FEATURES OF CALCULATION AND ANALYSIS OF FREE CASH FLOW

The features are investigated, systematized, and reserves for improving the process of calculating and analyzing free cash flow are identified. The sources of information have been clarified, and a new indicator for assessing the effectiveness of cash flow management – the economic return on assets on free cash flow - has been recommended

Digital Entrepreneurship and Innovation

This chapter is based on a case study that highlights the digital entrepreneurship and innovation of an entrepreneurial venture and team aspiring to address cash flow management issues and pains faced by the micro, small, and medium-sized enterprises (MSMEs) in Malaysia. The entrepreneurial team pioneered the revolutionization of the barter trade concept by developing a digital solution and platform branded as Kongsi (initially named Qu Exchange). Kongsi is a solution using digital trade points which act as a medium of exchange in replace of cash. This solution can solve cash flow problems faced by MSMEs with the creation of a non-cash alternative financing platform, combining and integrating the concept of barter trade and a point-based system. In this case study, the authors examined two critical success factors for digital entrepreneurship and innovation. This case study exemplifies a venture and entrepreneurial team capable of assembling strategic resources to create and sustain competitive advantages to survive and grow in a highly competitive FinTech environment.

Analysis of Construction Implementation Time and Cost Scheduling by Adjusting Budget Changes Due to the Covid-19 Pandemic (Case Study on the Randugunting Dam Construction Project)

The Randugunting Dam, located in Blora Regency, is planned to have a capacity of 10.40 million m and is expected to irrigate an area of 630 Ha, providing a raw water supply of 0.15 m/second. The construction activity of the Randugunting Dam is one of the construction works that has been affected by the Covid-19 pandemic, namely cash flow is hampered. Therefore we need an analysis of cash flow management scenarios and determining strategies for handling the impact of the pandemic on implementation. The data used in this study is the result of interviews with the project implementation team for the Randugunting Dam construction, and data on the project cost budget. Cash flow management analysis is carried out by applying 3 scenarios, namely: scenario 1 (fixed time), scenario 2 (slowed down time), and scenario 3 (accelerated time). The analysis was carried out with the help of the Microsoft Project 2010. The determination of the handling strategy in this study used the DSS (Decision Support System) method, and the SWOT (Strength, Weakness, Opportunity, and Threat). The results of the study chose scenario 3, which is to speed up the time of 6 months. Acceleration is done by increasing the working time. The annual cost required is higher than scenario 1 (fixed time) and 2 (delayed time by 7 months), but the building is completed faster and can be used immediately. The strategy generated by SWOT analysis is Diversity Strategy and produces 8 (eight) strategies. Diversity Strategy is a strategy by maximizing internal strength factors (S), namely increasing the internal capabilities of project implementers and avoiding external threat factors (T), especially related to the Covid-19 pandemic.

The Impact of Cash Flow Management Practices on Financial Performance of Cement Manufacturing Firms: A Comparative Study of Pakistan and India

Purpose: The study examined the impact of cash flow management practices on Pakistani cement firm’s financial performance with comparison of Indian cement sector’s selected firms. Methodology: The Pooled OLS Regression is applied with the Help of EViews software. The data collection is from official websites of the concerned companies from 2009 to 2018 with help of secondary source. The multiple regressions, Random Effect Model and Fixed effect models are used for the analysis of data and confirmed with Husman test. Findings: The finding of this study for both selected countries indicated the influence of cash flow management practices wherein both countries cement producing companies shows significant impact on firm’s performance but in terms of Pakistan Return on Assets have no impact on firm’s Profitability. Implications: Therefore, after a careful analysis study recommended that cement manufacturing companies must reevaluate their practices of managing cash flows in order to generate more profitability and generate enough cash to meet their obligations.

CONSTRUCTION OF THE SUCCESS FACTORS OF IKAT WEAVINGS (A CASE STUDY OF AN IKAT WEAVING CRAFTSMAN UNDER THE BIA BEREK IKAT WEAVING GROUP – BELU REGENCY)

This study discusses the success factors in running a woven handicraft business experienced and immediately felt by several ikat craftsmen in one group of Bia Berek weaving in the city of Atambua, Belu Regency, East Nusa Tenggara. This is to direct the informant to answer all the success factors that have occurred and let the qualitative research model be used as a method in this research. The research used semi-structured interviews, and the informant reveals as widely as possible the informant regarding other factors that are also the key to success in running a business. These success factors include the proper management of current assets (supplies of woven fabrics) and fixed assets (weaving equipment and equipment and business premises), the ability to manage business turnover, cash flow management, the ability to process all business costs in the cost structure, management of revenue on weaving business, having personal savings and investing in non-bank financial services, increasing the marketing of woven fabrics, using technology for business innovation in the digital world, prioritizing the quality of woven fabrics produced, utilizing culture and tradition as business opportunities and potential, building profitable cooperation with local government of Belu Regency. The twelve factors that have been classified into financial and non-financial factors are constructed in a new model design that can be used as learning materials for micro, small and medium enterprises in improving their business by taking into account all the success factors that occur in their business.

