Cash Management Using ODE-Based Modeling

Название	Cash Management Using ODE-Based Modeling
Авторы	Zanko G. _.¹ ¹Baku State University
Аннотация	In this short communication paper a continuous-time model for dynamic corporate cash management is presented, utilizing the principles of optimal control theory. The evolution of a companys liquidity position is formulated through a system of Ordinary Differential Equations (ODEs) that correctly distinguishes between stocks (cash, debt, investments) and flows (rates of borrowing and investment). The problem is framed to minimize financing costs and maximize investment returns over a finite horizon. By applying Pontryagins Maximum Principle, the necessary conditions for optimal financial interventions are derived. The resulting control policies are threshold-based strategies, dynamically guided by the economic shadow prices of cash, debt, and invested capital. This framework provides a financially intuitive and mathematically sound foundation for proactive liquidity management, bridging theoretical control theory with practical corporate finance.
Ключевые слова	ordinary differential equations, cash management, optimal control.
Образец ссылки на статью	Zanko G. _. Cash Management Using ODE-Based Modeling [Электронный ресурс] // Математическое моделирование, численные методы и комплексы программ: XVII Международная научная молодежная школа-семинар имени Е.В. Воскресенского (Саранск, 29-31 июля 2025 г.). - С. 300-303. Режим доступа: https://conf.svmo.ru/files/2025/papers/paper63.pdf. - Дата обращения: 30.08.2025.

МАТЕРИАЛЫ НАУЧНЫХ КОНФЕРЕНЦИЙ И ШКОЛ-СЕМИНАРОВ

Cash Management Using ODE-Based Modeling

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