♦ choosing the optimal level and rational structure of current assets, taking into account the specifics of the activities of each enterprise;

♦ determining the size and structure of their funding sources.

There are three types of policies for managing these assets: aggressive, conservative and moderate.

Signs of an aggressive policy are as follows:

♦ the company does not place any restrictions on increasing current assets;

♦ it accumulates stocks of raw materials and finished products, increases accounts receivable and free cash balances in bank accounts.

As a result, the share of current assets in the total volume of property is high (more than 50%), and their turnover period is long (over 90 days). An aggressive policy can reduce the risk of technical insolvency, but cannot ensure high profitability and turnover of current assets.

A characteristic feature of a conservative policy for managing current assets is that the enterprise restrains the growth of current assets and seeks to minimize them. As a result, the share of current assets in the total volume of property is small (less than 40%), and their turnover period is relatively short (50-60 days). The company pursues such a policy in a fairly specific situation, when sales volumes, timing of receipt of funds and payments for obligations, the required volume of inventories and delivery dates are known in advance, or when there is austerity of all types of resources. A conservative policy for managing current assets ensures high return on assets. However, it carries the risk of high technical insolvency due to unforeseen changes in the business situation in the commodity and financial markets.

A moderate policy for managing current assets occupies an intermediate position. It is characterized by an average level of profitability and turnover of current assets (Table 6.4). Each type of management of current assets must correspond to a certain policy for their financing, i.e. management of short-term obligations (liabilities). A sign of an aggressive policy for managing short-term liabilities is a significant (more than 50%) share of short-term loans and borrowings in the total amount of liabilities.

Table 4.

Signs and results of calculating indicators for various types of policies for managing current assets in OJSC

With such a policy, the company can increase the effect of financial leverage (leverage) to 30-50% of return on assets. However, fixed costs will also increase due to interest payments to lenders (banks). As a result, the impact of operating leverage (marginal income divided by operating profit) will increase, which may indicate an increase in not only financial, but also business risk associated with this enterprise.

A sign of a conservative policy for managing short-term liabilities is the absence or low share (no more than 30-35%) of short-term loans and borrowings in the currency of the balance sheet liability. In this case, non-current and current assets are covered by equity capital and long-term liabilities.

A sign of a moderate policy is the neutral share of short-term loans and borrowings in the liability currency of the balance sheet (within 35-45%). It should be noted that with a conservative policy for managing current assets, it may correspond to a moderate or conservative type of management of short-term liabilities. A moderate policy for managing current assets can correspond to any type of management of short-term liabilities. Finally, an aggressive policy for managing current assets may correspond to an aggressive or moderate type of management of short-term liabilities, but not a conservative one.

Each of the listed types of current asset management policy must be matched by a corresponding financing policy, i.e. management of current liabilities.

Sign aggressive current liability management policy is the absolute predominance of short-term credit in the total amount of all liabilities. With this policy, the enterprise's level of financial leverage increases. Fixed costs are aggravated by interest on the loan, the impact of the production lever increases, but still to a lesser extent than with the predominant use of a more expensive long-term loan, as is usually the case in the case of choosing a conservative policy for managing current liabilities.

Sign conservative policy for managing current liabilities serves as the absence or very low share of short-term credit in the total amount of all liabilities of the enterprise. Both stable and unstable assets are financed mainly through permanent liabilities (equity and long-term loans and borrowings).

Sign moderate policy for managing current liabilities serves as a neutral (average) level of short-term credit in the total amount of all liabilities of the enterprise.

The compatibility of various types of policies for managing current assets and policies for managing current liabilities is shown in the matrix for choosing a policy for integrated operational management of current assets and current liabilities.

The matrix shown in table 1. shows that:

A conservative policy for managing current assets may correspond to a moderate or conservative type of policy for managing current liabilities, but not an aggressive one;

A moderate policy for managing current assets can correspond to any type of policy for managing current liabilities;

An aggressive policy for managing current assets may correspond to an aggressive or moderate type of policy for managing current liabilities, but not a conservative one.

Table 1. Integrated Operations Management (IOC) Policy Selection Matrix

Current assets and current liabilities.

Current liability management policy	Current asset management policy
Conservative	Moderate	Aggressive
Aggressive	Doesn't match	Moderate PCOU	Aggressive PCOU
Moderate	ModeratePCOU	Moderate PCOU	Moderate PCOU
Conservative	Conservative PCOU	Moderate PCOU	Doesn't match

Methods for managing working capital of an enterprise

Management of an enterprise's working capital involves solving strategic and tactical issues.

Table 2 summarizes what can be done to change SOS and the ways in which this can be achieved.

