Classification of the Micro, Small, Medium and Large (MSMLE?s) Enterprises in Belize, Based on the Free Cash Flow (FCF)

摘要

The objective of this research was to classify the enterprises into Micro, Small, Medium & Large (MSMLE’s) in Belize base on its Free Cash Flow (FCF). The data that was used came from 1500 enterprises distributed within the nine municipalities through the country of Belize. The method that was used to classify the enterprises base on the Free Cash Flow was the Discriminant Analysis method. The specific objectives of this research were to 1) Evaluate the accuracy level in the classification of the enterprises in Belize. 2) Determine correlation level, or association of the contributing indicators or Factors, in the classification process, 3) Estimate a Mathematical Equation for Enterprise classification into MSMLE's for Belize. The study found that the Discriminant Analysis (DA) calculated four groups that can be classified as Micro, Small, Medium and Large Enterprises (MSMLE’s). Additionally, it confirmed an accuracy level of 98.8%. Furthermore, the calculated Mathematical Equation for unstandardized values is as follows: D1=-13.186+5.723EBT(X; )-0.258BT(X2)+0.013GST(X3)+6.954NOPAT(X4)+0.105EI(X5).