A DYNAMIC AND STATIC VIEW OF THE FINANCIAL SECURITY OF DAIRY COOPERATIVES

2021 ◽  
Vol XXIII (2) ◽  
pp. 109-119
Author(s):  
Mirosław Wasilewski ◽  
Marzena Ganc
Keyword(s):  
Cash Flow ◽  
Two Dimensions ◽  
Raw Material ◽  
Financial Security ◽  
Specific Nature ◽  
Equity Value ◽  
Static View ◽  
Liquidity Measures ◽  
Dairy Cooperatives ◽  
Research Period

The aim of the research was to identify and assess the dynamic and static dimension of the financial security of dairy cooperatives in the area of liquidity. Cooperatives with a higher equity value than average and with a cash flow statement were purposively selected. The final research sample included 20 dairy cooperatives. The research period covered the period from 2017 to 2019. Statistically speaking, dairy cooperatives are generally financially secure as a result of the specific nature of their business, which is geared towards benefiting their members – milk suppliers – through timely payments for raw material delivered. Most of the entities studied were characterised by over-liquidity in static terms, which should be assessed favourably from the perspective of the cooperative form of management. In dynamic terms, however, not all entities were characterised by favourable values of cash productivity ratios. Static liquidity measures do not provide a complete and transparent picture of the financial security of dairy cooperatives and should be considered both static and dynamic. Only an interpretation of the two dimensions of liquidity indicators will allow an effective interpretation of this issue in relation to dairy cooperatives. Moreover, when assessing liquidity, account should be taken of the specificities of cooperative management activities, where static measures in this area are above literature standards, while dynamic liquidity measures do not always reach satisfactory volumes.

Discounted Cash Flow Method for Valuing International Chemical Distributors

2018 ◽  
Keyword(s):  
Cash Flow ◽  
Discounted Cash Flow ◽  
Case Scenario ◽  
Flow Models ◽  
Flow Method ◽  
Study Approach ◽  
Equity Value ◽  
Multiple Case ◽  
Set Up ◽  
Discounted Cash Flow Method

Do special considerations apply to valuation in the case of large global chemical distributors? This study seeks to identify whether Income-based Discounted Cash Flow method based on projected future income would be suitable to value international chemical distributors. Two- and Three-stage Discounted Cash Flow models will be used. The expected companies’ enterprise and equity value are compared with the existing companies’ valuations. A base, bear and bull case scenario will be set up to establish the range of the company’s value for comparison with the existing valuation. This study adopts a single multiple-case study approach where actual financial data from three of the world’s largest chemical distributors were used to establish the existing companies’ valuation to demonstrate the validity and applicability of the Discounted Cash Flow method for sensitivity analysis.

scholarly journals Pengaruh pajak tangguhan dan ukuran perusahaan terhadap persistensi laba

2021 ◽  
Vol 2 (2) ◽  
pp. 139-150
Author(s):  
Dian Maulita ◽  
◽  
Dien Sefty Framita ◽  
Keyword(s):  
Linear Regression ◽  
Cash Flow ◽  
Quantitative Research ◽  
Sampling Technique ◽  
Earnings Persistence ◽  
Company Size ◽  
Analysis Technique ◽  
Cash Flow Volatility ◽  
Deferred Tax ◽  
Research Period

Purpose: This research aimed to determine the effect of deferred tax and company size on earnings persistence in Indonesia's hotel and tourism companies. Research methodology: This research is associative quantitative research. The analysis technique used multiple linear regression with SPSS VS 20.00 as a tool. The population is hotel and tourism companies listed on the IDX for the 2012-2017 period. Samples were taken based on the purposive sampling technique. Results: The conclusions of this study's results are: (1) Deferred tax has no significant effect on earnings persistence. (2) Firm size has a significant effect on earnings persistence. (3) Deferred Tax and Company Size have a significant effect on Earnings Persistence. Limitation: This research's limitations are the short research period and the company's short scope is the object. It is hoped that further research will be done by replacing or adding other dependents such as cash flow volatility, sales volatility, leverage and increasing the scope of the company under study. Contribution: This research's contribution is that the results of this study can be used as a reference for further researchers and a reference for company management in making decisions. Keywords: Deferred tax, Company size, Profit persistence

scholarly journals Corporate Liquidity And The Significance Of Earnings Versus Cash Flow: An Examination Of Industry Effects

