Essentials of Working Capital Management E-Book

James S. Sagner

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Essentials Series
• Sprache: Englisch

Seitenzahl: 322

Veröffentlichungsjahr: 2010

Beschreibung

A comprehensive primer for executives and managers on working capital management

With limited access to credit and short term funding, it is increasingly important that companies focus on working capital management to free up funds and optimize liqidity. Written in the easy-to-follow Essentials Series style, Essentials of Working Capital Management covers the main components of working capital.

• Covers the latest trends around working capital
• Discusses a range of working capital topics, including cash management, banking relations, accounts receivable, inventory, accounts payable, and foreign exchange
• Analyzes the efficient utilization of current assets and liabilities of a business through each phase of the operating cycle
• Examines the planning, monitoring, and management of the company's collections, disbursements and concentration banking
• Explores the gathering and management of information and forecast data to effectively use funds and identify risk

Focused on how businesses can continue to be successful in these difficult times, specifically in relation to the limited credit available to businesses, this book puts practical guidance at your fingertips so you can put them to work right away. A comprehensive case introduces each major section of the book, and suggested solutions are included in a book appendix.

Leseprobe

CONTENTS

Cover

Contents

Series Page

Title Page

Copyright Page

Preface

Acknowledgments

CHAPTER 1: Concepts in Working Capital Management

Working Capital Concepts

Ratio Analysis

Working Capital Ratios

Significance of Working Capital

Applying These Ideas to a Real Business

Summary

PART I: CASH—TRANSACTIONS, BANKING AND CREDIT, AND FINANCIAL INSTRUMENTS

Comprehensive Case: Widget Manufacturing Case I

CHAPTER 2: Cash: Management and Fraud Prevention

Forms of Cash

Lockboxing

Controlled Disbursement

Bank Products Used for Electronic Transactions

Summary

CHAPTER 3: Cash, Credit, and Short-Term Financial Instruments

Developing a Short-Term Forecast

Preparing a Cash Budget

Credit Financing

Short-Term Investments

Summary

CHAPTER 4: Concentration Banking and Financial Institution Relationships

Changing Financial Landscape

Bank Relationship Management

Concentration Banking

Request-for-Proposals

RFP Evaluation

Bank Relationship Reviews

Summary

PART II: OTHER WORKING CAPITAL ACCOUNTS— RECEIVABLES, INVENTORY, AND PAYABLES

Comprehensive Case: Widget Manufacturing Case II

CHAPTER 5: Accounts Receivable and Working Capital Issues

Elements of Receivables Management

Receivables Cycle Monitoring: Ratios

Receivables Cycle Monitoring: The Aging Schedule

Sales Financing

Credit Reporting

Terms of Sale

Invoice Generation

Asset-Based Financing: Receivables Debt Collection Agencies Summary

CHAPTER 6: Inventory and Working Capital Issues

Elements of Inventory Management

Inventory Cycle Monitoring: Ratios

Inventory Cycle Monitoring: Metrics

Purchasing

EOQ and JIT

Work-in-Process

Asset-Based Financing: Inventory

Summary

CHAPTER 7: Payables and Working Capital Issues

Elements of Payables Management

Payables Cycle Monitoring: Ratios

Accounts Payable Function

Payables Using Internal Processes

Payables Outsourcing

Payroll Alternatives

Summary

PART III: ISSUES IN WORKING CAPITAL MANAGEMENT

Comprehensive Case: Widget Manufacturing Case III

CHAPTER 8: International Working Capital

Capitalism Goes Global

Elements of International Working Capital

Financing of International Transactions

Foreign Exchange Markets

Analysis of Country Risk

Other Significant Issues in International Working Capital

Cultural and Corporate Practices Affecting Working Capital

Summary

CHAPTER 9: Information and Working Capital

Information Technology

Bank Information Technology

Internet Bank Technology

Enterprise Resource Planning: An Alternative Approach

Choosing Working Capital Information Systems

Summary

CHAPTER 10: Managing the Working Capital Cycle

Risk and Working Capital

Enterprise Risk Management

Efficiency and Working Capital

Liquidity and Working Capital

Suggested Actions

Developments in Working Capital Management

The Cost of a Transaction

Summary

APPENDIX A: Suggested Solutions to Widget Manufacturing Company Case—Parts I, II, and III

