Net Cash Flow Research Articles

The Impact of Chief Executive Officers on Earnings Management of Listed Companies in Vietnam

Profit is one of the indicators reflecting the growth in the operation of the business and is the fundamental goal in evaluating the manager's success this study examined the impact of Chief Executive Officers (CEO) on the earnings . Thus, management of companies listed on the Vietnam Stock Exchange. Using panel data of 485 listed companies in HOSE and HNX in the period 2016 - 2020, the results of multivariate regression according to the fixed effect model found that CEO expertise and founder were positively correlated with earnings management, and CEO age harmed earnings management. However, there is insufficient evidence to prove that CEO gender impacts earnings management. In addition, the study also admited that net cash flow from operating activities. Financial Leverage is related to earnings management. This study's findings contributed to the existing literature regarding the scientific debates about CEOs' characteristics, earnings management, and discretionary accruals in an emerging economy. Finally, the author proposed that managers engaged in earnings management for personal gain using their influence to interfere in applying policies for the earnings management of listed companies in Vietnam.

A cost-benefit analysis for the appraisal of social and market prices in the probabilistic seismic risk assessment of building portfolios: A methodology for the evaluation of disaster risk reduction programs

A cost-benefit analysis can be a milestone for the probabilistic seismic risk assessment of building portfolios. This approach appraises social, economic, and technical aspects as evaluation criteria, becoming a reliable method for more accurate feasibility evaluation of Disaster Risk Reduction (DRR) programs. This paper proposes a simplified methodological approach to estimate the feasibility of intervention campaigns directed to seismic retrofitting for building portfolios. Its feature is the number of variables it encompasses such as: multiple intervention levels, resource distribution, maximum repair time, direct and indirect losses, simplified seismic resilience, number of casualties, amount of replacement buildings, and expected service life. Then, all these factors are analyzed using a conventional probabilistic seismic risk assessment, followed by the estimation of net cash flows in terms of social and market prices. The final profitability and feasibility are determined based on investment indicators (Net Present Value, Internal Rate of Return, and Cost-Benefit ratio). In addition, plots of maximum repair time and simplified seismic resilience (as a function of the resource distribution) are proposed as novel decision-making tools. To illustrate the methodology, a case study of six building portfolios grouped into two categories is presented. The portfolios are conformed by a Peruvian school typology designated as 780-PRE, typically two-story high with reinforced concrete moment-resisting frames plus infill-walls and confined masonry walls. The demonstrative case included eleven target scenarios to assess the as-built and several intervention conditions, based on incremental seismic retrofitting measures. Results confirm that social prices influence the decision-making process, even making feasible projects that were initially unfeasible (when solely appraised under market prices). Finally, the authors propose further applications of this methodology as a tool to support the development of reliable DRR-programs.

Can carbon payments improve profitability of traditional conventional and organic cocoa agroforests? A case study in the Eastern Region of Ghana

This study investigates the carbon (C) sequestration of traditional cocoa agroforestry systems in the Eastern Region of Ghana and the theoretical impact of CO2 emission rights trading on their profitability. The study was conducted in four villages of Suhum Municipality, two each with either conventional or organic cocoa cultivation systems. Profitability was calculated using net present value of net cashflow (NPV), benefit cost ratio (BCR), and modified internal rate of return (MIRR). Carbon revenues were calculated using CO2 emission trading rights prices ranging from 7.5 € tCO2eq.−1 (average EU trading price) to 42 € tCO2eq.−1(estimated social cost of CO2 release). We tested the sensitivity of profitability indicators with three scenarios: 300% increase in interest rates, 20% yield reduction, and 10% increase in cost. NPV without CO2 payment for conventional agroforest was 20% higher than that of organic agroforest. Contrarily, BCR for the organic system was 30% larger than for the conventional counterpart. Profitability indicators for both systems were most sensitive to the 300% interest rate. The average C sequestered was 153 ± 13 t ha−1 whereby soil contributed the largest fraction with an average of 88 ± 11 t ha−1. Total C sequestered in the organic system was 30% higher than in the conventional system. In conclusion, CO2 payments can improve the attractiveness of organic cocoa cultivation for farmers, although the paid price must be oriented to the estimated social costs caused by CO2 release rather than the currently used trading price in the EU.

