Optimization of the company's cash flow

30% of the Turnover in the fifth period.
Using a mass of large enough information collected from the historical events of the firm, it becomes possible:
First, to determine the average percentage of the turnover of a period i, cashed a period j;
Then project this outcome in the future considering that these percentages represent validly probable share
of the turnover of a period coming k that will be earned during each of the periods that follow k.
Thus was able to establish that, on average, receipts consequential to the turnover of a period n are spread as
follows:
And so at this same time, we get to know the average of Turnover that the company achieve each period.
2 - THE STRUCTURE OF THE DISBURSEMENT OF THE IWACO.
Fixed charges generally pose no particular problem of prediction: they are known with certainty. Variable costs, on
the contrary, are difficult to assess. However using the statistical technique of "correlation", a significant
improvement in the prediction of disbursements is possible. By definition the varying loads depend on the level of
activity of the firm. There is thus a connection between variable costs and turnover of the same period than the
correlation allows to quantify. Graphic representation of the phenomenon occurs very classically on a system of
perpendicular axes, relating to any category of expenditure considered, observed monthly, and on the other the
turnover, also monthly, corresponding. If the various points are grouped around a line, called 'straight regression',
there is a correlation between the two variables and this correlation is linear.
The highlight of a close relationship between two variables to express one of these variables depending on the other.
Accordingly, if one knows the evolution of one it can foresee the evolution of the other. Gold turnover level forecasts
prove to be accurate enough in the short term. Thus, it becomes possible to estimate expenditure from the forecast
turnover when a significant relationship could be established.
If this calculation is always possible, some remarks are however required. First such an analysis requires the collection
of important statistical series; that does not generally raise problems. Then, it should be noted that it is essential to
revise periodically used coefficients which lose their meaning over time. Finally, a thorough study of the operating
cycle must assess the temporal shifts, if they exist, between variables, in order to identify the closest possible.
The study of the structure of the inputs and outputs of funds is still insufficient to allow the Treasurer Forecast curve
of cash value date. Both in what concerns income than expenses there are independent uncertainties in the
Organization of the company, its activity and its conditions of Bank. These uncertainties are related to the behavior
of customers, suppliers and in General of third parties. However, using classical statistical methods can significantly
reduce the uncertainties that exist in this area.
C - THE REDUCTION OF UNCERTAINTY IN CERTAIN MOVEMENTS OF FUNDS.
The most often encountered uncertainties concern the date of realization of the movement. Thus there is mainly
following hesitation:
On the side of revenues, the company knows the total amount of invoices giving rise to a cash payment but does not
necessarily know the dates to which customers are actually going to pay. In the same way it ignores always or almost
dates which will return the treaties sent to acceptance or promissory notes issued by clients.
On the side of spending, it's the cashing of the check by creditors which is random. A cheque issued today is hosted
by its beneficiary in x days.
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