scholarly journals A Study of the Cash Flow Forecasting Impact on the Owners Financial Management of Construction Projects in the State of Kuwait

2018 ◽  
Vol 3 (1) ◽  
pp. 69
Author(s):  
Moustafa Kotb ◽  
Mohamed Abdel Razik Ibrahim ◽  
Yousef Saleh Al-Olayan
Keyword(s):  
Cash Flow ◽  
Financial Management ◽  
Construction Projects ◽  
Critical Path ◽  
Cash Flows ◽  
The State ◽  
Economic Feasibility ◽  
Flow Plan ◽  
S Curve ◽  
The State Of Kuwait

Cash flow is considered to be the main acceleration’s factor of any construction contract, which has a large and direct impact on projects completion dates as well as the project contractual duration. This is very evident when examining how the owners benefit from their projects in achieving or forfeiting the desired economic feasibility determined in the feasibility study of any project.It is noted that the cash flow plan is issued through a Critical Path Method (CPM) for a project which entails only an estimate of the monetary value of the construction work to be carried out on site and on a rough and approximate basis using the cash flow’s curve (S-CURVE), which is usually gives a different value from the actual work performed onsite.The impact of this problem on financial management for any project is as follows:In the case of underestimation, if the available estimates are less than the required cash flow, it is considered as a major cause for delay in project completion as well as the inability of the owner to achieve the economic feasibility Internal Rate of Return (IRR) required for the project. Also, this leads to monitory error due to the financial compensations due to the contractor as a result of the damage caused by time extensions due to the holdings of the cash entitlements.In the case of overestimation of the value of the required cash flow with a high margin of error, this leads to the monetary waste of amounts that could have been invested in other ventures, projects or opportunities.This paper provides a summary of the importance of determining the appropriate amount of cash flows required to be provided by the owner’s financial management, which leads to achieving the appropriate projects financial management gains and thus reducing financial losses or disputes in construction projects in the State of Kuwait.

scholarly journals Comprehensive Analysis of Cash Flows of the State Enterprise "Antonov"

2021 ◽  
Vol 26 (1) ◽  
pp. 178-184
Author(s):  
Tetiana Shchepina ◽  
◽  
Anastasiia Titarenko ◽  
Keyword(s):  
Financial Management ◽  
Complex Analysis ◽  
Financial Statements ◽  
Cash Flows ◽  
Comprehensive Analysis ◽  
The State ◽  
Economic Feasibility ◽  
State Enterprise ◽  
Financial Decisions ◽  
Economic Interpretation

Abstract. Introduction. The analysis of the enterprise’s cash flow statement is invaluable for external users (owners, investors, lenders, partners) as a reason to substantiate the investment and financial decisions, evidence of the business partnerships reliability, and for most of the management when evaluating the level of efficiency, of its economic feasibility confirmation or refutation of the chosen financial management strategy and tactics. Purpose. The purpose of the article is to develop and test a method of comprehensive analysis of cash according to the financial statements of the state enterprise "Antonov" for the period 2018-2019, to perform an economic interpretation of the results of the analysis, based on the received calculations. Results. The dialectical method of cognition, a comprehensive systematic approach to the object of study, general scientific methods, special (horizontal, vertical and coefficient) analysis procedures, abstract and logical method for theoretical generalizations and drawing conclusions have been applied in the article. The method of comprehensive analysis of cash flows according to financial statements has been developed and tested. An economic interpretation of the analysis results has been proposed. Conclusions. A method of complex analysis of cash flows has been developed and proposed as a result of scientific research. The obtained results are important for the formation of strategy and tactics of financial management of the enterprise. The results of such an analysis are also a crucial argument in substantiating owners, investors, creditors, partners and other outsiders in the analysis of investment and financial decisions about the company and its prospects.

scholarly journals Difference in S-Curve for Different Types of Construction Projects