2011 ◽  
Vol 15 (3) ◽  
pp. 37 ◽  
Author(s):  
Carol Lancaster ◽  
Jerry L. Stevens
Keyword(s):  
Cash Flow ◽  
Manufacturing Industry ◽  
Explanatory Power ◽  
Working Capital ◽  
Industry Effects ◽  
Corporate Liquidity ◽  
Cash Conversion Cycle ◽  
Liquidity Measures ◽  
Larger Sample

<span>Prior studies in this journal tested relationships between measures of cash flow, accrual income, and both static and dynamic liquidity. The analysis is extended in this paper to test for industry effects where the relationships are not constant across industry groupings, making it difficult to generalize the findings from a larger sample of firms. The finding in other studies that accrual income has no incremental explanatory power for changes in the cash conversion cycle measure of liquidity can be generalized across industry groupings. But, prior studies find that working capital from operations and cash flow from operations have incremental explanatory power for liquidity measures while we show that this relationship is industry-specific and cannot be generalized across all firms. Also, we find that the incremental explanatory power of accrual income for changes in measures of static liquidity, such as current and quick ratios, is found almost exclusively in the manufacturing industry. Industry effects found in this study suggest the need for more caution in generalizing relationships between accrual income, cash flow, and liquidity measures.</span>

scholarly journals MECHANISMS OF FORMATION OF REPRODUCTION LOGISTICS OF THE MILK AND DAIRY PRODUCTS MARKET IN UKRAINE

2020 ◽  
Vol 22 (4(77)) ◽  
pp. 116-127
Author(s):  
O.V. NIKISHYNA ◽  
M.L. TARAKANOV
Keyword(s):  
Milk Production ◽  
Dairy Products ◽  
Raw Material ◽  
Material Base ◽  
Mechanism Of Formation ◽  
State Support ◽  
Economic Mechanism ◽  
Reproduction Process ◽  
Dairy Market ◽  
Dairy Cooperatives

Topicality. The task of improving the efficiency of the dairy market, as one of the strategic markets of Ukraine, necessitates solving many problems of its development, in particular, reducing the raw material base, unbalancing relations between entities, reducing the quality of dairy products, increasing imports and more. The main direction of solving the problems is to ensure equal conditions for the participation of small and medium producers in the reproduction process by creating multifunctional dairy cooperatives with a complete cycle of dairy products. Aim and tasks. The purpose of the article is to substantiate the components of the organizational and economic mechanism of formation of reproduction logistics of the dairy market, focused on ensuring equal conditions for the movement of dairy products between small, medium and large market participants on the basis of priority state support for multifunctional dairy cooperatives with the completed reproduction cycle of product traffic. During the research the following methods were used: dialectical, theoretical generalization and comparison, graphical, structural-logical method. Research results. Ensuring equal conditions for the participation of small and medium-sized producers in the reproduction process of the market is possible only through the in-depth transformation of existing mechanisms and organizational and legal forms of milk production on the basis of their priority state support. The proposed structural model of multifunctional dairy cooperatives compared to the traditional structure of existing cooperatives provides for the presence of its own raw material base for milk production, its own processing facilities, its own distribution channels and sales of finished dairy products through the cooperative retail network. Conclusion. The introduction of the proposed number of levers and tools for the formation of multifunctional dairy cooperatives involves improving the institutional support of this process. This necessitates the priority development of relevant laws and regulations that will help improve the efficiency of small and medium-sized dairy markets. The scientific novelty of the study lies in the theoretical substantiation of the organizational and economic mechanism of formation of reproduction logistics of the dairy market of Ukraine, the development of a differentiated approach to supporting the raw materials of the dairy market depending on the level of dairy farming in the regional dimension. The applied significance of the obtained results is determined by the possibility of their use by different institutions in the process of substantiation of measures and tools of dairy market regulation at the national, regional and local levels.

