Thesis (MBA)--Stellenbosch Universiteit, 2000. / ENGLISH ABSTRACT: The important changes in real interest rates, deregulation, amalgamation and the change of enterprise form from co-operatives to companies, require a new approach towards the utilisation and management of capital in the agricultural business. The economic environment has changed from a situation where management used nearly uncontrolled amounts of capital to get turnover, towards a capital scarce situation where capital is applied with caution and where profits are required. This new approach calls for focus on working capital. This study proposes a conceptual approach to the evaluation of the management of cash. The concept of a STREAM / WELL of cash, as used by Hamman (1999) at the Business School of the University of Stellenbosch, is described. The cash flow statements of some co-operatives have been standardised to produce comparable figures for income from operating -, investment- and financing activities. The STREAM / WELL approach with a graphic presentation of income from operating -, investment - and financing activities are used to demonstrate the usefulness thereof. The conclusion is made that profit margins are too low in this kind of business because of a lower than needed mark-up. The working capital cycle is too long in most of the businesses, which indicates that too much working capital is used to generate the income. Lastly, the growth in turnover is as a determinant factor for working capital, too unpredictable and uncontrolled because of inherent qualities of this business environment. The risk in this market, because of climate and uncontrollable factors, is not calculated but indications are that this risk is high. / AFRIKAANSE OPSOMMING: Die ingrypende verandering van reële rentekoerse, deregulering, amalgamasies en omskakeling van koöperasies na maatskappye, verg nuwe benaderings tot die bestuur en aanwending van kapitaal in die landbou. Vanuit 'n omgewing waar omsette nagejaag is met feitlik onbeperkte toegang tot fondse, het die landbouondernemings se benadering verander na ondernemings met beperkte kapitaal wat oordeelkundig aangewend moet word en bevredigende opbrengste moet lewer. Hierdie tendens noodsaak 'n gefokusde benadering tot die bestuur van bedryfskapitaal. Die studie stel 'n konsepsuele benadering voor om ondernemings se bestuur van kontant, soos gerapporteer in kontantvloeistate, te evalueer. Die konsep van 'n STROOM / PUT benadering, soos jare lank deur Hamman (1999) gebruik om die begrippe te verduidelik aan die Bestuurskool van die Universiteit van Stellenbosch, word omskryf. Die kontantvloeistate van 'n aantal landbouondernemings is gestandaardiseer om vergelykende opbrengste uit bedryfs-, investerings- en finansieringsaktiwiteite te bereken. Die STROOM / PUT benadering word saam met 'n grafiese voorstelling van die bydraes uit bedryfs-, investerings- en finansieringsaktiwiteite gebruik om die aanwending daarvan te demonstreer. Daar word tot die slotsom gekom dat winsgewendheid te laag is in ondernemings van dié aard hoofsaaklik omdat winsgrense te laag is. Oor die algemeen is die bedryfskapitaalsiklus te lank, wat daarop dui dat te veel bedryfskapitaal aangewend word om die opbrengs te genereer. Laastens is die groei in omset, as bepaler van die vraag na bedryfskapitaal, ongekontroleerd en wisselvallig as gevolg van die inherente eienskappe van die landbou sakeomgewing. Die risiko opgesluit in dié markomgewing wat grootliks deur klimaat en ander onbeheerbare faktore beïnvloed word, word nie bereken nie, maar die studie dui op besondere hoë risiko's van dié aard.

