FINANCIAL MECHANISMS FOR IMPROVING LIQUIDITY AND RISK MANAGEMENT IN COTTON GINNING ENTERPRISES: EVIDENCE FROM UZBEKISTAN

Orif Jumayevich Murodov; Durbek Nishonovich Khusanov

doi:10.55439/EIT/vol14_iss1/794

Авторы

Orif Jumayevich Murodov Doctor of Technical Sciences (DSc), Professor, Renaissance Education University https://orcid.org/0000-0002-7016-8680
Durbek Nishonovich Khusanov Doctor of Economic Sciences (DSc)

DOI:

https://doi.org/10.55439/EIT/vol14_iss1/794

Ключевые слова:

liquidity management; financial risk; cotton ginning enterprises; working capital; capital structure; Uzbekistan

Аннотация

This study examines liquidity and financial risk management mechanisms in cotton ginning enterprises operating in Uzbekistan, based on official financial statements and field-based evidence. Using balance sheet data from two representative cotton ginning plants over the period 2021–2024, the research evaluates key liquidity indicators alongside capital structure dynamics.

The empirical results reveal that, despite temporary improvements in the current ratio in certain periods, quick and absolute liquidity ratios remain persistently low. This indicates limited real payment capacity and the presence of structural cash flow constraints within the enterprises. Furthermore, a strong reliance on debt financing combined with an insufficient equity base significantly increases financial risk and amplifies vulnerability to short-term liquidity shocks.

The findings demonstrate that liquidity problems in cotton ginning enterprises are not temporary or cyclical, but are rooted in the structural characteristics of production and financial operations. Based on empirical evidence, the paper substantiates the need to improve sector-specific financial mechanisms aimed at the integrated management of liquidity and financial risks, taking into account the unique operational features of cotton ginning enterprises.

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