Abstract
The purpose of this article is to present cash flow as an accessible and efficient tool for the management of small and medium-sized egg companies, including those close to bankruptcy, aiming at their financial recovery. In order to achieve results, action research and the cash flow management method were adopted. The data were collected from a Brazilian egg producer that was close to bankruptcy. Data collection, implementation of the management tool and performance monitoring took place between July 2016 and December 2017. The use of the cash flow tool allowed the company’s financial recovery, which led to an increase of 951.5% in its cash and cash equivalents at the end of the research period, generating 22.5% of cash on the operating result and maintaining its minimum balance of cash by 23.6% above the limit required for it to keep operating safely. The method considered only the Cash Flow Statement, as it is the most practical and easy to understand for managers who have no management experience or training. The Balance Sheet and Income Statement were not explored. From the research results it is expected that the proposed management tool would be adopted by other small and medium-sized egg producers in Brazil, as well as in other branches of agribusiness. Hitherto, we are not aware of the availability of a tool proposed for small and medium companies in the animal production segment in Brazil. Therefore, it could be a valuable contribution to the socioeconomic development of this sector.
Highlights
Small and medium-sized companies are considered an integral part of the economy, because they have relevant participation in the development of a country (Bielikova & Mazanec, 2016)
The method considered only the Cash Flow Statement, as it is the most practical and easy to understand for managers who have no management experience or training
According to the Brazilian Service of Business Support for Micro and Small Companies (Sebrae, 2016) and the Statistics and Geography Brazilian Institute (IBGE, 2017a), companies incorporated in 2010 had a mortality rate of 44.4% and had their activities closed in the first two years
Summary
Small and medium-sized companies are considered an integral part of the economy, because they have relevant participation in the development of a country (Bielikova & Mazanec, 2016). Cash flow management provides the manager with the necessary financial information to signal a possible need for cash in advance, to prevent the company from running out of resources to support its operation. The benefit of this information is significant for small and medium-sized companies, because when compared to large companies, the cost of raising the money needed is higher and the availability of credit is more restricted (Gitman, 1997; Tauringana & Afrifa, 2013). Small and medium-sized rural producers are companies that demand good management of their property, as a family asset, but as a business that generates good results
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