Efficiency of working capital use of mining enterprises of Kryvbas

Abstract

Introduction. Today Ukrainian enterprises find themselves in a difficult financial situation due to the political crisis, lack of financial resources, the decline of the national currency, low purchasing power entities and other factors. Growth in the volume of receivables takes place on the basis ofreduction of material stocks, reduction of production volumes. Reduction of balances testifies not that much the high level of cash flows management as of the acute shortage of funds caused by inflation, non-payments crisis, imperfect tax policy. A significant reserve towards improvement of enterprises becomes the increase of the efficiency of working capital, which holds a significant share in the assets of the company.

Purpose. On tha basis of the assessment of efficiency of working capital of mining enterprises before and during the economic crisis in Ukraine, it is important to develop management system of working capital. Its implementation will increase the profitability of companies in the post-crisis period.

The method (methodology). We used methods and techniques of general economic and financial analysis, including horizontal and vertical analysis; analysis ratios; comparative (spatial) analysis, graphic display of information.

Results. The practical results that are obtained during the study solve the problems that have been set. We mean the development of  proposals for improving the efficiency of working capital mining companies of Kryvbas, the financial situation of which has been negatively affected by the political crisis in Ukraine.