Optimization of the company's cash flow

S = The starting stock (possibly)
+ Purchases of the month
- Month expressed at the purchase price sales.
Let’s assume that the margin is 20% of the selling price.
The next figure summarizes these results and gives the forecast evolution of the capital circulating for the year
2016.
Balance Jan. Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average
Stocks -0,9 -1,54 -0,15 -0,94 -0,47 0,12 -0,19 0,23 1,13 1,44 1,92 2,39 0,25
- - - -
0 0 -1,1 -1,99 -3,06 -3,99 -4,99 -5,89
Clients
6,99 8,04 9,03 10,09
-4,60
- - - -
0 0 -1,16 -1,92 -2,93 -3,95 -4,87 -5,9
Suppliers
7,26 8,64 9,95 11,18
-4,81
Working
Capital
-0,9 -1,54 -0,21 -0,87 -0,34 0,16 -0,07 0,22 0,86 0,84 1 1,3 0,04
Table 18: Monthly Forecast Evolution of capital circulating for the year 2016.
This next chart, reproduces fluctuations of the mass of capital circulating in the fiscal year 2016.
1,5
1
0,5
0
-0,5
-1
-1,5
1 2 3 4 5 6 7 8 9 10 11 12
Seasonal Variation of Working
Capital
The average of Working
Capital
-2
Figure 15: Seasonal variation of the Working Capital
This presentation of the problem of circulating capital investment allows a double simulation: first on the
components of circulating capital, then on the forecast monthly turnover.
So can we determine the volume of the funds to invest in capital flowing to cope with expansion. Then, given its own
financial possibilities, those of the monetary and financial markets, the company can determine the pace of growth
it can assume and the rate of inflation that it can bear. Finally, this method of analysis of the evolution of the
circulating capital during the operating cycle reveals: on one hand, the amount of permanent capital, the amount
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