the efficiency of corporate cash flow management:
• cash flow liquidity ratio;
• cash flow profitability ratio;
• cash flow adequacy ratio.
Conclusion. Based on the results, the authors believe that an efficient corporate cash flow management system should be developed according to the following principles: continuity and variability of financial planning, complexity of financial management, correlation between achieving long-term (strategic) results and motivation, unification and consistency of the applied document formats, and coordination and interdependence between the functional subsystems of the company.

Keywords: corporate activities, cash flow, cash flow management principles, solvency, liquidity, financial management

References

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