Determinants of Net Cash Flow of Mining Companies in Ghana

Determinants of Net Cash Flow of Mining Companies in Ghana

An analysis of net farm income to guide agricultural policies in the Ethiopian highlands

BackgroundAs part of a larger food security project under Ethiopia’s Agricultural Growth Program (CASCAPE), 928 farms in the Ethiopian Highlands were surveyed between 2012 and 2017. The aim was to determine whether the Net Farm Income (NFI) is a relevant indicator that drives food security at the household and the farm level, and to determine its drivers across six study regions of Ethiopia (i.e., Addis Ababa, Hawassa, Haramaya, Bahir Dar, Jimma, and Mekelle). The effect of different socio-economic and environmental drivers on NFI was determined using descriptive statistics, correlation analysis, k-means clustering and comparison of high and low NFI quartiles per region.ResultsThe average annual NFI in Ethiopia was just below 1000 US$ per farm household, with Addis Ababa region leading. Jimma and Bahir Dar were just above average, and the others were at the lower end. In the correlation analysis, NFI was best explained by farm size, net cash flow and the use of nitrogen fertilizer. Male-headed households earned considerably more than female-headed households. The k-means clustering yielded two major farm types on the basis of significant differences in rainfall, farm size, education level, crop diversity, cash flow and N fertilizer use. An analysis of richest 25% versus poorest 25% per region showed Addis Ababa, Bahir Dar, Jimma and Mekelle regions all had significant differences between the two quartiles in farm size, crop diversity and N fertilizer use, whereas Hawassa and Haramaya regions seem more homogeneous.ConclusionsThe survey results present new entry points for informed decision making through targeted, area-specific food security policies in the Ethiopian Highlands by virtue of insight in the regional spread of NFI and its driving forces. Important deductions from the results are policy actions that are obtainable from the results. For example, the farm-size variable provides an indicator on the type of policy action that is required to determine the farm sizes that generate sufficient returns on the overall farming investment. Next, cash-flow is a variable that speaks to the idea on the amount of hard-cash needed by a household to enable it get meaningful returns on cash invested on farming, or a guaranteed minimum return on any specific crop(s) or animal production. Nitrogen fertilizer as an analysis variable is predominantly a crop productivity indicator. In order for the farming to be sustainable, there is need for policy articulation on the amount of nitrogen required for specific yields and crops. Finally, location and rainfall parameters require recommendations on location specific crop management policies that correspond to the rainfall amount, soil types, ecological zones and distance from the markets as maybe gleaned from the results.

Valuation of an unexplored oilfield under uncertain oil price and reservoir condition: A stochastic dynamic programming approach with simulation-based reward function

We develop an unexplored oilfield valuation model under uncertain exploration outcomes, reservoir conditions, and oil prices. The exploration outcomes follow a binomial process, while oil prices are represented using the Schwartz-Smith model. The reservoir conditions are characterized by the joint probability distribution of post-discovery parameters estimated using a machine learning approach. The corresponding valuation model is a typical stochastic dynamic programming problem with a simulation-based reward function. The net cash flow lattice takes the form of a recombining quadrinomial derived from the discrete representation of the Schwartz-Smith oil price model. We apply backward induction with embedded real-coded genetic algorithms to the net cash flow lattice to calculate the oilfield value. The model allows for field abandonment before lease expiration if the remaining reserve is uneconomical. To improve computational efficiency, we combine the Latin hypercube sampling and antithetic variates to reduce the variances. The model is implemented in an unexplored oilfield under two scenarios of oil presence probability: 100% and 75%. In the first scenario, we obtained a mean oilfield value of US$5.5 million with a CVaR of US$0.79 million, while in the second, we came up with a mean of -US$0.77 million and a CVaR of US$31.74 million.

The impact of liquidity on the financial growth of industrial companies listed on the Amman Stock Exchange

This research reveals the cash liquidity’s impact on the sustainability of the financial growth of the industrial public shareholding companies listed on the Amman Stock Exchange (ASE) between (2015) and 2021. The research population consists of (53) ASE-listed public shareholding industrial companies. A purposeful sample of (28) companies whose financial statements have provided all the data is selected as they meet the research variables during the research years. Using (SPSS), the appropriate statistical methods are utilized for data analysis. The findings indicate that cash flow with all its indicators; net cash flow from all activities to total assets, net cash flow from all activities to total equity, net cash flow from all activities to total profit, and net operating cash flow to total assets statistically and significantly impact the sustainability of profit growth, sales and assets of these companies. However, the net cash flow from all activities to total equity does not impact sales growth. Of the recommendations of this research is that the industrial companies incorporated in this research must pay more attention to the cash flow statement and rely on the data contained therein when making investment and financing decisions by raising efficiency in managing cash liquidity, and working to determine the suitable combination of equity and debt sources as the ideal use of this mixture may lead to a reduction in the cost of capital in these companies, which maximizes the elements of sustainable financial growth and paves the way for achieving more profitable investment opportunities available.

