Short-term Assets Research Articles

Management Mechanisms of Rehabilitation Hospitals in Bulgaria. Short Communication

In a market economy and financial crisis, the head of any medical institution has to make adequate decisions regarding the cost-effective functioning of the hospital. Along with reducing costs, the main task is to maintain a high level of medical care. In this paper, the economic efficiency of medical activities in three specialized hospitals for rehabilitation (previously called sanatoriums) in the cities of Hisar, Varna and Bankia in Bulgaria was studied. The competitiveness of the presented rehabilitation institutions lies in their ability to design, produce and offer rehabilitation services that are more attractive to patients in terms of price and quality characteristics and more fully meet their needs compared to the rehabilitation services of competitors. Based on the analysis, it was found that in rehabilitation hospitals, through long-term obligations, the purchase of short-term assets necessary for the implementation of activities is financed, and operating income is invested in long-term assets. This fact determines the increase in liabilities to the company by further minimizing free cash flows, which involve financing current activities, but are invested in non-current assets. At the same time, rehabilitation hospitals — budgetary organizations strictly comply with capital expenditures, which must be specified in the appropriate paragraph, with an approved budget according to the appropriate indicator, which proves strict compliance with budgetary discipline and control over the flow of funds.

Use of benchmarking as a tool of lean production in the mechanism of cost management in an agricultural organization

The mechanism of cost management, reflecting the peculiarities of its organization at the microand macro-level, with the application of lean production principles (focus on creating value for the customer, continuous improvement, strategic orientation, loss reduction, visualization and transparency, etc.) is presented. Methodological approaches to cost rationing in the production of agricultural products, taking into account the conditions of its production (resource availability of organizations) and the level of efficiency of resource expenditure are substantiated. The novelty of the considered approach consists in the use of the tool of lean production – cost benchmarking. It allowed to calculate the reserves of growth of productive indicators of agricultural producers’ activity taking into account their provision with long-term and short-term assets, labor resources.

CAPITAL BUDGETING

The project talks about a capital budgeting and its methods including discounted cash flow, payback, and throughput analyses. The process involves analyzing a project’s cash inflows and outflows to determine whether the expected return meets a set benchmark, we are going to talk about how capital budgeting is also important for small and big companies to evaluate major projects and investments, such as new plants or equipment. In the present scenario the efficient allocation of capital resources is a most important function of project management. This function involves firm’s decision to invest its funds in long-term assets like plant, machinery land, building, equipment etc. These assets are extremely important to the firm because the organizational profits are derived from the use of its capital investment in assets which represent a long-term commitment of funds. The future development of an enterprise depends on the capital investment projects. These projects may be the replacement of existing capital assets which turns out to be less attractive to the firm or expansion of business for implementing new ideas and planning. Thus, long term investment decisions of an enterprise fall within the definition of project budgeting or capital expenditure decisions. These decisions are concerned with the acquisition of assets in which funds will be invested by an enterprise. The assets of business include long term assets and short-term assets. Long term assets will yield a return over a period of time whereas short term assets are those assets which are easily convertible into cash within one accounting period, normally a year. The long-term investment decision is known as project budgeting/capital budgeting and the short-term investment decision are identified as working capital management.

