Academic literature on the topic 'Return on Net Financial Cash Flow'
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Journal articles on the topic "Return on Net Financial Cash Flow"
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Sitorus, Jessy Safitri, Ernika Siburian, Yosevin Simbolon, and Royto Enjelia br Naibaho. "THE EFFECT OF OPERATING CASH FLOW, NET PROFIT, ROA AND ROE ON STOCK RETURN OF IDX." Jurnal Akuntansi 11, no. 2 (June 30, 2021): 189–96. http://dx.doi.org/10.33369/j.akuntansi.11.2.189-196.
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This research was conducted to determine the effect of Operating Cash Flow, ROA Net Profit and ROE on the movement of Stock Return, data or information obtained through financial statements. And the method of data collection is done with Purposive Sampling there are 21 companies in a period of 3 years, therefore the total sample of this study should be 63 samples. But because the data of this study using outliers then the total sample became 41. Then analyzed using multiple linear regression using SPSS 20 software. From this research, the researchers obtained results, namely: Operating Cash Flow, Net Income, and ROA individually had no significant effect on Stock Return. ROE individually affects and is significant to the Return of Shares. Operating Cash Flow, Net Income, ROA and ROE are simultaneously concurrently and significantly impacted on Stock Return. Keywords: Operating Cash Flow, Net Income, Return on Assets, Return on Equity, Share Return.
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Marhaeni, Erlita Tyas Puspa. "PENGARUH EARNINGS PER SHARE, ECONOMIC VALUE ADDED, MARKET SHARE, DAN NET CASH FLOW TERHADAP RETURN SAHAM (STUDI KASUS PADA PERUSAHAAN MANUFAKTUR SUB SEKTOR KERAMIK PORSELIN DAN KACA YANG TERDAFTAR DI BEI 2011-2015)." INVENTORY: JURNAL AKUNTANSI 1, no. 1 (July 17, 2019): 12. http://dx.doi.org/10.25273/inventory.v1i1.4710.
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The purpose of this research is to determine whether there is the influence of earning per share, economic value added, market share, and net cash flow to return of both simultaneously and partial. The population in this study is a company manufacturing the ceramic, porcelain and glass are listed on the BEI in 2011-2015. The study used data from secondary in the form of financial statements the company.Testing this hypothesis using regression linear and through augmented with partial test, simultan test, and coefficient of determination. The result in partial to show that a market share and net cash flow, have a significant effect on return, while earning per share and economic value added don’t have a significant effect on return. In a simultaneous variable earning per share, economic value added , market share and net cash flow together have a significant effect on return. Manufacturing companies the industrial ceramics, porcelain and glass need to increase the company’s performance in achieving market share and net cash flow are higher because it will provide a significant impact on the return. Keyword: Earning Per Share, Economic Value Added, Market Share, Net Cash Flow, Return
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Stefanie, Stefanie, and Loh Wenny Setiawati. "PENGARUH NET PROFIT MARGIN, ARUS KAS OPERASI DAN REPUTASI AUDITOR TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR PERIODE 2014-2017." AJAR 2, no. 02 (September 10, 2019): 1–18. http://dx.doi.org/10.35129/ajar.v2i02.79.
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Investments are made by investors to get a return. Return is a profit of an investment. Stock Return has a significant effect in determining the value of company’s stock. Investors will be interested to invest in companies with a high return. This research aimed to analysis the effect of net profit margin, operating cash flow and auditor reputation for the period 2014 – 2016 to stock return for the period 2015 – 2017 on manufacturing companies that listed on Indonesia Stock Exchange. Net profit margin is calculated by using net income after tax divided by total net sales for the period from audited financial statements. This research used secondary data which is from financial reports with purposive sampling. Research sample counted 55 manufacturing companies listed in Indonesia Stock Exchange period 2014 – 2017.
The results of this research showed that net profit margin and auditor reputation do not have a significant effect on stock return while operating cash flow has a significant effect on stock return.
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Putri, Sefka Anggraini, Reni Oktavia, and Widya Rizki Eka Putri. "Pengaruh Kinerja Keuangan Terhadap Rate of Return (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar di BEI Tahun 2014-2018 )." Jurnal Akuntansi dan Keuangan 25, no. 2 (July 17, 2020): 101–17. http://dx.doi.org/10.23960/jak.v25i2.136.
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The purpose of this study was to examine the effect of financial performance on the rate of return. The indicators used to measure financial performance are return on investment, net profit margin, earnings per share, operating cash flow, economic value added. This study uses secondary data with a population of companies listed on the Indonesia Stock Exchange (BEI) 2014-2018. The method used to determine the sample using purposive sampling. Consists of 19 industrial mining companies with 56 samples. The analysis method used is multiple regression analysis. The results of hypothesis testing show that the Return on Investment (ROI) has no significant effect on the Rate of Return (ROR), Net Profit Margin (NPM) has significant effect on the Rate of Return (ROR), Earning Per Share (EPS) has no significant effect on the Rate of Return (ROR), Operating Cash Flow(OCF) has no significant effect on the Rate of Return (ROR), Economic Value Added (EVA) has no significant effect on the Rate of Return (ROR)
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Mole, R. H. "The Cost of Capital for Financial Evaluation of Plant and Machinery Capital Proposals." Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture 203, no. 1 (February 1989): 57–62. http://dx.doi.org/10.1243/pime_proc_1989_203_047_02.
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This paper makes the case for the close involvement of engineers in the financial appraisal of proposals for capital expenditure on plant and machinery. Post-tax assessments are now essential for the great majority of companies and this requires a coherent analytical framework which encompasses both the tax cash flows and the impact of tax upon the cost of capital in an inflationary environment. This paper deals with the impact of taxation upon the cost of capital, the discount rate and the yield (internal rate of return) which forms an essential component of modern methods of discounted cash flow financial appraisal. A companion paper considers tax cash flows and shows that the net present value discounted at the net cost of capital may be distorted in comparison to the pre-tax NPV discounted at the gross cost of capital.
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Meher, Kishor, and Henok Getaneh. "Impact of determinants of the financial distress on financial sustainability of Ethiopian commercial banks." Banks and Bank Systems 14, no. 3 (October 10, 2019): 187–201. http://dx.doi.org/10.21511/bbs.14(3).2019.16.
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The study aims to investigate the impact of determinants of financial distress on financial sustainability of Ethiopian commercial banks. The balanced panel data of 12 commercial banks of Ethiopia have been taken for the study from 2011 to 2017. The research deploys Ordinary Least Square (OLS) Regression Model. The indicators of financial distress are bank’s specific internals and macro-economic factors. The proxies of financial sustainability are Return on Assets, Return on Equity, Financial Stability Index and Bank Soundness. The findings reveal that the Absolute Liquidity Risk and Net Income Growth are found to be positive and significant and Solvency Risk negative and significant in relation to Return on Assets. Asset Quality is found to be positive and significant and Solvency Risk negative and significant with respect to Return on Equity. The Asset Quality and Net Income Risk are positive and significant and Solvency Risk is negative and significant with relation to the Financial Stability Index. Absolute Liquidity Risk and Liquidity Risk are positive and significant and Credit Risk negative and significant with Bank Soundness. Free Cash Flow and Net Income Growth are essential for enhancing Return on Assets and Bank Soundness, and managing equity within the prudential norms could bring forth short-term financial sustainability of commercial banks. By lowering provisioning of loan loss, Growth in Net Interest Income and managing Solvency Risk could ensure financial stability to the banks, which in turn leads to financial sustainability. The study reveals that financial sustainability of banks is insulated from the exposures of systematic risks originating from macroeconomic factors.
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Kulakov, Nikolay, and Anastasia Blaset Kastro. "Evaluation of Financial Instruments Possessing Non-Conventional Cash Flow." Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438 12, no. 2 (July 2, 2018): 7–17. http://dx.doi.org/10.17323/j.jcfr.2073-0438.12.2.2018.7-17.
