Liquidity Management in Times of Global Uncertainty: Contemporary Approaches to Working Capital Analysis and Forecasting
Liquidity Management in Times of Global Uncertainty: Contemporary Approaches to Working Capital Analysis and Forecasting

Author(s): Tsvetomir Manolov
Subject(s): Economy, National Economy, Business Economy / Management, Accounting - Business Administration, ICT Information and Communications Technologies
Published by: Икономически университет - Варна
Keywords: financial analysis; working capital; cash flow optimization; corporate resilience; financial stability
Summary/Abstract: In the context of growing global economic instability, liquidity management has emerged as a critical determinant of organizational resilience. The purpose of this article is to present the theoretical foundations of liquidity management, analyze contemporary approaches to working capital assessment, and synthesize recent research developments in the field. The study conducts a systematic review of the literature, focusing on both developed and developing economies, and incorporates findings from academic publications and empirical studies. The analysis reveals contrasting trends: a marked deterioration in the cash conversion cycle in 2023—when, for the first time in a decade, all key indicators declined simultaneously—followed by a 4% improvement in 2024. The article integrates up-to-date data from 2023–2024 into the theoretical framework, thereby systematizing the latest insights into the effects of global instability. The findings suggest that effective liquidity management requires the integration of both traditional and modern approaches, including stress testing, scenario analysis, and probabilistic modeling. The proposed integrated model provides financial managers with practical tools for optimizing working capital under conditions of heightened uncertainty.

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