Economica (Dec 2023)

USE OF TRADE RECEIVABLES AND PAYABLES ANALYSIS IN THE DECISION-MAKING PROCESS

  • Svetlana MIHAILA,
  • Violeta CODREAN,
  • Nicolai JIERI

DOI
https://doi.org/10.53486/econ.2023.126.032
Journal volume & issue
Vol. 4, no. 126
pp. 32 – 43

Abstract

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Under the current conditions of the global market economy, effective analysis and management of trade receivables and debts requires strategies aimed at improving results. Monitoring of trade receivables and payables therefore requires increased attention in order to avoid excessive growth in receivables and payables, which would increase the risk of bankruptcy. Thus, the entity’s management must have reliable and relevant information on the economic and financial situation in order to keep the entity’s receivables and payables at an optimal level. This research emphasises the importance of analysing trade receivables and payables and the need for their proper management to improve the entity’s financial position and performance. The methodological approach of the paper involves the use of methodological and statistical-mathematical tools characteristic of the social sciences.

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