An Assessment the Financial Performance of Muangkhay Water Supply System in Luang Prabang Capital, Luang Prabang Province

Water supply is essential and an indispensable factor in the daily life of all populations. To improve the quality of life of citizens and lead to sustainable economic and social development; the party and the government has highlighted as crucial to the development of the water sector. the Some projects have been completed implement, but some of them were not matched to technical standard. Concessionaire seeks to cancel or sell the concession contract to others because they had invested, and the return is less than ought. Therefore, to guarantee the Water Supply System's implementation under the Public Private Partnership Project. This assessment aims to study and evaluate the financial performance of MuangKhay Water Supply System, Luang Prabang City, Luang Prabang Province that invest and operate by the private sector, and Build-operate-transfer for 30 years. To do this we collect data with the private operator which cost of investment, personnel, an average of chemicals, operation fees, electricity, etc., to calculate the Payback Period, Net Present Value, Internal rate of Return, and Cost Benefit Ratio. The assessment of The estimated total income for the 30-year project is 1.877.122 USD, the estimated total expenses are 667.153 USD, the investment cost is $404.425 USD, and the net cash flow is 1.209.969 USD, investors will realize a profit in 14 years, 7 months, and 18 days, therefore, the net present value is 790.488 USD, the rate of return within the project is 6,98%, the net cash flow from operations is 1.209.669 USD, and the return on capital ratio is 1,9. As a result, investment in the water supply at the MuangKhay village cluster in Luang Prabang City, Luang Prabang Province yielded a satisfactory return.

ФИНАНСОВОЕ ИССЛЕДОВАНИЕ ПРЕДПРИЯТИЯ

The article examines the enterprise, analyzes the obligations imposed taking into account cash flows. Financial research is necessary to ensure the assessment and use of an operational set of tools for regulating the economic state and establishing prospects for modernization. Accounting information on net cash flows is a justification of creditworthiness indicators and methods of bankruptcy prevention, stimulate the search for ways to modernize production and regulate cash. At the present stage, productive financial research expands the actual goals and objectives of the financial development of the enterprise, analyzing the spheres of influence, contribute to finding sources of investment.

A Scheduling Model in Capturing Methane Gas from Methane Clathrates Deposits

The execution of any project type, especially engineering-based projects, is usually time-based, efficiency-driven, and cost-effective. These factors are the deterministic parameters that engineer successful project completion. The application of scheduling models remains the best technique for achieving these three factors to their best degrees. Therefore, this study was centered on the impact study of applying the scheduling model in harvesting methane gas from methane clathrates deposits. Various data on gas hydrate reserves in the Niger Delta region of Nigeria were collected from relevant literature, studied, and analyzed. Such data includes the pictorial representation and description of the gas hydrate site in the Niger Delta region of Africa and various shapes and sizes of gas hydrate perimeters in the studied region positions of the gas reserves. The normal faults are projected on a bathymetric map of the study area and the bathymetric map of the Pockmark (with the stippled black line indicating the sea floor projection of a prominent N-S trending fracture in 3-D seismic data). As a type of scheduling model, the critical path method (CPM) was applied to develop the project’s work sequence using the activity on node (AON) architectural technique and Primavera P6 software after carefully identifying the primary operations involved in the project and their respective sub-operations or work breakdown structure (WBS). The risks associated with each operation were meticulously identified, with their consequent impact and exposure matrix determined using probabilistic measures of 1-5 according to the degree of the risk. Mitigation strategies were recommended for all the identified risks. The cost benefits of the project were X-rayed using parameters such as net present value (NPV), project payback time, internal rate of return (IRR), and net cumulative cash flow. From the results obtained, the CPM schedule showed that the project execution would last approximately ten months. All the operations involved in the project execution plan were all critical, proving that each activity should be completed within the scheduled run period. Else, the entire project would be affected. Also, risks with a high exposure matrix of 25, 12, and 4 were mitigated to 5, 3, and 0 using the recommended strategies. In addition, the project yielded an NPV of $20,736,951.04for the run period of 22 years after the execution of the project, IRR of 14%, and a payback time of 8 years (adding 2023 – the year of project execution) provided the daily production rate is maintained within 60,000-65,000MSCF/day. If the daily production rate increases, the cash flow and payback time will decrease. Therefore, the application of CPM in extracting methane gas from gas hydrates positively affected the operation through the vivid insights provided in workflow pattern/methodology risks effects and cost benefits.

