Optimization of the company's cash flow

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(b) The improvement of profitability is a Cash Generator Investment should improve the profitability of the firm and thus the liquidity term. The report 'ROI' (return on investment) reveals the cause of changes in cash flow: Change to margin, and Speed of investment. Therefore, the equation is written like this: ROI = ((BENEFIT / TURNOVER) X (TURNOVER / INVESTMENT (ASSETS)) Finally, note that the simple growth of the turnover may be beneficial where the company can use even temporarily surplus liquidity on an interim basis at its disposal. These phenomena occur regardless of the size of the company. But in the group T-man Holding and like any other group of companies, the distribution of dividends comes further inflate the available cash flow. c) Self-Financing in the Group of Company IWACO / T - MAN HOLDING. The distribution of dividends is a source of liquidity at the level of a group. Indeed self-financing of a parent corporation not only his only activity results but also distributions of profits that its subsidiaries were granted to him. In a group of companies there is a 'facelift' dividends at the end of each fiscal year. It may be interesting to 'govern the distribution of dividends' so that the desired sum is the place wanted at the time. Once formed, the cash flow is immediately reinvested in various jobs for a shorter or longer period. Any misallocation translates into reduced the profitability but also by cash flow at more or less short term. It is therefore for the company to control this "permanent investment's cash flow. B. INVESTMENT OF CASH FLOWS 1. Cash-Treasury and Investment Policies, BU1 and BU2 1.1 The influence of the firm’s activity on the circulated capital Few companies escape a variation seasonal or cyclical activity. For IWACO, this translates either cash in the narrow, or sometimes by a bloated cash. Seeing the typology, amount and variations, the company with very large annual variations in the activity benefits from effective banking support campaign credits as was explained earlier. Yet, the company when it handles these simulated variations, they have interest to study variations in the mass of circulating capital to better manage their financial resources and avoid any difficulty cash. Understanding fluctuations in circulating capital, is to know the evolution over time of the elements that make it up. These elements evolve as the case may be, either according to seasonality of activity (as measured by the monthly variations of turnover), or depending on the seasonality of supply (measured by the monthly pace of purchases). For that, it is recommended to calculate the seasonality of the sales and the purchase and then assess their impact on the different components of the circulating capital. These indices can be calculated as follows: *The sales seasonality Index: TSI = [(Turnover x 12 / Annual Turnover)] *The Purchasing Seasonality Index PSI = [(Monthly Purchase x 12 / Annual Purchasing)] Page 104 of 124
There are thus two sets of 12 monthly indices which can refine the accuracy taking the average over several months. The analysis of their impact on the volume of circulating capital will be analyzed for 2016 year. The company has fixed the following conditions for both providers and clients: ‣ Clients: 30% pay in cash, 10% at 30 days end of month, 60% at 60 days end of month. ‣ Suppliers: 50% are paid in 15 days, 33% at 30 days end of month and 17% in 45 days end of month. ‣ The provisional figures sales and purchases for the next 12 months, contained in table 32 below, to calculate necessary seasonal indices: Months Jan Feb. Mar. Apr. May Juin Juil. Aug. Sept. Oct. Nov. Dec. TOTAL AVERAGE Sales (millions 2,4 1,7 2,45 2,1 2 1,7 2,5 2,15 2,1 2,45 2 2 25,55 2,13 of DH) SIT 13,53 9,58 13,81 11,84 11,27 9,58 14,09 12,12 11,84 13,81 11,27 11,27 Purchase (million 0 0 15 0 8 8 4 8 11 8 8 8 78 6,5 de DH) SIP 0,00 0,00 27,69 0,00 14,77 14,77 7,38 14,77 20,31 14,77 14,77 14,77 Table n° 14: Monthly sales and seasonal indices of turnover (SIT); Monthly purchases and Seasonal Indices of Purchases (SIP). We assume that the circulating capital consists of three elements: credit customer, supplier credit and stock of goods. Let’s calculate the impact of seasonal variation of activity on the 'Credit-clients' (next figure) position: MONTHS SIT PAYMENT Cash 30 Days 60 Days TOTAL INFLOWS CREDIT BALANCE ACCUMULATION Jan. 1,13 0,34 - - - - - - - Feb 0,8 0,24 0,11 - - - - - - Mar 1,15 0,35 0,08 0,68 2,25 - -1,10 -1,10 - Apr 0,99 0,30 0,12 0,48 1,88 - -0,89 -1,99 - May 0,94 0,28 0,10 0,69 2,01 - -1,07 -3,06 - Jun 0,8 0,24 0,09 0,59 1,73 - -0,93 -3,99 - Jul 1,17 0,35 0,08 0,56 2,17 - -1,00 -4,99 - Aug 1,01 0,30 0,12 0,48 1,91 - -0,90 -5,89 - Sep 0,99 0,30 0,10 0,70 2,09 - -1,10 -6,99 - Oct 1,15 0,35 0,10 0,61 2,20 - -1,05 -8,04 - Nov 0,94 0,28 0,12 0,59 1,93 - -0,99 -9,03 - Dec 0,94 0,28 0,09 0,69 2,01 - -1,07 -10,09 - Jan - - 0,09 0,56 - - - - - Feb - - - 0,56 - - - - - Table 15: Impact of seasonality of turnover on the balance 'clients '. Page 105 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
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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 and 102: (b) The Positive Effect. Swelling o
Page 103: 2.2 - The influence of investment o
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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