Measuring Cash‐to‐Cash Performance

2003 ◽  
Vol 14 (2) ◽  
pp. 83-92 ◽  
Author(s):  
M. Theodore Farris ◽  
Paul D. Hutchison
Keyword(s):  
Future Research ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Industry Performance ◽  
Managerial Implications ◽  
Key Drivers ◽  
Research Questions ◽  
A Company

The cash‐to‐cash (C2C) metric has evolved as one of the first measurements bridging across the firm. Therefore, it is important for managers to understand how the C2C metric is calculated, as well as how a company should compare in its C2C performance. In this paper, we define C2C and how to calculate it. Then, we provide an analysis and summary of C2C in 2001 for 5,884 companies using median performance by industry. A typology is introduced to classify industry performance using a 2 x 2 x 2 matrix based on the three variables of the C2C metric: accounts payable, inventory, and accounts receivable. We also consider how performance has changed since 1986, identify the key drivers to this change, and describe which industries have experienced the greatest change in C2C performance. Finally, managerial implications and future research questions are offered.

Managing accounts receivable and accounts payable

2021 ◽  
pp. 7-13
Author(s):  
А.П. СОЛОВЬЕВА ◽  
А.В. СКРЯБИНА ◽  
Л.А. ЭВЕРСТОВА ◽  
Ф.Н. ПЕТРОВА
Keyword(s):  
Accounts Receivable ◽  
Accounts Payable ◽  
A Company

Предприятие обязано контролировать дебиторскую и кредиторскую задолженность, следить за сроками погашения, не позволять необоснованного роста суммы дебиторской задолженности, особое внимание уделять по истребованию просроченной задолженности, вести активную работу с контрагентами. Крайне внимательно относиться к расчетам с кредиторами, вовремя погашать им долги, в противном случае предприятие будут иметь штрафные санкции по расчетам с контрагентами – все это объясняет актуальность этой проблемы. Для повышения эффективности использования дебиторской и кредиторской задолженности нами разработаны мероприятия по управлению дебиторской задолженностью. A company must control accounts receivable and accounts payable, be sure to monitor repayment rates, not allow unreasonable growth of debtors and the amount of their debts, take timely measures to recover overdue debts, and actively work with debtors. It is also necessary to be extremely attentive to settlements with creditors, repay their debts on time, otherwise the company may lose the trust of its suppliers, banks and other creditors, will have penalties for settlements with counterparties – all this explains the relevance of this issue. To improve the efficiency of the use of accounts receivable and accounts receivable, we developed measures on managing accounts receivable.

scholarly journals Drivers of Service Innovation in Service Organisations

2021 ◽  
Vol 10 (2) ◽  
pp. 45
Author(s):  
S. S. Makgopa
Keyword(s):  
Research Method ◽  
Service Innovation ◽  
Primary Data ◽  
Future Research ◽  
Analysis Method ◽  
Content Analysis Method ◽  
Key Drivers ◽  
Research Questions ◽  
Service Managers ◽  
Depth Interviews

Service organisations are faced with intense competition and are relying on service innovations to achieve a competitive advantage. The purpose of this study was to investigate the drivers of service innovation in service organisations. Complexity Theory is adopted as the underlying conceptual lens to answer the research questions and attain the research objectives. A qualitative research method was followed to achieve the research objective. In-depth interviews were conducted to collect primary data with service managers and marketing personnel of service organisations. The primary data in this research paper were analysed using a content analysis method with the aid of Atlas.ti version 8. The results of this study revealed that the level of competition in the industry, and customers’ changing behavior. In addition, this study uncovered the key organisations’ resources that serve as key drivers of service innovation in service organisations. This paper provides recommendations to managers in service organisations and directions for future research on service innovation.   Received: 1 November 2020 / Accepted: 9 December 2020 / Published: 5 March 2021

Managing Economic Calculations of a Company

2015 ◽  
Vol 4 (4) ◽  
pp. 23-27
Author(s):  
Ровенский ◽  
Yu. Rovenskiy ◽  
Наточеева ◽  
N. Natocheeva ◽  
Белянчикова ◽  
...  
Keyword(s):  
Financial Performance ◽  
Debt Management ◽  
Working Capital ◽  
Credit Policy ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Enhance Efficiency ◽  
A Company ◽  
Financial Losses ◽  
Sources Of Capital

The paper considers the issues of how to manage the accounts receivable and accounts payable based on the findings of analysis of thereof. The authors propose to sort out definite stages in debt management and suggest ways to calculate the working capital amount to be allocated to accounts receivable; to assess the company financial performance, subject to the provision of onemonth and three-month discounts to debtors, and to evaluate the effect of the increase in accounts receivable in the upcoming period. All the above help to enhance efficiency of the company’s credit policy and of the accounts payables management and also allow to reduce financial losses related to attracting additional sources of capital.

