Operating Cash Flow Ratio Research Articles

Cash Flow Ratios and Business Failure of Healthcare Firms in Nigeria

The study examined cash flow ratios as predictors of business failure of healthcare firms in Nigeria. The objectives of the study were to ascertain the effect of operating cash flow ratio, cash flow to debt ratio, and price to cash flow ratio on Altman’s zeta score of healthcare firms in Nigeria. The study adopted ex-post-facto research design, covering a period of 10 years (from 2013 to 2022). Secondary data used for the study were extracted from annual reports and accounts of selected healthcare firms listed on the Nigeria Exchange Group (NGX) from 2013 to 2022. Multiple regression technique was used to test the hypotheses. The result of the test of hypotheses revealed that the operating cash flow ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.3397). The finding also indicates that the cash flow to debt ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.2937). Lastly, the finding reveals that the price to cash flow ratio has a non-significant positive effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.5281). The policy implications of these findings suggest that when assessing the financial health and bankruptcy risk of healthcare firms in Nigeria, policymakers and regulators should consider factors beyond cash flow ratios. It was recommended therefore that healthcare firms in Nigeria should diversify their sources of cash flow beyond operating cash flow to improve financial stability and mitigate bankruptcy risk. Healthcare firms should have a careful evaluation of debt management practices is necessary to maintain a healthy balance between cash flow generation and debt obligations in healthcare firms. Market sentiment reflected in the price to cash flow ratio should not be relied upon as the sole indicator of financial stability. Healthcare firms should prioritize fundamental financial and operational indicators to assess their financial health and mitigate bankruptcy risk.

Corporate Governance Moderated Profitability, Liqyidity and Cash Flow on Financial Distress

This study aims to determine the effect of Corporate Governance in moderating Profitability, Liquidity, and Cash Flow on Financial Distress. Net Profit Margin measures profitability. The Current Ratio measures liquidity. The Operating Cash Flow Ratio measures Cash Flow, and Altman Z-score measures Financial Distress. This study uses Corporate Governance as a moderating variable measured by the Board of Commissioners indicator. The sample used in this study is 156 data on manufacturing companies listed on the Indonesia Stock Exchange for 2020-2021. That year, there was an outbreak of the covid-19 pandemic that occurred almost all over the world, allowing many companies to experience financial distress problems. The hypothesis in this study was tested using multiple linear regression. The results showed that profitability had a significant positive effect on financial distress, while liquidity and cash flow had no significant effect on financial distress. Corporate governance as a moderating variable cannot strengthen the influence of Profitability, Liquidity, and Cash Flow on financial distress (Z-Score Index)

Análisis de la estructura del capital e intensidad de capital. El caso de las empresas colombianas

Standard financial theories assume that investment and financing decisions are intertwined. Investment decisions involve selecting assets that generate positive cash flows and maximize shareholder value, while financing decisions involve identifying the optimal mix of debt and equity financing to fund these investments. The main objective of this paper is to analyze the interdependence of assets and liabilities in a sample of Colombian manufacturing firms with varying degrees of roundaboutness (capital-intensive nature). This study employs canonical correlation analysis to determine the interaction between balance sheet components. Subsequently, a threshold regression model is employed to evaluate the influence of financial indicators on the financial performance of firms with heterogeneous capital intensity. The findings reveal that low-capital intensity firms match the maturity structure of assets and liabilities. In firms with low roundaboutness there is a significant relation between throughput, working capital turnover and the proportion of capital expenditure to operating cash flow with ROIC. However, this relationship becomes non-significant at high levels of indebtedness. Conversely, capital-intensive firms exhibit a mismatch between asset and liability maturities, relying on shareholders’ funds to finance longterm assets and inventories. In this group of companies, throughput is positively associated with ROIC regardless of the level of debt, whereas the relationship between working capital turnover and ROIC is not significant until a certain debt threshold is exceeded. The impact of the capital expenditure to operating cash flow ratio on ROIC varies depending on debt levels. Companies with high roundaboutness that exceeds a debt threshold experience a negative impact.