STUDY ON MANAGEMENT OF WORKING CAPITAL OF COFORGE LTD

The project report provides a comprehensive analysis of working capital management at Coforge IT Solutions Ltd., emphasizing the practical experience gained in a corporate setting. The report outlines the finance department’s functions, divisional structure, and decision-making processes related to working capital management. Key aspects such as the relationship between a company’s short-term assets and liabilities, and the goal of ensuring sufficient cash flow for operational expenses and debt obligations are discussed. The report details the use of working capital in various aspects of the company’s operations, including raw materials, work in progress, finished goods, inventories, sundry debtors, and day-to-day cash requirements. Furthermore, the report includes a detailed analysis of financial ratios over the last five years, such as working capital turnover ratio, quick ratio, current ratio, and inventory turnover ratio. It concludes that Coforge IT Solutions Ltd. Effectively manages its working capital, with all departments working in coordination. However, the report also provides suggestions for further improvement based on the project study, aiming to enhance the company’s progress. The period considered for the study is five years i.e from Financial year 2018-19 to 2022-23. The research methodology adopted for this study is both primary and secondary of data which include annual reports & websites, questionnaire, phone call interview & face to face meeting. This project tries to evaluate how the management of working capital is done in Coforge IT Solutions Ltd. Through Intra Firm Ratio Analysis and comparative Statement Analysis. The Study of working capital management has shown that Coforge IT Solutions Limited has a fairly strong working capital position. The company is also enjoying reasonable profits.

Capital Structure Determinants of Listed Private and State Companies

Purpose. The purpose of this paper is to determine and analyze the determinants of the capital structure of joint-stock companies in Bosnia and Herzegovina that are listed on the Banja Luka Stock Exchange. This study will answer the question as to which factors determine the capital structure of BiH companies and whether existing financial theories of the capital structure hold true in that context. The main research objective is to estimate the effects of a firm’s level determinants on its capital structure measures in different ownership structures. Those findings will certainly advance our understanding of listed companies financing behavior. Methodology. For the research, we took into account firm-specific characteristics and divided joint-stock companies into private and state-owned. The results of the research show that the capital structure of these two groups of enterprises is differently affected by individual determinants. Findings and implications. While state-owned enterprises rely more on borrowed resources to finance both short-term and long-term assets, private enterprises even finance part of their short-term assets with their own capital. However, the most important determinant in both groups of enterprises is the share of inventories in short-term assets, which confirms that short-term liabilities, i.e. free sources of financing in the form of liabilities to suppliers are the determinant that most positively affect the indebtedness of all enterprises. Unlike previous research that observed enterprises according to their size or affiliation to individual industries, the focus of our research is enterprises of different ownership structures. The empirical statistical results provide basis for logical conclusion and appropriate policy implications. The study points to the specifics of the capital structure in private and publicly listed joint-stock companies. The stated opposite influence of certain ratios on the indebtedness of the enterprises is explained by a number of factors. Limitations. This study focuses only on the presentation of the recent indicators of capital structure of listed companies - listed on the Banja Luka Stock Exchange, which is one of its major limitations. The limitation of this search is the sample size which can be considered low. Further research may be conducted by using other capital markets to explore more information regarding the effect of the variables affecting the capital structure. In addition, further research may also be conducted by using other proxies or by adding more variables, sample size, and research period to get a better result. Originality. The study is an original research paper. It has not been published in any other peer-reviewed journal not under consideration for publication by any other journal. The paper adds to the existing literature on Bosnia and Hezegovina by giving an overview of recent developments in the flexi purity concept, pointing out the areas that require policy response.

Exploring the Relationship between Working Capital Management, Liquidity, and Financial Performance within the Context of Kenyan SME’s

The concept of working capital revolves around the effective administration of short-term assets and liabilities within an organization, with the ultimate goal of augmenting profitability and safeguarding against potential insolvency scenarios. In this scholarly article, we undertake a thorough evaluation of the intricate relationship between working capital management, liquidity, and financial performance within the context of Kenya, with a particular focus on small and medium enterprises. Our analysis primarily relies on an exhaustive review of pertinent academic literature that delves into the subject matter at hand. A noteworthy observation that emerged from this investigation was the realization that inadequate working capital management has the potential to precipitate the downfall of even the most prosperous corporations. The majority of the scrutinized literature unequivocally posits that a strong correlation exists between working capital management and profitability. Moreover, it is imperative to acknowledge the pivotal role played by liquidity, firm size, leverage, and various other financial ratios, as these factors constitute integral components of the overarching framework of working capital management.

