Analysis of Cash Flows of Manufacturing Companies Over the Last 3 Years in Working Capital Management Process

Abstract

  Relevance: Currently, working capital plays a crucial role in ensuring business profitability. Market uncertainty, changes in the economic environment, and intensified competition make working capital management a complex task. Enterprises are compelled to adapt to these changes to mitigate financial risks and ensure stability. Determining the time value of cash, accounts receivable, inventory, and finished goods in working capital management considering inflation is important for accurately assessing the actual value of these assets and liabilities in conditions of changing purchasing power. This allows companies to make informed decisions regarding financial resource management, reduce loss risks, and optimize asset utilization.

  Research Problem: In working capital management, what is the relevance of the time value of cash, accounts receivable, inventory, and finished goods?

  Overall Research Objective: To study the methods and approaches for determining the time value of cash, accounts receivable, inventory, and finished goods in the process of working capital management to enhance enterprise financial management efficiency.

  Duties:

• Cash flows in working capital management;
• Accounts receivable in working capital management;
• Inventory in working capital management;
• Determination of the time value of finished goods;
• Analysis of the state of a specific domestic company over the last 3 years.

The research objects are domestic companies in Kazakhstan. In the contemporary market environment, effective working capital management is an integral part of any enterprise's success strategy. For companies like Kazakhmys JSC, KazAzot JSC, and Caspian Oil JSC, optimal management of cash, accounts receivable, inventory, and finished goods becomes a primary factor in achieving financial stability and competitiveness in the market.

  The subsequent part of the paper proposes a detailed analysis of the cash flows, accounts receivable, inventory, and finished goods of each company over the specified period to identify trends, problematic areas, and potential avenues for improving working capital management.