公司理财(双语)working capital

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1、Chapter20PrinciplesofCorporateFinanceNinthEditionWorkingCapitalManagementTopicsCoveredInventoriesCreditManagementCashWorkingCapitalCurrentassetsandliabilitiesforU.S.manufacturingfirms(2ndqtr.2006)…$billionsBalanceSheetModeloftheFirmHowmuchshort-termcashflowdoesacompanyneedtopayitsbills?NetWorking

2、CapitalCurrentAssetsFixedAssets1.Tangible2.IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtNetWorkingCapital-Currentassetsminuscurrentliabilities.Oftencalledworkingcapital.CashCycle-Periodbetweenfirm’spaymentformaterialsandcollectiononitssales.NetWorkingCapital=CashOtherCurrentAssetsC

3、urrentLiabilities–+TheOperatingCycleandtheCashCycleTimeAccountspayableperiodCashcycleOperatingcycleCashreceivedAccountsreceivableperiodInventoryperiodFinishedgoodssoldFirmreceivesinvoiceCashpaidformaterialsOrderPlacedStockArrivesRawmaterialpurchasedCashCashdoesnotpayinterestMovemoneyfromcashaccou

4、ntsintoshorttermsecuritiesLiquidity!20-8ReasonsforHoldingCashSpeculativemotive–holdcashtotakeadvantageofunexpectedopportunitiesPrecautionarymotive–holdcashincaseofemergenciesTransactionmotive–holdcashtopaytheday-to-daybillsCompensationmotive-keepcashtocompensatebankserviceTargetCashBalancesTarget

5、cashbalance–desiredcashleveldeterminedbytrade-offbetweencarryingcostsandshortagecosts20A-10Figure20A-11BATModelAssumptionsCashisspentatthesamerateeverydayCashexpendituresareknownwithcertaintyOptimalcashbalanceiswhereopportunitycostofholdingcash=tradingcostOpportunitycost=(C/2)*RTradingcost=(T/C)*

6、FTotalcost=(C/2)*R+(T/C)*FInventoriesTheoptimalamountofshorttermsecuritiessoldtoraisecashwillbehigherwhenannualcashoutflowsarehigherandwhenthecostpersaleofsecuritiesishigher.20A-13Example:BATModelYourfirmwillhave$5millionincashexpendituresoverthenextyear.Theinterestrateis4%andthefixedtradingcosti

7、s$25pertransaction.Whatistheoptimalcashbalance?Whatistheaveragecashbalance?Whatistheopportunitycost?Whatistheshortagecost?Whatisthetotalcost?Optimalcashbalance=sqrt(2*25*5,000,000/.04)=79,057Averagecashbalance=79,057/2