scholarly journals One Report: Bringing Change in Corporate Reporting through integration of Financial and Non-Financial Performance Disclosure

2011 ◽  
Vol 1 (1) ◽  
pp. 50 ◽  
Author(s):  
Zubair Azam ◽  
Khalid Mehmood Warraich ◽  
Sajid Hussain Awan
Keyword(s):  
Literature Review ◽  
Financial Performance ◽  
Annual Report ◽  
Future Research ◽  
Statistical Techniques ◽  
Corporate Reporting ◽  
Research Areas ◽  
Managerial Implications ◽  
Conceptual Foundations ◽  
A Company

Investment community is understandably preoccupied with determination to bring assured transparency within organization’s operations. To get companies more transparent, and to win stakeholder’s trust, companies need to communicate their actions and level of commitment to incorporate sustainability into every organizational decision. And companies communicate with their stakeholders through issuing various internal and external reports.This research paper proposes that to bring assured transparency and to win stakeholder trust, companies should integrate financial and non-financial performance reports and thus should produce One Report. The paper presents an annotated literature review which covers conceptual foundations of One Report, drivers, prospective benefits to both stakeholders as well as to companies, and prospective challenges that companies can face in the adoption of One Report. Survey has been conducted to assess important factors that practitioners consider while making judgment about a company, useful metrics to be included in an annual report and prospective benefits on one report. Descriptive statistical techniques are employed and on the basis of findings, it has been discussed that how business schools can incorporate the sustainability topic into the curriculum. A roadmap for adoption of one report has also been suggested. Finally, managerial implications and future research areas have been identified.

scholarly journals An experimental analysis of overconfidence in tariff choice

2020 ◽  
Author(s):  
Katharina Dowling ◽  
Lucas Stich ◽  
Martin Spann
Keyword(s):  
Experimental Approach ◽  
Future Research ◽  
Prior Work ◽  
Flat Rate ◽  
Actual Usage ◽  
Incentive Compatible ◽  
Digital Services ◽  
Managerial Implications ◽  
Key Drivers ◽  
Tariff Choice

AbstractConsumers regularly have to choose between a pay-per-use and a flat-rate option. Due to the increasing number and range of (digital) services, the frequency at which consumers have to make tariff-choice decisions to use these services has become even more prevalent. Prior work has demonstrated that consumers’ tariff choices are often systematically biased and identified overconfidence as one of the key drivers. Yet, prior research is non-experimental and focused on the so-called flat-rate bias. By contrast, we examine the effects of overconfidence on the choice between a pay-per-use and a flat-rate option using an experimental approach. We develop an incentive-compatible experiment to provide causal evidence for the effect of overconfidence on tariff-choice decisions. We find that overconfident (underconfident) consumers underestimate (overestimate) their actual usage, which leads them to choose a pay-per-use (flat-rate) option relatively more frequently. Based on the results, we discuss theoretical and managerial implications as well as avenues for future research.

scholarly journals The Impact of Working Capital Components on Firm Value in US Firms

2017 ◽  
Vol 9 (8) ◽  
pp. 138
Author(s):  
Joseph Brian Cumbie ◽  
John Donnellan
Keyword(s):  
Firm Value ◽  
Economic Value ◽  
Optimal Level ◽  
Future Research ◽  
Curvilinear Relationship ◽  
Working Capital ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Curvilinear Relationships ◽  
The Impact

Working capital is an important part of any businesses day-to-day operations. However, most businesses do not take into consideration that continuous investment into working capital does not maximize firm value. The specific problem addressed was firm managers that do not understand the optimal level for each component of working capital create sub-optimal value firm; leading to diminished investment returns for shareholders. For this study, 140 firms for the years 2003-2012 were selected from a stratified random sample of firms listed on the Russell 2000 index. Accounts receivable days outstanding, accounts payable days outstanding, and inventory days outstanding were regressed on economic value to determine whether a curvilinear relationship existed. All three models showed a statistically significant relationship to firm value, F(6, 2268), p<.01, R2= .40, F(6, 2268), p<.01, R2= .38, F(6, 2268), p<.01, R2= .39. Recommendations for firm managers included lowering accounts receivable, accounts payable, and inventory days during boom economic times while increasing accounts receivable, accounts payable, and inventory days during recessionary economic times. Consideration for future research into working-capital management and firm value should consider whether different curvilinear relationships exist between firm value and working-capital components during different economic cycles.

