The main factors that affect the size of the balance of the Company's cash assets:

• the nature of the Company's activities
• possible costs associated with the storage of funds
• inflation rate
• availability of highly liquid assets
• loan opportunity
• cost of lending
• economic conditions
• relations with suppliers

The factors that influence the decision of the Company to determine the size of the balance of cash depends on the models of cash management

The model, which involves the use of the upper and lower limits of control over cash balances and the application of the target balance of funds

This model assumes that the Company will invest in securities that can be easily realized and purchased, so that the balance of funds is within the control limit.

The factors that influence the establishment of the balance of funds for this model are: the level of upper and lower controlled limits and the management's opinion regarding the establishment of the levels of controlled limits

Model for calculating the optimal need for cash balances

This model assumes that the balance of funds can be optimized in two ways: by optimizing turnover and by accelerating the turnover of cash.

The factors that influence the establishment of the balance of funds for this model are: the cost of sales; amount of depreciation deductions; turnover rate of current assets; average balances of current assets; amount of possible urgent expenses.

Model Baumol

According to this model, the replenishment of cash due to the conversion of highly liquid securities must be carried out at the time when fully used cash reserves.

The factors that influence the establishment of the optimal balance of funds for this model are: planned payment transactions; total expenses of money in the planned period; average cost of converting current financial investments per one transaction; interest rate on current financial investments.

Model Miller-Orr

This model assumes that there are only two forms of assets - money and securities that can easily be realized. In addition, this model allows both an increase and a decrease in the cash balance, and the optimal cash balance has not the exact value, but the interval.

The factors that influence the establishment of the optimal balance of cash for this model are: minimum current requirements with the requirements of the serving bank to the minimum balance on current accounts, one-day cash flow; transaction and interest expense in the amount of the daily rate of return on short-term securities the difference between the upper and lower threshold of the balance of funds

The choice of effective forms of regulation of the average balance of monetary assets is carried out in order to ensure the Company's continuing solvency, as well as to reduce the estimated need for the balance of cash assets.