Operating Cash Research Articles

Economic Aspects of Aircraft Propulsion Electrification

Aircraft propulsion electrification is currently being considered by industry and academia as one of the most promising strategies to reduce air transport emissions and increase overall efficiency levels. In the past decade, several papers were published on this subject, with the majority indicating encouraging fuel burn benefits versus conventional, fossil-fuel-based propulsion systems when future technologies, novel aircraft configurations, and synergistic propulsive-airframe integration are employed. However, a much smaller effort has been applied to the economic aspects of hybrid and fully electric propulsion, which are crucial for a successful product introduction. The present paper describes the modeling of a baseline general-aviation-type aircraft and its propulsion system retrofit with electrified architectures, exploring different electrification strategies for a fixed airframe design. Analyses are performed at the aircraft level, comparing recurring and cash operating costs for several cost and durability scenarios. While considerable CO2 reductions may be achieved in some electrification strategies, aircraft performance is significantly penalized, and important improvements in economic figures of merit are needed in order to make electrified propulsion cost-competitive. Electrified architectures tend to increase costs: turboelectric increases recurring equipment costs, while hybrid-electric increases recurring and direct maintenance costs, especially at higher degrees of energy hybridization.

Governmental responses and firm resilience during the COVID-19 pandemic: The role of culture and politics

Using data from 180 countries and 24,833 publicly traded firms worldwide, this study examines how cultural and political factors influence the stringency of a government’s response to the COVID-19 pandemic and, in turn, the stock prices of firms and industries operating in a given country. Existing research demonstrates that government behavior during a pandemic can directly or indirectly affect stock prices. This study explores twelve political and cultural characteristics that might influence government policies. Interestingly, our results indicate that democratic and less long-term-oriented countries employ stricter responses to the pandemic. Furthermore, countries with higher individualism, coalition governments, and governments not battling for re-election appear to employ a smoothing strategy: although they implement stringent responses early on, they tend to react less aggressively when the number of COVID-19 cases increases. This study finds that increased stringency has a negative impact on corporate abnormal returns, especially during the early stages of the pandemic. Our study has important policy implications and offers valuable insights to investors: stock price reactions depend on political and cultural factors, industry, and firm characteristics. Most importantly, larger firms with more cash operating in collectivist and politically stable countries are more resilient.

THE ROLE OF AGRICULTURAL ACCOUNTING IN CONTROLLING THE COSTS OF AGRICULTURAL ACTIVITIES (A FIELD STUDY ON A NUMBER OF AGRICULTURAL INSTITUTIONS IN SUDAN)

The study mainly aimed to know the relationship between agricultural accounting and controlling the costs of agricultural activities. To achieve this goal, (170) questionnaire forms were distributed to the study sample that selected randomly from the study’s community which consisted of the employees of a number of Sudanese agricultural institutions. The results of the study showed that the existence of an integrated agricultural accounting system contributes to controlling the costs of agricultural activities, and keeping a cash book to prove all cash operations helps in controlling the costs of agricultural activities. The study recommended a number of recommendations, he most important of which is increasing public awareness of agricultural accounting and its importance for agricultural projects, through seminars and workshops, and encouraging agricultural institutions in Sudan to adopt the agricultural accounting system in their accounts instead of the regular financial accounting system.

Tax control among controlling legal relations.

Tax control legal relations are part of financial control legal relations and international economic relations. They influence the development of the economy of the countries; the individual business entities activities.Tax control is a system of measures taken by tax authorities in order to control the correctness of calculation, completeness and timeliness of tax payment, compliance with legislation on the regulation of cash circulation, settlement and cash operations, patenting, licensing and other legislation, the control of compliance with which is entrusted to tax authorities in accordance with the tax law.Tax control relations arise on the basis of tax liability. Therefore, tax control relations are imperative and provided with special coercive measures.Tax control is carried out on the basis of keeping records of taxpayers; information and analytical support for the activities of tax authorities; tax audits for compliance with financial legislation and monitoring of controlled operations.Tax control is carried out by tax authorities in relation to taxpayers. Accounting data and the reliability of information received from taxpayers are analyzed during the control of tax relations. During tax control, international accounting standards and principles of auditing and financial monitoring are applied.

