James Sagner

Working Capital Management (eBook, PDF)

Applications and Case Studies

• Format: PDF

Produktbeschreibung

Stay liquid, think global, and better manage resources with this authoritative guide Working Capital Management is a comprehensive primer on keeping your business financially competitive in the face of limited access to short-term funds. With detailed insight applicable to each phase in the business cycle, this authoritative guide helps managers revamp current practices for more efficient use of assets and liabilities, including more stringent monitoring and planning of collections, disbursements, and balances. Readers will learn how to minimize investments in idle resources, and how to maximize the use of forecast data to better identify risk and the optimal use of available funds. Case studies illustrate the practical applications of the ideas presented, with particular attention given to cash budgeting, forecasting, banking relationships and other common scenarios with specific requirements. Managing a company's short-term resources is both an art and a science. Effectively maintaining funds for ongoing activities - and keeping those funds liquid, mobile, and available - is a masterful skillset lacking in business. Working Capital Management offers practical advice for managers in this challenging position, providing guidance that helps them: * Learn the specific metrics at work in capital management, and the problems that they can cause * Improve cash management with robust fraud protection and better use of short-term instruments * Manage the issues that arise from accounts receivable, inventory, payables, information management, and international sources * Develop an effective management system for key points in the working capital cycle The recent liquidity crisis in the U.S. has thrown the spotlight onto those companies that have adjusted well to credit contraction and the weakened economy, and these success stories - some of which are noted in the book - demonstrate that a positive business outcome can be accomplished. Working Capital Management provides a clear look at a complex issue, with practical, actionable, sustainable advice.

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 304
• Erscheinungstermin: 21. August 2014
• Englisch
• ISBN-13: 9781118933855
• Artikelnr.: 41462486

Autorenporträt

JAMES S. SAGNER, PHD, has been a Professor at the University of Bridgeport and has taught executive education in the finance program at the University of North Carolina. He is a Principal of Sagner/Marks, a treasury management consulting firm with offices in White Plains, New York, and of Bank Credit Training Partners. He is the author of Cashflow Reengineering, Financial and Process Metrics for the New Economy, and Essentials of Working Capital Management, and coauthor of Essentials of Managing Corporate Cash.

Inhaltsangabe

Preface xiii Acknowledgments xv Chapter 1: Concepts in Working Capital
Management 1 Working Capital Concepts 2 Improving Working Capital
Management 5 The Significance of Working Capital 8 Cost as the Working
Capital Issue 9 Applying These Ideas to a Real Business: Best Buy 12
Summary 15 Notes 16 Chapter 2: Working Capital Ratios and Other Metrics 17
Ratio Analysis 18 Other Ratios and Their Application 22 Other Metrics 23
Benchmarking 27 General Problems in the Use of Ratios and Metrics 29
Summary 32 Notes 32 Chapter 3: Cash--Management and Fraud Prevention 35
Forms of Cash 36 Paper Transactions: Lockboxing 38 Paper Transactions:
Depository Accounts 40 Paper Transactions: Controlled Disbursement 41
Electronic Transactions 43 Float and Cost Issues 46 Summary 49 Notes 49
Chapter 4: Cash--Credit and Short?]Term Financial Instruments 51 Developing
a Short-Term Forecast 52 Cash Budgeting 53 Credit Financing 55 Short-Term
Investments 58 Summary 63 Notes 63 Chapter 5: Managing Bank Relationships
65 The Changing Financial Landscape 66 Bank Relationship Management 66 Cash
Mobilization in a Multibank Network 68 General Terms of Credit Facilities
71 Specific Terms in Credit Facilities 72 Ongoing Bank Relationship
Concerns 75 Summary 77 Notes 78 Appendix to Chapter 5: Selecting Noncredit
Banking Services 81 The Request for Proposal 82 RFP Evaluation 85 Chapter
6: Accounts Receivable and Working Capital Issues 89 Elements of
Receivables Management 90 Float Opportunities in Managing Receivables 91
Receivables Cycle Monitoring: Ratios 93 Receivables Cycle Monitoring: The
Aging Schedule 94 Sales Financing 96 Credit Reporting 97 Terms of Sale 99
Invoice Generation 100 Asset-Based Financing 102 Debt Collection Agencies
103 Summary 104 Notes 104 Chapter 7: Inventory and Working Capital Issues
107 Elements of Inventory Management 108 Inventory Cycle Monitoring: Ratios
109 Inventory Cycle Monitoring: Metrics 110 The Purchasing Function 112
Analyzing Purchasing Activities 114 EOQ and JIT 116 Work-in-Process 118
ABF: Inventory Financing 120 Summary 123 Notes 123 Chapter 8: Payables and
Working Capital Issues 125 Elements of Payables Management 126 Payables
Cycle Monitoring: Ratios 127 The Accounts Payable Function 128 Payables
Using Internal Processes 131 Payables Outsourcing 133 Check Payments in a
Comprehensive Payables Environment 135 Payroll Disbursements 136 Summary
138 Notes 139 Chapter 9: International Working Capital 141 Capitalism Goes
Global 142 The Financing of International Transactions 144 The Foreign
Exchange Markets 145 Country Risk Analysis 151 Other Significant Issues in
International Working Capital 152 Cultural and Corporate Practices
Affecting Working Capital 154 Summary 156 Notes 156 Chapter 10: Information
and Working Capital 159 Information Technology 160 Bank Information
Technology 161 Internet Bank Technology 165 ERP: An Alternative Approach
169 Choosing Working Capital Information Systems 171 Summary 175 Notes 176
Chapter 11: Managing the Working Capital Cycle 177 Risk and Working Capital
178 Traditional Risk Management 179 Enterprise Risk Management 179 The ERM
Process 180 Efficiency and Working Capital 181 Working Capital and
Liquidity 183 Suggested Actions 185 Developments in Working Capital
Management 189 The Gizmo Deal: How Delays Turn Profits into Losses 190
Summary 192 Notes 192 Chapter 12: Introduction to Working Capital Cases 195
Sequence of the Cases 195 The Concept of the Working Capital Case 196 Case:
Widget Manufacturing 198 Suggested Solutions 207 Note 214 CASES ON WORKING
CAPITAL MANAGEMENT 215 Case 1: Dinner Bell Hotel 217 Cash Flow Issues 217
Alternative Actions 219 The "Raw" Data 220 Questions 220 Case 2: Koala Fun
223 The Partners' First Success 223 Financial Concerns 224 Borrowing Issues
225 Working Capital 225 Final Thoughts 226 Questions 226 Case 3: Miller
Building Supplies 229 Joseph Miller Starts MBS 230 Variations in Working
Capital Requirements 230 A Banker's Assistance 231 Questions 231 Case 4:
Office Smart 235 The Business of Office Smart 236 Financial Issues 237
Questions 238 Case 5: Quacker Cracker 241 The Attitude toward Debt 242
Financial Planning 242 Questions 244 Case 6: Young Brands 245 Changes in
YB's Global Marketing Strategy 246 Forecasting Considerations 247 Working
Capital Issues 247 Financial Issues 248 Questions 248 Appendix I: Basic
Financial Concepts 251 Appendix II: Websites of Working Capital
Organizations 257 Glossary 261 About the Author 279 Index 281