A practical framework to evaluate and report combined natural resource and production outcomes of agricultural research to livestock producers

2003 ◽  
Vol 43 (8) ◽  
pp. 745 ◽  
Author(s):  
R. Barlow ◽  
N. J. S. Ellis ◽  
W. K. Mason
Keyword(s):  
Cash Flow ◽  
Natural Resource ◽  
Agricultural Research ◽  
Full Range ◽  
Flow Analysis ◽  
Cash Flows ◽  
Production Data ◽  
Sufficient Information ◽  
Management Skills ◽  
Experimental Treatments

The specifications for this study were set by the need for researchers in the Sustainable Grazing Systems (SGS) Program to have a consistent framework to evaluate experimental results across research sites and to share those results in a comprehensive way with livestock producers, allowing them to consider the full range of outcomes and impacts. To achieve this, the framework needed to account for production, economic and natural resource impacts, and other issues associated with making changes on farms. It also had to be easily applied, and readily understood by all segments of the SGS Program. This approach demanded some elements of pragmatism. Economic analysis of production data was based around net cash flow analysis. Spreadsheet programs were written for beef, self-replacing Merino and prime lamb enterprises. These incorporated the capacity to graph results automatically, provide sensitivity analysis tables, and project net cash flow results averaged over a 10-year period. Net cash flows were given for 2 levels of management skills — 'district average' and 'high'. Placing dollar values or costs on resource impacts was not as simple and could not be achieved within the practical framework required. A qualitative approach to the evaluation of resource impacts was developed in collaboration with researchers, advisors and collaborating producers. A framework was constructed which allows the likely on- and off-farm impacts of any experimental treatments to be identified and subjectively rated for likely importance.A practical tool for integrating and reporting the production and resource impact information was constructed. This captures the net cash flow, the key production data, the off-farm and on-farm impacts and provides an overview assessment of the treatment in a simple table. It provides producers with sufficient information to allow an assessment as to whether adoption of any 'treatment' could improve the profitability and sustainability of their grazing system. This tool was tested across all treatments at the SGS National Experiment sites and found to work well. Examples are presented, covering a range of resource impact and net cash flow combinations.

scholarly journals Prior credit assessment of long-term SME projects with non-standard cash flows

2021 ◽  
Vol 16 (2) ◽  
pp. 148-158
Author(s):  
Serhii Onikiienko ◽  
Yevheniia Polishchuk ◽  
Alla Ivashenko ◽  
Anna Kornyliuk ◽  
Nazar Demchyshak
Keyword(s):  
Cash Flow ◽  
Flow Analysis ◽  
Estimation Algorithm ◽  
Cash Flows ◽  
Economic Life ◽  
Bank Loan ◽  
Preliminary Evaluation ◽  
Value Based Management ◽  
Loan Demand

Over the past three decades, the relative bank loan demand has changed due to the arising small and medium-sized enterprises (SMEs). Therefore, banks in their operations face the problem of processing an ever-increasing number of loan applications. The aim of this paper is to develop an auxiliary approach to assessing the prior creditworthiness of long-term SME projects with nonstandard cash flows.This study reveals how the principles of value-based management can be incorporated into the process of borrower’s creditworthiness assessment to improve the process of screening loan applications. For this, the internal rate of return was used as a criterion for loan granting decision at the initial stage of loan underwriting.An algorithm for the preliminary evaluation of loan applications is proposed and is based on the principle of maximizing the shareholder value of banks. This algorithm helps to define the credit terms taking into consideration the distribution of positive cash flows throughout the project’s expected economic life, calculate the possible real effective interest rate concerning the borrower’s nonstandard cash flow schedule, make a rough analysis on the economic efficiency of lending and state the necessary criterion to initiate the procedure of loan underwriting for the projects with nonstandard cash flow schedules. The proposed estimation algorithm stemming from the IRR-approach for the cash flow analysis can also be initially used by a borrower as a tool for credit solvency self-testing via screening of periods with corresponding cash flows that can be used for loan servicing.

