Przepływy pieniężne w zarządzaniu finansami przedsiębiorstw
Cash flow in the management of fi nancial enterprise
Zeszyty Naukowe SGGW - Ekonomika i Organizacja Gospodarki Żywnościowej, 2009, vol., nr 78, s. 248-260
The study presents the importance of cash flow in the management of financial enterprise. Cash flow is used for management of liquidity, bankruptcy prediction and credit risk assessment. The ratio analysis in research based on cash flow complements information about the financial situation and regards to cash approach. The traditional indexes calculated on the basis of data from the balance sheet and income statement do not provide complete information about the financial situation of the enterprise. This reflects from financial results which are considered as non-cash transactions, such as depreciation. Cash flow rules emphasized the importance of cash in a free market economy. The enterprise could generate the profit but due to the lack of liquidity it goes bankrupt. It is not mandatory for all enterprises to draw up the cash flow statement. For this reason, the analysis of cash flow is often ignored.