In order to ensure the
companies’ financial sustainability in current economic conditions, a successful
management of the current assets is crucial. In practice, it is quite often
observed that the decisions related to the current asset management in Latvian
companies are made with the short-term perspective, without appropriate
analysis. Though, an efficient management of working capital is a vital condition
to increase the company’s profitability. The aim of the article is to explore
the opinion and attitude of the companies’ management regarding the practical
aspects of the current asset management, as well as to explore the actual
situation in the companies. The expert survey, correlation analysis and factor
analysis, as well as Kaiser – Meyer –
Olkin and Bartlett’s test were
used in the research; the current asset management tendencies were assessed and
their impact on the performance of the Latvian companies was identified. In the
result of factor analysis, the main factor groups affecting the results of the current
asset management in companies were identified.
Citation:
Arbidane, I., & Puzule, A. (2022). Current asset management methods and their application: Case of Latvia. ASERC Journal of Socio-Economic Studies, 5(2), 89-104. DOI:10.30546/2663-7251.2022.5.1.89