Optimization of the company's cash flow

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and duration of the necessary transitional capital. Indeed, the fixed part of the circulating capital must be financed by stable resources; and the variable part requires funding for its duration. 2 – DEFINITION OF THE BU1 AND THE BU2: Since the existence of the company on the market, they used to be distributer of one telecommunication operator that is INWI or WANA CORPORATE earlier. Since then, all type of transaction and commercial businesses were related to this only supplier for two reasons, for being the other supplier full from having new distributers, and two, the contract that has been signed by the two part was clear in the fact that any distributer of WANA CO. has no right to add an extra supplier to his pocket especially the competition. From that time until now, IWACO based all their investments and profits on the BU1. But then when the activity started to flow up a bit, and like any other company, they decided to add an extra investor or producer to which they’ll play the same role of being a distributer that is BU2. These fact gather the definition and analysis of the IWACO’s nature in the telecommunication market. To conserve the confidentiality of the company to its inside information, the BU1 and BU1 will be used as the two nick names given to the two suppliers. SECTION 2: EVALUATION OF THE CASH TREASURY’S SITUATION OF THE FIRM: A. ARBITRATION OF THE FINANCIAL POSITION OF THE COMPANY The company’s investment policy is related to the legal conditions that relate the whole firm to the suppliers. The fact behind is that each supplier avoids competition through though the contracted distributer, for that, the decisions related to the investment part are most often tight or limited to small activities or even more, activities presented in the market under the suppliers’ image. The existence of INWI as an official supplier and provider was for quite a long time. The only supplier, and the over than 80% of the company’s turnover, that made the firm’s life and surviving key of the market depends on that supplier. For a different fact and actions, this decision of keeping it the only one was on the best regard of the company’s financial return and on the other side; reputation on the market as the third operator. The company’s financial situation depends on the sales that the company realizes from selling the INWI’s products, either the High-Tech. products or the telecommunication service. In fact, financial situation is represented as the cash treasury of the company that is managed through the financial direction or the company’s Treasurer. The following chart will represent the form and definition of the Cash flows inside the firm. Table 19: Simulated Treasury’s Cash plan 2016 Page 108 of 124
This chart is reserved to make clear the composition of the company’s turnover and how it’s formalized. As explained in the previous chapters, the company makes profit from selling high-technologies product and telecommunication services. Although, this financial equilibrium is the result of a financial study, therefore, we’ll work on explaining the financial composition of this capital: Used Overdraft Days Starting Balance Turnover Inflows WANA Commission Exploitation Charges INWI Purchases INWI Purchases : Cash Final Balance Interest Amount Cash Gain Overdraft : Credit Line The company contracts loans’ lines from banks or as we call it the overdrafts with which they execute their activities. As it was mentioned in the previous chapters, this operation of buying products from the supplier by loans makes the company pay extra financial charges on a rate of 5.35% of interests’ rate, and the amount of these financial charges is calculated on the Final Balance. The final balance is calculated on the inflows minus the outflows. The inflows are generally the Turnover, WANA Commissions, and all the incomes that the company makes from the activity (sales and all…). The outflows are the exploitation charges (taxes, added value, salaries, CNSS…), INWI purchases; which is the major part and essential one of the company’s activity, it allows the Company to have 0.5% gained cash on the paid amount of these purchases, otherwise the company pays 5.35% of the amount as financial charges that are interest, and under a credit line (overdraft) of 33.000.000 DHS in both contracted banks of the company. Knowing that the bank doesn’t work on vacation nor in the weekends, which leads to conclude that the company pas sometimes extra charges for the unworked days. The graphical presentation of the balance allows to the financial manager to analyze the situation of the overdraft’s consumption for the company. The result is, more the company uses the overdraft to cover its charges the more it gains financial advantages from banks and vice versa. The disadvantage is when the company doesn’t used the whole overdraft during a transaction in a month or less means that the company is supporting extra financial charges for no reason. The thing is, each time the company tries to maximize the consumption of the overdraft for more than once in a month, and the result is that the company realizes more profit than it could do in normal cases. This following chart will show us the situation of the company’s financial flows using the company’s bank overdraft. 5 000 000,00 DH 0,00 DH -5 000 000,00 DH -10 000 000,00 DH -15 000 000,00 DH -20 000 000,00 DH -25 000 000,00 DH -30 000 000,00 DH -35 000 000,00 DH -40 000 000,00 DH Figure 16: IWACO'S DAILY BALANCE Page 109 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
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Manage cash consists, in the tradit
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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-
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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 and 104: 2.2 - The influence of investment o
Page 105 and 106: There are thus two sets of 12 month
Page 107: S = The starting stock (possibly) +
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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