Home  Journals  Finance and Credit  9(825) - 2022 September

Strategic functions of current assets: Financial analytics

Received: 26 February 2019

Received in revised form: 15 March 2019

Accepted: 31 March 2019

Available online: 29 September 2022

Subject Heading: BUSINESS VALUE

JEL Classification: G17, G30, G32

Pages: 2119—2147

https://doi.org/10.24891/fa.12.3.248

Subject. The article considers economic relations in the organization of internal business processes associated with investment of financial resources in operating current assets under limited budget for strategic development.
Objectives. The purpose of the study is to present analytical tools for solving problems that ensure the functioning of working capital in the system of strategic financial management.
Methods. The study draws on basic and modern concepts of financial management, current assets, performance management, modern theories of finance, like the theory of bounded rationality, Balanced Scorecard.
Results. We present an approach to developing a strategy for current asset management. Target indicators and methods to achieve them are given in operational terms and integrated into the invested capital management model. The procedures for calculating an increase in current asset requirements and the level of investment from various sources rest on the distribution function of strategic finance of the organization.
Conclusions. The offered approach to the choice of analytical methods for solving financial problems facilitates the implementation of strategic functions of current capital in line with the goals of modern management to increase the company value.

Keywords: working capital, cash flow from operations, net working capital, net long-term financing, liquidity ratio

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