The role of operational performance in supporting the financial flexibility of the company by applying to a group of companies listed on the Qatar Stock Exchange for the period (2009-2020)

The study aimed to evaluate the operational performance of the company and explain its role in supporting its financial flexibility by following the method of descriptive and quantitative analysis. To achieve this aim, operational cash (OCF, current asset turnover CAT) and financial flexibility measurement based on the indicator (debt flexibility + cash flexibility) have been applied to a group of companies listed on the Qatar Stock Exchange consisting of (6) companies and for the years (2009-2020), Furthermore, showing the impact of Operational performance indicators as an independent variable in financial flexibility as a dependent variable using multiple regression analysis. Results showed that the highest positive significant effect of operational performance on financial flexibility was in (Qatar Fuel Company and Qatar Cement Company), while the rest of the companies did not show a clear effect, as for the results of the regression measurement for the total companies, it was found that there is a significant non-strong impact between operational performance in financial flexibility. Finally, there are a set of recommendations were made, the most important of which is the need to study and identify the influencing factors On the financial flexibility of companies with the need to develop and adopt new models for measuring operational performance.

Tax evasion policies and the demand for cash

This paper analyzes the relationship between tax evasion and the demand for cash by studying the effects of two measures to fight evasion: accessing taxpayers’ bank data and imposing thresholds for cash payments. We study the effects of these policies in Italy, where visibility of bank data and cash thresholds were recently increased. We show that both significantly affected cash holdings, which grew by about 1.5 percent of the GDP. Using unique high frequency data on cash operations and exploiting regional heterogeneity in tax evasion propensity, we find that accessing bank data pushes regions with higher propensity to evade taxes to convert more deposits into cash. On the contrary, higher cash thresholds do not increase cash holdings more in these regions. We rationalize the findings with a simple model of tax evasion and payment choices, where cash and deposits have different degrees of privacy.

Liquidity Ratios of the World's Leading Publicly Traded Oil and Gas Corporations as an Indicator of Investment Attractiveness of Domestic Vertically Integrated Oil and Gas Companies

Subject. The article considers the main liquidity ratios of twenty five leading publicly traded oil and gas companies from 2006 through 2018. Objectives. The aim is to determine the current level of values of the main indicators of liquidity of the leading publicly traded oil and gas companies, to identify the key trends in their change within the studied period and establish those factors that caused this transformation. Methods. The study employs methods of comparative and financial-economic analysis, generalization of materials of consolidated income statements. Results. The study determined trends in key liquidity indicators in the stock market sector of the industry and established the main factors that contributed to this transformation, based on the comprehensive analysis results of annual reports published by 25 oil and gas companies. The global financial shock and subsequent protracted industry crisis did not lead to significant difficulties in ensuring the liquidity of large corporations in the industry. The paper established a slight increase in the level of current liquidity of the leading publicly traded oil and gas companies. This result was achieved by increasing the share of the most liquid component of assets, i.e. cash and its equivalents that have no restrictions on their use. This confirms a more significant increase in instant liquidity. On the contrary, the importance of short-term receivables in the structure of current assets of publicly traded oil and gas companies decreased. Consequently, the aspiration of industry corporations to minimize the cash operating cycle period became a major factor in the transformation. It was revealed that these changes occurred under a certain decrease in the share of equity in total liabilities. Meanwhile, the ratio between all sources of financing and equity remained within an acceptable range of values. Conclusions. Leading publicly traded oil and gas companies are able to maintain their own liquidity even in times of crisis. The greatest attention in the industry is paid to increasing the immediate liquidity indicators.

