公司理财教学资料 chap018-020

Chapter18-20 Workingcapitalmanagement2026/5/15MaintopicsSomeAspectsofShort-TermFinancialPolicyCashBudgetandliquiditymanagementCreditpolicyandaccountsreceivablemanagementInventorymanagementShort-TermBorrowing18-22026/5/15Short-TermFinancialPolicySizeofinvestmentsincurrentassetsFlexible(conservative)policy–maintainahighratioofcurrentassetstosalesRestrictive(aggressive)policy–maintainalowratioofcurrentassetstosalesCompromisepolicy-maintainatradeoffratioofcurrentassetstosales18-32026/5/15Carryingvs.ShortageCostsManagingshort-termassetsinvolvesatrade-offbetweencarryingcostsandshortagecostsCarryingcosts–increasewithincreasedlevelsofcurrentassets,thecoststostoreandfinancetheassetsShortagecosts–decreasewithincreasedlevelsofcurrentassetsTradingorordercostsCostsrelatedtosafetyreserves,i.e.,lostsalesandcustomers,andproductionstoppages18-42026/5/15Temporaryvs.PermanentAssetsTemporarycurrentassetsSalesorrequiredinventorybuild-upmaybeseasonalAdditionalcurrentassetsareneededduringthe“peak”timeThelevelofcurrentassetswilldecreaseassalesoccurPermanentcurrentassetsFirmsgenerallyneedtocarryaminimumlevelofcurrentassetsatalltimesTheseassetsareconsidered“permanent”becausethelevelisconstant,notbecausetheassetsaren’tsold18-52026/5/15Figure18.418-62026/5/15FinancingofcurrentassetsFlexible(conservative)policy–lessshort-termdebtandmorelong-termdebtRestrictive(aggressive)policy–moreshort-termdebtandlesslong-termdebtCompromisepolicy-long-termdebtforpermanentcurrentassetsandshort-term-debtfortemporarycurrentassets2026/5/15Figure18.618-82026/5/15ChoosingtheBestPolicyCashreservesHighcashreservesmeanthatfirmswillbelesslikelytoexperiencefinancialdistressandarebetterabletohandleemergenciesortakeadvantageofunexpectedopportunitiesCashandmarketablesecuritiesearnalowerreturnandarezeroNPVinvestmentsMaturityhedgingTrytomatchfinancingmaturitieswithassetmaturitiesFinancetemporarycurrentassetswithshort-termdebtFinancepermanentcurrentassetsandfixedassetswithlong-termdebtandequityInterestRatesShort-termratesarenormallylowerthanlong-termrates,soitmaybecheapertofinancewithshort-termdebtFirmscangetintotroubleifratesincreasequicklyorifitbeginstohavedifficultymakingpayments–maynotbeabletorefinancetheshort-termloansHavetoconsiderallthesefactorsanddetermineacompromisepolicythatfitstheneedsofthefirm18-92026/5/15CashmanagementWhyshouldfirmholdcash?Howmuchcashshouldafirmhold?Howtoforecastandmanagementcash?2026/5/15ReasonsforHoldingCashSpeculativemotive–holdcashtotakeadvantageofunexpectedopportunitiesPrecautionarymotive–holdcashincaseofemergenciesTransactionmotive–holdcashtopaytheday-to-daybillsTrade-offbetweenopportunitycostofholdingcashrelativetothetransactioncostofconvertingmarketablesecuritiestocashfortransactions19-112026/5/15CostsofHoldingCashOpportunityCostsTradingcostsTotalcostofholdingcashC*CostsindollarsofholdingcashSizeofcashbalanceTheinvestmentincomeforegonewhenholdingcash.Tradingcostsincreasewhenthefirmmustsellsecuritiestomeetcashneeds.19A-12TheBATModelF=ThefixedcostofsellingsecuritiestoraisecashT=ThetotalamountofnewcashneededR=Theopportunitycostofholdingcash,i.e.,theinterestrateTimeC123C2–Ifwestartwith$C,spendataconstantrateeachperiodandreplaceourcashwith$Cwhenwerunoutofcash,ouraveragecashbalancewillbeC2–Theopportunitycostofholding isC2–C2–×R19A-13TheBATModelTimeCAswetransfer$CeachperiodweincuratradingcostofF.123C2–Thetradingcostis ×F

