Journal of Accounting, Auditing & Finance, 1995
This paper presents empirical evidence that previously disclosed financial ratio information is u... more This paper presents empirical evidence that previously disclosed financial ratio information is useful in explaining differential market reactions for a cross-section of firms facing subsequent common industry-level changes. We focus our attention on the Airline Deregulation Act of 1978 (Public Law 95-504), which was aimed at complete deregulation of the U.S. airline industry after 40 years of federal regulation. Our empirical results indicate that market reaction to the deregulatory changes is positively associated with operating performance and asset utilization. This suggests that an airline firm's operating efficiency as measured by these ratios is a key determinant of how investors expect it to perform in a deregulated competitive environment.
Cash is the life blood of the organizations and cash management is the important aspect of any or... more Cash is the life blood of the organizations and cash management is the important aspect of any organization. Corporate cash management boosts the companies from small to giant in the competitive environment. In this study we highlight three factors of a good cash management practices. Such factors are Cash Conversion Cycle (CCC), cash holding and credit score. Influence of one factor to other helps organizations manage their corporate cash in better way. In this study, we collect data from Capitaline corporate database of Mumbai, India over the period 2002-2011. Using some regression techniques, we observe that due to higher credit score companies forced to minimize their CCC and it helped to maintain lower level of working capital.
Cash plays essential role in modern business and economy and it is the life blood of all business... more Cash plays essential role in modern business and economy and it is the life blood of all businesses. Therefore, cash management is the art of managing a company's short-term resources for its ongoing activities, mobilizing funds and optimizing liquidity. Inefficient cash management may lead the company to bankruptcy. In this paper, we highlight different perspectives in which we can control the corporate cash including Cash Conversion Cycle, Cash Holding and Creditworthiness. The term Cash Conversion Cycle can be considered as a length of time between purchase of raw-materials and collection of cash from debtors. Cash holding is one of the most important financial decisions that the manager of the concerned organization has to make for the organizations. In this paper, we try to interlink among different items to control cash so that bankruptcy could be prevented and profitability would be improved by investigating on five companies from Consumer Durable sector.
ZENITH International Journal of Multidisciplinary Research, 2015
It is the age of competitive environment; most of the business firm follows lenient credit policy... more It is the age of competitive environment; most of the business firm follows lenient credit policy, to protect their market share and to retain their customers. Credit plays a strategic role, on the one hand it enhance sales volume of the business on the other hand excessive granting of credit without determining the financial strength of our credit applicant (customer), may leads to illiquidity problem. So, only sound credit management approach can ensure success in this environment. Credit analysis is actually risk analysis. Proper evaluation of risk regarding credit granting decision becomes very important before the commencement of sales because once the credit is accepted by creditor organization of its credit applicant, servicing and loss mitigation technique can control the future losses only to a limited extent. If the decision at the initial stage is taken after weighing pros and cons of the situation then transition to subsequent stages take places smoothly. In this study w...
Cash is the life blood of the organizations and cash management is the important aspect of any or... more Cash is the life blood of the organizations and cash management is the important aspect of any organization. Corporate cash management boosts the companies from small to giant in the competitive environment. In this study, we highlighted three factors of a good cash management practices; namely cash conversion cycle, cash holding and credit score. Influence of one factor to other help organizations manage their corporate cash more appropriately. In this study, we collected data from Capitaline corporate data base of Mumbai over the period 2002-2011. In this study we observed that due to higher credit score, companies were forced to minimize their cash conversion cycle and helped them maintain lower levels of working capital.
It is the age of competitive environment. Sound credit management approach can ensure success in ... more It is the age of competitive environment. Sound credit management approach can ensure success in this environment. Credit analysis is actually risk analysis. In the competitive environment and changing scenario, every business organisation has been trying to overcome such situation. Due to failure in competition, market share, and economies in business, many small businesses walk in the path of mergers and acquisitions, and big giant organisation take the advantage. Now the companies are diversified into variety of products and services. Therefore, to make the organisation profitable some objective information is required. As a business firm grows or is taken over by giant organisations, the decision making process becomes more complex and centralised and the old traditional methods of credit analysis become misleading. So in this paper we tried to give importance to the credit management.
must be informative and explain the background, aims, methods, results & conclusion in a single p... more must be informative and explain the background, aims, methods, results & conclusion in a single para. Abbreviations must be mentioned in full.
