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Finance and Credit
 

Exploring the cash flows of a transportation company

Vol. 23, Iss. 23, JUNE 2017

PDF  Article PDF Version

Received: 7 February 2017

Received in revised form: 4 April 2017

Received in final form: 18 April 2017

Accepted: 16 May 2017

Available online: 29 June 2017

Subject Heading: BUSINESS VALUE

JEL Classification: D01, G12, G30, G31, G32

Pages: 1364-1378

https://doi.org/10.24891/fc.23.23.1364

Shchurina S.V. Financial University under Government of Russian Federation, Moscow, Russian Federation
sv-valentinovna@mail.ru

Bushev A.E. OOO GEFCO, Moscow, Russian Federation
abushev@inbox.ru

Importance The article addresses practical aspects of cash flow planning in logistics business. The area is under-investigated, and this creates challenges in implementing certain measures to boost economic activity and improve financial performance.
Objectives The aim is to work out recommendations on efficient cash flow management of a transportation company.
Methods The study rests on generalization, analysis and synthesis, and methods of comparative analysis.
Results The analysis of the current state of OOO Gefco, a modern Russian transportation company, shows a decrease in solvency and financial stability due to increased debt financing of both the operating and investing activities. The specific features of cash flow management of the company require introducing inflation risks, liquidity risks and other financial threats into the financial model, which is dictated by significant adverse impact of external environment.
Conclusions Effective cash management of the Russian logistics service provider should be built on comprehensive schedule of activities to manage receivables and payables as they may not only help attract customers and increase revenues, but also have a negative effect on cash flows, the new system of payments priority and smoothing the company's cash flow destabilization.

Keywords: financial management, cash flow, liquidity, solvency, financial stability

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