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Etelka KATITS: Managing a Successful Corporate Turn: Back on the Road to Growth – Annual Control Points for Sustainable Management

As sustainability is a driver of growth and value, it can be an acceptable and reasonable goal even at the time of growth. How to manage sustainably, how to grow sustainably, how to create sustainable corporate value? All of this is part of sustainable corporate finance (Katits, 2021). The Figure-1 below highlights an application from this.

Figure-1. On the growth path in the name of sustainability

Source: Own editing

 

The control points were established taking into account the implementation of sustainable growth-financing-income generation-liquidity. How? – By comparing the sustainable growth rate (Chandra, 2020, Katits, 2017, Van Horne–Waczhowicz, 2008) and the need for additional financing, we can make a decision on the financing structure and method, and knowing this, we can derive the (operating, net and retained) income levels. Sustainable management requires a regular and smooth cash flow and payment transactions order to meet obligations on time and to finance activities, so we recommend that the liquidity plan and its control be prepared from a payment transactions and operating cash flow approach. If you want to keep the company’s sustainable management under monthly control, we compare the monthly balance of the liquidity plan with the working capital need, and if it is also available in the form of cash, the operation is sustainable.

Bibliography:

CHANDRA, P. (2020) Strategic Financial Management – Managing for value creation. New Delhi: McGraw Hill, 498 p. ISBN: 9789389957822.

KATITS, E. (2017): Haladó vállalati (életciklus) pénzügyek – Pénzügyek változ(tat)ások idején. Sopron: Soproni Egyetem Kiadó, 486 p. ISBN: 978963334306.

KATITS, E. (2021): Az életciklus-, a turnaround- és a fenntartható vállalati pénzügyek elhatárolása és összekapcsolása – eredmények és kihívások

In: Kovács Tamás, Szóka Károly (szerk.)

XV. Soproni Pénzügyi Napok „Fenntartható gazdaság – fenntartható pénzügyek” pénzügyi, adózási és számviteli szakmai és tudományos konferencia: Konferenciakötet, 349 p.

Konferencia helye, ideje: Sopron, magyaroroszág, 2021. 09.29.-10.01.

SOPRONI FELSŐOKTATÁSÉRT ALAPÍTVÁNY, Sopron, 2021, pp. 178-200.

ISBN: 9786158023078.

https://drive.google.com/drive/folders/1k1jag1cObg2Mo-YXkWkEa20TOLNxxCPO?usp=sharing

VAN HORNE, J. C.–WACZHOWICZ, J. M. (2008): Fundamentals of Financial Management. Harlow: Pearson Education, 744 p. ISBN: 9780273713630.

 

www.kenf.hu

 

 

 

 

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