ПОДАТКОВА ОПТИМІЗАЦІЯ У РАМКАХ ФОРМУВАННЯ ФІНАНСОВОЇ СТРАТЕГІЇ СТАЛОГО РОЗВИТКУ ПІДПРИЄМСТВА

Methodological provisions and practical recommendations regarding the formation of a financial strategy for the sustainable development of the enterprise, including through the optimization of taxation and the growth of business value in a strategic perspective, were further developed in the article. Correspondence and differences between the categories of "financial and economic stability", "potential for financial and economic stability" and "financial balance" were considered, which made it possible to identify the system capabilities of the enterprise to form and distribute resource flows with the greatest economic benefit and minimal risk. Formulated approaches to determining the main parameters of enterprise value management, which involve determining the possibilities and limits of its growth, qualitative requirements for the choice of capital structure and limits of financial stability. A conceptual model for the formation of a financial strategy for the sustainable development of an enterprise is proposed, the main blocks of which include the positioning of long-term economic prospects, the diagnosis of its current state and the amount of resource potential in the future, optimization of the capital structure, planning of financial activities, etc. As part of strategic financial planning, an approach to simulation modeling of tax payments is proposed, the results of which will allow determining the directions of maximizing net cash flows, minimizing the outflow of financial resources, reducing the tax burden with the aim of increasing the value of the enterprise in the future. The expediency of using tax optimization tools in the process of forming and implementing a financial strategy for the sustainable development of an enterprise, which has a multi-operational economic nature and includes the choice of the method of amortization of fixed assets, variable forms of asset acquisition, rational pricing, various types of financial preferences, methods of rationalizing tax accounting, is indicated. Conclusions were made regarding the formation of an adaptive mechanism of the financial strategy of the enterprises sustainable development as a tool for increasing the efficiency of financial management.

ІННОВАЦІЙНІ ПІДХОДИ ДО РИНКУ КРАФТОВОГО ПИВА З ВИКОРИСТАННЯМ ЕЛЕМЕНТІВ ЛОГІСТИКИ ПОСТАЧАННЯ

In the article, the essence of the concept of "craft" is disclosed, and its types are presented. The main craft beer producers in Ukraine are outlined, including Varvar, Underwood, "Pravda," "Tsypa," Rebrew, and Brewery 2085. Significant attention is given to the size of investment capital expenditures for equipment procurement, the payback period, and the emphasis is placed not only on production activities but also on logistics, marketing, and distribution channels. It is emphasized that large companies primarily sell their beer in PET bottles through supermarket networks, while craft beer is heavily dependent on HoReCa – mostly sold in kegs to pubs and restaurants. Additionally, along with direct delivery, craft breweries are increasingly developing their network of pubs and bar-shops. An assessment of the feasibility of producing craft beer at PJSC "Carlsberg Ukraine" "Lviv Brewery" is conducted. Considering the positive aspects, the decision to venture into the craft beer business within the operations of this company is made by the authors of the publication. The authors provide a brief overview of craft equipment manufacturers, highlighting the positive and negative elements in their offerings. For further research, three suppliers have been selected: Zip Technologies, Hungary; Integral Geha, Germany; Automationstechnik, Austria. The supplier selection analysis is based on the supply logistics concept and involves evaluating a range of criteria. Given the priority of criteria such as equipment payback period, equipment quality, and its price, additional research on the efficiency of equipment procurement from the three mentioned suppliers is conducted, taking into account the investment amount, depreciation, expected net cash flow, and payback period. As a result of the calculations, Zip Technologies, Hungary is selected with a payback period of 5.7 years and a maximum integrated weighted score of 6.99 among the analyzed suppliers. It is emphasized that the decisive criterion was the payback period, primarily associated with the lower price of production equipment.

