Optimization of the company's cash flow

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When the company is able to predict with certainty its timelines in a way that it corresponds exactly to its forecast of receipts, the Treasury management may be optimal. Indeed, the costs could be reduced to a minimum since it will not need to hold liquid assets low performance - cash-, or have means of long-term financing exceeding those which are essential - the Working Capital Fund. However, the forecasts are in reality, uncertain. Combining with forecasts of cash a probability, managers can estimate the risk of technical insolvency and deduce a safety margin. This safety margin is composed of a steering wheel of cash and a positive working capital fund. The value of the Working Capital Fund and the level of cash are interdependent. A company that finances all its current assets net of the liabilities by long-term capital less will need cash if it had financed with short-term credit. The choice of the means of financing of current assets and the share of liquid to maintain assets are closely linked. As well as in theory. The volume of permanent funds for the financing of current assets affects the liquidity of the company: working capital is the expression of this liquidity. However, over the restraint of funds is important and less the deal is profitable, ceteris paribus. Similarly, more detained cash is strong and more company's security is guaranteed, but the return on assets is weakened even. The objective of the financial manager is therefore to define a balance between liquidity and profitability. Also, to increase the margin of safety of the company, it can only increase the proportion of its cash, or extending the maturity of its debt. These two actions affect the profitability of the company. This vision’s resulted in the level of the cash management to find an optimum balance guarantee of solvency. Financial balance, on the one hand, between jobs and the resources of the Working Capital Fund is the essential criterion of analysis. Monetary balance, on the other hand, between input and output of cash flows whose cash is the warranty. In fact, the problem of the cash management arises in other words. Contrary to common opinion the objective of profitability does not preclude the maintenance of liquidity. The optimum lies in the joint improving the security and profit, which represents the contents of the policy's cash. Cash policy combines the constraints of safety and profitability by minimizing the volume of monetary assets. A company whose cash fluctuates continuously slightly around zero indicates, all other things being equal, than those responsible: The good management of Cash-Flows Integrate with efficiency the profitable stable funds applied Evaluate with exactitude the needs of financing Best negotiation of bank’s conditions We have shown that without disappearing totally uncertainty receipts and disbursements can be significantly reduced and is no longer warranted, at any rate, the detention of a "mattress" of liquidity. Knowledge of the behavior of the cash flows that pass through the undertaking, i.e. changes in the bank balance, is above all a problem of information. The search for this information is available to all firms. The bank loans of “Repairs” for urgencies; short term and small amount, correct the mistakes taken on the level of the predictions related to the synchronization of the Inflows and Outflows of funds. The rational uses of these loans need a special attention in a way that they could be adapted to the needs of the company, in addition of the conditions of the bank account. Cash policy, moreover, confirms that profitability is the pledge of liquidity for a certain due term. The cash balance is unstable. The business daily questioned its solvency. Such small business that hires a framework "too expensive" will adversely affect its liquidity. Such other average firm will file its balance sheet for having accepted a too ambitious contract, in the view of its possibilities. Such large firm will be absorbed to have exaggerated the use of suppliercredit. The deadline is daily. We have tried to show that the control of this situation is not only by the control of changes in the bank balance but also monitoring of the operative events for cash flows: Page 120 of 124
Investment and its financing, Training and the allocation of cash flow Control the variation of the value of the currency. We therefore meet the objectives of the financial function: Ensure the collection of the resources needed for the operation and development of the firm Control the allocation of funds and Results policy The imperative of profitability originates from the cost of holding capital. Any applied fund, regardless of the nature, fixed or circulating involves immobilization of funds, own or borrowed for a shorter or longer duration. Thou, any capital funds has costs: explicit costs whenever the company needs to service the corresponding capital providers and opportunity costs to the product that the company could have made the alternative employment. The entrepreneurial activity therefore has meaning only if it earns its jobs sufficient resources to cover its costs. In other words, profitability is the condition of the liquidity of the company. Profitability and liquidity vary in the same direction. The detention of significant liquidity, not more than a positive working capital, is not a guarantee of safety. Being insolvent means controlling all aspects of the evolution of the financial position and results in a simultaneous maximizing profitability. Thus the optimal cash management businesses leads to the synthesis of all the financial problems facing the firm. This global view of financial activity leads to a system approach to cash. Page 121 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
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Either they consist on interest or
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(a) Economies of scale in the deten
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Type of Risk Analyze the Risk Evalu
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They may have originated an investm
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I. PRESENTATION OF THE ANALYSIS MOD
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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 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: THE CONCLUSION Page 119 of 124
Page 123 and 124: BOOKS: http://tel.archives-ouverte
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Optimization of the company's cash flow

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