METHODOLOGY OF RESEARCH OF THE IMPACT OF THE COMPANY‘S CURRENT ASSET OF PERFORMANCE

Authors

  • Viktorija Rymavičiūtė Vytautas Magnus University Agriculture Academy

Keywords:

current asset management, inventory turnover ratio, cash turnover ratio, receivables turnover ratio, current asset management strategy, profitability

Abstract

The article examines the researchers' research on the interdependence of current assets and the company's profitability, the impact of changes in current assets on the company's performance and methods of current assets analysis to determine the efficiency and impact of current assets. A consistent methodological scheme has been developed, which provides analysis methods, turnover indicators, correlation analysis will allow to assess the efficiency of the company's current assets and the impact on operating results. After determining the relative weights of the balance sheet items of current assets in all current assets, the strategy of managing the current assets applied in the company will be determined. By modeling the scenarios of changes in the balance sheet items of current assets, it will be possible to determine whether the company's current assets are of optimal size and whether the applied current assets management strategy results in the best performance. Based on the research conducted, it is concluded that the current assets are managed and the optimal maintenance of their size results in the best performance results.

Published

2022-06-07

Issue

Section

Accounting and finance: challenges and opportunities