公司理财精要chap017.pptVIP

Working Capital Management Chapter 17 Key Concepts and Skills Understand how firms manage cash and various collection, concentration and disbursement techniques Understand how to manage receivables and the basic components of credit policy Understand various inventory types, different inventory management systems and what determines the optimal inventory level Chapter Outline Float and Cash Management Cash Management: Collection, Disbursement, and Investment Credit and Receivables Inventory Management Inventory Management Techniques Reasons for Holding Cash Speculative motive – hold cash to take advantage of unexpected opportunities Precautionary motive – hold cash in case of emergencies Transaction motive – hold cash to pay the day-to-day bills Trade-off between opportunity cost of holding cash relative to the transaction cost of converting marketable securities to cash for transactions Understanding Float Float – difference between cash balance recorded in the cash account and the cash balance recorded at the bank Disbursement float Generated when a firm writes checks Available balance at bank – book balance 0 Collection float Checks received increase book balance before the bank credits the account Available balance at bank – book balance 0 Net float = disbursement float + collection float Example: Types of Float You have $3000 in your checking account. You just deposited $2000 and wrote a check for $2500. What is the disbursement float? What is the collection float? What is the net float? What is your book balance? What is your available balance? Cash Collection Cash Disbursements Slowing down payments can increase disbursement float – but it may not be ethical or optimal to do this Controlling disbursements Zero-balance account Controlled disbursement account Investing Cash Money market – financial instruments with an original maturity of one-year or less Temporary Cash Surpluses Seasonal or cyclical activities – buy marketable securities with seasonal surplu