Modeling and Management of Power Supply Enterprises’ Cash Flows

Darya Pyatkina, Tamara Shcherbina, Vadim Samusenkov, Irina Razinkina and Mariusz Sroka
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Darya Pyatkina: Department of Applied Informatics and Probability Theory, Peoples’ Friendship University of Russia (RUDN University), 117198 Moscow, Russia
Tamara Shcherbina: Department of Corporate Finance and Corporate Governance, Financial University under the Government of the Russian Federation, 115583 Moscow, Russia
Vadim Samusenkov: Department of Prosthetic Dentistry, The State Education Institution of Higher Professional Training, I.M Sechenov First Moscow State Medical University, 119991 Moscow, Russia
Irina Razinkina: Department of Management and Innovation, Financial University under the Government of the Russian Federation, 115583 Moscow, Russia
Mariusz Sroka: Faculty of Management, Technical University of Czestochowa, 42-201 Czestochowa, Poland

Energies, 2021, vol. 14, issue 4, 1-17

Abstract: The purpose of the study is to assess the efficiency of cash flow management at power supply companies of the CIS (Commonwealth of Independent States) countries. A methodological approach to cash flow forecasting with the use of linear and polynomial regression has been developed. The study is based on the data provided by 12 power supply companies operating in CIS member countries. Forecasting based on the generated polynomial models of multiple regression of cash flow for the power supply companies under study confirms the strong possibility of extrapolating the studied trends to future periods. Compared to the linear model, the polynomial one confirms higher values of the determination coefficients for the majority of power supply companies. The projected volumes of cash inflow, cash outflow, and net cash flows of power supply companies with the application of the described polynomial multiple regression models have a fairly high degree of approximation. The correlations between operating cash flows and outflows, between total cash inflow and outflow of the majority of power supply companies are high. The low level of synchronization between cash inflows and outflows of the companies under study is associated with the specifics of their financial and investment activities and the cash flow management policy. It has been proven that energy enterprises’ financial stability significantly depends on the synchronization and uniformity of cash flows. The proposed methodological approach allows identifying enterprises by the criterion of riskiness from the standpoint of the synchronization and homogeneity of their cash flows.

Keywords: forecasting; linear regression; planning; polynomial regression; power supply (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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