scholarly journals Vermicomposting: a transformation alternative for rumen content generated in slaughterhouses

2020 ◽  
Vol 73 (2) ◽  
pp. 9201-9212
Author(s):  
Lady Bohórquez-Sandoval ◽  
Francisco García-Molano ◽  
Walter Murillo-Arango ◽  
Javier Cuervo-Bejarano ◽  
Nancy Pulido-Soler
Keyword(s):  
Growth Rate ◽  
Solid Waste ◽  
Organic Fertilizer ◽  
Principal Component ◽  
Transformation Process ◽  
Two Dimensions ◽  
Raw Material ◽  
Rumen Content ◽  
Valuable Product ◽  
Biological Transformation

Rumen content is a waste produced in slaughterhouses. This type of solid waste can cause bad odor and atmospheric pollution if discharged directly into the environment. Additionally, it may spread disease due to the nesting vectors, and the resulting leachate can lead to groundwater contamination. The objective of this study was to determine the suitability of rumen content, waste generated in the slaughterhouse of Villapinzón (Cundinamarca), as raw material for biological transformation into vermicompost at the Fertisoluciones facilities. The characteristics of the rumen content were analyzed, and during the transformation process, three volumetric capacities (T1: 5.94 m3, T2: 23.01 m3, and T3: 16.74 m3) of compost bed were evaluated for 105 days. Through a principal component analysis, the data was reduced in two dimensions that explained 65.8% of the total variance; the first component related to the number of juvenile individuals, high pH, low moisture and temperature; and the second component related to numbers of adults individuals and high temperatures. The earthworm growth rate was determined by the food quality, as well as by bed size. Microbiological and physicochemical analyses were performed on the resulting vermicompost, demonstrating that the transformation process of rumen material into organic fertilizer, performed in Fertisoluciones facilities, fulfills the parameters required by the NTC5167 standard. This study showing the possibility of using a slaughterhouse’s solid waste and convert it into a valuable product to an industrial scale.

Accruals, Accounting-Based Valuation Models, and the Prediction of Equity Values

2005 ◽  
Vol 20 (4) ◽  
pp. 311-345 ◽  
Author(s):  
Mary E. Barth ◽  
William H. Beaver ◽  
John R. M. Hand ◽  
Wayne R. Landsman
Keyword(s):  
Cash Flow ◽  
Model Parameters ◽  
Prediction Errors ◽  
Equity Values ◽  
Valuation Model ◽  
Equity Value ◽  
Out Of Sample ◽  
Other Information ◽  
Linear Information ◽  
Information Valuation

This study uses out-of-sample equity value estimates to determine whether earnings disaggregation, imposing linear information valuation model (LIM) structure and separate industry estimation of valuation model parameters aid in predicting contemporaneous equity values. We consider three levels of earnings disaggregation: aggregate earnings, cashflow and total accruals and cash flow and four major components of accruals. For pooled estimations, imposing the LIM structure results in significantly smaller prediction errors; for by-industry estimations, it does not. However, by-industry prediction errors are substantially smaller, suggesting that the by-industry estimations are better specified. Mean squared and absolute prediction errors are smallest when earnings are disaggregated into cash flow and major accrual components; median prediction errors are smallest when earnings are disaggregated into cash flow and total accruals. These findings suggest that (1) if concern is with errors in the tails of the equity value prediction error distribution, then earnings should be disaggregated into cash flow and the major accrual components; otherwise earnings should be disaggregated only into cash flow and total accruals; (2) imposing the LIM structure neither increases nor decreases prediction errors, which supports the efficacy of drawing inferences from valuation equations based on residual income models that do not impose the structure implied by the model; (3) valuation of abnormal earnings, accruals, accrual components, equity book value, and other information varies significantly across industries.