Aurora Textile Company

2017 ◽  
pp. 1-14
Author(s):  
Kenneth M. Eades ◽  
Lucas Doe
Keyword(s):  
Cash Flow ◽  
Financial Distress ◽  
Textile Industry ◽  
Capital Investment ◽  
Investment Decision ◽  
Flow Analysis ◽  
Cash Flows ◽  
List Type ◽  
Discounted Cash Flow ◽  
Cost Information

This case asks the student to decide whether Aurora Textile Company can create value by upgrading its spinning machine to produce higher-quality yarn that sells for a higher margin. Cost information allows the student to produce cash-flow projections for both the existing spinning machine and the new machine. The cash flows have many different cost components, including depreciation, the number of days of cotton inventory, and the liability costs associated with returns from retailers. The cost of capital is specified in order to simplify the analysis. The analysis has added complexity, however, owing to the troubled financial condition of both the company and the U.S. textile industry, which is in decline as manufacturers migrate to Asia to benefit from lower manufacturing costs. This begs the question whether management should invest in a declining business or harvest the company by paying out all profits as a dividend to the owners. The case is suitable for students just beginning to learn finance principles, but is also rich enough to use with experienced students and executives. The primary learning points are as follows: The basics of incremental-cash-flow analysis: identifying the cash flows relevant to a capital-investment decision The construction of a side-by-side discounted-cash-flow analysis for a replacement decision How to adapt the NPV decision rule to a troubled or dying industry The effect of financial distress on the NPV calculation The importance of sensitivity analysis to a capital-investment decision

CONTENT AND NON-TRADITIONAL WAYS OF USING CASH FLOW ANALYSIS OF NON-STATE CORPORATE STRUCTURES

2020 ◽  
Vol 13 (2) ◽  
pp. 43-50
Author(s):  
N.V. Bondarchuk ◽  
Keyword(s):  
Cash Flow ◽  
Financial Management ◽  
Direct Method ◽  
Flow Analysis ◽  
Cash Flows ◽  
Time Interval ◽  
Sources Of Information ◽  
Traditional Use ◽  
Global Pandemic ◽  
Potential Use

Non-state corporate structures, which are the most widespread subjects of Russian business, do not have direct state influence and significant support, and are the most severely affected by the global pandemic of 2019–2020, are increasingly facing a situation of their own insolvency.50 Экономические системы. 2020. № 2 Economic Systems. 2020. No. 2 In these conditions, financial managers of non-state corporate structures try to plan the distribution of their funds more clearly and devote significant influence to their analysis. The author defines the concept of cash flow analysis of non-state corporate structures corresponding to its modern content. The article presents the author's systematization of methods for analyzing cash flows used by non-governmental corporate structures on the basis of the following features: by time interval, by the sources of information used, by the content of the main methodological techniques, by the traditional direction of potential use. The time interval was used for retrospective, operational and forecast analysis of cash flows of non-state corporate structures. According to the sources of information used in the analysis of cash flows, it was detailed into external, internal and mixed. According to the content of methodological techniques, analytical procedures used in the analysis of cash flows in non-state corporate structures are a direct method of analyzing cash flows, an indirect method of analyzing cash flows and coefficient methods of analyzing cash flows. Based on the traditional nature of the potential use areas, we have identified traditional and non-traditional (relatively new) areas of use of cash flow analysis of non-state corporate structures that have become traditional in recent years. The article provides a brief description of direct, indirect and coefficient methods for analyzing cash flows of non-state corporate structures and describes the directions of their use. The main directions of their application are considered: determining the main types of proportions of cash receipts and outflows and distribution of cash flows by type of activity; calculating the net cash flow based on net profit and its adjustments; calculating the coefficients of sufficiency and efficiency of cash flows. The greatest attention is paid to the directions of non-traditional use of methods of cash flow analysis that solve certain tasks of financial management: assessing the feasibility of local financial solutions, determining the synchronicity and uniformity of inflows and outflows, eliminating short-and medium-term cash gaps, determining the level of tax costs, determining the ability of the organization to repay various types of obligations

scholarly journals Cash flows of enterprises: their assessment and analysis

2018 ◽  
pp. 86-93
Author(s):  
T. Okhrymovych ◽  
L. Gutko
Keyword(s):  
Cash Flow ◽  
Financial Stability ◽  
Crop Production ◽  
Continuous Process ◽  
Flow Analysis ◽  
Research Direction ◽  
Cash Flows ◽  
Agricultural Enterprise ◽  
Dairy Cattle Breeding ◽  
Operating Activities

