E3S Web Conf.
Volume 159, 2020The 1st International Conference on Business Technology for a Sustainable Environmental System (BTSES-2020)
|Number of page(s)||8|
|Section||Chapter 4: Industry, Innovation, and Infrastructure|
|Published online||24 March 2020|
Overview of actions to strengthen financial stability of companies
Al-Farabi Kazakh National University, al-Farabi Ave. 71, 050040 Almaty, Kazakhstan
* Corresponding author: email@example.com
Based on a review of the recommendations of various scientists, the article presents measures to strengthen the solvency and financial stability of companies in various fields of production. These include effective receivables management, accelerated capital turnover, increased profits and cash flow. The article reveals the concept of financial stability as the main criteria of the company’s financial condition. As well the negative aspects of the financial condition of companies are discussed. All negative factors divided into three groups based on their characteristics: general economic factors, state factors, and market factors. The model of accounts receivable management, which includes three stages is presented. It is concluded that a high share of accounts receivable as part of assets can lead any company to loss of solvency. Ways to improve the structure of funding sources, aspects of increasing return on capital are considered. Several recommendations given to reduce the duration of capital turnover in order to increase the company’s solvency. As a factor of increasing profits a possible ways of minimizing costs are investigated. Ways of increasing production volumes are highlighted and described, measures to increase cash flow are analyzed. Considerable attention is paid to the irrational management of cash flows.
© The Authors, published by EDP Sciences, 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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