The Mutual Friend: Dual Holder Monitoring and Firm Investment Efficiency

2019 ◽  
Vol 9 (1) ◽  
pp. 81-115
Author(s):  
Miguel Antón ◽  
Luca X Lin
Keyword(s):  
Cash Flow ◽  
High Growth ◽  
Investment Efficiency ◽  
Firm Investment ◽  
Control Rights ◽  
Debt Overhang ◽  
Equity Value ◽  
Growth Firms ◽  
Editorial Decision ◽  
And Control

Abstract We investigate the influence of simultaneous equity holdings by creditors (dual holders) on investment efficiency. Such creditors have stronger incentives and power to monitor firm investment as they have cash flow and control rights from both debt and equity sides. We provide evidence that dual holders, particularly noncommercial bank dual holders, significantly mitigate overinvestment. For high growth firms and those subject to debt overhang, dual holders also alleviate underinvestment. Equity value increases at the presence of dual holders. Our results indicate that by improving firm investment efficiency, dual holders not only make creditor investments safer but also create value for shareholders. Received March 26, 2019; editorial decision September 17, 2019 by Editor Isil Erel.

scholarly journals Inventory Management in SMEs Operating in Polish Group Purchasing Organizations during the COVID-19 Pandemic

Risks ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 63
Author(s):  
Grzegorz Zimon ◽  
Vitalina Babenko ◽  
Beata Sadowska ◽  
Katarzyna Chudy-Laskowska ◽  
Blanka Gosik
Keyword(s):  
Inventory Management ◽  
Management Strategy ◽  
Management Strategies ◽  
Financial Security ◽  
Doing Business ◽  
The World ◽  
Conservative Policy ◽  
Group Purchasing Organizations ◽  
Supply Systems ◽  
Research Period

The COVID-19 virus has hit the economy around the world. In Poland, SMEs have the greatest problems with doing business. Border blockades and the quarantine for enterprises in virtually all industries throughout Poland greatly complicated the supply systems and the inventory management process. Up to now, SMEs have acted in group purchasing organizations to improve their competitive position. This form of activity also positively affects their financial security. Therefore, in this paper, the inventory management among this group of companies during the COVID-19 pandemic was analyzed. The purpose of the paper was to show how inventory management strategies changed during the COVID-19 pandemic in SMEs operating in industry GPOs. The analysis was carried out on a group of 88 Polish commercial enterprises operating in purchasing groups. The research period covered the years 2017–2019 and March–June 2020. The research showed a change in inventory management strategy in SMEs during the pandemic time of COVID-19. For the first four months, managers of enterprises tried to pursue a conservative policy and to accumulate stocks in the event of a shortage of supplies. This article also presents the form of security that was applied for SMEs operating in group purchasing organizations (GPOs) to avoid forced downtime caused by the COVID-19 pandemic.

scholarly journals To Iterate Or Not To Iterate? Using The WACC In Equity Valuation

2011 ◽  
Vol 9 (11) ◽  
pp. 29 ◽  
Author(s):  
Patrick J. Larkin
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Iterative Procedure ◽  
Capital Budgeting ◽  
Cash Flows ◽  
Debt Ratio ◽  
Discounted Cash Flow ◽  
Valuation Method ◽  
Equity Value ◽  
Current Value

The textbook discounted cash flow (DCF) valuation method involves estimating a target debt ratio for the firm, discounting firm cash flows at the WACC to estimate firm value, then subtracting the current value of debt to get equity value. This method gives the correct equity value in situations in which the firm will move toward the target debt ratio after the transaction is complete, such as takeovers and capital budgeting projects. The textbook method does not work well for estimating equity value in passive investments in which leverage is unlikely to change as a result of the potential transaction. Estimating equity value in passive investments when leverage is unlikely to change requires a simple iterative procedure to correct for circularity, which is demonstrated here. This situation sows confusion among students and practitioners. Finance scholars and textbook authors are aware of the situation but the author has never seen it clearly explained in prior textbooks or articles.

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