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Investments are often justified and accepted based on the IRR as the main criterion of profitability. However, that criterion is hardly ever used to evaluate some financial instruments (e.g. short sales, options, futures and swaps). This is partially due to the fact that some instruments possess a cash flow describing a borrowing rather than an investment. Others have a non-conventional cash flow and, consequently, the IRR may be meaningless or impossible to determine. We describe a non-conventional cash flow of a financial instrument as a non-conventional project consisting of a sequence of single-period (simple) projects. Each simple project has only two cash flows with opposite signs therefore the IRR for the simple project is always determined. If there is a decomposition in which each simple project has the same IRR value, then that value is the IRR of the non-conventional project. If a decomposition of the non-conventional project into simple projects with the same IRR is impossible, the non-conventional project’s IRR does not exist. If a simple project is an investment then the IRR is a rate of return for an investor. If a simple project is a loan then the IRR is an interest rate for the borrower, but not for the investor. Therefore the NPV method estimates a non-conventional project for two different participants simultaneously that leads to problems with definition of IRR. In order the loan’s IRR would be a rate of return for the investor, but not an interest rate for the borrower, the sign of IRR should be replaced to opposite one. The paper discusses how to use the Generalized Net Present Value (GNPV) method to calculate a yield of the financial instrument with non-conventional cash flow. The function GNPV(r, p) depends on two rates: finance and reinvestment ones that determine a cost of funding and a rate of return, respectively. The equation GNPV (r, -r) = 0 is investigated in the paper. The solution of that equation is the Generalized Average Rate of Return (GARR). We suggest using the GARR as a new measure of a yield for evaluating financial instruments possessing a non-conventional cash flow and estimating a portfolio’s performance over period with contributions and withdrawals.
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Kulakov, Nikolay, and Anastasia Blaset Kastro. "Evaluation of Financial Instruments Possessing Non-Conventional Cash Flow." Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438 12, no. 2 (March 1, 2018): 131–41. http://dx.doi.org/10.17323/j.jcfr.2073-0438.12.2.2018.131-141.
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Investments are often justified and accepted based on the IRR as the main criterion of profitability. However, that criterion is hardly ever used to evaluate certain financial instruments (e.g. short sales, options, futures and swaps). This is partially due to the fact that some instruments possess a cash flow describing a borrowing rather than an investment. Other instruments have a non-conventional cash flow and, consequently, the IRR may be meaningless or impossible to determine. We may describe a non-conventional cash flow of a financial instrument as a non-conventional project consisting of a sequence of single-period (simple) projects. Each simple project has only two cash flows with opposite signs, therefore the IRR for the simple project is always determinable. If a functional decomposition is applied in which each simple project is shown to have the same IRR value, then that value is the IRR of the non-conventional project. However, where a decomposition of the non-conventional project into simple projects with the same IRR is impossible, the non-conventional project's IRR does not exist. If a simple project is an investment, then the IRR is a rate of return for an investor. If a simple project is a loan, then the IRR is an interest rate for the borrower, but not for the investor. Therefore, the NPV method is seen to estimate a non-conventional project for two different participants simultaneously, which leads to problems with the definition of the IRR. In order that the loan's IRR would be a rate of return for the investor, but not an interest rate for the borrower, the sign of the IRR should be replaced with the opposite one.
This paper discusses how to use the Generalized Net Present Value (GNPV) method to calculate a yield of a financial instrument with a non-conventional cash flow. The function GNPV(r, p) depends on two rates: a finance rate and a reinvestment rate, which determine a cost of funding and a rate of return, respectively. The equation GNPV (r, -r) = 0 is investigated in the paper. The solution of that equation is the Generalized Average Rate of Return (GARR).
We suggest using the GARR as a new measure of a yield for evaluating financial instruments possessing a non-conventional cash flow and estimating a portfolio's performance over time with contributions and withdrawals.
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SRIVASTAVA, VISHAL, SUNDER RAM KORIVI, and DIPASHA SHARMA. "Subprime Crisis – A Corporate Acquisition Opportunity?" Journal of Accounting, Business and Management (JABM) 28, no. 2 (November 7, 2021): 20. http://dx.doi.org/10.31966/jabminternational.v28i2.546.
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Corporate acquisition can be considered as one of the best processes of corporate restructuring. This study is focused to evaluate the post-acquisition operating performance of listed Indian companies (acquirers) which have made acquisitions during subprime crisis period i.e. from FY 2007-08 to FY 2009-10. Paired sample t-test has been used on four operating performance indicators i.e. Return on Equity(ROE), Return on Assets (ROA), Operating Profit margin (OPM) and Operating Cash flow to Net Sales ratio (OCF/Net Sales) to check whether operating performance of acquirers has significantly improved post-acquisition. This study has revealed that there is no significant improvement in firms’ operating performance based on financial parameters i.e. Return on Equity (ROE), Return on Assets (ROA) and Operating Profit Margin (OPM), post corporate acquisitions made during subprime crisis period. The study finds that there was negative impact based on these parameters. Though Operating Cash Flow to Net Sales ratio has improved significantly for the companies which have made acquisition in FY 2007-08 and FY 2008-09 but similar findings could not be achieved for FY 2009-10. This study will find its significance in present scenario wherein corporate acquisitions are seen as the fastest way to achieve growth. Corporate world may derive its growth strategy from this study.
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Yanuarti, Ika, and Helena Dewi. "Startup Bisnis Sebagai Alaternatif Investasi." ULTIMA Management 10, no. 2 (January 31, 2019): 81–96. http://dx.doi.org/10.31937/manajemen.v10i2.979.
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Abstract
The main purpose of the investment activity is to obtain profits for both the company and the investor. To generate profits for investors, the company requires initial capital to manage its operational to do business. In general, investors will make investment decisions based on the intrinsic value of the company or based on the growth of the company’s profitability from the previous period. To measure those reference, investors needs historical data of financial reports as a baseline to calculate and for comparison. The barriers for startup companies are the lack or unavailability of historical financial data due to the age of startups more likely in the early stages (less than or equal to one year).
This research uses the method of discounted cash flows based on the company's financial report. The rates of return to discount the cashflow are based on return from real assets, such as gold and property and stock price as financial asset.
The result shows that the company is good enough to be one of investment alternative since its net present value is positive for all rate of return and its payback period is relatively short.
Key words Discounted Cash flow, Intrinsic Value, Startup Company, Angel Investors
Dissertations / Theses on the topic "Return on Net Financial Cash Flow"
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Chaika, Tetiana, Nataliia Poberezhna, and Olga Panasenko. "Possibilities of using Ukrainian companies’ open financial statements in the profitability analyzing of cash flows." Thesis, Дике Поле, 2019. http://repository.kpi.kharkov.ua/handle/KhPI-Press/42712.
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Cash flow information is more transparent, easier to control, less affected by accounting policies, and more clearly shows whether a company generates real money. Therefore, it is obvious that when assessing the profitability, along with the other profitability ratios, it is also necessary to take into account return on cash flow ratios.