The processes taking place in the economy in recent decades clearly demonstrate that the economic and social stability of society depends on the financial stability of enterprises. One of the most important signs of financial stability is the ability of an enterprise to generate cash flows. The presence of money from the enterprise determines the possibility of its survival and directions for further development. Any company in the course of its activities has a need for financial resources necessary for the implementation of relationships with other legal entities and individuals. The uninterrupted circulation of cash flows in the reproduction process means the fulfillment of obligations to the budget, partners, the absence of overdue debts to the enterprise and the enterprise itself, normal solvency, necessary financial stability, creditworthiness and profitability. The cash flow of an enterprise is a continuous process. For each direction of funds use there must be an appropriate source. In a broad sense, the assets of an enterprise represent the net use of cash, and liabilities and equity are net sources. A research aim was to conduct the all-round analysis of enterprise money forming streams, estimate the degree of sufficientness and efficiency for providing of their balanced and synchronization. For realization of the put aim tasks are pulled out: to find out the value of money streams in activity of menage subjects; to conduct the analysis of certain enterprise money forming streams; to carry out the estimation of composition, dynamics and efficiency of enterprise money streams management. Research methodology is folded by the scientific methods of cognition and special, in particular, economic and statistical methods (comparison, grouping, tabular, graphic, standardizations of investigated phenomena indexes), economic and logical methods (elimination, vertical, horizontal, coefficient analysis) which provided the solution of the tasks in the chosen research direction. The article discusses the nature and characteristics of cash flows. The above classification and sources of cash flow. On the example of agricultural enterprise "Sloboda " was estimated efficiency of cash flow. The main activities of the enterprise are: the cultivation of grain crops (except rice), legumes and oilseeds; breeding dairy cattle; breeding pigs; sugar production; breeding other animals; auxiliary activities in crop production. The input streams of this company are 100% solely cash from operating activities. Having considered the structure of the PSP “Sloboda” initial cash flows for 2015-2017, we can say that the main share of cash flows from operating activities (80-90%), from investment activities – 10-20%. Conclusions were made on improving the efficiency of cash flows. With the aim to increase cash flows of private agricultural enterprise "Sloboda" management efficiency it is necessary: to attract in practice the calculation of money streams indexes system as measuring devices of financial firmness and solvency; to study area conformities of money law streams and take them into account in practice and analysis of enterprise; to determine streams in registration, including operative, and information for timely forming of the extended dataware of enterprises cash flow analysis; to perfect money streams methodology of analysis; to take into account the factors of enterprise money motion in the conditions of vagueness and risk. Key words: cash, incoming cash flows, cash outflows, cash flow analysis, efficiency, profitability, liquidity, agricultural enterprise.

scholarly journals Discount rate selection for long-term sequential mineral projects

2017 ◽  
Vol 33 (3) ◽  
pp. 49-70 ◽  
Author(s):  
Piotr W. Saługa
Keyword(s):  
Economic Evaluation ◽  
Cash Flow ◽  
Discount Rate ◽  
Flow Analysis ◽  
Capital Intensity ◽  
Cash Flows ◽  
Time Varying ◽  
Discount Rates ◽  
Capital Costs

AbstractMineral projects depict various specific features that differentiate them from alternative investments in other industries. Among these features, one can specify unique characteristics of mineral deposits such as scarcity, geological setting and structure, resource/reserve uncertainty and depletability. Resource uncertainty results in the sequential nature of operations (exploration, development and production stages). Other specific features of mineral projects include long investment - and production periods, high capital intensity, varying production conditions, unpredictability and high volatility of mineral prices, etc. Specific features of mineral projects are sources of exceptionally high risks. To ensure the payback of high capital costs these significant risks must be addressed in the economic evaluation of a mineral project. In the discounted cash flow analysis, DCF, which is the most commonly used in evaluations of such ventures, all project uncertainties are reflected in a level of the discount rate used for the actualization of future cash flow values. The riskier project has a higher discount rate. Apart from being extremely high risk, mineral projects are both sequential and long-term - the first feature means that the extent of a project risk decreases dramatically over time, and second - that care should be taken when evaluating these projects because cash flows arising in later years of the project lifetime have little value. The paper delivers a proposal to apply the time-varying discount rate to the economic evaluation of a mineral project. The first part introduces a commonly accepted approach to evaluating discount rates along with conceptions of adjusting them to risks of individual projects. In the following sections, the article presents the current practice in the setting of discount rates for mineral projects and then a proposed modification of this approach by introducing the time-varying discount rate. In the end, a verification of the proposed suggestion based on a copper project example has been delivered.

