财务管理基础工业出版社版ChapPPT课件

WorkingCapitalandtheFinancingDecision,6,1-2,ChapterOutline,WorkingcapitalmanagementCurrentassetmanagementAssetfinancingLong-termversusshort-termfinancingRiskandprofitabilityvis-visassetfinancingExpectedvalueanalysismaysometimesbeemployed,1-3,WorkingCapitalManagement,ThefinancingandmanagementofthecurrentassetsofafirmCrucialtoachievinglong-termobjectivesofthefirmoritsfailureRequiresimmediateaction,1-4,TheNatureofAssetGrowth,EffectivecurrentassetsmanagementrequiresmatchingoftheforecastedsalesandproductionschedulesDifferencesinactualsalesandforecastedsalescanresultin:Unexpectedbuildup.Reductionininventory,affectingreceivablesandcashflowFirmscurrentassetscouldbe:Self-liquidatingPermanentcurrentassets.,1-5,TheNatureofAssetGrowth(contd),1-6,ControllingAssetsMatchingSalesandProduction,Fixedassetsgrowslowlywith:IncreaseinproductivecapacityReplacementofoldequipmentCurrentassetsfluctuateintheshortrun,dependingon:LevelofproductionversusthelevelofsalesWhenproductionishigherthansalestheinventoryrisesWhensalesarehigherthanproduction,inventorydeclinesandreceivablesincrease,1-7,ControllingAssetsMatchingSalesandProduction(contd),CashbudgetingprocessLevelproductionmethodSmoothproductionschedulesUseofmanpowerandequipmentefficientlytolowercostMatchsalesandproductionascloselyaspossibleintheshortrunAllowscurrentassetstoincreaseordecreasewiththelevelofsalesEliminatesthelargeseasonalbulgesorsharpreductionsincurrentassets,1-8,MatchingSalesandProduction-McGraw-HillCompanies,Inc.,AgoodexampleofseasonalsaleHassignificantshareofsalesandearningsinthethirdandfourthquartersDuetoseasonalnatureoftextbookpublishingLendersandfinancialmanagersneedtoplaninventoryLackofcorrectinventoryplanningcanleadtolostsales,1-9,QuarterlySalesandEarningsPerShareforMcGrawHill,1-10,SeasonalSalesPatterninTargetandLimitedBrands,Likepublishers,retailcompaniesdonotstockinventoryformorethenayearFourthquarteristhebiggestquarterforretailersAsperthefigure,theTargetisgrowingmuchfasterthantheLimitedBrandsEventhen,inthefourthquarter,peakearningsarealmostequalforboththecompanies,1-11,QuarterlySalesandEarningsPerShare,TargetandLimitedBrands,1-12,Point-of-SalesTerminals,Retail-orientedfirmsusenew,computerizedinventorycontrolsystemslinkedonlineDigitalinputsoropticalscannersHelpsadjustordersorproductionschedulesRadioFrequencyIdentification(RFID),1-13,TemporaryAssetsunderLevelProductionAnExample,YawakuziMotorcycleCompanySalesfluctuations:Highsalesdemandduringearlyspringandsummer;salesdropduringOctoberthroughMarchDecision:Applylevelproductionmethod-12-monthsalesforecastisissuedResult:Levelproductionandseasonalsalescombinetoproducefluctuatinginventory,1-14,YawakuziSalesForecast(inunits),1-15,YawakuzisProductionScheduleandInventory,1-16,SalesForecasts,CashReceipts,andPayments,andCashBudget,1-17,SalesForecasts,CashReceipts,andPayments,andCashBudget(contd),Table6-3iscreatedtoexaminethebuildupinaccountsreceivableandcashSalesforecast:Basedonassumptionstakenearlier(table6-1)Cashreceipts:50%cashcollectedduringthemonthofsaleand50%pertainstothepriormonthCashbudget:acomparisonofcashreceiptandpaymentschedulestodeterminecashflow,1-18,TotalCurrentAssets,FirstYear($millions),1-19,YawakuzisNatureofAssetGrowth,1-20,CashBudgetandAssetsforIIYearWithNoGrowthinSales($millions),Graphicpresentationofthecurrentassetcycle.,1-21,PatternsofFinancing,SelectionofexternalsourcestofundfinancialassetsisanimportantdecisionTheappropriatefinancingpattern:Matchingofassetbuildupandlengthoffinancingpattern,1-22,MatchingLong-TermandShort-TermNeeds,1-23,AlternativePlans,ItisimportanttoconsiderotheralternativesThechallengeofconstructingafinancialplanistoprioritizethecurrentassetsintotemporaryandpermanentTheexacttimingofassetliquidation,eveninthelightofascertainingdollaramountsisonerousItisalsodifficulttojudgetheamountofshort-termandlong-termfinancingavailable,1-24,Long-TermFinancing,Firmscanbeassuredofhavingadequatecapitalatalltimes:Uselong-termcapitaltocoverpartoftheshort-termneedsLong-termcapitalcanbeusedtofinance:FixedassetsPermanentcurrentassetsPartofthetemporarycurrentassets,1-25,UsingLong-TermFinancingforPartofShort-TermNeeds,1-26,Short-TermFinancing,Smallbusinessesdonothavetotalaccesstolong-termfinancingTheyrelyonshort-termbankandtradecreditAdvantage:interestratesarelowerShort-termfinancesareusedfinance:TemporarycurrentassetsPartofthepermanentworkingcapitalneeds,1-27,UsingShort-TermFinancingforPartofLong-TermNeeds,1-28,TermStructureofInterestRates,Ayieldcurvethatshowstherelativelevelofshort-termandlong-terminterestratesU.S.governmentsecuritiesarepopularastheyarefreeofdefaultrisksCorporatedebtsecuritiesentailahigherinterestrateduetomorefinancialrisksYieldcurvesforbothsecuritieschangedailytoreflect:CurrentcompetitiveconditionsExpectedinflationChangesineconomicconditions,1-29,BasicTheories-YieldCurve,LiquiditypremiumtheoryLong-termratesshouldbehigherthanshort-termratesMarketsegmentationtheoryTreasurysecuritiesaredividedintomarketsegmentsbythevariousfinancialinstitutionsinvestinginthemarketExpectationshypothesisYieldsonlong-termsecuritiesisafunctionofshort-termrates,1-30,Long-andShort-TermAnnualInterestRates,Relativevolatilityandthehistoricallevelofshort-termandlong-termrates,1-31,AlternativeFinancingPlans,ADecisionProcess:Comparingalternativefinancingplansforworkingcapital,1-32,ImpactofFinancingPlansonEarnings,1-33,VaryingConditionanditsImpact,TightmoneyperiodsCapitalisscarcemakingshort-termfinancingdifficulttofindormayensueveryh