The Ukrainian companies’ financial statements contain information that allows to calculate a number of cash flow profitability metrics. There are various approaches to the design of cash flow profitability metrics: some of them interpret cash flow as a dynamic form of company’s monetary resources, and others – as a result of financial activity. Cash flow profitability metrics are less susceptible to distortion than traditional profitability metrics calculated by profit. Unfortunately, the statistical reports of the Ukraine State Statistics Service do not contain information about the cash flows of the Ukrainian business entities, so there is no possibility to compare the obtained values with industry average indicators. This makes it difficult to carry out comparative analytical work when using metrics of cash flow profitability.Інформація про рух грошових коштів більш прозора, легше піддається контролю, менше схильна до впливу облікової політики та чіткіше показує, чи генерує компанія реальні грошові кошти. Тому очевидно, що при оцінці прибутковості підприємства, поряд з іншими коефіцієнтами рентабельності, необхідно брати до уваги також і коефіцієнти рентабельності грошових потоків. Фінансова звітність українських підприємств містить інформацію, яка дозволяє розрахувати цілий ряд метрик рентабельності грошового потоку. Існують різні підходи до конструювання метрик рентабельності грошового потоку: одні з них трактують грошовий потік як динамічну форму грошових ресурсів підприємства, а інші – як результат фінансової діяльності. Метрики рентабельності грошового потоку менш схильні до спотворень, ніж традиційні метрики рентабельності, які розраховані за прибутком. На жаль, статистичні звіти Державної служби статистики України не містять інформації про грошові потоки українських суб'єктів господарської діяльності, тому відсутня можливість порівнювати отримані значення з середньогалузевими показниками. Це істотно ускладнює проведення порівняльної аналітичної роботи при використанні метрик рентабельності грошових потоків.
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Koblihová, Markéta. "Zhodnocení ekonomické efektivnosti investice a návrh financování." Master's thesis, Vysoké učení technické v Brně. Fakulta podnikatelská, 2015. http://www.nusl.cz/ntk/nusl-225282.
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The subject of this thesis is to evaluate the economic efficiency and financing of the investment project. The theoretical part of the thesis is focused on the basic theoretical knowledge in the field of investment decisions and the description of the main methods of assessing the effectiveness of investments. Another part explains the theoretical knowledge of financial and strategic analysis that affect investment decisions. The practical part of the work captures analysis of current state of the selected company. This analysis is the basis for drafting of the third part, which contains the proposals and recommendations of the investment project.
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Troanská, Eva. "Ekonomická efektivnost a finanční proveditelnost podnikatelského záměru." Master's thesis, Vysoké učení technické v Brně. Fakulta stavební, 2015. http://www.nusl.cz/ntk/nusl-227458.
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The work aims to determine the economic efficiency and financial feasibility of the business plan, the construction of residential housing complex using a sensitivity analysis to determine the risk that the economic efficiency of most influence. The theoretical part of this work are the basic areas relating to the evaluation of economic efficiency, cash flow, sensitivity analysis and development project. The practical part deals with a specific project CAMPUS REZIDENČNÍ AREÁL II. Showing cash flows on the project and determining the various indicators of economic efficiency. The study also prepared a sensitivity analysis for the project scenario and determine the maximum risk that may threaten the economic efficiency of the project.
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Hub, Michal. "Ekonomická efektivnost a finanční proveditelnost podnikatelského záměru." Master's thesis, Vysoké učení technické v Brně. Fakulta stavební, 2016. http://www.nusl.cz/ntk/nusl-240075.
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The thesis deals with an investment project of reconstruction and operation of bakery Anežka in Palačov. The objective of the project is to evaluate the economic efficiency of the business plan. The thesis focuses on all costs and revenues which flow from the project throughout its working life, and on cash flow in individual years. At the end of the thesis, sensitivity analysis and risk assessment have been assessed, and several variations of the course of the projects, which can occur with regard to the likelihood of risk, have been created. The effects of these risks are compared by using the index indicators of profitability and net present value in the last chapter.
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Bílková, Alice. "Posouzení ekonomické efektivnosti investičního projektu." Master's thesis, Vysoké učení technické v Brně. Fakulta stavební, 2016. http://www.nusl.cz/ntk/nusl-240007.
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The subject of this thesis is to assess the economic efficiency of the investment project. The theoretical part focuses on the basic definitions related to investment decisions on the investment project and the project life cycle, cash flows and their predictions and recommendations to set them correctly, methods useful for assessing the effectiveness of the investment project and the indicators presenting the financial stability and feasibility of the project as well as factors affecting the overall investment decision, and finally the possibility of financing of the investment projects in the private sector. In the practical part there are the theoretical findings applied in the real investment project. Specifically, there will be analyzed the characterized investment project and its possible alternatives and finally made the assessment of economic efficiency.
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Beisler, Matthias Werner. "Modelling of input data uncertainty based on random set theory for evaluation of the financial feasibility for hydropower projects." Doctoral thesis, Technische Universitaet Bergakademie Freiberg Universitaetsbibliothek "Georgius Agricola", 2011. http://nbn-resolving.de/urn:nbn:de:bsz:105-qucosa-71564.
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The design of hydropower projects requires a comprehensive planning process in order to achieve the objective to maximise exploitation of the existing hydropower potential as well as future revenues of the plant. For this purpose and to satisfy approval requirements for a complex hydropower development, it is imperative at planning stage, that the conceptual development contemplates a wide range of influencing design factors and ensures appropriate consideration of all related aspects. Since the majority of technical and economical parameters that are required for detailed and final design cannot be precisely determined at early planning stages, crucial design parameters such as design discharge and hydraulic head have to be examined through an extensive optimisation process. One disadvantage inherent to commonly used deterministic analysis is the lack of objectivity for the selection of input parameters. Moreover, it cannot be ensured that the entire existing parameter ranges and all possible parameter combinations are covered. Probabilistic methods utilise discrete probability distributions or parameter input ranges to cover the entire range of uncertainties resulting from an information deficit during the planning phase and integrate them into the optimisation by means of an alternative calculation method. The investigated method assists with the mathematical assessment and integration of uncertainties into the rational economic appraisal of complex infrastructure projects. The assessment includes an exemplary verification to what extent the Random Set Theory can be utilised for the determination of input parameters that are relevant for the optimisation of hydropower projects and evaluates possible improvements with respect to accuracy and suitability of the calculated resultsDie Auslegung von Wasserkraftanlagen stellt einen komplexen Planungsablauf dar, mit dem Ziel das vorhandene Wasserkraftpotential möglichst vollständig zu nutzen und künftige, wirtschaftliche Erträge der Kraftanlage zu maximieren. Um dies zu erreichen und gleichzeitig die Genehmigungsfähigkeit eines komplexen Wasserkraftprojektes zu gewährleisten, besteht hierbei die zwingende Notwendigkeit eine Vielzahl für die Konzepterstellung relevanter Einflussfaktoren zu erfassen und in der Projektplanungsphase hinreichend zu berücksichtigen. In frühen Planungsstadien kann ein Großteil der für die Detailplanung entscheidenden, technischen und wirtschaftlichen Parameter meist nicht exakt bestimmt werden, wodurch maßgebende Designparameter der Wasserkraftanlage, wie Durchfluss und Fallhöhe, einen umfangreichen Optimierungsprozess durchlaufen müssen. Ein Nachteil gebräuchlicher, deterministischer Berechnungsansätze besteht in der zumeist unzureichenden Objektivität bei der Bestimmung der Eingangsparameter, sowie der Tatsache, dass die Erfassung der Parameter in ihrer gesamten Streubreite und sämtlichen, maßgeblichen Parameterkombinationen nicht sichergestellt werden kann. Probabilistische Verfahren verwenden Eingangsparameter in ihrer statistischen Verteilung bzw. in Form von Bandbreiten, mit dem Ziel, Unsicherheiten, die sich aus dem in der Planungsphase unausweichlichen Informationsdefizit ergeben, durch Anwendung einer alternativen Berechnungsmethode mathematisch zu erfassen und in die Berechnung einzubeziehen. Die untersuchte Vorgehensweise trägt dazu bei, aus einem Informationsdefizit resultierende Unschärfen bei der wirtschaftlichen Beurteilung komplexer Infrastrukturprojekte objektiv bzw. mathematisch zu erfassen und in den Planungsprozess einzubeziehen. Es erfolgt eine Beurteilung und beispielhafte Überprüfung, inwiefern die Random Set Methode bei Bestimmung der für den Optimierungsprozess von Wasserkraftanlagen relevanten Eingangsgrößen Anwendung finden kann und in wieweit sich hieraus Verbesserungen hinsichtlich Genauigkeit und Aussagekraft der Berechnungsergebnisse ergeben
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Hiasat, Shuja'a Ahmad Abdelfattah. "Stock price and cost of debt reaction to changes in cash flow from operations." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/20218.
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Mestrado em FinançasInvestigamos como o fluxo de caixa das operações afeta o retorno do preço das ações e o custo da dívida e comparamos o efeito relativo do fluxo de caixa versus o lucro líquido nos dois custos de financiamento. Este documento também compara a liquidez entre os índices STOXX Europe 600 e Amman 100 (ASE100), usando quatro medidas: Fluxo de Caixa das Operações, Retorno Ajustado ao Mercado, Retorno Anormal Cumulativo e o Custo da Dívida e seu impacto relativo na associação de fluxo de caixa com custo de capital. Os dados trimestrais utilizados para esta pesquisa são de empresas de capital aberto da Jordânia e de países europeus, de 2009 a 2018. Este estudo contribui para a literatura, pois fornece evidências sobre a associação relativa de ganhos e fluxos de caixa com o custo da dívida e retorno das ações. Também somos os primeiros a considerar qualquer efeito de liquidez de mercado nessa associação. Os resultados mostram um efeito positivo do fluxo de caixa das operações no retorno do preço das ações. Também mostra uma associação negativa e uma influência mais significativa do fluxo de caixa das operações do que o lucro líquido no custo da dívida, reduzindo-o. Além disso, o documento também mostra que o fluxo de caixa das operações tende a influenciar o retorno anormal acumulado e o custo da dívida de uma maneira melhor na Jordânia (um mercado menos líquido) do que no mercado europeu mais desenvolvido.
We investigate how the Cash Flow from Operations affects both the Stock Price Return and the Cost of Debt and compare the relative effect of Cash Flow versus Net Income on both costs of financing. This paper also compares the liquidity between STOXX Europe 600 and Amman stock exchange 100 (ASE100) indexes using four measures, Cash Flow from Operations, Market Adjusted Return, Cumulative Abnormal Return, and the Cost of Debt and its relative impact on Cash flow association with cost of capital. The quarterly data used for this research comes from publicly listed firms from Jordan and European countries, from 2009 through 2018. This study contributes to literature since it provides evidence on the relative association of Earnings and cash flows with cost of debt and stock returns. We are also the first to consider any market liquidity effect on this association. The results show a positive effect of Cash Flow from Operations on Stock Price Returns. It also shows a negative association and a more significant influence from Cash Flow from Operations than Net Income on the Cost of Debt, by reducing it. Furthermore, the paper also shows Cash Flow from Operations tend to influence the Cumulative Abnormal Return and the Cost of Debt in a better way in Jordan (a less liquid market) than in the more developed European market.
info:eu-repo/semantics/publishedVersion
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Čoupek, Lukáš. "Hodnocení finanční situace podniku a návrhy na její zlepšení." Master's thesis, Vysoké učení technické v Brně. Fakulta podnikatelská, 2010. http://www.nusl.cz/ntk/nusl-222455.
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Tato diplomová práce se zabývá hodnocením finanční situace vybraného podniku formou finanční analýzy. Cílem diplomové práce je navrhnout možná opatření, která povedou ke zlepšení finanční situace v následujícím období.
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Kudličková, Barbora. "Ocenění podniku." Master's thesis, Vysoké učení technické v Brně. Ústav soudního inženýrství, 2012. http://www.nusl.cz/ntk/nusl-232687.
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This theisis deals with the valuation of a selected company. The main instrument used for achieving the valuation is the income method of valuation. In the first part of the thesis is defined theoretical background that are needed for developing the practical part. The practial part of the thesis contains the characteristics of the selected company. For the purposes of valuation was performed strategic snalysis and were analyzed key financial indicators of valuated company. The part of the work is allso predicting the value of individual generators, financial plan and the achal valuation based on dicounted cash-flow and prfit method based on the capitalized net income. The aim is to determine the value of the company to selected date of valuation.
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Кальченко, Н. М. "Управління грошовими потоками на підприємстві." Master's thesis, Сумський державний університет, 2019. http://essuir.sumdu.edu.ua/handle/123456789/76179.
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В сучасних умовах господарювання більшість підприємств відчувають брак фінансових ресурсів. Актуальним постає питання самофінансування. Управління грошовими потоками є одним з найважливіших аспектів фінансового менеджменту, оскільки грошові кошти є найбільш ліквідними активами підприємства, здатними легко трансформуватися в будь-який інший вид активів. В Україні в умовах інфляції, нестабільної політичної ситуації, постійних змін в законодавстві і кризи неплатежів управління грошовими потоками є найбільш актуальним завданням в управлінні фінансами. Підвищення ефективності фінансового управління є основним фактором добробуту компанії. Ефективне функціонування підприємств у значній мірі обумовлене станом його грошових потоків, оскільки саме вони визначають платоспроможність підприємств та ліквідність балансу. Підприємство, що за результатами звітного періоду отримало прибуток може виявитися неплатоспроможним через нестачу грошових коштів та потенційних джерел швидкого самофінансування. У такому випадку керівництво підприємства ризикує втратити можливість самостійно приймати рішення і відтепер його долю починають вирішувати зовнішні структури, наприклад, кредитор, з яким не розрахувалось підприємство, або банк, позика якого лишилася неповернутою. А тому в умовах ринкової економіки все більшого значення набуває підвищення ефективності управління грошовими потоками підприємств як запорука не тільки виживання, але і їх стабільного функціонування. Необхідність подальшого дослідження та поглиблення теоретичних, методичних і прикладних аспектів організаційно-методичного забезпечення аналізу ефективності грошових потоків визначає актуальність дослідження. Метою написання кваліфікаційної роботи є удосконалення теоретичних та практичних основ управління грошовими потоками виробничого підприємства. Об’єктом дослідження є економічні відносини, що виникають на підприємстві в процесі управління його грошовими потоками. Предметом дослідження виступає механізм управління грошовими потоками на прикладі корпорації Roshen. Теоретичну основу дослідження становить сукупність загальнонаукових методів та ряд спеціальних методів економічних досліджень: історичний метод, метод порівняння (у теоретичній частині – перший розділ роботи), метод дослідження, методи аналізу (у другому розділі роботи при оцінці та аналізі ефективності грошових потоків підприємства). Інформаційну базу дослідження становлять наукова література, періодичні видання, нормативні акти та закони, дані про результати фінансовогосподарської діяльності корпорації Roshen. Практичне значення одержаних результатів полягає у тому, що вони можуть бути використані для побудови більш досконалої системи управління грошовими потоками на підприємствах України.В современных условиях хозяйствования большинство предприятий испытывают недостаток финансовых ресурсов. Актуальным становится вопрос самофинансирования. Управление денежными потоками является одним из важнейших аспектов финансового менеджмента, поскольку денежные средства являются наиболее ликвидными активами предприятия, способными легко трансформироваться в любой другой вид активов. В Украине в условиях инфляции, нестабильной политической ситуации, постоянных изменений в законодательстве и кризиса неплатежей управление денежными потоками является наиболее актуальной задачей в управлении финансами. Повышение эффективности финансового управления является основным фактором благосостояния компании. Эффективное функционирование предприятий в значительной степени обусловлено состоянием его денежных потоков, поскольку именно они определяют платежеспособность предприятий и ликвидность баланса. Предприятие, по результатам отчетного периода получило прибыль может оказаться неплатежеспособным из-за недостатка денежных средств и потенциальных источников быстрого самофинансирования. В таком случае руководство предприятия рискует потерять возможность самостоятельно принимать решения и отныне его судьбу начинают решать внешние структуры, например, кредитор, с которым не рассчиталось предприятие, или банк, заем которого осталась невозвращенной. Поэтому в условиях рыночной экономики все большее значение приобретает повышение эффективности управления денежными потоками предприятий как залог не только выживания, но и их стабильного функционирования. Необходимость дальнейшего исследования и углубления теоретических, методических и прикладных аспектов организационно-методического обеспечения анализа эффективности денежных потоков определяет актуальность исследования. Целью написания квалификационной работы является совершенствование теоретических и практических основ управления денежными потоками производственного предприятия. Объектом исследования являются экономические отношения, возникающие на предприятии в процессе управления его денежными потоками. Предметом исследования выступает механизм управления денежными потоками на примере корпорации Roshen. Теоретическую основу исследования составляет совокупность общенаучных методов и ряд специальных методов экономических исследований: исторический метод, метод сравнения (в теоретической части - первый раздел работы), метод исследования, методы анализа (во втором разделе работы при оценке и анализе эффективности денежных потоков предприятия). Информационную базу исследования составляют научная литература, периодические издания, нормативные акты и законы, данные о результатах финансово-хозяйственной деятельности корпорации Roshen. Практическое значение полученных результатов заключается в том, что они могут быть использованы для построения более совершенной системы управления денежными потоками на предприятиях Украины.