Thesis (MBA)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: Both the income statement and the cash flow statement of a company provide useful information to the user of financial statements. The net profit after tax in the income statement and the cash from operating activities in the cash flow statement have basically the same transactions as source, however they still differ, because of timing differences between the accrual of income and expenses and the cash receipts or payments thereof, as well as the inclusion of items in the net profit after tax that rather forms part of cash flow from investment activities. A growth in turnover usually coincides with an increase in non-cash working capital. When the company is expanding at too high a rate, too much of his cash resources are taken up by the increase in non-cash working capital and that could lead to cash flow problems. This trend can be plotted on a graph, with a growing net profit after tax and a decline in the cash flow from operating activities. The two lines move away from each other when there is a significant difference between the net profit after tax and the cash flow from operating activities. This study tries to measure the angle between the two lines where they reach the danger zone. Users of financial statements will be able to use this as an indicator of companies that are going to be in cash flow trouble over the next period. In order to measure this angle when the company reaches the danger zone, 365 listed industrial companies were studied. The net profit after tax and the cash flow from operating activities were both transformed into an index, with cash flow relative to net profit. The difference between the index strings was calculated. This study only focuses on companies with an index-difference where the cash flow from operating activities is smaller than the net profit after tax. An index-difference of -2 was identified as the possible danger zone. In order to substantiate this figure, companies with an index-difference of -2 or larger negative that still were listed at the time of the study were examined to find the reason for the difference. Items that do not form part of the cash flow from operating activities cannot be used in the calculation of the index-difference, because it will generate a permanent difference between the net profit after tax and the cash from operating activities. Companies that have a huge negative index-difference only because of such items are not in the danger zone. 33 companies with an index-difference of -2 or more negative were identified. Focus was placed on the thirteen companies that did not have losses and that were still listed at the time of the study. Six of these companies were removed from the danger list after the individual examination, because of other reasons for the difference rather than an increase in non-cash working capital. That leaves seven companies that are shown by this study to be in danger to get into serious cash flow trouble in the foreseeable future. A few additional companies were examined which led to another six companies being placed on the danger list. Only time will tell whether these companies do get into serious financial difficulty. If so, the index-difference can be calculated as an indicator of the point when a company, regardless of a strong growth in turnover, and sometimes because thereof, does not generate enough cash from operating activities to finance the growth in non-cash working capital. Unless the company has a holding company that is willing to pour more cash into the company, or unless the company can do a successful rights issue, it will find itself in the position where it cannot finance the expansion and also cannot obtain more additional funding. / AFRIKAANSE OPSOMMING: Beide die inkomstestaat en kontantvloeistaat van 'n maatskappy verskaf nuttige inligting aan gebruikers van finansiële state. Die netto wins na belasting uit die inkomstestaat en die kontantvloei uit bedryfsaktiwiteite uit die kontantvloeistaat het basies dieselfde transaksies as bron, maar verskil tog, hoofsaaklik vanweë tydverskil in die erkenning van die toevalling van inkomste en uitgawes en die kontantontvangstes en -betalings daarvan, asook vanweë die insluiting van items in die netto wins na belasting wat eerder deel vorm van die kontantvloei uit investeringsaktiwiteite. Wanneer die maatskappy 'n groei in omset toon, gaan dit gewoonlik gepaard met 'n toename in nie-kontant bedryfskapitaal. Wanneer die maatskappy te vinnig groei, word te veel van sy kontantbronne vasgevang in die verhoogde nie-kontant bedryfskapitaal en dit kan lei tot kontantvloeiprobleme. Hierdie tendens kan op 'n grafiek uitgebeeld word met 'n stygende netto wins na belasting, terwyl die kontantvloei uit bedryfsaktiwiteite