Cash flow ratios are generally prepared from cash flow statement as per AS-03. It is helpful for ... more Cash flow ratios are generally prepared from cash flow statement as per AS-03. It is helpful for financial users including shareholders, management, accountants, auditors and investors to get the relevant information regarding its financial resources for a certain period. Currently cash flow ratios are randomly used instead of traditional ratios due to its wideness and acceptability. In credit rating and forecasting the failure of an organization, cash flow ratios are very much relevant. In this study, we considered different companies from different sectors. From the study, it is clear that the liquidity and solvency position of the companies are moderate whereas the companies maintained low profitability. The efficiency ratios and sufficiency ratios of the companies selected in this study provide us a new look of financial judgement. In our study, we selected three companies from FMCG and Pharmaceuticals sectors. We used the data for a period of 10 years from 2004 to 2013 financial years. .
Cash flow ratios help financial users get relevant information about financial resources for a gi... more Cash flow ratios help financial users get relevant information about financial resources for a given time. Cash flow ratios are now used more than the traditional ones because it is more effective and justified. Cash flow based ratios are especially surprising because they do not only play a significant role in the credit rating of evaluation, but also forecast the failure of a corporation. In this study, we perform an empirical investigation on a company named CMC. From the study, it is clear that the liquidity and solvency positions of the company were moderate whereas the company maintained low profitability. On the other hand, the efficiency and sufficiency ratios of the study give us a new look on financial judgement.
Cash plays a very important role in modern business, specifically a new one. Cash is the life blo... more Cash plays a very important role in modern business, specifically a new one. Cash is the life blood of every business. Cash may be in the form of liquid money, bank balance etc. In this respect, cash management is both art as well as science of managing a companys short-term resources for its ongoing activities, mobilizing funds and optimizing liquidity. In this contest another important concept which is related with the cash management is the Treasury technique which emphasizes the liquidity by different factors and processes which convert immediately into cash for increasing profitability. Inefficient cash management may lead the company to bankruptcy. In this paper we highlighted different perspectives by which we can control the corporate cash of the company from Cash Conversion Cycle, Cash Flow, and Creditworthiness point of view. In this paper we tried to interlink among them to control and manage cash well, so that bankruptcy can be prevented and profitability should be impro...
We know that Cash Conversion Cycle (CCC) is one of the measures of liquidity management. In this ... more We know that Cash Conversion Cycle (CCC) is one of the measures of liquidity management. In this paper, we made an attempt to analyse the impact of CCC on the cash management. In this study we selected five companies from Pharmaceutical Sector, including, Alchemist, Lupin, Dr. Reddy's Laboratory, Cipla and Ranbaxy. In this study, we used the secondary data for analysis and retrieved from Capitaline database for ten years period from 2002 to 2011. Through cash conversion cycle we can easily determine the working capital requirement. Because, it considers the time gap between expenditure for the purchases of raw materials and collection from sales of finished goods prepared with such raw materials, CCC plays an important role in firm's short term assets and liabilities as well as success of the firm.
For measuring the efficiency of management of cash, cash holding is one of the most important fin... more For measuring the efficiency of management of cash, cash holding is one of the most important financial decisions that the manager of the concerned organization, has to make in the organization. Basically, it is observed that the organization hold cash for future purposes is very negligible. If the organization invested cash in profitable securities then there is some flexibility but when it relates to the capital market holding cash is not advantageous. Generally two contradictory theories such as Trade-off theory and the Pecking order theory are considered for measuring the efficiency of cash management. In this study we generally observed measured the efficiency of Cash Management influenced by Cash Holding. We also measured whether cash holding of the organization is affected with the degree of financial leverage, size of the organization, investment and profitability. This study helps us to understand the influence of DFL, Investment and Size of the organization on Cash holding. Proper holding of cash in cash management can prevent the bankruptcy of any organization and also increases the efficiency of Cash or Liquidity management.
