Kontantvloeipatrone by 'n aantal gedenoteerde Suid-Afrikaanse industriele maatskappye

Jacobs, Liza (1997-03)

Thesis (MBA)--Universiteit van Stellenbosch, 1997.

Thesis

ENGLISH ABSTRACT: In this study an investigation has been made into the cash flow of delisted companies to determine whether any patterns appear.The hypothesis has been make that if companies, after their annual company taxation and finance charges have been paid, have a negative cash flow over two consecutive years, they will most probably be delisted the third year. In order to address the problem in the short term a rights issue can be done, but the problem is not necessarily solved. In lay language it would imply that the operating capital cycle is too high, or that the earnings before interest and taxation are too low, or that the growth rate is too high, or a combination of the three factors. Financing must therefor be arranged to meet the legal liabilities, such as interest and taxation, and also to finance any expansion, investment or growth. The short-term answer is indeed a rights issue to existing shareholders. If this option is exercised the cash-flow pattern could be disturbed since the extra capital can, in some cases. save the company despite the negative cash flow. In the long term it is not preferable since the company may run into financial difficulties due to excessive growth as a result of poor management, although the rights issue can keep the company alive in the short term. Nonna1 and preference shares are issued regularly to increase capital and the resulting costs are less than those of a long or short-term loan. Shareholders will lose dividends under these circumstances provided that the company grows and the share price rises in the process. This study has shown that even these companies, where the poor cash flow pattern is disturbed, could not be saved from financial disaster.

AFRIKAANSE OPSOMMING: In hierdie studie is ondersoek ingestel oa die kontantvloei van gedenoteerde maatskappye om te bepaal of daar enige patrone voorkom. Die hipotese is gemaak dat as maatskappye, nadat hulle jaarlikse maatskappybelasting en finansieringskostes betaal is, 'n negatiewe kontantvloei oor twee agtereenvolgende jare bet, hulle heel moontlik die derde jaar gedenoteer sal word. Om op die kort termyn die probleem aan te spreek sal 'n regte-uitgifte gedoeu kan word, maar die probleem word nie noodwendig opgelos nie. In leketaal sou dit impliseer dat die bedryfSkapitaa1siklus te groot is, of dat die verdienste voar rente en belasting te laag is, of dat die groeikoers te boog is, of 'n komhinasie van die drie faktore. Finansiering moet dus geree} word am die wetlike aanspreeklikhede, soos rente en belasting, Da te kom en ook am enige uitbreiding, investering of groei te finansier. Die korttermynantwoord Ie juis in 'n regte-uitgifte aan bestaande aandeelhouers. Indien hierdie opsie uitgeoefen word, sal die kontantvioeipatroon versteur kao word aangesien die ekstra kapitaal die maatskappy, ongeag die negatiewe kontantvloe~ in sommige gevalle kan red. Oor die lang termyn is dit rue wenslik rue aangesien die maatskappy homself kan doodgroei of bloot kan ondergaan as gevolg van swak bestuur, alhoewel die regte-uitgifte die maatskappy oor die kort termyn lewendig hou. Gewone en voorkeuraandele word geree1d uitgereik om kapitaal te verhoog en die voortspruitende verpligtinge is minder as die van 'n lang- of korttermynlening. Aandeelhouers sal onder omstandighede dividende inboet mits die maatskappy groei en die aandeelprys in die proses styg. Die ondersoek het getoon dat selfs die roaatskappye. waar die swak kontantvloeipatroon verst-eur word, nie van ondergang gered kon word rue.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/55569
This item appears in the following collections: