Organizational Aspects of Increasing the Cash Flow of Joint-Stock Companies

This article presents the increase in free cash flow of securities companies. Free cash flows of joint stock companies show how effectively working capital is used. Moreover, if free cash flow in a company’s activities decreases due to an increase in working capital, this means that joint-stock companies ineffectively use working capital when purchasing low-income assets. The article discusses the use of theories of domestic and foreign economists regarding the calculation of free cash flow.

The free cash flows of the joint stock companies “Andijandonkhusulot”, “Andijan Regional Electric Grid Enterprise” and “Kokan Mechanical Plant” selected in the study were analyzed and it was revealed that changes in fixed capital (Bc), working capital (Wc) and depreciation expenses (De) are interdependent. There was a doubling of the free cash flows of the companies in question. An analysis of the balance sheet of Andizhondonkhusulot JSC for 2017-2021 and the dynamics of net reinvestments of joint-stock companies were carried out.

The author clarifies that when determining the free cash flow of joint stock companies, the company's EBIT indicator is used after taking into account operating income and paying taxes.

Based on the results of the study, important aspects of increasing a company's free cash flow are highlighted.

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