Enterprise solvency management

The publication is devoted to the theoretical background and practical issues of solvency management. The authors view solvency management as one of the strategic tasks of corporate governance affecting the value of the firm. In the short term, it takes priority over yield management. The criterion of growth in the value of the enterprise is also crucial for the selection of a strategy for the management of net working capital and its components. In terms of profitability, the owners in particular prefer to minimise net working capital, which can lead to an increased risk of production bottlenecks and cash shortages. Therefore, the basic prerequisite for maintaining the solvency of the company is the estimation and management of risks and costs associated with the provision of trade credit, minimisation of inventories and cash, and exchange rate movements. Considerable attention is paid to assessing and minimizing the risk of incapacity, resp. customer unwillingness to repay trade credit, which is the most common reason for a shortfall in business revenue. Author
with this publication, they respond to the current problems of companies related to cash flow management and present the results of their research activities and practical experience.