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M.Com. (Business Management) / The objective of this study is to establish an alternative method in the presentation of cash flow information in order to provide management with a more effective technique to assist them in their decision making process. The presentation of cash flow information in accordance with current South African accounting standards, includes movements in working capital to maintain operations as part of deriving the amount of cash retained from operating activities. In this study it is suggested that movements in working capital should be treated similarly to that of fixed assets in the cash flow statements. This implies that movements in working capital should be included in cash utilised in investing activities with a distinction being made between maintaining and expanding operations. From literature available a model was developed to incorporate the change in presentation of movements in working capital. This change in the presentation of cash flow information enables management to determine whether dividends are in fact paid from internally generated cash or not. This model was applied to financial information of seven companies quoted on the Johannesburg Stock Exchange. The results are presented in Appendix 1 to this study where it is demonstrated that the model developed provides a more efficient method for cash flow reporting and that it can be adopted by management in their decision making process...

Magister Commercii - MCom / Previous research pertaining to the financial aspect of the mining industry has focused predominantly on mining products' values and the companies' sensitivity to exchange rates. There has been very little empirical research carries out in the field of the statistical behaviour of mning companies' cash flow data. This paper aimed to study the time-series behaviour of the cash flow data series of JSE listed mining companies. / South Africa

The first objective of the study is to determine the differences that exist between the two classes of ratios used to measure liquidity of a business entity. A comparison will then be made between these liquidity ratios. The second objective is to illustrate that cash flow ratios are a better indication of liquidity of an entity than the traditional ratios. The traditional and cash flow ratios will illustrate the position of liquidity with information utilised from the various bankrupt companies’ financial statements, including the statement of financial position and statement of cash flows. Four years’ financial statement data will be used to illustrate the deteriorating liquidity positions of the companies.

This diploma thesis deals with the company valuation. It contains theoretical background of valuation and description of the most important current methods and attitudes towards determination of market, liquidation and book company value. Subsequently, the theoretical methods are applied on the data of company EUROliftCZ s.r.o. Therefore financial, SWOT and strategic analysis is implemented and future development is forecasted. In concluding part different levels of company value are proposed. The outcome of the thesis is to be used by owners of the company.

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The purpose of this study was to compare the effectiveness of the current ratio and the cash conversion cycle in evaluating working capital cash flows from a diagnostic and a predictive aspect.The author analyzed two case studies. Each company was reviewed over a five-year period. For each company the writer calculated the annual current ratio and the cash conversion cycle and examined the trends over the five-year periods under review.Results of these analyses indicated that the cash conversion cycle was more effective than the current ratio in diagnosing the health of each company’s working capital cash flows. The cash conversion cycle also signaled a change in liquidity earlier than the current ratio, suggesting that the former had more effective predictive capabilities than the latter. The central implication of these findings is that the cash conversion cycle might be a more useful diagnostic and predictive tool than the current ratio in liquidity analysis.The research findings were also consistent with improvement or deterioration in each company’s underlying strategic performance as measured by critical changes in its competitive position at the same point in time as the cash conversion cycle trend shifted.These results suggest that the cash conversion cycle may provide insights into the impact of planned product-market strategy on shareholder value.

Most studies of the investment-cash flow sensitivity hypothesis in the literature compare estimates of the sensitivity coefficients from cross sectional regressions across groups of firms classified into more or less financially constrained groups based on some measure of perceived financial constraint. These studies report conflicting results depending on the classification scheme used to stratify the sample. They have been criticized on conceptual and methodological grounds. In this study we mitigate some of these problems reported in the literature by using the insights from Cleary, Povel and Raith (2007) in a new research design. We test for the significances of the changes in the investment-cash flow sensitivity, in a time-series rather than cross sectional framework, for the same set of firms surrounding an exogenous shock to the firms' information asymmetry. The CPR (2007) model predicts an unambiguous increase (decrease) in investment-cash flow sensitivity when information asymmetry of the firm increases (decreases). Further, by examining the differences in the sensitivity coefficients we expect some of the biases in the coefficient from measurement errors in Q to cancel out. The two events we study are (i) the implementation of SOX which is expected to decrease information asymmetry from improved and increased disclosure and (ii) the deregulation of industries which is expected to increase information asymmetry largely from the lifting of price controls and entry barriers. We report that information asymmetry decreases following SOX and that there is a commensurate decrease in the investment-cash flow sensitivity, pre- to post SOX. The hypothesis that a greater change in investment cash flow sensitivity is associated with a greater change in information asymmetry is only weakly supported by the data. We also report that information asymmetry increases following deregulation with a commensurate increase in investment cash flow sensitivity, pre to post deregulation. The hypothesis of a greater increase in the sensitivity for subsamples with a greater increase in information asymmetry is not supported by the data. Overall, however, the study supports the investment-cash flow sensitivity hypothesis using a research design that corrects for some of the problems identified in the existing literature on the hypothesis. / Ph. D.