daal. Wanneer daar 'n aansienlike verskil tussen die netto wins na belasting en die kontantvloei uit bedryfsaktiwiteite is, beweeg die twee lyne uit mekaar. Dié studie poog om die grootte van die hoek tussen die twee lyne wanneer die gevaarsone bereik word, te bepaal. Dit kan dan deur gebruikers van die finansiële state as 'n aanduiding gebruik word om te voorspel watter maatskappye oor die volgende tydperk kontantvloeiprobleme sal hê. Ten einde die grootte van die hoek te meet waar die maatskappy die gevaarsone binne beweeg is 365 genoteerde industriële maatskappye se data bestudeer. Die netto wins na belasting en die kontantvloei uit bedryfsaktiwiteite is beide as 'n indeks uitgedruk, laasgenoemde relatief tot eersgenoemde. Die verskil tussen die twee indeks-reekse is bereken, naamlik die indeks-verskil. Die studie is slegs gefokus op maatskappye met 'n indeks-verskil waar die kontantvloei uit bedryfsaktiwitete kleiner is as die netto wins na belasting. 'n Indeks-verskil van -2 is geïdentifiseer as die moontlike gevaarsone. Ten einde hierdie syfer te steun is die maatskappye wat ten tye van die navorsing steeds genoteer is en 'n indeks-verskil van -2 of groter negatief het, individueel ondersoek om die rede vir die indeks-verskil vas te stel. Items wat op 'n ander plek in die kontantvloeistaat as in die bedryfsaktiwiteite hanteer word, kan nie in ag geneem word in die berekening van die indeks-verskil nie, aangesien dit 'n permanente afwyking tussen die netto wins na belasting en kontant uit bedryfsaktiwiteite sal veroorsaak. Maatskappye wat dus bloot as gevolg van sodanige items 'n groot negatiewe indeks-verskil het, val nie in die gevaarsone nie. 33 maatskappye is geïdentifiseer met 'n indeks-verskilvan -2 of groter negatief. Daar is gefokus op die dertien maatskappye wat nie verliese gely het nie en steeds ten tye van die afhandeling van die studie genoteer was. Ses van hierdie maatskappye is tydens die individuele ondersoek van die gevaarlys gehaal aangesien daar ander redes vir die groot indeks-verskil was as 'n toename in nie-kontant bedryfskapitaal. Dit laat dan sewe maatskappye wat deur dié studie aangedui word as om moontlik finansiële probleme op te tel binne die afsienbare toekoms. 'n Paar addisionele maatskappye is ondersoek, waarna 'n verdere ses op die gevaarlys geplaas is. Slegs die tyd sal leer of die betrokke maatskappye wel in 'n finansiële verknorsing beland. Indien wel, kan hierdie indeks-verskil bereken word en as 'n aanduiding gebruik word van die punt wanneer 'n maatskappy, in baie gevalle ten spyte van goeie groei in omset, maar dan ook juis as gevolg daarvan, nie genoeg kontant uit bedryfsaktiwiteite genereer om die groei in nie-kontant bedryfskapitaal te finansier nie. Tensy die maatskappy 'n houermaatskappy het wat bereid is om nog kontant te stort in die maatskappy, of tensy die maatskappy 'n suksesvolle regte-uitgifte kan maak, vind hy homself in die posisie dat hy nie die uitbreiding kan finansier nie en dat hy ook nie meer addisionele finansiering kan bekom nie.

Thesis (MBA)--Universiteit van Stellenbosch, 1995. / ENGLISH ABSTRACT: Traditional financial ratios are used by different analysts to predict and evaluate various elements of a company. However, such ratios all suffer from the basic limitation of accrual-based accounting, hence the perception that cash flow ratios may be more suitable and possibly even more appropriate to evaluate companies. Most of these applications employ parametric statistical procedures of which the validity partly depends on the underlying distributional properties of the ratio involved. This study project is an evaluation of the underlying distributional properties of forty seven cash flow ratios based on the published annual results of 350 industrial companies, listed on the Johannesburg Stock Exchange for the period 1975 to 1993. As an initial test, the results of the ratios were subject to the null-hypothesis of normality as reflected by the p-values of the chi - square and Kolmogorov-Smirnov tests respectively . Secondly, the study project attempted to give an indication of the underlying distributional properties by comparing the average with the median of the various cash flow ratios. The first evaluation was done for each ratio. after the data was aggregated, for both the various divisions and over all the financial periods to evaluate what is referred to as the sector as a whole. The results of this evaluation clearly indicate that the underlying distributional properties are definitely not normally distributed. However, the lack of normality may be founded in either the lack of homogeneity between the various divisions. or due to the aggregation of the various financial periods . A second evaluation was done on the individual ratios for each financial period. Although