ABSTRACT
Travel agencies in Russia suffer from a lack of monetary resources and have difficulties in attracting borrowed funds. These agencies do not use contemporary methods of managing cash flows. Consequently, these conditions create the need for reasonable cash flow management to ensure a company’s sustainable financial performance, perspectives of raising its value, and attraction for investment. This study is based on the cash flow concept developed by Williams J. (The Theory of Investment Value, 1938), as well as on the research by Gordon M. (The Investment, Financing, and Valuation of the Corporation Homewood, 1962). Here, we suggest that the possibility of acquiring a positive or negative net cash flow should be determined using the logistic regression model. The suggested logistic model allows us to study the dynamics of cash flows of a travel agency and to forecast changes in financial results. Using this model, it is possible to forecast and neutralize a company’s default.
