Optimization of the company's cash flow
This book is about the company's treasuries and financial management, more specifically; it shows how a company can manage its treasury in an efficient and short way. This book is about the company's treasuries and financial management, more specifically; it shows how a company can manage its treasury in an efficient and short way.
2 ° the second step focuses on the anticipation of the flow of operations for the coming year: Loads, Products, Forecast operating income. These flows are grouped in 'operating budgets. From these data the "provisional result account' is constructed of the reporting period. 3 ° the last stage of the predictive analysis led to the consolidation of forecast cash flow in "Cash Budget". In reality, the adjustment of revenues and expenditures at the lowest cost requires a genuine “estimated cash device”. Movements of funds that affect availability are the result of a company given or received by the company. These commitments are generally classified under two headings: 1. Commitments off-operation: *Firstly, investment, the origin of acquisition expenses, and, *On the other hand, the financial transactions which include essentially financing transactions, repayment of loans and payment of dividends. 2. Commitments of exploitation: from the normal and common activity company, originally of revenue and operating expenses. The cash budget is over a given period, generally the month and year, the anticipation of the movement which may modify the cash position. There are two types of conventional and complementary methods for the preparation of the cash flow forecast: Method “recipes – expenditure”, The method “resources – needs”. 3.1 - THE METHOD “REVENUE – EXPENSES”. Simple in principle, it is more difficult to implement. 3.1.1- THE PRINCIPLE OF THE METHOD. As its name implies, this method consists of a comprehensive census entries and liquidity outflows. Then arise the problem of the census period and forecast technique. 1 - DETERMINATION OF THE HORIZON AND NO CASH FORECASTING. Practitioners call: 'Horizon', the overall period of anticipation, and, «No», the subdivision of the horizon. The cash-flow forecasts generally cover a year, with a not monthly. Sometimes they are on a shorter term. But to ensure the financial balance for the coming months does not offsets that arise inevitably between the inputs and outputs daily Fund. Very short-term forecasts are to coincide payment options and regulations to operate. Page 46 of 124
The cash has then for each day (or week, etc.) and by account, expenditure to be carried out and the recipes to make. Experience shows that very few companies are in as fine forecast entries and cash. Indeed, such rigor and such details in the analysis of revenues and expenditures require an administrative organization of seizure and treatment of unique information relating to the movement of funds, dissociated from the classical book recording. 2 - THE DEVELOPMENT OF THE CASH FLOW FORECAST. An undertaking given or received by the company does result in a cash flow only after a certain period of time. Provide the amount and the date of the movement of cash therefore represents a twofold problem. The establishment of the forecast data is discussed in two complementary ways: Budgetary accounting, and Accrual of liabilities. (a) BUDGETARY ACCOUNTS: The estimates are based on assumptions of activity and therefore present a random character. 1 ° THE FORECAST REVENUE: They are essentially original sales receipt. For retail business that sells cash forecast revenue is equal to that of sales. In the case of businesses that sell on credit, a statistical analysis to determine the spread of cash receipts from sales of the period. With regard to sale on command, usually accompanied by payment by instalment, forecast revenue occurs at two levels. The firm orders, should refer to the manufacturing schedule in order to set the dates of different maturities. Planned orders, to establish a theoretical schedule, with all the inaccuracies that entails. Other receipts have various sources: Accessories operating revenues; Field exploitation operations; Financial transactions. Their spread in time depends on the terms of the contracts, the activity of the company, or its strategy. It supports some approximation due to their relative importance. 2 ° THE FORECAST SPENDING: Prediction of disbursements is more difficult because of the wide variety of loads. The relationship between the commitment of expenditure and the corresponding disbursement varies depending on the nature of the load. In this regard, expenditures are classified into four categories: Spending on purchases of goods, Expenditures on normal operating expenses, Expenditure on financial operations On investments. Prediction of supply-related disbursements can be difficult due to the uncertainty that sometimes prevails on the period of delivery or billing. In this case the problem can be solved if you have a past experience, by an approach similar to that of the forecast revenue. The forecast spending on normal operating expenses is made from their Page 47 of 124