In today's economic environment, most businesses experience a lack of financial resources. The question of self-financing is urgent. Cash flow management is one of the most important aspects of financial management, as cash is the most liquid asset of an entity that can easily be transformed into any other type of assets. In Ukraine, in the context of inflation, unstable political situation, constant changes in legislation and the crisis of non-payment, cash flow management is the most urgent task in financial management. Improving the effectiveness of financial management is a major factor in the well-being of the company. The effective functioning of enterprises is largely conditioned by the state of its cash flows, since they determine the solvency of the enterprises and the liquidity of the balance sheet. An enterprise that, as a result of the reporting period, has made a profit may be insolvent due to lack of cash and potential sources of rapid self-financing. In this case, the management of the company risks losing the ability to make their own decisions and from now on, its fate begins to decide on external structures, for example, a lender, with whom the company did not pay off, or a bank whose loan remained outstanding. Therefore, in a market economy, it is becoming increasingly important to improve the efficiency of cash flow management of enterprises as a guarantee not only of survival but also of their stable functioning. The need for further research and deepening of theoretical, methodological and applied aspects of organizational and methodological support for the analysis of cash flow efficiency determines the relevance of the study. The purpose of writing a qualification paper is to improve the theoretical and practical foundations of managing the cash flows of a manufacturing enterprise. The object of study is the economic relations that arise in the enterprise in the process of managing its cash flows. The subject of the study is the mechanism of cash flow management on the example of Roshen Corporation. The theoretical basis of the study is a set of general scientific methods and a number of special methods of economic research: historical method, method of comparison (in the theoretical part - the first section of work), research method, methods of analysis (in the second section of work in the evaluation and analysis of the efficiency of cash flows of the enterprise). The research database is composed of scientific literature, periodicals, regulations and laws, data on the financial performance of Roshen Corporation. The practical significance of the results is that they can be used to build a more sophisticated cash flow management system at Ukrainian enterprises.
Books on the topic "Return on Net Financial Cash Flow"
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Thomsett, Michael C. Real Estate Investor's Pocket Calculator: Simple Ways to Compute Cash Flow, Value, Return, and Other Key Financial Measurements. AMACOM, 2017.
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Thomsett, Michael. The Real Estate Investor's Pocket Calculator: Simple Ways to Compute Cash Flow, Value, Return, and Other Key Financial Measurements. AMACOM, 2017.
Find full textBook chapters on the topic "Return on Net Financial Cash Flow"
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Harvey, Adam. "19. Introduction; The Time Value of Money; The Annuity Equation; Unit Energy Cost and Net Income; Net Present Value: NPV (r%); Internal Rate of Return (IRR); Simple and Discounted Payback Periods; Bank Loans and Interest; Cash Flow Analysis." In Micro-Hydro Design Manual, 305–20. Rugby, Warwickshire, United Kingdom: Practical Action Publishing, 1993. http://dx.doi.org/10.3362/9781780445472.019.
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Sementsov, Ruslan, and Borys Samorodov. "BANK FINANCIAL CONDITION DIAGNOSTICS: THE BANK'S NET CASH FLOW ASSESSMENT." In Theoretical and practical aspects of the development of modern science: the experience of countries of Europe and prospects for Ukraine. Publishing House “Baltija Publishing”, 2018. http://dx.doi.org/10.30525/978-9934-571-30-5_23.
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Gresham, Mary. "Financial Planning for the Private Practitioner." In Handbook of Private Practice, 206–21. Oxford University Press, 2017. http://dx.doi.org/10.1093/med:psych/9780190272166.003.0018.
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Financial planning is an essential but often neglected activity for private practitioners. Research indicates that mental health practitioners can be “money avoidant” when it comes to personal finance. This chapter describes a four-level model useful in money management. Essential topics and rules of thumb for a basic financial plan are covered as follows: personal cash flow, net worth, debt management, insurance, investing, taxes, retirement, and estate planning. Useful references and resources are listed at the end of the chapter.
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Gilligan, John, and Mike Wright. "Measuring Private Equity Performance." In Private Equity Demystified, 107–34. Oxford University Press, 2020. http://dx.doi.org/10.1093/oso/9780198866961.003.0003.
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This chapter explains how to measure private equity performance. One of the key distinctions to be focused on is the gross versus net performance of a fund or investor. Gross returns are the returns earned by the private equity fund before fees are paid to the manager. Meanwhile, net returns are the returns earned by the investors in the fund after the fees of the manager have been deducted. Various measures are applied to monitor and adjust for the timing differences between total return and receipt of cash flows. DPI measures distribution as a percentage of paid-in capital, while TVPI measures total value as a percentage of paid-in capital. However, the most commonly used measure is the Internal Rate of Return (IRR). IRR is a cash flow measure that allows for the timing of cash flows. The chapter then highlights the importance of understanding both the overall industry returns and their variance and volatility over time. The variation in returns between the most successful and least successful fund managers is a key statistic to understand the performance and risks of the industry.
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"Financial Analyses." In Agricultural Finance and Opportunities for Investment and Expansion, 116–36. IGI Global, 2018. http://dx.doi.org/10.4018/978-1-5225-3059-6.ch007.
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Financial analyses provide an account of an enterprise's past performance, a picture of its current financial strength/weakness, and a glimpse into the future financial potential. The owner of a farm firm periodically assesses and analyses the performance of the enterprise against predetermined objectives. The analysis is undertaken with the use of some tools. Because the discerning farmer needs to keep objectives of the enterprise in constant view, this chapter focuses on financial analyses with a view to highlighting the tools used in assessing a farm firm performance against predetermined objectives. The discussions are based on a review of relevant literature. The objectives of this chapter include defining the concept of financial analyses, describing the tools for analyses and showing worked examples of financial analysis, and highlighting the concept of rate of return. Financial analyses can be undertaken by management of an enterprise or by parties outside the enterprise. The three commonly used tools of financial analyses, namely the balance sheet, the income statement, and the cash flow statement, tend to be associated with some flaws, especially with regard to the reliability and validity of the accompanying figures. As a result, results from financial analyses should be interpreted with caution. It is further recommended that financial analyses be matched with a more observable measure of the financial health of a farm enterprise in terms of physical growth and expansion, credit worthiness, and how the enterprise meets its maturing obligations.
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Batrancea, Larissa. "Stock Market Price and Company Performance Between Two Major Downturns." In Advances in Human Resources Management and Organizational Development, 270–90. IGI Global, 2021. http://dx.doi.org/10.4018/978-1-7998-7164-4.ch016.
