Excess Cash Margin

Abstract

Earnings quality depends on how well firm earnings are supported by cash flows. In order to measure earnings quality, it is possible to use earnings quality indicators, which are much more practical to apply compared to complex models. In this article, Excess Cash Margin (ECM), an earnings quality indicator, an early warning signal that provides useful information about the relationship between a firm's net income and operating cash flow, is examined in detail. If net income and operating cash flow do not change at similar rates over extended periods, inconsistencies that may be seen in ECM may indicate that earnings are of poor quality. However, inconsistencies seen in the ECM in the short run may not mean that earnings are of poor quality. Seasonal changes, cyclical developments, changes in the firm’s life cycle and firm-specific developments may result in differences between the rates of change in net income and the rates of change in operating cash flow. It should also be emphasized that the usefulness of ECM for its purposes depends on making some adjustments for particular parameters in the ECM equation.

Keywords

• Accrual Basis of Accounting
• Cash Flows
• Earnings Management
• Fraud
• Earnings Quality

Artakalan Nakit Marjı

Abstract

Kâr kalitesi, firma kârlarının nakit akışlarıyla ne kadar iyi desteklendiğine bağlıdır. Kâr kalitesini ölçebilmek için, karmaşık modellere nazaran uygulanması çok daha pratik olan kâr kalitesi göstergelerini kullanmak mümkündür. Bu makalede, bir firmanın net kârı ile esas faaliyetlerinden nakit akışı arasındaki ilişkiye dair faydalı bilgiler sağlayan bir kâr kalitesi göstergesi ve erken uyarı sinyali olan Artakalan Nakit Marjı (ANM) ayrıntılı olarak incelenmektedir. Net kârlar ve esas faaliyetlerden nakit akışları, uzun dönemler boyunca benzer oranlarda değişmiyorsa, ANM’de görülebilecek tutarsızlıklar, kârların kalitesiz olduğuna işaret edebilir. ANM'de kısa dönemde görülen tutarsızlıklar ise, kârların kalitesiz olduğu anlamına gelmeyebilir. Mevsimsel değişiklikler, konjonktürel olaylar, firmanın yaşam döngüsündeki değişiklikler ve firmaya özgü olaylar, net kârların değişim oranları ile esas faaliyetlerden nakit akışlarının değişim oranları arasında farklılıklara neden olabilir. Ayrıca vurgulamak gerekir ki, ANM’nin amaçları doğrultusunda faydalı olabilmesi, ANM denklemindeki belirli parametrelerde birtakım düzeltmelerin yapılmasına bağlıdır.

Keywords

• Tahakkuk Esaslı Muhasebe
• Nakit Akışları
• Kâr Yönetimi
• Hile
• Kâr Kalitesi

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