Partial adjustment toward target accounts payable ratio

2017 ◽  
Vol 10 (4) ◽  
pp. 484-502 ◽  
Author(s):  
Ala’a Adden Abuhommous
Keyword(s):  
Firm Value ◽  
Trade Credit ◽  
Positive Impact ◽  
Banking System ◽  
Future Research ◽  
Credit Policy ◽  
Partial Adjustment ◽  
Content Type ◽  
Accounts Payable ◽  
Managerial Implications

Purpose This paper aims to test for a potential target accounts payable ratio and the determinants of accounts payable ratio. Design/methodology/approach The author use data from 104 firms over the period 2000-2014 and analyse these data using the system-generalised method of moments methodology. Findings The author find that Jordanian firms have a target accounts payable ratio and more than 65 per cent of the deviation from target is closed within a year. He find a positive impact of growth, positive growth and supply of credit on the accounts payable ratio. Furthermore, large firms use less trade credit to finance their purchases. Research limitations/implications A number of limitations affect this study to be considered in future research. Future researchers could cover longer period of time. To generalise the results, non-listed firms may be included in the sample. Practical implications In addition to extending the finance literature, this study has managerial implications regarding trade credit policy. There is strong evidence that the trade credit policy is affected by firm’s access towards capital market funds. Thus, regulators and policy maker should bear in mind that the banking system should help firms to achieve their target accounts payable ratio. In addition, firm’s management should be aware of the importance of trade credit to finance sales growth. All of these results should assist firm managers to find the factors that affect the target accounts payable ratio, which ultimately may affect the firm value and performance. Originality/value To the best of author’s knowledge, this is the first study on the partial adjustment model and determinants of accounts payable in Jordan. Thus, the authors aim to contribute to the existing literature, as there are very few studies test for target trade credit policy.

Children's Perceived Value: Conceptualization, Scale Development, and Validation

2020 ◽  
Author(s):  
Janine Williams ◽  
A Gazley ◽  
N Ashill
Keyword(s):  
New York ◽  
Perceived Value ◽  
Internal Consistency Reliability ◽  
Future Research ◽  
New York University ◽  
Consumer Decisions ◽  
Managerial Implications ◽  
Stage Process ◽  
Development And Validation ◽  
Value Measure

© 2020 New York University Perceived value among children is an important concept in consumer decisions, yet surprisingly no research has operationalized value for this consumer group. To address this omission, and following the guidelines of DeVellis (2016), this investigation reports the findings of a seven-stage process to develop a valid and reliable instrument for measuring perceived value among children aged 8–14 years. Value for children is conceptualized as a multidimensional construct capturing perceptions of what is received and what is given up, which differs from adult measures in terms of its composition and complexity. A 24-item scale is developed that shows internal consistency, reliability, construct validity, and nomological validity. We also demonstrate the validity of the new scale beyond an existing adult perceived value measure. Directions for future research and managerial implications of the new scale for studying children's consumer behavior are discussed.

Exploring the Interrelationship Among Organizational Climate, Employee Motivation and Job Satisfaction: A Review of Literature

2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Rakhi ◽  
Anil Kumar
Keyword(s):  
Job Satisfaction ◽  
Organizational Climate ◽  
Employee Motivation ◽  
Future Research ◽  
Review Of Literature ◽  
Managerial Implications

This article offers a brief review of studies on organizational climate, employee motivation and job satisfaction. A relationship among organizational climate, employee motivation and job satisfaction has been reviewed in the paper. The paper consists of four sections beginning with a brief introduction of variables along with their dimensions. It is followed by exploring their interrelationship using previous studies. Conclusion and discussions, managerial implications and direction for future research have been given in the end.

Dysfunctional Behavior in Organizations: Insights from the Management Control Literature

2017 ◽  
Vol 37 (4) ◽  
pp. 117-141 ◽  
Author(s):  
Krista Fiolleau ◽  
Theresa Libby ◽  
Linda Thorne
Keyword(s):  
Risk Factors ◽  
Internal Control ◽  
Management Control ◽  
Future Research ◽  
Fraud Triangle ◽  
Audit Risk ◽  
Research Opportunities ◽  
Dysfunctional Behavior ◽  
Research Questions ◽  
Published Research

SUMMARY As the scope of the audit continues to broaden (Cohen, Krishnamoorthy, and Wright 2017), research questions in management control and internal control are beginning to overlap. Even so, there is little overlap between these fields in terms of published research to date. The purpose of this paper is to take a step in bridging the gap between the management control and the internal control literatures. We survey relevant findings from the extant management control literature published between 2003 and 2016 on dysfunctional behavior and the ways in which it might be mitigated. We then use the fraud triangle as an organizing framework to consider how the management control literature might help to address audit risk factors identified in SAS 99/AU SEC 316 (AICPA 2002). The outcome of our analysis is meant to identify and classify the extant management control literature of relevance to research on internal control in a manner that researchers new to the management control literature will find accessible. We conclude with a set of future research opportunities that can help to broaden the scope of current research in internal control.

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