Table 2. Strategy and tactics of working capital management in terms of increasing SOS.

Table 3 reflects similar information regarding regulation of the TFP value.

Table 3. Strategy and tactics of working capital management in terms of reducing TFP.

Enterprise strategy to reduce TFP	Enterprise tactics (methods) to reduce TFP
Reduce current assets	- maintaining ideal inventory levels
Reduce accounts receivable	- bill accounting - factoring - spontaneous financing (discounts for buyers for reducing payment terms)
Increase accounts payable	- calculation of the reasonable duration of deferred payments for supplies of raw materials (services of other organizations) and sales of finished products (services)
Reduce the turnover period of working capital	- reduction in inventory turnover period - reduction in accounts receivable turnover period - increase in accounts payable turnover period

The essence of this policy is, on the one hand, to determine a sufficient level and rational structure of current assets, taking into account that organizations of various fields and scales of activity have unequal needs for current assets to maintain a given volume of sales, and on the other hand, to determine the size and structure sources of financing for current assets.

If an organization does not put any restrictions on increasing current assets, holds significant cash, has significant reserves of raw materials and finished products and, stimulating buyers, inflates accounts receivable, the share of current assets in the total amount of all assets is high, and the turnover period of working capital is long. , are signs aggressive current asset management policy, which in the practice of financial management has received the apt name “fat cat”. An aggressive policy can remove the issue of increasing the risk of technical insolvency from the agenda, but cannot ensure increased economic profitability of assets (Table 2, Appendix 5).

If an organization in every possible way restrains the growth of current assets, trying to minimize them - the share of current assets in the total amount of all assets is low, and the turnover period of working capital is short - this signs of a conservative policy for managing current assets. Organizations pursue such a policy either in conditions of sufficient certainty of the situation, when the volume of sales, the timing of receipts and payments, the required volume of inventories and the exact time of their consumption, etc. known in advance or if the strictest savings are necessary on literally everything. A conservative policy for managing current assets ensures high economic profitability of assets (Table 2, Appendix 5), but carries an excessive risk of technical insolvency due to the slightest hitch or error in calculations, leading to desynchronization of the timing of receipts and payments of the organization.

If an organization adheres to a “centrist position”, then it is moderate policy for managing current assets. Both the economic profitability of assets, the risk of technical insolvency, and the turnover period of working capital are at average levels.

Each type of current asset management policy corresponds to a specific financing policy, i.e. current liabilities management policy.

A sign of an aggressive current liability management policy is the absolute predominance of short-term credit in the total amount of all liabilities. With this policy, the organization’s level of financial leverage increases. Fixed costs are aggravated by interest on the loan, the impact of operating leverage increases, but still to a lesser extent than with the predominant use of a more expensive long-term loan, as is usually the case when choosing a conservative policy for managing current liabilities.

A sign of a conservative policy for managing current liabilities- absence or very low share of short-term credit in the total amount of all liabilities of the organization. Both stable and unstable assets are financed mainly through permanent liabilities (equity and long-term loans and borrowings).

A sign of a moderate policy for managing current liabilities- neutral (average) level of short-term credit in the total amount of all liabilities of the organization.

The compatibility of various types of policies for managing current assets and current liabilities is shown in table. 3, adj. 5.

The matrix shows that:

A conservative policy for managing current assets may correspond to a moderate or conservative type of policy for managing current liabilities, but not an aggressive one;

Moderate current asset management policy - any type of current liability management policy;

An aggressive policy for managing current assets is an aggressive or moderate type of policy for managing current liabilities, but not a conservative one.

The ratio of sources of financing of current assets has a decisive influence on the change in the size of net working capital. If, with a constant volume of short-term financial liabilities, the share of current assets financed from own sources and long-term borrowed capital increases, then the size of net working capital will increase. Naturally, in this case, the financial stability of the organization will increase, but the effect of financial leverage will decrease and the weighted average cost of capital will increase as a whole (since the interest rate on long-term loans, due to their greater risk, is higher than on short-term loans). Accordingly, if, with the constant participation of equity capital and long-term loans in the formation of current assets, the amount of short-term financial liabilities increases, then the amount of net working capital will decrease. In this case, the overall weighted average cost of capital can be reduced, a more efficient use of equity capital can be achieved (due to an increase in the effect of financial leverage), but at the same time the financial stability and solvency of the organization will decrease (the decrease in solvency will occur due to an increase in the volume of current liabilities and an increase in the frequency debt payments).

Thus, the choice of appropriate sources of financing current assets ultimately determines the relationship between the level of efficiency in the use of capital and the level of risk of the financial stability and solvency of the organization. Taking these factors into account, a policy for managing the financing of current assets is developed.