Construction and validation of a financial risk prediction model for e-commerce enterprises oriented to financial sharing

Abstract Relying on advanced technology, the financial shared management model realizes a breakthrough for the enhancement of enterprise financial management capability, and provides effective support for enterprise decision makers while mining financial risks. In this paper, the support vector machine algorithm (SVM) is used to construct a financial risk prediction model for e-commerce enterprises, and the radial basis kernel function (RBF) is selected among various kernel functions to enhance the discriminative ability of SVM. At the same time, the particle swarm algorithm (PSO) is introduced to optimize parameter γ and penalty factor C of the RBF kernel function, and the PSO-SVM fusion model is constructed, so as to improve the prediction accuracy of the e-commerce enterprise financial risk prediction model. After the experimental analysis of this paper on the various capabilities of enterprise financial management, it is found that the operating cash flow ratio of the e-commerce enterprise is less than 40% in 2017-2021, and reaches a minimum of 3% in 2020, which indicates that the Z e-commerce enterprise has insufficient ability to raise debt to operate, which may cause problems such as a decrease in the rate of return on assets. In addition, the cash flow of the e-commerce enterprise is highly variable, and the cash outflow from operating activities is significantly higher than the cash inflow in 2020, resulting in a negative net inflow of −111,451,575,000 yuan. It indicates that the Z e-commerce enterprise has a low degree of control over cash flow, and there is a financial risk of a sudden break in the capital chain. Therefore, the risk prediction model constructed in this paper can uncover potential hidden financial dangers and risks by analyzing the financial data of e-commerce enterprises.

ANALISIS ARUS KAS DALAM MENGUKUR KINERJA KEUANGAN PT. UNITED TRACTORS PADA TAHUN 2021-2022

The cash flow report is a component of financial reports that has an important role in the decision making process. The cash flow statement includes three main categories: operating activities, investing activities, and maintenance activities. In operational activities, this report reveals how efficient the company is in generating cash from its core business activities. Cash flow statements are used effectively in company performance analysis. The aim of this research is to determine the financial condition of the company PT United Tractors using cash flow ratio analysis. This research was conducted using a descriptive analysis method with a quantitative approach, namely using calculations of the operating cash flow ratio, cash cover ratio, capital expenditure ratio, total debt ratio and net profit ratio. The data collection technique used is document study and literature study. The results of this research as a whole show that the cash flow statement ratio analysis of PT United Tractors in 2021-2022 shows good financial performance.

Operating Cash Flow Analysis as a Financial Performance Measurement Tool

The purpose of this study is to analyze and determine the current ratio obtained at PT Siloam International Hospitals Tbk in 2019 – 2021. The method used in this study is descriptive qualitative research method. From the results of the study, it can be concluded that the financial performance of PT Siloam International Hospital.Tbk in 2019-2021 is assessed from the operating cash flow ratio is stated to be not good, the performance is said to be not good so that the company must strive to increase cash from operating activities so that in the future the company's cash flow can run smoothly.

Liquidity and Profitability of Commercial Banks in Bangladesh: A Comparison Between Before and After the Covid-19 Crisis

This study aimed to assess the impact of the COVID-19 pandemic on the liquidity and profitability of commercial banks in Bangladesh. The data of the fifteen selected banks were gathered from the financial statements for each quarter of four years, from Q1 of 2018 to Q4 of 2021, encompassing the two years preceding and following the COVID-19 outbreak. This study uses a comparative quantitative methodology to compare the liquidity and profitability of commercial banks in Bangladesh before and after the COVID-19 pandemic. The results revealed that the profitability, measured by return on asset (ROA), and return on equity (ROE), during post-pandemic times was more volatile than the pre-pandemic time, but the trend is almost the same and the difference is statistically insignificant. The liquidity positions of the banks have been measured by Cash ratio (CaR), current ratio (CR), credit-to-deposit ratio (CDR), debt-to-asset ratio (DAR), operating cash flow ratio (OCFR), and debt-to-equity ratio (DER). The results revealed that the pre and post-pandemic liquidity positions are significantly different except for the liquidity measures OCFR, and DER. The findings also confirmed that the COVID-19 pandemic has had a substantial detrimental effect on the liquidity of banks.

ANALISIS RASIO ARUS KAS UNTUK MENILAI KINERJA KEUANGAN PERUSAHAAN MANUFAKTUR SUB SEKTOR MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2015-2019

Financial performance is an analysis to assess the extent to which the company has carried out activities based on good financial implementation rules. The purpose of this study was to determine the financial performance of the food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The results showed that the value of the ratio in the company fluctuated and it can be concluded that the financial performance of the food and beverage sub-sector companies from the aspect of the operating cash flow ratio, cash coverage ratio to interest, capital expenditure ratio, cash flow ratio to net profit, and total debt ratio , it is known that the food and beverage sub-sector manufacturing companies for the 2015-2019 period experienced fluctuations. Financial performance in good condition at ADES (Akasha Wira Internasional Tbk), CEKA (PT.Wilmar Cahaya Indonesia Tbk), and AISA (FKS Food Sejahtera Tbk) companies.

