Optimization of the company's cash flow

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) LIMITATIONS OF THE METHOD. This method leads to significant results when using mean values for the year in question, and not the values from the balance sheet. Indeed, does not represent that the particular situation of the day of the preparation of the balance sheet, but in no case a Average. In other words, it would be risky and dangerous to interpret a result based on values extracted from the balance sheet. But the main criticism that can be made is that this calculation assumes a perfectly regular activity over time. However, even without mentioning the firms the seasonal operation, all companies are experiencing fluctuating more or less pronounced, more or less regular cycle. Changes in sales and purchases have the effect to oscillate the working capital needs. Therefore, this method provides no knowledge of the evolution of the real needs for working capital. Therefore, it does not operate an efficient distribution of the views of the solvency between bearing (or permanent resources for the financing of the operating cycle) and 'passive cash' (or short dull of cash resources). If real working capital of the company is equal to its average requirements, excesses cash at certain times, interspersed with shortcomings at other times of the year occur. Even where these fluctuations would be provided through a cash budget, it is unlikely that the financing of the operating cycle is optimum. Without perfect knowledge of changes in the needs during the operating cycle, this optimum we repeat, cannot be achieved. Funding cannot be considered, nor be found ignoring the nature and evolution of the particular need to which it relates; the actual cost will not be more in these conditions, appreciated. II - ANALYSIS OF THE LIQUIDITY OF THE FIRM BY THE METHOD OF RATIOS. The ratios method provides a second category of instruments for measuring the financial balance. The cash of a firm, i.e. its security situation, depends on inputs and outputs of funds from the transformation of the elements of assets and liabilities. The confrontation of the liquidity of jobs and the chargeability of the resources is a series of indices for assessing the financial balance. However, the ratios method has a number of limitations that hold both its fundamental principles, and how to use it. A - RATIOS OF FINANCIAL SECURITY. Traditionally, there are the ratios of long-term financial security, or ratios so-called "solvency" and the ratios of financial security in the short term, or so-called "liquidity" ratios. 1 - THE SO-CALLED RATIOS "SOLVENCY", OR LONG-TERM FINANCIAL SECURITY. Solvency is here understood as the ability of a company to pay its debts in the medium and long term. From this point of view, a company is solvent if its assets are greater than its debt; in other words, if it’s net position is positive. Although very general and does not allow to give a measure of immediate capacity of regulation, this definition is useful for identifying the degree of third parties including Bankers Trust, to the firm. In this regard, it uses three types of ratios: working capital ratios, ratios of financial autonomy and the General solvency ratio. 1.1 - WORKING CAPITAL RATIOS. They are numerous and complement each other. Ratio: CURRENT ASSETS / SHORT TERM DEBTS Page 32 of 124
It indicates to what extent the realizable assets within one year cover debt maturing in one year at the most. Greater than 1, it reveals the existence of net working capital. It is therefore an indicator of safety. It is often supplemented by the following ratio: Ratio: NET WORKING CAPITAL - CURRENT ASSETS Which shows the share of common needs financed from the resources of a certain nature of stability. Its complement to 1 evaluates the external resources (suppliers, State, bankers, etc.). The company will in principle solvent until losses, or sustainable asset, risks to which working capital assets do not reach the value of the ratio. These two ratios are interpreted in the same way as the Working Capital Fund. A low value can mean the approach to serious cash-flow problems, unless the company benefits as is the case of trading Affairs, lengthy delays on the part of suppliers compared to inventories and receivables with rapid rotation. Conversely, a too high ratio when the operating cycle does not, perhaps index too large or poorly employed stable resource base which weigh on the profitability of the business. A third ratio with a meaning close to the above must be cited. He compares the net funds to stocks: FUND NET WORKING CAPITAL / STOCKS Depending on whether the net funds more or less covers stocks, the enterprise funds more or less feasible and available values using its short-term debts. Some bankers use the following rating: 100% fine 66 50% pretty much mediocre 33% dangerous 0% situation of liquidity. In this regard, it uses three types of ratios: working capital ratios, ratios of financial autonomy and the General solvency ratio. 1.2 - WORKING CAPITAL RATIOS. They are numerous and complement each other. Ratio: CURRENT ASSETS / SHORT TERM DEBTS It indicates to what extent the realizable assets within one year cover debt maturing in one year at the most. Greater than 1, it reveals the existence of net working capital. It is therefore an indicator of safety. It is often supplemented by the ratio: NET WORKING CAPITAL / ASSETS CIRCULATING Which shows the share of common needs financed from the resources of a certain nature of stability. Its complement to 1 evaluates the external resources (suppliers, State, bankers, etc.). The company will in principle solvent until losses, or sustainable asset, risks to which working capital assets do not reach the value of the ratio. These two ratios are interpreted in the same way as the Working Capital Fund. A low value can mean the approach to serious cash-flow problems, unless the company benefits as is the case of trading Affairs, lengthy delays on the part of providers compared to inventories and receivables with rapid rotation. Conversely, a too high ratio when the operating cycle does not, perhaps index too large or poorly employed stable resource base which weigh on the profitability of the business. A third ratio with a meaning close to the one above must be cited. It compares the net funds to stocks: Page 33 of 124
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Page 3 and 4: The Optimization of the Cash-Treasu
Page 5 and 6: FOREWORD Nor obtaining the diploma
Page 9 and 10: This project research is dedicated
Page 11 and 12: LIST OF ACRONYMS AND ABBREVIATION
Page 13 and 14: Figure n°1: Determination of the o
Page 15 and 16: TABLE OF CONTENTS Foreword ........
Page 17 and 18: SECOND PART: THE PRACTICE OF THE CA
Page 19 and 20: ABSTRACT Inside a world full of ban
Page 21 and 22: In addition, the monetary risk is a
Page 23 and 24: A good financial situation is chara
Page 25 and 26: Experience and observation prove th
Page 27 and 28: Whereas part of stocks was practica
Page 29 and 30: C = ax² + bx + c When the demand a
Page 31: The “Stocks” flow time: Average
Page 35 and 36: RESULTS + FINANCIAL INTERESTS / FIN
Page 37 and 38: ANNUAL SALES H.T / NET FIXED ASSETS
Page 39 and 40: 4 - LIMITS THE PREDICTIVE VALUE OF
Page 41 and 42: This opposition led to the establis
Page 43 and 44: It will similarly be to calculate t
Page 45 and 46: However, this document synthesizes
Page 47 and 48: The cash has then for each day (or
Page 49 and 50: (b) SHORT-TERM DATA: Beyond the ver
Page 51 and 52: These three presentations are well
Page 53 and 54: Manage cash consists, in the tradit
Page 55 and 56: Anyway many authors have developed
Page 57 and 58: Either they consist on interest or
Page 59 and 60: (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-
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
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implementing rules are poorly known
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Regardless of the method chosen, it
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date, but whose amount is known (e.
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30% of the Turnover in the fifth pe
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OVERDRAFT’S COSTS = [33.000.000 D
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3 ° - The Customer-Loan Control Co
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Profitability is the guarantee of t
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(b) The Positive Effect. Swelling o
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2.2 - The influence of investment o
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There are thus two sets of 12 month
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S = The starting stock (possibly) +
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This chart is reserved to make clea
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operation wasn’t beneficial enoug
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50% is paid to the supplier 14 days
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Figure n°18: Daly Balance of IWACO
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Regarding the previous chapters, an
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THE CONCLUSION Page 119 of 124
Page 121 and 122:
Investment and its financing, Trai
Page 123 and 124:
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