Essence of the Company’s Current Assets, Strategies for Financing

Анотація

The article focuses on the present-day economic situation, which is characterized by instability and high dynamism of the external environment, mainly affecting the formation and use of assets by companies. General approaches to the allocation of the essence of circulating assets have been formed. In this context, their interpretation, main groups and characteristics are considered. It is determined that the essence of current assets is expressed through the relationships between the following groups of indicators: inventories and return on assets, accounts receivable and return on assets, as well as relations between cash together with cash equivalents and return on assets. On this basis, a structural and logical scheme of the policy of managing the current assets of the company has been built. This allowed to define that the policy of management of current assets of enterprise is a multiaspectual process that concerns the main directions of the policy of formation and financing of current assets. It is substantiated that the policy of managing current assets should ensure a compromise between the risk of liquidity loss and profitability. Three strategies for financing current assets are considered. A conservative strategy for managing current assets can correspond to a moderate or conservative type of current liability management policy, but not to an aggressive one. Any type of current liability management policy can be matched by a moderate current asset management policy. An aggressive current asset management strategy can be consistent with an aggressive or moderate current liability management policy, but not a conservative one. Understanding all the advantages and disadvantages of the strategies for financing current assets allows the company to improve production capabilities, financial position, work with certain types of current assets and ensure the dynamic growth of the company in the strategic perspective.

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