EFFICIENCY OF THE FINANCIAL MANAGEMENT OF THE MODERN ORGANIZATION

Abstract

The relevance of the issue of the prospects for the development of financial management is due to the need for financial entities to look for ways to increase the level of forecasting stability in their activity in the conditions of instability in the temporary economic situation.In particular, it includes the implementation of both capital structure financing decisions and decisions on: profit growth policies; tactical financing policy such as initial public offering, financial restructuring and debt financing; short-term financial management, such as cash, inventory and receivables and others.In this regard, the main theoretical concepts for the formation of the financial policy of financial entities have been identified, by considering a certain temporary economic situation - after the Covid crisis and the subsequent inflation.The financial expression of the effectiveness of the applied financial management in the specified situation was examined.This implies determining the main categories of quality activity of financial structures.For this purpose, the definitions of the effectiveness and efficiency of financial management have been derived and adapted. The main differences in the two meaningful concepts, evaluating the activity of financial institutions, through a system of criteria and indicators, are specified.In addition, a research model is presented - a regression analysis of the inflation of the Republic of Bulgaria with a duration of 18 months and a regression equation is derived.A forecast of the inflationary trends of a type common to the country's economic entity with a duration of 6 months was carried out.On this basis, a method for determining the inflation coefficient has been derived, using a first-order equation and the slope, the tangent of the angle made with the abscissa axis and a certain point from the estimated inflation graphic part. With the help of financial mathematics, a practical example of applying strategies of financial entities to determine the effectiveness and mainly the efficiency in reaching the desired state of the said entity was solved.Conclusions and recommendations are made for reactions of a type of financial entity to reduce the negative consequences of sudden changes and sharp fluctuations of the business environment in the current temporary financial situation.