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The chapter investigates the degree to which stock market prices were influenced by company financial performance during the period March 2007–September 2020, which included both the beginning of the global financial crisis and the ongoing COVID-19 pandemic crisis. Using quarterly financial data retrieved from the first 34 companies listed on the New York Stock Exchange according to their transaction volumes, empirical results show that, in the period between the two crises, stock market metrics including price to earnings, price to sales, price to book value, and price to free cash flow were shaped by financial performance indicators such as gross margin ratio, operating margin ratio, earnings before interest, taxes, depreciation and amortization margin, pretax margin, and net profit margin.
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Odia, J. O. "The Determinants and Financial Statement Effects of IFRS Adoption in Nigeria." In Advances in Finance, Accounting, and Economics, 319–41. IGI Global, 2016. http://dx.doi.org/10.4018/978-1-4666-9876-5.ch016.
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The chapter examines the determinants and financial statement effect s of IFRS adoption in Nigeria. It also investigate into the impact of effect of the adoption of IFRS on accounting figures and ratios in the financial statements of 50 companies quoted in the Nigerian Stock Exchange. The determinants considered include firm's characteristics (firm size, operating cash flow, leverage, turnover, growth in turnover, profitability, liquidity and earnings quality) and corporate governance variables (board size, board independence and audit type). The data were obtained from the annual reports of companies listed in the Nigerian Stock Exchange between 2011 and 2013 and was analyzed using the ordinary least square (OLS) and logistic regression which were used to test for determinants of IFRS adoption while the independent t-test was used to examine the financial statement effects. With regard to the determinants, the empirical result indicates only profitability and earnings quality have significant but negative association with IFRS adoption. Moreover, IFRS adoption has significant effect on the return on equity.
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Syeda, Rafathunnisa. "Impact of Working Capital Management on Profitability: A Case Study of Trading Companies." In Accounting and Finance Innovations. IntechOpen, 2021. http://dx.doi.org/10.5772/intechopen.99912.
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The success of any business depends on its profitability, liquidity, and solvency. Liquidity plays an important role in the successful running of a business. Many prior studies have been conducted to measure the relationship between working capital and profitability. The results showed that the high investment in inventories and receivables is associated with lower financial performance. They found a negative relationship between Return on Assets and Inventory turnover and Cash conversion cycle the present study is designed to know the direct impact of working capital on profitability by choosing the days of collection, days of payment, days inventory converts to sales and finally the cash conversion cycle. This study examines the association between the profitability and working capital using the data of 15 US trading companies for the period of 2015 to 2019. The key points in this study are firstly there exists a negative relationship between the profitability and the average collection period, the lower the average collection period higher will be the profitability, indicating that a decrease in the number of days a firm receives payment from sales affects the profitability of the firm positively. Secondly there is a highly significant positive relationship between average payment period and profitability. This implies that the longer a firm makes the payment to its creditors, the more profitable it is. Thirdly the cash conversion cycle decreases it will lead to an increase in profitability of the firm, and managers can create a positive value for the shareholders which indicates that it has been maintained. The regression analysis showed the value for the R-squared in the model is 0.584, i.e., 58.4% of the variation in the dependent variable Net Profitability is explained by the independent variables.
Conference papers on the topic "Return on Net Financial Cash Flow"
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La¨uferts, Ulrike, Charlotte Halbe, and Aliki van Heek. "Value-Creating Investment Strategies to Manage Risk From Structural Market Uncertainties: Switching and Compound Options in (V)HTR Technologies." In Fourth International Topical Meeting on High Temperature Reactor Technology. ASMEDC, 2008. http://dx.doi.org/10.1115/htr2008-58157.
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To measure the value of a technology investment under uncertainty with standard techniques like net present value (NPV) or return on investment (ROI) will often uncover the difficulty to present convincing business case. Projected cash flows are inefficient or the discount rate chosen to compensate for the risk is so high, that it is disagreeable to the investor’s requirements. Decision making and feasibility studies have to look beyond traditional analysis to reveal the strategic value of a technology investment. Here, a Real Option Analysis (ROA) offers a powerful alternative to standard discounted cash-flow (DCF) methodology by risk-adjusting the cash flow along the decision path rather than risk adjusting the discount rate. Within the GEN IV initiative attention is brought not only towards better sustainability, but also to broader industrial application and improved financing. Especially the HTR design is full of strategic optionalities: The high temperature output facilitates penetration into other non-electricity energy markets like industrial process heat applications and the hydrogen market. The flexibility to switch output in markets with multi-source uncertainties reduces downside risk and creates an additional value of over 50% with regard to the Net Present Value without flexibility. The supplement value of deploying a modular (V)HTR design adds over 100% to the project value using real option evaluation tools. Focus of this paper was to quantify the strategic value that comes along a) with the modular design; a design that offers managerial flexibility adapting a step-by-step investment strategy to the actual market demand and b) with the option to switch between two modes of operation, namely electricity and hydrogen production. We will demonstrate that the effect of uncertain electricity prices can be dampened down with a modular HTR design. By using a real option approach, we view the project as a series of compound options — each option depending on the exercise of those that preceded it. At each end of the design phase, the viability will be reviewed conditional on the operating spread at each time step. We quantify the value of being able to wait with the investment into a next block until market conditions are favourable and to be able to abandon one block if market conditions are disapproving. To derive the intrinsic value of this multi block HTR design, it will be compared with a reference investment of a full commitment light water reactor without any managerial flexibility. In another case, we raise the question to what extent product output diversification is a suitable strategy to cope with long term market uncertainty in electricity price. What is the value of a multi-potent technology that is able to produce output for energy markets others than the electricity market? To investigate this, we concentrate on The Netherlands, a country with an intense industrial demand in electricity and hydrogen.
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Thompson, Robert S., and John D. Wright. "Coupling Financial Profit Indicators to a Net Cash Flow Model for Production Sharing Contracts." In SPE Annual Technical Conference and Exhibition. Society of Petroleum Engineers, 1998. http://dx.doi.org/10.2118/49179-ms.
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King, Carey W., Jay Zarnikau, and Phil Henshaw. "Defining a Standard Measure for Whole System EROI Combining Economic “Top-Down” and LCA “Bottom-Up” Accounting." In ASME 2010 4th International Conference on Energy Sustainability. ASMEDC, 2010. http://dx.doi.org/10.1115/es2010-90414.
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Business investments rely on creating a whole system of different parts, technologies, field and business operations, management, land, financing and commerce using a network of other services. Using the example of a wind farm development, a typical life cycle assessment (LCA) focuses upon the primary technology inputs and their countable embodied direct impacts. What LCA omits are the direct and indirect impacts of the rest of the business system that operates the primary technology, the labor, commerce and other technology employed. A total environmental assessment (TEA) would include the physical costs to the environment of the labor, commerce and other technology too. Here a simplified “system energy assessment” (SEA) is used to combine a “top-down” method of measuring implied indirect business impacts using econometric methods, with a “bottom-up” method of adding up the identifiable direct impact parts. The top-down technique gives an inclusive but rough measure. The bottom-up technique gives a precise accounting for the directly identifiable individual parts that is highly incomplete. SEA allows these two kinds of measures to be combined for a significantly improved understanding of the whole business system and its impacts, combining the high and low precision measures indentified by each method. The key is exhaustively accounting for energy uses within the natural boundary of a whole business system as a way of calibrating the measure. That allows defining a standardized measure of complex distributed system energy flows and their energy returns on invested energy resources (EROI). The method is demonstrated for a generic business operation. Starting from the easily accountable inputs and outputs, SEA successively uses larger natural system boundaries to discover a way of finding the limiting value of EROI after all parts of the whole are included. Some business choices and a net present value model of cash flow for the 20 year project help illustrate the related financial issues. The business model used shows that the EROI of a generic “Texas Wind Farm” is 31 when accounting for direct and indirect fuels only, but decreases to 4–6 after accounting for the economic energy consumed by all necessary business units and services.
