tailieunhanh - Bài giảng Management theory and practice Financial: Chương 18

Cùng tìm hiểu "Bài giảng Management theory and practice Financial: Chương 18" với các vấn đề chính như: Cash Management; A/R Management; Inventory; Economic Order Quantity. Mời các bạn cùng tìm hiểu và tham khảo nội dung thông tin tài liệu. | Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-3 Corporate Valuation and Current Asset Management Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-4 Topics in Chapter Cash Management A/R Management Inventory Economic Order Quantity 4 1 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-5 Goal of cash management Cash is a non-earning asset, ., not having any return for keeping. To have sufficient target cash balance on hand to conduct business. Cash can provide the necessary financial slack for firms to take various opportunities. 5 7 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-6 Reasons for holding cash Transactions: Must have some cash to pay current bills. Precaution: “Safety stock.” Lessened by credit line and marketable securities. Compensating balances: For loans and/or services provided. Speculation: To take advantage of bargains, to take discounts, and so on. Reduced by credit line, marketable . | Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-3 Corporate Valuation and Current Asset Management Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-4 Topics in Chapter Cash Management A/R Management Inventory Economic Order Quantity 4 1 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-5 Goal of cash management Cash is a non-earning asset, ., not having any return for keeping. To have sufficient target cash balance on hand to conduct business. Cash can provide the necessary financial slack for firms to take various opportunities. 5 7 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-6 Reasons for holding cash Transactions: Must have some cash to pay current bills. Precaution: “Safety stock.” Lessened by credit line and marketable securities. Compensating balances: For loans and/or services provided. Speculation: To take advantage of bargains, to take discounts, and so on. Reduced by credit line, marketable securities. 6 6 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-7 Cash Management Techniques Increase forecast accuracy to reduce the need for a cash “safety stock.” Hold marketable securities instead of a cash “safety stock.” Negotiate a line of credit (also reduces need for a “safety stock”). 7 9 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-8 Ways to Minimize Cash Holdings Synchronize inflows and outflows. Use a remote disbursement account. Use lockboxes. Insist on wire transfers from customers. 8 8 Float The difference between the balance shown in a firm’s chequebook and the balance on the bank’s records. Disbursement float (+): Cheques written by a company that have not yet cleared. Collection float (-): Cheques already deposited that have not yet been cleared. Net Float: disbursement float - collection float. Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-9 Copyright © 2011 by Nelson Education Ltd. All rights reserved. 18-10 Using .