This study compares the valuation of advertising barter sales recognized under APB Opinion No. 29... more This study compares the valuation of advertising barter sales recognized under APB Opinion No. 29, relative to transactions recorded under EITF Issue No. 99-17. EITF 99-17 was the FASB's response to the perception that Internet-related firms were overstating revenue. The results indicate an inverse relation between price-to-sales ratios and the amount of advertising barter recorded under APB 29 by e-tailing
Journal of Accounting, Auditing & Finance, 1995
This paper presents empirical evidence that previously disclosed financial ratio information is u... more This paper presents empirical evidence that previously disclosed financial ratio information is useful in explaining differential market reactions for a cross-section of firms facing subsequent common industry-level changes. We focus our attention on the Airline Deregulation Act of 1978 (Public Law 95-504), which was aimed at complete deregulation of the U.S. airline industry after 40 years of federal regulation. Our empirical results indicate that market reaction to the deregulatory changes is positively associated with operating performance and asset utilization. This suggests that an airline firm's operating efficiency as measured by these ratios is a key determinant of how investors expect it to perform in a deregulated competitive environment.
Cash is the life blood of the organizations and cash management is the important aspect of any or... more Cash is the life blood of the organizations and cash management is the important aspect of any organization. Corporate cash management boosts the companies from small to giant in the competitive environment. In this study we highlight three factors of a good cash management practices. Such factors are Cash Conversion Cycle (CCC), cash holding and credit score. Influence of one factor to other helps organizations manage their corporate cash in better way. In this study, we collect data from Capitaline corporate database of Mumbai, India over the period 2002-2011. Using some regression techniques, we observe that due to higher credit score companies forced to minimize their CCC and it helped to maintain lower level of working capital.
Cash plays essential role in modern business and economy and it is the life blood of all business... more Cash plays essential role in modern business and economy and it is the life blood of all businesses. Therefore, cash management is the art of managing a company's short-term resources for its ongoing activities, mobilizing funds and optimizing liquidity. Inefficient cash management may lead the company to bankruptcy. In this paper, we highlight different perspectives in which we can control the corporate cash including Cash Conversion Cycle, Cash Holding and Creditworthiness. The term Cash Conversion Cycle can be considered as a length of time between purchase of raw-materials and collection of cash from debtors. Cash holding is one of the most important financial decisions that the manager of the concerned organization has to make for the organizations. In this paper, we try to interlink among different items to control cash so that bankruptcy could be prevented and profitability would be improved by investigating on five companies from Consumer Durable sector.
ZENITH International Journal of Multidisciplinary Research, 2015
It is the age of competitive environment; most of the business firm follows lenient credit policy... more It is the age of competitive environment; most of the business firm follows lenient credit policy, to protect their market share and to retain their customers. Credit plays a strategic role, on the one hand it enhance sales volume of the business on the other hand excessive granting of credit without determining the financial strength of our credit applicant (customer), may leads to illiquidity problem. So, only sound credit management approach can ensure success in this environment. Credit analysis is actually risk analysis. Proper evaluation of risk regarding credit granting decision becomes very important before the commencement of sales because once the credit is accepted by creditor organization of its credit applicant, servicing and loss mitigation technique can control the future losses only to a limited extent. If the decision at the initial stage is taken after weighing pros and cons of the situation then transition to subsequent stages take places smoothly. In this study w...
Cash is the life blood of the organizations and cash management is the important aspect of any or... more Cash is the life blood of the organizations and cash management is the important aspect of any organization. Corporate cash management boosts the companies from small to giant in the competitive environment. In this study, we highlighted three factors of a good cash management practices; namely cash conversion cycle, cash holding and credit score. Influence of one factor to other help organizations manage their corporate cash more appropriately. In this study, we collected data from Capitaline corporate data base of Mumbai over the period 2002-2011. In this study we observed that due to higher credit score, companies were forced to minimize their cash conversion cycle and helped them maintain lower levels of working capital.
It is the age of competitive environment. Sound credit management approach can ensure success in ... more It is the age of competitive environment. Sound credit management approach can ensure success in this environment. Credit analysis is actually risk analysis. In the competitive environment and changing scenario, every business organisation has been trying to overcome such situation. Due to failure in competition, market share, and economies in business, many small businesses walk in the path of mergers and acquisitions, and big giant organisation take the advantage. Now the companies are diversified into variety of products and services. Therefore, to make the organisation profitable some objective information is required. As a business firm grows or is taken over by giant organisations, the decision making process becomes more complex and centralised and the old traditional methods of credit analysis become misleading. So in this paper we tried to give importance to the credit management.
must be informative and explain the background, aims, methods, results & conclusion in a single p... more must be informative and explain the background, aims, methods, results & conclusion in a single para. Abbreviations must be mentioned in full.
Cash flow ratios are generally prepared from cash flow statement as per AS-03. It is helpful for ... more Cash flow ratios are generally prepared from cash flow statement as per AS-03. It is helpful for financial users including shareholders, management, accountants, auditors and investors to get the relevant information regarding its financial resources for a certain period. Currently cash flow ratios are randomly used instead of traditional ratios due to its wideness and acceptability. In credit rating and forecasting the failure of an organization, cash flow ratios are very much relevant. In this study, we considered different companies from different sectors. From the study, it is clear that the liquidity and solvency position of the companies are moderate whereas the companies maintained low profitability. The efficiency ratios and sufficiency ratios of the companies selected in this study provide us a new look of financial judgement. In our study, we selected three companies from FMCG and Pharmaceuticals sectors. We used the data for a period of 10 years from 2004 to 2013 financial years. .
Cash flow ratios help financial users get relevant information about financial resources for a gi... more Cash flow ratios help financial users get relevant information about financial resources for a given time. Cash flow ratios are now used more than the traditional ones because it is more effective and justified. Cash flow based ratios are especially surprising because they do not only play a significant role in the credit rating of evaluation, but also forecast the failure of a corporation. In this study, we perform an empirical investigation on a company named CMC. From the study, it is clear that the liquidity and solvency positions of the company were moderate whereas the company maintained low profitability. On the other hand, the efficiency and sufficiency ratios of the study give us a new look on financial judgement.
Cash plays a very important role in modern business, specifically a new one. Cash is the life blo... more Cash plays a very important role in modern business, specifically a new one. Cash is the life blood of every business. Cash may be in the form of liquid money, bank balance etc. In this respect, cash management is both art as well as science of managing a companys short-term resources for its ongoing activities, mobilizing funds and optimizing liquidity. In this contest another important concept which is related with the cash management is the Treasury technique which emphasizes the liquidity by different factors and processes which convert immediately into cash for increasing profitability. Inefficient cash management may lead the company to bankruptcy. In this paper we highlighted different perspectives by which we can control the corporate cash of the company from Cash Conversion Cycle, Cash Flow, and Creditworthiness point of view. In this paper we tried to interlink among them to control and manage cash well, so that bankruptcy can be prevented and profitability should be impro...
We know that Cash Conversion Cycle (CCC) is one of the measures of liquidity management. In this ... more We know that Cash Conversion Cycle (CCC) is one of the measures of liquidity management. In this paper, we made an attempt to analyse the impact of CCC on the cash management. In this study we selected five companies from Pharmaceutical Sector, including, Alchemist, Lupin, Dr. Reddy's Laboratory, Cipla and Ranbaxy. In this study, we used the secondary data for analysis and retrieved from Capitaline database for ten years period from 2002 to 2011. Through cash conversion cycle we can easily determine the working capital requirement. Because, it considers the time gap between expenditure for the purchases of raw materials and collection from sales of finished goods prepared with such raw materials, CCC plays an important role in firm's short term assets and liabilities as well as success of the firm.
For measuring the efficiency of management of cash, cash holding is one of the most important fin... more For measuring the efficiency of management of cash, cash holding is one of the most important financial decisions that the manager of the concerned organization, has to make in the organization. Basically, it is observed that the organization hold cash for future purposes is very negligible. If the organization invested cash in profitable securities then there is some flexibility but when it relates to the capital market holding cash is not advantageous. Generally two contradictory theories such as Trade-off theory and the Pecking order theory are considered for measuring the efficiency of cash management. In this study we generally observed measured the efficiency of Cash Management influenced by Cash Holding. We also measured whether cash holding of the organization is affected with the degree of financial leverage, size of the organization, investment and profitability. This study helps us to understand the influence of DFL, Investment and Size of the organization on Cash holding. Proper holding of cash in cash management can prevent the bankruptcy of any organization and also increases the efficiency of Cash or Liquidity management.
This study compares the valuation of advertising barter sales recognized under APB Opinion No. 29... more This study compares the valuation of advertising barter sales recognized under APB Opinion No. 29, relative to transactions recorded under EITF Issue No. 99-17. EITF 99-17 was the FASB's response to the perception that Internet-related firms were overstating revenue. The results indicate an inverse relation between price-to-sales ratios and the amount of advertising barter recorded under APB 29 by e-tailing
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