–TC–TCIfweneed$Tintotalovertheplanningperiodwewillpay$F times.19A-14TheBATModelC*SizeofcashbalanceOpportunityCostsTradingcosts19A-15TheBATModelOpportunityCosts=TradingCostsTheoptimalcashbalanceisfoundwheretheopportunitycostsequalsthetradingcosts.MultiplybothsidesbyC19A-16TheMiller-OrrModelThefirmallowsitscashbalancetowanderrandomlybetweenupperandlowercontrollimits.$TimeUCLWhenthecashbalancereachestheuppercontrollimitU,cashisinvestedelsewheretogetustothetargetcashbalanceC.Whenthecashbalancereachesthelowercontrollimit,L,investmentsaresoldtoraisecashtogetusuptothetargetcashbalance.19A-17TheMiller-OrrModelMathGivenL,whichissetbythefirm,theMiller-OrrmodelsolvesforC*andUwheres2isthevarianceofnetdailycashflows.TheaveragecashbalanceintheMiller-Orrmodelis:19A-18ImplicationsoftheMiller-OrrModelTousetheMiller-Orrmodel,themanagermustdofourthings:Setthelowercontrollimitforthecashbalance.Estimatethestandarddeviationofdailycashflows.Determinetheinterestrate.Estimatethetradingcostsofbuyingandsellingsecurities.19A-19ImplicationsoftheMiller-OrrModelThemodelclarifiestheissuesofcashmanagement:Theoptimalcashposition,C*,ispositivelyrelatedtotradingcosts,F,andnegativelyrelatedtotheinterestrateR.C*andtheaveragecashbalancearepositivelyrelatedtothevariabilityofcashflows.19A-20OperatingCycleandCashCyclemethodOperatingcycle–timebetweenpurchasingtheinventoryandcollectingthecashfromsaleoftheinventoryInventoryperiod–timerequiredtopurchaseandselltheinventoryAccountsreceivableperiod–timerequiredtocollectoncreditsalesOperatingcycle=inventoryperiod+accountsreceivableperiod18-212026/5/15CashCycleCashcycleAmountoftimewefinanceourinventoryDifferencebetweenwhenwereceivecashfromthesaleandwhenwehavetopayfortheinventoryAccountspayableperiod–timebetweenpurchaseofinventoryandpaymentfortheinventoryCashcycle=Operatingcycle–accountspayableperiod18-222026/5/15Figure18.118-232026/5/15OtherFactorsInfluencingtheTargetCashBalanceBorrowingBorrowingislikelytobemoreexpensivethansellingmarketablesecurities.Theneedtoborrowwilldependonmanagement’sdesiretoholdlowcashbalances.19A-24CashBudgetForecastofcashinflowsandoutflowsoverthenextshort-termplanningperiodPrimarytoolinshort-termfinancialplanningHelpsdeterminewhenthefirmshouldexperiencecashsurplusesandwhenitwillneedtoborrowtocoverworking-capitalrequirementsAllowsacompanytoplanaheadandbeginthesearchforfinancingbeforethemoneyisactuallyneeded18-252026/5/15Example:CashBudgetInformationPetTreats,Inc.specializesingourmetpettreatsandreceivesallincomefromsalesSalesestimates(inmillions)Q1=500;Q2=600;Q3=650;Q4=800;Q1nextyear=550AccountsreceivableBeginningreceivables=$250Averagecollectionperiod=30daysAccountspayablePurchases=50%ofnextquarter’ssalesBeginningpayables=125Accountspayableperiodis45daysOtherexpensesWages,taxes,andotherexpenseare30%ofsalesInterestanddividendpaymentsare$50Amajorcapitalexpenditureof$200isexpectedinthesecondquarterTheinitialcashbalanceis$80,andthecompanymaintainsaminimumbalanceof$5018-262026/5/15Example:CashBudget–CashCollectionsACP=30days;thisimpliesthat2/3ofsalesarecollectedinthequartermadeandtheremaining1/3arecollectedthefollowingquarterBeginningreceivablesof$250willbecollectedinthefirstquarterQ1Q2Q3Q4BeginningReceivables250167200217Sales500600650800CashCollections583567633750EndingReceivables16720021726718-272026/5/15Example:CashBudget–

