Types of investment strategies for current assets

Types of current asset investment strategies:

There are three investment strategies for current assets of enterprises: cooperative investment strategy, steady investment strategy and radical investment strategy.

Cooperative investment strategy

Coordinated investment strategy refers to the portfolio strategy of maintaining a certain insurance reserve under the condition of ensuring the normal demand of current assets.

Steady investment strategy

Steady investment strategy From the perspective of steady operation, when arranging current assets, in addition to ensuring normal demand and necessary insurance reserves, some additional reserves are also arranged to minimize the liquidity risks that enterprises may face.

Aggressive investment strategy

Aggressive investment strategy means that the investment in current assets only ensures the normal demand of current assets, and does not keep or only keeps a small amount of insurance reserves, so as to minimize the occupation level of current assets and improve the operational efficiency of enterprises.

At the same time, according to the ratio of current assets to sales revenue, current assets investment strategies can be divided into two categories:

1, tight current asset investment strategy

(1) Maintain a low ratio of current assets to sales revenue (high returns and high risks).

(2) It may be accompanied by higher risks. For example, the tight credit policy may reduce the sales income of enterprises, while the tight product inventory policy is not conducive to customers' choice of goods, thus affecting the sales of enterprises.

(3) As long as unforeseeable events do not damage the liquidity of enterprises and lead to serious problems, a tight current asset investment strategy will improve the efficiency of enterprises.

2. Loose current asset investment strategy.

(1) Maintain a high ratio of current assets to sales revenue (low income and low risk).

(2) Investment in highly liquid assets may lead to low return on investment, but due to high liquidity, the business risk of enterprises is small.