Optimization of the company's cash flow

TABLE OF CONTENTS
Foreword ........................................................................................................................................................................ 5
Author ............................................................................................................................................................................. 8
AKNOWLEDGMENTS ...................................................................................................................................................... 9
LIST OF ACRONYMS AND ABREVIATIONS .................................................................................................................... 11
LLISTS OF TABLES AND FIGURES .................................................................................................................................. 12
LIST OF ANNEXES .......................................................................................................................................................... 14
TABLE OF CONTENTS .................................................................................................................................................... 15
ABSTRACT ..................................................................................................................................................................... 19
KEY WORDS .................................................................................................................................................................. 19
GENERAL INTRODUCTION ............................................................................................................................................ 20
FIRST PART: THEORETICAL FRAMEWORK .................................................................................................................... 22
CHAPTER 1: FINANCIAL EQUILIBRIUM OF THE FIRM AND CASH-TREASURY .............................................................. 23
SECTION I: THE CONTROL OF THE FINANCIAL BALANCE ............................................................................................. 23
I. The working capital fund, indicator of the financial balance .................................................................... 23
A. The working capital fund, tool of financing the cash requirements ........................................................... 23
1. The determination of the working capital fund ..................................................................................... 23
2. The working capital fund is the measure of the trade-off between profitability and solvency ............ 24
B. The working capital fund is not a good indicator of solvency .................................................................... 25
1. The meaning of working capital fund is not a good indicator of solvency…................................................... 25
2. The limits of the meaning of the working capital fund is drawn from statistical observation ........................ 26
C. The contribution of the concept of working capital need .......................................................................... 26
1. The different conceptions of capital funds and expression of regulatory capital requirements .................... 26
2. Calculation of working capital needs ............................................................................................................... 27
II. Analysis of the liquidity of the firm by the method of ratios .................................................................... 32
A. Ratios of financial security .................................................................................................................. 32
1. The so called ‘Solvency”, or long term financial security ............................................................. 32
2. The so called “Liquidity-Ratios” ................................................................................................... 35
B. Limitation of the method of ratios in the assessment of financial security ....................................... 37
1. The limits of the descriptive value method of ratios ................................................................... 37
2. The limits of the explanatory value of the method of ratios ....................................................... 37
3. The limits of the normative value of the method of ratios .......................................................... 38
4. Limits of the predictive value of the method of ratios................................................................. 39
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