The impact of monetary policy normalisation on secured money markets

Rationale This article offers an empirical analysis of the main factors which explain the variations in the repo-deposit facility rate (DFR) spread in the euro area, focusing on the impact of monetary policy normalisation. The findings suggest that a notable rise in interest rate expectations was the main factor behind the widening of the spread in 2022. In 2023 the slowdown in the pace of interest rate hike expectations and the Eurosystem’s balance sheet reduction returned the spread to the levels prior to the start of the policy rate hiking cycle. Takeaways •The widening of the repo-DFR spread in 2022 arose mainly from interest rate hike expectations. •Other conjunctural factors such as monetary policy uncertainty and the demand for short-term assets also contributed to the widening of the spread. •The temporary tensions seen in this market in 2022 eased in 2023 with lower expectations of interest rate hikes.

Analysis of the Effect Current Ratio on Return on Assets at PT Astra Otoparts TBK.

This study makes an important contribution in understanding the relationship between current ratio and return on assets at PT Astra Otoparts Tbk. Through the use of a simple linear regression test on financial statement data for the period 2015-2022, this study intends to explain the extent to which the current ratio affects the company's return on assets. Current ratio, as the independent variable, is used as an indicator of the company's ability to meet its short-term obligations, while return on assets, as the dependent variable, reflects the company's level of profitability. The results show that, although the current ratio has a positive influence on return on assets, the influence is not statistically significant. In other words, the increase in current ratio does not contribute significantly to the increase in return on assets at PT Astra Otoparts Tbk. The findings can provide valuable insights for company management in designing financial strategies, especially in terms of managing short-term assets and liabilities. In the context of the automotive and spare parts industry in Indonesia, where PT Astra Otoparts Tbk operates, an in-depth understanding of the factors that influence return on assets is crucial. The results of this study can serve as a basis for similar companies to evaluate and improve their financial performance, optimize asset allocation, and manage short-term liabilities more effectively. Further research and the integration of other factors in financial analysis can help shape a more holistic and sustainable business strategy amidst changing market dynamics.

Effect of Firm Size on Short Term Debt of Firms Listed on the Nairobi Securities Exchange, Kenya

The capacity of a firm, the diversity and number of production capabilities, or the quantity and multiplicity of services a firm may simultaneously give to its consumers can all be considered as part of the firm's size. Short-term obligations should be used to fund short-term assets. The study evaluated the effect of firm size on short term debt on companies listed on Nairobi securities exchange. The study was anchored on agency theory and the growth firm theory. The study utilized descriptive research design. The study used secondary data from annual accounting report of quoted firms on Nairobi securities exchange. Data analysis was performed in order to convert obtained data into a format that can be used for interpretation and conclusion, therefore analysis was based on panel data, the analysis was based on panel regression. Result demonstrated a negative and significant effect between firm size and short term debt. The study recommends that management of firms’ especially larger firms should access long term financing which can be more long term investment which can enhance firms’ growth and competitiveness and smaller firms should not rely on short term debt.

A STIUDY ON WORKING CAPTIAL MANAGEMENT” AT ADITYA AUTO PRODUCTS AND ENGINEERING PRIVATE LIMITED, DODDABALLAPUR.

This study delves into the intricacies of working capital management (WCM) within Aditya Auto Products and Engineering Private Limited. The objective is to analyze the company's strategies for efficiently managing, its current assets & liabilities to maintain optimal liquidity and operational efficiency. By examining the company's cash conversion cycle , inventory turnover, & accounts receivable/payable processes, this research aims to provide insights into the effectiveness of Aditya Auto Products' WCM practices. The findings from this study will contribute to a better understanding of company's financial health and provide recommendations for potential improvements in its WCM strategies. Keywords : WCM , Financial health, Operational efficiency, Short-term assets, Liabilities, Liquidity, Resource, Profitability, Cash , Accounts receivable , Accounts payable Inventory, Efficient etc.