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Zhitlukhin, O. G., and AE Jafarova. "Equity Capital Maintenance as the Cash Flow Net Assets of an Organisation for a More Accurate Assessment of Its Financial Sustainability." In International Scientific Conference "Far East Con" (ISCFEC 2020). Paris, France: Atlantis Press, 2020. http://dx.doi.org/10.2991/aebmr.k.200312.349.
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Townsend, Aaron K., and Michael E. Webber. "Energetic and Economic Performance of a Compressed Air Energy Storage Facility in Texas as a Function of Technical and Cost Parameters." In ASME 2011 International Mechanical Engineering Congress and Exposition. ASMEDC, 2011. http://dx.doi.org/10.1115/imece2011-63830.
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In this research an optimization model was used to determine the sensitivity of the revenue, net cash flow (defined as revenue less amortized capital costs, fixed and variable operating costs, and return on investment), and operational characteristics of a compressed air energy storage (CAES) facility to certain technical factors in the Electric Reliability Council of Texas (ERCOT) zonal market. The technical factors considered were compressor capacity and storage capacity relative to turbine capacity, non-spinning reserve market participation, minimum allowable runtime of the compressor and turbine systems, and costs associated with startup of the compressor and turbine systems. Additionally, the work showed that the nine-year optimization problem could be decomposed into nine single-year optimization problems with decreased computation time and minimal divergence from the nine-year solution. Previous work had determined the optimal compressor and storage capacities for a given expander capacity; the current work expanded on the previous work to show that the economics of CAES are reasonably insensitive (defined as within 5% of the maximum net cash flow) to compressor capacity within a range of 0.45 to 0.8 MW per MW of turbine capacity in the West zone of ERCOT and 0.25 to 0.5 MW per MW of turbine capacity in the non-West zones in ERCOT. Similarly, the economics of CAES are reasonably insensitive to storage capacity within a range of 20 to 60 MWh per MW of turbine capacity in the West zone of ERCOT and 12 to 35 MWh per MW of turbine capacity in the non-West zones. Previous work had determined that participation of the turbine-generator system in the non-spinning reserve market increased the revenues and net cash flow and reduced the amount of electricity bought and sold in the balancing energy market. This work confirmed the previous finding and also determined that the participation of the motor-compressor as dispatchable load in the non-spinning reserve market increased the revenues and net cash flow and increased the amount of electricity bought and sold. The increase in electricity sales due to the motor-compressor participation in the non-spinning reserve market only partially offset the decrease in the amount of electricity sold due to the turbine-generator participation. The net effect of both systems participating in the non-spinning reserve market was an increase in revenue of 29% to 37% and net cash flow of 130% to 250% and a decrease in the amount of electricity bought and sold by about 10%. This work also found that a CAES facility is sensitive to minimum runtime constraints and startup costs. Minimum runtime constraints reduce the net cash flow by 11% to 13% and increase the amount of electricity bought and sold by 1% to 3%, for a minimum runtime of 4 hours. The effect of startup costs is to reduce both the net cash flow by 5% to 6% and the amount of electricity bought and sold by 4% to 5% for startup costs of $2/MW-start.
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Heredia-Zavoni, Ernesto, and Sandra Santa-Cruz. "Maintenance Decisions for Offshore Structures Using Real Options Theory." In ASME 2004 23rd International Conference on Offshore Mechanics and Arctic Engineering. ASMEDC, 2004. http://dx.doi.org/10.1115/omae2004-51467.
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Real Options methods are currently used to assess investment projects considering: (1) the decision options that one can have along the development of the project, such as to expand it, or reduce it, or to abandon it, or to differ it, and (2) the uncertainty in some financial variables for the assessment of the economic investment. In these two regards, Real Options methods are superior to the traditional Net Present Value method. The purpose of the present paper is to establish the basis for Real Options modeling for decision making on design, inspection, maintenance, and decommissioning of offshore structures. The use of Real Options theory is sought in order to account for: (1) uncertainties in the financial variables involved in risk assessment based on expected costs, such as the economic consequences due to failure of a system; and (2) uncertainties associated with the resistance and loading of the structure for reliability assessment. An application of Real Options Theory is given in the paper for decision making on maintenance for an offshore structure. Cash flow from oil revenue is modeled as a stochastic process. Preventive and corrective maintenance is analyzed as a critical situation where the decision maker has the option to pay the costs of maintenance in order to obtain a benefit. Expressions are derived for the estimation of the value of the maintenance option; they are based on the derivation of the Black-Scholes equation for the evaluation of financial options. It is shown that the value of such project is equal to the sum of the net cash flow of the project (as with a Net Present Value evaluation) plus the value of the maintenance option. Projects with one and two decision times along the life of the structure are formulated and analyzed. Closed form solutions are obtained for such cases. An example is given in order to illustrate the differences between maintenance decisions using the Net Present Value and the Real Options method.
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Queiroz, Cesar A., and Goran Mladenović. "Combining capital grant and availability payment to keep toll rates affordable." In 6th International Conference on Road and Rail Infrastructure. University of Zagreb Faculty of Civil Engineering, 2021. http://dx.doi.org/10.5592/co/cetra.2020.1278.
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In several countries public budgets cannot provide all the funds needed to build priority transport and other infrastructure projects that are economically justified and environmentally and socially sound. Under certain circumstances, projects meeting such conditions can be implemented by involving private financing, through public-private partnerships (PPP), which is a means to get projects completed by leveraging scarce public resources. Priority highway PPP projects may require toll rates above the affordability level of road users, particularly when construction costs are relatively high and traffic volumes are relatively low. The provision of capital grants and/or availability payments to the concessionaire (i.e., the private partner) by the government (i.e., the public partner) would reduce the toll rate required to attract private investors for the project. Such projects, where the sources of revenue to the private partner (or concessionaire) include both the users of the facility and the government, are usually called hybrid PPPs. A key step in assuring that a proposed PPP highway project would attract private investors is to determine whether financial public support would be required, and if so, how much. To this endeavor, this paper reviews and applies a hybrid PPP financial model for highways that facilitates carrying out projects' financial viability by decision makers and practitioners. A numerical case study is used to illustrate applications of the model to conditions deemed representative of Southeastern European countries. The main outputs generated by the model include the project’s internal rate of return, equity internal rate of return, annual debt service coverage ratio, and the present value of the government’s cash flow. A sensitivity analysis carried out shows the impact of key input parameters on the main outputs. While the financial model discussed has been developed for roads, it can also be adapted to other forms of transport infrastructure, such as rail.
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dos Santos, Sidney Pereira. "Availability and Risk Analysis Effects on Gas Pipeline Tariff Making." In 2008 7th International Pipeline Conference. ASMEDC, 2008. http://dx.doi.org/10.1115/ipc2008-64083.
Full textAbstract:
On a competitive market gas transportation rates must be as low as possible while recovering capital expenses — Capex and operating and maintenance expenses — Opex at a return rate expected by the project sponsors to recover their investment. To guarantee project feasibility, designers must be concerned not only with technical and direct economic aspects but should also incorporate availability and economic risk analysis to make sure that under operating conditions along the economic life of a project the cash flow will be kept inside predicted values and therefore will not expose project sponsors to undesirable negative Net Present Values — NPV. This paper will present a methodology to address these important aspects with focus on pipeline economics. Pipeline availability study associated with compressor stations failure analysis will be evaluated under Monte Carlo simulation and consequently their impacts on gas pipeline capacity will be economically evaluated. Quantitative economic risk analysis using Monte Carlo simulation is part of the methodology. The adoption of this methodology allows committing more pipeline transmission capacity to a level close to maximum without exposing the Transporter to losses of revenue and contractual penalties. Also prevents designing an oversized and less competitive system with unused spare capacity and consequently higher transportation rates.
