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 WAYS TO OPTIMIZE THE CASH RESOURCES MANAGEMENT AT THE ENTERPRISE

THE BULLETIN ◽  
2021 ◽  
Vol 2 (390) ◽  
pp. 183-189
Author(s):  
A. Akhmetova ◽  
A. Aimagambetova ◽  
A. Oralbayeva ◽  
G. Bisembayeva
Keyword(s):  
Cash Flow ◽  
Financial Stability ◽  
Continuous Process ◽  
Cash Flows ◽  
Factors Affecting ◽  
Cash Flow Management ◽  
Flow Of Funds ◽  
High Level ◽  
Financial Balance ◽  
Mana Gement

To maintain the financial stability of the enterprise at a stable high level and increase it, it is necessary to increase the accumulation speed of its own sources. To do this, it is necessary to find reserves, as well as provide material working capital from own sources. In addition, it is necessary to find an optimal balance of financial resources, the free flow of funds of the enterprise can ensure a continuous process of production and sale of products through their effective use. In the conditions of financial stability of the enterprise, we would like to note that effective cash flow mana-gement is the most important developed system.The cash flow management system of an enterprise is a system of tasks and methods for the formation, use and distribution of funds, as well as the development and implementation of management decisions related to the implementation of the company's turnover.The main objectives of cash mana-gement are not only to increase cash flows, but also to ensure the financial balance and stability of the enterprise in the course of its operation. This is done by balancing the amount of received and spent money and by coordinating it. It provides the mechanisms and indicators of financial stability of the enterprise, as well as the factors affecting cash to ensure the financial sustainability of the enterprise, methods and mechanisms of management of cash flows in terms of financial stability. Also, the effectiveness of cash management plays an important role in assessing the company's financial stability indicators. In order to achieve financial stability of the company, the factors affecting cash were considered. Any organization should choose methods for increasing, balancing, and synchronizing cash flows appropriate to its condition. The analysis reveals shortcomings in the company's activities and measures aimed at improving the efficiency of its work.

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.

scholarly journals INSTRUMENTS FOR CASH FLOW MANAGEMENT OF CONSTRUCTION ENTERPRISES

2020 ◽  
pp. 223-229
Author(s):  
Mariya Nashkerska ◽  
Nataliia Patriki
Keyword(s):  
Construction Industry ◽  
Cash Flow ◽  
Financial Stability ◽  
Cash Flows ◽  
Flow Management ◽  
Construction Enterprise ◽  
Cash Flow Management ◽  
Construction Enterprises ◽  
Payment Schedule ◽  
Definition Of

Introduction. Financial state of the construction enterprise, level of its financial stability, creditworthiness and liquidity depend on the availability of current assets, net cash flow (positive or negative), which is formed in the course of conducting payment transactions. The subject of the research is the flow of money of the construction enterprise. The research objectives: identifying the causes of current assets constraints at the construction industry enterprises; using projected cash flow budget and payment schedule as instruments of managing the enterprise cash flow. The purpose of the article is to determine the instruments for cash flow management of construction enterprises, taking into account the peculiarities of their activities. Method (methodology). The article suggests developing projected cash flow budgets and payment schedule to manage cash flows more efficiently (prevent negative net cash flow) based on estimates made by construction enterprises to determine the construction cost. The purpose of the payment schedule is to determine the flow of funds for the next day and the current week as a supplement and detailing of the projected cash flow budget. Research results. The use of the projected cash flow budget and payment schedule at the construction industry enterprises will help the management team to control the incoming and outgoing cash flows, form the data base for making decisions on the efficient use of funds. It will also promote the search for additional funding sources of the enterprise activity in the period of budget deficit as well as pre-justified investment of capital in the period of budgetary surplus Thus, the formation of projected cash flow budgets and payment schedule can be an important instrument for efficient cash flow management of construction enterprises. The method of formation of mutually agreed forecast budget of cash flow and payment calendar with definition of indicators of their efficiency in management of cash flows and a financial condition of the enterprise as a whole needs further improvement. The technique of forming mutually agreed projected cash flow budget and payment schedule along with the definition of their efficiency indicators in managing cash flows and the overall enterprise financial state requires further improvement.

scholarly journals KREATIVNO FINANSIJSKO IZVEŠTAVANJE O NOVČANIM TOKOVIMA

2017 ◽  
pp. 163
Author(s):  
Aleksandra Arsenijević ◽  
Tadija Đukić
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Market Value ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Position ◽  
A Company ◽  
Operating Activities

Financial statements should realistically show financial position, performance, and cash flows of a company. Creative financial reporting represents a deliberate manipulation of information in financial statements in order to create misperceptions on company operations. Creative financial statements are primarily intended for investors, in order to encourage them to purchase company shares and thus increase its market value. Creativity in compiling cash flow statements lies in presentation of operating activities as investing and financing activities, and vice versa.