Cash Flow Management Challenges Faced by Small Family-Owned Businesses in Zimbabwe

Cash flow management has increasingly become a concept of interest in the context of small family-owned businesses in recent years. It is worth noting that the growth rate of family-owned businesses has continued to rise in recent years. The research aimed to explore the cash flow management challenges faced by small family-owned businesses in Zimbabwe. The research philosophy of constructivism was employed as it was more appropriate for explorative qualitative study. With the adoption of a qualitative approach, in-depth interviews and Focus Group Discussions (FGDs) were conducted. The research was conducted on 12 owners of small family businesses from diverse sectors of the economy. Then, thematic analysis was applied to analyze data from in-depth interviews and FGDs. The results show that small family-owned businesses face a myriad of cash flow management challenges. Those challenges are poor payables and receivables management, inadequate cash balances, lack of financial experts, absence of cash budgets, bad debts, cash instability, and Unhu/Ubuntu culture. The research outcomes have practical implications for financial institutions and governments when offering financial management capacity-building workshops. Interestingly, the management of family businesses can make evidence-based decisions related to cash management practices and cash operating cycles. The research can immensely enrich the extant mainstream literature on the family business.

Simulating the profitability of male-sexed semen use in extensively farmed beef cow herds

Male-sexed semen can be used in beef cow herds to increase the number of heavier and faster-growing male offspring. The use of sexed semen requires artificial insemination (AI) which has limited use in extensive beef systems due to practical constraints and the additional breeding costs incurred. The objective of this study was to use bio-economic simulation modelling to predict the profitability of using sexed semen via fixed time AI for a New Zealand hill country farm system based around a beef cow herd. When modelling self-replacing Angus herds male-sexed Simmental semen was utilised across 43% of mixed-age cows then follow up Simmental bulls were used for subsequent natural mating. To generate replacement Angus heifers, first time calvers and remaining mixed-age cows were bred with unsexed Angus semen and then naturally bred with Angus bulls if they did not conceive. All mixed-age cows in an AngusxHolstein-Friesian herd with a bought-in replacements policy were bred with male-sexed Simmental semen followed by Simmental bulls. First time AngusxHolstein-Friesian calvers were bred with unsexed Angus semen followed by Angus bulls. Sire breed was assumed to have the same effects on offspring production regardless of use through AI or natural mating. Herds using sexed semen were assumed to undergo synchronised fixed-time AI which resulted in a more condensed calving spread and 3% heavier average weaning weights due to calves being predominantly male and on average seven days older. Total breeding costs were higher for herds using sexed semen via AI at NZD 135-166 /cow compared with NZD 67-102 /cow for herds using only natural mating. Increases in breeding costs were relatively larger than any additional income for all herds using sexed semen via AI, resulting in lower COS (cash operating surplus) compared with herds using all-natural mating. The COS of using sexed semen via AI were 14% (COS = NZD 280 /ha) and 9% (COS = NZD 405 /ha) lower than all-natural mating using Simmental sires for the purebred Angus (COS = NZD 325 /ha) and AngusxHolstein-Friesian crossbred (COS = NZD 444 /ha) cow herds, respectively. It appears producing more fast-growing male calves through use of sexed semen via AI is not currently an economically feasible option for beef producers under extensive production systems. Future analysis could include benefits of access to higher genetic merit sires as the combination of superior genes and more male offspring may be more profitable than all-natural mating.

Turnover ratios of the world's leading publicly traded oil and gas corporations as an indicator of investment attractiveness of domestic vertically integrated oil and gas companies

Subject. The article considers the main turnover ratios of the twenty five leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The purpose is to determine the current values of the main turnover ratios of leading publicly traded oil and gas companies, to identify the key trends in their change within the studied period, to establish those factors that led to this transformation. Methods. The study rests on methods of comparative and financial-economic analysis, and generalization of materials of consolidated income statements. Results. The analysis of annual reports of 25 oil and gas companies enabled to determine the dynamics of changes in key turnover indicators in the stock market sector of the industry and establish the main factors that contributed to this transformation. The study period revealed a significant increase in the duration of asset turnover. The reason for such results was that the increase in the balance sheet valuation of assets outstripped the growth in net revenue. It turns out that invested capital began to take much more time to return to the industry company as net revenue from core activities. An insignificant reduction in the cash operating cycle was established, which was facilitated by an increase in the duration of payables turnover, which occurred against the background of a slight decrease in the receivables turnover time. The paper unveiled an increase in the inventory turnover period, which negatively affected the duration of the cash operating cycle. It also established that, despite the efforts of leading publicly traded oil and gas companies, the duration of asset turnover and the cash operating cycle increased quite significantly at the height of the global financial and industry crises. Conclusions. Many leading publicly traded industry corporations have an impressive backlog to further reduce the cash operating cycle.