2021 ◽  
Author(s):  
Ehab Soliman ◽  
◽  
Khaled Alrasheed ◽  
Keyword(s):  
Statistical Analysis ◽  
Cash Flow ◽  
Construction Projects ◽  
Middle Part ◽  
Project Duration ◽  
Cash Flow Management ◽  
High Rise ◽  
Different Types ◽  
S Curve ◽  
The State Of Kuwait

Project cash flow and contractor S-curve are tools that can be used to measure, control and anticipate project progress. Few studies dedicated to evaluate and judge the behaviour of the original S-curve. This study aims to evaluate the similarities and changes of construction projects S curves between different project types. More than 40 S-curves were collected from the state of Kuwait for different types of construction projects. The list of collected curves divided into six groups based on the type of client, no of buildings and number of floors. Statistical analysis used to compare the curves inside each group of projects. Statistical analysis using test of normality, T-paired test then Standard Euclidean Distance were applied to evaluate the similarity and changes between groups. This study revealed that there is a level of similarity of S-curves for high rise buildings and there is no similarity of S-curves for one or multi-building projects. The maximum gap between S-curves for one and high rise building laying in the middle part of project duration, while the maximum gap between S-curves for multi-building project laying in 70% to 80% of project duration. This study revealed that the variance of S-curve behaviour indicating there is no common attitude for all types of construction project types. This study can help construction stakeholders to anticipate their expected expenses and help in project cash flow management.

Managing cash flow. Practicum

2019 ◽  
Author(s):  
Павел Жуков ◽  
Pavel Zhukov
Keyword(s):  
Corporate Finance ◽  
Cash Flow ◽  
Financial Management ◽  
Cash Flows ◽  
Educational Programme ◽  
Flow Management ◽  
General Manager ◽  
Cash Flow Management ◽  
Financial Profile

Textbook "managing cash flow" is based on a similar discipline which is part of the educational programme of the Financial University for training Bachelors to direction of preparation 38.03.02 "management", financial profile. Discipline treats all topics of general courses in financial management and corporate finance. Difference of discipline is that it focuses on cash flow management (rather than capital, profitability, etc.) and consequently, the discipline examines corporate finance and financial management in terms of cash flow management. Cash flow management is usually the essence of the work of a Finance Manager, and it treats activities of an Organization in terms of cash flows. That is usually a feature of outlook of financial manager and distinguishes it from other managers. Due to the nature of their work, financial managers must also bear in mind the issues of competitiveness, efficiency, profitability and sustainability of the company, which commonly are the focus of the General Manager. The workshop aims to develop the skills necessary for this activity.

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

A framework for cost-benefit assessment of alternative sediment management strategies in Dez hydropower reservoir: A probabilistic approach

2019 ◽  
Vol 14 (4) ◽  
pp. 783-801
Author(s):  
Hamid Khakzad
Keyword(s):  
Cash Flow ◽  
Management Strategies ◽  
Probabilistic Approach ◽  
Cost Benefit ◽  
Cash Flows ◽  
Sediment Management ◽  
Economic Feasibility ◽  
Discounted Cash Flow ◽  
The Cost ◽  
Hydropower Reservoir

Abstract A new theoretical approach to assessing the economic feasibility of sediment management strategies is proposed by incorporating probability distribution directly into the analysis. This would allow the life of Dez hydropower, for instance, to be prolonged definitely. The discount rate is also examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Eight options for sediment management in Dez reservoir are assessed and future reservoir storage volumes estimated for the period 2018 to 2068. As a second step, discounted cash flow (DCF) with gamma discounting rate is used to evaluate present values for future cash flows for each option. The results indicate that these models, which offer an efficient approach, can be used to assess the cost-benefit feasibility of sediment management strategies. Guidelines are given for applying this approach to other projects.

