公司理财(双语)working capital公司理财(双语)working capital.pptVIP

Net Working Capital - Current assets minus current liabilities. Often called working capital. Cash Cycle - Period between firm’s payment for materials and collection on its sales. Target Cash Balances Target cash balance – desired cash level determined by trade-off between carrying costs and shortage costs Optimal cash balance = sqrt(2*25*5,000,000/.04) = 79,057 Average cash balance = 79,057/2 = 39,528.50 Opportunity cost = 39,528.5(.04) = 1581.14 Number of transactions = 5,000,000/79,057 = 64 Trading cost = 64(25) = 1600 Total cost = 1600 + 1581.14 = 3,181.14 inventory management Just-in-time inventory management ABC * 3 Collection Policy Sample aging schedule for accounts receivable 22 24 23 * 3 * 5 * 7 * 8 * 10 * 9 * 17 * 24 * 25 * C = cash balance R = interest rate on marketable securities F = fixed trading cost T = total amount of cash required during the planning period If your students have had calculus, you can illustrate that this is nothing more than an cost minimization problem: Take the first derivative of total cost with respect to C, set it equal to 0 and solve for C. (R/2) - (TF/C2) = 0 R/2 = TF/C2 C2 = 2TF/R 25 * Optimal cash balance = sqrt(2*25*5,000,000/.04) = 79,057 Average cash balance = 79,057/2 = 39,528.50 Opportunity cost = 39,528.5(.04) = 1581.14 Number of transactions = 5,000,000/79,057 = 64 Trading cost = 64(25) = 1600 Total cost = 1600 + 1581.14 = 3,181.14 Opportunity cost and trading cost are not equal because the optimal balance was rounded to whole dollars and the number of transactions was rounded to a whole number. 26 30- * Chapter 20 Principles of Corporate Finance Ninth Edition Working Capital Management Topics Covered Inventories Credit Management Cash Working Capital Current assets and liabilities for U.S. manufacturing firms (2nd qtr. 2006)…$ billions Balance Sheet Model of the Firm How much short-term cash flow does a company need to pay its bills? Net Working Capital Current Assets Fixed Assets 1. Tangible 2. Inta