Abstract

The article analyzes the theoretical essence of formation and use of enterprise’s financial resources. Our country is in conditions of economic instability caused by various destructive factors. In this regard, domestic enterprises are increasingly faced with the problem of insufficient financial resources and sources of its formation. The situation is exacerbated by a reckless approach to the use of these resources. In fact, inefficient formation and use of financial resources is an urgent problem. Therefore, there is a need to research the theoretical foundations of the formation and use of financial resources of the enterprise as a basis for effective functioning in the current circumstances. The article proves that the formation and use of financial resources is an important component of the overall system of enterprises’ financial management. Also it describes the essence of the term "financial resources of the enterprise" by considering various scientific approaches to the interpretation of this category. Our own interpretation of this term was formed. In addition we emphasized the distinction between the categories of "financial resources" and "cash". The article contains explanation theoretical basis of the financial resources formation, focusing on the sources, which are divided into internal and external. Besides the article highlights the main areas of use of funds and finds a reasonable classification by types of assets and types of expenditures. There are the main indicators for assessing the effectiveness of the use of financial resources of the enterprise are outlined, which include analysis of the dynamic and structure of funds and the ratios of financial stability, liquidity, business activity and profitability. A number of problems that impede the smooth running of economic activities have been identified. Recommendations for improving the quality of formation and use of financial resources of a corporate enterprise have also been developed. Ensuring careful control over the formation and use of enterprise’s financial resources is a prerequisite for its effective operation.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.