Analisis Laporan Arus Kas dalam Menilai Kinerja Keuangan di Badan Penyelenggara Jaminan Sosial Kesehatan

The background of this research is the cash flow at BPJS Kesehatan has decreased every year due to the company’s expenses exceeding the income earned. This study aims to determine the financial performance of BPJS Kesehatan for the 2017-2021 period by using cash flow liquidity and cash flow flexibility ratios. The object of this research is the BPJS Kesehatan financial report for the 2017-2021 period which includes balance sheet, income statement and cash flow statement. The type of this research used is quantitative research with a descriptive approach. The type of data is secondary data. The results of this study are the cash flow liquidity ratio based on the operating cash flow ratio and the capital expenditure ratio in 2017 is good because it is above standard 1, but in 2018-2021 it shows a poor ratio because it is below standard 1, then the total debt ratio from 2017-2021 shows a poor ratio because it is still below standard 1. Based on the cash flow flexibility ratio, namely the cash flow adequacy ratio and the net free cash flow ratio of 2017-2021 shows a ratio below standard 1 which means BPJS Kesehatan financial performance is not good.

Regional impacts of rural credit and rural insurance policies on crop area and productivity: evidence from São Paulo state, Brazil (2008 and 2017)

PurposeConstrained input use and lower productivity of rural establishments may be associated with restricted or concentrated access to financial resources, especially in developing countries. Meanwhile, agricultural activity entails risks associated with the volatility of net cash flows and external events, which may discourage riskier but higher return investments (e.g. technology). As rural credit can alleviate the former, and rural insurance may help alleviate the latter, the combination of both policies might endorse each other. The purpose of this study is to analyze the use of rural credit and rural insurance policies with respect to productivity and crop area, in São Paulo state, Brazil, using farmer's microdata from two surveys realized in 2007/08 and 2016/17.Design/methodology/approachThis study uses propensity score matching and the entropy balance approaches in a complementary way. This study compared three policy treatments – rural credit, rural insurance and both policies combined, against establishments that received neither one. The analysis considered sugarcane, grain and grape crops separately and employed farmer's microdata. Moreover, the analysis was stratified into two categories: establishments owned by family farmers and those that did not.FindingsRural credit policy is related to higher productivity and larger cultivated area for grains and only to larger area for grape crops in the last analyzed period (2016/17). Rural insurance, as a unique policy or combined with credit, is related to higher productivity and cultivated areas, for all analyzed crops, only in the second period (2016/17), as the policy became more accessible to farmers. Heterogeneity regarding crops and farmers might influence the effectiveness of these policies. Despite rural insurance being related to a better performance regarding the outcome variables, it still reaches a small share of farmers, especially when combined with credit.Originality/valueMany studies about the effectiveness of rural credit in Brazil have been conducted throughout the years, while there have been fewer studies regarding rural insurance since it became an important policy in the mid-2000s. However, few studies have conducted an analysis comparing its individual and interactive influences, with such level of disaggregation, on a farm-level database, considering the heterogeneity of the data and the different categories of farmers.

Оценка экономической эффективности работы нефтедобывающей компании в условиях перехода на режим с налогом на добавленный доход

Additional income tax depends on the financial result, not on the gross production indicators, as is the case of the mineral extraction tax. The authors described the advantages and disadvantages of the new fiscal regime of additional income tax and calculated it for the oil producing company Udmurtneft JSC. They also assessed the operation efficiency for the Arkhangelsk oil field under two fiscal regimes and concluded that the transition could eventually reduce the tax burden for the company. The article introduces a new model for efficient mineral extraction during transition to the additional income tax regime. The model provides economic efficiency through such indicators as taxable profit, net profit, capital investments, net cash flow, and new present value. A stress analysis revealed various factors that affect the tax value, i.e., the dependence of the new present value on the production level under two fiscal regimes, the management system complex, unit costs per 1 well and 1 ton of oil, the production level and specific costs for 1 well and 1 ton of oil, etc. The efficiency calculations and stress tests showed that the proposed model can be used to control the value of various indicators to achieve optimal new present values. Switching to profit-based tax was found feasible in terms of economic indicators: a higher new present value, a lower tax burden, and more profit, even with increasing costs.

