Optimization of the company's cash flow

DHS and by that we realize that the company is able to cover the financial charges of the overdraft if they get to pay
the amount in cash.
After merging the new treasury with the old one, this equilibrium situation of the company changes its behaviors and
fact; a sort of synergy appears when the two treasuries gather one financial policy. The synergy between the two
treasuries appears when we re-calculate the two financial charges of the both treasuries. The BU1 treasury has a
financial costs of almost 1 873 561.19 DHS, although, with the integration of the new treasury BU2, this amount will
increase seeing that the company will need an extra overdraft line so that the company could make transactions. In
fact, the extra charges of this new supplier will be supported on the behalf of the old activity of the company but in
return, a financial gain will be added to the company’s account.
2. Global treasury’s issue: Optimization
The previous chapters explained how the company confronts two financial facts in order to make new treasury inside
the company active and well managed. Though, this integration of each treasury inside the company’s financial
treasury requires from the company a high level of cash management in a way that the company would manage
both; he banks and suppliers.
IWACO contracts two banks for managing the original activity; BU1, two banks to manage the company’s cash flows
outside and inside bank accounts (cash or overdraft). Also, the financial gain the company realizes from its supplier
should be manage in a way that both the banks and the supplier stay a financial equilibrium without disturbing the
company’s financial stability. The following chart explains how the company’s situation in front of this situation:
Figure n°19: Treasury’s Issue after BU1 and BU2 merged
The company, in order to solve the optimization problem of treasury, is called to establish a certain financial strategy
that could realize the equilibrium inside the company. When the other bank was added to the company’s accounts;
a specific account for the BU2, extra charges were added for the company, and so the company has to make an
arbitration between the two treasuries.
An extra analysis shows that after comparing the two companies’ treasuries, we could notice that with BU2 added;
the company was able to realize some extra profit and have space for more purchases and overdraft lines. Although,
the arbitration in this term is based on the decision that the company will make to compare between the purchases
between suppliers BU1 or BU2, and that is how the company could optimize its treasury.
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