Features of formation of payment calendar for enterprises

Introduction. The development of a payment calendar for enterprises is relevant at the moment, because in the process of analysis detected that a lot of enterprises have financial gaps. If enterprises have an inefficient cash flow planning system, as evidenced by financial gaps in production and economic activities, then there will be neccessary to develop a sequence of cash flow planning, which is the payment calendar. Due to the payment calendar will be possible to identify the periods of their occurrence, to determine the factors that affect this process, which, accordingly, will allow more effective processes of controlling and regulating the movement of funds. The main purpose of the paper is to develop a model of forming a payment calendar. The theoretical and methodological basis of the paper is the study of the process of forming a payment calendar as a tool of financial planning and diagnostics. The following methods were used in writing the paper: logical generalization, dialectical analysis, grouping, etc. Results. The paper analyzes the issues of diagnosing cash flows, considers the essence of the concept of “payment calendar” as a tool for cash flow management. The need to diagnose cash flows in order to determine possible cash gaps is determined. For the correct application of the payment calendar, has been developed a step-by-step model of its formation, which contains the stages of formation and information support for the implementation of each of the stages. In explanations for the construction of the model contain recommendations for finding reserves as a result of identifying cash gaps and shortages of funds by reducing expenditures and increasing revenues from certain activities. The step-by-step model consists of six stages that contains determined of the period of formation of the payment calendar, planned revenues, other revenues and expenditures, balance and possible surpluses and deficits of cash flows. Conclusions. The introduction of a payment calendar will have a positive impact on the functioning of the enterprise, will keep funds under constant control, which will increase financial productivity. The payment calendar allows you to save time to identify the shortcomings of the diagnosis, reduce the cost of human resources to draw conclusions about the effectiveness of the system of diagnosing cash flows, respectively, the company is able to increase its financial stability.

How innovations in strategy have picked up with COVID-19

PurposeThe purpose of this article is to explore how corporate strategies have been impacted by the COVID-19 pandemic.Design/methodology/approachA wide array of literature has been surveyed. Also, several senior executives have been interviewed. And two senior management counterparts have provided inputs. The approach taken is thus exploratory and pre-paradigmatic. This sets the stage for potential empirical investigations.FindingsThere seems to be a clear shift towards more web-based inputs regarding the way corporations are executing their strategies. Surprisingly shorter-term strategy implementation seems to be rather effective. More fundamental shifts in strategies, however, seem to depend a lot on executives' abilities to travel, and this have been severely curtailed.Research limitations/implicationsThe propositions that are stated in the paper have not been tested empirically. This sets clear limitations regarding generalizability.Practical implicationsIt seems important to strengthen firms' capabilities regarding distance-driven strategic execution, as well as strengthened cash flow management.Social implicationsThere seems to be a clear shift towards more nationalization, and a slowing-down of globalization.Originality/valueWhile many of the findings might be seen as rather self-evident, there is nevertheless originality in the way that COVID-19's impact on firms' strategies has been analysed.

Difference in S-Curve for Different Types of Construction Projects

Project cash flow and contractor S-curve are tools that can be used to measure, control and anticipate project progress. Few studies dedicated to evaluate and judge the behaviour of the original S-curve. This study aims to evaluate the similarities and changes of construction projects S curves between different project types. More than 40 S-curves were collected from the state of Kuwait for different types of construction projects. The list of collected curves divided into six groups based on the type of client, no of buildings and number of floors. Statistical analysis used to compare the curves inside each group of projects. Statistical analysis using test of normality, T-paired test then Standard Euclidean Distance were applied to evaluate the similarity and changes between groups. This study revealed that there is a level of similarity of S-curves for high rise buildings and there is no similarity of S-curves for one or multi-building projects. The maximum gap between S-curves for one and high rise building laying in the middle part of project duration, while the maximum gap between S-curves for multi-building project laying in 70% to 80% of project duration. This study revealed that the variance of S-curve behaviour indicating there is no common attitude for all types of construction project types. This study can help construction stakeholders to anticipate their expected expenses and help in project cash flow management.