Computer Simulation Forecast of the Markov Chain for Payback Period of Construction Projects Investment

2013 ◽  
Vol 671-674 ◽  
pp. 3096-3099
Author(s):  
Meng Fang Zhang ◽  
Liang Huang ◽  
Lu Yang Shan
Keyword(s):  
Computer Simulation ◽  
Markov Chains ◽  
Cash Flow ◽  
Construction Projects ◽  
Transition Probability ◽  
Economic Effect ◽  
Cash Flows ◽  
Scientific Basis ◽  
Transition Probability Matrix ◽  
Payback Period

The investment payback period of construction projects is an important index that evaluate and measure economic effect of project investment. It is difficult that the investment payback period of construction projects is calculated generally using analytic method.We established the mathematical model of the payback period, the annual net cash flows are Markov chains. According to the similar projects, collected net yearly cash flow and each quarter net cash flow, A one-step transition probability matrix was described by using the computer simulation of Markov chains, forecasted the dynamic and static payback period of construction projects investment. so as to provide the scientific basis data for decision makers.

scholarly journals Use of the bar chart/S-curve and computerized precedence diagram method on scheduling and controlling building construction projects by contractors: a cross-sectional study

F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 284
Author(s):  
Putri Lynna Adelinna Luthan ◽  
Nathanael Sitanggang ◽  
Abdul Hamid ◽  
Bambang Hadibroto
Keyword(s):  
Construction Projects ◽  
Critical Path ◽  
Cross Sectional Study ◽  
Building Construction ◽  
Project Work ◽  
Cross Sectional ◽  
Diagram Method ◽  
Study Programs ◽  
S Curve ◽  
The Right

Background: Building construction projects have very complex activities, so they require precise and accurate methods of scheduling and control. Using the right method, the project executor can carry out the project according to plan and any schedule deviations can be controlled effectively. This study aims to compare the effectiveness of using the bar chart/S-curve and computerized precedence diagram method (PDM) on scheduling and controlling building construction projects. Methods: The use of the two methods and their effectiveness during project work were analysed using a survey directed to building construction workers. Results: A total of 50 workers completed the survey. The use of PDM (using Microsoft Project) was significantly more effective than the bar chart/S-curve method in scheduling building construction projects (t count 15.516> t table 2.660) and controlling building construction projects (t count 17.233> t table 2.660). In addition, PDM was associated with allowing the project to find the critical path more quickly, overcoming project delays more effectively. Conclusions: By using PDM, a on a building construction project’s schedule for the implementation of the work can be changed immediately, if there is a delay or deviation of work. The findings of this study are useful for construction service companies and the development of construction management science in civil engineering study programs.

scholarly journals PENGARUH PENGELOLAAN LAPORAN KEUANGAN TERHADAP EFEKTIVITAS ARUS KAS PADA PT. MABAR MITRA BERSAMA

2021 ◽  
Vol 1 (1) ◽  
pp. 44-52
Author(s):  
Clarissa W Manawan ◽  
M. Iqbal
Keyword(s):  
Linear Regression ◽  
Cash Flow ◽  
Significant Influence ◽  
Financial Management ◽  
Financial Statements ◽  
Cash Flows ◽  
Routine Activities ◽  
Simple Linear Regression ◽  
Regression Test ◽  
The Future

Cash flow is the basis for financial calculations and the management of financialstatements carried out by the company and its routine activities. Improper financialstatement management and unstable income and expenditure streams will result in acrisis for the company in the future. The effectiveness of cash flow is a measure of theextent to which the success of cash flow has an impact on the achievement andconsideration of the consequences that will be received by the company. The purpose ofthis study was to determine whether the management of financial statements owned byPT. Mabar Mitra Bersama affects the effectiveness of cash flow. The population of thisstudy are 42 employees of PT. Mabar Mitra Bersama where 30 employees of the financedepartment are the sample in this study. Simple linear regression test is a data analysistechnique used by the author in this study with the type of data used in the form ofquantitative data collected from respondents who filled out questionnaires. Based on theresults of the research that has been done, the value of the financial statementmanagement variable has a significance smaller than the probability value of 0.05, or thevalue of 0.000 <0.05, then Ha is accepted, H0 is rejected. Variable X has a t arithmeticvalue (21.935) greater than t table (2.048) so it can be concluded that the managementof financial statements has a significant influence on the effectiveness of cash flows andit can be seen that the contribution of financial management in influencing theeffectiveness of cash flows is 94 .5% while other variables only affect 5.5%.