scholarly journals PENGARUH ARUS KAS TERHADAP HARGA SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA PERIODE 2015-2018

AJAR ◽  
2020 ◽  
Vol 3 (01) ◽  
pp. 21-47
Author(s):  
Muchriana Muchran ◽  
M. Fajrin A. Thaib
Keyword(s):  
Cash Flow ◽  
Stock Prices ◽  
Stock Price ◽  
Descriptive Analysis ◽  
Cash Flows ◽  
Quantitative Descriptive Analysis ◽  
Quantitative Descriptive ◽  
Simultaneous Influence ◽  
Data Analysis Methods ◽  
Operating Activities

This study aims to analyze the effect of cash flow from operating activities, investment activities, funding activities that have an impact on stock prices and analyze the effect of cash flows from operating activities, investment activities, funding activities simultaneously affecting stock prices. Data analysis methods used are quantitative descriptive analysis and multiple regression analysis. Based on the results of a partial test, the effect of cash flow from operating activities on stock prices has a positive and significant effect, thus the first hypothesis is accepted. Based on the results of a partial test between investment cash flow to stock prices, it was found that cash flow from investment activities was not significant, thus the second hypothesis was rejected. Based on the results of a partial test between the cash flows of funding activities against the stock price, it was found that the funding cash flow was not significant. This can be interpreted that the funding cash flow has no effect on stock prices, thus the third hypothesis is rejected. And the results of simultaneous tests prove that there is a simultaneous influence between cash flow operating activities, investment activities and funding activities on stock prices. Thus the fourth hypothesis is accepted.

scholarly journals Management of grain production in modern conditions

2020 ◽  
Vol 17 ◽  
pp. 00112
Author(s):  
Irina Avdonina ◽  
Julia Kholopova ◽  
Tatyana Dozorova ◽  
Elena Tarasova
Keyword(s):  
Financial Stability ◽  
Crop Production ◽  
External Environment ◽  
Grain Production ◽  
Bankruptcy Risk ◽  
Agrarian Sector ◽  
Agricultural Enterprise ◽  
Ulyanovsk Oblast ◽  
Break Even Point

The paper outlines the role of grain-producing companies in the agrarian sector of Ulyanovsk Oblast. It determines basic competitiveness factors of grain-producing companies in the region. An agricultural enterprise devoted to crop production of the region was assessed to provide an overview of its internal and external environment in modern conditions. The SWOT and PEST analysis tools were used therewith. The overview evaluated the efficiency of grain production at the enterprise, determined a break-even point and margin of financial stability. This allowed the enterprise to be classified as financially unstable with a moderate bankruptcy risk. The paper also discusses the role of innovations (through the introduction of new promising and region-bound grain varieties and the use of highly-efficient liquid fertilizers) and their contribution to the development of grain production and increase in financial stability of the enterprise.

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

scholarly journals Modeling and Management of Power Supply Enterprises’ Cash Flows

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 1181
Author(s):  
Darya Pyatkina ◽  
Tamara Shcherbina ◽  
Vadim Samusenkov ◽  
Irina Razinkina ◽  
Mariusz Sroka
Keyword(s):  
Multiple Regression ◽  
Cash Flow ◽  
Power Supply ◽  
Financial Stability ◽  
Methodological Approach ◽  
Cash Flows ◽  
Management Policy ◽  
Flow Management ◽  
Cash Flow Management ◽  
Cash Inflow

The purpose of the study is to assess the efficiency of cash flow management at power supply companies of the CIS (Commonwealth of Independent States) countries. A methodological approach to cash flow forecasting with the use of linear and polynomial regression has been developed. The study is based on the data provided by 12 power supply companies operating in CIS member countries. Forecasting based on the generated polynomial models of multiple regression of cash flow for the power supply companies under study confirms the strong possibility of extrapolating the studied trends to future periods. Compared to the linear model, the polynomial one confirms higher values of the determination coefficients for the majority of power supply companies. The projected volumes of cash inflow, cash outflow, and net cash flows of power supply companies with the application of the described polynomial multiple regression models have a fairly high degree of approximation. The correlations between operating cash flows and outflows, between total cash inflow and outflow of the majority of power supply companies are high. The low level of synchronization between cash inflows and outflows of the companies under study is associated with the specifics of their financial and investment activities and the cash flow management policy. It has been proven that energy enterprises’ financial stability significantly depends on the synchronization and uniformity of cash flows. The proposed methodological approach allows identifying enterprises by the criterion of riskiness from the standpoint of the synchronization and homogeneity of their cash flows.

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

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