CashDisbursementsPayablesperiodis45days,sohalfofthepurchaseswillbepaidforeachquarterandtheremainingwillbepaidthefollowingquarterBeginningpayables=$125Q1Q2Q3Q4Paymentofaccounts275313362338Wages,taxesandotherexpenses150180195240Capitalexpenditures200Interestanddividendpayments50505050Totalcashdisbursements47574360762818-282026/5/15Example:CashBudget–NetCashFlowandCashBalanceQ1Q2Q3Q4Totalcashcollections583567633750Totalcashdisbursements475743607628Netcashinflow108-17626122BeginningCashBalance801881238Netcashinflow108-17626122Endingcashbalance1881238160Minimumcashbalance-50-50-50-50Cumulativesurplus(deficit)138-38-1211018-292026/5/15Short-TermFinancialPlanQ1Q2Q3Q4Beginningcashbalance801885050Netcashinflow108(176)26122Newshort-termborrowing38Interestonshort-terminvestment(loan)1(1)Short-termborrowingrepaid2513Endingcashbalance1885050159Minimumcashbalance(50)(50)(50)(50)Cumulativesurplus(deficit)13800109Beginningshort-termdebt003813Changeinshort-termdebt038(25)(13)Endingshort-termdebt03813018-302026/5/15CreditandReceivablesGrantingcreditincreasessalesCostsofgrantingcreditChancethatcustomerswon’tpayFinancingreceivablesCreditmanagementexaminesthetrade-offbetweenincreasedsalesandthecostsofgrantingcredit2026/5/1520-31ComponentsofCreditPolicyTermsofsaleCreditperiodCashdiscountanddiscountperiodTypeofcreditinstrumentCreditanalysis–distinguishingbetween“good”customersthatwillpayand“bad”customersthatwilldefaultCollectionpolicy–effortexpendedoncollectingonreceivables2026/5/1520-32TheCashFlowsfromGrantingCreditCreditSaleChequeMailedChequeDepositedCashAvailableCashcollectionAccountsReceivable2026/5/1520-33TermsofSaleBasicForm:2/10net452%discountifpaidin10daysTotalamountduein45daysifdiscountnottakenBuy$500worthofmerchandisewiththecredittermsgivenabovePay$500(1-.02)=$490ifyoupayin10daysPay$500ifyoupayafter10days,mustbepaidby45days2026/5/1520-34Example:CashDiscountsFindingtheimpliedinterestratewhencustomersdonottakethediscountCredittermsof2/10net45and$500loan$10interest(.02*500)Periodrate=10/490=2.0408%Period=(45–10)=35days365/35=10.4286periodsperyearEAR=(1.020408)10.4286–1=23.45%Thecompanybenefitswhencustomerschoosetoforegodiscounts2026/5/1520-35LengthofCreditPeriodInfluencedbythefollowingfactors:PerishabilityandcollateralvalueConsumerdemandCost,profitability,andstandardizationCreditriskSizeoftheaccountCompetitionCustomertype2026/5/1520-36AnalyzingCreditPolicyRevenueEffectsDelayinreceivingcashfromsaleMaybeabletoincreasepriceMayincreasetotalsalesCostEffects–costofsaleisstillincurredeventhoughthecashfromthesalehasnotbeenreceivedCostofdebt–mustfinancereceivablesProbabilityofnonpayment–somepercentagecustomerswillnotpayforproductspurchasedCashdiscount–somecustomerswillpayearlyandpaylessthanthefullsalesprice2026/5/1520-37Example:EvaluatingaProposedPolicy–PartIYourcompanyisevaluatingaswitchfromacashonlypolicytoanet30policy.Thepriceperunitis$100andthevariablecostperunitis$40.Thecompanycurrentlysells1,000unitspermonth.Undertheproposedpolicythecompanywillsell1,050unitspermonth.Therequiredmonthlyreturnis1.5%.WhatistheNPVoftheswitch?Shouldthecompanyoffercredittermsofnet30?2026/5/1520-38Example:EvaluatingaProposedPolicy–PartIIIncrementalcashinflow(100–40)(1,050–1,000)=3,000Presentvalueofincrementalcashinflow3000/.015=200,000Costofswitching100(1,000)+40(1,050–1,000)=102,000NPVofswitching200,000–102,000=98,000Yes,thecompanyshouldswitch2026/5/1520-39OptimalCreditPolicyCarryingcostsRequiredreturnonreceivablesLossesfrombaddebtsCostsofmanagingcreditandcollectionsShortagecostsLostsalesduetoarestrictivecreditpolicyTotalcostcurveSumofcarryingcostsandshortagecostsOptimalcreditpolicyiswherethetotalcostcurveisminimized2026/5/1520-40Figure20.1TheCostsofGrantingCredit2026/5/1520-41CreditAnalysisProcessofdecidingwhichcustomersreceivecreditGatheringinformationFinancialstatementsCreditreportsBanksPaymenthistorywiththefirmDeterminingCreditworthiness5CsofCreditCreditScoring2026/5/1520-42FiveCsofCreditCharacter–willingnesstomeetfinancialobligationsCapacity–abilitytomeetfinancialobligationsoutofoperatingcashflowsCapital–financialreservesCollateral–assetspledgedassecurityConditions–generaleconomicconditionsrelatedtocustomer’sbusiness2026/5/1520-43CreditInformationFinancialstatementsCreditreportswithcustomer’spaymenthistorytootherfirmsBanksPaymenthistorywiththecompany2026/5/1520-44CollectionPolicyMonitoringreceivablesKeepaneyeonaveragecollectionperiodrelativetoyourcredittermsUseanagingscheduletodeterminepercentageofpaymentsthatarebeingmadelateCollectionpolicyDelinquencyletterTelephonecallCollectionagencyLegalaction2026/5/1520-45InventoryManagementInventorycanbealargepercentageofafirm’sassetsCostsassociatedwithcarryingtoomuchinventoryCostsassociatedwithnotcarryingenoughinventoryInventorymanagementtriestofindtheoptimaltrade-offbetweencarryingtoomuchinventoryversusnotenough2026/5/1520-46TypesofInventoryManufacturingfirmRawmaterial–startingpointinproductionprocessWork-in-progressFinishedgoods–productsreadytoshiporsellRememberthatonefirm’s“rawmaterial”maybeanothercompany’s“finishedgood”Differenttypesofinventorycanvarydramaticallyintermsofliquidity2026/5/1520-47InventoryCostsCarryingcosts–rangefrom20–40%ofinventoryvalueperyearStorageandtrackingInsuranceandtaxesLossesduetoobsolescence,deteriorationortheftOpportunitycostofcapitalShortagecostsRestockingcostsLostsalesorlostcustomersConsiderbothtypesofcostsandminimizethetotalcost2026/5/1520-48EconomicOrderQuantity(EOQ)ModelTheEOQmodelminimizesthetotalinventorycostTotalcarryingcost=(averageinventory)x(carryingcostperunit)=(Q/2)(CC)Totalrestockingcost=(fixedcostperorder)x(numberoforders)=F(T/Q)TotalCost=Totalcarryingcost+totalrestockingcost=(Q/2)(CC)+F(T/Q)2026/5/1520-49Example:EOQConsideraninventoryitemthathascarryingcost=$1.50perunit.Thefixedordercostis$50perorderandthefirmsells100,000unitsperyear.Whatistheeconomicorderquantity?2026/5/1520-50ExtensionsSafetystocksMinimu