Analisis Laporan Arus Kas (Studi Kasus PT. Bosua Asuransi Cabang Jambi Bulan Oktober-Desember Tahun 2018)

This study aims to determine the condition of cash flow in PT. Bosowa Insurance Jambi Branch. if you look at the analysis of the cash flow statement. Data collection is carried out with literature and documentation research techniques. Research methods. by using descriptive analysis methods using cash flow from operating activities, investments, and funding as well as ratio analysis, namely: Operating Cash Flow Ratio (AKO), Cash Coverage Ratio to Current Debt (CKHL), Capital Expenditure Ratio (PM), Total Debt Ratio (TH). The results of this study show that the company's total cash flow during October-December 2018 shows that the company is in a non-liquid condition when assessed in terms of its operational activities. With the ratio analysis that has been carried out, it can be concluded that there is a decrease in cash flow, especially in operating activities every year and the company's ability to overcome its current liabilities still cannot be resolved.This shows that Bosowa Asuransi Jambi Branch was in a bad position during October-December 2018

Revisiting the Impact of NPAs on Profitability, Liquidity and Solvency: Indian Banking System

In the light of the fact that non-performing assets (NPAs) in the country are increasing at a very fast pace, this article intends to investigate the outcome of gross NPAs (GNAPs) ratio on profitability, liquidity and solvency in Indian banking system. To study this impact, we have used panel data of 30 Indian banks (12 government sector banks and 18 private sector banks) from 2014 to 2021 (8 years) collected from Prowess (CMIE) and money control. The current study uses four different panel regression models, that is, fixed and panel regression models, pooled regression models and seemingly unrelated regression models. The empirical outcomes of the current study confirm the outcomes of existing studies. The findings of this article confirm the substantial association between the GNPA ratio and profitability ratio, that is, net profit ratio, return on assets ratio and return on equity ratio. Further, the study also confirms the association between the GNPA ratio and liquidity ratios of banks (cash flow margin, current ratio, acid test ratio, cash ratio and operating cash flow ratio). We also found the impact of the GNPA ratio on the capital adequacy ratio.

Liquidity Ratio Analysis in Financing Short Term Liabilities

The objective of this research study is to know whether X Consultancy Services company can cover up their short term liabilities or not and if they can, how good they can cover up their short term liabilities. In doing the research, the writer obtains the data from X Consultancy Services. The writer analyzes the data using descriptive method. Based on data collected, the writer calculated the liquidity ratio to know whether this company can cover up their short term liabilities or not. The writer calculated the liquidity ratio using three methods which is quick ratio, current ratio, and operating cash flow ratio from 2018 until 2020 in other to know can this company cover up their short term liabilities and how good they cover their short term liabilities. Based on data analysis, we know that company current assets is grow faster than their current liabilities while their current liabilities grow faster than their cash flow from operating. This thing makes the quick ratio and current ratio increased while operating cash flow ratio is decreased. Based on data presentation and analysis, the writer can conclude that the company can cover up their short term liabilities and they are consider good at covering their short term liabilities. But their must more focus on their cash flow from operating because if we look from operating cash flow ratio, it decreasing year by year and it will be not good for the company.

PENGARUH KUALITAS AUDIT TERHADAP EARNINGS MANAGEMENT PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

The purpose of this study is to examine the effect of audit quality proxied by the size of the auditor, auditor industry specialization and audit tenure on earnings management. Earnings management is proxied by discretionary accruals. This study uses three control variables, which are firm size, operating cash flow ratio, and leverage. This study uses secondary data derived from the financial statements of listed companies on the Indonesia Stock Exchange from 2017-2019. Based on the purposive sampling method we obtain 366 observations, and the technique for examining the hypothesis is multiple regression analysis. The results show that audit quality has no significant effect on earnings management. However, this study finds that Big 4 audit quality and auditors of industry specialization moderated the relationship between cash flow from operations and earnings management, while leverage moderates the relationship between Big 4 audit quality and earnings management.

