Using multiple linear regression model to evaluate the effectiveness of financial decisions in the enterprise

Evaluation of the company’s activities, from the point of view of financial management, is a debatable issue in the formation and evaluation of planned indicators. The financial cycle of a company is more often than others a fundamental indicator characterizing the effectiveness of working capital management of an enterprise. Additional significant indicators in assessment include liquidity and asset profitability. It should be noted that there is an ambiguous relationship between them. Based on data from theoretical studies by various authors, it is worth noting that there is a reverse relationship between the financial cycle and asset profitability. In the presented scientific research, an evaluation of this statement regarding the reverse relationship was conducted using a multiple linear regression model, focusing on leading telecommunications companies in the Russian Federation. The study mathematically demonstrated that there is a weak correlation between the financial cycle and asset profitability of telecommunications companies.