the different years lead to slightly different results it is still apparent that the null-hypothesis of normality for the majority of ratios are being rejected, especially consistent results to this effect were found for the period 1988 to 1993. A third and final evaluation was done on all the different ratios for the individual divisions. Again the results for the different divisions vary, but once again it ;s apparent that the null-hypothesis of normality is being rejected for the vast majority of the ratios . In this regard the results of specifically divisions industrial holding (15), food (25), engineering (28) and electronics (29) are particularly consistent. The lack of normality in the sector analysis may indicate the presence of specific division relevant characteristics, while the results of the intertemporal evaluation indicate that the distributional properties approximate normality by aggregation over time . The analysis also proves beyond any doubt that irrespective of whether disaggregation is done over either financial periods or between the different divisions, ratios 02, 03, 06, 15, 16 and 17 are positive skewely distributed . Accordingly, ratios 13 and 27 are negative skewely distributed . If one has to advise a researcher or practitioner to whom an underlying normal distribution of a cash flow ratio is important, one would probably advise in the first instance to disaggregate over time, as a second app roach to disaggregate over divisions, but never to treat the industrial sector as a pooled sample. / AFRIKAANSE OPSOMMING: Tradisionele finansiele verhoudings word deur verskeie markontleders vir verskillende voorspellings aangewend . Aangesien die verhoudings almal onderworpe is aan die beperking van opgelope rekeningkundige waarde word kontantvloeiverhoudings voorgehou as 'n nuttiger en moontlik selfs doeltreffender metode om ondernemings te evalueer. In die meeste van die toepassings word parametriese statistiese prosedures gebruik, waarvan die geldigheid gedeeltelik berus op die onderliggende verdelingseienskappe van die verhoudings. Die werkstuk is 'n studie van die onderliggende verde' ingseienskappe van sewe-en-veertig kontantvloeiverhoudings S005 jaarliks vir die tydperke 1975 tot 1993 gepubliseer is in die finansie1e verslae van 350 maatskappye wat genoteer is in die nywerheidsektor van die Johannesburgse Effektebeurs. In die verband is die resultate van die verhoudings eerstens onderwerp aan die nulhipotese van normaliteit deur dit te evalueer aan die hand van die p-waarde van sowel die chi-kwadraat- as Kolmogorov-Smirnovtoetse. Vervolgens dui die werkstuk die onderliggende verdeling aan, deur die gemiddeld en mediaan van die kontantvloeiverhoudings te vergelyk. Vir die eerste evaluasie is alle verhoudings oar jie verskillende finansiele tydperke en van die verskillende afdelings saamgevoeg am die sektor in die geheel te eva1ueer. Vol gens die evaluasie is die onderliggende verde1ing van die verhoudings nie normaal nie. Oit mag moontlik logies verklaar word deur die heterogeniteit van die verskil1ende afde1ings, of weens die samevoeging van die resultate oar verskillende finansiele tydperke. Tweedens is die onderskeie finans;ele tydperke afsonder1ik ont1eed . A1 het die resultate van die onderskeie termyne effens verskil, is dit duidelik dat die nulhipotese van normaliteit by die oorgrotte meerderheid van verhoud ings beslis verwerp moet word. Dit is interessant dat in die resu1tate van spesifiek 1988 tot 1993 die hipotese absoluut konsekwent verwerp word. laastens is die verhoudings afsonderlik vir elk van die onderskeie afdelings ontleed. Weereens het die resultate van die onderskeie afdelings verskil, maar dit was oak weer duidelik dat die oor9rote meerderheid van verhoudings die nulhipotese van normaliteit verwerp . In die verband was veral die resultate van die afdelings nywerheids beherend (15), voedsel (25). ingenieurswese (28) en elektronika (29) merkwaardig konsekwent. Die gebrek aan normaliteit tussen die verskillende afdelings mag maontlik aantoon dat sekere eienskappe, eie aan die afdeling, die verdelingseienskappe beinvloed . Die resultate van die intertemporale studie toon beslis dat normaliteit benaderd word indien verhoudings oar tyd saamgevaeg word. Wat die ontleding ook bo alle twyfel bewys is dat die verhoudings 02, 03, 06, 15, 16 en 17 vir die sektor as 'n geheel, die intertemporale- en die kruissektorale-ontledings konsekwent onderliggend positief skeef verdee1 is. Verhoudings 13 en 27 is egter onderliggend negatief skeef verdeel. Aanbevelings rakende die onderliggende verdeling van kontantvloeiverhoudings is beslis om eerstens verskillende finansiele tydperke te onderskei en tweedens die verskillende afdelings. maar beslis om nie die nywerheidsektor as 'n geheel te evalueer nie.

