Splitting of investing activities between replacement and expansion of fixed assets

Description

Thesis (MBA)-- Stellenbosch University, 2004. / ENGLISH ABSTRACT: The traditional cash flow statement consists of cash from operating activities, cash to
investing activities and cash from/to financing activities. In essence, literature
showed that, if cash from operating activities would be negative for two successive
years, such listed industrial company may be classified as fmancially inflexible,
resulting in a take-over by another company, a forced rights-issue or even a
delisting/bankruptcy.
The traditional cash from operating activities will be classified as EBIT - interest -
taxation + depreciation and +/- non-cash items +/- changes in working capital. To
enable capital-intensive companies to be classified as financially flexible or inflexible,
it was found necessary to identify replacement investment activities as opposed to
expansion investment activities. / AFRIKAANSE OPSOMMING: Die tradisionele kontantvloeistaat bestaan uit kontant uit bedryfsaktiwiteite, kontant
aan investeringsaktiwiteite en kontant van/aan finansieringsaktiwiteite. In essensie
het die literatuur aangedui dat, as kontant uit bedryfsaktiwiteite van twee
agtereenvolgende jare negatief is, sodanige genoteerde industriële maatskappy as
finansieel onbuigsaam geklassifiseer kan word en wat kan uitloop op 'n oorname deur
'n ander maatskappy, 'n geforseerde regte-uitgifte of selfs 'n denotering/bankrotskap.
Die tradisionele kontant uit bedryfsaktiwiteite sal geklassifiseer word as bedryfswins
- rente - belasting + depresiasie en +/- nie-kontantitems +/- veranderinge in
bedryfskapitaal. Om kapitaal-intensiewe maatskappye in staat te stel om geklassifiseer
te word as finansieel buigsaam of onbuigsaam, is daar bevind dat vervangende
investeringsaktiwiteite onderskei moet word van uitbreidings investeringsaktiwiteite.

Links & Downloads

1. http://hdl.handle.net/10019.1/50101

Tags

Capital

Cash flow

Investments

Dissertations -- Business management

Theses -- Business management

Additional Fields

Identifer	oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50101
Date	12 1900
Creators	Mokoena, Khethang
Contributors	Hamman, W. D., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business.
Publisher	Stellenbosch : Stellenbosch University
Source Sets	South African National ETD Portal
Language	en_ZA
Detected Language	Unknown
Type	Thesis
Format	107 p.
Rights	Stellenbosch University