Modern approaches to definition of essence of cash flow and their role in the assessment of the financial condition of the organization

Abstract

The relevance of the study is determined by the increased role of cash flows in assessing the effectiveness of management of companies. A critical analysis of existing approaches to understanding the nature of cash flows, the methodology of its formation, recommendations aimed at streamlining the conceptual framework and improving the methodology for calculating net and free cash flows. The author proposes the definition of cash flows from the standpoint of their diversity and evaluation capabilities, a comparative assessment of the analytical capabilities of cash flows calculated by direct indirect methods.