APPENDIX B: Basic Financial Concepts

APPENDIX C: Web Sites of Working Capital Market Participants

APPENDIX D: Glossary

About the Author

Index

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List of Illustrations

CHAPTER 1: Concepts in Working Capital Management

EXHIBIT 1. 1

EXHIBIT 1. 2

EXHIBIT 1.3

CHAPTER 3: Cash, Credit, and Short-Term Financial Instruments

EXHIBIT 3.1

EXHIBIT 3.2

EXHIBIT 3.3

EXHIBIT 3.4

EXHIBIT 3.5

EXHIBIT 3.6

CHAPTER 4: Concentration Banking and Financial Institution Relationships

EXHIBIT 4.1

EXHIBIT 4.2

EXHIBIT 4.3

EXHIBIT 4.4

CHAPTER 5: Accounts Receivable and Working Capital Issues

EXHIBIT 5.1

EXHIBIT 5.2

EXHIBIT 5.3

EXHIBIT 5.4

EXHIBIT 5.5

EXHIBIT 5.6

CHAPTER 6: Inventory and Working Capital Issues

EXHIBIT 6.1

EXHIBIT 6.2

EXHIBIT 6.3

EXHIBIT 6.4

CHAPTER 8: International Working Capital

EXHIBIT 8.1

EXHIBIT 8. 2

CHAPTER 9: Information and Working Capital

EXHIBIT 9.1

EXHIBIT 9.2

CHAPTER 10: Managing the Working Capital Cycle

EXHIBIT 10.1

EXHIBIT 10.2

EXHIBIT 10.3

EXHIBIT 10.4

PART I: CASH—TRANSACTIONS, BANKING AND CREDIT, AND FINANCIAL INSTRUMENTS

EXHIBIT I. 1

EXHIBIT I.2

EXHIBIT I. 3

PART II: OTHER WORKING CAPITAL ACCOUNTS—RECEIVABLES, INVENTORY, AND PAYABLES

EXHIBIT II. 1

EXHIBIT II. 2

EXHIBIT II. 3

EXHIBIT II. 4

ESSENTIALS SERIES

The Essentials Series was created for busy business advisory and corporate professionals. The books in this series were designed so that these busy professionals can quickly acquire knowledge and skills in core business areas.

Each book provides need-to-have fundamentals for professionals who must:

Get up to speed quickly because they have been promoted to a new position or have broadened their responsibility scope.

Manage a new functional area.

Brush up on new developments in their area of responsibility.

Add more value to their company or clients.

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Essentials of Cash Flow, H. A. Schaeffer, Jr.

Essentials of Corporate and Capital Formation, David H. Fater

Essentials of Corporate Fraud, Tracy L. Coenen

Essentials of Corporate Governance, Sanjay Anand

Essentials of Corporate Peformance Measurement, George T Friedlob, Lydia L. F. Schleifer, and Franklin J. Plewa, Jr.

Essentials of Cost Management, Joe and Catherine Stenzel

Essentials of Credit, Collections, and Accounts Receivable, Mary S. Schaeffer

Essentials ofCRM: A Guide to Customer Relationship Management, Bryan Bergeron

Essentials of Enterprise Compliance, Susan D Conway and Mara E. Conway

Essentials of Financial Analysis, George T Friedlob and Lydia L. F. Schleifer

Essentials of Financial Risk Management, Karen A. Horcher

Essentials of Foreign Exchange Trading, James Chen

Essentials of Knowledge Management, Bryan Bergeron

Essentials of Licensing Intellectual Property, Paul J. Lerner and Alexander I. Poltorak

Essentials of Managing Corporate Cash, Michele Allman-Ward and James Sagner

Essentials of Managing Treasury, Karen A. Horcher

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Essentials of Payroll Management and Accounting, Steven M. Bragg

Essentials of Sarbanes-Oxley, Sanjay Anand

Essentials of Shared Services, Bryan Bergeron

Essentials of Supply Chain Management, Michael Hugos

Essentials of Technical Analysis for Financial Markets, James Chen

Essentials of Trademarks and Unfair Competition, Dana Shilling

Essentials of Venture Capital, Alexander Haislip

Essentials ofXBRL, Bryan Bergeron

For more information on any of the above titles, please visit www.wiley.comg.

ESSENTIALS of Working Capital Management

James S. Sagner, PhD

Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Sagner, James S.

Essentials of working capital management/James S. Sagner.

p. cm. — (Essentials series; 55)

Includes index.

ISBN 978-0-470-87998-6 (pbk.); ISBN 978-0-470-91690-2 (ebk);

ISBN 978-0-470-91691-9 (ebk); ISBN 978-0-470-91692-6 (ebk)

1. Working capital. 2. Corporations—Finance. I. Title.

HG4028.W65S24 2010

658.15′244—dc22

2010021353

Preface

This book is one of a series on essentials of finance. As the publisher observed the near chaotic conditions in the credit markets that began in 2008, it became apparent that there was a need for an explanation of business processes and specific ideas on changes to company structures and procedures.