Thesis (MBA)--Stellenbosch University, 1997. / ENGLISH ABSTRACT: In this study it is attempted to determine whether delisting of companies on the Johannesburg Stock Exchange is preceded by certain cash flow patterns. Information was collected by summarising the Source and Application of Funds statements and Cash Flow statements of companies into a spreadsheet model. The cash flows of companies were then presented graphically over time with the intent to derive possible patterns. It was also attempted to assess the impact of depreciation on the cash flow situation, as well as the possible reasons for share Issues. Although the sample may be too small for definite conclusions, it seems as if certain cash flow patterns preceded delisting and that share issues are related to investing activities. Depreciation does not seem to have a substantial effect on the cash flow situation. / AFRIKAANSE OPSOMMING: In hierdie studie word daar gepoog om vas te steI of denotering van maatskappye op die Johannesburgse Effektebeurs voorafgegaan word deur sekere kontantvloei patrone. Inligting is versarneI deur maatskappye se Bron en Aanwending van Fondse state en Kontantvloeistate in 'n sigbladmodeI saarn te vat. Die kontantvloeie van maatskappye is dan grafies voorgesteI oor tyd ten einde moontlike patrone af te lei. Daar is ook gepoog om die impak van waardevermindering op die kontantvloei situasie te bepaaI, asook die moontlike redes vir aandeeluitgifte. AlhoeweI die monster moontlik te klein is vir definitiewe afleidings wil dit tog voorkom of sekere kontantvloei patrone denotering voorafgaan en dat aandeeluitgifte verband hou met investeringsaktiwiteite. Dit blyk dat waardevermindering nie 'n wesenlike rol in die kontantvloei situasie speel nie.

Thesis (MBA)--University of Stellenbosch, 1998. / ENGLISH ABSTRACT: In many ways, the cash flow statement can be more informative than the other financial statements. It is relatively freer from subjective accounting and reveals managerial choices, such as investment and financing decisions, which are less apparent from the balance sheet or income statement. One of the components of the cash flow statement, cash flow from operations, is the primary focus and the primary variable of interest in this study. The study set out to create a database for the University of Stellenbosch Business School by using cash flow ratios of listed industrial companies on the Johannesburg Stock Exchange for the period 1974 to 1997. This is an initial attempt to have such a facility in place to assist future researchers in establishing patterns present in the ratios. Descriptive statistics were calculated for all the ratios. Twenty-two ratios were calculated in three ways: (a) Ratios were pooled over time and over sector; (b) Ratios were pooled over time for each of the 17 sectors; and (c) Ratios were pooled over sectors for each of the years 1974 to 1997. In addition, chi-square and Kolmogorov-Smirnov tests for normality were conducted. To get insight into the potential patterns, some of the statistical properties of cash flow ratios have been examined with particular reference to two ratios, (ratio 14 and ratio 20). These were chosen since they are considered to be the most important ratios in the study. / AFRIKAANSE OPSOMMING: Die kontantvloeistaat kan op baie maniere meer inligting as die ander finansieIe state verskaf. Dit word relatief gesproke minder deur subjektiewe rekerungkunde beYnvloed en dit 1aat die klem val op bestuursbesluite, S005 investerings- en finansieringsbesluite. Laasgenoemdes is minder duidelik waameembaar as daar na die balansstaat en inkomstestaat gekyk word. Kontant uit bedryfsaktiwiteite. een van die komponente van die kontantvloeistaat, is die primere fokus en die belangrikste item in hierdie studie. Die doel van die studie is om 'n datahasis vir die Bestuurskool van die Universiteit van Stellenbosch daar te stel, deur gebruik te maak van kontantvloeiverhoudings van aile genoteerde industriele maatskappye op die Johannesburg Effektebeurs vir die periode 1974 tot 1997. Dit was 'n eerste poging om so 'n fasiliteit daar te stel ten einde toekomstige navorsers in staat te stel om patrone aanwesig in die verhoudings waar te neem. Beskrywende statistiek is bereken Vlf al die verhoudings. Twee en twintig verhoudings is bereken op drie maniere: (a) Verhoudings gepoel oor tyd en oor sektore heen; (b) Verhoudings verpoel oor jare vir elk van die 17 sektore; en (c) Verhoudings verpoel oor sektore heen, per jaar vanaf 1974 tot 1997. Verder is die chi-kwadraat en die Kolmogorov-Smirnoftoetse vir normaliteit gedoen. Twee van die verhoudings. verhoudings 14 en 20, is uitgesonder as die belangrikste verhoudings in die studie. Ten einde insig in die potensieie patrone van die kontantvloeiverhoudings te verkry, is die statistiese eienskappe van hierdie twee verhoudings verder ondersoek.