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Ooi, D. "Comparative analysis of the relative attractiveness of the current fiscal terms in the South East Asia region." In Indonesian Petroleum Association 44th Annual Convention and Exhibition. Indonesian Petroleum Association, 2021. http://dx.doi.org/10.29118/ipa21-bc-205.
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This paper aims to assess the relative competitiveness of the current fiscal terms in South East Asia in the context of changes proposed and implemented across the region. A discounted cash flow (DCF) analysis was carried out based on the generic fiscal terms of Brunei, Indonesia, Malaysia, Thailand, and Vietnam based on an offshore, shallow water development. Where applicable, a comparison will be made against the previous fiscal terms of the country. Analysis will focus on investor returns and from the host government perspective evaluating net present value (NPV), internal rate of return (IRR), and government take. The fiscal terms were also assessed on whether they are progressive or regressive and provide an equitable return to both investors and host governments. Indonesia, Thailand, and Malaysia have seen recent shifts in their fiscal terms with new terms introduced in 2017, 2018, and 2021, respectively. Indonesia saw the introduction of the Gross Split Production Sharing Contract (GS PSC), which based on this analysis does not appear to be an improvement on the previous Cost Recovery Production Sharing Contract (CR PSC). Thailand saw the introduction of a CR PSC which was applied to the two expired offshore, producing, blocks. Based on our analysis, the newly introduced fiscal terms for Malaysia appears to provide a significant improvement to the previous terms and is likely to encourage further investment. Governments and regulators will face greater pressure to provide further incentives and greater flexibility to attract investments in the face of maturing fields, marginal fields, challenging sour gas resources, and capital constraints resulting from and Environmental, Social, and Corporate Governance (ESG) pressures on oil and gas companies.
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Foo, Farren Kaylyn, and Derric Shen Chien Ong. "Advance Injection Strategy Optimization: Maximize Benefit-Cost Ratio by Integration of Economic Spreadsheet in Excel to Assisted History Matching Using Python Scripting." In Abu Dhabi International Petroleum Exhibition & Conference. SPE, 2021. http://dx.doi.org/10.2118/207955-ms.
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Abstract Oil prices see large fluctuations peculiarly over the last eight years due to natural disasters, political instability, and Covid-19 pandemic shock. These prompt to anxiety towards expenditure in planning and forecasting of a field development plan (FDP). Economic optimization of a reservoir under water drive can be extremely tedious and time consuming especially for complex field. Traditionally, upon completion of forecast optimization on fluid production, reservoir engineer willhand over the reservoir models to petroleum economist for economical evaluation. If the chosen development strategy is not economically viable, the model strategies will have to be updated, and continue the repetition of financial evaluation all over again. Hence, this paper established an automated workflow that diminished the dilemma on iterations obligation between simulation runs and financial reviews in searching for most efficient waterflooding strategy. The automated workflow is accomplished by bridging three tools together seamlessly utilizing python scripting. These include the cash flow economic spreadsheet model, the dynamic simulator, and an assisted uncertainty analysis tool. The process first started with defining the economic parameters such as OPEX, CAPEX, oil price, taxes, discounted rates, and other financial parameters on an annual basis in spreadsheet. The uncertainty parameters: water injection rate, maximum water cut, and injection duration will be evaluated during forecast optimization to produce project efficiency indexes: Net Present Value (NPV) and Benefit-Cost Ratio (BCR). This integration was achieved by python script that automatically creates a coding path which exchanges simulation production and economic spreadsheet data at every simulation time step and each development strategy, that require no manual intervention. The integrated economic-dynamic model workflow has successfully applied on West Malaysian field and Olympus model, a development strategy that maximize oil recovery without neglecting cost of water disposal, storage for total water produced from the reservoir. This paper successfully identified the most efficient waterflooding strategy and production constraints for each well using BCR as objective function for optimization. The optimum development scenario does have a BCR which is more than 2 which show that investment on that particular development strategy is profitable. The results also demonstrated a crucial impression that the highest oil cumulative production may not results in high BCR due to cost involvement in resolving water production and field maintenance services. This paper outlined the methodology, python scripting codes, and how integration automation works that successfully optimized an injection strategy in a development project using economic model from third-party application. The results of this automated workflow demonstrate a successful utilization of new technologies and simple customize programming knowledge that promote cross-discipline integration for enhanced work-time efficiencies in problem solving that is suitable for all reservoir model type to determine its success rate and economic viability during FDP.
Reports on the topic "Return on Net Financial Cash Flow"
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McCullouch, Bob. INDOT Research Program Benefit Cost Analysis—Return on Investment for Projects Completed in FY 2019. Purdue University, 2020. http://dx.doi.org/10.5703/1288284317279.
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To demonstrate the value of research and its implementation, the Governor’s Office requested an annual financial analysis of the INDOT Research Program to determine the return on the research investment (ROI). This report is for the 35 research projects that completed in FY 2019. The ROI analysis will supplement the annual IMPACT report by adding a more rigorous quantitative benefit cost analysis (BCA) to the Research Program. Previous financial analyses used the approach of calculating net present values of cash flows to determine a benefit cost ratio and this report uses the same approach. Additionally, an overall program rate of return (ROI) is reported and will be accumulated over time into a rolling 5-year average. The ROI is expressed as a BCA ratio, which is commonly used by State DOTs and national transportation research agencies when expressing the return on the research investment. By using total program costs in the analysis, rather than just the individual project cost, a very conservative BCA ratio is obtained. Interestingly, the quantified cost savings from a single project frequently underwrites the cost of the entire research program in a fiscal year.
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McCulloch, Bob. INDOT Research Program Benefit Cost Analysis—Return on Investment for Projects Completed in FY 2020. Purdue University, 2021. http://dx.doi.org/10.5703/1288284317265.
Full textAbstract:
To demonstrate the value of research and its implementation, the Governor’s Office requested an annual financial analysis of the INDOT Research Program to determine the return on the research investment (ROI). The current financial analysis is for research projects that completed in FY 2020. Analyses on previous year’s projects is necessary primarily due to the time it takes some project outcomes to be implemented, extending into the following year. Therefore, the FY 2020 analysis is completed in calendar 2021. The ROI analysis will supplement the annual IMPACT report by adding a more rigorous quantitative benefit cost analysis (BCA) to the Research Program. Previous financial analyses used the approach of calculating net present values of cash flows to determine a benefit cost ratio and this report uses the same approach. Additionally, an overall program rate of return (ROI) is reported and will be accumulated over time into a rolling 5-year average. While the quantitative benefit cost analysis (BCA) was rigorous, results are limited to projects where benefits and costs could be quantified, where data is available to perform a quantitative analysis. Qualitative benefits are highlighted in the companion annual IMPACT report (https://www.in.gov/indot/files/Research-Program-Impact-Report.pdf ). In 2018, INDOT unveiled its new Strategic Plan. The Strategic Plan guides the priority research needs of the Research Program and in turn the research results support accomplishing the INDOT Strategic Plan, Strategic Objectives. A new Strategic Objective has been added to the INDOT Strategic Plan addressing Innovation & Technology. Additionally, INDOT created a new Office of Innovation. While the Research Program supports all of INDOT’s Strategic Objectives, these new initiatives have further highlighted the importance of research and its role in achieving the Strategic Objectives outlined in the new INDOT Strategic Plan. There has been more emphasis of new research needs related to new technology changes and transformational technologies. This will help position INDOT for future growth, adoption of new technologies and partnering opportunities. These new research projects will provide large qualitative ROI, however are difficult to quantify due to their complexity and newness.