Optimization of the company's cash flow

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d. Clients’ modalities: This case concerns the condition of payment that the firm IWACO discuss with its clients in order to have the cash available before the deadline of paying the BU2 supplier. Also, in order to get the attraction of clients and to facility the profit for the firm, the payment wasn’t decided in one shot but more like many shots, reserving the minimum amount in the short period in order to facility the transactions for the company. 30% on the same day, not more than 24 hours. 10% in ten days in order to reserve to trust with clients and to insure the financial liquidity inside the firm. 60% and the reason behind is to eliminate the pressure on the clients and in other hand to insure the company’s liquidity on the exact date before paying the big supplier; BU2 supplier. e. Beneficial margin: Like with any supplier, a beneficial margin is reserve for the distributers that work on selling the mother company’s products, and the reason behind is that the prices are usually different and not similar in order to avoid the destruction between supplier and client. For what is related to the supplier’s payment modalities, the condition are different but still related to the one of clients. The following chart will represent the conditions contracted with the BU2 supplier: Table n°22: Simulated purchases merchandises for BU2 and the financial Gain of supplier’s payment Similar conditions of the clients but different in terms of date and period. The criteria of these condition are based on being in earlier date than the one contracted with clients, the fact that the company should have liquidity before the deadlines of paying the suppliers. Therefore the contracted conditions were like following: a. Amount T.T.C.: These amounts are generally fixed a month before selling to clients, and so that the company could have the merchandise a month before the day f selling it. b. Supplier modalities: The basis of restructuring the data inside this angle of the operation is so that the company could have liquidity reserved in the cash-treasury of the company. Page 112 of 124
50% is paid to the supplier 14 days after buying the merchandises 33% is paid in 30 days. 17% is paid in a month and two weeks. c. Financial gain: The new contracted supplier “BU2”, allows the company to collect a financial margin if the paid amount were paid in cash also, but this time, the gain is 3 types: 1.5% if the company paid in cash in 14 days after buying the products 1% if the company paid in case in 33 days after buying 0.5% if the company paid in 45 days The second step after elaborating the basic conditions of the company, we’re required to elaborate a financial situation or a plan treasury of the BU2 activity, and the result is as followed: Table n°23: Cash Treasury Balance of BU2 This chart is a sample of the treasury balance that we could have at the end of elaborating the cash treasury of BU2, and the calculation were based on the two previous tables. Yet, this final balance should give an approximate image of the company in order to have an idea of the real estate of the company’s financial estate, therefore, the following chart is a graphical presentation of the final balance of the BU2 treasury in order to evaluate its financial situation inside the company. In the next paragraph we’ll work on analyzing the financial situation of the company’s new treasury BU2. 2. Evaluation of the financial situation of the firm after BU2 Add to the elaboration of the final balance, the evaluation of the company’s new treasury must be evaluated using the financial charges that the company pays for the overdraft that allows it to have the purchases in first place, and then resolving the difference between the financial charges and the profit. 15 000 000,00 DH 10 000 000,00 DH 5 000 000,00 DH 0,00 DH -5 000 000,00 DH -10 000 000,00 DH Figure n°17: Daily Balance of BU2 Page 113 of 124
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Page 3 and 4:
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
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Either they consist on interest or
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(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 and 108: S = The starting stock (possibly) +
Page 109 and 110: This chart is reserved to make clea
Page 111: operation wasn’t beneficial enoug
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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