This study uses concurrent verbal protocol analysis to examine the decision processes of lenders as they evaluate the financial information of a loan applicant. Of specific interest is the lenders' use of Statement of Financial Accounting Standards Board No. 95 (FAS 95), Statement of Cash Flows, in that decision process.

One of the critical issues that face the accounting profession today involves choosing among alternative accounting information modes. This dissertation provides comparative empirical evidence on the predictive power of accrual-based accounting signals versus cash-flow accounting signals versus both of these signals jointly. The empirical hypotheses compare the degrees of association between the market evaluative criteria, market beta and security price behavior, and the different accounting signals. The research methodology employed includes the following. 1. Market beta and changes in security prices are used as the evaluative criteria. 2. Two regression models are developed and used to test the predictive power of the alternative accounting signals. 3. Several specifications for each model are used. These specifications are simple regression, multiple regression, interaction effect, partial correlation, incremental correlation, and time series and cross sectional analysis.

The primary purpose of this dissertation is to develop the arguments for reporting directly on a company's cash flows in its published financial statements. Specifically, the Free Cash Flow (FCF) model of economist Joel Stern is analyzed and critiqued as a basis for a revised reporting scheme.

Text in Afrikaans / Die primere doelstelling met hierdie studie was om 'n kritiese beskouing van die staat van kontantvloei-inligting (hierna genoem die staat) as element van finansiele verslagdoening te verskaf met die oog op die identifisering van moontlike leemtes, tekortkominge en nut wat die gebruikers van die staat ondervind. Die studie dui daarop dat alhoewel daar 'n aantal leemtes en tekortkominge in die huidige staat is, daar wei 'n behoefte aan die kant van die gebruiker na 'n staat van kontantvloei-inligting as deel van die finansiele state bestaan. Die waarde van sodanige staat is deurgaans in die literatuurstudie sowel as met die empiriese studie beklemtoon. Dit het ook in die studie na vore gekom dat die staat vir gebruikers van groot waarde is in die evaluering van solvensie en risiko in bepaalde ondernemings. Die gebruikswaarde van die staat maak dit dringend noodsaaklik dat daar onverwyld aandag aan die leemtes geskenk moet word. Verskeie aanbevelings vir 'n verbeterde staat van kontantvloei-inligting word dan ook in hierdie studie gemaak en dit sluit 'n moontlike model in. 'n Aantal aanbevelings rondom die praktiese aspekte van die gebruik van die staat word ook gemaak, omdat dit die potensiaal het om 'n onmisbare hulpmiddel vir die gebruiker te word. / The prime objective of this study was to take a critical look at the cash flow information statement (hereinafter named the statement) as an element of financial reporting. It was based on the experience of the users in view of identifying possible gaps, shortcomings and benefits. The study suggests that a definite need occurs from the users side for cash flow information as part of the financial statements. It was also evident from the study that the statement is a very important tool for the evaluation of solvency and risk. The usability of the statement necessitates that attention be given to the gaps. Several recommendations, including a possible model were made for an improvement in the statement. A number of recommendations were also made regarding practical aspects for the use of the statement, since it has the potential to be an indispensable tool for users. / Financial Accounting / M. Com. (Accounting)

Li Xue. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2001. / Includes bibliographical references (leaves 36-38). / Abstracts in English and Chinese.