Liquidity management of an industrial enterprise[Управление Ликвидностью Производственного Предприятия]

The key scientific and practical problem that determines the relevance of this study is the presence of “weak zones” in the liquidity management of industrial enterprises, most of whose assets are enclosed in fixed assets, which are most difficult to convert into cash. As a result, there are solvency risks. This problem is relevant even for profitable and competitive industrial companies. Therefore, it is necessary to find tools to improve the efficiency of managing the liquidity of industrial enterprises using their industry advantages. Specific scientific task: to analyze the liquidity of one of the most successfully developing machine building enterprises in the Kemerovo region and Siberia – JSC “KORMZ” – and develop recommendations to improve the company’s liquidity management based on the identified problem areas. The recommendations presented are highly likely to be applicable to other machine-building enterprises. The methodological base of the research is represented by standard tools used to assess the company’s liquidity and its balance sheet such as coefficient analysis, comparison of integral indicators for individual asset groups, grouping and summarizing enterprise reporting data, horizontal and vertical analysis, analysis and synthesis of empirical data. The results of the study allowed us to conclude that the overall liquidity of the balance sheet and solvency of JSC “KORMZ” is quite high, which indicates that the company is well provided with liquid assets to repay current liabilities. The author identified a number of problem areas of company development: the decline of the most liquid assets – financial investments cash and cash equivalents; the predominance of short-term funding sources over long term; conservation of dependence on borrowed funds; there is no growth in the company’s revenue in nominal terms and its decline in real terms (taking into account inflation). These problems are typical for the machine-building industry. The text contains recommendations on how to eliminate the identified problem areas in the company’s liquidity management.