Impact of Regular Audit Practices on Financial Health among Tulip Bulb Suppliers in the Netherlands: An In-depth Study

This in-depth study aimed to evaluate the effect of regular audit practices on the financial health of tulip bulb suppliers in the Netherlands. Data was collated from 150 tulip bulb enterprises, representing both large-scale suppliers and smaller family-run operations, spanning a period of 10 years (2015-2020). To assess financial health, key indicators such as liquidity ratios, solvency ratios, and profitability ratios were considered. Statistical analysis revealed that companies subjected to regular audit practices demonstrated a 15% higher median profitability ratio compared to those that had infrequent or no audits. Furthermore, liquidity ratios, indicative of a company's short-term financial health, were on average 18% more favorable among frequently audited suppliers, signifying a better capacity to cover short-term liabilities with short-term assets. In contrast, solvency ratios, which reflect long-term financial health, showed a less pronounced difference between the two groups, with regularly audited firms having only a 5% advantage. Qualitative data, gathered through interviews with CEOs and CFOs of the tulip suppliers, provided insights into the observed statistical results. A significant number of respondents (82%) believed that regular audits instilled a sense of financial discipline and accountability, subsequently impacting their financial decisions and strategies favorably. In conclusion, the research shows the positive implications of regular audit practices on the financial health of tulip bulb suppliers in the Netherlands. While profitability and liquidity were notably better among those subjected to consistent audits, the influence on long-term solvency was less pronounced. Keywords: Regular Audit Practices, Financial Health, Tulip Bulb Suppliers, Netherlands, Profitability Ratios

РАЗВИТИЕ МЕТОДИЧЕСКОГО ИНСТРУМЕНТАРИЯ ВНУТРЕННЕГО КОНТРОЛЯ ОБОРОТНЫХ АКТИВОВ В МОЛОЧНОМ СКОТОВОДСТВЕ

Accounting and control of current assets of dairy cattle breeding in individual agricultural organizations includes the collection of information on the state and safety of various types of assets, such as cash and cash equivalents, receivables, inventory, other short-term assets, and an assessment of the effectiveness of their use in the agricultural industry. To improve the procedures for summarizing information on the current assets of dairy cattle breeding, it is advisable to use the Internal Control Working Document (hereinafter referred to as the ICWD) “The program for internal control of the movement and efficiency of the use of current assets of dairy cattle breeding”. This document is used to test the accounting system for current assets of dairy cattle and evaluate internal controls and the effectiveness of their use. For internal control of current assets at each stage of transformation, the ICWD “Checking the correctness of the assessment of current assets of dairy cattle breeding by stages of transformation” is used. During the verification process, the controller, using this document, can, at each stage of the transformation of current assets of dairy cattle breeding, give a timely and accurate assessment of these assets, which allows a more accurate idea of the actual availability of assets and their value at a certain point in time. To improve the efficiency of the internal control system, the “Regulation on Internal Control of Current Assets” can be used. The regulation regulates the accounting and internal control of current assets of dairy cattle breeding, the forms of the ICWD will help the management personnel to receive information on the value of assets in a timely manner at any stage of the production process and evaluate the effectiveness of their use. These internal control documents will allow at all stages of the transformation of current assets of dairy cattle breeding to control the movement, the correctness of the assessment and the efficiency of the use of these assets. Based on the results of the audit, summarized in the developed working documents of internal control, the management of the enterprise can make management decisions to improve the efficiency of the use of current assets of dairy cattle breeding.