PREDICTING FRAUDULENT FINANCIAL STATEMENT USING CASH FLOW SHENANIGANS

Detection of fraudulent financial stewardship in the cash flow section is an exciting thing and is rarely studied. This research empirically tests the discovery of fraudulent financial statements based on basic cash flow shenanigans. The sample of this study amounted to 470 data mining companies in Indonesia, Malaysia, China, and Japan. The analysis method used is a positive approach. The results show that all ratios used can predict fraudulent financial statements. Three ratios of cash flow shenanigans, namely change in receivable to cash flow operations, days payable outstanding, and change in inventory to cash flow operations, significantly affect the F-Score. Meanwhile, the six cash flow shenanigans ratios, namely cash flow operations to current liability, operating cash flow ratio, free cash flow, cash flow operations to total liability, days payable outstanding, and change in inventory to cash flow operations, have a significant effect on the M-Score.

How Vietnamese Export Firms Faced Financial Distress during COVID-19? A Bayesian Small Sample Analysis

A crucial role belongs to export firms in the export-led growth model of Vietnam. The COVID-19 disease has posed a serious challenge to the Vietnamese economy, having negatively impacted its influential export sector. However, investigating this export sector encounters small sample issues within the frequentist framework. So, by adopting a Bayesian approach, this study intends to explore the impact of COVID-19-specific factors on the financial distress of the export companies listed on the Vietnam stock exchange. In case frequentist and Bayesian estimation with non-informative priors cannot acquire statistical efficiency due to problems with insufficient data, thoughtful Bayesian analysis can yield meaningful outcomes. A Bayesian logistic regression model was employed to analyze the scarce data, and the posterior estimates of all the model parameters achieved significantly show that the main operating cash flow ratio to total debt, company size, and retained return on total assets are all negatively related to financial distress. Interestingly, financial leverage positively affects financial distress because a benefit from a tax shield could not compensate for the adverse impact of a debt burden, as suggested in the trade-off theory, which demonstrates the specific financial situation of the companies when the COVID-19 pandemic was in full swing.

The Impact of Management Performance Evaluation Rating Information on Management Efficiency in Public Enterprises

This study empirically verified the relationship between the management performance evaluation grade of public enterprises and management efficiency. Public enterprises disclosed by the Ministry of Strategy and Finance for management performance evaluation from 2015 to 2019 were analyzed, and those with a low debt ratio and operating cash flow ratio were excluded from evaluation.BR As a result of the analysis, the coefficient value of the public enterprise management evaluation grade showed a significant positive (+) value, indicating that the higher the management evaluation grade, the higher the management efficiency. Although the management performance evaluation is used as a management tool to achieve various policy objectives, such as a burden on the person being evaluated and conflict-inducing politics within the organization, it has a relatively high cost control effect such as work efficiency and financial budget performance, and it is well received in the management performance evaluation grade. This means that the improvement of the overall management process and the transparent and efficient operating effect of the accounting system prevail.

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.

Liquidity Management and Gross Earnings of Insurance Firms in Nigeria

The study appraised liquidity management and gross earnings of insurance firms in Nigeria. During the Covid-19 period, insurance firms were faced with the financial responsibility of indemnifying the numerous risks suffered by policy holders. To do so effectively, they need to be liquid enough so as to meet such indemnity demands as at when due. This affects their investment. Hence the study examines liquidity and gross earnings of insurance firms in Nigeria. Current ratio, cash ratio, and operating cash flow ratio is the independent variables of the study, while the dependent variable is profit for the year. The study adopted an ex-post-facto research design, covering the period between 2011 and 2020. Secondary data were extracted from the annual report and accounts of the sampled insurance companies. The correlation technique was used for the data analysis. In line with the specific objectives of the study which was to examine the relationship between current ratio, cash ratio, and operating cash flow ratio and profit for the year of insurance firms in Nigeria, it was revealed that current ratio has a positive and strong relationship with profit for the year of firms in Nigeria insurance subsector. Cash ratio has a negative and weak relationship with profit for the year of firms in Nigeria insurance subsector. The operating cash flow ratio has a positive and weak relationship with profit for the year of firms in the Nigeria insurance subsector. This implies that an increase in current ratio results in a significant increase in profit for the year of insurance firms in Nigeria. It is recommended therefore that insurance firms in Nigeria should strive to improve their current ratio. They can do this by reducing the personal draw on the business and by reducing the personal drawings on the business. They should reduce their propensity to hold cash. They should balance the trade-off between cash holding and profitable investment. They should make profitable investments and ensure that their liabilities are settled on time. Insurance firms should devise strategies to improve the cash they generate from operating activities. They can do this by improving their inventory, introducing electronic payments, etc.