scholarly journals CREATIVE INTELLIGENCE IN THE MANAGEMENT SYSTEM OF CASH FLOWS OF THE ENTERPRISE

2019 ◽  
pp. 25-32
Author(s):  
O. Mykytiuk ◽  
T. Onysenko
Keyword(s):  
Cash Flow ◽  
Financial Management ◽  
Management System ◽  
Creative Thinking ◽  
Cash Flows ◽  
Critical Question ◽  
Flow Management ◽  
Cash Flow Management ◽  
Managerial Decisions ◽  
Standard Management

The article deals with the basic concepts of cash flow management taking into account the active use of the concept of creative thinking, based on which the main requirements for the process of cash flow management of the enterprise were formulated under the given conditions. To meet these requirements, all business flows (monetary, informational, material, etc.) must be synchronized. The method of synchronization and system-wide optimization is the latest concept of making managerial decisions in the field of finance. Also, the comparison of monetary flow definitions with Ukrainian and foreign authors has been made. which gave rise to the reflection of the author's definition of the category. Also important is the element of the combination of the latest concept of creative thinking in the financial management segment of the enterprise. In the article the etymology of the concept of money flow is considered and the brief meaning of the concept of creative thinking is given. The system of classification according to the objectives of cash flow management is created in article. We also analyzed the new types of cash flows which are formed in modern economic condition. The main conditions for the use of creative thinking in solving the tasks are reviewed. The necessary elements of creative thinking are determined. The main elements and methods of the creative thinking concept for effective cash flow management are named. In the article the proposed approach to developing an enterprise cash flow management system under risk and uncertainty was presented in the form of a sequence of corresponding steps, and also visualized in the form of a scheme. The critical question of activating the creative thinking of managers in a modern, rapidly changing environment, where standard management methods do not operate and do not have a powerful influence on enterprise activity, are also considered.

Cash flow modeling for construction projects

2014 ◽  
Vol 21 (2) ◽  
pp. 170-189 ◽  
Author(s):  
Tarek Zayed ◽  
Yaqiong Liu
Keyword(s):  
Cash Flow ◽  
Financial Management ◽  
Construction Projects ◽  
Mean Value ◽  
Major Step ◽  
Flow Management ◽  
Content Type ◽  
Cash Flow Management ◽  
Cash Flow Forecasting ◽  
The Impact

Purpose – Construction projects are well known for their complexity and ambiguity. These projects carry out higher risk than traditional ones because they entail high capital outlays and intricate site conditions. Poor financial management of these projects may lead to bankruptcy; therefore, effective cash flow management is essential. Although the peculiar characteristics of construction projects, the accuracy of cash flow forecasting has been a long lasting problem. The paper aims to discuss these issues. Design/methodology/approach – Many unforeseen factors affect the cash flow forecasting of construction projects. Therefore, the objective of the presented research in this paper is to examine the impact of these factors on contractor's cash flow. A model has been established by integrating analytic hierarchy process and simulation to examine the impact of various factors on cash flow. Data on the selected factors have been collected through questionnaires from various agencies in North America and China. Findings – Results show that the most significant factors are: change of progress payment, payment duration, financial position of the contractor, project delays, and poor planning. It also shows that the effect of cash inflow factors varied approximately from 9.7 to 16.3 percent with a mean value of 12.4 percent. Research limitations/implications – The implementation of the developed models are limited to few case study projects in testing the models. However, the developed models and framework are sound for future improvement. They are considered as a major step toward a broader cash flow planning. Practical implications – The developed methodology and models play essential roles in decision-making process. Originality/value – The developed model is expected to help contractors realistically forecast project cash flow under uncertainty. This may lead to more dependable and professional cash flow management, which might substantially reduce failures in construction business.

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