Activity of settlement departments at the State Bank of Russia (1898—1917)

The paper examines clearing operations of settlement departments operating at the State Bank of the Russian Empire. The problem of clearing as a form of non­cash interbank settlement became extremely acute for the participants of the money market in the late 19th — early 20th century. The industrial achievements of Russia caused a significant increase in cash flows, which complicated the cash operations of not only of banking institutions, but also of economic entities of the country. This state of affairs demanded the speedy introduction of cashless payments in the banking sector of the Empire. It is noteworthy that at the end of the XIX century this problem began to be widely discussed in the Russian press and scientific circles. V. T. Sudeikin was one of the active supporters of the establishment of clearing houses in Russia. The Russian Ministry of Finance was sympathetic to the needs of the banking community, instructing the Governor of the State Bank, E. D. Pleske, to organize the preparation of a draft of Russian clearing houses. As a result of work on the aforementioned project, it was decided in 1898 to establish the first settlement institution at the St. Petersburg office of the State Bank. In subsequent years, such institutions were opened in numerous cities of the Empire. In 1914, there were settlement chambers in 45 Russian cities. The sum of their settlement operations exceeded 40 billion rubles, 80% of which were in St. Petersburg and Moscow.

Transformation of the banking sector under the influence of FinTech: The experience of China vs the experience of Russia

Subject. This article discusses the areas of transformation of the banking sector under the influence of financial technologies, considering the People's Republic of China (PRC) as a case study, as well as techniques of competition between traditional banks and FinTech companies. Objectives. The article aims to identify the main patterns of modification of the PRC banking sector and assess the relevance of China's experience for Russian banks. Methods. For the study, we used a statistical data analysis and econometric panel data-based model building. Results. Based on the primary statistical analysis of the banking sector as a whole and groups of banks in China, the article presents indicators on operational efficiency, retail finance, cash and liquidity management (as opposed to lending business) of financial intermediaries. It reveals some evidences of price competition of banks in the deposit, credit, and intermediary businesses. Using the econometric model, the article confirms the dependence of the credit margin on the market positions of FinTech companies, and the initial margin on the market positions of asset managers. Relevance. The findings may be of interest to national mega-regulators in terms of tracking the main areas of transformation of the banking sector under the influence of financial technologies and analyzing the dumping policy applied by banks for a possible loss of their financial stability in the face of competition with new financial market participants. Commercial banks can adopt the principles of non-price strategies of Chinese banks in competing with IT companies for the client.

Faktor Yang Mempengaruhi Earnings Persistence Pada Perusahaan Manufaktur Yang Terdaftar Di BEI

The purpose of this study is to identify the effect of operating cash flow, firm size, operating cycle, and sales volatility towards earnings persistence in manufacturing companies listed in Indonesia Stock Exchange in the year of 2017 – 2019. This study used 249 data from manufacturing companies that have been selected using purposive sampling method. This research used Statistical Product and Service Solution (SPSS) for windows version 21 to process the data. The result of research shows that operating cash flow and operating cycle has negative significant influence towards earnings persistence, while firm size and sales volatility has no significant influence towards earnings persistence. The implication of this study is the need to increase company’s earnings which will bring a good signal for investors.

INFLUENCE INVESTMENT OPPORTUNITY SET, OPERATING PROFIT MARGIN, CASH FLOW FROM OPERATING ACTIVITIES AND CASH FLOW TO EQUITY ON POLICY DIVIDEND ON A METAL COMPANY THAT LISTED ON INDONESIA STOCK EXCHANGE