Analysis on The Influence Mechanism of Corporate Stock Price Based on Lasso RBF Neural Network

In order to study the correlation between stock prices and financial indicators of Chinese listed companies, this paper selects representative and relevant data from CSMAR to study 12 indicators as input layers, which reflect the solvency, profitability and management ability of the companies. Based on the lasso algorithm, the data dimension is reduced to 5 indicators; a lasso RBF neural network is constructed and the neural network is trained to obtain the company's stock price simulation. The results show that the model has good robustness and the accuracy of the stock price fitting is 93%. Among them, the main contribution of net investment cash flow to stock price is 25.46, which provides some suggestions for stock price prediction analysis.

Cash shortfalls in IPO firms

We find that most IPO firms will run out of cash soon if they did not receive proceeds from IPOs. The cash shortfalls are not caused by increases in capital expenditure, R&D, M&A, or debt repayment and persist during the 5 years after IPO. Negative net cash flows help explain the persistent cash shortfalls. These results are consistent with the funding horizon theory. IPO firms with more initial cash shortfalls also have lower cash flows in the next 5 years, suggesting that initial cash shortfalls can be used to predict the future operating performance of IPO firms.

Feasibility Study of a Small-Scale Recirculating Aquaculture System for Sustainable (Peri-)Urban Farming in Sub-Saharan Africa: A Nigerian Perspective

The (peri-)urban population in developing countries, especially sub-Saharan Africa, is rapidly increasing. As towns and cities grow, so does the demand for fish protein. While flow-through aquaculture can provide fresh, healthy and nutritious fish protein, it is plagued by extensive land requirements as well as effluent discharge and is thus unsuitable for city regions. Alternatively, small-scale Recirculating Aquaculture Systems (RAS) could improve food and nutritional security and livelihoods as well as reduce environmental degradation in (peri-)urban areas despite land and water constraints. The question, however, remains—what are the key technical, business and managerial issues surrounding small-scale RAS in (peri-)urban farming? To answer this question, first, a systematic literature review on RAS in sub-Saharan Africa is conducted. Second, the RAS prototype of the Sustainable Aquaponics for Nutritional and Food Security in Urban Sub-Saharan Africa (SANFU) II project is assessed. This assessment is based on the mass balance and stock density, relevant for fish survival and/or availability as well as net cash flow analyses. The results suggest that small-scale RAS are technically and financially viable with efficient filtration and family labor having proper aquaculture monitoring and management skills. Furthermore, access to adequate equipment and inputs as well as electricity for the recirculating system are crucial. (Peri-)urban innovation actors will adopt RAS if operations are profitable.

Kemampuan Laba dan Arus Kas Operasi dalam Memprediksi Arus Kas Masa Depan pada Perusahaan BUMN yang terdaftar di BEI Tahun 2016 - 2020

The current study aims to to achieve empirical evidence concerning the potential of net profits and cash flow operations to predict future cash flows and which ability to be taken into consideration superior in predicting future cash flows. The population are the indexed company of country -Owned organisations at the IDX in 2016 – 2020. The sampling method used the purposive sampling that produced 85 for a 5-year observation. Analysis was based on, secondary data types obtained from the legitimate website of IDX. The analysis that produced used multiple linear regression analysis. The results of this analysis imply that net profits has the ability to predict future cash flows while cash flow operastions are not longerable to predictfuture cash flows for BUMN companies at the IDX . This Assessment also indicates that the ability of net profits greater than operating cash flow to predicting future cash flows.

Economic Feasibility, Benefits and Challenges of On-Farm Artisanal Cheese Making in South Africa

There is limited information regarding artisanal cheese making that can help entrepreneurs evaluate business opportunities and make realistic business decisions. The objective of this study was to assess the economic feasibility, benefits and challenges of on-farm artisanal cheese making. A model was designed to evaluate the economic feasibility of processing hard pecorino-style cheese and soft fresh ricotta on four different smallholder farms. The study assumed a small-scale family-owned business with an average herd size of 10 lactating cows, using 80 L of raw milk a day to make cheese. Projected Cash Flow Statement was used to determine the economic feasibility of cheese making. Sensitivity analysis was conducted using a factor of 10% to determine the changes in net cash flows by varying the milk volume, cheese selling price and both. The positive projected cash flow after the sensitivity analysis for the four farms ranged from $24,073.84 to $33,783.5. The breakeven quantity for the four farms ranged from 325.82 kg to 357.88 kg per year.Overall, the results show that artisanal cheese making is economically viable under the given model assumptions. However, the major challenge noted is that most farmers lack knowledge in terms of the processing techniques, market opportunities and production costs involved in cheese making. Access to this information by small-scale milk producers is vital in considering cheese making as a business.