What are some tools that companies have to manage their (net operating) working capital? Provide examples of inventory and receivables management techniques. What is the Cash Conversion Cycle and why is this a useful metric? Are there risks if this is too low?
Subject
Business Finance
Question
Solution Preview
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.
There are several tools which can be used to manage different components of working capital. The intersection of carrying costs and shortage costs can be used to determine the level of optimal inventory. The working capital financing policy and cash budgeting strategies can be used to manage cash. The tools of Economic Order Quantity (EOQ) and Just In Time Inventory (JIT) can be used to manage inventory levels. The cash discount offered to...
Related Homework Solutions
Behavioral Theories of FDI (210 words)
$10.00
Behavior
Behavioral Theory
FDI
Market
Globalization
MNC
Internationalization
Parent Company
Competition
Risk Adjustment in Capital Budgeting Analysis (260 words)
$8.00
Discount Rate
Risk Adjustment
NPV
Capital Budgeting Analysis
Economic Reform
Cash Flows
Economy
Finance Questions
$65.00
Business
Finance
Shares
SELE
Gain
Loss
Stock
Profit
Black Scholes OPM
Dividend
Striking Price
Treasury Bills
Volatility
Risk Adjusted Performance
Rate
Return
Contract
Soybeans
Oil
Business
Finance
Shares
SELE
Gain
Loss
Stock
Profit
Black Scholes OPM
Dividend
Striking Price
Treasury Bills
Volatility
Risk Adjusted Performance
Rate
Return
Contract
Soybeans
Oil
Return to homework library