Time and Frequency Connectedness Among Emerging Markets and QGREEN, FinTech and Artificial Intelligence-Based Index: Lessons from the Outbreak of COVID-19

The study is about contributing to the ongoing discussion on the diversification opportunities for emerging markets with non-conventional asset class. The limited literature in the era of fourth industrial revolution motivates us to gauge diversification opportunities. This study is focusing on identifying diversification opportunities with a set of unique asset classes that are the proxies for Green Funds, FinTech and Artificial Intelligence-based index funds. The method and model applied in the study are time and frequency connectedness in a Wavelet Coherence, and for the robustness check—Network analysis has been applied. The originality of the study lies in identifying the impact of the outbreak of COVID-19. The results captured that FinTech-based asset was the most resilient asset class during the pre- and post-outbreak of COVID-19, followed by AI-based fund and finally by Green fund. Henceforth, FinTech provides superior diversification opportunities among all with MSCI Emerging Market. AI and Green funds are captured to be invested in the long term for diversification, whereas FinTech is suitable for both long- and short-term assets. The results are relevant for investors in emerging markets and for policymakers as well.

Liquidity management in small and medium-sized construction enterprises during crisis - the case of Croatia

Purpose: The aim of this study is to investigate the effects of liquidity management on the profitability of small and medium-sized Croatian enterprises during the economic crisis of 2008 and the crisis caused by COVID-19 and provide empirical evidence of the effects of liquidity management on profitability. Methodology: The collected data were analyzed using the methods of descriptive statistics, chain and base indices as well as Spearman’s correlation coefficient, while the normality of the distribution of the selected sample of small and medium-sized enterprises was examined with the Shapiro-Wilk W test. Results: According to the research results, the economic crisis in the period from 2008 to 2014 had more pronounced negative effects on liquidity management of the observed companies than the economic crisis in the conditions of the COVID-19 pandemic. Conclusion: The research results showed that liquidity management and achieving adequate profitability in times of crisis are very important for small and medium-sized construction companies because their total assets are dominated by short-term assets, while short-term liabilities are their dominant source of funding so better education in the field of finance is recommended in order to understand the use of their own and others sources of funding.

Effect of Treasury Single Account on Liquidity of Banks in Nigeria

This study, effect of treasury single account (TSA) on liquidity of banks in Nigeria, was conducted in Nigeria. The adoption of TSA in Nigeria raised concern about its effect on bank’s liquidity because, before 2015, deposits of the ministries, departments and agencies (MDAs) of government contributed a significant proportion of banks’ liquidity. The specific objectives of this study were to evaluate the effect of TSA on the cash ratio, absolute liquidity ratio, liquidity coverage ratio and net working capital ratio of banks in Nigeria. The study adopted an ex-post facto design. Data were generated from the audited financial reports of the selected domestic systemically important banks (D-SIBs) in Nigeria from 2008-2014 (pre-TSA period) and 2015–2022 (post-TSA) period. Paired sample t-test was employed to analyze the data using Stata 14.2. The study found that TSA has a significant negative effect on absolute liquidity ratio; a non-significant negative effect on cash ratio and net working capital ratio; and statistically non-significant positive effect on the liquidity coverage ratio. These findings imply that Nigerian banks have not yet adjusted their liquidity management policies and strategies to cushion the negative economic externality effects of TSA adoption by the government on the banks. Therefore the study recommends efficiency in liquidity management, particularly investment of short-term assets and transferable assets to cushion the adverse effect of future liquidity distress.

Financial reporting for cryptocurrency

This study compares and contrasts US and international accounting and financial reporting practices for cryptocurrency. We analyze the financial statements of 40 global companies that have exposure to cryptocurrencies, including cryptocurrency purchases, mining, payments, trading, and investments in ICOs and early-stage blockchain ventures. We document inconsistency between Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), as well as distortions that can mislead users in assessing asset value, liquidity, profitability, and cash-generating abilities across firms. In particular, firms receiving cryptocurrencies in revenue-generating activities account for cryptocurrencies as intangibles using different measurement bases and classify the associated cash inflows differently. Some firms place cryptocurrencies in the usual long-term location of intangibles, while others consider intangibles as liquid, short-term assets. Limited guidance about crypto-assets from both IFRS and GAAP lets companies choose which existing standard to apply and how to apply it. Understanding the financial and valuation implications of these new virtual assets is vital for future accounting research and professional practice.

