An introductory study to determine patterns in cash flow ratios of listed industrial companies on the Johannesburg Stock Exchange

Madisa, Keamogetswe Juliet (1998-12)

Thesis (MBA)--University of Stellenbosch, 1998.

Thesis

ENGLISH ABSTRACT: In many ways, the cash flow statement can be more informative than the other financial statements. It is relatively freer from subjective accounting and reveals managerial choices, such as investment and financing decisions, which are less apparent from the balance sheet or income statement. One of the components of the cash flow statement, cash flow from operations, is the primary focus and the primary variable of interest in this study. The study set out to create a database for the University of Stellenbosch Business School by using cash flow ratios of listed industrial companies on the Johannesburg Stock Exchange for the period 1974 to 1997. This is an initial attempt to have such a facility in place to assist future researchers in establishing patterns present in the ratios. Descriptive statistics were calculated for all the ratios. Twenty-two ratios were calculated in three ways: (a) Ratios were pooled over time and over sector; (b) Ratios were pooled over time for each of the 17 sectors; and (c) Ratios were pooled over sectors for each of the years 1974 to 1997. In addition, chi-square and Kolmogorov-Smirnov tests for normality were conducted. To get insight into the potential patterns, some of the statistical properties of cash flow ratios have been examined with particular reference to two ratios, (ratio 14 and ratio 20). These were chosen since they are considered to be the most important ratios in the study.

AFRIKAANSE OPSOMMING: Die kontantvloeistaat kan op baie maniere meer inligting as die ander finansieIe state verskaf. Dit word relatief gesproke minder deur subjektiewe rekerungkunde beYnvloed en dit 1aat die klem val op bestuursbesluite, S005 investerings- en finansieringsbesluite. Laasgenoemdes is minder duidelik waameembaar as daar na die balansstaat en inkomstestaat gekyk word. Kontant uit bedryfsaktiwiteite. een van die komponente van die kontantvloeistaat, is die primere fokus en die belangrikste item in hierdie studie. Die doel van die studie is om 'n datahasis vir die Bestuurskool van die Universiteit van Stellenbosch daar te stel, deur gebruik te maak van kontantvloeiverhoudings van aile genoteerde industriele maatskappye op die Johannesburg Effektebeurs vir die periode 1974 tot 1997. Dit was 'n eerste poging om so 'n fasiliteit daar te stel ten einde toekomstige navorsers in staat te stel om patrone aanwesig in die verhoudings waar te neem. Beskrywende statistiek is bereken Vlf al die verhoudings. Twee en twintig verhoudings is bereken op drie maniere: (a) Verhoudings gepoel oor tyd en oor sektore heen; (b) Verhoudings verpoel oor jare vir elk van die 17 sektore; en (c) Verhoudings verpoel oor sektore heen, per jaar vanaf 1974 tot 1997. Verder is die chi-kwadraat en die Kolmogorov-Smirnoftoetse vir normaliteit gedoen. Twee van die verhoudings. verhoudings 14 en 20, is uitgesonder as die belangrikste verhoudings in die studie. Ten einde insig in die potensieie patrone van die kontantvloeiverhoudings te verkry, is die statistiese eienskappe van hierdie twee verhoudings verder ondersoek.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/55813
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