The research objectives in this study are to find out and analyze the effect Investment Opportunity Set, To find out and analyze the effect Operating Profit Margin, To find out and analyze the effect of Cash flow from operating activities, to find out and analyze the effect Cash flow to Equity to the dividend payout ratio, to determine and analyze the effect of the Investment Opportunity Set, Operating Profit Margin, Cash Flow from Operating Activities and Cash Flow to Equity simultaneously on the Dividend Payout Ratio in metal companies listed on the Indonesia Stock Exchange for the 2016-2020 period. This study uses a quantitative approach, the regression analysis technique used in this study is a multiple linear regression analysis technique. The results of this study indicate that there is an influence between the Investment Opportunity Set on Dividend Policy. There is an effect of Operating Profit Margin on Dividend Policy. There is no influence of Cash Flow From Operating Activities on the Dividend Policy in. There is an effect of Cash Flow to Equity on Dividend Policy and the Fcount Value is 12, 130 with a significant level of 0.000, while Ftable is known to be 2.68. Based on these results, it can be seen that Fcount > Ftable (12,130 > 2,68) so that H0 is rejected and Ha is accepted so it can be concluded that the variables of Investment Opportunity Set, Operating Profit Margin, Cash Flow From Operating Activities, Cash Flow to Equity together have significant influence on the Dividend Policy of Metal Companies Listed on the Indonesia Stock Exchange for the 2016-2020 period.

ОСОБЕННОСТИ ПРОВЕРКИ ОРГАНИЗАЦИИ КАССОВОЙ РАБОТЫ С ЦЕЛЬЮ МИНИМИЗАЦИИ БАНКОВСКИХ РИСКОВ, ПРИСУЩИХ ОПЕРАЦИЯМ С НАЛИЧНЫМИ ДЕНЬГАМИ

The article presents the organization of internal control by the Bank of Russia within the framework of cash operations. The authors emphasize the structuring of the main risks inherent in cash transactions, therefore they are presented in this direction of banking. The article says that the main risksof cash work are: operational, reputational, legal, technological, strategic, credit risks, liquidity risk and others, and, moreover, are identified at any stage of working with cash. All these risks affect not only the activities of an individual credit institution, but also the banking system as a whole. Therefore, the authors propose to carry out risk-oriented control, as well as the main approaches and methods of checking cash transactions. The authors point out that internal control involves testing for compliance with internal documents with the necessary requirements of the Central Bank of the Russian Federation (laws, instructions, regulations, orders, contracts, including for specific measures (for example, the acquisition of the necessary equipment for cash registers, for the transportation of cash, insurance, automated software). It is necessary to check the correctness of the regulatory internal documents, employment contracts, the distribution of powers of employees, within the framework of cash work, and more.

Accounting of cash transactions and control of the right management of cash operations

Accounting of cash transactions and control of the right management of cash operations

Features of cash audit in the conditions of ensuring the enterprise’s cybersecurity

Introduction. Today, cash accounting transactions are important in the organization and activities of any enterprise, because they cover almost all areas of its financial and economic activities and require significant attention from the auditor, as during their implementation may occur various violations and overuses by officials of the enterprise. Since cash is the most mobile asset and in today’s business environment, basically, all cash payments are non-cash (electronically), there is a high probability of overuse by third parties. Therefore, performing an audit of cash operations and implementation cybersecurity of data about their calculations is an extremely important issue to increase the efficiency of accounting and management them in enterprises. The purpose of the paper is to determine the role of cash audit for the company and ways to increase efficiency of its implementation in terms of cybersecurity of the enterprise. Results. The article acquaints with the work of various economists on the interpretation of the concept of “cash”, so we can say that cash – are the most liquid assets of the company, which are in the form of cash at the box office, cash in the bank accounts and demand deposits. The general strategy and the plan of cash audit in terms of cybersecurity of the enterprise are considered. The main reasons occurrence of problem ensuring of cybersecurity of operations with cash of the enterprise are indicated. An appropriate level of information security for cash transactions has been proposed in order to prevent threats in the enterprise. Ways to damage information security in the process of conducting an audit of cash of the enterprise are improved. Conclusions. Cash audit must be conducted in conjunction with the implementation of the necessary cybersecurity measures in the enterprise in order to reduce the level of disclosure, leakage and unauthorized access to confidential information about cash and to ensure a high level of protection of the company’s own information sources.

INFLUENCE INVESTMENT OPPORTUNITY SET, OPERATING PROFIT MARGIN, CASH FLOW FROM OPERATING ACTIVITIES AND CASH FLOW TO EQUITY ON POLICY DIVIDEND ON A METAL COMPANY THAT LISTED ON INDONESIA STOCK EXCHANGE

The research objectives in this study are to find out and analyze the effect Investment Opportunity Set, To find out and analyze the effect Operating Profit Margin, To find out and analyze the effect of Cash flow from operating activities, to find out and analyze the effect Cash flow to Equity to the dividend payout ratio, to determine and analyze the effect of the Investment Opportunity Set, Operating Profit Margin, Cash Flow from Operating Activities and Cash Flow to Equity simultaneously on the Dividend Payout Ratio in metal companies listed on the Indonesia Stock Exchange for the 2016-2020 period. This study uses a quantitative approach, the regression analysis technique used in this study is a multiple linear regression analysis technique. The results of this study indicate that there is an influence between the Investment Opportunity Set on Dividend Policy. There is an effect of Operating Profit Margin on Dividend Policy. There is no influence of Cash Flow From Operating Activities on the Dividend Policy in. There is an effect of Cash Flow to Equity on Dividend Policy and the Fcount Value is 12, 130 with a significant level of 0.000, while Ftable is known to be 2.68. Based on these results, it can be seen that Fcount > Ftable (12,130 > 2,68) so that H0 is rejected and Ha is accepted so it can be concluded that the variables of Investment Opportunity Set, Operating Profit Margin, Cash Flow From Operating Activities, Cash Flow to Equity together have significant influence on the Dividend Policy of Metal Companies Listed on the Indonesia Stock Exchange for the 2016-2020 period.

Producing Higher Value Wool through a Transition from Romney to Merino Crossbred: Constraining Sheep Feed Demand

A strategy to increase wool income for coarse wool (fibre diameter > 30 µm) producers through a transition to higher value medium wool (fibre diameter between 25 and 29 µm) was identified, with previous analyses allowing sheep feed demand increases to impractical levels during the transition period. This study modelled a whole flock transition from Romney breed to a ¾Merino¼Romney flock through crossbreeding with Merino sires, with sheep feed demand constrained between 55% and 65% of total grown feed. Transition was complete after 12 years, and the final ¾M¼R flock had higher COS (cash operating surplus; NZD 516/ha) than the base Romney flock (NZD 390/ha). Net present value analyses showed the transition always had an economic benefit (up to 13% higher) over the Romney flock. In a sensitivity analysis with sheep and wool sale prices changed by ±10%, higher sheep sale prices reduced the economic benefit of the transition (NPV up to 11% higher) over the Romney flock, as sheep sales comprised a higher proportion of income for the Romney flock, and higher wool sale prices increased the benefit (NPV up to 15% higher) of the transition to ¾M¼R over the Romney flock. This study demonstrated a whole flock transition from Romney to ¾M¼R breed was profitable and achievable without large variation in sheep feed demand, although the scale of benefit compared to maintaining a Romney flock was determined by changes in sheep and wool sale prices.

Fleet Upgauging and Reducing Flight Frequency

Aircraft economies of scale do exist but are challenging to capitalize due to market-related, technical, and regulatory constraints. This study explores the temporal, economic, and ecologic impact of systematically upgauged fleets with the overall goal to assess the potential of frequency regulation. Upgauging refers to increasing aircraft size in terms of its seat capacity. Specifically, the tradeoffs between cash operating cost, fuel consumption, aircraft utilization, air traffic flow management delay, and passenger travel time are investigated within the EUROCONTROL area. Methodically, a fleet assignment model is applied that solves a linear optimization problem for each frequency-reduced route for a long-term timeframe of 20 years (2020–2040). If upgauging is limited to single-aisle aircraft, cash operating cost and fuel consumption savings are the highest with up to 5% on the frequency-reduced routes in 2040. This is accompanied by a decrease of total annual air traffic flow management delay of 17%. Upgauging the fleet into the twin-aisle segment yields a stronger reduction in total annual air traffic flow management delay (21%) but increases cash operating cost and fuel consumption (5 and 7%, respectively). The market entry of a single-aisle new midsize airplane could increase the economic and ecologic attractiveness of upgauging.