Optimization of the company's cash flow

Statistical observation confirms the reduced scope of the concept of working capital as a criterion of solvency and
more generally financial equilibrium of the firm.
2.1 - THE LINK BETWEEN THE VALUE OF THE WORKING CAPITAL FUND AND THE SECTOR OF ACTIVITY PROVES TO
BE FAIRLY LOOSE.
This observation occurs both in the work of MADER than in those of the “Caisse Nationale des Marchés de l’Etat”.
Certainly, the Working Capital Fund appears different on average from one sector to another, but within a single
industry the dispersion of values remains very strong (from 53% to 187%). Cannot therefore speak of a 'normal'
working for a specific sector capital.
2.2. THE WORKING CAPITAL FUND ALSO VARIES WITH THE SIZE OF THE COMPANY, VALUED BY THE TURNOVER.
However it is impossible to identify a link between the growth of the firm and the Working Capital Fund. In any sector
we notice regardless of the size of the company, measured by turnover, a growth or a continuous decrease in working
capital.
The limits of the concept of working capital as an indicator of balance can be understood as follows: working
capital reveals the importance and the composition of the stable financial tools that the company affected
to finance the operating cycle.
It is therefore clear that the amount of the working capital of a company varies with its sector of activity and its sales
business but also from one company to another. The financing of the operation and growth is a matter of choice to
each contractor.
Face to comparable constraints (operating cycle, growth, markets, banking system, etc.) makers respond in a
personal and original manner. Therefore, it cannot be said a priori by a simple calculation if such working capital is
sufficient or not because needs vary according to turnover, the economic circumstances of the time, the nature of
the activity, and in the same branch of activity according to the commercial policy of the leaders. The study of the
cash of a firm therefore implies the joint study of the working capital and working capital needs Fund
C - THE CONTRIBUTION OF THE CONCEPT OF WORKING CAPITAL NEEDS.
At the inadequacy of the notion of 'found' working capital in the balance sheet, financial analysts have sought to
determine the "optimum" amount of permanent funds to the regular functioning of the company.
1 - THE DIFFERENT CONCEPTIONS OF CAPITAL FUNDS AND EXPRESSION OF REGULATORY CAPITAL REQUIREMENTS.
The evolution of the designs demonstrates progress in the assessment of regulatory capital.
1.1 – THE TOTAL WORKING CAPITAL, OR GROSS WORKING CAPITAL.
It is the widest concept since it encompasses all of the current assets. From the point of view of the liquidity of the
firm, total working capital measures the importance of resources requires the company to finance all of its operating
expenses when it has no possibility of recourse to short-term credit. In addition, to ensure the finance of its
operations the company has short-term capital that him are made by its customers (instalments), its suppliers,
various and its bankers. In front of and the inadequacy of this conception of operating needs, it introduces the
concept of "exposure".
1.2 - THE INVENTORY TOOL STOCK
Page 26 of 124