Optimization of the company's cash flow

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However, once IWACO achieved neutral (dead center), it sees its cash flow increase faster than those of the other two companies. (b) Death-point of cash and risk of insolvency. Figure n°14 : Death-Center of IWACO All fixed costs of a business do not correspond to outputs of Fund; same as a share of income may stay a while in the form of credit-clients. Thus, depreciation expense are not output cases. The following chart shows for example that if on the total amount of the fixed costs, 30 000, represent allocations to amortization of cash neutral is located at a level of production of 12 500 units. Figure n°14 : Death-Center of IWACO Neutral of cash does not replace a cash budget but can appreciate the risks of insolvency arising from the operation. Thus, the company would have a volume of fixed costs as it would suffer losses in period of low activity but would realize significant benefits during periods of high activity where it can be solvent during these losses, as long as the outputs «fixed» cash are small enough to allow the company to cross the dead point of cash or as we call it “Dead Center” or “Neutral”. Therefore, the assessment of the risk of insolvency by neutral of cash indicates a business conditions to achieve greater benefits (and therefore a higher cash flow), is automating and increasing its leverage effect without running the danger of a cash crisis. Page 102 of 124
2.2 - The influence of investment on the cash flows through depreciation. In theory; the depreciation is a privileged tool to finance the company's expansion. Specifically it is the most important of the two sources of self-financing, the second being the undistributed profits. Any new investment will contribute to grow cash flow available to the company through additional appropriations to depreciation. (a) Tax depreciation and cash flow. Depreciation is an element of taxes’ cash flows, and can therefore be used to finance investments. However, it can be shown that the practice of ‘depreciation” allows the company to have a monetary mass replacement of technical capital needs. Representing an investment of price P, in 10 years in a linear fashion, and value depreciable residual zero at the end of the tenth year. If revenues are sufficient, the available money supply will be: P/10 during the second year, 2P/10 during the third…etc., 9/10 for the tenth. These funds may be used for any use in fixed capital or circulating. Everything happens as if the company "could borrow from itself" an amount equal to: Apart from any consideration of updating, the money available to the firm for 10 years will be: P/10 + 2 P/10 + 3 P/10 +... + 9 P/10 = 4, 5 P. Page 103 of 124
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The Optimization of the Cash-Treasu
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FOREWORD Nor obtaining the diploma
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This project research is dedicated
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LIST OF ACRONYMS AND ABBREVIATION
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Figure n°1: Determination of the o
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TABLE OF CONTENTS Foreword ........
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SECOND PART: THE PRACTICE OF THE CA
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ABSTRACT Inside a world full of ban
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In addition, the monetary risk is a
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A good financial situation is chara
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Experience and observation prove th
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Whereas part of stocks was practica
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C = ax² + bx + c When the demand a
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The “Stocks” flow time: Average
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It indicates to what extent the rea
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RESULTS + FINANCIAL INTERESTS / FIN
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ANNUAL SALES H.T / NET FIXED ASSETS
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4 - LIMITS THE PREDICTIVE VALUE OF
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This opposition led to the establis
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It will similarly be to calculate t
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However, this document synthesizes
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The cash has then for each day (or
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(b) SHORT-TERM DATA: Beyond the ver
Page 51 and 52: These three presentations are well
Page 53 and 54: Manage cash consists, in the tradit
Page 55 and 56: Anyway many authors have developed
Page 57 and 58: Either they consist on interest or
Page 59 and 60: (a) Economies of scale in the deten
Page 61 and 62: Type of Risk Analyze the Risk Evalu
Page 63 and 64: They may have originated an investm
Page 65 and 66: I. PRESENTATION OF THE ANALYSIS MOD
Page 67 and 68: II. DATA COLLECTION TOOLS For what
Page 69 and 70: Part II: The Practice of the Cash-
Page 71 and 72: Page 71 of 124
Page 73 and 74: 8. Development: Currently, this dep
Page 75 and 76: B. Dynamical competition While the
Page 77 and 78: 1.2 - The existence and the importa
Page 79 and 80: December - 2014 0,00 DH 1 599 918,6
Page 81 and 82: (a) Four sources of costs can be id
Page 83 and 84: 20 000 000,00 DH Figure n°5: INFLO
Page 85 and 86: Therefore; when the company realize
Page 87 and 88: implementing rules are poorly known
Page 89 and 90: Regardless of the method chosen, it
Page 91 and 92: date, but whose amount is known (e.
Page 93 and 94: 30% of the Turnover in the fifth pe
Page 95 and 96: OVERDRAFT’S COSTS = [33.000.000 D
Page 97 and 98: 3 ° - The Customer-Loan Control Co
Page 99 and 100: Profitability is the guarantee of t
Page 101: (b) The Positive Effect. Swelling o
Page 105 and 106: There are thus two sets of 12 month
Page 107 and 108: S = The starting stock (possibly) +
Page 109 and 110: This chart is reserved to make clea
Page 111 and 112: operation wasn’t beneficial enoug
Page 113 and 114: 50% is paid to the supplier 14 days
Page 115 and 116: Figure n°18: Daly Balance of IWACO
Page 117 and 118: Regarding the previous chapters, an
Page 119 and 120: THE CONCLUSION Page 119 of 124
Page 121 and 122: Investment and its financing, Trai
Page 123 and 124: BOOKS: http://tel.archives-ouverte
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