Analiza wolnych przepływów pieniężnych jako element oceny zagrożenia upadłością małych i średnich przedsiębiorstw
Analysis of Free Cash Flows as the Element of the Hazard Assessment of the Bankruptcy of Small and Average Enterprises

Summary/Abstract: Objective – The purpose of this article is to present an assessment of net cash flows. In the context of today’s applied methods and tools in financial analysis. In particular: indicator analysis, advanced statistical methods used to predict bankruptcies or valuation of an enterprise (especially using profitable valuation methods). Methodology of the study – The methodology of the study was based on literary studies and free cash flow analysis for small and medium enterprises. Of which 10 continued to operate, and 10 were declared bankrupt by the Court. Result – The study shows that changes in sales (net operating income) have a significant impact on the direction of changes in free cash flows. Similar dependencies are noticeable in relation to changes in the level of net working capital relative to changes in free cash flows, and consequently it is affected by min. On the valuation of the enterprise value. Originality/value – Investing in the direction of changes in sales levels and net working capital can provide interesting and important implications for potential impacts on change directions. In free cash flow. Knowledge of the direction of changes in cash flows has a significant impact on the value of an enterprise and the assessment of bankruptcy risk.

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