The Proposed Approach to Current Financial Requirement Management in Organizations of The Alcoholic Beverages

Abstract

Purpose: The aim of the article is to evaluate the turnover of current financial demand and the components underlying its calculation in alcoholic organizations listed on the international stock exchange and to propose a factor analysis and evaluation approach based on linear regression analysis, which will be considered as a new way to improve the financial management of working capital. Theoretical framework: This article presents an assessment of the use of working capital in alcoholic companies that are studied and listed on the world stock exchange, and offers practical solutions to improve the financial management of working capital. Design/methodology/approach: Within the framework of the research, we offer a new methodological solution for assessing the impact of the current financial requirement and the variables that determine it. First of all, the focus will be made from the point of view of interdependence in relation to income, based on which the turnover of the result indicator (CFR) and variables (AP, AR and I) in days is estimated. Findings: According to the results of the assessment in the companies Ambev S.A (Brazil), Anheuser-Busch (Belgium) and Diageo (UK), in the case of a change of division, the turnover of receivables (X1) and inventories (X3) has a positive effect on the turnover of current financial requirements, as well as the turnover of accounts payable per unit of change, has a negative effect on the liquidity of current financial requirements. It follows from the results of the analysis that for the companies under review, effective management of receivables and inventories is considered a key area of working capital management. Research, Practical & Social implications: During the study, we proposed a new methodological solution by conducting an assessment of working capital usage and factor analysis of the financial requirement of Ambev S.A (Brazil), Anheuser-Busch (Belgium) and Diageo (UK) companies involved in the production of alcoholic beverages in the world stock exchange. Originality/value: The scientific novelty of the study lies in the proposed approach to the evaluation of the index of current financial demand and turnover (in days) of its components (factors), as well as the marginal intervals of regulation.