scholarly journals ANALISIS PENGARUH ARUS KAS TERHADAPPROFITABILITAS PADA PT MAYORA INDAH TBK

2016 ◽  
Vol 2 (1) ◽  
pp. 1-15
Author(s):  
Hendro Sasongko ◽  
Dewi Apriani
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Cash Flow ◽  
Hypothesis Test ◽  
Flow Analysis ◽  
Financial Statements ◽  
Total Sample ◽  
Cash Flows ◽  
Test Results ◽  
Operating Cash Flow

This study aims to determine whether the cash flows either partially or simultaneously affect the profitability (ROA) at PT Mayora Indah Tbk 2010-2014. Research on the cash flow analysis of the effect on profitability. This type of research is a correlational study with a total sample of 10 per six months in the financial statements at PT Mayora Indah Tbk during the period 2010-2014. The process of data analysis done first is the classic assumption test before hypothesis test. Statistical method used is multiple linear regression using SPSS. The results showed that cash flow is comprised of operating cash flow, cash flow investing and financing cash flows simultaneously there is no significant effect on profitability (ROA). Partial test results show that the variable operating cash flow, cash flow investing and financing cash flow is not a significant influence on profitability (ROA).Keywords: operating cash flow, investing cash flows, financing cash flow and profitability (ROA).

scholarly journals Implementation of Statistical Indicators to Analysis of Effectiveness of Cash-Flows of the Enterprise

2019 ◽  
pp. 34-42
Author(s):  
H. Rohanova
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Flow Analysis ◽  
Cash Flows ◽  
Operating Conditions ◽  
Flow Management ◽  
Cash Flow Management ◽  
Flows Over Time ◽  
Statistical Indicators ◽  
Over Time

The contemporary methods of corporate cash flow analysis are the object of this study. One of the most problematic points is how to provide proper cash flow analysis on a formation simultaneity basis over time. The classical methods of corporate cash flow management efficiency analysis are considered and the basic parameters of its indicators are determined during the study. Unstable operating conditions of domestic companies, as well as the existing inconsistency of the corporate reporting with International Financial Reporting Standards, make it difficult to generate timely and adequate information about cash flows of a company. The main phases of cash flow management effectiveness analysis are defined herein. They include collecting and processing the data, identifying the factors and risks, analyzing the cash flows of the previous period, determining the financial resources and cash needs, budgeting the investments and monitoring the cash flows. Throughout this study, it is proposed to improve the quality of cash flow analysis by introducing certain statistical cash flow analysis indicators. Due to this, it is possible to obtain a high-quality and comprehensive assessment of the formation of simultaneity and expenditure of cash flows over time. The drawbacks of the classical (horizontal, vertical, comparative and ratio) methods of analysis are also described herein. Thus, certain classical statistical indicators are proposed to apply while evaluating the cash flows. Compared to other classical methods, statistical analysis has certain advantages as it allows to identify the relationships between cash flows, the closeness of such relationships and their volatility, thereby making the mechanism for evaluating cash flows more holistic.

Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations

2020 ◽  
Vol 19 (6) ◽  
pp. 1101-1120
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Cash Flow ◽  
Oil And Gas ◽  
Cash Flows ◽  
Annual Reports ◽  
Capital Expenditures ◽  
Publicly Traded ◽  
The Public ◽  
Statement Of Cash Flows ◽  
Oil And Gas Companies

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

JEFFl/2-a cash flow analysis program

1997 ◽  
Author(s):  
Bruce G. Hansen ◽  
A. Jeff Palmer
Keyword(s):  
Cash Flow ◽  
Flow Analysis ◽  
Analysis Program
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