FOREIGN AND DOMESTIC EXPERIENCE IN MANAGING CURRENT ASSETS

Abstract

Current assets form the material and financial basis of current activities, determine the level of liquidity, solvency and financial stability of business entities. Inefficient management of current assets is manifested in excessive accumulation of inventories, growth of overdue receivables, slowing down of capital turnover, which negatively affects the financial results of the enterprise and increases the need for additional financing. At the same time, an insufficient level of current assets can cause disruption of the production process, a decrease in sales volumes and loss of competitive positions in the market. The article generalizes theoretical approaches and practical tools for managing current assets (inventories, accounts receivable, cash, and other current assets), and compares foreign and domestic (Ukrainian) experience in organizing such management. The relevance of the study is обусловed by the need to enhance the efficiency of current asset management in enterprises under conditions of financial instability and limited resources. The research employs methods of systematization and generalization, comparative analysis, a structural-logical approach, and financial analysis techniques. The economic essence of inventory management, accounts receivable management, cash management, and management of other current assets is examined. The role of liquidity and efficiency indicators, in particular the Cash Conversion Cycle (CCC), is revealed. Working capital financing policies (conservative, aggressive, and maturity matching) are characterized, along with modern practices such as Supply Chain Finance (SCF), factoring, dynamic discounting, digitalization, and risk management. The specific features of applying modern management tools, including Supply Chain Finance, factoring, and dynamic discounting, as well as the impact of financial process digitalization, are identified. The scientific novelty lies in the systematization of foreign and Ukrainian experience and the substantiation of directions for adapting international practices to the operating conditions of domestic enterprises. The practical significance of the obtained results consists in the possibility of their use for optimizing the structure of current assets and enhancing the financial stability of enterprises. Based on a review of scientific literature and the regulatory framework, recommendations for Ukrainian enterprises are formulated.