A STUDY ON WORKING CAPITAL MANAGEMENT IN PAZHAVOOR PRIMARY AGRICULTURE COOPERATIVE CREDIT SOCIETY LTD, PAZHAVOOR, TIRUNELVELI, TAMIL NADU.

The title of the research article is “A Study on Working Capital Management in Pazhavoor Primary Agriculture Cooperative Credit Society Ltd., Pazhavoor, Tirunelveli, Tamil Nadu.” Working capital management involves the relationship between a company's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a company is able to continue its operation and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable and cash management. Further the study is based on last five years annual reports of Pazhavoor Primary Co-operative Society. The objective of the study is to analyze the working capital position in Pazhavoor Primary Co-operative Society and to analyze the profitability and solvency position of the Pazhavoor Primary Co-operative Society. The study of working capital is based on tools like Ratio analysis, statement of changes in working capital, comparative balance sheet and trend analysis. By analyzing the topic of working capital management in Pazhavoor Primary Co-operative Bank Ltd. It concludes that the bank is having less working capital in the year 2019 but in the year 2020 the working capital is increasing, So the bank maintains the constant working capital which helps perform the day-to-day business by increasing the current asset

PENGARUH RASIO KEUANGAN DAN FIRM SIZE TERHADAP RETURN SAHAM LQ45 PADA MASA PANDEMI COVID-19

This study is to determine the impact of the current ratio, earning per share, and firm size during the COVID-19 pandemic. This research case study focuses on LQ45 emitens’ index on 2020. This is a quantitative research with an associative approach. The population of this study consists of 45 companies with ten companies as samples that are selected using purposive sampling technique. The data analysis method for this study uses SPSS 20 software. The results show that the current ratio has no causality effect on stock return. A high value of current ratio not only illustrates the company’s strong liquidity position, but can also indicate inefficient use and management of cash and other short-term assets. Earning per share does not affect the stock return. High EPS does not necessarily reflect the effectiveness of good company management, this is because the cost of capital is not calculated in obtaining net profit after tax. In addition, dividend is not necessarily only determined by the value of EPS because many factors are considered through the general meeting of shareholders. Firm size does not affect the stock return. Large companies with high total assets will tend to invest more capital. In a stable economic condition, profits will tend to increase. However, in crisis condition, large companies tend to have large operating costs so that they have the potential to burden the company and decrease return. Therefore, large companies do not necessarily provide large stock returns for their investors, and vice versa. Keywords: current ratio; earning per share; firm size; stock return; covid-19 pandemic

Profitability, asset investment, and aggregate stock returns

We find that aggregate profitability and asset investment exhibit robust joint predictive power for aggregate excess stock returns, consistent with the investment model of Hou, Xue, and Zhang (henceforth HXZ, 2015). These results provide out-of-sample empirical support for HXZ, as the same mechanisms that HXZ use to explain firm-specific variation in stock returns can also be used to explain variation that is market-wide in nature. Also consistent with the HXZ investment model, we find that the growth rate of short-term (long-term) assets exhibits a stronger predictive power for one-year-ahead (two-year-ahead) stock returns.

Sustainability of Microfinance Institutions in Thailand

Microfinance programs play a vital role in poverty alleviation in developing countries; however, most microfinance institutions (MFIs) face the challenge of maintaining financial sustainability. While several studies have investigated factors affecting MFI financial sustainability, only a few focus on MFIs in Thailand. This paper uses the random effect model to study the determinants of Thai MFIs’ financial sustainability. Results show that sustainability is affected by the efficiency of Thai MFI staff members in managing borrowers and the MFIs’ ability to use their short-term assets to generate cash or revenue. Moreover, Thai MFIs do not benefit from economies of scale and do not reach the very poor households. This study recommends that MFIs should ensure that their social and financial goals are adequately balanced. It proposes that MFIs use a mixed approach: follow profit maximization principles and embrace technology to minimize operational costs.