Indicator Of Intra-Network Turnover Value In Corporation’s Fund Network

Abstract

The corporation's fund network is one of innovative methods of financial turnover management. One of the most relevant procedures of this method is to determine the size of separate segments of the fund network, in particular, its intra-network turnover. This segment includes four financial flows that implement the corporation’s target function and form a closed loop. The purpose of the article is to develop an indicator characterizing the value of the intra-network turnover. The complexity of the problem is caused by the fact that each of the intra-network flows has different value (module). The authors presented three of the most realistic variants of indicator design. On the basis of a comparative analysis of these options they have proved the expediency of determining the intra-network turnover value by the smallest module of its flows, given the formula for determining the indicator. As its name it is proposed to take “value of ordinary activity”. The authors consider the indicator’s significance for corporate finance management. It can not only most objectively reflect the value of the intra-network turnover, but also localize the flow which is the most problematic segment (“bottleneck”) of the intra-network turnover and characterize its output. Comparison of the value of ordinary activities with the modules of remaining intra-network flows allows us to determine additional work performed by the corporation in each phase of its financial turnover. This work is proposed to be considered as losses, as well as reserves for improving the financial turnover management.

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Publisher

European Publisher

First Online

25.09.2021

Doi

10.15405/epsbs.2021.09.02.241

Online ISSN

2357-1330