One of the main tasks facing the company is choosing a policy for managing current assets in order to increase the efficiency of their use.

A shortage of one or another type of current assets is always some risk for a company, which it must insure through the formation of reserves. A correctly chosen strategy (policy) for managing current assets allows you to compensate for these risks, providing justification for the size of insurance reserves. The amount of the minimum required inventory requirement, the accounts receivable limit, and the optimal cash balances in the company’s accounts will depend on this.

Thus, the essence and purpose of the policy for operational management of current assets is, on the one hand, to determine a sufficient level and rational structure of this type of asset and to establish the optimal structure for their financing, on the other.

There are three main types of a company's working capital management strategy: aggressive, moderate and conservative. Within each of them, the amount of working capital is regulated and a certain ratio of profitability and risk is achieved.

Aggressive strategy (“fat cat”) assumes that there are no restrictions on increasing current assets. The company forms inflated volumes of insurance and reserve reserves, pursues a strict policy of providing credit, and stores large insurance balances of funds in accounts. At the same time, the share of current assets in the balance sheet currency is high, and the turnover period is quite long.

From the point of view of the ratio of profitability and risk, the threat of technical insolvency, production stoppages is minimized, and losses from bad receivables are minimal. However, the profitability of current assets decreases, the level of sales is relatively low, and therefore the competitiveness of the product decreases.

Conservative strategy ("stingy and lean") is aimed at curbing the growth of current assets. It is characterized by the presence of a minimum amount of inventory (just-in-time deliveries), a flexible lending policy, storage of a standard cash balance, and investment of available funds in highly liquid securities. In this regard, the share of current assets in the company's total assets is low, and their turnover rate is high. When choosing this strategy, the company shows maximum profitability, but the likelihood of an increase in the share of doubtful (overdue) debts in accounts receivable increases, the risks of stopping production due to a lack of inventory are high, situations of current insolvency cannot be ruled out (for example, in connection with attracting additional short-term financing ).

Such a policy in relation to current assets can be afforded by a company operating in conditions of sufficient certainty, having long-term effective contracts with reliable partners, when the timing of receipt of payments, the required volumes of inventories, etc. are known in advance. Another situation is the need to introduce a regime of strict savings.

Moderate strategy (“centrist position”) - a restrained policy for managing current assets: the formation of reserves in case of typical failures, standard terms of delivery and payment, the formation of small cash reserves (determined by calculation). The risks of insolvency, a drop in the turnover rate of current assets, as well as their profitability are at an average level.

Current assets are formed mainly from short-term sources; accordingly, each type of policy for managing current assets corresponds to a policy for their financing, i.e. management of current liabilities.

A sign of an aggressive policy for managing current liabilities is the predominance of short-term loans and borrowings in the total amount of liabilities. The consequence of this choice will be a high effect of financial leverage, but fixed costs will increase due to the amount of interest on the loan, which will entail an increase in the impact of operating leverage.

A conservative policy for managing current liabilities directs managers to finance activities primarily from their own funds and partly from long-term liabilities; At the same time, the share of short-term liabilities in the balance sheet currency is small.

Moderate policy is characterized by the presence of a neutral (average) level of short-term lending.

The practical experience of companies has revealed a certain compatibility of various policies for managing current assets and current liabilities.

An aggressive strategy for managing current assets corresponds to an aggressive or moderate type of policy for managing current liabilities.

A conservative strategy for managing current assets is combined with a moderate or conservative type of policy for managing current liabilities.

A moderate strategy for managing current assets corresponds to any type of policy for managing short-term liabilities.

Below is a comparative description of various working capital management strategies (Table 10.3).

Thus, the working capital management strategy should provide a solution to the previously formulated problem - achieving a compromise between the risk of loss of liquidity and the efficiency of the company. The theory of financial management offers various options for reducing risks: minimizing total financing costs through the use of cheaper sources, reducing accounts payable, etc.

The question remains: what should company managers be guided by when choosing alternative working capital management strategies?

Firstly, one should take into account the influence of various factors on the volume and structure of current assets (discussed earlier).

Table 10.3.

But one of the most significant criteria is the business development strategy chosen by the company as a whole. Below is an illustration of the most popular strategies within the framework of financial projection and changes in working capital management policies depending on the chosen strategic goal (Fig. 10.2).

As noted, the modern financial model focuses a company on maximizing its fundamental value. In this case, the working capital management process is integrated into the overall financial strategy of the company and, therefore, any decisions in this area,

Rice. 10.2.

that contribute to increasing the value of the company will be considered appropriate.