Factors affecting the formation of cash flows for industrial companies.

Abstract

The article examines the factors affecting the change in volume of cash flow of the industrial enterprise. With the method of formalization and the system analysis there were identified the main factors of influence on the change in cash flows of the company. It was determined that the factors considered can be classified according to various criteria, but the main classification criterion is considered the separation of all the factors into internal and external. Particular attention should be paid to the study of factors, factors that influence the formation of cash flows from operating, investing and financial activities, as well as the factors that shape the incoming or outgoing cash flows. It was noted that the division of the factors of the 1st, 2nd, 3rd ... n-th order by activity of the enterprise is necessary for the formation of factor models, which make it possible to find out how the factors influence on a productive indicator. It has been proposed to conduct a factor analysis of net cash flow, which will clarify the relationship between the deficit or excess cash flows and key financial indicators of the company’s activities. Reliability of the presented financial information is studied by using the correlation between financial results and balance sheet data, using excess or deficit cash flow. The study of the factors forming the money flow is of great theoretical and practical importance. From the point of view of the theory, knowledge of the factors is necessary for the understanding of the cash flow, of its structural dynamics, development of ways for optimization. From the practical point of view, knowing of complex of factors and causes, which have influenced (or will affect) the formation and dynamics of the cash flow, gives the opportunity not only to properly assess the results of the financial management of the enterprise, but also to adjust the cash flow to achieve the desired results.