- Page 1 and 2: Page 1 of 124
- Page 3 and 4: The Optimization of the Cash-Treasu
- Page 5 and 6: FOREWORD Nor obtaining the diploma
- Page 7 and 8: Page 7 of 124
- 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 and 32: The “Stocks” flow time: Average
- Page 33 and 34: It indicates to what extent the rea
- 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: However, this document synthesizes
- 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 71 and 72: Page 71 of 124
- 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
2 ° <strong>the</strong> second step focuses on <strong>the</strong> anticipation <strong>of</strong> <strong>the</strong> <strong>flow</strong> <strong>of</strong> operations for <strong>the</strong> coming year:<br />
Loads,<br />
Products,<br />
Forecast operating income.<br />
These <strong>flow</strong>s are grouped in 'operating budgets. From <strong>the</strong>se data <strong>the</strong> "provisional result account' is constructed <strong>of</strong> <strong>the</strong><br />
reporting period.<br />
3 ° <strong>the</strong> last stage <strong>of</strong> <strong>the</strong> predictive analysis led to <strong>the</strong> consolidation <strong>of</strong> forecast <strong>cash</strong> <strong>flow</strong> in "Cash Budget".<br />
In reality, <strong>the</strong> adjustment <strong>of</strong> revenues and expenditures at <strong>the</strong> lowest cost requires a genuine “estimated <strong>cash</strong><br />
device”. Movements <strong>of</strong> funds that affect availability are <strong>the</strong> result <strong>of</strong> a company given or received by <strong>the</strong> company.<br />
These commitments are generally classified under two headings:<br />
1. Commitments <strong>of</strong>f-operation:<br />
*Firstly, investment, <strong>the</strong> origin <strong>of</strong> acquisition expenses, and,<br />
*On <strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong> financial transactions which include essentially financing transactions, repayment<br />
<strong>of</strong> loans and payment <strong>of</strong> dividends.<br />
2. Commitments <strong>of</strong> exploitation: from <strong>the</strong> normal and common activity company, originally <strong>of</strong> revenue and<br />
operating expenses.<br />
The <strong>cash</strong> budget is over a given period, generally <strong>the</strong> month and year, <strong>the</strong> anticipation <strong>of</strong> <strong>the</strong> movement which may<br />
modify <strong>the</strong> <strong>cash</strong> position. There are two types <strong>of</strong> conventional and complementary methods for <strong>the</strong> preparation <strong>of</strong><br />
<strong>the</strong> <strong>cash</strong> <strong>flow</strong> forecast:<br />
Method “recipes – expenditure”,<br />
The method “resources – needs”.<br />
3.1 - THE METHOD “REVENUE – EXPENSES”.<br />
Simple in principle, it is more difficult to implement.<br />
3.1.1- THE PRINCIPLE OF THE METHOD.<br />
As its name implies, this method consists <strong>of</strong> a comprehensive census entries and liquidity out<strong>flow</strong>s. Then arise <strong>the</strong><br />
problem <strong>of</strong> <strong>the</strong> census period and forecast technique.<br />
1 - DETERMINATION OF THE HORIZON AND NO CASH FORECASTING.<br />
Practitioners call:<br />
'Horizon', <strong>the</strong> overall period <strong>of</strong> anticipation, and,<br />
«No», <strong>the</strong> subdivision <strong>of</strong> <strong>the</strong> horizon.<br />
The <strong>cash</strong>-<strong>flow</strong> forecasts generally cover a year, with a not monthly. Sometimes <strong>the</strong>y are on a shorter term. But to<br />
ensure <strong>the</strong> financial balance for <strong>the</strong> coming months does not <strong>of</strong>fsets that arise inevitably between <strong>the</strong> inputs and<br />
outputs daily Fund. Very short-term forecasts are to coincide payment options and regulations to operate.<br />
Page 46 <strong>of</strong> 124