Analisis Rasio Arus Kas Untuk Mengukur Kinerja Keuangan Pada Pt Indofood Sukses Makmur Tbk. Periode 2018-2020


 
 
 
 The purpose of this study was to determine and analyze the financial performance as measured by the cash flow ratio at PT. Indofood Sukses Makmur Tbk. 2018-2020 period. This study uses the following cash flow ratio analysis methods: operating cash flow ratio (AKO), fund flow coverage ratio (CAD), cash to interest coverage ratio (CKB), cash to current debt coverage ratio (CKHL), capital expenditure ratio ( PM), total debt ratio (TH). The type of data used in this research is quantitative data. Sources of data used in this study is secondary data. In the form of a Financial Statement consisting of a Balance Sheet, Income Statement and Cash Flow Statement at PT. Indofood Sukses Makmur Tbk period 2018-2020. The data collection technique used in this study to obtain the data and information needed is a documentation study, namely through the website of the Indonesia Stock Exchange (www.idx.co.id). The author uses quantitative analysis techniques, namely calculating and analyzing the relevant results from the financial statements, using the cash flow statement ratio. The results of the study note that the financial performance of PT. Indofood Sukses Makmur Tbk for the 2018-2020 period shows that there are three cash flow ratios whose values ​​are still below the applicable standard criteria because the company has not been able to meet current obligations and long-term debt on time but the company can cover interest costs, capital expenditures, and is able to pay taxes. of the cash flow generated by the company.
 
 
 

Analisis Rasio Arus Kas untuk Mengukur Kinerja Keuangan pada PT Indofood Sukses Makmur TBK. Periode 2018-2020

The purpose of this study was to determine and analyze the financial performance as measured by the cash flow ratio at PT. Indofood Sukses Makmur Tbk. 2018-2020 period. This study uses the following cash flow ratio analysis methods: operating cash flow ratio (AKO), fund flow coverage ratio (CAD), cash to interest coverage ratio (CKB), cash to current debt coverage ratio (CKHL), capital expenditure ratio ( PM), total debt ratio (TH). The type of data used in this research is quantitative data. Sources of data used in this study is secondary data. In the form of a Financial Statement consisting of a Balance Sheet, Income Statement and Cash Flow Statement at PT. Indofood Sukses Makmur Tbk period 2018-2020. The data collection technique used in this study to obtain the data and information needed is a documentation study, namely through the website of the Indonesia Stock Exchange (www.idx.co.id). The author uses quantitative analysis techniques, namely calculating and analyzing the relevant results from the financial statements, using the cash flow statement ratio. The results of the study note that the financial performance of PT. Indofood Sukses Makmur Tbk for the 2018-2020 period shows that there are three cash flow ratios whose values ​​are still below the applicable standard criteria because the company has not been able to meet current obligations and long-term debt on time but the company can cover interest costs, capital expenditures, and is able to pay taxes. of the cash flow generated by the company.

Evaluasi Pengukuran Kinerja Keuangan Pada PT Indofood Sukses Makmur Menggunakan Rasio Arus Kas

The purpose of this study was to analyze the financial performance as measured by the cash flow ratio at PT. Indofood Sukses Makmur Tbk. 2018-2020 period. This study uses the following cash flow ratio analysis methods: operating cash flow ratio (AKO), fund flow coverage ratio (CAD), cash to interest coverage ratio (CKB), cash to current debt coverage ratio (CKHL), capital expenditure ratio (PM), the ratio of total debt (TH). The type of data used in this research is quantitative data. Sources of data used are secondary data, namely the Statement of Financial Position, Income Statement and Cash Flow Statement at PT. Indofood Sukses Makmur Tbk period 2018-2020. The data collection technique is a documentation study, namely through the page on the Indonesia Stock Exchange. The results of the study note that the financial performance of PT. Indofood Sukses Makmur Tbk for the 2018-2020 period shows that there are three cash flow ratios whose values ​​are still below the applicable standard criteria because the company has not been able to meet current obligations and long-term debt on time but the company can cover interest costs, capital expenditures, and is able to pay taxes. of the cash flow generated by the company.