Liquidity Management Company

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Thus, the term "liquidity" comes from the Latin word for the fluidity of the liquid.Thus, we can conclude that the liquidity of the company characterizes its movement, movement.And to be precise, the assets of the entity's ability to track and mobilization.The greatest development of the concept of "liquidity management enterprise" has received in the second half of the last century, and it is associated with the development of the banking system.It was then that, due to the unprofitability of many state-owned banks and the emergence of a large number of commercial, began to actively develop the bank's liquidity management practices.

Currently, the term liquidity and liquidity management and are used in relation to such economic entities as a commodity, money, market, enterprise, balance sheets, etc.Within the designated applications liquidity is a certain relationship started to correct implementation of cost sharing (eg, goods and money).At the same time liquidity in this case is the ability of advanced value after some time back.With high liquidity repayment period is reduced.

In the case of enterprise liquidity - the ability of the company to react promptly to changes in the financial (problems and prospects), sufficient assets to repay short-term loans by transferring the assets into cash, as well as the ability to increase assets in the event of sales growth in the enterprise.

Liquidity and solvency of the company

is no doubt that the successful development of the enterprise is the competent management of its finances.A very significant part of the financial management - an analysis of financial stability.Timely detection of financial problems, search for possibilities to eliminate them, as well as to strengthen the financial state - this is the liquidity management of the enterprise.The analysis allows us not only to evaluate the existing problems, but also to define the strategy for further development, to build realistic plans, monitor their implementation, and evaluate the results and prospects of the company.

In modern Russia, the financial analysis and liquidity management of the enterprise in the private sphere, and at the national level is quite low, due to lack of education of domestic experts and little experience of financial analysis in the state as a whole.

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

One of the most important components of the liquidity management of the enterprise is an analyst of financial statements.The analysis goes in several directions.

Horizontal method of research - a comparison with the previous period for each item reporting.It allows you to not only keep track of changes, but also to predict the trends of growth or decrease.Vertical analysis allows us to determine the proportion of certain expenditure items in the financial statements of one period.Trend method of research by examining each item in the financial statements reveals some general trends and create a forecast.Also, we calculate coefficients, which allows you to make comparative analysis of the positions.

The methods of liquidity management companies are:

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

liquidity management of the enterprise assumes this arrangement of finance companies, which will enable, if necessary, to quickly pay off the liabilities.